Articles / Case Studies

Another Pass: Property Had a Great Location but the Advance Was too High

We recently declined a loan secured by commercial land in Bluffdale, Utah. This area has experienced tremendous growth over the past decade. As it is near Silicon Slopes, there continues to be great demand in this area. However, the borrower wanted an advance equal to 70% of the land’s value. Despite this property’s growth prospects, … click to read more

Anatomy of an Actium Loan: Moab, Utah Condominium

Providing financing for a multi-family development in Moab, Utah The other loan was secured by a condominium in Moab, Utah. This property lies within one of the last developments built allowing for nightly rentals. When the borrower’s original financing could not be completed before the closing date, we lent 75% of the purchase price. The … click to read more

Anatomy of an Actium Loan: Paying off a Reverse Mortgage in Holladay, Utah

Paying off a reverse mortgage in Holladay, Utah In Holladay, Utah, an exclusive suburb of Salt Lake City, Actium lent on a property just over an acre in size. The estate was subject to a reverse mortgage before the owner died, and the heirs wanted to pay off the reverse mortgage to improve the property … click to read more

Not Enough Skin in the Game: A Loan We Declined

One of the loans we recently denied was for a single-family home that was being purchased as an investment. When we underwrite a loan, we look to see how much “skin in the game” the borrower has, and on this loan we quickly concluded there was not much. The borrower was only putting up 10% … click to read more

Omaha Apartments: Acquisition of a Multi-Family Apartment Building

A real estate investor with Utah ties asked us to finance the acquisition of a multi-family apartment building in Omaha, Nebraska. We reviewed the purchase contract to make sure the buyer had significant “skin in the game” and determined that it was worth performing additional research. We consulted with brokers, not affiliated with the transaction, … click to read more

Walking away from Risk: A Loan We Declined

Not enough skin in the game and red flags from the beginning. A mortgage broker recently asked us to make a loan secured by residential building lots in Salt Lake County, Utah. Along with the request, he submitted some information of what he considered to be comparable lot sales. From our perspective, these were not … click to read more

Financing a Multi-Family Land Acquisition

Providing financing for a multi-family development in Provo, Utah. We recently received a call from a real estate developer who was in the process of assembling land for a multi-family development in Provo, Utah. The parcels were near the FrontRunner Rail Station and part of the assemblage had already been paid for. Our borrower had … click to read more

A Loan We Declined: A Property in Wallsburg, Utah

A loan broker asked us to loan $900,000 toward the purchase of a property located in Wallsburg, Utah. We learned the property was selling for $1.6 million, a 56% LTV. This was attractive to us until we found out how the remainder of the purchase was being financed. The additional $700,000 for closing was not … click to read more

Providing Liquidity for Properties in Eden, Utah

We were approached by a prospective borrower, who lived in the Eastern United States about a loan secured by multiple properties he owned in Eden, Utah. This area has grown in desirability due to its proximity to multiple ski resorts and other recreational activities, including Pineview Reservoir.  The borrower needed liquidity and was looking to … click to read more

Refinancing Construction Loans in Sand Hollow, Utah

A borrower had just completed two homes near Sand Hollow State Park in Southern Utah. The certificates of occupancy had just been issued and they were looking for a bridge loan that could retire the construction debt and provide time to obtain traditional financing. We lent approximately 75% of the value of these homes and … click to read more