Bankable Projects & People
Our borrowers are seasoned professionals with established track records, strong financials and realistic business plans. Such individuals might otherwise obtain a loan from a local or regional bank, but they choose Freedom because we make sure to understand the specifics of each requirement, provide unparalleled structural creativity and offer a certainty of execution that is unsurpassed within our industry.
While our methods for underwriting risk are similar to those of other financial institutions, we generate superior results. What differentiates us is our aim of avoiding enforcement against collateral. Loans never exceed 65% LTV on a net basis (less 5 - 7% selling costs) and must always be supported by multiple sources of repayment. We use net value because real estate seldom sells without a broker.
Philosophy of Safety
We underwrite differently — and more carefully — than our competitors. Our track record of more than a decade without a single loss demonstrates our elevated standard of care. We believe return of capital must come before return on capital.
Our seven-person investment committee is autonomous, independent and approves substantially every loan. Committee members are seasoned investors who together with management represent more than $28 million of Fund capital.
Our four-person management team is comprised of former bank and fund executives who collectively possess more than 150 years of experience. Over the last six economic cycles, we have demonstrated a track record of value creation, and we have proven that tough markets are opportunities for the well-prepared.
Over the last decade, we have originated more than 400 loans totaling over $1.5 billion. Our average annualized net return to investors exceeds 8% — without a single loss.
Our fee structure ties our earnings to fund performance. Fund management is incentivized to make quality investments, not simply originate loans to generate fees.