EP#81 Dwight Dunton | Finding Under-Loved Markets

The guest, Dwight Dunn of Bonaventure, reveals a contrarian investment philosophy: the most valuable real estate opportunities aren't in flashy, high-growth markets, but in 'boring' underloved markets with low volatility, minimal institutional competition, and consistent rent growth. He argues that markets like Virginia Beach, Omaha, and Dayton are flyunder-the-radar performers that outperform over time—not because of explosive rent hikes, but because of stability and low supply. His company’s success stems from a long-term, tax-efficient strategy built on fixed-rate debt, value-add renovations, and a platform of five interlocking businesses. Rather than chasing headlines, Dunn emphasizes understanding the 'rules of the game'—especially regulatory risks like rent control and development bans—which he believes could actually benefit investors by restricting supply. His firm is currently on offense, buying distressed assets and value-add properties in markets where others are retreating due to rate volatility. The episode reframes the 'build vs. buy' debate: with development stifled by regulation and cost, Dunn focuses on acquiring older, undervalued properties and upgrading them—especially in markets with no new supply. He highlights the strategic advantage of being a HUD borrower for 3% fixed-rate financing, and explains how his private REIT allows family investors to access liquidity while maintaining long-term compounding. The core takeaway?