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.
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?
Repurposing old buildings into apartments may not be an exciting new concept, with its roots dating back to the 1950s. But what should capture your attention is that this trend has continued to grow, with almost 800 conversions over the last decade in the United States. That is about 300 more conversion projects in the 2010s than was seen in the early 2000s. Factories and office buildings have been the most popular types of apartment conversions in the past decade.
"The Phoenix real estate market has been as hot as the Arizona summer sun, attracting hard money lenders like Ignite Funding into the desert arena. Positive market drivers, favorable building climate, quality real estate projects and borrowers are all variables that Ignite Funding factors into its lending strategy, and Phoenix checks all the boxes."
At Ignite Funding, we believe that understanding every aspect of your investment(s) is important. This includes understanding certain lending practices and strategies that we adhere to in your Trust Deed investments. One practice you should familiarize yourself with is voucher control, which you will most commonly see in projects involving horizontal development and vertical construction. Below we delve deeper into the role that voucher control plays in development and construction loans.