Tag Archives: passive real estate investing

Market Insights

Commercial Real Estate: The Quiet Momentum Driving CRE Deals in 2026

Posted on by Jaiden Andus
Commercial real estate

For nearly two years, commercial real estate has lived in a fog of uncertainty. Elevated rates, inflation pressure, and valuation resets kept many investors watching from the sidelines. But as we close out 2025, the data is no longer ambiguous: the CRE market has regained its footing, and the setup for 2026 is the strongest we’ve seen since before the pandemic.

Below is what today’s numbers really say and what it means for accredited investors focused on multifamily.

The Capital Markets Are Waking Up

Three forces: lower rates, improving fundamentals, and surging refinancing activity are reshaping the landscape:

  • Loan originations jumped 48% YoY through Q3 to $587B, up from $395B in 2024.
  • Refis now make up 55% of all originations, unlocking transaction flow that had been frozen since 2022.
  • Bank lending is up 85%, CMBS issuance is up 37%, and insurance/agency lenders have expanded 29% and 41%.

This isn’t theoretical optimism, this is capital deployment at scale. When lenders return, transactions follow. And that’s exactly what we’re seeing.

Sales Activity Is Rebounding…Quietly but Powerfully

Investment sales climbed 19% YoY through Q3 to $350B, with two-thirds of transactions under $100M prime territory for sophisticated private investors.

Meanwhile:

  • 70% of properties sold in September traded above their prior purchase price, with an average gain of $10.2M.
  • Assets bought for $60–75M in 2018–2019 are now exiting at $90–100M.

While media headlines focus on distress, the transactional reality tells a very different story: appreciation is happening right now.

Multifamily Remains Best-in-Class

Despite pricing tightness and pockets of oversupply, multifamily still leads all property types with $42B in Q3 volume (up 10% YoY).

Why? Because the fundamentals—household formation, rent demand, affordability gaps, and migration patterns—remain structurally strong. Even in uncertain macro conditions, people still need housing.

Meanwhile:

  • Office and retail, the sectors many wrote off, are actually leading the rebound with sales up 25–29%.
  • Institutional buyers are reentering office in major markets, rising from 9% of acquisition volume in 2023 to nearly 40% in 2025.

The recovery is broader and more durable than expected.

A Recovery Rooted in Operations, Not Hype

Unlike past cycles driven by cap-rate compression or cheap debt, this one is powered by operational performance:

  • Renewed leasing momentum.
  • Stronger rent collections.
  • Stabilizing occupancy.
  • Better reporting and asset-level discipline.
  • Technology and AI reshaping underwriting, asset management, and deal sourcing.

In many ways, 2026 is poised to reward execution, not speculation.

What’s Fueling 2026 Momentum

1. Rates Are Declining And Confidence Is Rising

Two consecutive Fed cuts (down to 3.75–4%) haven’t transformed the market overnight, but they have created psychological momentum. Every 25–50 bps of relief improves refinancing math, cap stacks, and buyer confidence.

2. Debt Maturities Are Creating Forced Opportunities

The 2025–2027 maturity wave is massive. Many owners who held through high-rate environments will be forced to refi or sell, creating targeted opportunities for well-capitalized sponsors.

3. The Pricing Reset Already Happened

Most of the value correction occurred in 2023–2024. Investors waiting for “the bottom” may have already missed it. As CBRE forecasts 16–17% transaction growth by year-end, with double-digit gains throughout 2026, the early-mover advantage is fading.

4. Technology Is Separating Winners From Everyone Else

Big data, AI-enhanced underwriting, and integrated platforms are no longer competitive edges, they’re necessities. The groups deploying technology effectively are securing deals others never see.

What This Means for Accredited Investors

For accredited investors, the current environment offers a rare opening. Multifamily remains one of the most resilient asset classes, supported by strong demand, steady rent fundamentals, and long-term demographic tailwinds. Even with elevated rates, housing continues to outperform most sectors.

At the same time, the rebound in capital markets means more attractive deals are emerging, especially in the sub-$100M range where private investors have a clear advantage. Many of these opportunities are off-market or relationship-driven, favoring investors aligned with experienced, well-capitalized operators.

Success in this phase of the cycle will come from preparation and execution. Investors who partner with sponsors that have strong lender relationships, disciplined asset management, and access to early-stage deal flow will be positioned to capture outsized returns as the market continues to thaw.

The Bottom Line

Commercial real estate isn’t waiting for a comeback, it’s already shifting. Transaction activity is rising, confidence is returning, and multifamily fundamentals remain solid as we move toward 2026.

This moment offers meaningful asymmetry: uncertainty keeps some buyers on the sidelines, yet the underlying fundamentals support future upside. That gap won’t last forever. As more capital re-enters the market, competition and pricing will tighten.

For accredited investors, the next 12–18 months may be one of the most favorable windows of the cycle. Those who position capital now, before the recovery becomes obvious, will be best positioned to benefit from the momentum already forming beneath the surface.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Real Estate Investing

What the Fed’s Rate Cuts (or Holds) Mean for Multifamily Real Estate Investors

Posted on by Jaiden Andus
Multifamily Real Estate
Multifamily Real Estate

 

For investors with significant capital at work, the question in today’s environment isn’t whether to invest, but where to invest intelligently.

Following the latest Federal Reserve meeting, it’s clear we are in a holding pattern. The Fed chose not to cut rates, instead signaling a cautious stance as inflation moderates and the labor market remains relatively strong. While market participants had hoped for more immediate relief, the message is clear: the Fed is not in a rush, and any future rate cuts will come gradually, likely in late 2025 or beyond.

This decision has broad implications across capital markets, but for those looking to preserve wealth, create passive income, and reduce tax exposure, it also sharpens the spotlight on one specific asset class: multifamily real estate.

High Rates Haven’t Changed the Fundamentals…They’ve Just Changed the Entry Point

Yes, the cost of capital is higher than it was in 2021. But here’s what many investors miss: higher rates have created opportunity, not just friction. During the low-rate years, multifamily assets were heavily bid up, cap rates compressed to unsustainable levels, and buyers were often over-leveraged chasing future rent growth.

That environment has changed. Cap rates have expanded. Buyer competition has cooled. Many owners who financed properties with floating-rate debt are under pressure to exit. This combination of softer pricing and motivated sellers has created a window that experienced operators are beginning to act on.

At the same time, multifamily fundamentals remain solid. Occupancy is strong in most major markets. Rents are holding up, particularly in Class B and workforce housing, where the affordability gap continues to widen. And most importantly, the structural undersupply of housing in the U.S. has not gone away. If anything, it’s become more pronounced. According to recent data, the U.S. still faces a shortage of over 4 million housing units. That demand pressure supports long-term rent growth and asset appreciation, regardless of short-term rate movements.

For High Earners, the Case for Multifamily is Multi-Dimensional

If you’re earning $300,000, $500,000 or even $1M+ annually, you’re likely experiencing a common problem: your income is growing, but your tax liability is growing faster. And while your portfolio may be heavily weighted in stocks, bonds, or high-fee managed funds, few of those assets provide meaningful tax relief or consistent passive income.

This is where multifamily investing offers unique advantages that align directly with the financial priorities of high net worth investors:

  1. Passive Income with Real Assets: Through syndications or direct equity investments, multifamily properties provide monthly or quarterly cash flow backed by real tenants, operating businesses, and appreciating assets. This is income from a tangible source, in markets with persistent housing demand.
  2. Significant Tax Benefits: The U.S. tax code is highly favorable to real estate investors with the recent passing of the “Big Beautiful Bill” back in July. Through bonus depreciation, cost segregation studies, and passive loss offsets, investors can often significantly reduce or even eliminate taxable income from distributions. This is especially compelling for high earners who are otherwise taxed at top marginal rates.
  3. Compounding Wealth Without Active Involvement: Most high-net-worth professionals don’t have the time or interest to become landlords. Multifamily syndications offer the ability to participate in the same equity growth as a principal, without the operational headaches. You benefit from the upside while a professional team handles acquisition, management, renovation, and eventual exit.
  4. Recession-Resilient Asset Class: Multifamily has proven to be one of the most resilient sectors in commercial real estate. During economic downturns, people may downsize from homeownership or luxury apartments, but they still need a place to live. In the past five economic cycles, multifamily has consistently outperformed office and retail, and maintained more stable occupancy and income.

Why This Moment Matters

With rates holding steady and cuts pushed further out, many investors are sitting on the sidelines, waiting for perfect clarity. But the reality is: the best deals rarely come when everyone is confident. They come during transition periods when pricing hasn’t yet caught up to forward-looking fundamentals.

Experienced operators are using this environment to acquire assets at discounted valuations, often with assumable fixed-rate debt or structured seller financing. These are not speculative acquisitions, but carefully underwritten investments that prioritize stabilized cash flow and long-term equity creation.

Additionally, as the debt markets stabilize, we’re seeing improved terms from agency lenders like Fannie Mae and Freddie Mac, especially for deals in strong demographic markets with proven demand. This creates a rare combination: lower acquisition prices, improving debt terms, and resilient operating performance.

For investors focused on preserving and compounding wealth, this is the environment where long-term gains are seeded.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency.
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Tax Benefits

How the ‘Big Beautiful Bill’ Creates Bigger Returns for Real Estate Investors

Posted on by Jaiden Andus
Multifamily Real Estate

Multifamily Real Estate

 

Occasionally, legislation quietly reshapes how wealth is built—and most people miss it. The recent passage of the One Big Beautiful Bill Act (OBBBA) is one of those rare moments. While much of the public conversation focuses on politics, investors should pay attention to what really matters: taxes.

Taxes are often the largest lifetime expense you’ll face, exceeding housing, education, or healthcare. That’s why understanding and leveraging favorable tax policies isn’t optional; it’s essential to creating lasting wealth.

This new bill creates one of the most advantageous tax environments in years, especially for real estate investors. Whether you’re already invested in multifamily syndications or exploring new opportunities, these changes can help you keep more of your earnings, lower your tax burden, and accelerate your path to financial freedom.

When approached strategically, tax efficiency isn’t just an added bonus—it’s a fundamental driver of wealth growth.

Here’s what’s changed and why it matters for your investment strategy:

Lower Tax Rates Are Now Permanent

The 2017 Tax Cuts and Jobs Act (TCJA) introduced reduced tax brackets for individuals, but those reductions were originally set to expire in 2025. Under the new legislation, these rates have now been made permanent.

The key brackets include:

  • 24%, which is where many investors’ passive income lands.
  • 37% as the top rate (instead of reverting to nearly 40%).

Additionally, the standard deduction remains $15,750 for individuals and $31,500 for joint filers, with ongoing inflation adjustments.

What this means for you: The income you receive from K-1s and other passive sources will continue to be taxed at favorable rates, ensuring your after-tax income remains strong and predictable over time. This is a structural win that provides clarity for long-term planning and confidence in the net cash flow you can expect from your investments.

Bonus Depreciation Fully Restored and Made Permanent

Perhaps the most significant change in the bill for real estate investors is the return, and permanence, of 100% bonus depreciation for qualifying commercial real estate assets placed in service after January 19, 2025.

What qualifies?

Systems like HVAC, elevators, tenant improvements, landscaping, and other capital-intensive components. These can now be fully expensed in the year of acquisition, rather than depreciated over 15 to 39 years.

For passive investors: This translates into large paper losses on your K-1s. While these losses don’t impact cash flow, they are extremely valuable in reducing taxable income, either from the same investment or from other passive income sources.

20% Deduction on Rental Income Becomes Permanent

The Qualified Business Income (QBI) deduction, commonly referred to as the 20% pass-through deduction, has now been made permanent under the new legislation. 

Why this matters: For passive investors who are focused on optimizing after-tax yield, this becomes a built-in efficiency that doesn’t require restructuring or complicated strategies. It’s automatic, and it’s permanent.

1031 Exchanges Remain Intact

Despite prior discussions in Congress about eliminating or limiting 1031 exchanges, this bill has left them fully intact.

Investors can continue to sell investment properties and reinvest the proceeds into qualifying properties while deferring capital gains taxes.

Increased SALT Deduction for High-Tax-State Residents

Previously, state and local tax (SALT) deductions were capped at $10,000, which disproportionately impacted investors in high-tax states. OBBBA raises this cap to $40,000 for households with adjusted gross incomes under $500,000.

Capital Gains Tax Rates Remain Favorable

The favorable rates for long-term capital gains, typically 15% or 20% depending on income, remain in place.

Investor takeaway: When you realize gains from the sale of a property after holding it for a year or more, those profits will continue to be taxed at significantly lower rates than ordinary income. 

Real Estate Professionals Maintain Their Full Advantage

If you or your spouse qualify as a Real Estate Professional under IRS rules, you can continue to use passive losses, particularly from bonus depreciation, to offset active income like W-2 wages. For high-income households, this can lead to significant tax deferral or immediate savings. 

Additional Incentives for Affordable Housing and Opportunity Zones

In an effort to support underserved communities and address housing shortages, the bill expands the Low-Income Housing Tax Credit (LIHTC) and enhances benefits tied to Opportunity Zone investments. If you’re considering projects that blend financial returns with social impact, these incentives can improve overall project economics and provide additional federal tax credits.

Faster Federal Permitting for New Developments

The bill also includes a provision to streamline environmental and regulatory approvals for new construction, particularly in multifamily and commercial real estate. This reduces project delays and administrative bottlenecks.

For passive investors: This could translate into faster project starts, shorter construction timelines, and quicker transitions to stabilized income-producing assets.

What You Can Do Today

Taken together, these provisions make long-term real estate investing more attractive, predictable, and rewarding. For investors looking to scale their portfolios without added active work, maximize after-tax returns, and balance capital preservation with income generation, this bill creates a strategic opportunity by aligning tax policy with investment strategy.

  1. Consult with your CPA: Review your tax strategy in light of these changes, especially around depreciation, QBI deductions, and real estate professional status.
  2. Evaluate your current portfolio: Consider how these updates impact your after-tax returns and your capital allocation plans.
  3. Position yourself for upcoming offerings: Properties placed into service in 2025 will qualify for new bonus depreciation rules, timing matters.

Final Thoughts

We’ve always believed that real estate is more than just a way to generate returns, it’s a way to build durable wealth, protect capital, and create time freedom.

This new legislation reinforces that belief. The path ahead is clearer, more tax-efficient, and more aligned with the long-term investor’s goals. And while most will overlook it, those who plan intentionally and invest accordingly will benefit the most.