Why do freedom checks look so sketchy it they are actually legitimate? Anybody who has researched freedom checks, or the investor behind them Matt Badiali, has probably learned that they are real. Badiali’s credentials are enough to validate anything. Besides this thought the videos in which Badiali introduces freedom checks still look scammy with a side of skechy. Mostly, this is due to the scrip of the video being the same one they use for all the videos. It also has to do with the fact, that no one fully understand what a freedom check is.
Freedom checks are actually MLPs. These are tradeable exchange stakes investors purchase to gain a percentage of a company. The stakes provide said company with working capital, and also grant the business tax exemptions. Now here is where Badiali’s cash grab claim comes in. To take advantage of the tax break, the company has to pay the majority of its cash revenue to its investors. Freedom Checks: Are They a Scam or the Real Deal?
This means that about 90% of profits go to stakeholders to leave a measly 10% for taxes. If you have purchased a stake, you effectively get to “grab” a percentage of that payout. It comes in a monthly to quarterly payout known properly as a return of capital payment. Badiali likes to call it a freedom check.
MLPs are actual investment, very close to regular stocks. This means that they carry some risk. Obviously, if the company were to close the investment would be lost. Risk is also factored into the performance of the company. If the company makes good money, investors get a good payout, and vice versa. In addition, the percentage is related to the amount invested, so if John Q. Stakeholder only invests ten dollars, which is what some stakes can be purchase for, they will receive a corroborating percentage. So freedom checks are no more of a risk than normal stock.