How it works
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This lists the steps involved and the terms of the Equity Share Agreement.
The actual terms are set forth in detail in the Agreement.
1. The Purchaser
provides the equity
needed to purchase
the Property and
pays closing costs.
The Purchaser is
responsible for
obtaining the first
mortgage. The
mortgage terms must
be acceptable to
The
American Freedom Fund, and cannot
include any negative
amortization.
2.
The
American Freedom Fund buys a
percentage
interest in the
Property from the
Purchaser by paying
the Purchaser the
equity which the
Purchaser used to
purchase the
Property (but
limited to 20% of
the Purchaser's
purchase price for
the Property). The
Property is held in
a land trust owned
by the Investor and
the Purchaser.
3. The parties will
open a joint bank
account, the rent
will be deposited in
that account, and
Purchaser uses the
account to pay the
mortgage, taxes,
association fees,
insurance,
maintenance, etc.
4. Purchaser is
responsible for
maintaining the
Property, although
for a period of time
that obligation is
covered by the terms
of the master lease
if applicable.
5. During the term,
Purchaser cannot
sell or pledge his
interest in the land
trust or the
Property or
refinance the
mortgage without
The
American Freedom Funds prior
consent.
6. The term is
expected to be at
least 3 years. The
parties will discuss
what to do with the
Property 6 months before
the 3 years are up, at
which time they could
decide to list the
Property for sale, one
could buy the other out,
or they could continue
the arrangement.
The
American Freedom Fund chooses the
broker.
7. At any time
after 3 years,
either party can
require a sale even
if the other party
does not want to
sell.
8. At any time
after 3 years,
either party may
purchase the
interest of the
other based on an
appraisal at that
time.
9. On a sale (assuming no prior default by Purchaser), proceeds are applied to pay:
-
- The mortgage,
-
- any expenses of sale (including prorations and trustee fees to terminate the land trust),
-
- Return of The American Freedom Fund initial investment,
-
- the balance is split 50-50 to each party.
Unprecedented Opportunity
For people who
understand equity and are
willing to use it wisely, equity
is isn't just "paper" money. It
is a launching pad, a
first-class ticket to a
financial freedom, and a
lifestyle of which others only
dream.
Unfortunately, most investors
don't always realize how wealthy
and powerful they can become
with the use of equity. They are
sitting on literally billions
of dollars of untapped equity,
which, if harnessed, would
confer tremendous investing
power on people who historically
have been overlooked by the
investment community.
The AFF mission is to awaken
this "sleeping giant" to its
power and potential as an
investment group. Our passion is
to help middle America gain
access to the same wealth,
financial security, and
lifestyle choices that the
wealthy class has enjoyed for
decades.
Just Follow The Steps Below and Begin Realizing The American Dream with The American Freedom Fund
1. Select Properties2. Get Approval
3. Close The Deal