Many have inquired of Ignite Funding as to why all of our projects are in the Southwest U.S. in places like Nevada, Utah, California, Colorado, Arizona and Texas and not throughout the country. The simple answer is viability.We seek out markets that are viable in job growth and community growth, which directly impacts the real estate market. It is additionally essential these days that supply equally meet the demand for new home development in order to be a good investment for our clients. These markets actively show these positive trends.
Research conducted by Salt Lake Board of Realtors measured the amount of job growth by state for nonfarm payroll projected for 2016. It shows the greatest percentage of job growth occurring predominantly in the 6 western states with the top state being Utah at 3.7%. Another study conducted by BusinessInsider.com of the Hottest US Housing Markets in 2016 ranks Denver #1, Dallas #3 and 2 cities in Utah (Ogden & Salt Lake City) as #6 & #7. This is no coincidence. Our focus is to support developers in markets that show continued viability through jobs markets and consumer spending.
When jobs are created the local economies need to expand to accommodate the influx of people. Retail and homes are needed first. This positively influences the real estate markets in those areas. Our borrowers are aggressively supporting the need for all types of homes across all types of cost models; single family, multi-family and commercial buildings as the demand rises. During our underwriting process, we diligently evaluate each project for its capacity, capability and collateral value while additionally evaluating the surrounding area influencers such as homes constructed, proximity to jobs and feasibility of sales.
As the job market grows, it is the foresight of the developers to acquire land and prep it to meet future demand. Home developers require land to be acquired at least 2 years prior to be ready for construction. Our portfolio strategy adjustment to incorporate more acquisition loans over the past few years occurred to provide these developers the necessary funding to acquire land. We value outside research studies that validate our company’s foresight and business model dedicated to real estate opportunities across the Southwest U.S. states.