Our offerings are in compliance with SEC regulation 506c, which requires you to be an Accredited Investor.
Yes, we are only able to take investments from accredited investors.
An accredited investor is anyone who has an annual household income of $200K/yr (single) or $300K/yr (married) OR has a net worth of $1M or more, not including primary residence.
Learn more details on the SEC Website.
Part of investing with Ironton Capital is verifying that you’re an accredited investor.
We have two options to make it simple for you. Choose one option:
- Email [email protected] a signed letter from your CPA (Download Fillable PDF Template here)
- Or use our third-party verification service, which will automatically notify us when the process is completed. Click here to start.
Unfortunately, not. The SEC regulations disallow using a 1031 exchange with any fund like ours. You can only use a 1031 exchange into a “like kind” asset.
Our minimum investment is $100,000, however, we can accept a $50,000 minimum for first time investors.
For many of our funds, we’ll draw 50-80% of your capital commitment at the time that you make the investment. We’ll give you our best estimate at that time of when we’ll draw the balance of your commitment. We can’t think of any likely scenario where you would be forced to make capital calls beyond what we initially communicate to you.
The income receives privileged REIT (Real Estate Investment Trust) handling. For most investors, you’ll be taxed at the 20% federal tax rate instead of your marginal income rate. For most investors, this results in a significant tax savings. Check with your CPA for specifics.
Click the “Invest in this opportunity” button on our investor portal pages for each investment. If you have trouble, please email [email protected]
You’ll receive a K-1 for each investment that you’re invested in.
Ironton Capital offers investors three main investment opportunities:
- National Diversified Funds (growth fund)
- Short Term Income Fund (income fund)
- Individual Deal-by-deal investing
When you invest in a fund or syndication you’re investing as a Limited Partner (LP). You become a direct owner in the LLC that owns the projects and properties.
The LLC Members are protected from any additional liability beyond what they have committed in their capital contribution.
Syndications are typically a single asset or project investment. It’s similar to buying stock in one company.
Funds have multiple assets or projects. A fund is similar to buying a mutual fund made up of multiple stocks.
Ironton Capital primarily focuses on offering real estate funds for diversification to lower risk.
It depends on what you’re investing in with us. The Short Term Income Fund is an income fund and doesn’t have any depreciation losses, so none will be pass through.
Our National Diversified Funds have two class shares with:
- Higher depreciation
- No depreciation, but a higher preferred return
You pick the class share that is best for your situation and investing goals!
Please check with the specific investment for details. If you have questions, please contact us.
We anticipate that we’ll get K1’s out after 4/15, so you will need to file a tax extension.
Our goal is to minimize your tax exposure.
- In year one and two, you can elect to get an allocation of depreciation, which many investors can use as a tax write off.
- We use cost segregation studies where possible to further accelerate how much depreciation we can allocate to you.
- Primarily in year three, if possible we’ll either start to sell or refinance assets. If we sell, you’ll get your initial capital back. The profit will usually be characterized as a long term capital gain. If we refinance, you get your initial capital back, which is a tax free event.
- If we are not able to sell assets in year three, in years four and five you will receive quarterly profit distributions from the operations of the assets. For most investors these will be taxed as ordinary income.
- In years four, five and six we’ll sell off assets that were not sold in year three. These profits will primarily be long term capital gains.