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Misconception of Trust Deeds #2

Updated: Mar 3, 2021

Only unworthy borrowers need hard money loans.

I mentioned that in the next several blogs I am going to review the most common misconceptions of Trust Deed investing, and here is the second in the series.

“Misconception 2- 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 flexibility than the traditional banking model.

Hard money lenders, like Ignite Funding, help make their borrowers stronger by providing them with the capital necessary to take their companies to the next level. They are able to accomplish more projects they otherwise wouldn’t have access to, which stimulates job growth within the company and the community that they build in. The continued success of borrowers in the long-term generates more quality investment opportunities for Ignite Funding to provide to their investors. Sometimes the borrowers become so successful that they eventually are able to acquire financing from traditional institutions.

I'll be sharing the third misconception of Trust Deed investing next week in the next blog post.

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