Investment Decision Process

At CapGain, we have certain guidelines or "rules" we follow with any type of investment we do.  Each are specific to the duration and type of investment we make.  Below are the high level criteria we look at to evaluate an opportunity in the "Development" portion of our business. 

Development Project Criteria

1.   Identify Location / Neighborhoods

  • High demand, proximity to Denver metro

  • Shopping and entertainment

  • High walk score

  • Neighborhoods that have seen success already

    • Not the first, not the last

  • Concentric rings from Denver center and out

    • Protected investments

 

2.   Inventory / DOM Evaluation

  • Critical to higher sales price and low DOM

3.   Diligent About Strong Comps

  • Realistic comp rules

  • Prior 6 months; ¼-½  mile radius

    • Similar square footage, beds/baths

    • Location within neighborhood

    • Homes with comparable finishes (primarily kitchen & baths)

 

4.   Run Proforma

  • Base decisions on worst case outcome – does it still look good?

  • Buy price is critical

  • But don’t be short-sighted and lose a deal over an insignificant amount

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