E95: Understanding Leverage in Real Estate

Is real estate still the best investment vehicle in today’s market? Rob Beardsley and Craig McGrouther break it all down in this data-driven episode. In this episode of the Lone Star Capital Podcast, Rob Beardsley and Craig McGrouther go deep into real estate fundamentals, compare the risk-adjusted performance of multifamily investing to the S&P 500, and explain why overleveraging can turn a good deal into a bad one. Using real numbers and a simple spreadsheet model, Rob walks through how cap rates, closing costs, recurring CapEx, and volatility all impact actual investor returns. The duo also explores Sharpe ratios, the myth of safety in stocks, and why long-term, disciplined real estate investing still wins—if done correctly. This is a must-listen episode for investors trying to understand how to think clearly about return, risk, and the long-term power of real estate. Apply to attend the LSC Summit 2025: www.lscsummit.com Download our FREE Passive Investor Guide: https://www.lscre.com/content/passive-investor-guide Subscribe to our newsletter and get the FREE Underwriting Toolkit: https://www.lscre.com/resource/fof-underwriting-toolkit Learn more about Lone Star Capital: www.lscre.com Follow Rob Beardsley on LinkedIn: https://www.linkedin.com/in/rob-beardsley Read Rob’s articles: https://www.lscre.com/blog