Ignite Funding

Phone: 702-739-9053

Address: 2140 E Pebble Rd, Suite 160 Las Vegas, NV 89123

Website: http://ignitefunding.com/

Email: info@IgniteFunding.com

States They Lend In: Nevada, Colorado, Arizona, Washington, Oregon, Idaho, and Utah

 

Ignite Funding provides homebuilders and developers with a reliable lending source throughout the Southwest. The advantage of borrowing with Ignite Funding is our ability to rapidly process and fund a loan, unlike conventional lenders.

The following criteria should be considered by Borrowers before sending a funding request.

 

Types of Loans

 

At Ignite Funding, we offer the following loan types:

• Financing  or refinancing of non-primary residential or income-producing commercial structures
• Acquisition or refinancing of undeveloped land
• Development and construction of residential or commercial projects
• Acquisition of distressed assets from regional banks, the FDIC, and other lenders

 

Loan-To-Value

 

Ignite Funding generally lends within the following loan-to-value ratio ranges depending upon property type, location, and other relevant factors associated with the property.

• Land Acquisition | Up to 65% of the acquisition value of the land
• Development | Up to 70%
• Construction | Up to 75%

 

Funding Limitations

 

The per loan funding limits are $500,000 to $10 million.

 

Term

 

Loan terms are generally between 12 to 18 months. Extensions may be offered subject to additional fees. Longer term loans are considered on the overall project viability and strength of the borrowing entity.

 

Initial Documentation Requirements

 

Ignite Funding prides itself in knowing and understanding the needs of a Borrower. We proactively request information not only to better serve our Borrowers, but also to provide our Investors with a detailed overview of the property and borrowing entity.

 

The following information is required for each loan to complete the initial underwriting process:

 

• Detailed description of the loan request
• Intended exit strategy
• Preliminary Title Report
• Purchase or option agreement for the property
• Documentation for borrowing entity (Articles of Incorporation, Operating Agreement, etc.)
• Appraisal or Broker Price Opinion of the project completed within the last 6 months
• General liability or hazard insurance
• Current Financial Statements and two most recent years tax returns for the Borrower and Guarantor(s)
• Phase I Environmental Report (if applicable)
• Design plans for the project (if applicable)
• Construction cost breakdown (if applicable)

 

Interest Rates

 

Depending on the loan type, interest rates typically start at 8% annually.

 

Origination Points

 

Loan origination points vary depending on the project type and loan term from 2.0% to 6.0%.

 

Personal Guaranty

 

A personal guarantor is required on most loan

 

Questions & Answers

 

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.

 

In what states does Ignite Funding fund loans?

 

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

 

What is the minimum investment?

 

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

 

How long do most loans last?

 

Ignite Funding’s loans typically range from 6 to 24 months

 

When will I receive monthly interest payments?

 

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

 

How do I receive monthly interest payments?

 

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. Interest is charged using a 30/360 interest calculation.

 

What are the risks associated with investing in Trust Deeds?

 

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.