From Cold Calling to Capital Raising: A Real Estate Success Story with Jeff Weller

In a recent episode of The Matthews Podcast, host Matthew Wallace sat down with Jeff Weller, Co-CEO and Co-Founder of Lion Real Estate Group, to discuss commercial real estate trends, capital raising strategies, and the future of multifamily investment. Weller, with over 25 years in the industry and a remarkable track record of raising more than $700 million in equity, shared his journey from tenant rep broker to national real estate operator — and the key lessons he’s learned along the way.

The Genesis of Lion Real Estate Group

Weller’s career began in brokerage, spending nearly eight years at firms like CB Cushman Realty, Cushman & Wakefield, and CBRE. But in 2007, he pivoted. “I met my business partner through a mutual friend, we decided to raise some capital and start acquiring distressed assets in Southern California,” Weller explained. From humble beginnings, Lion has since expanded to ownership of over 7,000 apartment units nationwide, operating offices in Los Angeles, Dallas, and Nashville.

Their success story is defined by opportunism and adaptability: “We’ve done everything under the sun — distressed loans, ground-up apartment buildings, office repositioning, retail — but over the last 10 years, we’ve focused on value-add, garden-style multifamily throughout Texas and the Southeast.”

Strategic Shifts: From California to the Southeast

Weller candidly outlined the drivers behind Lion’s strategic shift away from California: increasing regulations, heightened tenant activism, and punitive tax structures. “California with the regulations and some of the things we saw coming down the pike just threw too much risk on our investments,” he said. Key policies like the mansion tax and looming rent control destabilizations made operating in the state untenable for risk-adjusted returns.

In contrast, Southeastern markets like Dallas, Nashville, Atlanta, and Charlotte offered more predictable regulatory environments, population growth, and liquidity. “We wanted to be in a decent sized MSA,” Weller noted, emphasizing the importance of being in markets that attract institutional capital — essential for executing timely exits from investments.

Capital Raising: From Friends and Family to Sophisticated Funds

Early capital raising efforts, Weller recalled, were rooted in personal trust: “Our first few deals were really friends and family and finding a great opportunity, and the opportunity kind of sold itself.” Success bred success — strong returns attracted referrals, expanding Lion’s investor base.

Today, Lion raises capital through discretionary funds, while staying true to its private capital roots. “Our second fund was $225 million of equity. This fund will be about $150 million, and we’ll do another $100 million of co-invest,” Weller shared. Importantly, Lion structures its funds for speed — deploying capital within two years and harvesting investments within six — a model well-suited to high-net-worth individuals and family offices seeking quicker liquidity compared to traditional private equity timelines.

Weller also emphasized caution and stewardship: “There’s a no loss rule. You have to be very careful. We’ve never lost money and generated 28% net of fees IRRs over 90 sales.”

The Role of the LP Advisory Committee

A unique aspect of Lion’s fund management is the use of a Limited Partner Advisory Committee (LPAC), a concept Weller described as operating “effectively a board of advisors for each fund.” Comprised of top investors, including representatives from family offices and institutions, the LPAC provides strategic guidance on key investment decisions, including potential fund extensions to maximize returns.

“They all have real estate backgrounds. It’s always good to get a lot of different opinions when you’re in this process,” he said, highlighting the LPAC’s role in aligning fund performance with investor expectations.

Brokerage Roots and the Value of Cold Calling

Reflecting on his brokerage beginnings, Weller credited those early years for instilling critical skills: “Being in brokerage was the most important thing in my career. Anyone who can survive brokerage and be a top producer at a firm can pretty much do anything.”

He emphasized the need for young brokers to be genuine, deeply knowledgeable about their markets, and relentless in building relationships: “You have to have a brand… you have to pick a market and understand the market cold.” Success, he explained, is a combination of hard work, genuine client relationships, and a relentless focus on opening doors, even when it takes years to see results.

Weller’s advice to young professionals was clear: “Be comfortable being uncomfortable. The quicker you can get comfortable being uncomfortable, the better you’ll do.”

The Road Ahead: A Promising Future for Multifamily

Looking forward, Weller was optimistic about the near- and medium-term outlook for multifamily real estate, particularly in the Sunbelt. He predicted a rise in transaction volumes in the second half of 2025 as owners seek liquidity: “Owners are going to start making hard decisions. I think they were kicking the can down the road the last two and a half years.”

On a macroeconomic level, Weller believes current federal policies targeting lower interest rates will provide a significant tailwind for CRE. “If we can get three cuts this year, that starts getting really reasonable for other value add guys to come into the market.”

In sum, Weller remains confident: “We think the next couple of years will be really great… positive leverage is back in play.”