How to Form Investor Relationships w/Yohannes Cramlet
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer is excited to welcome Yohannes Cramlet to today's episode to share how his immigration from Ethiopia affects his character now, why trust-base relationships are crucial in investing, what you can do today to take advantage of every opportunity, and much more.
Yohannes Cramlet is the CEO and Founder of Cramlet Capital, a private real estate investment firm, and GORAISE.AI, a SaaS platform for automated investor marketing and CRM. With over 25 years of experience in real estate development, sales, marketing, and technology, he has been involved in $1.5B in commercial real estate transactions, raised $300M in capital, and distributed $17.5M to investment partners. Originally from Ethiopia, Yohannes immigrated to the U.S. at age 4, later building a successful career in real estate, working with industry leaders like Arnold Schwarzenegger and Jonathan Holtzman, and leading acquisitions for Brookfield Properties, the largest REIT in the U.S. His passion lies in empowering investor relations professionals, helping them raise over $100M in recent years.
CONNECT WITH YOHANNES CRAMLET!
LinkedIn: https://www.linkedin.com/company/cramlet-capital/
Cramlet Capital: https://cramletcapital.com/
GoRaiseAI: https://goraise.ai/
Instagram: https://www.instagram.com/cramlet_capital/
Facebook: https://www.facebook.com/cramletcapital/
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Commit to Protecting Investor Money
“My money will be lost before their money is... the relationship is the most important thing.”
When raising capital, Yohannes emphasizes that the protection of investors' capital is paramount. He suggests that maintaining a strong commitment to safeguarding investor money, even at the risk of losing your own, fosters trust and long-term loyalty. This approach highlights the investor's importance and demonstrates a level of responsibility and dedication that transcends basic transactions.
Tip #2: Perform Rigorous Due Diligence
“You have to understand every aspect of a deal... you need to be prepared very prepared before you go into these things.”
Yohannes stresses that due diligence is a key component of making informed investment decisions. Real estate professionals need to thoroughly assess each opportunity, understanding both the technical and financial details. This ensures that investors' interests are properly protected and that deals align with both financial goals and operational capacities.
Tip #3: Focus on Building Long-Term Relationships
“It’s all about relationships and trust... the relationship that people develop with people is ultimately what moves the world forward.”
Trust-building is central to successful capital raising, and Yohannes places great emphasis on fostering long-term relationships over transactional exchanges. Cultivating trust through consistent actions, clear communication, and reliability will ultimately lead to stronger partnerships and sustained success in capital raising.
Tip #4: Leverage Personal Integrity and Reputation
“When I do due diligence on people... I’m looking at how they carry themselves and how they communicate.”
Yohannes points out that personal integrity and reputation play a huge role in the investment world. Investors and partners are more likely to invest when they believe in the individual’s character and commitment to their word. This underscores the importance of consistent, authentic behavior and transparency in building lasting business relationships.
Tip #5: Understand Your Investor’s Needs and Comfort Level
“You need to understand what their fears are... you need to understand their motivations.”
To effectively raise capital, it’s crucial to understand your investor’s mindset, including their fears and motivations. By taking the time to educate investors and build their trust, real estate professionals can tailor their approach to each individual, making them feel comfortable and confident in the investment process.
Tip #6: Practice Effective Communication
“If you commit to something and then do it... if you can’t do it, communicate effectively and say hey I can’t do this.”
Clear and honest communication is a cornerstone of trust. Yohannes emphasizes that if a commitment can't be met, the professional should inform the investor promptly and transparently. Maintaining open lines of communication helps to foster a reliable and trustworthy relationship, crucial for raising capital and managing expectations.
Tip #7: Build a Reputation for Consistency
“I will bend over backwards... I will do whatever I have to do.”
Yohannes demonstrates that consistently going above and beyond for your investors is essential in building a strong reputation. When investors see that you are committed to fulfilling your promises, they are more likely to reinvest and recommend you to others. This level of consistency enhances both personal and business credibility.
Tip #8: Create and Deliver Value to Investors
“At the end of the day, it’s about providing value... bringing value to your investors and building homes for people.”
Yohannes reflects on how creating value for investors, as well as for the community (e.g., building homes), is a central aspect of his business philosophy. Investors are more likely to invest when they see the tangible impact of the projects they fund. By focusing on long-term value creation, you build lasting relationships that go beyond financial returns.
Tip #9: Use Technology to Scale Capital Raising Efforts
“How do you build trust long-term... giving you the tools, the technology, and the infrastructure to scale.”
The use of technology, particularly automation and AI tools, can dramatically increase efficiency in raising capital. Yohannes advocates for leveraging these tools to enhance communication, streamline operations, and grow capital-raising efforts without compromising on the quality of relationships with investors.
Tip #10: Focus on Legacy, Not Just Prestige or Wealth
“It’s about legacy... what are my kids going to have?”
Yohannes shares that, over time, his focus shifted from seeking prestige and wealth to building a lasting legacy. This mindset shift is crucial for long-term success in real estate. By focusing on legacy, professionals are more likely to align with the broader goals of community-building, wealth preservation, and generational wealth, which resonate deeply with investors.
