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FAQ

1 / WHY SHOULD I INVEST IN MULTIFAMILY REAL ESTATE?

  •  Multifamily housing has a variety of benefits for investors, including predictable returns, single-asset ownership, and significant tax savings

  • Real estate is very stable compared to the equities market

  • Workforce housing is undersupplied around the country, very little new stock in the development pipeline, and demand is increasing

2 / WHY PARTNER WITH EA CAPITAL PARTNERS?
  • EA Capital Partners is committed to sourcing high-quality deals in emerging markets to giveour investors base the most lucrative deals with the least amount of risk

  • Ea Capital Partners, we have a mission to help 1000 families get on their journey to financial freedom. We are also strong advocates for providing resources, knowledge and education back into our communities to uplift them as we grow as a company as well as individuals

  • Our investment portal provides a clean and transparent view of all investments, and automates the monthly dividend process

3 / DO YOU INVEST YOUR OWN MONEY?

We are invested in the deal right along with you. We don’t want to lose our money either! We take your money and your trust in us seriously. Assets are chosen wisely. Ultimately, we believe there is little chance of losing our money and instead a very high probability of creating more income. We want to be completely transparent and always encourage you to do your own research before making a
decision.

4 / HOW RISKY IS MY INVESTMENT?

Any investment will have some risks involved. There is no guarantee to any kind of investment, whether that investment is in stocks, bonds, or real estate. However, multi-family real estate has proven to be one of the safest and most stable investment choices available. Risks are carefully outlined in slide presentations for each property. EA Capital Partners works hard to mitigate any risk by having a very extensive due diligence done on each property with a thorough plan backed by research on how to turn devalued assets into profitable ones.

5 / AM I AN ACCREDITED INVESTOR?

You qualify as an accredited investor if one or both of these two things applies:

 

1. You have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and you have a reasonable expectation of earning the same, or a higher amount in the current year

 

2. You have a net worth of over $1 million, either individually or jointly with a spouse (excluding the value of your primary residence) For the first criteria, the person must satisfy the thresholds for the three years consistently either alone or with a spouse. For example, a person would not be able to satisfy two years based on an individual income than the next year with a spouse.

 

The only exception is if a person gets married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years. We will also refer you to a third party for verification of status to protect yourself and the investment opportunity.

 

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors.

 

An entity qualifies as accredited if one of the two below criteria apply:
 

  • Any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or

  • Any entity in which all of the equity owners are accredited investors. In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

6 / WHAT IF I'M ONLY A SOPHISTICATED INVESTOR?

Ea Capital Partners does accept sophisticated investors. There are certain rules and regulations when it comes to sophisticated investors, but you are able to invest in some of our deals we have. Book a call so we can discuss your options further.

7 / HOW DO DISTRIBUTIONS WORK?

Once you have invested money with us, and signed all necessary paperwork, your work is done and your investment is completely passive! This means that you will receive money on a regular basis without needing to put any work in. Ea Capital Partners and our team will manage the property, collect rent, and pay a distribution to each of our limited partners (that’s you!) on a regular basis. You will receive this regular distribution until we exit the property, at which time you will receive your full return.

8 / WHAT IS EA CAPITAL PARTNERS ACQUISITION STRATEGY?

At Ea Capital Partners, our main focus is on obtaining the best return for you, the investor. One of the most strategic ways to do this is to look for and purchase properties that have significant growth opportunities by value adds. These properties may be older, look worn out, or have out of date amenities.Our team is able to add value to these properties, by refreshing interiors, adding amenities, renovating units, etc. All of these things drive rent up to produce more profit, while still staying affordable for tenants We also provide opportunities through multi family developments. These projects are usually more lucrative but may come with its own risks because they aren’t existing “rented units”. Cash flow will begin after construction phases are completed. These are also heavily evaluated and much due diligence is done to make sure this is a sound investment before it ever becomes an opportunity for our investors.

9 / WHAT IS THE TIME FRAME OF INVESTMENTS?

A 3-5 year hold time for multifamily real estate can ensure maximum profit potential as it allows for the realization of capital improvements, rent increases, and market appreciation. This timeframe provides a balance, offering ample opportunity to implement value-add strategies and optimize operations, while also aligning with typical real estate market cycles, thus maximizing the property's value at the point of sale.

10 / CAN I EXIT AN INVESTMENT EARLY

You can review the projected timeframes on each investment opportunity’s details page before you invest. Some investment offerings come with the option to exit or continue after the initial investment period. However, you cannot exit an investment before the initial timeframe is complete.

11 / DO I HAVE TO FILE TAXES IN THE STATES I AM INVESTING PASSIVELY IN? IF SO, WHAT
ARE THE FILING COSTS I SHOULD EXPECT?

If the syndicator is not filing a composite return, the investor may want to file a state return. That way their losses will carry forward to offset a future gain from the sale of the property. There are some states that require nonresident withholding when the property is sold, for example GA, so the tax owing will be paid for all when the property is sold so they would not have to file a state return. Some states don’t have individual filings. An investor would need to discuss all the options with their tax advisors. State returns can add up cost wise and each firm charges differently for them. We advise you to discuss the cost with your tax advisor but a minimum cost would likely be $250/state.

12 / WHAT IS A K-1?

A K-1 is a tax form that is issued annually by any business that operates as a partnership. This form provides investors with detailed information on each individual investor’s share of the partnership's earnings, losses, deductions, and credits during the year. Once this document is received, the individual investor can use the information to report it on his or her tax returns. This will be a big tax shelter that helps you offset your active and passive incomes.

13 / WHERE AND WHEN CAN I FIND MY K-1?

Your K-1 can be found within your investor portal! As an investor, you will receive an email with detailed instructions once this document is ready on a yearly basis. Our goal is to have your K-1 prepared and in your portal for you by March 31st of each year. However, we do rely on outside reporting which is largely beyond our control, and this can occasionally change the timing of when we are able to release these tax forms. We will always keep you informed and updated on each step of this process!

14 / AM I REQUIRED TO DO ANY ACCOUNTING FOR THE MORTGAGE INTEREST FOR MY
INVESTMENT OR IS IT ALL IN MY K-1 THAT I RECEIVE AT THE END OF THE YEAR?

All mortgage interest will be deducted and included in Box 2 of the investors K1. All income
and expenses are in Box 2 of the K1

15 / DO INVESTORS GET TO CLAIM DEPRECIATION AND APPRECIATION OF A PROPERTY?

Yes. For rental properties, 100% of the property’s depreciation expense will pass through to investors based on their respective ownership percentages. Investors will also benefit from the increase in value of the property over time.

16 / IS THERE A GUARANTEE THAT I WILL MAKE A PROFIT?

Investing inherently carries risks and uncertainties, and as such, we can't guarantee that every investment will yield a profit. However, we stand by our team's proven track record, which showcases consistent, profitable outcomes across numerous transactions. We encourage you to review these historical returns as a testament to our strategic approach and diligent execution in the multifamily real estate sector.

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