073: Impact Investing with Jeff Kissee

SHOW NOTES FOR EPISODE 073 –  IMPACT INVESTING WITH JEFF KISSEE

Making and keeping happy tenants pays off!  Not just in increased profits but in broader sense of impacting individual lives and entire communities.  In this episode, Jeff Kissee, the co-owner of Capital 8 Group LLC, talks about “Impact Investing” and how this powerful tenant-driven model has transformed his business, the tenants in his apartment communities and the communities were his assets are located.

About Our Guest

Jeff Kissee

Jeff Kissee is a full time real estate investor, licensed General Contractor, California expert in construction and alternative energy, licensed Colorado Real Estate Agent, and co-owner of The Capital 8 Group LLC. He has sat on building committees for his community as well as on the board for the Home Builders Association.  In 1995, Jeff and his wife Shari relocated to Colorado and together they built Lyntal Construction Company from the ground up, a very successful general contracting business specializing in the construction of high-end custom single family homes.  Later they shifted from their construction business to full-time real estate investing. Some of their specialized real estate investing training includes: Apartment Acquisition and Emerging Markets, Private Lending for Commercial Properties, Short Sale Certification, Special Needs Housing, Highly Effective Property Management, Syndication, Contract Analysis and Negotiation Skills Development, Repositioning of Apartments and many more.  Jeff and Shari are also big believers in giving back to their community and have been involved with their local food bank, Project Angel Heart, Miracle Flights, Special Olympics, Adopt a Family, Athletes in Action, military veterans outreach associations and many more.

What is Impact Investing?

• When they started their new company, Jeff and his wife Shari wanted all of their investments with a purpose to positively impact investors, tenants and the community as a whole
• They partner with investors to purchase properties that were:
  • Built between 1960 and 1985
  • Most of these properties were built in a sterile state to only house people, not provide communities
  • Very energy inefficient buildings
  • One of their goals is to improve the lives of the people living in these apartments and improve the buildings so that they create less of an energy footprint – thus improving the broader community as well
• Didn’t know that they were impact investors until someone showed them that was the case

Focus on the Tenant First

• His goal is to focus on the tenant first
• Create more of a social environment

Impact Investing Case Study

• 130 Unit Apartment
• Built in 81 or 82
• Purchased in May 2016
• Walked the property to see what they could do to appeal to the tenant and the tenant’s needs
• Changed out the central boiler/water heater the first week, reducing energy consumption between 20-30%
• Added colorful “splash pad” for the children to play in
• Built colorful play area for the kids
• Added a dog park
• Added shaded picnic/barbeque area
• Created a vibrant community where the neighbors can interface

Other Amenities

• Bicycle storage
• Bike repair stations (has air and tools)
• Pet washing stations (less hair clogging in bathroom tubs)
• Trash valet (target single ladies and elderly) – 2 times per week, trash pick-up at their front door
• Sand volleyball
• In leasing office: self-improvement books, free to chec-out
• Classes: resume classes, personal trainers on eating habits
• Dry cleaning pick-up (designated lockers)

Other Dollar Benefits for the Landlord

• Lower maintenance costs (plumbing)
• Less turn-over expenses (people stay longer)
• Lower marketing costs (easy to attract and keep tenants)

Three Goals of Each Apartment Community

• Impact the tenants
• Reduce energy costs and water consumption
• Get good return-on-investment for investors

Water Conservation Tips

• Call the city and ask for recommendations (they may reimburse you)
• 6 gallon toilets
• Faucets and shower heads with water restrictors

Ideas for the Greater Neighborhood Community

• Other owners see what you are doing and do similar improvements, thus improve the neighborhood
• In one town, the city asked Jeff to look at purchasing other apartments to do the same
• Contact your local police department and ask them for info on “life safety issues” and tips on how to make an apartment as safe as possible

Use of Amenities by Non-Tenants

• Seldom a problem because tenants self-enforce usually address non-tenants trying to use amenities

Communication through Social Media and Emails

• Keeping tenants informed of services and activities through their Facebook page and through emails

Special Free “Impact Investing” PowerPoint Giveaway

• Just email and ask for it

How to Reach Jeff

• Email: jeff@capital8group.com
• His website: capital8group.com

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