From the Desk of CF Capital: March Investor Report

Hello Friends and Investors, 
 
I hope you're doing well and ready to kick off spring time! All-around happenings remain productive for CF Capital as we navigate a hyper-active environment in the broader economy. It's certainly an important time to be informed of the many cross winds that are blowing, but also a great time to check in to understand how your mindset is being conditioned by the inputs you're allowing in. Our team with CF Capital is completely dialed in to understand the broader trends to anticipate and strategize around within our current and growing portfolio, and we remain positively focused on healthy growth amidst a time when many seem to be focusing on solely negative conditions. 

In early February, we attended the annual NMHC Conference in Las Vegas, and met with the industry's best and brightest to strategize in 2023 and beyond growth strategies, as well as contingency plans for navigating uncertain times in the multifamily space. Across a couple days, we met with 40+ strategic partners, brokers and debt providers and walked away with optimism, strengthened relationships, and many new investment opportunities to evaluate.

Mid February, we began our "State of the Investment" Webinars series for all active deals in our portfolio, to share with our current investors where we are relative to our plan and projections. We received overwhelmingly positive feedback from investors about this communication tool, and hearing directly from us on the details of how the business plan is performing, and how that impacts their investment with us. We're encouraged to continue to strengthen our relationship with our valued investors through this medium, as well as best in class communications and execution. 

We're continuing our hyper focused approach on portfolio management, and in particular leading our team in the standard of outperforming industry standards on collections, leasing, and renewals. While in Q4 we experienced somewhat of a slowdown in new leasing (which isn't abnormal, due to seasonality), we're very pleased with a substantial uptick in traffic in Q1. Beyond that, our teams at each asset have been shining in particular on collections (averaging over 95% across the portfolio) and renewals (averaging 10% across the portfolio), along with very positive trends on a month over month basis. These fundamentals remain our hyper focus, in addition to attracting and retaining the right talent on our sites (we just hired 3 new staff members across the portfolio) and pushing the ball forward on major capital expenditure projects (exterior projects including parking lots, electrical conversions, amenity conversions and ongoing interior unit renovations). Needless to say, our team has been working hard to deliver for our investors.

On the acquisitions front, our pipeline is growing and we're evaluating 12-16 deals that meet our acquisition criteria every month. We've got a couple deals right now that we're targeting closely, and are patiently aggressive towards securing our next opportunity for your consideration. Conventional wisdom in our space at the moment remains that the second half of 2023 will be highly compelling with more forced sellers than at any time over the past several years. We will absolutely keep you informed as this develops. For our acquisitions team, we're planning to hire an ambitious, high upside professional with character and energy to help us grow the CF Capital portfolio across the region in the very near future. A job posting will be coming soon, but if you are or know anyone who would be interested to discuss this opportunity, please reach out or make an introduction. This will be a life changing opportunity for the right talented individual.

This month, we're traveling out west once more to attend the Best Ever Conference for Commercial Real Estate Investors in Salt Lake City, UT. In addition to strengthening our current strategic partnerships, we're looking forward to expanding our network as opportunities in this next cycle begin to unfold. Tyler will be speaking on "Enhancing Your ROI by Elevating Communities Together," a concept that's near and dear to our hearts and that has been a separator for CF Capital. If you'll be attending the conference, please let us know and we'd love to make plans to get together in person. 

In Partnership, 
Tyler & Bryan 

PS. If you'll be in or around Louisville in late March, we'd love to invite you to attend our next event: The 2023 Real Estate Investment Landscape Moderated Panel & Event sponsored by LDG Development. Register for the event.

From the Desk of CF Capital: February Investor Report

Hello Friends and Investors, 

The 2023 sprint is now kicking into high gear - how did your first 30 days of 2023 go? The fact that it's already February is a reminder for us to course correct where appropriate and focus on what we've committed to for the first 90 days of the new year, along with the more grand vision we have for this year. While time passing can sometimes feel like a sprint, we're reminded that in the business of real estate investments, it's really a marathon. We're focused on long term relationships, long term decisions, and long term values. Your relationship with us is really the most important, and one that drives our thinking day in and day out. 

In the short term, the market is still absorbing much of the rapid shift that was initiated last year. While we're seeing a bit of an uptick in new acquisition opportunities since the turn of the year, we anticipate that the most compelling opportunities will begin to surface later in the year. That still could be later this quarter, and time will certainly tell. Nevertheless, we remain nimble and prepared to strike on game-changing opportunities to provide attractive investments for you to protect and grow your wealth during volatile times alongside CF Capital. We remain patiently aggressive. 

Throughout whatever stage of the market cycle we're in, our focus at CF Capital is on driving value to you, our highly valued investor partners. With that, we'd love to hear from you. What are the biggest dangers or challenges you're facing with your investments and finances this year? What do you see as your most powerful opportunities? How about your greatest strengths? Respond to this email and let us know exactly what's going on in your world from these angles, so we can support your most optimal outcomes. If you'd like to set up a virtual or in-person meeting, we'd love to make ourselves available for you - simply schedule a time with us via the link below.  

Prior to wrapping up this month's dialogue, we wanted to update you on a few things going on in our world, aside from the day-to-day blocking and tackling in the business and our prime focus on 'Elevating Communities Together.' Here's what else has been going on in our world: 

  • Louisville Business First did an expose on our new headquarters. Take a sneak peek here.

  • Elevate Podcast has a brand new podcast studio within the new CF Capital HQ. Some massive shows are coming out over the next month to help you elevate your real estate investment performance and lifestyle through mindset, mind expansion, and personal development.

  • Tyler recently has interviewed several highly influential thought leaders including Benjamin Hardy (Author of Who Not How, The Gap and the Gain - both with legendary entrepreneurial coach Dan Sullivan - Willpower Doesn't Work, and 10X is Easier Than 2X - coming soon - along with other highly impactful books). This episode, along with several others, are some of the very best and most impactful productions we've ever produced. Buckle up and get your notebook ready for some life-changing breakthroughs.

  • Bryan and Tyler, along with our marketing team, created a brand new presentation that shows you how to "Elevate Your Financial Security and Prosperity Through Apartments". If you want to learn exactly how CF Capital can help you reach your goals, you should absolutely check out this on demand webinar (coming soon!).

In summary, we deeply appreciate your partnership and interest in furthering your partnership with CF Capital. We're confident that exciting days and opportunities are on the near term horizon, and that for the long term, we will continue to capture upside together through course correction, adaptation, and expansion. 

In Partnership,  

Tyler & Bryan