Gain passive income through Real Estate
without having to worry about... managment.
Did you know you can invest with your IRA?
Many people don’t know that they can use retirement money from their Roth or Traditional, IRA or 401K, accounts to Invest in Real Estate. The Problem is many traditional brokers do not allow this type of investment. Luckily, we have wonderful relationships with many Self-Directed IRA and Solo 401K Providers. They can help you transfer money from your IRA or 401K into a qualified account. You can then use that money to Partner in Real Estate deals with us.
How we get it done
The Core of our Professional Business Model is the
EagleCap Legacy Wealth System.
This three-stage system includes our Professional Screening Filter, Expert Project Operations, and Maximum Return Strategy.
Professional Screening Filter
In short, the seasoned professionals on the EagleCap Team qualify potential multifamily assets for purchase and perform due diligence inspections to ensure each asset complies with our strict screening criteria.
We then partner Investor Capital with Bank Debt to arrive at a capital stack that meets our conservative underwriting in order to finalize the purchase.
Expert Project Operations
With a responsible yet aggressive asset management style, we formulate a business plan to increase occupancy and rent growth, and to reduce expenses. We then oversee execution of the business plan, by one of our stringently qualified professional asset management companies.
Maximum Return Strategy
EagleCap expert project execution brings the property to its peak condition within our 5 to 7 year time horizon.
We are then able to sell for top dollar and maximize investor profits. Investor capital is now able to roll into the next exceptional EagleCap Legacy Wealth Partners investment opportunity.
Apartment Acquisition Criteria
CAP Rate:
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At purchase: based on current financials considering potential value add upside
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At sale: business plan typically factors in a conservative 0.1% increase per year held
Target Return & Investment Period:
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9%-18% annual cash on cash return (based on current financials)
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15%-20% total annual return over investment period
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5-7 year hold period (medium to long-term)
General Criteria:
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Potential high yield income streams.
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20% below replacement cost.
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Cash equity-“All cash” or “Cash to existing debt”.
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Value-add opportunities sought.
Property Criteria:
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Utilities: Individual metered units preferred.
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Roofs: Pitched roof construction preferred, but not required.
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Premier Properties: Stabilized properties with minimal deferred maintenance preferred, but will consider others if well located and possessing a strong, value-add opportunity.
Transaction Size:
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$1 – $20 Million
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Minimum 70+ Units
Asset Type:
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B+ to C+ class multi-family properties; Prefer B class in A market and C+ class in B market opportunities.
Occupancy:
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Prefer stabilized properties. Minimum 85% occupancy. Will consider lower occupancy if property is well located and has value-add upside.
Age:
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Preference is 1978 and newer, but will consider all age properties.
Target Markets:
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Nationwide growth markets.
Location:
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B+ to C+ trade areas with strong demographics and economic diversity.
The Eagle Cap Trusted Legacy Wealth System
This proven system ensures every investment is backed by a solid strategy.
1
EagleCap Professional Screening Filter
Allows us to thoroughly analyze all deals in our targeted markets with only 2% – 3% qualifying for further review. This strict filtering process ensures only assets that meet our conservative underwriting and focus on cash flow for investors get selected. We focus our purchases in markets throughout the United States, with a current focus on the Midwest, Southeast and Texas. These markets have strong employment and stable or growing population trends. When on-site, our team of experts inspect and analyze all financials and the physical condition of the property to mitigate potential risks and uncover opportunities for our investors. Only qualified deals move forward.
2
EagleCap Expert Project Operations
Our systematic team approach to performance, KPIs, and people, consistently elevates our apartment communities to the highest standards. This ensures predictable investor cash flow and appreciation that leads to big payouts in the end. Our plan is to perform any deferred maintenance as well as upgrade units upon turnover. This will help to increase rents. We also bring aboard a skilled third party property manager to improve operations and reduce operating expenses.
3
EagleCap Maximum Return Strategy
Utilizes a cash flow focus, maximizing profits, while improving and maintaining a stabilized asset. This positions the property for a profitable exit for our investors. Stabilized, cash flowing property, is attractive to institutional buyers including REIT’s and institutionalized investment firms. We typically plan on a 5-7 year exit strategy, but under the right circumstances, may hold some properties for long-term cash flow. Once a property is stabilized we often refinance it paying off some or all of the investor capital, maintain it long term for steady cash flow, or 1031 exchange it for a bigger property. With return of equity and profits, our investors are now positioned to take advantage of EagleCap’s next acquisition.
EagleCap Asset Protection
We structure our deals with asset protection in mind
EagleCap Legacy Wealth Partners believes in asset protection. We have SEC lawyers that consult and prepare the necessary organizational structure, LLC’s, and Private Placement Memorandum (PPM). Our PPM has two types of shares:
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Member Shares, or "A" shares are passive investors who simply contribute money to the deal and receive quarterly cashflow.
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Manager Shares, or "B" shares are active deal sponsors that manage the asset and divide up the general partnership (GP).
Through this, EagleCap ensures proper operational structure and documentation, which guides us in all decision making.
Why invest in multi-family?
Produces Cash Flow
Multifamily properties generate enough income to cover the cost of operation, improvements, and the mortgage. The rest goes into your pockets.
Forced Appreciation
Decreased expenses and increased income raises the value of the property.
Inflation Protection
The value of these assets will increase with inflation, real cash dollars do not.
Tax Benefits
Takes advantage of depreciation of the building.
Leverage IRA or 401K
Diversify retirement savings with Real Estate Investments
Lower Risk Investing
More control and predictability than the stock market.
Frequently asked questions
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What kind of properties do you invest in?We currently solely invest in multi-family apartment buildings, one of the most recession proof segments of the Real Estate Market, particularly with the United States population continuing to grow. Even with the continued advancements in online marketing (particularly Amazon) and “work from home” which threatens the retail and office markets, people will always need to live somewhere. Within this segment, we focus on B+ to C+ class multi-family properties and prefer B class in A markets and C+ class in B markets. We believe this positions us in the segment of the market that is shielded most from the ups and downs in the economic cycles.
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What is an accredited investor?To qualify as an accredited investor, a person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income. An individual must have earned income above the thresholds either alone or with a spouse over the last three years. Or A person is also considered an accredited investor if he has a net worth exceeding $1 million, either individually or jointly with his spouse excluding personal home.
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Can I invest even if I am not accredited?Of course, you do not have to be an accredited investor to invest in our deals. Additionally, there are ways for you to become a part of an apartment deal with no money in the deal. Contact us to find out how!
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How does EagleCap find its Apartment Deals?We have relationships with many commercial brokers throughout the United States, who bring deals to our team often before they go on the open market. We may also engage in direct marketing campaigns and are constantly building relationships with banks to get access to their REO inventory. Once presented with an opportunity our team underwrites every single property to the highest standards and eliminates those that do not qualify to our rigorous standards.
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What will my return on Investment be?All our investments are based on individual properties, and every property is different, offering different returns. However, target returns for each property consist of 7% to 12% average annual return from cash flow during the 5 to 7-year hold period, paid out quarterly to each investor, and another lump sum at sale or refinance equaling 8%-10% average annual return to each investor as well. By consistently applying our proven Legacy Wealth Systematic process to each apartment investment, our objective is to, at a minimum, double investor money in 5 years or less.
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How much are these property leveraged?This is an exciting point. Over a 5-year period it is our goal to have our properties not be more than 50-60% leveraged. While we start out with a 75%-80% leverage based on purchase price, we decrease that ratio rapidly by actively paying down the loan and by forcing appreciation of the property through value add improvements, superior management, and rent increases, leading to a 5-year loan to value ratio of no more than 60%. This conservative approach provides additional buffer from the ups and downs of the real estate market.
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How are EagleCap Apartment Deals Structured?Great news. You will be a limited liability owner of the property and are, therefore, entitled to all the LLC protections and benefits of ownership, like depreciation and cash flow. The property is owned by a “Property LLC” as the only asset in the LLC, which controls liability risk. You in turn will be a direct shareholder in this “Property LLC”, so you are part owner of the company that owns the property. This allows for a direct flow-through of cash flow and depreciation benefits, and allows you, upon sale of the asset, to realize long term capital gains… PLUS, you literally get to tell your friends you “own” an apartment complex, because you do.
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Can I invest with my retirement plan?Yes, investing in Multi-family in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven’t already, is set up a SELF-DIRECTED IRA, or a SOLO 401K, with an independent custodian, like www.SpecializedIRAServices.com or www.VantageIRAs.com and once complete you can invest using your IRA/401K… or several other self-directed retirement account forms. If you have questions about how to do that, please contact us through the Contact US form or email us at (contact@eaglecapinvesting.com)