Misconception of Trust Deeds #5

Updated: Apr 20

My financial planner doesn't offer this so I can't do it.


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 fifth and final misconception in the series.


“Misconception 5- My financial planner doesn't offer this so I can't do it.

There are various types of financial planners, advisors and brokers that provide both traditional and alternative investment options. Many are not permitted to invest in any type of product, other than what they represent, however, many are. Ignite Funding actively works with Registered Independent Advisors, financial advisors and planners across the country to integrate Trust Deed investments into their client portfolios. As the traditional markets waiver, many advisors/brokers are educating themselves on alternative investment options and offer new types of diversification for their clients.

There is a lack of regulatory oversight over hard money lenders. Residential and commercial broker regulation and oversight is mostly determined on the state level. There are varying levels of strictness state-by-state, but there is always regulatory supervision in some shape or form. Ignite Funding operates in Nevada, which happens to be one of the most stringent with licensing requirements, lending practice regulations and oversight in the nation. As a commercial broker, Ignite Funding is required to be licensed and are held to the same high standards as residential lenders. Many states offer exemptions to licensing for commercial lenders.In adherence to state supervision, there is annual continued education, monthly and annual activity reports are submitted, annual company financials are provided, and even something as simple as relocating the office has to be pre-approved before it can be executed. There are also compliance examinations administered by the state to ensure continued compliance standards are being met, and there are no deficiencies in policies and procedures that need to be remedied.


Trust Deed investments are a type of security investment.

The definition of a security is somewhat vague in regard to alternative investments in real estate, so it is understandable that there is confusion. An important differentiation between Trust Deed investments offered by Ignite Funding and securities is that securities are regulated by the SEC. Ignite Funding is regulated by the Nevada Division of Mortgage Lending.


Once someone can overcome the misconceptions of Trust Deed investing and truly investigate the viability, many will find that there are ideal investment options available that are returning double-digit returns in every community. The key is to find the ideal investment scope and company that matches your goals. Seek a reliable, transparent company that receives some sort of regulatory oversight to ensure you are not taking on unnecessary risk.


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