Sept. 13, 2022

The Beauty of Investing in Real Estate with Drew Pearson


Real estate has long been considered an attractive asset class by investors for several reasons. This investment offers many benefits, including high returns, stability, and inflation protection. With real estate investing being an excellent way to diversify portfolios and build wealth over time, what are some of the investment strategies that can take advantage of these opportunities?

In this episode, Greg and Doug talk with Drew Pearson, the Managing Partner at Pearson Partners. Drew began his commercial real estate career at Latter & Blum in Baton Rouge in 2008. He moved to a boutique firm, Waters & Pettit, in 2011 and became a top-selling agent there within a few years. In 2015, Drew began to work at Promanas, where he served as head of acquisitions helping the firm to grow to over $250M of real estate asset value.

Drew talks with Greg and Doug about his journey to becoming a real estate investor. A self-storage investor and developer himself, Drew speaks about why self-storage is an attractive asset class, how he builds teams to manage local and regional markets, and what his thoughts are on the next big thing on the real estate investing scene.


Key Takeaways

  • [01:07] - Drew's journey to becoming a real estate investor.
  • [05:39] - Why self-storage is an attractive asset class.
  • [10:33] - How Drew finds deals in secondary and tertiary markets.
  • [12:09] - What makes investing today different from the past.
  • [14:45] - Why team building is important from an operational perspective.
  • [17:28] - How Pearson Partners serves investors.
  • [22:06] - The next big thing in real estate investing.
  • [27:11] - Drew's thoughts about vacancies.
  • [29:39] - What makes real estate an attractive investment.


Quotes

[06:25] - "The demand drivers for storage are death, divorce, and dislocation or moving. Those things happen in good times and in bad. Unlike an office tenant in a recession who needs to downsize his footprint, there is a need, regardless of economic times, for this storage type." ~ Drew Pearson

[16:11] - "People are the gas to the race car, and investment properties are the race cars. They need people to operate them." ~ Drew Pearson

[28:22] - "It's almost better to have a short-term lease in today's market. If the tenant's paying six bucks a foot and the market is now nine bucks a foot, it's beneficial to have a short-term lease as a landlord. We can restructure the lease or bring things back closer to market and get a better return." ~ Drew Pearson


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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.