Jason Yarusi on Transforming the Real Estate Landscape

In this interview, we delve into the entrepreneurial journey of Jason Yarusi, the founder of Yarusi Holdings. Transitioning from a successful background in hospitality and construction, Jason and his team at Yarusi Holdings have carved a niche in the real estate investment sector. Through their innovative approach to multifamily real estate, they focus on creating stable and profitable investments, emphasizing tenant satisfaction and operational efficiency.

Jason shares his insights on business strategy, market analysis, and value-added renovations, alongside the challenges faced and future aspirations that shape the dynamic path of Yarusi Holdings in the evolving landscape of real estate.

Background and Inspiration

SBS – What motivated you to start Yarusi Holdings, and how did your previous experiences shape your approach to real estate investment?

Jason – My wife and I were starting a small family, and all of our entrepreneurial efforts had been in a very transactional environment through owning bars, restaurants, and construction businesses. Buying apartment communities allowed us to empower a team alongside us to be able to create great stable cash flow investments for ourselves and our investors. This ultimately allowed us to seize back control of our time allocation, creating a path forward to the journey we are on now.

Business Strategy

SBS – Can you describe the core strategies Yarusi Holdings employs in identifying and repositioning underperforming properties?

Jason – This is a very relationship-driven business. We find opportunities through many ways but 70% of them come from broker relationships. However, the key piece is we are very specific with our search criteria and locations for where we seek these assets. This makes our firm much more efficient in our search process to identify the right deals quickly.

Market Analysis

SBS – How do you assess the potential of a new market or property, and what key indicators do you look for?

Jason – For markets, we look for strong population growth, strong job growth, and job diversity as main drivers. Beyond this, we look for landlord-friendly states, areas with strong rent growth, and supply constraints on the workforce while massive demand for housing exists.

Value-Add Renovations

SBS – What are some of the most effective value-add renovations you’ve implemented, and how do they contribute to tenant satisfaction and investment returns?

Jason – The goal is to make this a better place to live. We find that this goal allows the building to function better, which leads to a better tenant quality of life that leads further to increased property revenue that results in outsized returns for investors. The biggest drivers are always kitchen enhancements and improved amenities.

Operational Efficiencies

SBS – Could you elaborate on the operational efficiencies you focus on to enhance property performance?

Jason – We use a combination of strategic energy saving and utility efficiency plans that increase the bottom line while not causing a cost to the tenants, strategic marketing plans to source leads for the desired tenant base, and matching other income categories like utility billbacks that match the market.

Tenant Satisfaction

SBS – How do you balance the need for profitability with maintaining high levels of tenant satisfaction?

Jason – They do go hand in hand. I touched on earlier that running a properly proficiently will cost more, and this cost pushes to an increase in revenue, but as tenants can see the quality of life improving, they are eager to have a great place to live.

Risk Management

SBS – What are the primary risks in multifamily real estate investment, and how does your firm manage these risks?

Jason – There can always be market risk, government risk, and financial drivers that can affect the project. We look for investments in great locations that we can put on long-term debt, have reserves, and have cash flow, and this enables us to weather any storm.

Financing Strategies

SBS – What financing strategies have you found most effective in your real estate investments?

Jason – We have worked with various lending options. However, the most suited are banking relationships at this time, as they have limited prepayment penalties, giving us flexibility to adapt our business plan to moves in the market.

Investor Relations

SBS – How do you structure your relationships with investors, and what reporting or communication processes do you have in place?

Jason – Through our network and marketing channel we have built a stable of retail investors who could benefit from our types of investments. We offer weekly and monthly updates on our firm, and any investors actively invested with us receive monthly updates on their investments.

Scaling the Business

SBS – What challenges did you face while scaling Yarusi Holdings, and how did you overcome them?

Jason – We stayed small too long in terms of employees. Finding the right team to surround my wife and me allowed Yarusi Holdings to truly get in motion and expand in a giant fashion.

Market Trends

SBS – What current trends in the real estate market are you paying close attention to, and how might they impact your future strategies?

Jason – We pay attention to market sentiment, interest rate drivers in the market, new construction trends, and economic forecasts about the state of the market.

Advice for Newcomers

SBS – What advice would you give to entrepreneurs who are just starting out in real estate investment?

Jason – Be focused on the outcome you would like to achieve. Real estate can have many shiny objects, and it is very easy to get sidetracked. You can win in any phase of real estate, but very, very few win in them all.

Future Plans

SBS – What are your future plans for Yarusi Holdings, and how do you see the company evolving in the next 5–10 years?

Jason – We will continue to expand our internal team organically while continuing to focus on acquiring one deal per quarter. This has been a great plan since the inception and will continue to serve us into the future.