Commercial Real Estate Investing: A Smarter Way to Build Wealth
Real estate investing is often seen as a hands-on business—fixing toilets, dealing with tenants, and constantly managing properties. But what if you could reap the benefits of real estate ownership without the headaches? That’s exactly what Brad Shepherd, Managing Partner at Sugarhouse Investments, specializes in. In this discussion, Brad shares how he helps retail investors enter commercial real estate, his journey in the industry, and why asset classes like multifamily apartments, self-storage, and mobile home parks present unique opportunities.
Why Real Estate?
Brad’s journey in real estate started over 20 years ago. With a finance degree and an internship with a large commercial real estate developer, he gained firsthand experience in the industry. Over time, he realized that real estate operates on basic, time-tested fundamentals: demand, location, and long-term appreciation. Unlike speculative markets, real estate provides an opportunity to generate consistent income while allowing for capital appreciation over time.
The Evolution of an Investor
Early in his career, Brad dabbled in various strategies, from Airbnb rentals (before Airbnb was a thing) to development projects, hospitality, and even fix-and-flips. However, after experiencing the unpredictability of direct property management, he transitioned into commercial real estate private equity. This shift allowed him to focus on raising capital for larger-scale investments rather than managing individual properties.
The Appeal of Raising Capital
For many, the idea of raising money for real estate investments can seem daunting. It requires networking, trust-building, and the ability to present strong investment opportunities. Brad, however, thrives in this role. Over the years, he’s built a network of investors who trust his due diligence process. His approach is centered on education and long-term relationships rather than aggressive sales tactics. By partnering with experienced operators, he ensures that his investors are backing deals with solid fundamentals.
The Best Asset Classes for Investors
One of the biggest takeaways from our conversation is Brad’s focus on recession-resistant asset classes. His top picks?
Multifamily Apartments – Demand for housing is always strong, especially for mid-tier properties in high-growth areas. Investing in B-class or C-class properties and making strategic improvements can generate strong returns.
Self-Storage – With relatively low operational costs and high demand, self-storage investments offer excellent margins. Rent increases don’t significantly impact tenants, leading to low turnover and steady cash flow.
Mobile Home Parks – A unique and often overlooked investment, mobile home parks benefit from strong demand, low supply, and sticky tenants who rarely move due to the high cost of relocation.
Identifying Growth Markets
Location is key in real estate, and Brad prioritizes markets experiencing population and job growth. Some of the best indicators of a strong market include:
Major employers relocating or expanding in the area
Strong population growth (Texas, Florida, Georgia, and Arizona are hot spots)
Favorable tax and regulatory environments
By focusing on these factors, investors can minimize risk and ensure steady demand for their properties.
The Power of Passive Investing
Many investors dream of real estate ownership but don’t want the hassle of managing properties. That’s where passive investing through syndications and funds comes into play. By pooling capital with other investors, individuals can access institutional-grade real estate deals without day-to-day involvement.
Investors in Sugarhouse Investments' deals receive cash flow distributions while also benefiting from tax advantages like accelerated depreciation. With a typical hold period of five years, these investments provide stability and long-term wealth-building potential.
Final Thoughts
Brad’s experience highlights the importance of playing the long game in real estate investing. By focusing on asset classes with strong fundamentals, building relationships with reputable operators, and staying patient, investors can generate wealth without the stress of active property management.
Interested in learning more? Visit Sugarhouse Investments to explore investment opportunities and stay updated on future deals.