What are the benefits/risks to becoming an Investor?

Diversification: You select the property and Borrower you want to loan to. Opportunities include land acquisition, development, construction, and existing structures for both residential and commercial properties.

Security: All loans are collateralized by a Promissory Note secured by a recorded Deed of Trust.

Built-In Equity: Varies per loan, but typical loan amounts range from 50% to 75% of the subject property’s current assessed value. Valuation methodologies could include obtaining broker price opinions, comparable sales prices, and independent appraisals.

Higher Yields: Varies per loan, with interest rates ranging from 10% to 12% per annum.

Monthly Income: Interest is paid monthly to Investors. No loads like other investments.  You are getting interest paid on every dollar invested.

Short Terms: Varies per loan, with investments terms ranging from 6 to 24 months. Trust Deeds usually do not carry pre-payment penalties.

Investment Options: Investors have a number of methods to choose from, which include investing through non-qualified funds, trusts, IRA/401Ks, pension plans, LLCs, and cash accounts.

Risk Factors: As with any investment there are inherent risks. If your investment with Ignite Funding is impacted by the market or as a result of Borrower default, it is important for you to fully understand your role, rights, and responsibility as an Investor.

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By |July 31st, 2013||0 Comments