Frequently Asked
Questions

ROI is the total return on your investment over the whole project — profit divided by the amount you put in, regardless of how long the project took. Equity Yield annualizes that number: it spreads the total ROI evenly across the projected hold, making it the closest thing to an intuitive "average annual return." IRR is also an annual rate, but it additionally accounts for the time value of money and the exact timing of every cash flow — a dollar returned sooner counts for more, so IRR is the right tool for comparing projects of different durations. For a single-exit development deal the three tell one story from different angles: ROI is the size of the win, Equity Yield is the simple per-year pace, and IRR is the compounding-aware rate. Every Freehold Crowd project page publishes these metrics, computed at your own unit price.

Freehold Crowd is open to verified accredited investors under SEC Regulation D. US investors confirm accreditation through VerifyInvestor.com using either an income test ($200k single / $300k joint for the last two years), a net-worth test ($1M excluding primary residence), or a qualifying professional license. Additionally, non-US persons may invest, if allowed by their local laws — identity verification is completed by uploading a government-issued ID for review by our team. If you have an alternative existing accredited-investor certification, just contact us to let us know — we will be happy to help. Once verified, you can browse live projects, review financial summaries, and commit equity directly from your dashboard.

Yes — non-US persons may invest in an offering, provided the investment is permitted by the laws of your home jurisdiction, and that you are physically outside of the US, and not considered a US person by US tax law. As a non-US investor, you verify your identity by uploading a government-issued ID, which our team reviews. Offerings to non-US persons are made in reliance on Regulation S and/or other available exemptions. As always, consult your local tax and legal advisers about how a US investment is treated where you live.

Freehold focuses on luxury residential development — primarily single-family and small multi-family for-sale projects. Broader real estate asset classes include multifamily rentals, office, industrial, retail, hospitality, and specialty assets like data centers or self-storage. Each class has a distinct risk, return, and liquidity profile. Ground-up residential development typically targets higher absolute returns than stabilized rental product, with shorter holding periods and binary exit risk tied to the construction and sale window.

Minimum amounts vary by project, but they often can be as low as $1,000 USD. Each project page shows its minimum alongside the investment form.

A pledge reserves your allocation. A deposit of 15% of your pledge is due within 48 business hours (weekends don’t burn the clock) — if it isn’t received in time, the pledge is simply released. When the raise reaches its target — or earlier, if the manager elects to call capital — the balance is due within another 48 business hours. If some investors don’t complete their funding, the shortfall may be reopened to the remaining members as a second round. Funds you have paid in earn a courtesy credit until funding closes, and at the close your pledge converts into units at your confirmed price.

Money you send in before a raise closes isn’t idle. From the day your funds are received until funding closes, they accrue a courtesy credit at a simple annual rate set per project and stated in your agreements. The credit is treated as a project cost and is paid to you at or following the conclusion of the project. It exists so early movers aren’t penalized for funding first.

After you pledge and sign the project’s NDA, the project’s full document set unlocks — including the property address, the materials on file, and the agreements you will sign — keep all of these confidential — the Subscription Agreement and the company’s Operating Agreement. Both are presented for electronic signature with your exact figures — units, price per unit, and the project budget — where you can read every page in full before signing. Executed copies are delivered to your email once countersigned. If you have questions about any provision, contact us before you sign — we’re happy to walk through it.

Distributions are paid out when the project hits its return milestones — typically at sale, refinance, or scheduled interim payments depending on the deal structure. For most deals currently, the single exit and milestone are the property sale after development. Simple and straightforward. Equity investors share in proceeds via either a Simple Split (pro-rata) or Waterfall (preferred return, then promote) structure, both disclosed on the project page before you invest. Take a look at the "Financial Summary" tab in your project. Development-loan positions, as opposed to equity, pay fixed interest on a defined schedule and are repaid before equity holders; these are not always available, as our Developers enjoy great institutional financing for development loans due to their track record. Every distribution is reflected in your dashboard with a downloadable record.

In a Simple Split, profit is divided at fixed percentages from the first dollar, with the investors’ share distributed pro rata by units. The essence is that in a simple split, everyone is a partner in a single-purpose venture (developing the project, and then usually selling it), and everyone profits in accordance with their membership interest. A Waterfall pays investors first: after all invested capital is returned, the early tiers direct most of each profit dollar to investors until the investor class has earned stated preferred-return hurdles (for example 8%, then 15% annually) — only then does the developer’s share of additional profit step up. Hurdles are measured on the investor class as a whole; because units may sometimes be issued at different prices at different times, the project page translates every tier to your own unit price, so the numbers you see are fit for you and your investment. Often, investors prefer Waterfalls because it gives preference and priority to their hard-earned invested dollars. The Developer can do well only in the case of a home run — hence the Hurdles.

Although we are very proud (and thankful) of our record, all investing carries risk. Investing in real estate, though much safer than many other types of investing, is no exception. Ground-up real estate development carries construction risk (cost overruns, schedule slippage), market risk (rents and sale prices at exit), entitlement risk (permitting delays), and sponsor execution risk. Everything from oil prices and interest to wars and politics can affect the real estate market of one area or another. Part of the reason we offer such attractive returns is due to leverage. While our projects can access such financial leverage due to their very successful track record, leverage amplifies risk on the downside as well. We mitigate by: limiting projects to South Florida markets we know very well directly, vetting sponsors against a real track record threshold, building contingency into every pro forma, having plenty of cushion (a large safety margin before we near anyone’s principal), and stress-testing returns under a downside scenario published on each listing. Ultimately, your investment is backed by real property in some of the most upscale in-demand markets in the world. But there is no FDIC-type guarantee — investors should commit only capital they can easily hold through the year or more of a project lifespan.

Equity in private development projects is illiquid by default — there is no public secondary market. Plan position sizing accordingly, and be ready to hold your investment through to completion and the planned exit. If an Investor is interested in exiting early for whatever reason, Freehold will try to help. Simply let us know. We can sometimes offer your investment to one of our other investors. We will let you know of any potential bid or bids we can find, and you are under no obligation to accept any of them of course. For some projects we may also implement an internal marketplace for our investors to make such offerings directly to each other, subject to the terms of the pertinent agreements. However, keep in mind that no such early exit is guaranteed at all, nor at any particular price; so we urge investors to be ready, willing and able to hold their investment throughout the project term.

As an Investor, Freehold never directly charges you anything at all. Freehold Crowd is compensated primarily through a small platform fee built into the project structure — disclosed on each listing’s financial summary, typically a fraction of a percent of the total project cost — and where applicable, a share of the sponsor’s promote. This fee compares very favorably to traditional financing and capital-raising fees in real estate. You won’t see a separate AUM fee, ticket fee, recurring management fee (or any other fee for that matter) charged directly to your account. Neither does the project. The numbers on the deal page reflect the performance, all-in and everything included.

Yes, when it is a good fit. If you raise capital or represent groups of investors, feel free to contact us. We are happy to offer our high-quality opportunities to your investors.

Each project is owned by a separate LLC taxed as a partnership, and investors are members of that LLC — so you receive a Schedule K-1 for each project you invest in, reporting your share of the company’s results for your return. K-1s are issued for every year you hold units, including the exit year. Non-US investors may also receive withholding documentation where applicable. Please consult your tax adviser. If you have any questions or requests in this regard, or any other, feel free to communicate with us. We are more than happy to help when we can.