Empowering Healthy Business Podcast Episode 58 : Investing in Real Estate with Adam Landrum

At some point, many business owners start asking the same question: What should I do with extra cash once my business is stable? For some, the answer is the stock market. For others, it’s something more tangible, investing in real estate.

In this episode, Adam Landrum shares how he approached real estate as a business owner without being an expert. His journey is practical, grounded, and full of lessons that most people only learn after making costly mistakes.

Why business owners start investing in real estate

Adam didn’t start with a big investment strategy. It began with something simple, his rent.

He was paying around $5,000 per month for office space. When his lease renewal came up, he realized that over several years, he would spend hundreds of thousands of dollars and end up with nothing to show for it.

That realization changed how he looked at his options.

Instead of continuing with the same decision, he started thinking differently. If he was already committing that much money, maybe it made more sense to put it toward ownership instead of rent.

This is often the turning point for many business owners.

They begin to notice:

• Long-term lease costs add up quickly
• Rent does not build equity
• A stable business can support a larger financial move

Another idea that stuck with Adam came from a consultant who told him that most agency owners do not build real wealth from selling their business. Instead, they build it from owning the property their business operates in.

That idea stayed with him, and later proved true.

A practical approach to investing in real estate

Adam’s approach was not complicated. He focused on simple, practical thinking instead of complex financial models.

He asked himself:

• Can I afford the payments?
• Is my business stable enough?
• Will this property likely increase in value over time?

That clarity helped him move forward.

His original plan was actually very strategic. He wanted to buy a building that was larger than what his business needed. That way, he could use part of the space and rent the rest.

This gave him several advantages:

• Additional rental income to offset costs
• Reduced financial risk
• Flexibility to grow into the space later

This is an important point. When investing in real estate as a business owner, the property should serve both your current needs and your future growth.

However, things didn’t go exactly as planned.

What didn’t go as expected

Adam shared something most people avoid talking about, mistakes.

After purchasing the building, they invested heavily in renovations. The problem was not the upgrades themselves, but the lack of a clear limit.

They:

• Did not set a strict renovation budget
• Ran into unexpected construction issues
• Ended up spending more than planned

As a result, the property stayed cash-flow negative for a few years.

This created pressure. They had to contribute additional capital to keep things running.

But even with that setback, the long-term outlook remained strong.

This highlights an important reality.

Investing in real estate is not just about buying the right property. It is about managing everything that comes after — costs, upgrades, timelines, and expectations.

The reality of managing a property

One of the biggest concerns people have about investing in real estate is management.

The fear is simple: dealing with problems.

Things break. Tenants call. Unexpected issues come up.

Adam addressed this by bringing in the right support.

He worked with a partner who had:

• Property management experience
• Asset management capabilities
• Systems to handle day-to-day operations

This allowed him to stay focused on his business while still owning the asset.

Even then, there were challenges. There were repairs, damage, and situations that required attention.

That is the trade-off.

If you want completely passive investing, real estate may not be the best fit. But if you are willing to stay somewhat involved and build the right support system, it can become a strong long-term asset.

Residential vs commercial real estate

Adam also invested in residential property, which came from a different kind of decision.

Instead of paying high housing costs for college, he chose to buy a condo near campus. The location made it attractive, and demand remained strong over time.

That investment performed well and appreciated significantly.

One interesting detail is how he found the deal. Instead of waiting for a listing, he simply asked the current owner if they were willing to sell.

This shows that good opportunities often come from being proactive.

When comparing residential and commercial real estate, the biggest difference comes down to scale and risk.

Residential properties are generally:

• Lower in cost
• Easier to finance
• Less risky overall

Commercial properties, on the other hand:

• Require larger investments
• Involve more complex financing
• Carry a higher financial risk

Adam explained it simply. If something goes wrong with a smaller residential property, the impact is manageable. If something goes wrong with a large commercial property, the consequences can be much more serious.

Final thoughts

Investing in real estate is not about being an expert. It is about making clear, practical decisions based on your situation.

For business owners, it can be a powerful way to:

• Build equity over time
• Reduce long-term reliance on rent
• Create additional wealth outside the business

But it only works when approached with discipline.

You need to understand your numbers, plan for the downside, and stay realistic about the effort involved.

If you do that, real estate can become more than just an investment. It can become a meaningful part of your long-term financial strategy.

Want to go deeper? Listen to the full conversation on the Empowering Healthy Business Podcast