JF3329: The Great Debate: Residential vs. Commercial Real Estate

Published: Oct. 16, 2023, 7:38 a.m.

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This episode is brought to you by Presario Ventures, a private equity real estate firm based in the booming Austin, Texas, market. To learn how to invest in the future of Texas with Presario Ventures, visit\\xa0info.presarioventures.com/bestever.

Ash Patel and Joe Cornwell engage in a head-to-head debate, diving deep into the nuances of commercial versus residential real estate investing. Drawing on their years of expertise, these industry titans provide insights, challenge perspectives, and share personal experiences that are bound to resonate with every real estate investor.\\xa0

Key Takeaways:

  • Vacancy & Value Growth:
    • Joe argues that residential real estate, especially 1-4 units, is influenced heavily by comps, which can sometimes be beneficial, seeing property values doubling unexpectedly.
    • Ash emphasizes the potential of commercial real estate, highlighting that value isn\'t strictly bound by comps. The signing of a long-term lease with a big name can drastically increase a property\'s value.
  • Tenant Management:
    • Commercial tenants, often business owners, tend to be more self-reliant, potentially even investing in the property\'s upkeep themselves. This can reduce management headaches, evictions, and provide more predictable revenue streams.
    • Joe counters by noting that proper screening and management can similarly reduce residential real estate risks.
  • Recession Resilience & Mixed Use Properties:
    • Both Ash and Joe agree on the recession-resistant nature of certain types of properties, specifically mixed-use properties. Combining both commercial and residential tenants can offer a safety net for investors, ensuring steady revenue even in challenging economic climates.

Joe Cornwell | Real Estate Background

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