From ramshackle homes to million-dollar ventures
Matthew Crouch is revolutionizing the housing industry, creating housing solutions for households throughout Indiana, and making a profit for financial partners along the way. But the roots of Sequoia Capital Management are humble indeed.
Father and Son
Chris Crouch, Matt's father, began developing subdivisions in the 1980s. In the early 2000s, seeking to supplement his income, Chris read a book about flipping houses, used the line of credit from his own home to fund the endeavor, and started on his first project. Matt, who was finishing college at the time, watched as his dad successfully purchase, repair and sell a few houses. However, by the time Matt finished college and joined his dad in the real estate venture, the Crouches received devastating news. Chris Crouch had stage four prostate cancer with a limited life expectancy. Chris Crouch died three years later at the age of 56.
Matt was heartbroken and confused. No money. No line of credit to access, and no idea how to raise capital. Despite these obstacles, Matt realized he was also at a crossroads. Would he give up his dream of real estate investment, or would he, together with his young wife, Nicole, dig deep, fight hard and take the risks needed to be successful?
The $6,000 House Flip
Dig deep they did. Convincing another young friend to join the effort, (because they didn't have the money) the Crouches purchased a ramshackle falling-apart house for $6,000. Completing all the work themselves, (because they couldn't afford help) they worked tirelessly and sold the house for a profit. Sequoia Capital Management was born.
Slowly, junk house after junk house, the Crouches began building a business. In 2012 they decided to go big or go home. Matt obtained a real estate license and, together with Nicole's real estate brokerage, transitioned to full-time...the same week their first child was born! Even as their young family grew quickly - three boys in quick succession - Matt and Nicole continued to dream. And, as Matt completed his Master's Degree in Commercial Real Estate Development, a new idea begin to emerge.
After flipping about 100 houses, Matt's understanding of the real estate market had grown dramatically. As the market recovered from the collapse of 2008, interest in his flipped homes increased substantially. In fact, in recent days, homes for sale garnered multiple offers and often spurred bidding wars. Matt was intrigued. Although this situation was great for profits, he also considered the demographic seeking a piece of the American dream at an attainable price point. Who were they?
A Forgotten Demographic
Today, in the Indianapolis metro area, much like metro areas across the Midwest, builders are producing homes that sell between $175,000 and 235,000. Young professionals and even older families are snapping up these "starter homes." But what about working households that cannot afford that price point? Seemingly, no one considers this demographic - those working families that make too much for government housing assistance, but who make too little to own even a basic home in a decent neighborhood.
Making Money and Impact Combined
Matt determined that Sequoia Capital Management would address the crisis of attainable housing head-on, while generating productive investments for clients at the same time. The first step was identifying how to create a cost-efficient process for constructing homes. Matt had experienced the inefficiencies of home remodeling first-hand and understood that these same inefficiencies existed in new home construction. Labor shortages, material costs and construction delays drove the cost of even sub-par construction out of reach. There had to be a better way.
Volumod Factory Launches
By partnering with other forward-thinking real estate experts, Matt's dreams are becoming reality. Instead of the delay-ridden inefficiencies of traditional construction, Volumod, a factory opened in 2021 on Indianapolis' east side, will produce efficient, sustainable, innovative and attainable homes. These homes undergo the construction process in a factory environment and are then transported to the site to be set by crane on a permanent foundation. By removing the inefficiencies, these homes help meet the housing shortage and bring great investment potential simultaneously.
Looking to the Future
The future is bright at Sequoia Capital Management! Matthew & Nicole Crouch remain unflinchingly determined to create wealth for investors while bettering the community and addressing housing shortages in middle-income America. Are you ready to take your investment and impact potential to the next level?
Matt and his father, Chris Crouch, in 2008.
The first Crouch real estate flip
The Crouch family, 2021
Volumod LLC modular factory, Indianapolis