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Real Estate Lending as an Alternative to Bonds
On this episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Michael Klein, CEO of Freedom Financial Funds, a real estate lending fund.
Freedom Financial focuses on lending to real estate professionals who add value to real estate projects on the west coast of the United States. For example, some borrowers are professionals who flip vacant office buildings into apartment complexes. Over the past 14 years, Freedom Financial has originated over 400 loans totaling over $2 billion and prioritizes their investors.
Chris and Michael discuss how Freedom Financial has prioritized their investors during challenging times. Michael recounts March of 2020, when the government shut the economy down and people began to panic. They had $16 million of capital waiting to come into the fund that disappeared. Luckily, Freedom Financial has what are called “gate provisions” (the ability to prevent investors from leaving the fund to protect people who want to stay). Five weeks later, they lifted the gate and did not lose any investors. Michael says he is thankful they were able to minimize fear by implementing the gate because they protected investors from making emotionally reactive decisions that could have caused them to lose money.
Michael credits his experience in the banking industry for teaching him some core principles that have guided Freedom Financial Funds’ success: to focus on people, their credit, and structure loans to match business plans instead of structuring business plans around loans. Chris agrees Freedom Financial Funds has been a phenomenal partner to Morton Wealth in supporting their investors’ portfolios while generating a consistent income stream.
Disclosure:
Information presented herein is for discussion and illustrative purposes only.
The views and opinions expressed by the speakers are as of the date of the recording and do not necessarily represent the views and opinions of Morton Wealth
These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice.
You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.
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By Chris GaleskiOn this episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Michael Klein, CEO of Freedom Financial Funds, a real estate lending fund.
Freedom Financial focuses on lending to real estate professionals who add value to real estate projects on the west coast of the United States. For example, some borrowers are professionals who flip vacant office buildings into apartment complexes. Over the past 14 years, Freedom Financial has originated over 400 loans totaling over $2 billion and prioritizes their investors.
Chris and Michael discuss how Freedom Financial has prioritized their investors during challenging times. Michael recounts March of 2020, when the government shut the economy down and people began to panic. They had $16 million of capital waiting to come into the fund that disappeared. Luckily, Freedom Financial has what are called “gate provisions” (the ability to prevent investors from leaving the fund to protect people who want to stay). Five weeks later, they lifted the gate and did not lose any investors. Michael says he is thankful they were able to minimize fear by implementing the gate because they protected investors from making emotionally reactive decisions that could have caused them to lose money.
Michael credits his experience in the banking industry for teaching him some core principles that have guided Freedom Financial Funds’ success: to focus on people, their credit, and structure loans to match business plans instead of structuring business plans around loans. Chris agrees Freedom Financial Funds has been a phenomenal partner to Morton Wealth in supporting their investors’ portfolios while generating a consistent income stream.
Disclosure:
Information presented herein is for discussion and illustrative purposes only.
The views and opinions expressed by the speakers are as of the date of the recording and do not necessarily represent the views and opinions of Morton Wealth
These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice.
You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.