Commonly Asked Questions

Speed and Flexibility. With a growing Investor base, Ignite Funding is capable of raising funds in a short amount of time to finance a variety of real estate projects. As a licensed mortgage broker regulated by the Mortgage Lending Division of the State of Nevada, Ignite Funding has more flexibility in its loan selection process than traditional banking institutions. With the majority of loans being underwritten for 6 to 24 month terms, Borrowers are willing to pay higher rates of interest for short borrowing periods in order to obtain needed financing to acquire or develop real estate projects immediately.

Ignite Funding primarily invests in real estate projects located in the western United States, but will consider other locations should favorable opportunities emerge.

Ignite Funding requires a $10,000 minimum investment amount per Trust Deed investment.

Ignite Funding’s loans typically range from 9 to 18 months

Interest payments are paid in arrears based on the monthly interest charged for the prior months borrowing activity.

Borrower payments are due to Ignite Funding on the 1st of each month with a 10-day grace period.  Once we receive the payment from the Borrower, we clear the funds through our bank and distribute the interest payments directly to the Investors on the 15th of each month, or the business day prior if the 15th falls on a weekend or holiday. Interest is charged each month using a 30-day month interest calculation.

Borrower payments are due to Ignite Funding on the 1st of each month with typically a 10-day grace period. Once we receive the payment from the Borrower, we clear the funds through our bank and distribute the interest payments directly to the Investors on the 15th of each month, or the business day prior if the 15th falls on a weekend or holiday. Interest is charged using a 30-day month interest calculation.

When practicing business in a lending environment, default situations do occur, particularly amidst the slowed home sales and credit limitations impacting the present real estate market. As part of its underwriting process, Ignite Funding attempts to determine the feasibility of principal recovery should the Borrower default on a loan. Ignite Funding does not approve loans without clear exit strategies. Ignite Funding is committed to attaining the best possible resolution on behalf of its Investors. Over the past 30 years we have worked very hard in different market conditions to earn a favorable reputation in our industry, and we are confident that Investors will benefit from our experience, resources, and ability to take action on behalf of our Investors. Borrower default may result in a variety of scenarios including, but not limited to, suspension or discontinuance of monthly interest income for Investors, Borrower Bankruptcy, and Investor property ownership through foreclosure. Market conditions at the time of property ownership may result in an inability to sell the property for a significant period of time, and foreclosure expenses and carrying costs associated with property ownership are ultimately the responsibility of Investors. These expenses, as well as the ultimate sale or resolution of the property, may result in a partial or lack of principal return to Investors.

Before investing, an investor must verify that they meet one or more of the following financial requirements:

• The investor’s household net worth is more than $250,000.00, excluding any equity in any real property used as the investor’s primary residence at the time of the investment; or
• The investor’s household net annual income was more than $70,000.00 for each of the previous two tax years and there is a reasonable expectation of attaining or exceeding the same income for the current

The investor must also verify that their total investments in mortgage loans secured by a lien on real property transacted by a mortgage broker or mortgage agent are not valued at more than 50% of the investor’s household net worth or household net annual income, whichever is greater.

If you have any questions regarding any of the issues discussed in this disclosure form, discuss them with your Ignite Funding Investment Agent, lawyer or financial advisor or a trusted friend or family member. No one can guarantee that a particular investment will be risk free, but with information about the specific risks involved, you can take steps to minimize your risk.

Individuals: One individual holds property under an “unmarried” status to attest that there is no community property interest or under a “married” status with the accountholder declaring the assets as sole and separate property.

Joint Tenants: Two individuals hold property jointly with rights of survivorship.

Self-Directed IRA: An Individual Retirement Arrangement (IRA) allows a person to save and invest money for use in retirement while deferring or eliminating taxes on the account’s earnings.  A Keogh plan is much like an IRA but is only available for people who are self-employed.  IRAs have custodians or trustees, as do Keoghs.  Vesting must always be in the name of the custodian or trustee for the benefit of the accountholder. Many traditional IRA custodians do not permit alternative investments such as Trust Deeds. Please consult with your Investment Agent for further assistance.

Pension Plans: These plans invest the retirement funds of their members and take title in the name of the pension plan

Trusts: Investments are held in the name of a family trust, testamentary trust, charitable trust, or an irrevocable trust and are controlled by the trustee, who must be authorized by the trust document to enter into and manage transactions.

Corporation: The purchase of an investment vehicle by a corporation requires corporate authorization.  Therefore, bylaws or a corporate resolution authorizing transactions are required.

General Partnership: All partners can bind the partnership and all partners are liable for partnership debts if the partnership itself fails to pay. Title is held in the name of the Partnership.

Limited Liability Company (LLC): Similar to a partnership, only without the personal liability of a general partner.  LLCs are composed of “members”, one or more of which is a “managing member” with authority to contractually bind the LLC.  Title is held in the name of the LLC.

Limited Partnership: Consists of one general partner and many limited partners.  Only the general partner can bind the partnership, and only the general partner is liable for partnership debts if the partnership itself fails to pay. Title is held in the name of the Partnership.