Sponsored: For the everyday investor that wants to add passive real estate investments and double-digit returns to a diversified portfolio.
Investing in real estate has always been an option that many people do not regard themselves as being a part of. When asked, “Do you invest in real estate?” most responses include some sort of comment regarding their inability, the risk, or the hard work. However, the vast majority of Americans own a home. This ownership in a personal home is an investment in real estate that over time appreciates in value. A Deed of Trust is the collateral note behind the real estate investment, and once you pay-off a mortgage company they release that note to you for free-and-clear ownership of your home. Investing directly in Deeds of Trust has been a viable option for ‘hands-free’ real estate investing that has gotten a bad rap over the years. The most common misconceptions of Trust Deed investing are the following:
Trust Deeds are for rich people to invest in.
Historically Trust Deeds were opportunities made only available to ‘accredited investors or the wealthy. An individual accredited investor must carry a household net worth of over $1 million (excluding the value of your primary residence) and/or have a net annual income of over $200,000 each year with reasonable expectation that you will continue to attain that level of income. This still holds true in some states that regulate Trust Deeds as a security product with the SEC.
This regulation does not apply to all states. In fact, over 20 states regulate Deeds of Trust as a mortgage product under state laws, effectively opening up the investment to anyone that meets minimal suitability requirements. To be a “suitable” Ignite Funding investor, your net worth must be more than $250,000 (excluding the value of your primary residence) or have a net annual income of more than $70,000 each year with reasonable expectation that you will continue to attain that level of income. Ignite Funding works with real estate developers in states such as Nevada, Arizona, Utah, Idaho, Washington, Oregon, and Texas for this and many other reasons.
Only unworthy borrowers need hard money loans.
Financial institutions restrict the size of loans, types of loan, and quantity of loans they offer for acquisition, development, and construction projects. This provides numerous limitations in the amount of money mid-sized home builders have access to. Ignite Funding borrowers, like other indirect lenders, use our financing as they do not fall into the lending variables of banks of any size. Additionally, indirect lenders can provide faster financing for quicker transactions and greater flexibility than the traditional banking model. If otherwise, Ignite Funding would not have been able to facilitate over 1,100 real estate investments and fund over $725 million in real estate transactions for over 50 borrowers, since its inception in 2011.
To continue reading the other three misconceptions, please click here.
If you are interested in becoming a Trust Deed investor or want to learn more, text the word “Investments” to 844.552.7022 or you can CLICK HERE to schedule a FREE consultation at your convenience.
Ignite Funding, LLC | 2140 E. Pebble Road, Suite 160, Las Vegas, NV 89123 | P 702.739.9053 | T 877.739.9094 | F 702.922.6700 | NVMBL #311 | AZ CMB-0932150 | Money invested through a mortgage broker is not guaranteed to earn any interest and is not insured. Prior to investing, investors must be provided applicable disclosure documents.