Episode Summary:
In this episode of Real Investor Radio, Craig Fuhr and Jack BeVier discuss the current state of the real estate market with guest Justin Spillers, who shares insights from his experience in multifamily investing in Ohio. The conversation covers market trends, challenges faced by investors, and the importance of effective tenant management and screening. Justin recounts his journey from law to real estate, detailing his first deal and the lessons learned along the way. The trio also delves into acquisition strategies, operational efficiencies, and the significance of building a strong team to navigate the complexities of the real estate landscape.
Episode 104 Overview
Jack checks in from the IMN SFR West Conference and notes lower attendance. Even so, lenders still chase deals. However, he feels the optimism in the room ignores real challenges like slow sales and rising defaults. Around the bar, operators speak more candidly and focus on emerging opportunities.
Strong Multifamily Activity in Ohio
Justin shares a different outlook. Deal flow in multifamily real estate investing has increased, and sellers are more realistic on cap rates. Ohio also avoided the oversupply hitting markets like Austin. Consequently, banks now compete for loans, giving buyers more leverage.
Justin’s Start in Real Estate
Justin shifted from practicing law to entrepreneurship. After reading key investing books, he found a partner and bought a distressed seven-unit building. The property revealed the harsh realities of tough neighborhoods, evictions, and safety risks, yet it sparked their long-term strategy.
Improving Tenant Quality and Operations
Craig and Jack recall how difficult rentals can be in rough areas. Justin agrees and explains how strict screening standards and quarterly unit inspections transformed their portfolio. As a result, renewals improve, maintenance issues drop, and long-term success becomes achievable.
Why Their Approach Stands Out
Jack highlights Justin’s operational strengths. His detailed processes, disciplined systems, and hands-on management sets him apart from many inexperienced operators in multifamily.
Scaling the Portfolio
Justin and Brandon (his partner) reinvested every dollar from early deals. Because they kept other income sources, they never relied on cash flow to live. They grew steadily from single-family units into larger complexes through refinancing and disciplined acquisitions.
A High-Speed Acquisition and Turn System
Their team now sources deals through direct outreach, custom databases, and fast underwriting. Furthermore, their in-house construction team executes seven-day unit turns using standardized materials and coordinated crews. This speed strengthens their ability to take down more value-add properties.
