$100,000
MINIMUM INVESTMENT
14.8%
IRR
Reg 506c Filing Target Fund Size: $50 million Anticipated Portfolio Leverage: 60-75%
6.5% Yield
Year 1
7% Pref
70/30 LP/GP Split
Fund Strategy
A core-plus fund of existing stabilized assets focused on producing high income. Primary focus of the fund is quarterly cash flow followed by appreciation potential and tax advantages.
Target Assets
Primarily stabilized, income generating residential real estate focused on single family residences in the Columbus, Georgia metropolitan area. These properties are acquired primarily off market, significantly reducing competition for our investors.
Fees
Sales Charge/Load: None
Asset Management Fee: 1% of Assets Under Management
Carried Interest: 30% of profits above 7% Preferred Return
Acquisition Fee: 1.5%
Disposition Fee: 3%
Significant Cashflow Opportunity
Our firm's unique ability to acquire single family residential properties off market creates an opportunity for Limited Partners. The fund will target stabilized, income generating real estate with a focus on homes that are not currently available in most situations - meaning there is less competition from other investors looking at this type of property.
Housing Supply Deficit
The lack of supply of houses fueled by decreased construction led to a
shortage of housing. In 2019, the U.S. was short 3.84 million homes and that
gap exploded during the pandemic to 5.24 million homes by 2021. We would
need to build 2.1 million homes per year for a decade to catch demand. The
U.S. could continue to have a significant housing shortage over the next
decade, keeping housing prices and rents high for the foreseeable future
Inflation
Institutional Investor Interest
A new wave of institutionalization is sweeping the single-family rental market creating unique upside potential for investors that can aggregate portfolios. Institutional ownership only accounts for 3% of the US single-family market allowing significant space for growth. Major equity investments and commitments totaled $6.3 billion in the first quarter of 2021.
Single Family Residential Opportunities
Residential real estate provides a physical asset that can offer stability. Real estate prices tend to rise faster than inflation because the price of the asset fluctuates to match the perceived buying power of the dollar. Inflation also affects labor and material costs, driving the cost to develop or renovate existing homes, raising overall value.
Target Assets Portfolio
Sponsor With Deep Local Knowledge
Our typical property for fund acquisition is a single family home built after 1960 that has undergone full renovation, effectively resetting the property to current day living standards. With this includes the full replacement of any Capital Expenditure items older than ten years of age. This criteria lowers operating costs and achieves the highest rent rate.
Our typical Property
With ten years of operation, our Sponsor has a robust acquisition and project management team in place. They have a proven track record of acquiring properties at a discount and providing superb renovations. Aggregating renovated SFRs into a portfolio will allow investors to benefit from strong yield and appreciation while spreading risk across multiple properties.
2 BATHS
1,200 SQFT
3 BEDS
The 3 bedroom / 2 bath home is the most flexiblebedroom/bathroom configurations, appealing to the largest pool of prospective renters.
Portfolio Sale
Sale to institutional investor as CAP Rates
compress and institutional capital shifts to
secondary markets.
MLS Sale to Residential Homebuyer
Our Sponsor has existing relationships with hundreds of individual real estate investors who are poised to buy single family turn key assets.
Turn Key Rental Sale
Liquidation to individual home buyers, though time consuming, may provide the largest upside potential if real estate supply issues continue to exacerbate.
The second largest city in Georgia and located on the Chattahoochee river, Columbus has evolved from a dominant manufacturing town to a diverse economy with influences from the US Government, large global companies, and small businesses. The strategic growth of Columbus through the Columbus 2025 initiative brings together public, profit and non-profit leaders across the community to intentionally grow and improve the quality of life and business within Columbus. Success has already been noted as the downtown has become an economic small business hub with lower crime rates and more housing.
Market Overview Columbus, Georgia
The current market in Columbus supports ideal Price-to-Rent ratios right around the 1% mark.
Housing Overview
The Columbus housing market has shown a history of steady performance and was minimally impacted during the recent recession. According to Georgia Trend, the housing market was partly shielded from the recession’s impact, but has taken a bit more time to recover. This leaves a unique opportunity for investors in a market that is not overly saturated with investors. Additionally, consistently stable market conditions have demonstrated the regions ability to weather recent financial turmoil.
Median Home Value $159,497
Average Market Rent $1,360
17.8% 2021 Home Value Index Appreciation
Pete founded Iron Horse Capital Group and its subsidiary companies as part of his vision to make real estate investing and education more accessible. Pete is a graduate of Johns Hopkins University and served twelve years as a Special Operations Officer in the US Army. Pete has experience leading and working with teams from all over the world, including Operations in Afghanistan, Syria, Northwest Africa, Korea, and in numerous high-pressure environments. This early experience of scaling local partners to achieve strategic effects has shaped Peter's understanding of how best to leverage human potential in order to create positive change.
It is this philosophy that he brings to his current mission at Iron Horse Capital Group: to move people from a vague financial future to one that is defined by clarity, control, and freedom. Pete’s vision is to provide a real estate roadmap that people can trust and understand, guiding others to financial freedom. Pete is passionate about guiding others along the same path of financial freedom and has assisted many in their real estate journey.
CEO
Pete Kavanagh
Prior to IHCG, Keely worked at Deloitte Consulting where she concentrated on strategic development and performance improvement, and managed teams that assisted her clients in financial audit remediations, financial management, and organizational structuring. She graduated from Davidson College in 2012.
DIRECTOR OF ACQUISITIONS
Keely Brewster
Jared serves as the project manager for IHCG. Prior to joining the team, he served for fourteen years in the Army, including multiple combat deployments, time as an Instructor at the US Army Sniper Course, and Drill Sergeant. His leadership and attention to detail allows the team to remain focused on the renovation and rehabilitation of distressed properties. He's been married for seventeen years to his lovely wife and has three daughters. In his spare time, he enjoys working out, hunting, and being involved in a Deaf and Blind Ministry in Uganda.
PROJECT MANAGER
Jared Wise
Before joining IHCG, Adam graduated from the Culinary Institute of America. He subsequently served as a Special Operations Operator in the US Army, specializing in irregular warfare. Adam’s background in operations in a myriad of international environments uniquely positions him to lead our operations team. Adam ties together our acquisitions and project management divisions, allowing us to create the best possible investment opportunities for our investors.
OPERATIONS MANAGER
Adam Wilson
Amanda focuses on acquiring the best possible assets to provide opportunity to our investors. She has worked in a variety of backgrounds including higher education, retail, technology and insurance. Amanda holds a BS in Human Resources Management and she has a passion for helping people. She is an experienced sales and management professional who is driven by honesty and integrity. When Amanda is not working she is spending time with her husband, two beautiful daughters and adorable goldendoodle.
AQUISITIONS MANAGER
Amanda Rovetta
‘Outperform the Market’ and other phraseology used in this website or by Iron Horse Capital Group shall not be construed as a guarantee of profits in any way, and past performance is not a predictor or indicator of future results. Nothing contained herein in this website shall be construed as a solicitation of securities and only persons who have received a personal private placement memorandum and subscription documents executed by the subscriber and accepted by the Company shall be deemed to have received a solicitation for investment with Iron Horse Capital Group.
Any offerings of Debt or Equity positions are limited to Accredited investors only pursuant to Section 4(a)(2) and/or Rule 506(c) of Regulation D under the Securities Act of 1933. Accredited Investors are generally defined as an individual having a net worth of over 1 million dollars exclusive of primary residence, and certain entities with gross assets of greater than 5 million dollars or made up entirely of accredited individuals. If you are unsure if you or your entity is considered accredited, please verify with your CPA and attorney prior to considering an investment.
All real estate investments carry the risk of a complete loss of invested capital and returns/cash flow/appreciation/distributions after appreciation are not guaranteed and could be lower than anticipated. Please read the entire Private Placement Memorandum (PPM) of any offering for a full discussion of the business plan and risk factors prior to investing.