380. Graham Stephan Just Made the Case for Commercial Real Estate

Core ConceptGraham’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 investmentsADU “nightmare” example:Built an ADU and got stuck in:Multiple failed inspections with shifting requirementsForced $22k sewer repair, sidewalk and tree-root work60–75+ day delays for permits and tenant noticesResult: 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 politicsMore contract-driven, business tenantsBetter return vs. headache trade-off, especially in middle-market CRE deals.