Trust Deed investing with Ignite Funding provides our clients with a number of benefits that they cannot achieve with their typical Wall Street assets simply due to the nature of those investments. Trust Deed investments generate a passive, fixed income, enable capital preservation due to a collateralized tangible asset on every investment, and adds diversification within their investment portfolio. However, you are not reaping the full benefit of Trust Deeds without implementing the below ingredients into your investment strategy.
On August 3rd, 2021, Ignite Funding, a hard money lender, crossed the $1 billion dollar mark in funding residential and commercial real estate loans. It was just last year that Ignite Funding announced the milestone of $750 million funded, which puts this new achievement under their belt at record pace.
The way you transfer your cash to make an investment at Ignite Funding can be detrimental to the safety of those funds, as well as the speed in which they are received. The security of your investment is Ignite Funding’s highest priority, which is why we are taking the time to help educate you on ways you can mitigate your exposure to certain risks while your cash is in transit.
Delays are a reality of the real estate industry, whether it is in getting the loan closed, the development or the construction phase. If you have ever purchased a house before, there is a good chance you experienced a delay in closing on your home; or you may have heard the horror stories from friends and family. Regardless, the same thing can happen in commercial lending, including Trust Deed investments at Ignite Funding. There are so many moving parts to close a loan between the borrower, the lender, and the Title company, that delays are just inevitable. The frequency that Ignite Funding funds loans on a monthly basis will of course subject us to more potential postponements.
Ignite Funding, a hard money lender, experienced zero defaults in 2020, a pitfall that many lenders and real estate developers were unable to avoid due to the global pandemic. Ignite Funding has not taken this achievement lightly, knowing that many in the lending industry were not left unscathed. Ignite Funding attributes this success to their lending philosophies and the various steps they take to mitigate the company’s overall exposure to risk. Risk mitigation is exceedingly important as Ignite Funding’s sole operation is to provide thousands of investors the opportunity to participate in real estate investments through Trust Deeds.
Ignite Funding is licensed and regulated through the Nevada Division of Mortgage Lending as a commercial mortgage broker. As such, we must follow the Nevada Revised Statutes (NRS 645B) and Nevada Administrative Code (NAC 645B) as it relates to mortgage brokers. The Division mandates the use of certain forms and disclosures for any mortgage company that engages in private investor activity, one of which is the Special Power of Attorney. The Division requires the Special Power of Attorney to be signed by the investor with the verification of a notary public. The Division also requires this document to be executed by the investor for each loan an investor chooses to participate in.
It doesn’t matter if you are looking to finance a home loan or a commercial real estate development, everyone wants to pay the lowest rate possible on borrowed money. It’s no secret that traditional institutions, such as small, medium and large banks, are typically able to offer much lower rates than private lenders like Ignite Funding; so how is it that we remain an integral cog in the wheel of the lending industry?
The question isn’t at what age you want to retire, it’s at how much income you want to have when you decide to. If you’re simply relying on stocks, bonds, and mutual funds for your investment strategy, then you are missing what could be a pivotal vehicle for the growth of your retirement nest egg. Did you know that you can invest in real estate with a retirement account? With Trust Deeds at Ignite Funding, you can diversify your portfolio from the conventional market AND compound double-digit returns in a qualified account. Trust Deeds have longer hold periods, lower investment minimums, and offer capital preservation, making it an ideal investment to deploy for a long-term retirement strategy.
When determining what Trust Deed investment to invest in, the single most important aspect is the collateral that is backing the loan. The only security an investor has in the event of a default is the real estate itself. Real estate collateral operates in a similar fashion to that of an auto loan. If the auto finance company lends to the consumer and the consumer defaults on the loan, the finance company takes the collateral back. The only true recourse an investor has is the collateral, this is why Ignite Funding is hypersensitive to the current market valuation and future market valuation of real estate.