Building a Billion-Dollar Multifamily Portfolio W Zach Haptonstall
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Episode Description
In this special live episode of the On The Rise Podcast, host Jeremy Dyer sits down with his close friend and Rise48 Equity CEO and co-founder Zach Haptonstall for a wide-ranging conversation on what it really takes to build one of the fastest-growing multifamily real estate companies in the country. Zach shares his journey from a lower-middle-class upbringing in Phoenix to overseeing more than 11,000 units across three markets — and the years of grinding, near-bankruptcy, and hard lessons in between. He breaks down Rise48's vertically integrated model, how the company is navigating today's supply-heavy market, and why AI is about to fundamentally reshape how real estate companies operate. A must-listen for investors, operators, and entrepreneurs alike.
Summary
1. Laser Focus Beats Shiny Object Syndrome Every Time Zach credits much of Rise48's growth to an almost obsessive commitment to staying in one lane — buying a specific type of multifamily deal in specific markets and refusing to stray. Every time he has chased ancillary opportunities, it has come at the cost of the core business. The lesson: go deep, not wide.
"I don't want to be average in a bunch of different things and make money. I want to be elite in one thing."
2. The First Three Years May Look Like Failure — Keep Going From 2018 to 2020, Zach bought six deals worth $60 million and made almost no personal income. He was paying minimum credit card payments, relying on his girlfriend to cover their bills, and questioning everything. The breakthrough only came when those first deals sold and he reinvested every dollar back into building infrastructure.
"When 36 months go by and you are dead broke and you have nothing to show for your effort, you don't feel like you're growing quickly."
3. Vertical Integration Is the Ultimate Risk Reducer After repeated failures with third-party property managers and construction companies — blown budgets, missed timelines, unaccountable staff — Rise48 built its own property management and construction companies from scratch. Full control over staffing, supply chain, and renovation pricing has proven to be one of their biggest competitive advantages.
"My all-in price per door for labor and materials is fixed and flat. I don't care if in two years there are tariffs or supply chain issues."
4. Reinvest Profits Into Infrastructure Before Lifestyle When Rise48 started selling its first deals and generating millions in liquidity, Zach and his partners made a deliberate choice to pour those profits back into hiring, systems, and infrastructure rather than coasting on a lifestyle business. That reinvestment mentality is what allowed exponential growth to follow.
"We took all our profits, literally, and reinvested into infrastructure, because our goal is to be one of the biggest real estate companies of all time."
5. The Right People in the Right Seats Changes Everything As Rise48 scaled to 350 employees across three markets, Zach implemented Culture Index — a psychographic evaluation tool — to make smarter hiring decisions and identify mismatches within the existing team. Combined with a clear set of core values, it has allowed the company to maintain high accountability and a performance-driven culture at scale.
"By the time you're 12 years old, the data shows that these are your tendencies. It really helps you identify what type of person you want in that role."
6. Today's Market Calls for Operational Value-Add, Not Renovation With new apartment supply flooding Sunbelt markets and rental premiums compressed, Rise48 has temporarily pivoted away from interior renovation strategies toward operational upside — bulk cable contracts, valet trash, carport revenue, and other NOI-boosting tactics that require little to no capital expenditure.
"I haven't had to increase the rent or the cost to the tenant at all, but I've significantly increased the net operating income at the property level."
7. The Supply Cycle Is Turning — and Buyers Are Being Rewarded Zach believes the market is at or near the bottom, with new apartment supply expected to be fully absorbed by late 2026 or early 2027. With little new construction breaking ground since 2022, a significant housing shortage is likely coming — creating strong tailwinds for investors buying distressed assets at 30–50% discounts from peak pricing today.
"We think we probably have a 12-month window here before that changes."
8. AI Is Not a Buzzword — It Is a Business Transformation A self-described AI skeptic just months ago, Zach has completely reversed course after watching Claude Code automate two weeks of monthly distribution work in two days for $200. Rise48 has formed an internal AI committee and is now building a proprietary operating system using AI-generated code — eliminating reliance on expensive SaaS platforms and software engineers alike.
"We saved six months, we saved at least $100,000, and we realized our investor portal is worthless now. In two days with Claude Code, he automated all the distributions."
Resources
Website: rise48equity.com
