380. Graham Stephan Just Made the Case for Commercial Real Estate
About this episode
Graham Stephan discusses his decision to sell LA residential rentals and the implications for commercial real estate investment.
Core Concept Graham’s move: He’s selling all his LA residential rentals because of: Heavy regulation (3-year eviction moratorium, rent freezes) Extreme bureaucracy (permits, inspectors, delays) Weak returns (~ 4–5% on equity ) vs. other investments ADU “nightmare” example: Built an ADU and got stuck in: Multiple failed inspections with shifting requirements Forced $22k sewer repair , sidewalk and tree-root work 60–75+ day delays for permits and tenant notices Result: months of delay, extra cost, lost tenant, high stress. Tyler’s core thesis: This story doesn’t kill real estate; it kills small residential in high-reg markets . It actually makes the case for commercial real estate : Fewer tenant-protection politics More contract-driven, business tenants Better return vs. headache trade-off, especially in middle-market CRE deals .
More episodes of The Commercial Real Estate Investor Podcast
- 386. How I Bought My First Commercial Property at 25 (just copy me)
- 385. The 1031 Move That Lets You Buy Before You Sell
- 384. Watch Me Underwrite a Real Industrial Deal in 30 Minutes
- 383. 100 Doors. 35% Returns. Why He's Walking Away.
- 381. He Doubled His Cash Flow Without Buying a Single New Property
- 382. The Tax Strategy High-Earners Use to Offset Income With Real Estate
Explore listener stats, chart rankings, contacts and more on the The Commercial Real Estate Investor Podcast podcast page.