Articles / Case Studies

A Loan We Declined: Potential Rezoning Project

Situation We recently received a request to provide a loan secured by a single-family residence in Salt Lake County, Utah. The collateral was located in an area where the government had discussed the possibility of rezoning. While this can lead to increases in prices, the zoning had not yet been passed. Due Diligence When we … click to read more

2017 Audited Returns: All Funds 11.8% IRR or Greater

For the year ending December 31, 2017, all Actium Funds delivered strong audited performance numbers in excess of 11% Internal Rate of Return (IRR). This continues a history of consistently strong audited performance, as at the end of 2016, the audited IRR for each of the Actium Loan Funds were in excess of 11%. In … click to read more

Anatomy of an Actium Loan: High Annualized Return in Wasatch County, Utah

Situation A borrower sought financing secured by approximately 56 acres of land near Highway 40 in Wasatch County, Utah. He sought a sum of $1,120,000 for a very short time period: six weeks. Due Diligence Appraisals valued the land at $6,282,000, giving the loan an 18% LTV. This value did not include the water rights, … click to read more

A Loan We Declined: Not Sleeping on Motel Due Diligence

Situation We were recently approached with a request for a loan sounding strikingly similar to our typical investments. A nationally branded motel in Central Utah was offered to secure the loan, piquing our curiosity, and the mortgage broker provided an appraisal showing that our characteristic loan-to-value requirements would be met. Due Diligence As part of … click to read more

Anatomy of an Actium Loan: Condominium in Maui

Situation One of our trusted referral sources reached out to us, asking whether we would be interested in making a loan secured by a first-position lien on a condominium. The condominium, located on the Island of Maui of Hawaii, carried great present day value, and, as a first-position loan, could present relative safety for our … click to read more

A Loan We Declined: Walking Away from Risk in Southern Utah

Situation One of the loan brokers Actium had developed a relationship with recently approached us regarding a real estate investment loan opportunity secured by twenty residential building lots, located near St. George, Utah. The borrower was a home builder looking to build out the lots, and the broker told us that the loan to value … click to read more

Anatomy of An Actium Loan: Heber, Utah Subdivision Lots

Situation A home builder approached us to refinance a loan secured by three building lots in a subdivision near Heber, Utah. This builder was in the process of building other homes in the area and held these lots as inventory to sell to future homeowners. Due Diligence The borrower requested a loan of $300,000. The … click to read more

A Loan We Declined: Walking Away From Risk In South Salt Lake, Utah

Situation The area of South Salt Lake, Utah is experiencing substantial growth due to the recent addition of a light rail and a large commercial development slated to be anchored by Winco. We previously held a loan secured by a warehouse in this neighborhood and saw the increase in values. A borrower approached us to … click to read more

Anatomy of an Actium Loan: St. George Warehouse

Loan Due Diligence The owner of an industrial supply business was looking for funding on a short-term basis to cover cash flow needs until permanent financing could be obtained. He owned a warehouse outside of St. George, Utah that handled the Southern Utah operations for his business. In addition, some of the warehouse was rented … click to read more

A Loan We Declined: Orem, Utah

We were recently approached regarding a loan on commercial real estate in Orem, Utah. The mortgage broker provided a recent appraisal that was done on the property that would have given the transaction a loan-to-value ratio that would be potentially acceptable to us. Loan Due Diligence The property was in an area of considerable redevelopment … click to read more