Episode Summary:
Overview of Episode 86
Ron Phillips didn’t ease into rentals, he was pushed. After the lending market collapsed in the mid-2000s, flipping became impossible. He had 13 rehab projects on the books and no way to sell them. That crisis forced him to explore rentals, a model he once mocked. But as he observed landlords building passive wealth while he hustled with flyers and contractors, his perspective shifted.
Instead of chasing quick wins, he started thinking long-term. That pivot laid the foundation for what would become a national turnkey investment business, RP Capital.
Scaling with Systems: Building RP Capital from the Ground Up
RP Capital’s early days weren’t glamorous. Ron’s first live event had three attendees. Still, he sold two properties. From there, he and his partner refined their model, focusing on underserved rental markets like Kansas City, Omaha, and Oklahoma City. They built investor clubs in multiple cities and sold hundreds of properties annually.
Their edge wasn’t just in inventory; it was in investor education. They taught buyers how to build real wealth through cash-flowing rentals. That focus on trust and repeat business paid off: around 70% of clients bought more than one property.
From the Road to Digital: Embracing Scale Through Technology
Constant travel wore Ron down. He wanted freedom – the kind he helped clients achieve. So, he began transitioning the business online, running digital campaigns and hosting virtual events. It worked. RP Capital expanded its investor base, and Ron got his time back.
But scaling brought a new problem. As portfolios grew, so did the need for better tools. Investors didn’t just want properties—they needed insight. They didn’t understand their full returns or how to optimize equity. And most property managers couldn’t provide the data investors needed to make smart decisions.
Solving the ROI Blindspot with Real Estate Technology
Ron saw that investors only looked at monthly profit and loss statements, which rarely reflected actual performance. They didn’t track principal paydown, tax benefits, or appreciation. That limited view led to frustration, even when their investments were thriving.
So, he built a platform that did what no property management report could. It visualized the full picture—real-time cash flow, appreciation, equity growth, and return on equity. Like a Robinhood dashboard for rental properties, this real estate technology gave investors clarity and confidence.
Empowering Property Managers with Better Data
Ron realized this platform wasn’t just for his clients. It had the potential to transform property management. Property managers, often undervalued, were stuck having tough conversations about repairs without any tools to show the bigger financial picture.
By giving them real-time data and performance insights, the platform flipped the script. Now managers could call clients and say, “Yes, we need a new fridge, but you also made $15,000 this year.” That shift in communication brought more trust, better relationships, and fewer complaints.
Launching Lineage: A Scalable End-to-End Investment Ecosystem
To bring the vision to life, Ron partnered with a tech founder and launched Lineage—a real estate technology platform that integrates with top PM software (like AppFolio and Buildium). It offers a seamless experience for both investors and property managers.
Lineage doesn’t just report performance. It also connects investors with curated property listings, vetted managers, competitive insurance, and lending partners. The entire transaction, from analysis to purchase, can happen within days, all on one platform.
Why This Is Just the Beginning
Lineage is already operating in 12 markets and running 50 transactions a month. The team is scaling fast, with a goal to reach 1,000 deals monthly by 2026. And while the platform is high-tech, its mission is deeply human: to help people build generational wealth through smart investing.
For Ron, this isn’t just a business. It’s the most exciting project of his career—because it solves real problems for real investors and finally delivers the kind of tech-enabled experience Wall Street has had for years.
