The Operator Who Turns $50K Homes into $150K Assets

From Flips to Multifamily to Syndication

Justin got his start in real estate after 12 years as a mechanical engineer. A book and a gut check pushed him to pursue more freedom for his family, even if it meant picking up hammers and flipping houses after hours.

Jarom was just a teenager when he joined. At 16, he was managing his first renovation, hiring classmates, learning codes, and finishing projects on budget. He kept showing up after school and weekends, stacking reps and experience.

Over time, they flipped dozens of properties, acquired small multifamily assets, and kept reinvesting their profits. They built 96 units through direct acquisitions and small JVs before ever raising outside capital.

Their first syndication was a 17-unit heavy value-add project with 17 LPs, nearly all friends and family. The property needed everything. Rotting pipes. Collapsing floors. Below-market rents. But it was close to home, and they had the construction background to execute.

They raised the capital in waves, renovated in phases, and brought it back to life.

The Play: Buy Deeply Discounted, Seller-Finance to End Buyers

Capable Capital focuses on a simple system:

• Buy homes for $50K–$60K in secondary markets where banks won’t lend

• Resell them for $120K–$150K with a low down payment and a 30-year note

• Charge monthly payments similar to market rent

• Let the buyer handle repairs, maintenance, and taxes from day one

Emanuel creates inventory that most lenders can’t. His buyers get ownership. His investors get income. And the company builds long-term value without relying on appreciation or renovations.

Why This Works

1. It solves a real housing gap
Millions of working-class families earn enough to own but can’t qualify for a mortgage. Capable Capital gives them a real path to homeownership with fair, fixed monthly payments.

2. It creates natural alignment
Because buyers own the homes, they treat them like it. They paint the walls, mow the lawn, and make improvements over time—driving organic appreciation.

3. It generates long-term income with low overhead
No contractors. No toilets. No property managers. The team focuses on sourcing homes and screening buyers while the model handles the rest.

What GPs Can Learn From This

Act like the lender, not the landlord
This isn’t rental income. It’s note income. That means no evictions, no calls at 2am, and no vacancy between tenants. You collect monthly checks while your buyers build equity.

Use price, not polish, to create upside
Emanuel buys low, sells at fair market value, and captures the delta without swinging a hammer. His model values structure, not finish-outs.

Find the invisible value
Everyone wants Class A tenants or 100-unit buildings. But there’s untapped value in the $50K to $100K home market—if you know how to structure it.

The Risks (And How He Manages Them)

Timing:
Their first syndication taught them that renovating too many units at once crushes occupancy. They now stagger CapEx more strategically to avoid cash flow dips.

Market selection:
They moved out of Oregon and Washington to avoid anti-landlord laws and scale in business-friendly markets like Ohio and North Carolina.

Capital constraints:
They started with friends and family but now have a system for building LP relationships early, staying in touch with regular updates, and expanding beyond their circle.

What You Can Learn (and Steal)

1. Buyer default
Capable Capital starts eviction on day 15 of missed payments. They’ve also built an investor-backed fund to handle short-term gaps and reduce friction.

2. Home condition
They sell the homes as-is, which lowers upfront risk. Buyers take responsibility for repairs, and often improve the property over time.

3. Regulatory pressure
Emanuel stays ahead of compliance by structuring the notes clearly and ensuring disclosures meet local standards. He wants buyers to win—and regulators to have no questions.

Listen to the full episode

🎙 Groundbreakers with Emanuel Stafilidis

In it, we cover:

• Why seller financing can create 3x forced appreciation

• How he built a 200-home portfolio without ever doing a renovation

• The playbook for turning distressed homes into cash-flowing notes

• How he helps working-class families become homeowners

• The risks of this strategy and how he protects investors