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.
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
- 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)