Allen LomaxPrivate Investment Coach, Royal Legal Solutions · Capital Allocator | Empowering Professionals to Transition From Earned Income to Asset-Generated

Renovating Residential Properties vs. Investing in Commercial Real Estate: A Comparison

9 May 2024 · 1 min

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In this excerpt, the speaker draws a parallel between the hands‑on work of renovating residential properties and the process of revamping small online businesses, emphasizing the active, involved nature of both. He then contrasts this with commercial real estate, describing it as a more passive investment because owners typically hire property‑management teams, mirroring how larger businesses outsource operational and growth tasks to dedicated staff. The speaker illustrates the point with a personal example: purchasing a warehouse that includes an attached retail outfit, highlighting the shift from active renovation to passive ownership through delegated management.

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It's very, very active. And like you said, with like renovating residential properties, I can relate that to like renovating small online businesses. Whereas if people start to go to the more commercial route in commercial property, it's far more passive and less work. You are hiring people to manage the property, which is what we do with larger businesses as well. We typically hire or have a team that we acquire with the business that manages the business and then we can bring in people to do growth, you know, situations and stuff like that in the business. So I see the correlations and I know the correlations between like I'm buying a commercial property right now, right? A warehouse with a retail outfit attached to it.