How does Ironton Capital’s National Diversified Funds (NDF) approach address the need for diversification in real estate investments, and what factors are considered in structuring this diversification?
Our National Diversified Funds, is the cornerstone of our approach at Ironton Capital, providing an effective solution for diversifying real estate investments. We diversify across various dimensions, including product types such as high-end single-family homes, build-for-rent properties, duplexes, hotel conversions, and more, ensuring we don’t over-concentrate in one area. Geographical diversification further spreads risk, safeguarding […]
Can you describe a situation where you went through the deal evaluation process and found a deal that looked promising but ultimately didn’t work out?
We thoroughly assessed seven deals in a specific market. Initially, some deals looked promising, but we found that the residential market there was excessively compressed. The prices of single-family homes were very affordable, making it easy for people to buy rather than rent. In such a market, it’s challenging to achieve the expected returns, especially […]
Site visits are crucial in the real estate industry because they allow us to physically inspect properties, ensuring quality and construction align with reported plans. This benefits both investors and sponsors by adding value through our experience and confirming that the project is on track, contributing to its success.
The investment process at Ironton Capital starts with identifying potential opportunities from various sources. Each opportunity undergoes a quick analysis, focusing on factors like returns, timelines, and risks to determine viability. Opportunities passing the initial analysis move to a full Investment Committee for further assessment. The Investment Committee assigns funding if the opportunity progresses. The […]
Ironton Capital typically invests 5%+ of the totally equity in the fund.
In NDF, there is a one-time acquisition and annual asset management fee paid to Ironton Capital. The fees are lower for investors with more than $100k in AUM. In STIF, there is only an annual asset management fee.
Investors will have the option of choosing Class A shares with a higher pref and no depreciation, or Class B shares with a lower pref, but they’ll receive all the depreciation pass through from the fund’s investments. Please discuss with your CPA your specific tax situation and which class of shares will give you the […]
Yes, NDF5, NDF6 and NDF7 will have an independent, outside CPA firm audit our results. In addition, we have a robust set of financial, operational and IT internal controls. We have an external accountant with Big-4 experience that reviews our operations and financials monthly to ensure compliance with our internal control policies.
The investment committee (IC) is comprised of three veteran real estate investors, each with over 20 years of experience. NDF1 launched in 2019. We made eight investments. Four are complete, and we have good visibility for where the other four are likely to end up. That fund is tracking to a 17% IRR. It’s too […]
Will I always have to delay my tax returns if I invest with Ironton? I’ve invested in other projects and the K-1’s didn’t take this long. Why is that the case with Ironton?
Yes, you will need to file a tax extension.