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FREQUENTLY ASKED QUESTIONS

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  • Why should I learn more about the Engineered Capital Club?
    Communication is a must-have in our business, whether good or bad. We highly value trust and integrity, and we always do what’s best for our investors...even if it means we make a financial sacrifice. We are fiercely determined and work harder and smarter than most operators so you can rest assured your investment is well taken care of.
  • Are there any tax advantages?
    Apartment syndications are extremely tax efficient. As a partner in our limited partnership, you will benefit from your portion of the investment’s deductions for property taxes, loan interest and depreciation, which are the big ones. We like to use a cost segregation strategy as well to accelerate depreciation since we don’t typically hold onto the asset for a really long time. You will get a K-1 statement from the partnership in March of the following year for the current tax year. It’s not unusual on a $100K investment to experience a min 8% preferred return or cash in your pocket of $8K while experiencing a paper loss on your annual K-1. Additionally, any refinances or supplemental loans are reviewed as a return of equity so no tax impacts.
  • What if the economy crashes while we own the property?
    We won't want to sell in a down market. The goal would be to monitor market conditions with us and listing broker and hold on until the market is healtheri to achieve a better price at sale. Class B/C value add properties tend to hold up much better in downturns becasue everyone needs a place to stay and rents are more in line with the market.
  • How can I get involved?
    The best way to get involved is to simply fill out the form on the "Invest With Us" blue button you'll see throughout this website and we will be in touch with you to talk about next steps.
  • What is the minimum required investment?
    Our typical minimum investment is $50,000, but it could vary from one opportunity to the next.
  • Will Engineered Capital be investing any of its own capital?
    We invest our own capital most of the time, but some of our investments are deal-specific. Even when we don’t invest our own capital, we will structure the deal so that we don’t get paid unless the deal exceeds our projections, making sure our investors are fully paid before we see a penny.
  • What are the risks?
    Risks are outlined in the PPM (Private Placement Memorandum). A few things to note.... In 2020, throughout the COVID-19 financial & economic crisis, delinquency rates on single family homes was 8.2% vs 1.4% on multifamily apartments. Additionally, a 2020 survey of over 500,000 units across the U.S. showed there was only a 1-2% collection drop from tenants unable to pay rent. Class B & C multifamily properties saw growth in the tenant base during 2020 and NOI was higher than ever before in certain cities throughout the U.S. Class B & C multifamily properties have a proven track record of steady returns regardless of the market cycle.
  • Why would we purchase a property that has terrible reviews?
    We believe that’s a good thing. As value-add syndicators, if all news was good news, there would be nothing to capitalize on. The property is often re-branded, new website, & new property management team is brought in. We focus on operational improvement and renovating the property. We also place value on intangibles, such as hosting monthly community gatherings to foster a sense of community that may have been lost which can improve retention & reduce turnover. Properties can typically be turned around faster than you think. Re-positioning the asset is our primary focus.

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No Offer of Securities—Disclosure of Interests. Under no circumstances should any material at this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.

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