How To Participate in Our Debt Fund

Investing into a Debt Fund is how our private money lenders are earning higher returns by deploying their funds all year round. Additionally, the due diligence cycle is only one time instead of 2-3 times a year having to review and sign paperwork each time.

What is a Debt Fund? A debt fund is a pool of money that is allocated for a specific purpose, such as lending on real estate acquisitions for the purpose of rehabbing and reselling the asset for a profit. Investors within the fund, own shares of the fund based on their investment amount allowing them to participate in a larger investment opportunity than they could otherwise do themselves.

Here are the highlights:

  1. Rates of returns are similar to private lending and secured by the properties the fund has purchased
  2. Each fund has a term set (typically a minimum of 3 years) allowing your money to stay at work earning you a higher effective interest rate than what you can earn as a private lender where there are periods of time in which your funds are not invested in a deal and earning interest
  3. Minimum Investment changes depending on the fund, but it’s likely that most will have a minimum of $50K
  4. Resources of funds acceptable are cash, entities, retirement accounts, whole life insurance polices and more!

Advantages to Investing in a Debt Fund:

  • Higher Effective Returns: In a Debt Fund, your money is working for you all year round so you’re getting a higher effective return than you would as a private money lender.
  • Security: The Debt Fund will be secured by the assets it holds, the title attorney will create the paperwork for each property as it’s purchased.
  • Liquidity: Debt Fund Investors commit to 3-5 years for most investments with the opportunity to renew if you’re not ready to be cashed out.
  • Diversity: Many investors who already invest as private lenders and syndications like the ability to diversify by being in a debt fund. Not only is this a different type of investment but a debt fund provides diversification inside the investment because of the multiple projects that the fund owns providing the investors greater security.
  • Redeployment: With Freedom Capital Investments, as soon as you receive your return, we are preparing the next investment opportunity in the case you want to redeploy your funds.
  • Higher Passive Income Rating: In a Debt Fund you are not required to continually review funding packets, wire money to the title company, sign payoff statements and releases. The managers of the Debt Fund do this for you so you can earn a higher effective return than being a private money lender AND with a lot less work.

Disadvantages to Investing in a Debt Fund:

  • Term Length: Every fund will have different timelines, many debt funds being 3-5 years. If you prefer lower effective returns for the trade of being more liquid than this term length would be a disadvantage.
  • Less Control: As an investor in a debt fund, you won’t be receiving the fund packets for approval on each deal so if you like the idea of having more control over every property you lend on, this would be a disadvantage.

If you are looking to protect your capital, enjoy passive income, and grow your wealth over time – you are in the right place. We look forward to helping you build passive income so you can live life on your own terms.

Freedom Capital Investments is free and open to everyone. Join thousands of people just like you that are discovering the amazing benefits of investing passively in real estate.