CRAFT CAPITAL INVESTMENTS
CRAFT CAPITAL INVESTMENTS
OUR PHILOSOPHY
While we welcome all investors to join us in our journey of financial security and independence, it’s important to us that our values and investment philosophy are aligned with the investors we select for each project. Below you’ll find the tried and tested framework that has not only helped me and my family become financially secure but has made hundreds of investors financially independent and allowed them to retire early, start the business of their dream, and, most importantly, allowed them to spend more time with the people they love.
- Gabe
OUR PHILOSOPHY
While we welcome all investors to join us in our journey of financial security and independence, it’s important to us that our values and investment philosophy are aligned with the investors we select for each project. Below you’ll find the tried and tested framework that has not only helped me and my family become financially secure but has made hundreds of investors financially independent and allowed them to retire early, start the business of their dream, and, most importantly, allowed them to spend more time with the people they love.
- Gabe
OUR INVESTMENT FRAMEWORK
PILLAR #1
Pick a Great Market
While commercial investments can be found in every city, state, and country around the world, the CCI team is focused on developing assets in the Sunbelt region of the United States. The reason for this is simple:
• Sunbelt states tend to have a beneficial affordability gap that maintains a strong market of potential renters.
• Migration patterns have resulted in Sunbelt states seeing both population and job growth at an unbeatable rate.
• A business-friendly regulatory environment that allows for the timely and orderly eviction process allows us to maintain property values and not become embroiled in messy tenant disputes.
PILLAR #2
Find a Great Deal
Inside the sunbelt, there are a lot of deals that come across our team's desk, but great deals, the ones we really want to invest in, can be hard to come by. This is because we have strict requirements in place on every deal to ensure our money and our investors' money is invested wisely. To start, we’re only invested in opportunities requiring a minimum investment of $10mm. The reason for this is simple. We’re not looking to become slumlords of low quality or poorly maintained properties, nor are we looking to invest in projects that will require complex and time-consuming rehabs just to make the property livable. Setting our bar at $10mm allows us to filter through the mountains of deals efficiently so we can spend the majority of our time conducting due diligence on the qualified projects we find. Lastly, it allows us to leverage the economies of scale to hire full-time leasing managers and maintenance service people to ensure the tenants at our property are well taken care of and our business plans are well executed.
PILLAR #3
Build a Great Team
Success is a team sport. We leverage the time, experience, and knowledge of the best teammates in the multifamily business. These include commercial lending advisors with the most knowledge of capital markets and lawyers specializing in these sometimes complex transactions. We also bring in engineers with expertise in cost segregation studies so that you get the best result and save money on taxes and the best contractors, property managers, and specialists in every aspect of the assets we manage so that your returns are maximized and our investment is well taken care of.
PILLAR #4
Invest in a Great Asset
With each project, we invest $5,000 to $9,000 per door in efficiency, modernization, and quality of life updates for our tenants. These updates allow us to life rents to market rate and improve the quality of life for our tenants. While each project requires a unique set of updates, common improvements include low-flow shower-heads and toilets to promote water conservation, additions of family-friendly amenities like dog parks or splash pads, and repairs of all deferred maintenance such as unsafe stairways, rotted siding, or damaged roofing. The beauty of these assets is that when you invest in them the payback is exponential and investment performance is optimized.
PILLAR #5
Sell at a Great Price
Over the investment horizon of between three to seven years our team regularly monitors the performance of the asset. We believe that great property management companies are vital for day-to-day operations. The partners must "guide the ship" and ensure the business plan is executed as written. In addition, we must work with our property management service providers to update our business plan when necessary to take into account the variety of factors that will impact our returns. Assisting our partners is a team of strategic advisors that help us identify trends, avoid pitfalls and overcome challenges.
OUR INVESTMENT FRAMEWORK
PILLAR #1
Pick a Great Market
While commercial investments can be found in every city, state, and country around the world, the CCI team is focused on developing assets in the Sunbelt region of the United States. The reason for this is simple:
• Sunbelt states tend to have a beneficial affordability gap that maintains a strong market of potential renters.
• Migration patterns have resulted in Sunbelt states seeing both population and job growth at an unbeatable rate.
• A business-friendly regulatory environment that allows for the timely and orderly eviction process allows us to maintain property values and not become embroiled in messy tenant disputes.
PILLAR #2
Find a Great Deal
Inside the sunbelt, there are a lot of deals that come across our team's desk, but great deals, the ones we really want to invest in, can be hard to come by. This is because we have strict requirements in place on every deal to ensure our money and our investors' money is invested wisely. To start, we’re only invested in opportunities requiring a minimum investment of $10mm. The reason for this is simple. We’re not looking to become slumlords of low quality or poorly maintained properties, nor are we looking to invest in projects that will require complex and time-consuming rehabs just to make the property livable. Setting our bar at $10mm allows us to filter through the mountains of deals efficiently so we can spend the majority of our time conducting due diligence on the qualified projects we find. Lastly, it allows us to leverage the economies of scale to hire full-time leasing managers and maintenance service people to ensure the tenants at our property are well taken care of and our business plans are well executed.
PILLAR #3
Build a Great Team
Success is a team sport. We leverage the time, experience, and knowledge of the best teammates in the multifamily business. These include commercial lending advisors with the most knowledge of capital markets and lawyers specializing in these sometimes complex transactions. We also bring in engineers with expertise in cost segregation studies so that you get the best result and save money on taxes and the best contractors, property managers, and specialists in every aspect of the assets we manage so that your returns are maximized and our investment is well taken care of.
PILLAR #4
Invest in a Great Asset
With each project, we invest $5,000 to $9,000 per door in efficiency, modernization, and quality of life updates for our tenants. These updates allow us to life rents to market rate and improve the quality of life for our tenants. While each project requires a unique set of updates, common improvements include low-flow shower-heads and toilets to promote water conservation, additions of family-friendly amenities like dog parks or splash pads, and repairs of all deferred maintenance such as unsafe stairways, rotted siding, or damaged roofing. The beauty of these assets is that when you invest in them the payback is exponential and investment performance is optimized.
PILLAR #5
Sell at a Great Price
Over the investment horizon of between three to seven years our team regularly monitors the performance of the asset. We believe that great property management companies are vital for day-to-day operations. The partners must "guide the ship" and ensure the business plan is executed as written. In addition, we must work with our property management service providers to update our business plan when necessary to take into account the variety of factors that will impact our returns. Assisting our partners is a team of strategic advisors that help us identify trends, avoid pitfalls and overcome challenges.
Why We're Different
We treat you like the partner you are through open, honest, and transparent communication and a service-first approach.
We aspire to share knowledge freely and educate our investors with a “teacher’s heart,” always staying up-to-date with the latest news and market fundamentals.
We believe that our clients deserve only the highest performing assets that will deliver win-win-win scenarios and consistent returns to help you reach your financial goals at a predictable pace.
Why We're Different
We treat you like the partner you are through open, honest, and transparent communication and a service-first approach.
We aspire to share knowledge freely and educate our investors with a “teacher’s heart,” always staying up-to-date with the latest news and market fundamentals.
We believe that our clients deserve only the highest performing assets that will deliver win-win-win scenarios and consistent returns to help you reach your financial goals at a predictable pace.
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