Common Mistakes and What Makes Lightstone Unique
Peter ends by asking about common mistakes physicians make when investing in real estate. Jonathan says the most common issue is “chasing yield,” or focusing only on high returns without understanding the risks behind them. High yields often mean higher risk, such as properties in weaker markets or projects with too much debt. For example, Class A apartment buildings may produce lower returns but are considered safer, while older Class C buildings may promise more cash flow but come with expensive maintenance challenges.
Lightstone focuses on the middle ground, investing mainly in Class B properties that can generate steady income while still offering room for improvement. Because the company manages its own construction and property operations, it can control costs better and execute value-add strategies efficiently.
Jonathan also shares that Lightstone is currently buying a six-tenant shallow bay property in Greenville, South Carolina. The building has strong tenants and room to increase rents after upgrades. What sets Lightstone apart, he explains, is that they always invest at least 20 percent of their own money in every deal, showing confidence and alignment with investors.
Peter closes by thanking Jonathan for helping listeners better understand industrial real estate, market trends, and smart investing principles. Jonathan invites anyone interested to visit Lightstone Direct for more information. The episode ends with Peter encouraging physicians to continue learning how to build multiple streams of income and financial freedom.
