Why I Chose One Operator Over everyone Else W/Maria Zondervon
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Episode Description
In this episode of the On The Rise Podcast, the tables are turned as Maria Zondervon — a seasoned passive real estate investor who has worked with multiple operators and asset classes — sits down with Rise48 Equity VP of Capital Formation Jeremy Dyer to ask him the question investors really want answered: why did you stop investing across dozens of operators and go all in with one? Jeremy shares the framework he developed after 70-plus deals across multiple asset classes, the three risk factors every investor should evaluate, why the heart of the operator matters more than the pitch deck, and how Rise48's vertical integration and supply chain strategy have protected investors through COVID, tariff scares, and a historic market downturn. A candid, investor-to-investor conversation that pulls back the curtain on how sophisticated passive investors actually make decisions.
Summary
1. From Active Flipper to Passive Investor to Capital Formation
Jeremy's real estate journey began with fixing and flipping homes during the global financial crisis. When kids arrived and time ran out, he and his wife pivoted to passive investing — eventually participating in nearly 70 different projects across multiple asset classes and operators. That depth of experience eventually attracted family and friends wanting to deploy capital the same way, which naturally evolved into his current role helping investors access Rise48's opportunities.
"My wife and I have invested in almost 70 different projects now, multiple different asset classes, multiple different operators. We've kind of done the whole spectrum."
2. Three Risk Factors Every Passive Investor Should Evaluate
After decades of experience across dozens of operators, Jeremy distilled his evaluation framework down to three core risk factors. Operational risk — does the operator control the day-to-day execution through vertical integration? Execution risk — do they have the infrastructure, team, and track record to carry out the business plan? And market risk — what are they doing to mitigate external forces no one can fully control?
"There's no such thing as a risk-free investment. So I really identify three major risk factors — operational risk, execution risk, and market risk."
3. The Fourth Risk Factor — Due Diligence on the Heart
Beyond the three standard risk factors, Jeremy now considers a fourth — the character of the operator. After 70-plus deals, he cares more about integrity, authenticity, and transparency than pitch deck quality or track record. Knowing, liking, and trusting someone is not enough. The question is whether you would trust them with a hundred thousand dollars of your own money.
"I care more about doing diligence of the heart as opposed to diligence of the deal itself. I want to know about their level of integrity, authenticity, transparency."
4. A Boring Buy Box Is a Feature, Not a Limitation
Rise48's buy box is deliberately narrow — B-plus class workforce housing in B-plus class neighborhoods, in markets with strong job growth and in-migration. Maria points out that operators who chase every asset class and every market create their own execution risk. You cannot pick up a 100-person team and move it to a new market. You have to build from scratch. Rise48's focus means their team, infrastructure, and supply chain are genuinely aligned with what they buy.
"Our buy box is very boring. We're not focused on asset classes that we don't know anything about — assisted living, self-storage, industrial, retail. Those are not asset classes we can execute on time and on budget."
5. Vertical Integration Protects Investors When Markets Get Hard
Maria recalls investing with Rise48 just after COVID when competitors could not get cabinets or appliances — while Rise48 had pre-COVID priced inventory already sitting in warehouses. That supply chain advantage is structural, not lucky. Rise48 sources materials wholesale from HD Supply and Billow's Warehouse, holds 12 to 18 months of inventory across three markets, and was building up additional stock ahead of the 2024 election specifically to lock in costs before potential tariffs took effect.
"At any given time, we have anywhere from 12 to 18 months of supplies ready to execute. We predicted tariffs were coming and locked in costs on the front end."
6. Over 325 Employees Across Three Fully Integrated Companies
Rise48 operates as three distinct companies — Rise48 Equity for investments, Rise48 Communities for property management, and Rise48 Construction for renovations. Every on-site employee — from the leasing agent to the maintenance technician — is a full-time W2 employee. That structure allows Rise48 to align compensation directly with business plan execution and respond instantly when performance needs to change at any property.
"All of the employees that are on site at each of our properties are all our own in-house W2'd paid employees. That allows us to align their compensation and incentives to the actual business plan."
7. The Market Cycle Is Turning — and Rise48 Is in Attack Mode
Jeremy and Maria discuss the evidence that the market has bottomed — transaction volume on severely distressed deals has slowed because the most distressed properties have already changed hands, concessions are starting to burn off, and organic rent growth is beginning to return. Rise48 is currently buying properties at 30 to 40% discounts from their 2021-2022 peak pricing, and the combination of declining new supply and sustained demand is setting up strong tailwinds.
"We're buying properties at a 30 to 40% discount on their original basis. It's a buyer's market and we're taking advantage of it."
8. New Supply Is Falling Off a Cliff — Which Is Exactly What Investors Need
One of the most important dynamics in the current market is the collapse of new apartment construction since interest rates spiked in 2022. Maria observes that developers who rushed to build during the demand surge are now delivering units into a cooler market — while the next wave of new supply has essentially stopped. When new supply falls and demand holds, units get absorbed, concessions burn off, and organic rent growth returns. That is the cycle Rise48 is positioning investors to benefit from.
"In the markets in which we operate, we're starting to see new supply really fall off a cliff. When new supply falls but demand remains, eventually those units get absorbed, which helps burn off concessions and bring organic rent growth back."
Resources
Website: www.rise48equity.com
