From a Poultry Business to 100+ Doors, Why One Business Owner Chose Real Estate

In this episode of the Tax Smart Real Estate Investors Podcast, Thomas Castelli and Ryan Carriere sit down with John Paul Houston, a retired business owner turned private lender and real estate investor, to unpack his extraordinary journey. From humble beginnings on a farm in Western Virginia to building a $100M poultry business and now managing 100+ rental doors, John shares how he leveraged tax strategy, local market knowledge, and a strong values-based team to create long-term wealth.

If you’re looking for inspiration, tactical insights, and a real-world example of how strategic investing and tax planning intersect, this episode is a must-listen.

A Humble Start in Appalachia

John grew up in a small mountain town in Western Virginia and never strayed far from home. Alongside his wife, they raised eight children and now enjoy life surrounded by 15 grandchildren. His career started in insurance before pivoting into financial planning, a business he ran successfully for 15 years while also farming and raising chickens on the side.

That small-scale chicken operation? It grew into a $100M enterprise, now run by his son-in-law. He also started a Christmas tree farm that’s been awarded multiple state championships and has decorated four governors’ mansions.

After selling his financial planning practice and his stake in the chicken business, John found himself semi-retired. But before long, he was drawn back into the world of business, this time through real estate and private lending.

From Financial Planning to Private Lending

With interest rates on bonds hovering around 2–3% at the time, John saw an opportunity to generate better fixed-income returns through private lending. His background on a local bank board gave him insights into underserved lending niches, particularly short-term loans for flippers and rental rehabbers.

Starting with his own capital, John built a private lending business now valued at $3.5M. He recently began accepting outside capital under a co-lending model, with plans to scale. The team has grown to include two full-time employees and serves borrowers within a tight geographic radius in Virginia and West Virginia.

Why Real Estate? Tax Strategy + Cash Flow

What pulled John deeper into real estate investing? The combination of attractive returns and serious tax benefits. With guidance from Ryan Carriere, CPA at Hall CPA, John tapped into strategies like accelerated depreciation and real estate professional status (REP) to significantly reduce his tax liability.

“Returns were available in multiple spaces, but I couldn’t get the tax savings anywhere else,” John explained.

He now manages over 100 rental doors and operates a growing fix-and-flip business, many of which are converted into long-term holds.

The Hidden Gem: Southern West Virginia

John focuses his real estate efforts on Beckley, West Virginia, which he describes as a highly undervalued market with enormous upside:

• 12% cap rates are his minimum target
• Low competition,  sometimes he’s the only bidder at auctions
• Landlord-friendly laws
• Minimal red tape
• Pro-business environment

The region has become even more attractive due to the presence of WVU Tech and a local economic development effort called the “communiversity,” bringing students, staff, and infrastructure to the area.

Building a Team with Shared Equity

John believes in building people up, not just businesses. One of his personal goals is to help 10 people become millionaires. So far, he’s halfway there.

In both his lending and real estate ventures, key team members earn equity by hitting performance milestones:

• Lending business: After reaching $1M in net operating income, team members begin to vest 5% ownership per year.
• Real estate business: His partner began with a 5% equity stake, increasing by 2% annually.

These aren’t buy-ins. They’re earned partnerships aligned with values like integrity, initiative, and long-term purpose.

Thoughts on AI, Investing, and Delegation

John is no stranger to technology. He’s already used AI to generate business plans and even a heartfelt Mother’s Day letter. While he admits he hasn’t tapped into AI’s full potential for real estate analytics, he’s eager to learn more.

As for equities, John leaves that to his financial advisor. Though Apple and Nvidia worked out well, he firmly believes most investors are better off in ETFs and index funds, and that emotional investing is the biggest threat to performance.

“Figure out what you do well and do more of that,” he advises.

What’s Next: Investing in Beckley’s Future

Looking ahead, John’s focused on scaling his real estate footprint in Beckley, particularly near the WVU Tech campus. The local college brings consistent turnover and demand, making it an ideal place for development.

Meanwhile, the lending business is starting to run itself under the leadership of team members.

“I think I’m better at starting things than running them,” he said. “My goal now is to transition from being the head guy to being a helper.”

Final Thoughts

John Paul Houston’s story is a testament to entrepreneurial grit, values-based leadership, and the power of intentional investing. Whether you’re a private lender, an aspiring REPS investor, or someone exploring lesser-known markets, John’s journey offers a blueprint worth studying and a reminder that wealth-building is best done with purpose and people in mind.

Listen to the full episode on the Tax Smart REI Podcast to hear more details from John’s journey, tax strategies, and advice on succession planning.

Book a free discovery call with our team.

Disclaimer: This podcast summary was generated from the transcript and may contain some errors or miss key points from the audio recording.