FREQUENTLY ASKED QUESTIONS

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As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

You can invest no matter where you live. We accept domestic and international investors.

The term goal of each property fund is 10yrs. Having a long term mentality is key when it comes to investing in real estate. The longer you are in a fund the better chance you have of an asset appreciating and profits being made. Wall street and REITS want you in a 3-5yr fund so they can collect their fees. Waiting for Real estate to appreciate and selling property at the right time is the best way to capitalize on profits. ECP has full discretion and can choose to extend or shorten the term of the fund if necessary to create as much profits possible for our investors.

Zero. ECP is responsible for 100% of the debt taken on all deals made. Any debt involved with buying property falls on ECP which keeps our investors financial free of any debt obligation involving the purchase of our properties. We get the loans, you make the profit.

This is just an estimate of the minimum we hope a property will do. We aim to provide the absolute highest returns to our investors as possible. EX. You invest $100k. We own the deal for 10yrs (for simplicity lets say so far we paid $0 return a year and owe you your preferred return from cash flow of 6% for the 10 yrs). Once profits eventually get distributed we first owe you $60K (investment of $100k x 6%). Then we would owe you another 9% (6% a year + 9% a year= 15% IRR) $60K+$90K=$150K. Therefore every $100k would be worth $250k assuming we hit the 15% IRR and assuming you the investor stayed in the fund 10yrs.

If ECP bought a property, only held it for one year, sold the property and you invested $100k ECP would owe you $115k- your initial investment back of $100k plus $15k. This is way more of a percentage than a bank, 401k, or IRA would ever pay you on your money.

This is usually around 50 days after the deal closes in order to give ECP proper time to cover all aspects of the deal i.e. get cash flows stable, closing, etc. *Remember, cash flow isn’t guaranteed every month. Cash flow is distributed when the property has cash flow. Sometimes we may take some of that cash flow and use it to reinvest into the property in order to raise rents on that property.

Everything. A “REIT” is like a guaranteed piece of paper, just like a stock. It can be torn up and is not backed by anything except the promises on that piece of paper. REAL Assets like REAL estate cannot be torn up. When you invest with us you get all the benefits as a real estate investor would and the tax advantages that come with it including a K-1 and not a form 1099 as a partner in the real estate. If you’re looking for stability, appreciation, tax advantages, then become a partner with us in the actual asset and invest with Equity Capital Partners.

There are risks involved with any and all investments. Any unforeseen economic crises could happen and the potential to lose money on an investment always exists. However, our proven strategy for selecting good properties with stable cash flows help to mitigate that risk during economic downturns and crisis. We will never invest in any properties we don’t love and that don’t make sense. There are no guarantees when investing in real estate, but we at Equity Capital Partners promise to find, fix, maintain and sell our deals to the right buyers at the right time in order to generate wealth for you the investor and our company.