Episode Summary:
In this conversation, Justin Spillers discusses the challenges and strategies involved in fundraising and capital raising for real estate investments. He shares insights on innovative preferred equity structures, creative marketing techniques for seller outreach, and the use of technology and AI in operations. The discussion also covers tenant screening and retention strategies, as well as the unique approach of leveraging the LIHTC strategy for value-add opportunities in real estate.
Episode 105 Overview
In this Real Investor Radio episode, Jack BeVier and Craig Fuhr speak with Justin Spillers about scaling multifamily portfolios. At first, Justin explains that operations are not the problem. Deal flow is strong, and execution is consistent. However, capital becomes the limiting factor once performance accelerates. As a result, growth depends less on finding deals and more on structuring capital intelligently.
Why Preferred Equity Became the Right Fit
Historically, Justin avoided syndications and traditional funds. However, ambitious portfolio goals required outside capital. Consequently, his team created a structure built around preferred equity real estate investing. In this model, operators contribute a large portion of the equity and take first-loss risk. As a result, investors gain stronger alignment and downside protection. Above all, the structure remains simple and transparent.
Using Speed to Multiply Returns
Another key point is speed. Justin describes how his team shortens value-add timelines dramatically. In some cases, they renovate and pre-lease units before closing. Therefore, properties generate income immediately after acquisition. Compared to standard approaches, this strategy reduces risk and improves returns. All things considered, speed becomes a durable competitive advantage.
Finding Opportunity in Complexity and Systems
The discussion also covers light LIHTC properties. Although compliance adds complexity, fewer buyers compete for these assets. Over time, rent restrictions expire and values reset to market levels. In addition, Justin emphasizes disciplined systems. These include creative broker outreach, consistent capital raising, and daily use of AI tools. In conclusion, the episode shows how aligned capital, fast execution, and operational discipline drive scalable growth.
