Overall, it is a benefit. Many of our borrowers do not have debt sources that completely replace us but do have equity options. Often these equity sources will take large chunks of the borrower’s profit that will ultimately cost much more than our current interest rates.

We generally are a lender for short-term projects with clear exit strategies. For borrowers whose projects stay within these guidelines our cost of capital will not hinder them. However, if the borrower experiences significant delays or changes in budget, our cost of capital can become larger than originally anticipated for the borrower.

What sets us apart is our knowledge of the industry and our fast turn-around times. Our underwriting department understands the nuances of real estate and can work with borrowers to create loans that are cost effective while also allowing them to execute their projects in a timely manner.

Additionally, once we have underwritten a deal and the borrower who manages it, we generally have fast turnaround times for their requests. Specifically, draw requests can be funded within a few days and new loans can be funded within 2-3 weeks for an established borrower.

While we can lend in most states, we are a company driven by numbers and performance. We are more willing to do deals in markets that have shown strong growth demographics for the present and, more importantly, the future.

We also require the target market to have a proven need for the type of project our borrowers intend to create.

When determining which areas of the country we lend, we tend to look at which areas will offer our investors the best risk-adjusted returns. Do these new areas offer risk adjusted returns more than where we are currently lending? If so, we will make the jump into a new area.

While there are many important metrics, a few include:
- Population growth
- Job growth/Unemployment
- Home affordability index
- Vacancy rates
- Average income
- Average age

Ignite Funding will only give loans on projects backed by a collateralized lien on the land and any improvements that exists upon it. If the loan is not backed by land plus any improvements, such as a loan for furniture or fixtures, we will not consider it.

We do not have pre-set limits for portfolio exposure per state. We are always working to increase exposure in markets we view as strong, while decreasing exposure in markets viewed as less favorable.

Under most instances, value is obtained by an independent third party. This third-party valuation can come in the form of a purchase contract, a broker's opinion of value, or an appraisal of the asset.

Additionally, we will also internally assess what the asset is worth. This may be based on current value, finished value, or a mix depending on what the intentions of the borrower are for the loan we are originating.

Yes, we keep track of all projects throughout their entire life cycle. This is done to ensure loan proceeds are being used according to budgets while also making sure the quality of investors’ collateral is maintained.

We work with third party voucher control companies to ensure funds are allocated as shown in budgets created before the project began. These companies will independently verify that work has been done according to budget and send us this information to sign off on before money is disbursed to borrowers. As such, there are many layers of verification that exist for construction-controlled projects.

Very rarely will we not consider looking at a deal. However, all deals we consider must be backed by land and its improvements as a collateralized lien to be considered.

There are very few places that we refuse to consider, on the other hand, very few of the lending opportunities we look at are enacted upon by Ignite.