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Real Estate Capital Recovery Fees

Freehold Capital Partners

We invite you to learn more about Capital Recovery Fees, (also called "private transfer fees"), a real estate financing solution designed to more efficiently structure the economics of real estate projects.

We partner with real estate developers (and similar owners of large real estate projects). By working with us to structure a one percent Capital Recovery Fee, the project developer/owner can more fairly apportion costs and, in consequence, lower the sales price. Since a portion of the significant capital investment in the project can be recovered over time, current and future buyers will enjoy lower acquisition costs, which means lower closing costs and lower monthly interest payments. In this way a Capital Recovery Fee is distinguishable from a government transfer fee (i.e. a tax that raises property ownership costs for everyone as a means of funding government services).

The process starts by filing a legal instrument (called a "Declaration of Covenant" or "Private Transfer Fee Covenant") in the real property records. The result is a collateralized income stream. Capital expenditures can be recovered over time, or the future payments can potentially be sold off for liquidity today. It is an attractive alternative to forcing 100% of development costs onto the initial buyers.

The owners of hundreds of billions of dollars in real estate projects nationwide, including some of the largest, most well respected developers in the United States, have partnered with us to restructure the economics of their real estate projects.

Whatever role you play in the real estate industry, We invite you to learn more about what Capital Recovery Fees are, how they work, and what we do. A good place to start is by downloading our brochure.

DISCLAIMER: Nothing herein shall be deemed legal, financial, tax, or securities advice. Nothing herein shall be construed as an offer to buy, underwrite, register, or sell securities.