Investment Details Help

Is this a secured investment?

The Notes are special, limited obligations of Connect Invest only and are not the obligations of Ignite or the borrowers under the real estate loans and are not secured by any collateral or guaranteed or insured by any third party.


What am I investing in? Do I own a piece of property?

You are investing in a Loan Payment Dependent Note, securing the fixed interest payment and full return of principal at maturity due by the borrower. You are not investing directly into a piece of property.


What are the interest rates on your Notes?

Interest rates range from 6% to 9% on the Notes offered on our platform.


When will I begin to accrue interest?

The interest clock does not begin until the note is fully funded. To ensure that a Note begins accruing interest asap, you can invest the full amount or the remaining amount on the note. Once funded, you will receive a copy of the Note Agreement, which records the official start date for interest accrual.


What happens if the Note is left unfunded?

If the Note is left unfunded for 2 months, the position will be cancelled and your funds will automatically return to your wallet for reinvestment on a new Note. To prevent a Note from being cancelled, you can invest in the full or remaining position on the Note.


What is the duration of my investment?

Refer to your Note Agreement for the specific duration of the loan you are invested in. Investments typically range from 12 months to 18 months in duration.


Can I get my investment back at any time?

No, this investment is illiquid. You will receive your principle back when the borrower pays-off the loan.


What is a tranche loan?

A tranche loan enables the funding of a loan by compartmentalizing it by individual lots in a masterplan community or by the phases of construction. An individual tranche is associated with a master loan containing multiple tranches (the number varies).


How are you able to offer such high rates?

Third party hard money lenders like Ignite Funding fill the gap in lending that large financial institutions do not cover, and are able to negotiate higher interest rates.


Why would borrowers borrow at such high rates?

Hard money lenders are able to provide borrowers with the capital needed for their projects more quickly and are more flexible than traditional financial institutions; and therefore charge a higher interest rate on the lent capital.


Is there a minimum I must invest on each Note?

The investment minimum per Note is $1,000.


What is the difference between initial maturity and final maturity dates?

The loans that you purchase your Notes on are often split into two to three terms. For example, if the loan has a 9 month term with an optional 9 month extension for the borrower (the borrower chooses to extend, not investors), the initial maturity date is the end of that first 9 months. If the borrower utilizes their optional extension, then the final maturity date will be at the end of the second set of 9 months.


What is prefunding?

Connect Invest is investing their capital to “purchase” a portion of the loan offered by Ignite Funding. Connect invest is then offering that portion to investors in the form of Notes. Therefore, Connect Invest has prefunded the portion of the loan before offering Note investments to investors.


What happens when a borrower defaults on a Note?

You must rely on Connect Invest and their affiliate loan originator and loan servicer, Ignite Funding, to pursue collection against any borrower.


Does Connect Invest underwrite the Notes?

Connect invest does not underwrite the Notes offered on its platform. Third party hard money lenders such as Ignite Funding underwrite the loans the Notes are purchased under.


What type of investment accounts are allowed through Connect Invest?

Cash accounts are the only type of account allowed through Connect Invest.


In what states does Connect Invest typically offer Notes in?

Primarily in real estate projects located in the western United States, but will consider other locations should favorable opportunities arise.