The Real Estate Investing Club

The Asset Class Most Investors Ignore (And Regret It)

β€’ Gabe Petersen β€’ Season 1 β€’ Episode 630

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0:00 | 37:24

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ABOUT THIS EPISODE 

In this episode of The Real Estate Investing Club, I sit down with Stewart Heath, CPA and founder of Harvard Grace Capital in Tennessee. Stewart spent decades building his real estate investing career β€” from a 200-door residential portfolio to a focused commercial strategy along the I-65 corridor between Nashville and Birmingham. 🏒 Whether you are new to investing or a seasoned pro exploring commercial real estate, syndications, or regional market focus, this episode is packed with insights to accelerate your path to financial freedom. 

THE COMMERCIAL REAL ESTATE PIVOT πŸ’Ό 

Stewart spent years managing 200 residential units before making a full pivot to commercial real estate investing. He breaks down exactly why dealing with business tenants rather than residential renters changed everything for him as an investor. πŸ’‘ He also shares a powerful warning about vertical integration β€” owning your property management company, construction firm, and investing business all at once β€” and why dividing your focus too many ways almost always means no single part of the business grows the way it needs to. 

WHY MEDICAL OFFICE IS THE HIDDEN GEM πŸ₯ 

Stewart's favorite commercial real estate asset class is medical office, and this episode shows exactly why smart investors are paying attention. Medical tenants sign 10-year leases and personally fund expensive build-outs, making them extraordinarily sticky. πŸ“ˆ Triple net lease structures and tenants who rarely push back on rent per square foot create predictable, inflation-adjusted income streams. Stewart recently acquired a Birmingham medical office building at nearly a 9% cap rate with financing at just over 6%, generating powerful positive leverage and exceptional cash-on-cash returns for his investors. 

THE POWER OF REGIONAL INVESTING πŸ—ΊοΈ 

Harvard Grace Capital invests exclusively along the I-65 corridor from Nashville to Birmingham, and Stewart makes a compelling case for why geographic focus is one of the most underrated competitive edges in real estate investing today. 🎯 Going deep on a region you know means stronger broker relationships, better deal flow, and hands-on asset management that remote investors simply cannot replicate. If you have ever wondered whether to specialize by asset class or by location, this conversation will give you a fresh and convincing perspective. 

#RealEstateInvesting #CommercialRealEstate #MedicalOffice #PassiveIncome #RealEstateSyndication 

Want to learn more about our guest? Connect here: https://harvardgracecapital.com/ 

Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen

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