By Carrie Cook
Still looking for better investment performance? How does $1M in tax free returns sound?
Securing strong investment yields is still one of the top priorities of all investors out there today. Of course big promises alone can’t be the single driving force behind investment decisions. Otherwise we’d all be off to the casinos in Vegas to go all-in on every next roll of the dice, and financial planners would be out of business. Returns are important, but so is diversification, tax planning, and finding sustainable investments.
The Search for Sound Investments
Finding sound, profitable investments and enough of them can be challenging. Some have very diverse stock portfolios, yet really have no idea what to expect from their performance. Many have added owning a home to their assets, and hope to gain from equity growth as they pay down their mortgages. Some take this further with direct investment in rentals. Rental homes can provide similar benefits to homeownership, but can also bring significant time demands and expenses. Then there are REITs, which promise ease of investing, but provide no collateral and present the same high volatility risks they are exposed to in other stocks.
Then there is trust deed investing. This may also be called ‘note investing’ or private lending. This is a sector loved by sophisticated individual investors and institutional investors for its simplicity, strong collateral, and of course the yields. These are the types of investments which have made the likes of Warren Buffett, Sam Zell, Blackstone, and Bank of America very wealthy.
President of Ignite Funding, Carrie Cook says it’s entirely “possible to invest $100k at 10% in mortgages for 25 years, and reap $1M in tax free returns.”
This is exactly the type of investments Nevada based Ignite Funding specializes in. Ignite Funding has been featured on Modern Living with Kathy Ireland and Bloomberg Television. Led by president and woman entrepreneur Carrie Cook the firm has been providing these elite investment opportunities for 21 years.
Ignite Funding offers qualified investors the ability to participate in their success by funding high quality borrowers in the real estate space. These trust deed or mortgage investments provide cash flow, above average yields, and the security of being backed by tangible real estate collateral.
Some big funds and new note brokers have recently made this space popular in heralding the benefits of investing in distressed debt and non-performing existing loans. In contrast Carrie explains that Ignite focuses on issuing new capital to strong builder developers with great track records. Specifically the firm’s president explains that they carefully curate “a pool of highly prized borrowers who have been in business for at least 10 years.” In fact, this lender-broker does not even operate a borrower facing platform. They seek out those they see are the most qualified. If builders do find them Carrie says they “accept only around 20% of the requests received.” The funds are used for acquisition, development, and construction, and target a 10% to 12% annualized return to investors.
This is NOT Wells Fargo
Among the refreshing differences that investors will find at Ignite Funding is a serious dedication to sustainability and transparency.
Those are words which are easy for companies to spout out these days to capitalize on trends. But this company proves it by really putting the information out there. Other CEOs, especially in this male dominated field might deem some of this transparency clearly unnecessary and going too far. Yet, it is clearly in favor of the investors, as it holds their asset manager to a high standard and ensures they are working hard to deliver the best results today and over the long term.
Some of the ways you’ll see this displayed via the firm’s website include a calendar of deals being funded, five years’ worth of detailed performance documentation, and even information on defaults. That’s right; no matter how diligent and careful you are some loans will default. Some big banks have become infamous for how they hide this information for so long. Not here. Carrie Cook’s team clearly displays any default information, along with the cures. The data is encouraging too, with the company recouping over 100% of investor capital even in some of the worst performance cases displayed. Carrie credits this success not only to the investors and borrowers involved, but her teams attitude of being willing to “run into the fire, not from it,” as well as the consolidated approach of completely in-house operations from origination to servicing and loss mitigation.
Who is Investing in Trust Deeds?
In addition to the very visible and notable examples of big funds and billionaires who invest in this asset class, there are a growing number of private individuals who are experiencing great results here.
Ignite Funding accepts a minimum investment of $10,000, though Carrie says “around 75% of clients are using their IRAs to invest,” which means they can invest a lot more. However, one of the best features here is that while adhering to Nevada’s strict sustainability standards, this type of collateralized investment is open to those earning just $70,000 or more each year, providing they are not investing more than 15% of their net worth.
For those interested in learning more about trust deed investing, how Ignite Funding protects its clients with multiple layers of security, and who want to soundly diversify their portfolios find out more online at IgniteFunding.com.
Disclaimer: 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. Ignite Funding, LLC | 6750 Via Austi Parkway, Suite 230, Las Vegas, NV 89119 | P 702.739.9053 | T 877.739.9094 | F 702.922.6700 | NVMBL #311 | CACFL #603J286 | AZ CMB #0932150 and AZCMBBR #0121055.