first position is important because in a foreclosure scenario , all outstanding subordinate liens are eliminated . This makes it so the lender does not have to worry about reconciling those other debts on top of their own .
Why invest in First Trust Deeds ?
What are First Trust Deeds ?
Hard money lenders like Ignite Funding , tend to operate more in Trust Deed states . First Trust Deed investments offer an attractive yield with relatively low risk to Ignite Funding investors due to their senior lien position on the property and the foreclosure process that is more conducive to the investors who are the beneficiaries on the loan . This allows investors to earn double digit annualized returns paid as a monthly fixed income with
REAL property as their collateral .
A First Trust Deed is as it implies , is recorded first before any other financial liens on the subject property , whether they be secondary mortgages , trust deeds or even mechanics liens placed by subcontractors . This means the First Trust Deed holds a priority or “ senior ” position , making all other liens encumbered by the loan subordinate or “ junior ” to the senior loan . Obtaining
Ignite Funding , LLC | 2140 E . Pebble Road , Suite 160 , Las Vegas , NV 89123 | P 702.739.9053 | T 877.739.9094 | F 702.922.6700 | NVMBL # 311 | AZ CMB0932150 | 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 .
26