82°F
weather icon Clear

Real estate investing is not a one-trick pony game

Updated June 9, 2021 - 9:45 am

Ignite Funding, a hard money lender, experienced zero defaults in 2020, a pitfall that many lenders and real estate developers were unable to avoid due to the global pandemic. Ignite Funding has not taken this achievement lightly, knowing that many in the lending industry were not left unscathed.

Ignite Funding attributes this success to their lending philosophies and the various steps they take to mitigate the company’s overall exposure to risk.

Risk mitigation is exceedingly important as Ignite Funding’s sole operation is to provide thousands of investors the opportunity to participate in real estate investments through trust deeds.

The ‘one-size-does-not-fit-it-all’ philosophy

Ignite Funding does not abide by a “one-size-fits-all” approach to lending. This flexibility allows Ignite Funding to work with proven developers with varying expertise and product type.

In other words, Ignite Funding does not put all their eggs in one basket by only lending on one type of real estate developed in one specific region. This allows Ignite Funding to stay ahead of real estate trends and maintain a diverse portfolio that has been essential during market fluctuations.

“We understand the importance of not limiting our financing and being nimble in an ever-changing real estate market,” affirmed Pat Vassar, the director of underwriting at Ignite Funding.

“Our success is derived from identifying borrowers that recognize a real estate product need and delivering it to the market at an opportune time. This includes the borrower having the ability to re-create themselves and evolve with the market as needed.”

Ignite Funding typically lends in the Western U.S. but is open to working with bankable borrowers in non-judicial states with a long history in the region and reliable track record. Ignite Funding primarily lends on the acquisition and horizontal and vertical development/rehabilitation on residential and commercial projects.

For example, investors have the ability to invest in projects ranging from the Huntridge Theater rehabilitation in downtown Las Vegas to apartment conversions in Sierra Vista in Arizona to converting malls into lifestyle centers on the outskirts of Boise, Idaho.

This level of diversification is how investors are able to optimize and mitigate risk within their individual real estate investment portfolios.

The ‘loan-to-own’ philosophy

While Ignite Funding leaves the door open to new opportunities, that does not mean they agree to fund every project that walks in.

“Only about 10 percent of the loans that come through the pipeline get approved for funding,” Vassar said. “This applies not only to borrowers that may be new to Ignite Funding but repeat borrowers as well.”

This is because of Ignite Funding’s “loan-to-own” philosophy, which means that while the underwriting process includes a thorough review of the borrower to ensure that they are a financially sound company, the main focus is on the respective property and the borrower’s intended exit strategy.

“Even the best borrower is only good until they are not. At the end of the day, your main source of recourse is going to be the property you take back through foreclosure and if you are able to execute the sale of the property as it was intended,” Vassar said.

2020 performance highlights

Ignite Funding prides itself in its ability to continuously support the success of its borrowers, and in turn, provide quality investments to its investors.

At the end of December 2020, Ignite Funding had $175 million in loans under management and paid out $14.3 million in interest income to investors.

To date, Ignite Funding has facilitated 1,376 real estate investments funded with $907 million in investor capital, providing 51 borrowers in 16 states with the ability to acquire and develop more than 12,000 acres of land, 8,100 residential lots and 3.5 million square feet of commercial space.

Go to ignitefunding.com to review Ignite Funding’s annual performance record since their inception in 2011.

THE LATEST
Summerlin Festival of Arts to be held Oct. 8-9

Now, in its 26th year, the popular Summerlin Festival of Arts returns to Downtown Summerlin Oct. 8-9. The hallmark outdoor festival, sponsored by The Howard Hughes Corp. and Las Vegas Review-Journal, features the works of more than 100 fine artists and craftsmen from Southern Nevada and surrounding states, each carefully selected by a jury of local art experts. This free event, which is set on The Lawn and under the Pavilion at Downtown Summerlin, offers free parking and a vibrant, lively atmosphere for the entire family.

Skye Canyon to host Chalktoberfest on Oct. 22

Skye Canyon will host its sixth annual juried chalk art competition, Chalktoberfest, a festival welcoming the fall season, Oct. 22 from 11 a.m. to 4 p.m at Skye Canyon Park, 10111 W. Skye Canyon Park Drive.

Tri Pointe opens Azure Park in North Las Vegas

Today marks the grand opening of Tri Pointe Homes’ Azure Park community in North Las Vegas. This upscale collection of modern two-story homes is located just off the 215 Beltway near Nellis Air Force Base and showcases three striking architectural styles including Transitional Spanish, Contemporary and Modern.

Shriners Children’s Open returns to TPC Summerlin Oct. 3-9

Home to an impressive collection of 10 public and private golf courses, including Nevada’s only two Tournament Players Club (TPC) courses, the master-planned community of Summerlin has long been known as a golfer’s paradise. For the 30th consecutive year, the eyes of the golf world once again turn to Summerlin as the PGA TOUR Shriners Children’s Open unfolds at TPC Summerlin, Oct. 3-9.

Blue Heron opens Oasi in historical neighborhood

Blue Heron has broken ground on its newest community in Las Vegas: Oasi, a private gated community in the city’s historic Tomiyasu neighborhood.

Trilogy to celebrate two 55-plus communities

Homebuyers interested in the Las Vegas area are invited to attend model home grand openings, and get a look at a new resort club at two 55-plus communities: Trilogy in Summerlin and Trilogy Sunstone.

Summerlin offers new move-in-ready homes

Summerlin currently offers more than 100 unique floor plans in 20-plus neighborhoods throughout eight distinct villages and districts.

Trilogy to showcase Summerlin, Sunstone communities

Homebuyers interested in the Las Vegas area are invited to attend model home grand openings at two resort-style 55-plus communities offered by Trilogy by Shea Homes: Trilogy in Summerlin and Trilogy Sunstone.