The Best Ever CRE Show JF 4097: Scaling Mistakes, Mentorship Breakthroughs and Smarter Deal Structures ft. James Faillettaz
Nov 22, 2025
James Faillettaz, founder of Verus Praedium Holding and a multifamily investing expert, shares his journey from nearly collapsing his real estate business to restructuring it with mentorship support. He discusses the pitfalls of rapid growth, including over-hiring and mismanagement. Discover how he creatively acquired 101 units through a master lease with purchase option strategy, avoiding traditional financing complexities. James emphasizes the value he offers sellers, the importance of building relationships, and the transformative power of strategic thinking in real estate.
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Fast Early Growth From A Spreadsheet
- James started with five units in a spreadsheet and sold equity to grow rapidly to ~32 units.
- He ended up with 12 employees and realized the company structure and cash flow couldn't support that scale.
Contractor Theft Triggered Structural Reckoning
- A rehab of a fiveplex went wrong after a contractor stole ~$90,000 and the appraisal fell far short.
- That project exposed structural flaws and forced James to reconsider fundraising and dilution choices.
Don't Reinvent Structural Basics
- Real estate doesn't require reinventing the wheel; conventional, proven structures often serve better than startup-style dilution.
- Choosing durable legal and financial structures beats short-term equity grabs when scaling a portfolio.