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.
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.