Lending Expansion: Ignite Funding Cultivates Roots in New Regions About 6 years ago, Ignite Funding concentrated it’s lending in the southwest region of the U.S (i.e., Nevada, Colorado, Utah, and Arizona). While the southwest is still Ignite Funding’s primary footprint, if you take a look at our previously funded investments within the last 2-3 years you will see that we have expanded our reach to consistently lend in states such as Washington and Idaho.
Investment methods available:
■ Individual or Joint Cash Accounts ■ Self-directed IRA accounts (Traditional, Roth, Simple and SEP IRAs)/Solo 401k ■ Corporations, Partnerships and LLCs ■ Trusts ■ Pension Plans There may be multiple investors on a loan. An investor’s lending percentage equals the investor’s principal balance divided by the total loan balance, representing a percentage of the total loan on the property. As Ignite Funding is non-depository, funds transferred are held in an independent trust account until presented to the title company to fund the loan. There are no fees to invest with Ignite Funding as the borrowers cover all costs associated with the loan. Self-directed IRA custodians may charge an investment fee to process the transaction. STEP 5- Trust Deed is Recorded A Trust Deed investment is a promissory note, payable to the investors specifying the interest rate, repayment amount and time frame, secured by the Deed of Trust. Investors will receive a copy of the following documents after the funding of a loan:
Why is that?
This is due to one of Ignite Funding’s fundamental lending philosophies, which is to not limit our lending to any one region, borrower, or type of real estate project. Ignite Funding always works toward increasing the diversification of our book of business, not only to mitigate risk for the company but, more importantly, for our clients. This includes maintaining a steady flow of lending in regions that continue to show strong market drivers and receding from regions that start to show signs of slowing down. So, what does this lending pattern mean for Ignite Funding and its clients?
Stay the Course in the West
Americans have always sought out new places to realize an improved quality of life, whether that’s through cost of living, lower taxes, greater job opportunities or even a different lifestyle provided by the surrounding environment, creating waves of migration. Since 2011, Ignite Funding’s Director of Underwriting, Pat Vassar, has been instrumental in navigating the company through the ebbs and flows of various regional real estate markets. “We focus on identifying “growth markets” where population growth has been outpacing the national average,” states Mr. Vassar. “Once we recognize there’s a rising migration pattern, we also need to see that the people moving have well-paying jobs where the median salary can afford the median cost of the homes or greater. These are the markets where we want to be ahead of the curve.” About five or six years ago, Mr. Vassar saw this trend in Utah and Colorado, and was able to quickly maneuver Ignite Funding into a position to become a reliable lender in these regions. Within the last two to three years, Mr. Vassar saw a similar momentum building toward the Boise, Idaho area. “Young talent started moving-in because they could have the active, outdoor lifestyle that people originally sought in Colorado and Utah and they could afford to set-up roots there regardless of whether they were being underemployed for their skill level,” says Mr. Vassar. “Fortune 500 companies saw this growing pool of highly skilled and underemployed workforce, and swiftly moved- in to set-up headquarters to tap into that pool.” Mr. Vassar closely monitors every region that we lend in, even in markets that we have been lending in since the beginning. States like Nevada and Arizona continue to prove themselves as worthy markets to be in, growing in population density year-over-year.
■ Executed Promissory Note ■ Recorded Deed of Trust ■ Title Policy ■ Insurance on the Property
A Deed of Trust is recorded as a public document. The deed lists the investor(s) and their percentage of ownership in the property. Deeds of Trust can be recorded on a project in 1st, 2nd or 3rd lien position however Ignite Funding generally offers 1st lien position loans to provide a lower level of risk. (Lien position will be identified on the loan Fact Sheet.) STEP 6- Monthly Interest Payments Immediately upon funding the loan the investor begins to accrue interest. Interest payments are due at the beginning of the month payable by the 10th and are paid monthly throughout the duration of the loan per the specific loan terms. Interest payments are immediately directed back to the investor through their designated account or directly back to the IRA.
Investors can receive their funds in several ways:
■ Electronic deposit to bank account ■ Electronic deposit to IRA account ■ Check mailed to investor
Additionally, investors can view their statements to see all transactions to their account at any time by viewing
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