When an experienced developer saw signs of service instability in his relationship lender, a friend referred him to Eric Shoemaker at Freedom Financial Funds, LLC. Shoemaker immediately determined that the developer had a strong track record and was a good candidate for Freedom financing. Further, due to his knowledge of the Pacific Northwest, Shoemaker knew that the Tri-Cities market is one of the fastest-growing communities in Washington, with a Metropolitan Statistical Area (MSA) of approximately 325,000 residents.
Shoemaker and the Freedom team responded quickly and structured a construction loan to finance an 88-unit project comprised of 22, 4-plex buildings in a traditional garden apartment setting. The loan provides leverage of 63% LTC, 58% LTV and an expected debt yield of 9.1%.
In a fast-changing world, Freedom was able to provide swift financing when the developer’s existing lender faltered. The recourse loan is well-structured for the client’s needs while providing the security that Freedom investors have come to expect from a team that has originated nearly $2 billion in loans — without a single foreclosure on its collateral.