Matching Money with Opportunity
At Freedom Financial Funds, we are experts at creating real estate secured loans that deliver solutions to our borrowers, while providing superior risk-adjusted returns to our investors.
Our seasoned team has more than 150 years of combined experience. Over the past 12 years, we have originated in excess of 400 loans totaling over $1.5 billion. Our average annualized net return to investors was nearly 9% — without a single loss.
These consistent results are the product of The Freedom Method.
We See the Value in People.
We believe that everything comes down to people. Real estate does not create its own value; people create, add to, or diminish its value. When we evaluate a potential transaction, we look first to the people to make sure they are experts in the proposed project and the market area and can back their claims with a demonstrated record of success.
How’s the Credit?
We seek out credit-worthy, bankable borrowers with a track record of integrity. Credit is not necessarily a high FICO score; it is the record of what someone does when their luck is down, the tide is against them, or the economy is in overall decline. We dig into a borrower’s past, and we determine if a borrower or sponsor does what they say, say what they mean and does everything possible to make good on a promise.
We Look at the Real Estate.
Freedom offers a premium alternative to local and regional banks for value-add bridge and construction financing of multi-family residential, industrial, office and retail properties in the Western United States. Freedom also provides Build-to-Suit financing across the continental U.S.
Freedom sticks to property types it understands and can value. Its principals have financed thousands of transactions, and they know what works and what does not. Freedom typically funds projects that cost $3 to $12 million and will not exceed 65% LTV in its Fund. However, Freedom, through partners, can and does provide as much as 100% of cost financing with the right circumstances.
We Structure the Loan for the Business Plan.
Freedom matches its loan structure to the business plan, not the other way around. A solid business plan will create value and ensure that there are multiple pathways to success. Freedom structures its loans to make certain the loan will augment the plan, not hinder it. Freedom balances the needs of the borrower, while earning an appropriate risk-adjusted rate of return for its investors.
We Make Sure There is a Plan A and a Plan B to Get Repaid.
All business plans are presented with a successful Plan A. At Freedom, we look for plans from borrowers that have thought through a Plan B and even a Plan C. We structure our loans to ensure we have multiple ways to be repaid. Most loans that end in loss started without multiple viable repayment plans in place when originated.
At Freedom, we use the above method of loan evaluation to create speed and efficiency. Like our borrowers, we are entrepreneurial, and because we have experienced, accessible decision makers, we are nimble and can close transactions in 10 to 15 business days. This allows borrowers to capitalize on lucrative opportunities, while giving our investors access to an investment risk profile that would normally only be available at a much lower yield.
We’re looking for innovation, hard work and promise, and have a strict criteria for selecting our next partners. While we only invest in a handful of companies a year, it means we can focus solely on those who we believe really have the founders, team and drive to succeed.