Frequently asked questions
Where Do You Buy?
We buy in the Contiguous United States. Check back frequent for specific markets.
What's the smallest multifamily size your company will buy?
We typically buy properties with at least 50 units. However, this is not a hard number.
What's your process when buying?
First, we will analyze your property's financial data. We will need to get income and expense statement (we prefer trailing 12) to review it. We offer base on the income that your building produces.
Why should I invest in multifamily properties?
Multifamily apartment buildings are one of the most recession proof investment vehicle in the Real Estate market. In an article published by the Pew Research Center, more U.S. households are renting than at any point in the last 50 years. A strong renter market equal to lesser risk for us and our investors.
Do You Charge A Fee?
Our company is not a real estate brokerage firm. We are not here to list your property for sale. There is NO fee when you submit your property to us to look at. We want to buy your apartment building, not list it.
Do I have to repair my apartment building before your company buy it?
No! You do not have to fix up anything if you do not want to. We will buy your apartment building as is, where is. You can give us the keys, and we'll take over your headache.
What documents do I have to provide to you for an offer?
We want to understand where your property stands financially and physically. The best set of document that you can give us is your trailing twelve months financial statement (T12) and some pictures of your apartment building.
What are the risks?
Just like any other investment options, risks are inevitable! Though we do our best to manage the assets, things out of our control such as: residents move out, residents destroy the units, employers move out of our market, political issues, cheating management, market crash like 2008, etc.
What Kind of Return can I get when investing with E W Ventures, LLC?
Each property has its unique position therefor we cannot provide a hard figure. Typically our investors are realizing on average 6%+ preferred return. We take care of our investors by paying you first before the sponsors get paid anything.
Any Guarantee That I Will Get My Money Back?
No! You could lose all of your money just like any other type of investments. We mitigate risk by conservative underwritting guidlines. However, there are still risk elements that we cannot control.
How Long Will You Hold My Money For?
Consider where we are at in the market cycle, we like to hold our investments for 5 to 12 years. By doing this, it will allow us to ride out the storm should the market crash again.
How Do You Structure Each Deal?
We create a limited liability company (LLC) in the state where the property in located. This LLC will own the apartment complex.
What Is An Accredited Investor?
The SEC defined accredited investors as a natural person who earned income that exeeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence.)
How Do I Qualify As An Accredited Investor?
There are several ways for you to get this verification done such as attorney letter, CPA letter, broker-dealer letter, You can also go to this a third party vendor who specialize in this service such as https://www.verifyinvestor.com/
Do I Have To manage These Properties?
Our company works with highly recommended property management teams with vast experience in leasing, maintenance, on-site, off-site and regional management.
Can I Invest Using My IRA or 401K?
Yes but only with self-direct IRA! Investing in real estate with SELF-DIRECTED IRA is a perfect plan. There are great benefits for you as your investment grows tax free or tax deferred.
I Am READY To Learn More, Now What?
How Do I Get Update On My Investment?
We send out emails roughly once per quarter, or set up a conference call once a quarter.
What Is The Minimum Invesment?
The minimum is $50,000, but we can make exceptions on a case by case basis.
Do I Have To Pay Any Fees?
You do not pay any direct fee! We underwrite and close transaction with an acquisition fee between 2-4% of the purchase price. This acquisition fee allows us to recapture all of our up front cost to finalize the transaction (earnest money deposit, security attorney cost, real estate council, due diligence etc.) and compensates us for our time.
How Are You Going To Use The Money?
Majority of the money is used for down payment of the property, pay for the general partners' (E W Ventures, LLC) acquisition cost, and pay for closing cost. The remaining money is for capital expenditures (ie: pay for deferred maintenance, improving the properties, etc.), fund maintenance reserve account.
How Will I Get My Money Back?
You will be able to get your money back when the property is sold or when we refinanced at a higher value.
Debt Partner vs. Equity Partner?
Debt Partner will receive a pre-determined target return such as a fix interest rate.
Everyone tax situation is different. You must check with your tax advisor for your specific tax advice.
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