Multifamily Insights

Jeff Weller is the co-founder and Co-CEO of Lion Real Estate Group, a vertically integrated real estate investment firm he launched in 2007 with partner Mory Barak. Jeff began his career in advertising in New York before returning to Los Angeles to work as a commercial real estate broker with Cushman Realty and Cushman & Wakefield. Lion started with a seven-unit apartment building in Santa Monica. Today, the firm owns about 8,000 apartment units across the country, is a part owner of a West Coast office platform, manages its own private equity funds, and runs an affordable housing separate account. Jeff leads capital raising and transaction sourcing from the firm's Nashville office. In this episode, Jeff Weller shares how Lion Real Estate Group grew from a single seven-unit building into an 8,000-unit platform, and why today's market is testing every operator. Jeff explains how his firm reviewed 119 sold deals and found that a 28% average IRR fell to 14 to 15% once cap rate compression was removed. John and Jeff also cover how to build a lasting 50/50 partnership, the return to real estate fundamentals, a Nashville deal no one else would bid on, and where Jeff sees opportunity today in older, well-located assets.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Separate the returns you created from the returns the market handed you Choose partners with different skills and shared ethics Return to fundamentals: location, special situations, and proper capitalization Look for value in deals others avoid or overlook Target older, well-located assets that can compete on rent Build a trusted brand that gives investors a reason to back you     Topics From Advertising to a Seven-Unit Building Jeff moved from advertising in New York to commercial brokerage in Los Angeles He partnered with Mory Barak, a former investment banker, and launched Lion in 2007 Their first deal was a seven-unit apartment building in Santa Monica Building a 50/50 Partnership That Lasts Jeff pushes for growth, Mory is cautious, and they meet in the middle Either partner can veto a deal Jeff leads fundraising, Mory leads operations, and both drive acquisitions Jeff says partnerships usually break down over personal conduct and values Separating Skill From Market Tailwinds Falling rates and cap rate compression masked many bad decisions over 40 years Lion reviewed 119 sold deals with a 28% average IRR With cap rates held flat, those deals produced a 14 to 15% IRR Lion hired Alison Brown, former president of Bridge Investment Group's property management business, as COO Getting Back to Fundamentals Great locations combine low supply with population growth Rapid syndicator growth on floating rate debt created serious operational strain A neighbor with about $3 billion of LA real estate called it "a get rich slow business" Buying What Others Would Not: The Nashville Deal Lion chose Nashville for its LA-like appeal, strong state governance, and no state income tax Its first deal was a 1960s property near the airport that could not attract a bid Lion fixed it up, improved safety and lighting, and sold at a strong profit Newcomers to a market can spot value that locals dismiss based on reputation Where Jeff Sees Opportunity Today Older assets in Class A locations as concessions burn off and new supply slows For smaller operators: older, well-located assets judged on replacement cost and obsolescence For Lion: 1980s and 1990s buildings at "main and main" with fixable issues or long-time family owners Fixed-rate Fannie Mae and Freddie Mac debt with positive leverage A Pasadena office building at 30 cents on the dollar, 90% occupied, at a 12 cap Lion's Fourth Fund Lion is raising its fourth fund, targeting $500 million Fund capital can also act as GP co-invest, with profits flowing back to the fund Jeff says this structure can lift a 14 to 15% IRR fund toward 20 to 25% He emphasizes alignment and skin in the game, especially when deals face problems     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set Jeff up for success: Taking on floating rate loans in 2021 and 2022. Those deals make up about 10% of the business but take 90% of the team's time to fix. Digital or mobile resource: ChatGPT, especially on his phone, to point him in the right direction when researching. Book recommendation: Roll the Calls by Ari Emanuel, for its lessons on failure and the resilience to keep going. Daily habit: Watching a movie or TV show with a lot of violence each night to calm down and take his mind off the business, followed by dinner with his family. #1 insight for scaling in today's economy: Raise capital by building a trustworthy brand. Investors need to understand what you stand for, and you need to commit to your convictions and act when the market creates opportunity. Favorite restaurant in Nashville, TN: Hattie B's.     Next Steps Learn more about Lion Real Estate Group here: lionreg.com Remove cap rate compression from past returns to measure the value you created Define partner roles, decision rules, and shared values before scaling Evaluate deals on location, supply, population growth, and capitalization Underwrite with fixed-rate debt and positive leverage in mind Look for older, well-located assets others are overlooking       Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.  

This week, learn seven popular strategies investors use to grow and scale a real estate portfolio, plus a bonus strategy John plans to focus on more moving forward. John walks through single-family rentals, fix and flips, small multifamily, large apartments and syndications, short-term rentals, wholesaling, and REITs, covering how each one works, who it suits, and where investors run into trouble. Drawing on his own experience house hacking a two-unit property and losing money on three fix and flip projects while working full time in corporate America, John explains why many investors struggle after choosing a strategy that does not match their skills, time, or temperament. He closes with private lending, a passive way to earn real estate returns without the hassles of being a landlord or a flipper. If you are deciding where to focus your time and capital, this episode gives you a clear framework for matching the strategy to the investor.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Match your strategy to your skills, time, and appetite for hands-on work Budget for vacancies and big-ticket repairs before buying a rental Treat fix and flips as a daily, on-site business Use 2 to 4 units to offset your personal housing costs early on Run large apartments like a business, with professional teams and systems Consider private lending for shorter-term, passive real estate returns     Topics Single-Family Rentals Profit comes from rent exceeding all expenses, including the mortgage A single-family rental is either 100% occupied or 100% vacant Roofs, HVAC, electrical, and plumbing can wipe out years of profit Best for investors comfortable being a landlord and taking repair calls Fix and Flip John lost money on three flips while working full time in corporate America Success requires daily site visits, crew management, and construction knowledge Market conditions can shift your numbers over a four- to six-month project Small Multifamily and House Hacking John started by buying a two-unit property, living in one unit and renting the other 2 to 4 units combine residential financing with income from multiple tenants Hiring a property manager at this size squeezes margins Expect more lease renewals, maintenance, and neighbor disputes Large Apartments and Syndications At 50 to 100+ units, revenue supports professional management and vetted vendors Operators need finance, team-building, and investor relations skills Passive investors must vet deals and operators, and be comfortable giving up control Short-Term and Mid-Term Rentals Short-term rentals run like hospitality: daily rates, occupancy, and seasonality Furnishing a unit can cost $10,000 or more Local rules and licensing vary by city Mid-term rentals can serve traveling nurses and other temporary professionals Wholesaling Low capital requirement, but difficult to execute well Requires lead generation, a buyer network, sales skills, and ARV analysis Sellers often face hard situations such as probate, a death in the family, or hoarding Transactional: no equity or upside after the deal closes Real Estate Investment Trusts (REITs) Easy entry, flexible investment amounts, and the ability to exit John views REITs as stock investing through real estate companies Investors have little control, and REIT strategies vary widely Bonus Strategy: Private Lending You act as the bank, with the loan typically backed by the property The borrower does the work while you invest passively Terms can run six months to two years, versus five- or seven-year deals John's team plans to focus more on private lending as investor demand grows       📢 Announcement: Learn about our Apartment Investing Mastermind here.     Next Steps Assess which strategy fits your skills, time, and temperament Stress-test rental numbers for vacancies and major repairs Skip fix and flips unless you can be on site and manage crews Consider house hacking a 2 to 4 unit property to get started Vet operators and deals carefully before investing passively Explore private lending if you have capital for a shorter term     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

Andrew Cramer is the founder of Bridgeview Asset Management, which invests in value-add manufactured housing communities across the greater Pacific Northwest. He has completed more than 40 manufactured housing community (MHC) transactions, and his team focuses on home technology, park development, and operations. Andrew entered manufactured housing in 2011 with no real estate background, buying his first mobile home park with a 12% loan from a family connection. Over roughly 15 years, he has also invested in apartments and single-family homes. Today, he pairs investment management with active advocacy for manufactured housing as an affordable housing solution. In this episode, Andrew Cramer explains why the stigma around manufactured housing comes from pre-1976 construction, and how the federal HUD code reshaped the product. He walks through Bridgeview's value-add playbook, from recovering lost density and submetering utilities to community improvements that qualify parks for agency financing. Andrew also shares why the order of operations decides whether residents work with you or against you, and where the recession-resistant reputation of manufactured housing holds up.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Invest in the community before raising rents Use recovered density to add lots without a full land use process Submeter utilities to cut expenses and give residents control Target agency financing to raise value without relying on rent growth Work with city officials, even when you are right     Topics The Stigma Around Manufactured Housing Most of the bias traces back to homes built before the 1976 HUD code Every manufactured home since then follows a single federal standard Factory building means controlled conditions and centralized inspection Manufactured Housing as a Wealth-Building Tool A two-bedroom manufactured home often costs the same or less per month than a two-bedroom apartment Andrew says that resident can accumulate about $55,000 over five years The stigma steers lower-income renters away from ownership Invest in the Community First Paved roads, playgrounds, and locking mailboxes rarely add rent directly Those improvements earn resident buy-in for future rent increases Raising rents on day one creates an immediate adversarial relationship Andrew finds illicit activity usually stems from mismanagement and fades once investment begins How Improvements Unlock Agency Financing Upgrades can push a park into Fannie Mae and Freddie Mac qualification Better rates and terms raise value even if rents do not move Agency-quality assets attract a larger pool of buyers What Modern Manufactured Homes Look Like Andrew dates the modern manufactured home to around 2005 Recent HUD revisions removed the chassis requirement and allow stacked two-story homes He says the functional difference between manufactured and modular homes is gone Local inspectors may push back, and cooperation works better than confrontation Bridgeview's Value-Add Playbook Recovered density: documenting historic spaces to add lots as an existing nonconforming use Expense reduction: submetering water, which typically cuts usage by 25% or more Community investment: improvements that support agency qualification Rehabbing vacant homes early to improve the community and prove market rent Converting renters into homeowners wherever possible Is Manufactured Housing Recession Resistant? Affordable housing captures people moving up and people moving down Homeowner-heavy communities see much lower turnover than apartments Lower turnover also slows rent growth in strong economies Residents can unify against an operator, so management quality matters     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set Andrew up for success: Picking a fight with a city, even when he was right. He won in court and is still paying for it, because the city is not going anywhere. Digital or mobile resource: ChatGPT, used as an educational resource rather than a tool to do the work for you. Book recommendation: Good to Great by Jim Collins. Daily habit: Writing down ten things to accomplish the next day before going to bed. #1 insight for investing in manufactured homes: Get educated. Tour a manufactured home factory near you, and stay in a manufactured home through Airbnb. Favorite restaurant in the Portland, OR area: Sushi spots in Vancouver, WA.     Next Steps Learn more about Bridgeview Asset Management here: bridgeviewassetmanagement.com Follow Andrew on LinkedIn for his writing on manufactured housing Schedule a tour of a manufactured home factory near you Browse current models from manufacturers such as Cavco, Marlette, and Palm Harbor Identify community improvements that drive retention and financing upside Sequence improvements before rent increases       Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

This week, learn how to set yourself up for a strong exit on a multifamily deal. John points out that investors spend plenty of time on underwriting, finding markets, and raising capital, but rarely talk about the disposition, even though much of a successful exit is decided by the assumptions made on day one. John walks through how to identify the ideal buyer for your asset, why he gets a broker opinion of value (BOV) on every property at least annually, how loan terms and interest rates shape what the next buyer can pay, when a refinance makes sense as an exit, and the fees and taxes many operators forget to underwrite. If you want to protect your returns at the finish line, this episode gives you a practical checklist for planning the exit before you close.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Plan your exit at acquisition, starting with your underwriting assumptions Identify your ideal buyer and position the property for what they need Leave room for the next buyer to create value Get a broker opinion of value at least annually on every asset Know your prepayment penalty and how today's rates affect the next buyer Budget for disposition fees, taxes, and late costs before you sell     Topics Why the Exit Gets Overlooked Most investing conversations focus on underwriting, markets, and capital raising A strong exit starts with the assumptions you make going into the deal Most operators underwrite a five-year hold Know Your Buyer Match your property class and business plan to the buyer most likely to pay top dollar Likely buyers include family offices, syndicators, mom-and-pop operators, and busy professionals Busy professionals often want stabilized, cash-flowing assets that are easy to operate Value-add buyers need upside left in the deal Buyers Are Sophisticated Doing the bare minimum for two or three years will not command a premium Expect buyers to dig deep into your numbers and operations Problem assets attract value buyers who will not pay top dollar Use a Broker Opinion of Value (BOV) John recommends a BOV on every property at least once a year BOVs are usually free, so only request them from brokers you would trust to sell the asset Brokers provide a valuation range plus feedback on rents, expenses, and likely buyers Use the BOV as a working plan to reach the top end of that range A 1031 exchange buyer is one example of a buyer who may pay a premium Loan Terms and the Cost of Capital Know your loan type and your prepayment penalty Penalties of 2% to 5% can cut a projected 20% IRR to 15% Determine whether a buyer can assume your loan or needs new financing Moving from 3% to 7% rates sends an extra 400 basis points to the lender If you would not buy your property at today's rates, do not expect someone else to Refinancing as an Exit A refinance can return capital, buy out partners, or fund reinvestment Choose a loan that allows refinancing without a heavy penalty Refinancing into higher rates raises payments and pressure on performance A bridge-to-perm structure builds the refinance into the plan from day one Fees, Taxes, and Late Costs Account for disposition fees, broker fees, and state and federal taxes Negotiate broker fees where possible Expect late invoices: John received a vendor bill 11 months after a sale Unbudgeted disposition costs can drastically shift final returns       📢 Announcement: Learn about our Apartment Investing Mastermind here.     Next Steps Define your ideal exit buyer before you close Request annual BOVs from brokers who could sell the asset Review your prepayment penalty and whether your loan is assumable Stress-test your exit against current interest rates Budget for disposition fees, taxes, and late invoices in your pro forma     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

This week, learn how to decide whether you should be an active or a passive real estate investor. John explains that many investors learn about one or two strategies, pick one, and never check whether it matches their goals, financial situation, employment, and available time. John defines both roles, then walks through a framework built on your investing background, what you actually want, and whether you have the systems and team to operate a property. He also takes on the belief that hiring a property manager turns a rental into a passive investment, using the math on a $150 monthly management fee to show why owners still have to manage the manager. If you are weighing your next move, this episode comes down to one question: do you want to own a business or an investment?     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Match your strategy to your goals, finances, job situation, and available time Lean active if you have real estate experience and want control Lean passive if you want to learn first or avoid day-to-day issues Build systems, processes, and a vetted team before going active Treat an active investment as a business, even with a property manager in place As a passive investor, do the heavy vetting up front, then follow the updates     Topics Defining Active and Passive Investing Active investors make the decisions and own the outcome of the investment Examples: flipping, owning a rental, or being a general partner on an apartment syndication Passive investors put money in a deal while someone else makes the decisions Examples: being a limited partner or a private lender Start With Your Investing Background Experience with construction, rentals, or property management points toward being active Without that experience, John suggests leaning passive to learn before making the shift Decide What You Actually Want Having experience does not mean you want to keep doing the work Consider how you feel about weekend calls and late-night texts Hiring a third-party property manager still leaves the decisions with you Systems, Processes, and Team Active investors need processes for work orders, rent collection, late rent, and evictions Sourcing, vetting, and managing contractors and team members takes time If you are unwilling to invest that time, passive investing may serve you better Business or Investment? John calls this the biggest question in the active versus passive decision Being active means running a business with systems, processes, and vendors Being passive means evaluating an opportunity, investing your capital, and stepping back Why a Property Manager Does Not Make You Passive John calls the idea that hiring a property manager makes you a passive investor "BS" A manager charging 10% on $1,500 in rent collects $150 a month When you are one of 50 units, the manager handles issues only as they come up Owners should check in at least monthly and track occupancy and KPIs What Passive Investors Still Need to Do The heavy lifting is up front: vetting the people, the deals, and the strategy After investing, read the updates and follow occupancy and performance Someone else is responsible for fixing issues and making changes After the Deal Closes Every deal has unforeseen circumstances, such as a missed permit or a plumbing stack replacement Active investors have to manage those changes day to day       📢 Announcement: Learn about our Apartment Investing Mastermind here.     Next Steps   Join the Investor Insights community on Facebook to connect with other investors Reach out to John's team to discuss passive investing opportunities Decide whether you want to run a business or own an investment Assess your experience and how much time you can commit If you go active, set up your processes and team, and find a mentor if you need one If you go passive, define the operators, deals, and strategies you will vet     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.