[00:00:00] Speaker A: Welcome, listeners. You're listening to the Deeds in the Desert, where real estate investors tune in for the latest news.
[00:00:08] Speaker B: Welcome back to another episode of Deeds in the Desert. I'm your host, Pat Vassar, director of underwriting. And with me today is Jayden, the junior underwriter here at Ignite Funding.
[00:00:19] Speaker C: And we're here to talk about location.
[00:00:21] Speaker B: How it impacts valuation and why it's important to you, the investor. Thanks for coming on, Jaden.
[00:00:27] Speaker C: Oh, I'm happy to. It's been too long.
[00:00:28] Speaker B: Yeah, it's been a while. Well, let's talk about the first thing you need about real estate, which is location, location, location. Right. That's the kind of the golden rule when it comes to real estate. Why is it important? Why does it matter and why do we care?
[00:00:42] Speaker C: I mean, that's a great question and has very many important answers. So first off, why does it matter? I mean, simply put, you can have the best project you could ever have, you could have the best borrower, the best plan, very clear exit strategy. But if it's not in the right spot, the project's not going to do well. And that goes in the same capacity of, hey, you know, where do I want to be? How am I going to evaluate this real estate? Location plays a huge part in that. It really has to do with everything from population to the economy and really all that trickles down into how you evaluate the real estate. So when we're thinking location, that's certainly one of the first things we're talking about. And really what we're going to be talking about today.
[00:01:21] Speaker B: Yeah. And when you hear the word location, obviously that can mean a multitude of different things. We can look at it from a macro level and look at what country it's in or a little bit smaller level, look at what state, state it's in maybe, and then maybe down to a micro level level, what corner, what intersection is it on? And so when we look at real estate from a macro standpoint, what are the kind of main drivers that you look for in different states or different municipalities you want to get involved with?
[00:01:50] Speaker C: No doubt. So there's first, there's really a few main items that I'll look into first and then I'll let those kind of dictate my research going forward in that market. The first of those is population demographics. What's going on in that market? Are people coming into it? Are people going out of it? And if so, really what's the cause of that movement in population? So first off, we'll see, you know, is this market growing, a lot of the times it can do with investment from either institutional investors or government investment itself. And we can say, hey, you know, is there a broad investment across multiple industries in this market? Does it seem like it's becoming more of a tech market?
Is it all from one large investment or is it from multiple small investments? Those are all important things to consider and really can have very important distinctions. For example, there's a project we've been working on out in Abilene, Texas, that's seeing a very large data center being built out there, the first phase of which I think is about $15 billion. So that's a significant amount of money in a tertiary market. So it's important to say, hey, this large investments coming into town, it's likely going to drive a lot of job creation and really lift up the market in itself. So if you were to look at Abilene from 10 years ago to today, you might say, it's an okay market, but why are you entering it again? And then we say, you know, look at this data center that's being built. Look at the money that's being rolled in by this governmental entity. There's real investment that's happening now and into the future. And when we're looking at markets, we can't just say, where is this market today and what's gotten it to that point? Because that's great for now, but all of our projects are looking at least nine months in the future. So we've got to consider, you know, where is this market going? I thought that was an interesting example of, you know, money going into the market.
[00:03:32] Speaker B: Absolutely. And there's three things that you said there that I think we will need to kind of dive into a little bit more. One was migration, whether population is growing or contracting. Second is employment drivers. Where are they working? And third, you said a word, tertiary market.
So let's dive into each one of those. First off, the migration. Why is it important to have more people moving into a market than out of a market?
[00:03:56] Speaker C: That's a great question, and it almost answers itself in a sense. But then when you actually look into the numbers, you realize it's so much more important than that. Because when you're looking at a market, obviously you want it to be a growing market. And that means people coming in more so than people leaving. And when that happens, what that means is people are going to need places to live, they're going to need places to shop they're obviously coming for, not obviously coming for work. But, you know, typically People do come for work, or at least when they're coming, you're going to need more jobs in the area. So you'll see all these different factors of the economy directly impacted by this influx of citizens. And on the flip side of that same coin, if you see, you know, people are starting to leave, maybe jobs are better in other places. Maybe the market's just so expensive we're moving out to some tertiary markets. You know, it's really important to consider, is this, you know, a short term thing? Is it directly related to a new regulation that was put through and, you know, is this going to last? Because that certainly plays an impact in our underwriting.
[00:04:53] Speaker B: Absolutely. And kind of break that down to more of an Econ 101 level. When we talk about, or when you talk about migration, I would say probably the most important point of that is supply and demand. Right.
Real estate pricing is purely based on supply and demand. If the demand side decreases, that is people moving out of a certain area, prices are going to fall. Simply put, simple, simple as it's Econ 101, it's not rocket science, it's pretty straightforward. So we want to be involved in markets where people are moving to, when they move to. That means demand is going up. When demand goes up, prices go up. When prices go up, our loan to value goes down. When our loan to value goes down, our risk to our investors decreases. All the while they're earning the same rate of return. So that is of the utmost importance. The second thing that I'd like to go over with you is the drivers you talked about influx of institutional investment or governmental contracts. What are you really referring to with this influx of job growth?
[00:05:57] Speaker C: No doubt. So typically you'll see investment from either the private sector or the public sector. And oftentimes those go hand in hand, one following the other. So with that said, you know, let's say, for example, a loan we just funded out in Kingman, Arizona, goes by KID P1 for our investors out there. There's a great loan in an emerging market, which is Kingman, Arizona. A lot of people say that Kingman's directly tied to Las Vegas and it's directly impacted by the trading routes that typically go right through it.
You know, in a vacuum, Kingman is reliant on other areas.
When that's the case, you know, it's typically tough to trust that market and to say, you know, I believe in it today, but I also believe in it in one year and two year. And I also believe in it if other areas are still struggling.
On the flip side of that, you can see people believe in an area, say Kingman, we think it should be a self sustaining trading center. We don't think it should be relying on one area nearby. We think it should be a hub for Los Angeles to Chicago and really, you know, the west coast of the east coast and down and back. And with that said, decision makers out in Kingman, out in Arizona, have decided that it truly is an important block along the chain of travel out there. And they're investing hundreds of millions of dollars directly into that market. Now, it's public money. And when private investors see that true hard material investment into an area, they'll say, hey, they're making a true effort to make this important key in the infrastructure chain. And when that happens, that's real money. And we're a little bit more comfortable to invest our own real money into this project. And it brings in the private investment. And it really is a snowball effect in the sense of once one person believes, other people feel more comfortable in believing, which I feel like we see in many aspects of society outside of real estate as well.
[00:07:48] Speaker B: Absolutely. And so when you say government is investing in the infrastructure, is this kind of pie in the sky idea that they want to do it or is this actual money being deployed as we speak?
[00:08:00] Speaker C: I mean, those are two very different things. As we all know, you can commit 50 million, but until you actually start building the roads and inputting that infrastructure, it can just be, to your point, a pie in the sky. But for Kingman, there's real money going into the ground. They're built, they're building real interchanges, they're putting in real underground utilities. Tens of millions of dollars are already in the ground out there with tens of millions more projected to be put in the ground. Now, certainly they could stop to your point, but once that money starts flowing, it really wouldn't be a wise investment on their end to, you know, put in 10, 20, 30, $40 million and then just call it a day. Like they're going to finish this project, they're going to see it through. And that kind of goes for anything where, you know, once that money starts flowing, nothing's guaranteed, but it's a great sign that the investments won, that they're going to put a strong effort to see it through fruition. And for example, with the Kingman one, they're even talking about, you know, adding additional dollars to it to expand the airport out there. And really it's becoming a bigger investment than we originally projected it to. Be so.
[00:09:02] Speaker B: Absolutely. And the third thing I wanted to dive into is the word tertiary that you brought up. And you actually just brought up another market type of an emerging market. So we know generally speaking you can have a primary market, a secondary market, a tertiary market and an emerging market. What are the difference differences between those and how does it really relate to risk profile of particular deals?
[00:09:25] Speaker C: Well, you kind of hit all my talking points on the head there. So you start at a primary market and you go all the way through emerging markets. And really the simplest way to look at it is how established is this market? What kind of life cycle is it at in its growth stage? You can look at a city like New York City or Los Angeles, for example. People have lived there for a long time, it's built out. There's really not much land left to even construct on. Every real estate project is either upcycling an old building or demolishing it and building something new. Not that, not to say everything's been thought of, but it kind of seems that way. That's what you could kind of look at as a primary market or, you know, the first tier of markets. You know, it's fully established, there's not too much true upside besides, you know, a value add, renovation and things of that nature. And then as you start going from a secondary to a tertiary to an emerging market, they typically are less established, whether it's because it's just out in the middle of the countryside or let's say maybe it's just a suburb surrounding a primary market that hasn't been developed as much. And so as you go from a primary all the way to an emerging market, it's kind of an inverse of the risk spectrum. So when you're in a primary market, you have, you can, you can say generally the lowest risk investing there, but at the same point you're going to have a capped upside because a lot of that upside has already been tapped into. And then as you go down the chain, your risk will increase. But at the same time, you can also see your returns increase. Now, from a real estate developer standpoint, they certainly are chasing those returns. So they may be a bit more comfortable going into markets like that. But from Ignite's perspective and the investments we offer to all of our investors, we're actually really risk averse.
And so we really don't see any of the upside associated with going into these more tertiary and, you know, emerging markets. So we have to balance. You know, our developers are always eager, always looking for that extra buck but then we need to balance, you know, how can we make their project successful providing financing for it, while more importantly protecting our investors who are the lifeline of this operation.
[00:11:27] Speaker B: Absolutely. And you know, the location is one piece of the underwriting criteria.
I would assume with the different levels of primary, secondary, tertiary and emerging market loan to values change along the way, underwriting standards change along the way to kind of put that risk profile back in balance with the tertiary market compared to a primary market. What are some of the drivers that you utilize to decrease the risk in those tertiary and emerging markets?
[00:11:59] Speaker C: No doubt. I think as the market becomes further along that risk spectrum, going more towards tertiary and emerging, we really need to see a clear exit strategy. We need to see what are you doing in this market and how quickly can you get out of it. Because right now our average loan term is about a year, a little bit over a year, with our typical terms being nine months with an optional nine month extension. So we're built for speed. We're built to get in and out of a project as soon as possible. And as you reduce the strength of a market, you're also reducing your exit strategies in that market. Because as a market's more built out, there's going to be more principal and more capital investors in the market and more options to sell your project whenever you're looking to sell it. As you increase the risk, go into a more tertiary or emerging market, you'll have less of those options. So it's clear exit strategies that much more important. In addition to that, I want to understand, you know, how capable is this borrower and have you actually been in this market before? Because when you're in these tertiary markets, those local connections become that much more important because they're really the ones running the government out there. You know, obviously there are still rules and regulations that apply anywhere, but as the size of where you're at becomes smaller, the fish in the pond can get bigger and more difficult to deal with. If you haven't been out there before for saying, those are a few things that are really important for us when we're underwriting. And obviously there's a lot more factors than that, but those are just two of them.
[00:13:23] Speaker B: Absolutely. So there are ways that you can look at a risk profile and de risk it on a tertiary market to make it just as attractive for a third party investor as a primary market.
[00:13:34] Speaker C: No doubt.
[00:13:35] Speaker B: So although we hear about location, location, location, it's not the only thing that matters. Right. It's one of the key components, but obviously not the only component to it, no doubt.
So that's kind of on the macro level, which markets we're kind of getting involved in, which ones we're looking at. Now, if we want to look at it more on a micro level, if you have two different projects in Las Vegas, for example, why aren't those valued the same? Why aren't all the pieces of land in Las Vegas the same amount?
[00:14:06] Speaker C: That's a great question. And I think it falls into a couple of big buckets, the first of which is you have a market like Las Vegas, it's obviously one market. And when you take a step back and say, this is the United States, Las Vegas is its own market, you can create information demographics on how Las Vegas is performing. But then when you actually get out in the city and look at it, it's massive. And there's multiple submarkets within Las Vegas that really are structured towards different real estate asset classes and can materially impact the valuation of those projects depending on where they're located. Both now and then, as the city continues to grow, will this still be a good spot to be located at? So, for example, let's say you're looking to build a multi family project out here in Las Vegas. Let's say you're looking at two projects, one right on the Strip and the one in South Las Vegas, kind of where it's expanding. There's a few open parcels left that you can purchase and develop on. You might say, hey, you know, those are both in Las Vegas. They both should experience the same momentum, the same lease up, probably pretty similar construction costs. And while that may be true in the sense of, you know, cost to actually build the project, the lease up and land basis, which, you know, at least on the land basis side, is one of your most important, what do you call it, variables when you're looking at a project, they can materially change the investment. When you're looking at a project on the Strip versus North Las Vegas, as I said, you know, that cost of land can be five to 10 times more expensive for the same project. And when you're projecting the same rents out, that land basis can be the make or break deal in a project. And in that same capacity, do people want to live on the Strip or people preferring to be a little bit off of it where they're closer to potentially other jobs and things of that nature. So those are very important things to consider.
[00:15:50] Speaker B: Absolutely. So really the key driver there to the value of the land is what is that property going to derive into in cash? Flow when it's all said and done.
[00:15:58] Speaker C: Exactly.
[00:15:59] Speaker B: Will the property be worth more on the strip compared to somewhere else?
[00:16:03] Speaker C: Exactly.
[00:16:04] Speaker B: So that's obviously a very key point to look at and how some locations, although for the same asset class in the same market, may be materially different within submarkets and within, no doubt locations within a submarket.
When you look at submarkets, do you look at the submarket itself or do you look at the specific intersection that it's on and access to freeways? If you're looking at the industrial side or maybe school districts? If you're looking at the residential side, what are some of the other drivers that are really behind the function of location on a micro level?
[00:16:45] Speaker C: I mean, that's a great question. And you know, to answer your first question, I mean, it's obviously important to consider, consider the submarket. But let's say sub market aside, looking at just where this project is purely located, it's exactly as you said. I mean, it can be as simple as what side of the street you're on. Let's say, for example, we're talking about a quick service retailer for a Dutch Bros. Coffee, for example.
The side of the street really does matter because when you're driving to work in the mornings, do you want to do a whole U turn to get your morning coffee and a bagel? I mean, me personally, I would, and I don't really want to stop in general, but if I do, I want to be able to pull off on the right side, go through the drive through and get right back on the road and keep going.
And you know, if you're on the wrong side of the road from where commuters are typically commuting in from, that can be a make or break deal. You can have two coffee shops across the road from each other and one can always be packed out, have a great cash flow, and the other one can see just a trickle. And so that very much matters. And in that same vein, what's around it, you know, you could have, you could both be, you could have two projects in the same submarket, and both theoretically should experience similar volume and similar traction in the submarket. But let's say one is in front of a neighborhood that needs a little bit of capital investment, needs to have some shutters fixed and some blinds, you know, put back together versus one that's in front of a new neighborhood. You know, it's in the same submarket, but it's just the view right next to you that can have a material impact as well as We've seen on some of our projects, for example, out in Phoenix, one of our apartment complexes is kind of right in front of a neighborhood that's being needs to be developed a little bit more. And our borrower has seen a little bit of trouble marketing that asset because of it. Now, we don't think it's going to be a true issue for our investors, but it's definitely something that's important to consider because you know it's real when you come around to sell these assets.
[00:18:34] Speaker B: Absolutely. And you said one of the key components there is what's around it. Sometimes what's around it will dictate what you can build there through the permitting process or the entitlement process. How does the permitting process and the entitlement process add on or take away risk?
[00:18:53] Speaker C: I mean it, it is the definition of risk in a sense, because if, if you have a project, and let's say for example, you're trying to build a self storage facility and you have a plot of land that's perfect for it, it's right, right on an intersection, right near a lot of neighborhoods, you're ready to go. You've heard, you've heard the local municipality is willing to give you the permits if you're able to hit a few of their hurdles. So you go ahead and buy the land now, anticipating those permits will go through, and then you actually start talking with them. And the local HOA right next door says, you know, we don't like self storage. We think it's ugly. Your big yellow signs, you know, you know, kick rocks and you're dead in the water unless you can sell those people on why they should be willing to allow you to build there. And now if you come to them and you know you're willing to compromise, I'll put down the big yellow sign, I'll paint it nice stucco and make it look kind of similar to the architecture in the area. And they might be willing to. That's as simple as getting a permit or not. But that make or breaks your ability to even construct the project and therefore have a successful project.
[00:19:56] Speaker B: So although you have a perfect location for this idea, in your case a self storage facility, the location matters more than just physical location, but the entitlement side as well. No doubt that location, whether it's on a different side of the street, different sub market, that use will be permitted. However, maybe not on that specific plot of land. How many times do you see borrowers bring us down deals that are a site unentitled and not easily entitled Bull, for lack of a better word.
[00:20:31] Speaker C: Well, I would say they bring those deals to us fairly often. Yes, but do we actually entertain them or move forward on them in any material capacity? Typically not, because it, I mean, to our point, it can be a serious hindrance to the project.
And we've actually had a few projects where the borrower ran into this project on our loan and thankfully they've been able to rectify it in a reasonable amount of time and move forward with the construction. And you know, to this point it's a great project and you know, we always expect to experience bumps in the road, but let's say they had a delay twice as long as they did. You know, their carry costs would have been exponential and a lot of their profit would be absorbed by that time you're spending fixing the permitting side of it and getting the project even able to construct upon.
[00:21:18] Speaker B: So we spent majority of our time thus far talking about the macro and micro location, why it matters, and the drivers that ignite funding looks at when evaluating real estate. Now let's kind of turn that on side a little bit and say from the investor standpoint, what should they be looking at, what should they be concerned with and why should it matter to them specifically?
[00:21:40] Speaker C: I think from a very high level, I know everybody preaches this in the investment sphere, but diversification is essential. And when you're looking at markets, diversification across markets is also essential.
You know, typically when you're looking to diversify, you're looking to spread yourself across multiple different investments to mitigate the risk of any one of them failing. And when you're looking at markets, it's the same exact idea. You don't want to be caught where, let's say the tide's falling on one market. You don't want all of your ships to go with it, you just want maybe one of them. You know, not that it's ever good to have any losses, but when you're investing, there's always inherent risk and you can always work to mitigate that. So it's very important to consider that. Another thing to look at is while, you know, we're looking at markets and diversifying across them, when you do that, you know, naturally you should be able to also diversify across developers, right? And you know, when you're looking at, hey, I want to be in five or six different markets instead of one, typically the same developer is not going to be in all five or six of those different markets. So to give you that natural ability to kind of spread yourself, not only across multiple different markets, but across multiple different developers and kind of mitigate your risk even further in that capacity for investors. You know, those are some of the simple things they can look at. If you're looking to learn more about markets in general, it can kind of be drinking kind of. It can kind of be like drinking out of a fire hydrant. Like, where do I start? What do I look at first? And there really is no right answer there. I would say the simplest and the most straightforward way that I've been working on going about it is first understand where we are. You know, learn a little bit about the United States real estate market as a whole. And what are, what are prevailing interest rates? Have they been going up or down? What does the overall market look like?
And then you can say, okay, now that I know a little bit about what population is, what do you expect a normal unemployment rate to be?
All these different kinds of things. And you can say, well, I wanted to learn a little bit more about Las Vegas recently or Phoenix, Arizona recently. And you can go and really dig into one market and say, okay, how does this compare to the United States? And then you can learn about another market, compare each other against the states. So it's, it's a lot to handle, but really you just have to take it a bite at a time.
[00:23:56] Speaker B: Absolutely. And it's really the comparability that matters. Right. It's one thing to say Las Vegas is going to grow at 4% over the next decade.
[00:24:03] Speaker C: Exactly.
[00:24:04] Speaker B: Is that good or bad?
[00:24:05] Speaker C: What does that mean?
[00:24:05] Speaker B: What does it mean? Well, let's take a look at what the US Is going to do. Is that better or worse than the U.S. and then if it's better or worse, let's compare it to the Southwest part of the U.S. exactly. All the comparable markets. How does it stack up? And that's how you really get a good gauge of where things are. Not necessarily based off the gross numbers, but how it is that relative to the overall market and to the overall submarket in which you're looking at. You talked about something that I wish we talked a little bit more about, and that's the diversification. You know, it does matter to get involved with different borrowers. It does matter to get involved with different locations, different subtypes, different project life cycles.
All of that absolutely matters. And the diversification not only comes from the investor, as you just spoke to, but the diversification also should come from ignite funding as a whole, 100%. We shouldn't have all of our loans originated in one location, it should be spread out. How do you look at where the tipping point is? Where, where we're too concentrated in one area that we need to either divest out of or just start putting more money towards other areas to kind of dilute that market share.
[00:25:20] Speaker C: I mean, that's a great question and I think it's something that we're always keeping our thumb on the pulse with. Right now our goal is to keep every market at a maximum of around 20% of our loan portfolio. Now obviously there's more than five locations in the United States, but we're talking states here, we're talking Nevada, Phoenix, Utah. And when you take a step back and we're really west of the Mississippi primarily as where we lend in, you know that 20% can become reasonable. And we don't really have any states right now that are at that threshold outside of Nevada. I mean, it's our backyard. We know this area theoretically better than most other markets because we live here, we work here every day. You've been here for almost 20 years now. So it's understandable that Nevada is a little bit heavier weighted than some of our other states. But we certainly have those thresholds. And when we start to reach what you could call a tipping point, when we start to get near that 20% mark, we really start battening down the hatches per se. Not that we didn't beforehand, but now the deal has to truly be a home run deal. There cannot be any, any issues with it. And in addition, the borrower has to be strong, location has to be strong within that micro market. Even though we're talking about the macro right now, those are a few of the things we look at now. With that said, if the loan stands on its own and it's a great deal, we're always willing to talk to the borrower and see how we can make it fit. Because at the end of the day, we're here to make good loans and not just balance a portfolio. You know, that's multiple different things to consider there.
[00:26:50] Speaker B: Right. So, so kind of to digest a little bit of what you said. These aren't hard and fast numbers. The 20% rule doesn't mean you can't go to 20 and a half percent or 21 or 22 because it's a really good deal. These are just kind of thresholds that you look at in order to make sure that you're kind of in balance. If there is a deal that would put you over the tipping point to make sure it's better than most if it is a home run deal, it's a no brainer, then you'll, you'll get it done. But you don't have strict mandatory, arbitrary requirements as banks do with when it comes to location, product type, borrower or any of that.
So since it's more of a feel, more of an art than a science when it comes to diversification and that 20% rule for Ignite, how should investors look at that as well? Should they follow those same rules or should it be more of an art than a science when it comes to what specific percentage they should get involved?
[00:27:48] Speaker C: I mean, that's the thing that I love about Ignite funding is it's an art and a science. But at the same point we're flexible and we can move where the market shifts to and we can kind of, you know, always try and stay ahead of these trends so we don't get caught with bad loans. Now, from an investor's perspective, when they're saying, hey, I don't really know much about real estate, I've, I own a house, I've done some research, but I'm not a professional in the field. I don't come into the office every day and do this for eight, nine hours a day. How do I balance my portfolio and keep it safe? I would say the first thing is obviously understand what you're investing in, do a little bit of your own research and understand, you know, general things about the states and the markets you're investing in. Now if you don't have the time to do that, that's understandable as well. And I would say that the simplest way to do it is just don't put all your eggs in one basket. If you've invested out in Utah already, consider why you'd be investing in Utah again. And if the opportunity cost of, you know, say, let's invest in Colorado or Nevada or any of the number of different states we're involved in Texas, consider what the opportunity cost would be of, you know, just moving into a different state on a similar risk loan just to spread out your diversification a little bit more. And now if you say, hey, the opportunity cost is high, I'd be giving up something to not invest in this Colorado deal or Utah deal and furthering my bet on this market, then by all means, you know, that's your choice. And at the end of the day, if you think it makes the most sense, you're the investor, you know, that's your choice. But it's always important to consider, you know, the opportunity cost and what would I be giving up to further my investment in this market?
[00:29:25] Speaker B: Absolutely. So as we kind of wrap things up here, are there any key points that you want to really address and hit home with investors, Investors, potential investors, existing investors out there? When it comes to location of real estate and how it affects valuation 100%.
[00:29:38] Speaker C: I would say always look at the population of a, of a city market or wherever you're investing in. At the end of the day, the population, whether it's decreasing, increasing, and then if you have a little bit of time, see what may be causing that. That typically is, if not the number one, one of the top indicators as to the health of a market. If people are coming in, it's probably doing well. If people are leaving, there may be some red flags we need to dig into further. Outside of that, I would certainly look at economic investment in the area. Are big firms moving there? Are there large construction projects, building data centers, industrial centers, new manufacturing plants, things of that nature. Then outside of that, I would just do a little bit of research, you know, Google the area you're investing in, see if there's any headlines, things of that nature. There's always great reports put out by local brokers. So you can read a little bit about the market and see from somebody who buys and sells for a living, what do they see in the market. Those are some of the quick hits that I'd put any and all investors onto as those are some of the first things that I look at and Ignite funding looks at when we're evaluating any loan.
[00:30:45] Speaker B: Absolutely. So not only from the Ignite funding side, who operates as the middleman in the transaction.
[00:30:50] Speaker C: Correct.
[00:30:51] Speaker B: Joining borrowers who are looking for money and investors who have money, pairing them up and being the broker in that transaction, that's stuff we look at, but also the where the rubber meets the road, so to speak. It's the investors hard earned money that they are looking to deploy. They should also look into that information.
There's nobody out there that's going to look into their portfolio as much as they do. We operate as that third party broker, putting the two parties together, but investors should look at that information as well.
The first thing that you just talked about there is the. The main market driver is employment or excuse me, is population migration. You know, as one of the greatest investors of all time, Warren Buffett, as he said many times before, a rising tide lifts all boats.
And so we may not be with our bet, the best boat, I. E. The best borrower, but if the rising tide, I. E. The market is moving up, we'll be all right. So that's why it's the number one component to look at anytime you get involved in market. So whether that's Ignite funding doing that research or an investor doing the research, you should always start and end with migration. Where's it coming from? Where is it going to? I appreciate you listening to this last episode latest episode of Deeds in the Desert. Make sure to like subscribe and share our link. I think this information will be well served for many people out there, so.
[00:32:17] Speaker C: Please help us out and pass it along.
[00:32:19] Speaker B: Thanks for joining Jayden and thank you for listening.
[00:32:23] Speaker A: Thanks for joining us this week on Deeds in the Desert, where short term investments meet long term investors. We hope you enjoyed the content so much that you share it with all your friends. Who doesn't like learning about passive fixed income, right?
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[00:32:59] Speaker C: It.
