Experts at finding private lending solutions

Investors with too many doors sometimes do themselves a disservice when they try expanding their portfolios because lenders typically only look at their income, but not Freedom Capital.

The mortgage brokerage, which specializes in private, alternative and commercial deals, draws upon relationships with lenders to focus on investors’ equity, meaning that having more doors to their name is a boon, not a detriment.

“Often, investors go to banks and they don’t get approved, but we don’t get approvals based on income, we get them based on equity, so if they pull equity out of their existing investments, we can help get them their next door,” said Pip Dhaliwal, founder and CEO of Freedom Capital. “Investors can have unlimited doors in their portfolios to get financing.”

Dhaliwal noted that investors often use Freedom Capital to secure private financing for the purpose of renovating a property to increase its value, and then refinance it through a chartered bank.

“We’re quick and easy money, if they’re looking for something with no hassle,” continued Dhaliwal. “After one year, they can reopen and there’s no penalty for early payouts. If they renovate the property, they pay higher interest, but they make that money back in their net profit when they flip it.”

On first mortgages, Freedom Capital secures rates starting around 5%, and 10% for second mortgages, while it can lock in a 7% rate for land deals. Dhaliwal added that real estate investors aren’t the only clients Freedom Capital services.

“Entrepreneurs and other self-employed people typically don’t qualify on a lot of commercial and residential files, and I started Freedom Capital because I saw a huge need in the market,” she said. “Most brokers try to do every kind of business, like conventional with banks in addition to private, whereas our team only does private and we leverage our excellent relationships with lenders because we give them so much business. Our sole purpose is to provide solutions for people who aren’t getting approved at banks.”

In addition to finding out-of-luck borrowers solutions, Freedom Capital, which operates in British Columbia, Alberta and Ontario, prides itself on quick turnaround times, which seldom exceed 48 hours. Regular files can close in as quickly as a week and a half, says Dhaliwal.

“Our rates and the speed with which we get approvals is what sets us apart in the marketplace. One of the reasons lenders trust us is because we look at everything and only submit complete files. Most brokers are transactional, but we look at the entire financial picture, determine what you need and find you solutions.”

Neil Sharma

Neil Sharma is the Editor-In-Chief of Canadian Real Estate Wealth and Real Estate Professional. As a journalist, he has covered Canada’s housing market for the Toronto Star, Toronto Sun, National Post, and other publications, specializing in everything from market trends to mortgage and investment advice. He can be reached at neil@crewmedia.ca.