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Apr 7, 2015 11:41 EST

Carpathian Capital Management – Carpathian Capital Fund II: A multi-strategy residential real estate fund targeting well-performing markets in the Midwest

iCrowdNewswire - Apr 7, 2015

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Carpathian Capital Fund II

  • Total Raise: $10,000,000
  • Min. Investment: $25,000
  • Property Type: Residential
  • Est. Investor IRR: 15%+

Carpathian Capital Management

A multi-strategy residential real estate fund targeting well-performing markets in the Midwest.

  • Current portfolio returns in 2014: Bottineau on the River Project posted a 35% ROE and Ian Alliot Project posted a 39% ROE.
  • 15%+ Expected ROE from current fund. Multi-asset and multi-strategy approach offers uncommon protection via diversification.
  • Manager’s track record will help to negotiate favorable terms with lenders and the Manager will personally guarantee a portion of the debt.

WHO WE ARE

Carpathian Capital Management (CCM) is an alternative asset manager in Minneapolis, MN with specific focus on residential real estate.  CCM currently manages over $20 million in single-family and multi-family real estate assets in four different states on behalf of clients.  CCM has achieved exceptional returns for investors via a disciplined focus on cash flow yields and appreciation potential. Carpathian Capital Management specializes in property acquisition and management for multiple strategies:

  • Buy and hold (including rehab, leasing and long-term property management)
  • Rent to own
  • Fix and flip

Please see presentation above for specific project examples and returns.

OUR PORTFOLIO

BOTTINEAU ON THE RIVER, 2219 MARSHALL ST.  NE, MINNEAPOLIS MN 55418 – 35% ROE
  • 12 unit building acquired in December 2012
  • Total investment: $720,000 (purchase + renovation)
  • 100% occupied at time of purchase
  • Post renovation rents are 30%+ higher than prior levels
  • The Manager returned 62% of initial equity to investors within the first 18 months
  • The Bottineau posted a 35% Return on Equity (ROE) in 2014 from rents alone(does not include additional unrealized capital gains)
  • Property website: http://www.thebottineau.com
IAN ALLIOTT CAPITAL, LLC – 39% ROE

$850,000 in residential property assets (2 houses, 2 townhomes, 2 fourplex buildings). The Manager returned 67% of initial equity to investors within the first 24 months. ROE of 39% in 2014 from rents alone (does not include additional unrealized capital gains).

CARPATHIAN CAPITAL FUND I, LLC – 11% ROE

A diversified fund with over $18 million in residential rental property holdings (over 170 properties). ROE from rents only (does not include unrealized capital gains) was 11% in 4Q14*.

*FUND I REACHED FULLY INVESTED STATE ONLY IN 3Q14 SO ROE FOR 3Q (10%) AND 4Q (11%) ARE BEST REPRESENTATIONS OF "STABLE STATE" PERFORMANCE.  ROE FOR THE FULL YEAR 2014 WAS 8%. 

OUR SELECTION CRITERIA

  • Properties must generate free cash flows
  • Minimum cash-on-cash return of 10%
  • ​Property must offer strong appreciation potential via below-market purchase price, rehab or both
  • Submarket must offer positive rental supply / demand fundamentals
  • Rents must be reasonable relative to median income levels for given area
  • Properties will generally require light-to-moderate renovations only (typically 5% to 15% of purchase price)
  • School scores should generally be at least average (or better)
  • Crime levels should be in line with rental yields for the area.  Moderate (but not high) crime levels can be tolerated if property offers above-average profit potential in exchange

OUR SERVICES

MAIN STRATEGIES
  • Buy and hold residential rental properties (5-8 yr. hold period)
  • Buy and hold “lease-option” (rent to own) residential properties – up to 25% of portfolio
  • Fix and Flip – both debt and equity, up to 25% of portfolio
ALTERNATIVE STRATEGIES (NO MORE THAN 10% OF FUND)
  • Wholesaling
  • Commercial

 

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