From Single Family to 5,000 Doors; How Did Devin Elder Trade Money for Time while Locking his 5,000 Doors in Multifamily
In the latest episode of Real Estate Investor MBA, I welcomed Devin Elder , a highly successful real estate investor, founder of DJE Texas Management Group, and podcast host. Known for his multifaceted expertise, Elder has built an impressive portfolio of over 5,000 doors in multifamily real estate. He shares valuable insights into his journey, his approach to scaling a real estate business, and how he navigates current market challenges. Listen in.
A Journey From Single Family to Multifamily Success
Devin Elder’s path to real estate success didn’t start in real estate; it began in his thirties. His initial venture was a single-family rental, which he purchased using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method. After hiring a coach, Elder was able to fast-track his learning and avoid common pitfalls. That first property, bought for under $40,000, proved to be a game-changer. By refinancing, he pulled out almost all his capital, generating positive cash flow and unlocking the potential of real estate investing.
His success in single-family properties led to a rapid expansion. Within a year, he acquired 10 single-family homes, and by 2015, he made his first foray into multifamily real estate, purchasing a six-unit building. At the time, this deal felt like buying a large single-family property, but it set the stage for his multifamily growth.
“The funny thing was… I had been using private lenders for several years, so I borrowed millions of dollars at this point. It took me going through that cycle to really run the numbers and realize that with the right team and guidance, I could scale this business,” says Elder.
In just a few years, Elder's investments grew significantly, and he became a principal in multifamily properties. He credits his first big break to a 75-unit property where he partnered with two General Partners (GPs) to raise capital and manage the deal. From there, the floodgates opened—Elder went on to acquire larger properties, including a 130-unit building, and rapidly scaled his portfolio.
Building a Vertical Integration Model
One of Elder's key decisions in scaling his business was creating a vertically integrated model. Instead of relying on third-party property management companies, he built his own property management team. This decision came from frustrating experiences with external management and the need to have more control over his operations.
Now, with over 70 employees, DJE Texas Management Group not only owns but also manages all of its properties. The vertical integration model has been instrumental in ensuring the smooth operation of his growing portfolio and building a culture within his company. “I’ve built a management company along the way, and that’s been a real blessing,” Elder explains.
With a team handling key areas like underwriting, property management, and asset management, Elder’s role has evolved. Today, his focus is on high-level strategy—finding the right people, building systems, and setting the company’s vision for the future. He describes his current role as being the “biggest investor” in his projects, but his passion now lies in creating opportunities for both investors and employees.
The Role of Mentorship and Leadership
Elder's experience highlights the importance of mentorship and delegation in real estate. From hiring his first coach to partnering with experienced investors for larger deals, he emphasizes how mentorship helped him accelerate his success. His advice to new investors is to find a coach or mentor who can help guide them through the complexities of real estate investing.
"People that are in their twenties and want to learn about multifamily can absolutely do it. If you apply yourself, sky’s the limit. It took me time to figure things out, but once I got the ball rolling, it just kept gaining momentum,” says Elder.
As he scaled his business, Elder’s approach to leadership evolved. He mentions the importance of creating a strong company culture, finding talented team members, and building systems that allow others to take ownership of key business functions. He refers to Dan Sullivan’s book Who Not How as his guiding principle—figuring out who can execute key tasks, rather than how to do everything himself.
Navigating the Current Market
As we enter 2025, the real estate market presents a mix of opportunities and challenges. Like many investors, Elder is feeling the pressure from current market conditions, especially with interest rates affecting deals. In recent months, the deals he’s pursued haven’t been able to pencil out, and he's becoming more cautious about entering new multifamily projects.
“We’ve been throwing offers against the wall, but things aren’t sticking. Prices are at a discount, but with the current debt markets, it’s hard to make the numbers work,” Elder admits.
However, he remains optimistic, leveraging his relationship-driven approach to secure capital for alternative deals. His firm has also begun exploring other types of investments, such as land, to diversify in response to the changing market landscape.
The Path to Real Estate Success
Devin Elder’s story serves as a powerful reminder that success in real estate is a journey of learning, growth, and adaptation. From his first single-family rental to managing over 5,000 doors, Elder's approach emphasizes the importance of mentorship, delegation, and finding the right people to help scale a business. For those looking to break into real estate investing, his advice is clear: get educated, start small, find great partners, and be willing to put in the work.
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