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Baltimore

Financial Freedom Investments LLC

About Documents
33%
$3,300 Funded
$10,000 Target
16 days Time Left
5 Investors
$10,000 Min. Raise
$50,000 Max. Raise
36 mo. Term Length
5.0% Interest Rate
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Overview

Financial Freedom Investments LLC is an investment company with a diverse portfolio of assets within real estate. The company leverages the fix and flip strategy as well as the buy and hold strategy. The direct customers of the business are homeowners and tenants, who buy or rent property that is owned by the company. The indirect customers are investors who benefit from the profits the company brings in on an annual basis.

To stay afloat during COVID-19, we are raising $50,000. There will be a 6-month interest-only period at 3.75%, followed by a 30-month fully amortizing period at a 5.00% interest rate. The campaign ends on July 27, 2020 at 11:59pm.

 

The Project

The funds will be split, with a percentage being held in reserve, to ensure that currently owned properties will have the mortgage paid for during this down time where certain tenants are affected by not being able to work until their jobs open back up. The rest of the money will be used in the acquisition of property and materials for new projects. Properties are purchased only when they can be bought at a fraction of their true value. It is typical for properties to be purchased for less than half of what they are worth after they are fixed up. For example, a property purchased for $36,000 could be worth $155,000 after fixing it up.

Unfortunately this Pandemic is creating a lot of turmoil for people everywhere, but in every crisis there is opportunity. And similar to the crash in 2007-2009, there will be opportunities to acquire great properties at reduced prices for the next couple of years. Those with the cash and the expertise to take that on will stand to benefit immensely. Being able to weather the storm is only part of this campaign. The other part is taking advantage of the tailwind to sail farther than previously possible.

 

 

Business

History

The business was created as a method to teach and emphasize the importance of investing, especially in alternative investments, such as real estate. The inspiration behind the formation of the company, and as evident in the naming of the company, was to create a replicable business model that would allow for the greater things in life to be enjoyed, such as time spent with family, traveling, education, and more.

 

Future

Within the next year, the plan is to acquire more property using the buy, rehab, rent, refinance and repeat method. Within the next 3 years, the company will transition to multi-family residential units, and then on to multi-family commercial units, such as small apartment complexes.

One of the long term goals of the business is to use the information and lessons learned to spread knowledge on ownership, business, and investing. Once the company increases its passive income (rentals) to surpass the active investing (fix and flips), a training and mentorship program will be created to teach others how to achieve the same success.

 

 

Community Impact

This campaign is one that has the opportunity to benefit an entire community. From the time a property is purchased to the time a property is sold or rented, there are about 20 different families and businesses that will benefit from that one property.

Those who benefit when a property is purchased: realtor, appraiser, inspector, title company, lender, and seller

Those who benefit when a property is rehabbed: demo crew, roof crew, siding crew, electrician, plumber, HVAC installer, framing crew, drywall crew, painters, flooring installers, cabinet makers, countertop installers, and appliance makers/resellers

Those who benefit when a property is sold or rented: realtor, appraiser, inspector, title company, lender, stager, new homeowner, and property management company

As you can see, this is a business that keeps a community going and growing. Each group mentioned above takes the money they received and spends it in their local community. In addition, real estate is a very profitable and secure business to be in. For anyone familiar with Maslow's hierarchy of needs, you may recall that shelter is one of the foundational pieces of the theory. As with all economies and all industries, real estate has its ups and downs, but for as long as there are people, there will be a need for people to have shelter, whether they are renting or buying. Investing in this campaign is more than just a great opportunity to make money, it is a phenomenal opportunity to change lives.

 

Fast Facts

  • Giving back to the community is one of our core values
  • Baltimore-grown business that invests in Baltimore and hires local workers
  • The approach taken when investing in real estate focuses on sustainability, longevity, and security over making quick cash right now
  • Eventually plans to acquire vacation rentals in different parts of the world
  • One ultimate goal is to create an education platform for people to learn the ins and outs of real estate investing and to provide mentorship to new investors

 

About the Owner

Aekeam is from Baltimore, Maryland and studied business in college. Over the last 7 years, he has invested primarily in real estate, and as part of a broader market strategy, he has invested in and followed stocks as well. He became interested in, and started learning, real estate at the age of 23, and has found much success with it since then. He mentors other investors and teaches them how to invest in real estate by sharing his knowledge and lessons learned over the years. He has seen the impact that mentors can have firsthand because when he got started in real estate, he was fortunate enough to find two mentors that walked him through their business model step by step. He aims to fill that role for others as he continues to climb to the top.

Deal Summary

Summary

  Issuer

  Financial Freedom Investments LLC

  Security Type

  Secured loan

  Loan Purpose

  Working capital during the COVID-19 pandemic

  Offering Amount

  $10,000 - $50,000

  Interest Rate

  3.75% for the interest only period, followed by
  5.00% for the fully-amortizing period

  Payments

  Monthly, disbursed to investors quarterly

  Maturity

  6 months interest-only +
  30 months fully-amortizing

  Personal Guaranty  

  Aekeam Awad

  Security Interest

  Blanket lien on assets of company

 

Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Financial Freedom Investments LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials

 Investment Amount   One-Time Fee 

 Potential Quarterly

 Return: Interest-Only Period* 

 Potential Quarterly

 Return: Amortization Period* 

 Potential Total Repayment* 
 $100  $2.85  $0.93  $10.66  $108.46
 $500  $14.25  $4.68  $53.29  $542.32
 $1,000  $28.50  $9.37  $106.59  $1,084.63
 $5,000  $37.25  $46.87  $532.94  $5,423.15

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by a an amortization period. There are no prepayment penalties and Financial Freedom Investments LLC may pay down their loan early, which may impact your earnings potential. Please note: returns are not guaranteed and investors could lose some or all of their investment.

Financial Freedom Investments LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.

 

How Honeycomb is Compensated

Honeycomb charges Financial Freedom Investments LLC a $100 posting fee and a 6.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

Like what you see?  Check out our other campaigns here

View our
Offering Documents

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