[00:02] just haven't studied commercial real estate yet. >> [laughter] >> Okay. So, Blackstone and Invitation Homes and all these financial institutions that pour money into
[00:16] residential real estate are just doing it because they haven't studied commercial real estate. I don't think so. I don't think that's it. The reality is commercial real estate, residential real estate, each a unique asset class
[00:28] with its own benefits and disadvantages. Commercial real estate is great for scaling. You can take big swings. You can earn huge returns, but it also comes with more risk. Residential real estate is harder to scale than commercial real
[00:42] estate, but it is a very stable asset class with amazing risk-adjusted residential real estate is so much better than commercial real estate. The
[00:54] level of effort is significantly lower, and the whole market is just less we've ever seen during the Great Financial Crisis, residential real estate dropped about 20%. Look at commercial real estate right now. It is
[01:07] 20% across the board, and there are pockets where commercial real estate is down 50% or more. If you invest in commercial through syndications, you can actually lose 100% of your invested capital as a lot of investors are
[01:20] finding out these days. So, both are good options depending on your goals and level of experience. Not everyone wants to scale up to thousands of units. Not everyone wants that complexity. Not everyone wants that level of volatility.
[01:34] Some people know both markets and choose residential real estate. And because residential real estate has helped millions of people achieve financial independence, that decision makes perfect sense to me.