Brendon Pishny
Brendon Pishny is a buy-andhold investor from Olathe, Kansas, and invests primarily in the suburbs of Kansas City. After completing several flips toward the beginning of his real estate career he determined his main expertise, and the best way to build wealth, is by owning properties long term. Currently, he manages his personal rentals and a few family-owned properties, all within minutes of his home. Brendon owns several million dollars’ worth of real estate with the goal of eventually having a completely paid-off portfolio. He is an active member of the Mid-America Association of Real Estate Investors (MAREI).
Please tell us a little about who you are and what you did before getting into real estate investing:
I grew up in a rural area of Southwest Kansas. Both sets of my grand-
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The War on Landlords
From COVID eviction bans to tenant-slanted laws, property owners are under financial siege. Here’s what Trump can do about it.
By Steven Malanga
One of the ironies of Donald Trump’s first presidency is that a former real-estate investor and landlord enacted an unprecedented federal eviction ban. In early 2020, as COVID lockdowns paralyzed the country, Trump signed the CARES Act, placing a moratorium on evictions for any rental properties with federal loans or assistance. Despite the unprecedented scope of the eviction ban and billions in aid, tenant-advocacy groups blasted Trump for doing too little to prevent what headlines called an impending “eviction tsunami.”
While landlords sued to overturn the expanding moratorium, states and cities imposed their own tenant protections,
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The TACO Tariffs
By Chris Kuehl, Ph.D.
At some point we might be able to talk about the economy without focusing on the tariff situation, but that time has not yet arrived. It has become nearly impossible to determine the policy in place for more than a day.
The investment community has come to call these the TACO tariffs (Trump Always Chickens Out). As one would expect, this term infuriates Trump, and he may stick with them in the future to make a point. The assertion is that he changes his mind when presented with the impact of the decisions. It may also just be part of the negotiating process.
It is probably time to revisit the motivations behind the tariff struggle, as the priority ranking seems to shift on a daily basis. From the beginning there have been three rationales or justifications for the tariff policy.
The first is an attempt to recover some of the manufacturing base the U.S. has lost over the last several decades. The manufacturing sector once accounted for almost 25% of the nation’s GDP (in the 1960s and 1970s), but that share has shrunk to 10%. Imports played a major
role in this decline, but it was not the only reason for all the job loss (some 20 million in the 1990s alone). Technology replaced a great many of those industrial jobs, but so did outsourcing and imports. The thinking now is that restricting imports would allow the recovery of the industrial sector. It is clear that re-
stricting imports or making them more expensive will help, but there are many other changes that would need to take place – changes the manufacturer has been asking for over a several-decade period: Labor force expansion, infrastructure support, assistance in developing
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The Ongoing Role of REIA Groups in Supporting Real Estate Investors
By Rebecca McLean Executive Director, National REIA
Iwas on a podcast this week to talk about what our associations across the country are seeing in their regions and markets as it pertains to real estate investing. Are people sitting it out until they are more certain about the economy? Are there strategies that are working better than others right now? What are the biggest concerns that investors have? We covered all those topics and more – and during that interview it hit me harder than ever – National REIA and our affiliated groups are vital to individual investors, and our dedicated and hardworking group leaders have the very tough job of constantly determining what our members need and finding ways to deliver it.
As the Executive Director of the National REIA, I have the privilege of witnessing firsthand the unwavering commitment of our local and national REIA groups to supporting real estate investors through every season of the market. Whether the media—spanning legacy outlets to TikTok influencers—hypes real estate investing as the hottest opportunity or turns skeptical when economic tides shift, REIA groups remain the steadfast backbone of our industry. We are here for the dreamers, the doers, and the determined, providing resources, connections, and critical insights to help investors thrive.
When real estate investing captures the public’s imagination, often fueled by viral videos or glowing news segments, we see an influx of “seekers”—individuals eager to explore whether this industry is right for them. REIA groups, both local and national, serve as their first port of call. Our local associations and chapters offer a welcoming environment where newcomers can learn the ropes, from understanding market fundamentals to navigating financing options. Through educational workshops, networking events, and mentorship opportunities, we empower these aspiring investors to make informed decisions. For many, their first REIA meeting is a pivotal moment, where they connect with seasoned professionals who demystify the process and share practical strategies for success. We don’t just open the door to real estate investing; we provide a roadmap to help seekers chart their path with confidence.
But our role extends far beyond onboarding newcomers during boom times. When media enthusiasm wanes and headlines question the viability of real estate investing, REIA groups remain a vital resource for active investors. Economic cycles are inevitable, and market downturns can test even the most experienced professionals. During these periods, our commitment to supporting the industry shines brightest. National REIA and our local chapters provide a robust suite of resources tailored to the needs of seasoned investors. From access to discounted products and services through our vendor partnerships to exclusive industry data and market insights, we equip our members with the tools to stay competitive. Our data-driven reports and trend analyses help investors identify opportunities, whether it’s capitalizing on distressed properties or pivoting to emerging markets.
Perhaps most critically, REIA groups serve as the industry’s watchdog, keeping our members informed about legislative changes that could impact their businesses. From state landlord tenant laws to federal tax policies, we monitor the regulatory landscape and provide timely updates to ensure compliance and protect our members’ interests. For example, recent shifts in landlord-tenant laws or changes to capital gains tax structures have significant implications for investors. National REIA’s advocacy efforts, combined with our local chapters’ grassroots engagement, ensure that our members’ voices are heard in legislative halls, helping
to shape policies that support a thriving real estate ecosystem.
Beyond resources and advocacy, the heart of REIA lies in community. Our groups foster connections that transcend market conditions, bringing together investors, lenders, contractors, and other professionals to share knowledge and forge partnerships. These relationships are invaluable, whether it’s a referral to a trusted property manager or a lead on a new investment opportunity. In times of market uncertainty, this network becomes a lifeline, offering support and collaboration to navigate challenges.
At National REIA, we take pride in our role as a constant in an ever-changing industry. When real estate investing is the darling of the media, we welcome and guide the influx of new talent. When the market cools and headlines turn cautious, we stand firm as the go-to resource for active investors, providing the tools, insights, and advocacy they need to succeed. Our local associations and chapters amplify this mission, tailoring support to the unique needs of their communities while drawing on the strength of our national network. Together, we ensure that real estate investors—novice and veteran alike—have a trusted partner in their corner, no matter the market’s mood.
Rebecca McLean is the Executive Director of National Real Estate Investors Association.
NREIA Legislative Update
Swan Song: Tassell
Accepts Position
with USDA in Trump Administration
Agoodbye is only until Hello! It has been an honor and a privilege to work with so many great people from across the country. In fact, it is heartening to know the entrepreneurial spirit is so strong in our country. I look forward to hearing about your successes and will be watching from my new perch inside the Trump Administration. National REIA is in good hands with a great team! So, in June I start a new position as the Ohio State Director for Rural Development, with the USDA, and by staying in Ohio this soon-to-be grandfather will be close to a soon-toarrive (August/September) baby girl… I wish you all the best – may God bless each of you. –
Charles Tassell
Federal
Three to six months to settle down for a better economy: There is a growing consensus that the 2nd half of the year will be much better than the 1st half, with an increasing expectation that a year from now the end of ’24 and 1st Quarter of ’25 will be regarded as a brief recession. Again, it’s something that can only be determined in the rearview mirror! However, there are fewer and fewer equity groups that are investing in single-family housing nationally, with a varied housing experience across the country – it will be critical to stay plugged-in to your local association and the new quarterly data reports from Homeworthi!
As for the federal budget, don’t pay too close attention to the details yet as they are likely to change at least two more times before passage! Not only does the Senate have to pass the reconciliation bill, but the House will have to concur. There will be a lot of sound and fury, signifying … Well, you know. When the final version is ready, we will break out the details like accelerated depreciation and other goodies!
In the meantime, regulations are being rolled back–DOGE aside, this administration is following an Executive Order that requires regulations that increase the cost of housing to be rolled back. Practically, this means that factories can continue to produce gas ovens/ stoves, and lower seer/efficiency HVAC units at lower cost. The rollback has just started and will increase in speed as second- and third-tier appointments are filled!
State level
“Big” housing bills: “Big Housing” is supposed to refer to the growing influence of large-scale corporate entities—private equity firms, institutional investors, and real estate investment trusts (REITs)—in the U.S. housing market, accused of prioritizing profit over affordability. Since the 2008 financial crisis, these players have acquired vast portfolios of single-family homes,
apartment complexes, and commercial properties, reshaping neighborhoods and driving up costs. Firms like Blackstone and Pretium Partners have purchased tens of thousands of homes, converting them into rentals with allegedly steep price hikes. In 2025, with median home prices at $422,000 and rents up 25% since 2020, “Big Housing” is blamed for pricing out first-time buyers and low-income renters. (Please ignore the inflation impact and interest rates doubling!)
Critics argue these entities exploit regulatory loopholes, engage in predatory practices like “rapid evictions,” and reduce housing stock for ownership. For example, in Atlanta, corporate landlords reportedly own 19% of rental homes, correlating with (only) a 15% rent increase since 2021. Supporters, however, claim “Big Housing” stabilizes markets by providing liquidity and professional management, citing improved property maintenance (in some cases).
Blurring the Red / Blue Divide
Squatter’s rights bills vs. rent control & anti-eviction efforts: To combat squatting, states are enacting stricter anti-squatter laws to expedite removal processes and clarify property rights. Many states are following the lead of Florida’s HB 621, effective July 2024, that allows immediate squatter removal by sheriffs and imposes felony charges for property damage over $1,000, setting a national precedent or Georgia’s Squatter Reform Act (2024) criminalizes squatting with up to a year in prison, requiring proof of legal residency within three days. Even New York’s 2025 budget redefined squatters as non-tenants, enabling police to remove them without lengthy evictions, addressing prior laws granting tenant rights after 30 days. Illinois updated its laws in 2025 to streamline evictions, allowing police more authority to bypass months-long processes. Texas proposed bills (HB 1076, SB 465, SB 1333) to speed up removals and penalize fraudulent leases, responding to rising squatting scams. California is exploring similar legislation for 2025, with legislators discussing expedited evictions, after extensive lobbying efforts. Washington enacted House Bill 1217 in May 2025, capping annual rent increases at 7% plus inflation or 10%, whichever is lower, effective January 2026. It includes manufactured homes at 5% plus inflation (max 7%). Oregon, the first state with statewide rent control (2019), maintains a 2025 cap of 10% or 7% plus inflation, amended by SB 611 to prevent spikes like 2023’s 14%. California’s Tenant Protection Act (AB 1482) limits increases to 5% plus inflation (max 10%), with cities like Los Angeles (3% cap) and Oakland (2.3%) imposing stricter local rules. New York continues robust rent control for pre-1947 buildings, with 2024 updates requiring 60-day tenant notifications; upstate localities push to repeal restrictive opt-in rules. Minnesota and Colorado are exploring rent stabilization, with Colora-
do’s HB24-1259 capping post-disaster increases at 10%.
New Mexico saw a 2025 bill to repeal its rent control ban, driven by a 50% homelessness surge. Rhode Island proposed a 4% cap (HB7049), though it stalled. Conversely, 33 states, including Florida, Texas, and Arizona, prohibit rent control, favoring landlord-friendly policies. So, there is still some divide…
Property Taxes
No one group has benefitted from high property taxes as much as municipalities. The re-evaluations have created windfalls for local governments … but not without reaction!
Every state is dealing with property tax issues in their legislature. Some interesting grassroots and new ideas regarding Allodial titles and property valuation freezes have started to gain traction. An Allodial title means is what some of us think of when we say we own the property—no more taxes on it. Just because you paid taxes when you made them money, paid taxes on the improvements purchased for the property and continue to pay the government every year for the right to own the property – some would say lease—the Allodial Title eliminates that last step. Once it is bought, it cannot be taxed again. While this may seem wonderful, there is a very real concern about how some municipal services, currently funded through property taxes, like police and fire, would continue to be maintained. Watch how this develops in your community and get involved, at least with your voice, or your property of interest may come out worse for the agreement!
Local level
“All politics is local,” per former U.S. House Speaker Tip O’Neill. Make sure to engage in a consistent and regular fashion. And, as Plato pointed out, the one who wants to be the point of contact may not be the best to be the point of contact. Experienced housing providers are needed to engage local elected officials—and dare I say it—become local elected officials. Having lost two races and won four, I can assure you that you and your community will be better for your engagement. As citizens of this country, we must be more than backseat critics. Bring your ideas forward and engage in the marketplace of ideas that is our constitutional republic. If you don’t, who will?
Published quarterly for chapters, associated real estate investor associations, their members and guests.
Editor
Brad Beckett brad@nationalreia.org
For inquiries regarding Membership, Legislative, REIA organization information or to become a industry partner, call National REIA toll free at 888-762-7342
Fax: 859-422-4916
Hours of operation: 9:00a.m. to 6:00p.m. Eastern time zone
Find us online at: info@nationalreia.org www.NationalREIA.org
RE Journal is published by Rental Housing Journal, LLC, publishers of Rental Housing Journal www.rentalhousingjournal.com
Resilience
Publisher John Triplett
john@rentalhousingjournal.com
Editor Linda Wienandt
linda@rentalhousingjournal.com
Associate Editor
Diane Porter
Advertising Manager Terry Hokenson terry@rentalhousingjournal.com
The articles in RE Journal written by all authors are presented to you for educational purposes only. The authors and the National Real Estate Investors Association strongly recommend seeking the advice of your own attorney, CPA or other applicable professional before undertaking any of the advice or concepts discussed herein. The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of National REIA or Rental Housing Journal, LLC. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Rental Housing Journal, LLC, 4500 S. Lakeshore Drive, Suite 300, Tempe, AZ 85282. (480) 454-2728 / (480) 720-4385 © 2025, all rights reserved.
By M. Jane Garvey
One of the most important personal traits for long term success in any endeavor is resilience. According to MerriamWebster Dictionary, resilience is the “ability to recover from or adjust easily to misfortune or change.” It isn’t what happens, it is how you react. Your attitude is key.
When my late husband and I first started our real estate investing ventures, we were looking for a way to safely invest so that we would have a more prosperous future. Using our “after-hours” time to do something constructive seemed like a great idea. Many friends and family members questioned the wisdom of these ventures. They couldn’t imagine giving up their free time or taking on responsibilities like the ones we were choosing. Would our efforts really be worth it?
I will say that it has been an interesting journey. We were buying beat-up properties and rehabbing them. Some we were keeping for rentals. Both ends of the business presented lots of opportunities to learn. Our friends and family had many opportunities to tell us “We told you so.” We persisted anyway. It took about three years for us to recognize that the “real” jobs were holding us back and to muster up the courage to give up the certainty of the guaranteed paychecks. This was a big deal. It came with lots of questioning of our sanity by ourselves, our friends and our family.
Over the years being willing and able to adjust has been very important. Adjusting methods and direction is a continuous necessity. The market shifts, the business changes, the laws change, the people change, and the “tools” change.
There will always be opportunities to do it better, or to do something different that will improve outcomes. Then throw into the mix the occasional unexpected repair, disaster, or other challenge and resilience becomes a necessity.
Keeping your attitude right is a challenge for many. This is something that requires surrounding yourself with people and voices that understand and support you. Most of us don’t start out with the encouraging environment needed. You can’t complain about things to friends and family and expect them to continue to encourage your self-flagellation. Many investors don’t feel comfortable discussing the successes of their business with these same friends and family either since it may feel like bragging. So, all these friends are reacting to is the airing of the problems. The rational question is: “Why would you do this?” They can’t be encouraging you when what you are doing takes time away from their relationship with you and seems to have nothing but downsides. I treasure these people as friends but try to avoid talking about the day-to-day business with them. Our time together is for rejuvenating.
Over the years I have found the real estate investment community is the best place to find people who understand and support. At any investors association meeting you will find people discussing challenges they are facing, and others offering possible solutions. Learning lessons from other peoples’ experiences can save you money, time, and stress. You will find people talking about opportunities and looking for guidance on how to make the most of them. These conversations can help you find the right opportunities to match your resources. You will find people sharing successes to help to encourage and motivate. Resources
and contacts are often shared, easing the way to implementation of ideas shared. It is time to surround yourself with the amazing resources of one or more real estate investors associations. Make the time to get involved. There is nothing like having people around you who speak your language, understand your wins and losses, and who will encourage you in ways too numerous to detail. This is the easiest way you will find to boost your resilience and speed you on your journey to amazing success.
Jane Garvey is President of the Chicago Creative Investors Association.
5 Smart Tips for Real Estate Investors Using a Self-Directed IRA
By Carl Fischer
For many real estate investors, discovering that you can hold real estate in a tax-advantaged retirement account is a game-changer. SelfDirected IRAs (SDIRAs) and solo 401(k) plans open the door to powerful wealth-building strategies that extend far beyond traditional stocks and bonds.
But with this expanded freedom comes a responsibility to understand the rules, and with the right guidance, they’re more than manageable. By staying informed and working with experienced professionals, you can confidently use your retirement account to invest in real estate and enjoy the long-term benefits of tax-advantaged growth.
Here are five smart reminders to help you stay on track and maximize your investments with an SDIRA:
1. Title the Property Correctly from the Start
One of the most exciting moments in real estate investing is closing on a property, and when that property is held in a Self-Directed IRA, it’s important to get the paperwork right.
Instead of titling the property in your personal name or your LLC, the title should reflect the ownership of your retirement account. For example, it might read: “CamaPlan, Administrator, FBO [Your Name] / IRA number.”
This ensures your IRA properly holds the property and helps preserve the tax benefits. A knowledgeable title company and your SDIRA administrator will help guide you through this step to ensure a seamless process.
2. Understand and Avoid Prohibited Transactions
The IRS has clear guidelines about what your IRA can and cannot do. These rules are in place to maintain the tax-advantaged status of your account, and while they may sound strict, they’re easy to follow once you understand them.
A key principle is avoiding what’s called “self-dealing.” This means you and certain close family members (known as “disqualified persons”) cannot personally benefit from the IRA-owned property, such as living in it, working on it, or selling a property you already own to your IRA.
Instead, think of your IRA like a separate investor, one that works on your behalf for future benefit, not present-day use. Staying within these boundaries ensures your account stays protected and compliant.
3. Use IRA Funds for All Property Expenses
As a real estate investor, you’re used to acting fast, especially when an issue arises. But with an SDIRA, it’s essential to pause and remember that all property expenses must be paid directly from the IRA. That includes repairs, maintenance, property taxes,
insurance, utilities, and even closing costs.
Using personal funds for these expenses, even with good intentions, is considered “commingling” and could affect the tax-advantaged status of your account. The good news? When you plan and work with your administrator, it’s simple to ensure your IRA is funded and ready to handle expenses.
4. Plan for Liquidity
Real estate is a powerful long-term investment, but it’s also important to keep your short-term cash needs in mind.
Your IRA should always maintain sufficient liquidity to cover unexpected expenses, such as a new HVAC system, a sudden vacancy, or emergency repairs.
Because IRAs have annual contribution limits, you can’t just “top it off” in the moment. Still, you can fund your account strategically or even transfer from another retirement account to ensure you have the resources you need.
Smart investors often keep a cushion of cash or liquid assets within the IRA to provide flexibility and peace of mind.
5. Know When Debt or Flipping May Trigger Taxation
Yes, you can use non-recourse loans to buy real estate in your SDIRA, and many investors do. However, it’s worth being aware of Unrelated Business Income Tax (UBIT) and Unrelated Debt-Financed Income (UDFI), which may apply when using leverage or engaging in business-like activities, such as flipping properties.
These taxes don’t make real estate a bad investment in a retirement account; they require informed planning. Many investors opt for Roth IRAs, where tax-free growth can offset UBIT more effectively.
Again, this is where expert guidance comes in. A well-informed administrator and tax advisor can help you structure deals to minimize or even avoid UBIT, depending on your goals.
Final Thoughts: With the Right Guidance, Self-Direction is Empowering
Using a Self-Directed IRA or solo 401(k) to invest in real estate isn’t just a loophole; it’s a legitimate and time-tested strategy used by savvy investors, industry leaders, and even billionaires. People like Peter Thiel and Warren Buffett have leveraged the power of self-di-
rection to grow tax-advantaged wealth over time, and so can you.
Yes, the rules are specific, but they are learnable, navigable, and well worth it. When you work with an experienced provider like CamaPlan and build a strong team around you, you’ll be empowered to make confident, compliant decisions.
By avoiding common mistakes and staying proactive, you can transform your SDIRA into a powerful tool for long-term growth, legacy building, and achieving financial freedom.
Let CamaPlan support you in building your future with clarity, confidence, and control.
Carl Fischer is one of the founders and principals of CAMA Self-Directed IRA, LLC (dba CamaPlan). CamaPlan is a national, self-directed tax advantaged plan administrator company headquartered in Ambler, PA.
Members of National REIA can save up to $784, including a free consultation with the founder, one year of VIP customer service, and the opportunity to set up a new account for only $1. Plus, there are no annual fees until your first investment. You’ll also receive one free expedited transaction processing and two complimentary outgoing wires for your real estate deals. Please visit web.iraasset.app/nationalreia for more info.
Tariffs and the Residential Landlord
By Scot Aubrey
With all the talk about tariffs—taxes imposed on imported goods—the general public tends to only imagine the impact they will have on manufacturing, trade, or retail. But for residential landlords like us who own and manage rental properties, tariffs can have surprisingly significant consequences. From rising maintenance costs to inflationary pressures that influence rent dynamics, tariffs affect more than just international commerce; they impact our bottom line.
Repairs and Renovations Will Get More Expensive
One of the most direct ways tariffs hit residential landlords is through increased costs of materials. Many of the everyday items we use to maintain and upgrade our properties are imported; everything from light fixtures and appliances to flooring, plumbing parts, and even drywall. With tariffs on these imported goods prices rise, which increases the cost of maintaining or renovating our rental units.
If you think about the items that we replace most often, they are likely made of steel and aluminum, which make replacement appliances, HVAC systems, and water heaters more expensive. Tariffs on lumber affect the price of framing, fencing, and decking. Even seemingly minor upgrades like cabinet hardware or lighting fixtures will become pricier if tariffs are in play.
If you manage more than one property, tariffs have the potential to create a financial squeeze you hadn’t planned on when you purchased the property. Routine repairs become more expensive, and larger renovations—like kitchen remodels or roof replacements—require more capital. If you are operating on tight margins, these increased costs may delay necessary work or force you to make lower-quality choices that could affect property value or tenant satisfaction.
Tariffs Can Disrupt the Supply Chain
Key replacement parts and materials may become harder to source because of trade restrictions or back-
logs. With that, repair timelines stretch out, meaning you could be waiting on a critical component that without, your property is uninhabitable. The inability to place a tenant in the property can also place undue financial pressure on landlords.
Extended vacancy means lost rental income—and in competitive markets, not having a unit ready in time can mean missing the seasonal peak in tenant demand. Landlords who rely on quick turnovers or who manage short-term rentals may be hit especially hard. It may be advisable to stock up on those items that fail more often to ensure your property is good repair and ready for the next tenant.
Can You Pass the Additional Costs On?
In theory, landlords could offset rising costs by increasing rent. In practice, it’s not always that simple. For many of us, local market conditions play a huge role in rent flexibility. In high-demand markets with limited housing supply, it might be possible to raise rent to match cost increases. But in more balanced or competitive markets, raising rents could result in tenants leaving, leading to turnover costs and potential vacancies.
And if you happen to own rental properties in cities with rent control or rent stabilization laws, they will cap how much a landlord can increase rent year-overyear. If you are a landlord in one of these areas, rising expenses from tariffs may not be recoverable through rent at all.
Time to Be Strategic
What can you as a landlord do to help offset or protect your investments against the economic pressures that tariffs introduce?
1. Source domestically where possible: While not always cheaper, buying American-made products can help avoid tariff-related costs and lead times. Local sourcing also supports domestic businesses and may improve quality control.
2. Plan renovations carefully: Scheduling upgrades during off-peak seasons, or opting for materials with more stable supply chains, can help avoid costly delays and price spikes.
3. Budget with more cushion: Expecting costs to fluctuate more due to tariffs, landlords may need to increase reserve funds to cover surprise repairs or longer renovation timelines.
4. Lock in long-term contracts: For services like lawn care, pest control, or routine maintenance, longer-term agreements can help keep costs predictable even if broader inflation rises.
5. Consider energy efficiency upgrades: Tariffs may increase the upfront cost of certain appliances or systems, but energy-efficient investments can reduce long-term operating costs and appeal to tenants who care about sustainability.
The impact of tariffs won’t be felt just by big business; they will filter all the way down to everyday residential landlords. Rising costs, delays, and broader economic shifts caused by tariffs can make managing a rental property more expensive and complicated.
By staying informed and adjusting strategies accordingly, landlords can protect their investments, maintain healthy tenant relationships, and keep operations smooth—even as the trade winds change. Being proactive, flexible, and budget-conscious has never been more important for rental property success.
Scot Aubrey is Vice-President of Rent Perfect, a private investigator, and fellow landlord who manages shortterm rentals. Subscribe to the weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up to date on the latest industry news and for expert tips on how to manage your properties.
Members of National REIA can take advantage of special pricing from RentPerfect; the solution for rental property owners and managers for screening & managing tenants. Learn more by visiting www.rentperfect. com or calling 1-877-922-2547.
By Gita Faust
YThe Hidden Leak: How Bookkeeping Blind Spots Drain Investor Returns
ou’ve closed deals most investors dream about. But if your books can’t keep up with your business, you’re not building wealth—you’re just busy. I’ve seen seven- and eight-figure portfolios run on spreadsheet chaos, QuickBooks files no one wants to open, and financials that confuse more than they clarify.
What have I learned in 50+ years? It’s not the big losses that hurt—it’s the quiet leaks that go unchecked. Bookkeeping isn’t just admin. It’s intel. And when it’s
off, so are your returns, your decisions, and your sleep. This article walks you through five common blind spots I see in high-value portfolios—and what happens when you finally plug them.
Short-Term Rentals (STRs): The Profit Mirage
You’re making bank on Airbnb. Bookings are solid, your cleaner’s on speed dial, and your calendar’s lit up like a Christmas tree. But here’s what I see behind the scenes: The books are lying to you.
All those variable expenses—turnover cleaning, supplies, toiletries, platform fees—are often lumped into buckets like “Repairs” or “Cleaning.” Not by stay. Not by unit. Just... one big pile. So what happens? The P&L shows revenue, sure. But which property is actually making money? And which one’s bleeding you dry? I once worked with an STR investor with 17 properties. Gorgeous places. However, after we cleaned up their books and tracked each stay by unit, it turned out that three of them were consuming 70% of their profits. They sold two, reworked pricing on one, and dou-
bled margins in six months. If you can’t tell which listings are really profitable, you’re not running a shortterm rental business. You’re running a guessing game. Let’s fix that—and give your portfolio the clarity it deserves.
Syndications: The Invisible Costs That Erode Trust
You’ve raised capital. You’ve closed the deal. You’ve got LPs emailing screenshots of their wiring instructions and hoping for double-digit returns. But here’s the part no one brags about on LinkedIn: When the books don’t match the pitch.
I’ve seen syndicators tracking $10M+ deals with spreadsheets… or worse, lumping all activity into one generic P&L. No segmentation by asset. No clarity on preferred returns. No audit trail for capital calls or distributions. It’s fine—until your investors start asking questions. Then it’s panic mode.
One client called me after their investor portal didn’t match what was in QuickBooks. After digging, we found three months of misapplied interest payments and a botched distribution. We rebuilt the ledger, created reports by investor share class, and added internal review controls. The panic disappeared— and so did the excuses.
When investors hand you their capital, they’re not just buying into the deal. They’re trusting you to protect their belief in you. If your books can’t show exactly where every dollar went, you’re not ready to scale. I help you get there— quietly, precisely, and with systems that make your investors say, “Finally, someone who gets it.”
Flips: Big Margins, Bigger Bookkeeping Gaps
Flipping properties isn’t for the faint of heart. You’ve got contractors ghosting, materials back-ordered, and three subs arguing over whose tool trailer is blocking the driveway. The last thing you’re thinking about? Clean books. Until they come back to bite you.
Most flippers I meet have no idea what they *really* made on a deal. Why? Because the labor, materials, staging, dumpsters, utilities—they’re all scattered. Some are in one entity. Some are on a personal card. Some were never recorded at all. So when tax time hits? They either overpay, underpay, or under-report.
One seasoned investor brought me a pile of receipts and said, “I think I made $80,000 on this one.” After we matched every line item and reconciled the closing statement? It was $38K. Still a win— but not the one he thought. That shift changed how he sourced deals from then on.
If you’re flipping homes with blurry numbers, you’re gambling, not investing. Let’s bring the real profit margins into the light—so you’re not building
Navigating IRS Form 8824: A Guide to Reporting Like-Kind Exchanges
By David Gorenberg
For real estate investors and business owners, like-kind exchanges under IRC Section 1031 can offer significant tax deferral opportunities. After participating in a 1031 Exchange, taxpayers must complete and submit IRS Form 8824 to remain compliant with the exchange rules.
This article explores the purpose, structure, and filing requirements of Form 8824, providing a basic understanding for anyone involved in qualifying property exchanges.
What is IRS Form 8824?
IRS Form 8824, entitled Like-Kind Exchanges (and section 1043 conflict-of-interest sales), is the form used to report a 1031 exchange to the IRS. When a taxpayer exchanges qualifying business or investment property for another qualifying business or investment property following the strict IRS rules, the taxpayer will be eligible to defer their capital gains taxes under Section 1031.
This form serves two critical purposes:
1. It documents the details of the exchange, including the properties involved, compliance with the statutory timing requirements, and the parties involved in the transaction.
2. It calculates the realized gain or loss, the amount of gain deferred, and the adjusted basis of the replacement property.
Understanding Like-Kind Exchanges
A like-kind exchange allows taxpayers to defer recognition of capital gains and related state (if applicable) and federal income tax liability on the exchange of qualifying business or investment property. The term “like-kind” is broadly defined for real estate and refers to the nature or character of the property, not its grade or quality. Thus, all business or investment property is “like-kind” regardless of asset class.
To qualify for a Section 1031 exchange:
• Both the relinquished and replacement properties must be held for productive use in a trade or business, or for investment;
• Properties must be exchanged in a properly structured series of transactions (rather than simply a sale followed by a purchase);
• Strict timelines must be observed. The replacement property must be identified within 45 days and acquired within 180 days of the transfer of the relinquished property.
Key Components of Form 8824
Form 8824 is divided into four parts:
• Part I: This section describes the properties involved, the timing of the disposition of the relinquished property, the timing of the identification of the replacement property as well as the timing of the actual acquisition of that property. The taxpayer is also asked to acknowledge whether the exchange occurred between related parties.
• Part II: This section requires the taxpayer to disclose the identity of the related party disclosed in Part I, their relationship with the taxpayer, their Social Security or Tax Identification Number, and their address. It also asks the taxpayer to verify whether either party disposed of their replacement property within the preceding two years, and whether that disposition qualifies for one of three narrow statutory exemptions to the two-year holding period.
• Part III: This is where the taxpayer calculates the realized and recognized gain or loss from the exchange, determines the basis of the new, replacement property, and discloses the value of any non-like-kind property involved in the transaction.
• Part IV: This section does not apply to Section 1031 exchanges, but rather to Section 1043 Conflict-of-Interest sales. The note at the top of this section indicates that this part is used only “by officers or employees of the executive branch of the federal government or judicial officers of the federal government” (and certain related parties) involved transactions involving Section1043. Accurate reporting is essential to a valid 1031 Exchange. Mistakes on Form 8824 can result in audits or unexpected tax liabilities. For this reason, it’s highly recommended that taxpayers participating in Likekind Exchanges consult with a tax advisor who is wellversed in 1031 exchange regulations.
Filing Requirements and Deadlines
Form 8824 must be filed with your federal income tax return (Form 1040, 1120, 1065, etc.) for the tax year in which the exchange took place. It should be submitted by the tax return’s original due date, including extensions if applicable.
Conclusion
Form 8824 plays a crucial role in documenting and
Deals, 10-Cent Books ... continued from Page 10
your business on a guess and a gut feeling.
Commercial Rentals: One Building, Multiple Mysteries
Commercial real estate looks solid on the outside. Long leases, higher rents, fewer turnovers. But inside the books? It’s often a maze of tenant deposits, NNN expenses, CAM reconciliations, and property tax chaos—especially if your accountant doesn’t speak “commercial landlord.”
I worked with a client who owned a retail strip center. Four tenants, different lease terms, and a property manager who sent over lump-sum reports. The owner couldn’t tell who was current, who was delinquent, or what portion of repairs should be billed back. One missed reimbursement alone was worth $8,400. That’s not a rounding error. That’s real money.
We built out tracking per lease. Created balance sheet schedules for deposits. Matched lease terms to P&L line items. For the first time, the owner saw the building’s
actual net operating income (NOI)—not just what was deposited into the bank account.
Commercial investing is a serious business. You wouldn’t leave a tenant lease unsigned—so don’t leave your financials vague. You need books that understand the complexity of what you own. I do. And I help ensure your numbers accurately reflect the value you’ve built.
Clarity Isn’t Optional. It’s the Advantage. I’ve been doing this since before QuickBooks existed—and I still love turning financial chaos into confidence. Whether you’re flipping properties, managing short-term rentals, or juggling investor capital, the truth is the same: Your numbers need to tell the real story. Not just to the IRS. To you. Because you can’t scale what you can’t see. Most of my clients come to me not when things are crashing—but when things are growing faster than they can manage. That’s the perfect time. Clean books, tracked by property, by deal, by class—this isn’t overkill. It’s what lets you act like the CEO your portfolio needs. If you’ve built an empire,
preserving the tax-deferral benefits of a like-kind exchange. Whether you are an individual investor or a business entity, properly reporting these transactions is essential to documenting compliance with the 1031 rules and regulations and maximizing long-term investment goals. Given the complexity of the rules and calculations, partnering with a qualified CPA and/or tax attorney is highly encouraged.
The material in this article is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice.
David Gorenberg is a third-generation real estate investor, an attorney and Certified Exchange Specialist®, and serves as Director of Education for Accruit. Members of National REIA can take advantage of special pricing from Accruit. Learn more by contacting David directly at 215-770-6354, or by visiting www.accruit. com.
don’t let 10-cent books hold it back. Let us see clearly— and build smarter.
Gita Faust is the founder & CEO of HammerZen, which helps businesses save time & money by keeping track of The Home Depot purchases and efficiently importing receipts and statements into QuickBooks.
National REIA members receive discounts on QuickBooks services and software. Learn more by visiting www.hammerzen.com/nreia.
Member Spotlight — Brendon Pishny
parents owned farms, and I spent my summers working on my uncle’s farm. I didn’t have any major plans for the future, but I enjoyed farming and assumed that would be my path.
Prior to the end of high school, I was offered the opportunity to play football at Fort Hays State University in Hays, Kansas. I spent the next five years playing tight end for the Tigers and majoring in agriculture. After graduation I took a job in the Kansas City area at a lawn care company.
Not long after taking that position I married my high school sweetheart, and we had three children. I wasn’t happy with what I was doing, and knew I was created to do something else. So, with my wife’s blessing, I quit and became a stay-at-home dad. I don’t regret that decision, but after a few years I was struggling with purpose and identity. After trying several different ventures, I thought, “What about real estate?” I immediately jumped in with both feet.
Where is your current market and what is your focus or area of expertise?
All of my properties are located within the Johnson County area of Kansas. JoCo (Johnson County) is a highly desirable area close to Kansas City. It’s an easy commute to downtown, but yet, has a laid back, small town, feel. JoCo has some of the best rated schools in the state and because of this it has seen immense population growth over the last few decades. The real estate market is very stable and sees consistent and constant appreciation. I invest primarily in single-family homes, side-by-side duplexes, condos and townhomes. I’m very good at finding other landlords who are ready to exit out of their properties and offering them owner finance options that benefit both of us.
How did you get started?
As soon as I had the thought that I wanted to try real estate I immediately called my parents with the idea. After explaining my situation and what I wanted to do I asked them if they could help me. I’m not sure they really believed in the real estate thing, but they believed in me, so they said yes. We quickly agreed on how much financial assistance they would provide and put an agreement in place.
The second thing I did was walk into a local real estate broker and ask to start looking at properties. Within two weeks I had an offer on a property and about 30 days after that we closed on a little half-duplex down the road from my house. I rented it to the first person that showed any interest. I made a lot of mistakes, but I learned from them and kept moving forward.
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Describe a typical work week for you as a real estate investor:
It depends. Every week is different. I go to a lot of networking meetings. Real estate is a relationship-driven business so this is key. I also manage my own properties, so one day I get up, go to a meeting, work on some bookkeeping tasks and end up at a property that evening showing it to potential tenants. The next day I’m
elbow deep in a can of paint sprucing up some walls or stuck under a bathroom vanity replacing a faucet.
How long have you been investing in real estate?
I bought my first property in April of 2013, so just over 12 years.
Tell us about your first deal:
My first deal was a half-duplex in Olathe, which was perfect since I lived nearby. It was purchased off the MLS for $92,950. I rented it for $950/month. My parents partnered with me on it to help me get started. The other half was owned by someone else. I told them that if they ever wanted to sell their side, to contact me first. Years later they did, and I now own the entire building.
How do you fund your investments?
I use conventional loans from various lenders and my local credit union. In the beginning I used capital made from flip projects for the down payment. Now I’m pulling equity from other properties or just saving a down payment the good old-fashioned way. My favorite way to purchase properties is by negotiating seller finance deals with owners who have paid off properties.
Do you have a real estate license?
Yes, but I really only use it for my own transactions.
What projects are you currently working on?
Not a ton right now. I recently purchased a condo so I’m just finishing getting it ready to rent. New tenants should be moved in by the time this article is published.
How much time do you put into your real estate education?
I spend several hours a week listening to podcasts, reading books and attending webinars. I have weekly networking meetings I attend where I learn from others. No formal education other than my state’s continuing-ed requirements to keep my license.
Has coaching or mentoring played a part in your success?
Yes, the people I meet at networking events have been crucial. I’m able to learn so much from others that are ahead of me. One of the best years I’ve ever had was a year I made a goal to take one person out for lunch or coffee every month. For the cost of a meal, I was able to connect with an advanced investor for over an hour.
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Brendon with his wife, Shannon, kids, Tanyon, Kabreya and Azaria and grandpuppy, Hazel
Brendon and daughter, Azaria, contemplating a new purchase.
Brendon making a presentation at his local REIA group
Member Spotlight — Brendon Pishny
I’ve never taken a guru class. Everything you need to know can be found in your local REIA groups.
What are your current and future goals?
This seems to keep changing. As of now I have a goal to have 20 paid-off properties by the age of 50. Recently, I’ve decided to work on a book and get it published by the end of next year.
What has been your top struggle in this business?
Explaining to people what I do. Most people work 9-to-5 jobs. They don’t understand that I don’t work certain hours and that my success is totally dependent on me. People don’t see owning rentals as a real job.
What do you like most about what you do?
Flexibility. If my family needs me, I can make myself available. My wife and I often go out to lunch or do an activity together simply because we can.
Do you have a tip or advice that you would pass along to other investors?
Keep working on yourself. Success in
real estate is determined by your willingness to learn from your mistakes and get better. Don’t be afraid to go for it. Also, stay focused. Once I decided I was going to focus on rentals, my business
exploded. Too many people chase shiny objects.
How important is joining a local REIA to a new investor?
So important that if you have something else scheduled for the same evening you should cancel it. Or if you think you’re too tired, go anyway. You can’t get that day back!
What is your favorite self-help or business book?
For business I love The Book on Rental Property Investing by Brandon Turner and The Slight Edge by Jeff Olson. For personal development I love Have a New You by Friday by Kevin Leman and for parenting small children I would recommend Scream Free Parenting by Hal Runkel.
Do you have any interesting hobbies or something unique that you like to do?
I love smoking different meats on my Traeger and watching college football. Also, I’m learning how to play drums— with my son’s help. Being in Kansas City, we’re big Chiefs fans. I read a ton, but most of all I love spending time with my family and dogs.
Does your business have a website?
I haven’t had the need for a website yet. Maybe in the future.
Social media accounts:
Facebook:
https://www.facebook.com/bpishny
LinkedIn:
www.linkedin.com/in/brendon-pishny-8869a51a
Anything else you’d like to add?
I would like to thank my wife, Shannon; my kids, Azaria, Tanyon and Kabreya; and my parents, Lon and Janyth Pishny, for their help and support throughout this
journey
The first half duplex that started it all. The other half was purchased later.
Real estate is a family affair. Here are the Pishny kids helping get another property ready to rent.
“We’re from Kansas so of course there’s sunflowers.” Brendon and his family visiting a local sunflower farm near their home.
Another full duplex purchased after sending out letters to owners.
Arizona Lawsuit Against Investors
By Jeffery S. Watson
On March 7, 2025, a complaint was filed in the Superior Court of Arizona in Maricopa County by the Attorney General of the State of Arizona, Kristin K. Mayes, which laid out allegations regarding “a convoluted scheme by the defendants to strip Arizona homeowners of millions of dollars of equity in their homes.”
The AG then defined “equity-stripping schemes” as targeting “homeowners who have significant equity in their homes, but are facing foreclosure by their mortgage lenders,” and “these high-equity homes are worth significantly more than the balance of the mortgage in foreclosure.”
The allegations in the complaint focus on investors engaging in marketing and buying activities designed to “prevent the distressed homeowner from receiving that excess cash by blocking the auction and tricking the homeowner into selling the home far below the fair market value.”
The complaint alleges that since “no rational homeowner would enter into a deal like the ones offered by the equity strippers, …the equity strippers have to trick the homeowners into signing the paperwork, and then they have to rely on lawyers and title companies to help them close these dirty transactions.”
The foregoing will, of course, have to be proven by a preponderance of the evidence in the Arizona court. As an attorney and real estate investor myself, I want to share some of my takeaways after reading this complaint.
1. Know the laws in your state.
First and foremost, if you are an investor dealing with someone in foreclosure, are you aware of a foreclosure protection or rescue statute in the state where the house is located? Is the homeowner covered by that statute by virtue of the property being either their primary or secondary residence? If there is a statute that applies, are you in compliance with the statute? Since approximately half of the states in the nation have these types of statutes on the books, it’s important for you to know the answers to those questions.
2. Always tell the whole truth.
Do not make false statements, whether in writing, verbally, or in online postings, such as, “I’m working with your lender.” Do not do things like leaving notes trying to impersonate a delivery service with a phone number and a message claiming you are trying to deliver important documents, or even worse, making claims that you are a “home advocate” or “hardship specialist” from an organization with a name that appears to be a charitable organization.
3. Put up an adequate amount of earnest money.
The purpose of earnest money is to demonstrate that the purchaser is serious, has intent to buy, and has good faith to continue working with the seller to negotiate a full and fair transfer of the property. Negligible earnest money, like $10, is not legitimate. Again, it is designed to show that you are a serious purchaser who intends to fully perform on the offer (you have the intent, capacity, and ability to purchase the property on the terms set forth in the contract you are proposing).
4. Review your marketing.
Please give serious consideration to the implications made when someone looks at your marketing. What does your message imply? It would be prudent to have a disinterested third-party opinion as to the expressions and implications made with your marketing messages. Are the explicit and implicit marketing messages clearly aligned with your overall business model and the core purpose of your company?
5. How many entities do you really need?
I’m not asking this question just because several pages of the Arizona lawsuit were devoted to listing all the entities owned by the two main defendants, but also from a simple operations standpoint. The more entities you have, the more complex your world becomes. Remember, for each entity to be a valid, legal entity and not an alter ego, that entity needs to be properly filed with the appropriate state authorities. It must also have a written, fully-executed operating agreement, its own taxpayer identification number, and its own separate bank account. All the revenue allocated to that entity should go into that bank account and then go out of that bank account to wherever it needs to go.
6. Understand the Arizona Attorney General’s interpretation of “equity stripping.”
It is buying the home from someone in foreclosure, and they get nothing for their equity in the property. They receive no cash, no relocation assistance, no promissory note, no payment stream, etc. That obviously concerns me. If you are in the business of buying homes from people who are in foreclosure, please make it your consistent business practice to negotiate as to the fair amount of equity they would have in the property should the property either go to foreclosure or go through a sales process. Take the time to document the costs of foreclosure or selling the property on the market. Add those costs to the outstanding and growing loan balance and subtract that from what is determined to be the actual fair market value of the property. This would be their “true equity.” How then do you plan to compensate the homeowner for that true equity?
7. Take things very slowly when entering into any type of long-term business relationship, partnership, or hiring decision that involves a key position. According to the complaint filed in Arizona, there was rampant infighting and a lack of respect among the
three members of the partnership. One of the members passed away in 2024 while the investigation was underway but before the lawsuit was filed. This partnership struggled with issues because one or more of the partners was involved in allegations of failing to pay joint expenses, involvement in transactions leading to lawsuits and investigations, substance abuse, sexual misconduct, and defamation. Even though your partnership may never have these kinds of tragic events occur, it’s important to think about the potential issues you can face in a partnership. As life goes on, people and circumstances change, and it impacts who they are and how they do business.
8. Make sure what you are teaching others to do is legal and correct!
Please do not teach people sneaky side hacks or purported shortcuts. Real estate investing is a thinking-person’s game that involves time, strategy, and a massive amount of integrity. Whether we are just sharing or comparing notes with someone at a real estate meetup, or we’re standing on stage in front of a room full of people, we have an obligation to make sure what we are sharing with others is true, accurate, tested, and vetted.
Jeffery S. Watson is an attorney who has had an active trial and hearing practice for more than 25 years. As a contingent fee trial lawyer, he has a unique perspective on investing and wealth protection. He has tried over 20 civil jury trials and has handled thousands of contested hearings. Jeff has changed the law in Ohio four times via litigation. Read more of his viewpoints at WatsonInvested.com.
The War on Landlords ...
including broad eviction bans and numerous laws rewriting landlord–tenant relationships.
Many of these measures outlasted the pandemic, shifting the legal balance sharply toward tenants and jeopardizing the financial stability of landlords—from small property owners to large nonprofit housing operators.
The barrage of new legislation won’t benefit tenants the way advocacy groups that lobbied for the laws claim, and it won’t make housing more affordable. Instead, the laws provide so many extraordinary protections that they’ve cultivated an attitude among tenants of not paying rents and of using the intricacies of new laws and programs to game the system at the expense of its financial stability.
Research shows that such policies, by discouraging real-estate investment, are limiting housing supply and driving up rents.
Alarmed by the consequences, some local officials are now pushing for reforms. In tenant-friendly Washington, D.C.—where even nonprofit affordable-housing providers face significant losses—Mayor Muriel Bowser recently admitted, “What we want is for people to pay their rent.” Without that, America’s housing crisis will only deepen.
COVID lockdowns hit most U.S. businesses hard, but renter-favoring federal and local policies made the pandemic especially devastating for residential landlords. The biggest blow came from a series of broad national eviction moratoriums for nonpayment of rent, starting with the March 2020 passage of the CARES Act, which included a 120-day national eviction ban. Similar prohibitions followed from the Centers for Disease Control, which remained in effect until August 2021, when the Supreme Court ruled that the CDC lacked the authority to impose such policies without congressional approval.
Further, 43 states and hundreds of local governments used emergency powers during COVID to enforce their own wider proscriptions of tenant removals. While some lasted for just a few months, others extended for years. Eviction bans lasted in New York and Minnesota until 2022, and in parts of California until March 2023. While eviction bans aimed to protect vulnerable tenants, they disproportionately harmed the small landlords who form the backbone of the affordable rental market. Operating in low-rent areas with slim profit margins and limited capital, such owners often struggle to endure sudden downturns. The blanket bans frequently failed to distinguish between renters who couldn’t pay due to lost income and those who could; widespread nonpayment ensued. A summer 2021 census survey estimated that 6.5 million households were behind on rent, many in small buildings of one to four units, typically owned by mom-and-pop investors. Nearly a third of these landlords earn under $90,000 annually; more than a quarter are black or Hispanic.
By August 2021, when the national moratorium ended, a Goldman Sachs study estimated that landlords were owed up to $17 billion in back rent. A National Apartment Association lawsuit against the CDC’s eviction ban claimed that landlords had absorbed nearly $27 billion in losses. Even large, government-subsidized nonprofit housing projects saw a steep and lasting decline in rent payments. The New York City Housing Authority’s rent-collection rate fell from 95 percent pre-pandemic to 60 percent in 2023—long after COVID lockdowns had ended—resulting in more than $500 million in unpaid rents.
To mitigate these losses, the government launched emergency rental-assistance programs—but slow implementation and bureaucratic hurdles left many landlords waiting months for relief. In December 2020, Congress allocated about $46 billion for landlords, but state and local governments were tasked with distribution and lacked the infrastructure to do so efficiently. By the following summer—nearly 18 months after the first eviction moratorium—less than $5 billion had reached landlords. Some states also required both tenants and landlords to file the applications for reimbursement, but many tenants, shielded from eviction, simply ignored landlords’ requests to participate. The bans encouraged widespread rent refusal, even
among those who were still working or had received enhanced government benefits, such as extended unemployment insurance. A Las Vegas landlord reported being owed $10,000 in rent by a tenant who had retained his $80,000-a-year job throughout the pandemic, but he could do nothing about it. “I feel the state has failed me,” he wrote. In New York State, the rental assistance program quickly exhausted federal funds, yet tenants were allowed to keep filing applications, in case new money became available. Even after the state lifted the eviction ban, landlords were barred from evicting tenants who had filed for aid until their applications were processed—despite the program running out of funding.
The revenue shortfalls that property owners suffered during COVID significantly affected the financial viability of rental housing, particularly for smaller landlords. A National Institute of Medicine study on the impact of pandemic lockdowns on landlords reported a notable rise in disinvestment in their properties. More rental buildings went up for sale as the pandemic progressed, suggesting that many owners were considering exiting the business.
Meantime, rents jumped in many markets, as owners who kept their buildings tried to build back their financial stability amid soaring inflation, which raised their costs on everything from energy to building materials to labor. In California, a real-estate broker, Ken Calhoun, noted in a newspaper column a significant decrease in available single-family homes for rent, as owners opted to sell. “California needs more rental opportunities that can best be provided by individual housing providers,” Calhoun argued. “Lawmakers should be promoting policies that encourage investments in rental homes. However, they have declared war on housing providers.”
Landlords have received little sympathy for their challenges. As eviction bans expired or were overturned, local newspapers predicted massive tenant displacement and a surge in homelessness. Few reports provided crucial context: during the pandemic, eviction bans caused tenant displacement to drop well below historical averages. After the CARES Act passed, for example, evictions fell to just 8 percent of pre-COVID levels in April 2020, and they stayed below 20 percent through spring and summer of that year. Even after the Supreme Court overturned the national ban, state restrictions kept evictions below 60 percent of typical levels until late 2021. While evictions briefly exceeded pre-pandemic levels in March 2023, they have since stabilized at normal levels. In reality, post-pandemic evictions simply returned to historical norms.
Sensational headlines and reports from tenant advocates about a national crisis have unleashed a different kind of tsunami: hundreds of new state and local laws marketed as tenant protections. In just three years, local governments have passed 217 measures across 16 categories, including caps on rent increases, restrictions on lease nonrenewals, mandates for landlords to participate in the federal housing-voucher program, and strict limits on security deposits and fees. Pre-COVID, 288 such laws existed nationwide. In other words, since the pandemic, states and localities have nearly doubled the legal framework governing residential leasing. In Illinois alone, up to a dozen new laws regulating landlords took effect on January 1. Many, such as those extending eviction trials and appeals or limiting security deposits, increase risks for landlords. While some measures—such as providing tenants with state-funded legal counsel or banning landlord “retaliation”—may seem reasonable, the details often reveal unintended consequences. These laws can make it harder for landlords to raise rents, allow nonpaying tenants to remain in properties longer, and reduce landlords’ discretion in choosing tenants.
The rise of so-called tenant-friendly legislation will almost certainly make America’s housing affordability crisis greater. In a recent study, finance and business school professors from three universities used a “tenant-friendly” index to look at the levels of regulation of landlords among the states. The study found that those places with the heaviest regulation reduced evictions, but at the cost of a smaller supply of available
housing, higher rents for everyone else, and increases in homelessness. “It is essential for policymakers to understand the delicate balance between the strictness of landlord regulations, evictions, and rent affordability, to achieve their goal of increasing tenants’ welfare,” the authors concluded.
They also observed that, until their study, economic research on evictions had largely ignored the connection between tenant protections and housing affordability. That’s even truer about public-policy debates. Aside from warnings from the real-estate industry itself, few politicians or media voices have raised concerns about how a surge of new tenant laws might influence rental costs and housing availability.
One can just look at rent levels nationwide to see the consequences. Jurisdictions often rated as the most tenant-friendly are also among the country’s priciest. One recent study, for instance, listed California, New York, and Massachusetts among the top tenant-friendly states—and all ranked in the Top Ten for highest rents. California’s average rent is over $500 a month above the national rate, while Massachusetts’s is $262 above the average. By contrast, landlord-friendly states like North Carolina, Texas, Alabama, Georgia, and Indiana—frequent picks for real-estate investors—consistently have rents below the national average. Such correlations raise the question: Why isn’t rent itself used as a measure of how tenant-friendly a state or city is, rather than its tenant regulations?
Migration patterns reveal a similar disconnect. Residents are leaving many tenant-friendly states; the most landlord-friendly are attracting newcomers. Landlord-friendly spots are also where investors are putting money to build new housing—helping to keep those markets more affordable. A 2023 study of metro areas with the most permits for multifamily housing shows that landlord-friendly markets in Texas, North Carolina, and Florida are leading in new housing construction, while tenant-friendly markets like New York, California, and Illinois lag behind, with developers planning the fewest new units relative to population size. As one investor wrote on SparksRental, a real-estate investing website: “I will never invest in tenant-protective cities or states again. It’s just not worth the headaches, red tape, and endless eviction process when the tenant breaks the rules, and you pay the price.”
Few policies illustrate the negative unintended consequences of the new tenant legislation better than the resurgence of rent-control and rent-stabilization laws. As Jason Furman, former head of President Obama’s Council of Economic Advisers, recently told the Washington Post, “Rent control has been about as disgraced as any economic policy in the tool kit.”
Consider New York City. Rent control, in effect since World War II, and rent stabilization, introduced in 1969 for newer buildings, have wrought havoc on the city’s housing market. During the inflationary 1970s, landlords of smaller rental properties, unable to raise rents to cover rising costs, abandoned their buildings, resulting in the loss of 300,000 housing units in just a decade. This crisis followed a major drop in housing construction after New York State gave the city authority to enforce rent control in 1962. As real-estate investment plummeted, new housing starts fell from 70,000 units annually in the early 1960s to as few as 10,000 by the mid-1970s. Housing production rebounded in 1997, after Republican governor George Pataki successfully pushed for the de-control of high-priced apartments, sparking a surge in new building that lasted until 2008. But after Democrats regained control of Albany that year, they curtailed de-control, triggering another housing slump.
Yet, despite the well-documented consequences of rent control, states and cities across the country continue to adopt it, often compounding years of restrictive building regulations and zoning rules that have already stifled housing production and driven up rents. In 2019, California governor Gavin Newsom signed statewide rent-control legislation, described by the media as “safeguards” against rent hikes. The law, introduced in a state with arguably the nation’s worst housing shortage, caps rent increases at 5 percent plus inflation for
Why Real Estate Investors are Rethinking Capital in 2025 The Liquidity Trap
By Jason K Powers
Afew years ago, it seemed as if money was everywhere. Banks were handing out loans at rock-bottom interest rates, hard money lenders were eager to get in on the action, and private capital was flowing freely. Fast-forward to 2025, and the scene has changed dramatically. While real estate remains a strong long-term investment, access to capital has become a serious choke point.
Many real estate investors today find themselves sitting on great opportunities—undervalued properties, up-and-coming neighborhoods, even distressed assets ripe for repositioning—but they’re stuck. Not because the deals aren’t there, but because the liquidity isn’t. The financing environment has tightened, and the rules of the game have shifted.
The Federal Reserve’s decision in May 2025 to hold rates steady for the sixth consecutive meeting underscores a deeper concern: Inflationary pressures persist, and policymakers are showing little interest in loosening monetary policy anytime soon. While this may be aimed at stabilizing the economy, it’s having a real impact on real estate activity at the ground level.
Traditional financing channels have not only become more expensive; they’ve become slower and more restrictive. Banks are requiring higher down payments, scrutinizing debt-to-income ratios more aggressively, and pulling back on commercial real estate loans altogether in some markets. For investors accustomed to easy capital, it feels as if the rug has been pulled out from under them.
At the same time, opportunities are accelerating in certain sectors. Urban revitalization projects—such as the redevelopment of downtown Phoenix or the momentum behind Las Vegas’ stadium-adjacent growth corridors—are creating real chances for those who can act quickly. The problem is, many can’t.
Speed matters in real estate. If an investor hesitates while waiting for a bank to sign off on a loan, that property may be gone. Someone else with ready capital will get the deal. It’s no longer just about finding the opportunity. It’s about being able to execute.
And this is where the conversation starts to shift. More and more investors are looking inward—literal-
ly—and asking themselves: How can I become my own best source of capital?
That question is leading some to revisit or discover the Infinite Banking Concept. At its core, Infinite Banking is a method of using a specially designed whole life insurance policy to build a pool of capital that can be accessed at any time, without relying on traditional lenders. It’s not a gimmick or a get-rich-quick play. It’s a long-term financial strategy that offers control, liquidity, and reliability.
Through a properly structured policy, the investor builds cash value over time. That cash value can then be borrowed against to fund deals, cover expenses, or provide a temporary cushion during market turbulence. And while that loan is outstanding, the cash value continues to grow as if it had never been touched. For the investor, it’s a form of uninterrupted compounding—a financial engine that can keep working quietly in the background.
The appeal in today’s market is obvious. With banks growing more conservative, policy loans don’t require credit checks, debt ratios, or waiting periods. The investor is in control of how and when the money is used— and just as importantly, how and when it’s paid back. That flexibility is hard to come by in a market where lenders are driving the timeline.
This isn’t about replacing traditional financing entirely. It’s about supplementing it. Think of it as having your own line of credit that grows stronger every year. Investors using IBC aren’t just financing one deal. They’re building a personal system they can return to over and over again.
It also encourages a deeper mindset shift: The move from being a borrower to being a banker. Instead of waiting on approval, the investor becomes the one making the decisions. That shift can be profound, especially in a climate where control over capital can make or break an investment strategy.
Of course, Infinite Banking isn’t a silver bullet. It takes time to build. It requires discipline. And like any financial tool, it works best when integrated into a larger strategy. But for investors thinking about the long game—and many in 2025 are—this approach offers more than just a place to park cash. It offers a plan.
In a market where liquidity is king, and banks are less willing to lend, having a system that generates its own accessible capital is becoming a serious competitive advantage. As the lending environment continues to evolve, so too must the investor’s approach to funding.
In the past, access to capital was something you got from someone else.
In 2025 and beyond, the smart investor may need to become the source themselves.
It’s not about abandoning traditional financing, but about complementing it with a strategy that puts more control into the hands of the investor. Those who take the time to build systems that prioritize liquidity and autonomy will find themselves in a much stronger position—not just for the next deal, but for the next decade of opportunity.
Because in a world where flexibility, speed, and control matter more than ever, the real edge isn’t just in the property you buy—it’s in how you fund it.
To learn more about how Infinite Banking is being used by real estate investors around the country, visit 1024Wealth.com/NREIA and download a free copy of “A Real Estate Investor’s Guide to Infinite Banking.”
Jason K Powers is a multi-business owner, real estate investor, and financial strategist partnering with the National Real Estate Investor Association. Trusted by investors nationwide, he helps real estate professionals unlock the power of the Infinite Banking Concept to fund deals, boost liquidity, and create lasting wealth—on their terms. Ready to take control of your capital? Visit 1024Wealth.com/NREIA.
The War on Landlords ...
buildings older than 15 years and prohibits landlords from refusing to renew a lease without proving that the tenant violated its terms—a form of “just-cause” protection that further limits landlords’ control over their own buildings. California also lets municipalities impose stricter rent-stabilization measures. In the past three years alone, 16 California communities have decreed their own rental caps, joining long-standing strongholds of regulation like San Francisco.
Oregon followed California’s lead in 2019, approving statewide caps on rent increases and just-cause limits on evictions. In states without statewide rent regulations but where localities can impose their own, municipalities are rushing to act. Minneapolis voters approved a change to the city charter in 2021, limiting rent increases, joining neighboring St. Paul. In New Jersey, another state where zoning restrictions have contributed to shortages of multifamily housing, dozens of cities, including Newark, Elizabeth, and Atlantic City, have adopted rent controls.
Most recently, Maryland’s two largest counties, Montgomery and Prince George’s, have limited rent hikes to the lower of either 6 percent annually or to the rate of inflation plus 3 percent. But such laws often fail to account for rising landlord costs, which don’t always align with inflation and can outpace it. This can lead owners to defer maintenance, degrading housing quality and limiting availability. In New York, for instance, a recent study found that more than 24,000 rent-stabilized apartments sit vacant, largely because landlords lack the capital to renovate them.
As landlords struggle to regain their financial footing, they face new forms of costly tenant-friendly legislation. Nationwide, eight states and 23 municipalities have passed right-to-counsel and eviction defense fund laws, subsidizing legal representation for low-income tenants. Tenant groups argue that these programs prevent evictions by leveling the legal playing field, but they’ve wound up clogging trial dockets in many municipalities. Tenants who might previously have negotiated settlements with landlords now often opt for full
trials—at taxpayer expense—leading to longer waits for eviction proceedings. Combined with pandemic-related court backlogs, these programs have extended hearing wait times to six months or more in cities like Seattle and New York. In most cases, the tenants pay no rent as time grinds on. And even if the tenants eventually get evicted, the landlords are unlikely ever to recover money they’ve lost while waiting for the courts. Making these delays even more burdensome for owners, many states and municipalities have also restricted the amount of a security deposit that a landlord can demand on a rental. In California and New York, the limit is just one month’s extra rent—exposing the landlord to enormous losses in extended evictions.
Some laws are so onerous that their legality is questionable. A prime example is “source of income” protection legislation, which prevents landlords from refusing tenants who rely on government programs to pay rent, especially federal Section 8 housing vouchers. These laws effectively force landlords to join the voucher program, which Congress originally intended to be voluntary. Participation means that landlords must comply with various conditions, including granting federal officials “unfettered access” to their properties and records, which, some legal experts say, violates landlords’ Fourth Amendment protections against warrantless searches and seizures. Landlords also report that the application process is cumbersome and that federal inspectors often demand exorbitant repairs, exceeding local building-code rules. As many as seven in ten landlords in some markets refuse to participate in the program. (In his May 2 budget proposal, President Trump proposed major cuts to the Department of Housing and Urban Development that would include essentially eliminating Section 8.)In some places, landlords have successfully challenged these mandates. In 2021, Pennsylvania’s Supreme Court unanimously struck down Pittsburgh’s source-of-income law, ruling that state law does not authorize cities to compel landlord participation in a voluntary federal program. At least five other court cases nationwide have similarly
invalidated or weakened these laws. But for now, anyway, 17 states still compel landlords to accept Section 8 vouchers.
Landlords argue that these measures will worsen the country’s housing affordability crisis. Some local officials have agreed and begun to reverse course. Washington, D.C., one of the nation’s most tenant-friendly jurisdictions, offers an example. The city had extended its COVID-era tenant emergency-aid program beyond the end of the pandemic, letting renters stop paying while their applications were under review. Ballooning debts followed, threatening even subsidized nonprofit housing providers. One study found that unpaid rent for affordable-housing operators surged from $10 million in 2020 to $100 million last year, with arrears projected to grow by another $50 million this year. As many as 20 percent of tenants still hadn’t resumed rent payments that they had frozen during the pandemic. “We may be facing a catastrophic failure of our rental housing providers,” warned one real-estate official. In response, the city rolled back some anti-eviction protections last October to make it easier for landlords to remove tenants.
Some states and cities, including Maryland, Indiana, and Philadelphia, are experimenting with free mediation services for landlords and renters in eviction proceedings, in lieu of full court trials. The programs hope to ease court backlogs. In Maryland, a pilot initiative resulted in more than 80 percent of cases getting settled outside of court. That’s proved far more efficient than taxpayer-financed legal representation that leads to lengthy court delays. But the programs are often optional, and too few exist so far.
With a new administration, the federal government has an opportunity to reassess these policies and address the causes of the housing crisis. President Biden supported the trend of tenant-friendly laws in the states and even proposed a national rent-control law. Now, with real-estate developer Donald Trump back in the
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R&D, regulatory relief, tax relief and so on.
The second motivation that has been offered for the tariffs focuses on national security. The U.S. has become dangerously dependent on other nations for key supplies and resources. The vast majority of the chips that are used in our weapons systems come from imports. Most of the time these are supplied by nations allied with the U.S., but not always. Of course, these chips also support the entire U.S. tech sector and there have been efforts to stimulate production of these devices in the U.S. It is not just chips; the U.S. is way behind in developing solar panels, electric vehicles, rare earth commodities and so on. It is assumed that placing tariffs on products from other nations will encourage the expansion of U.S. production, but that process is complex and slow at best.
The third stated motivation for a tariff policy is that it provides room to negotiate. Trump has a reputation as a dealmaker, and the assumption is that he can use the tariff threat to get want he wants from other nations. Take the issue of drugs coming from Mexico. He threatened high tariffs on Mexico if it did not step up its efforts to halt the flow of drugs, and the 20% tariff on China is based on demands that China address the export of chemicals used in the production of fentanyl. The challenge with this motivation is that it is all based on who has the leverage. Sometimes that is the U.S., and sometimes it isn’t. The U.S. is nearly always on the demand side of this equation and China is generally on the supply side. The U.S. needs and wants what China (and others) produce, but these nations need access to the U.S. consumer. The question is: Who needs who the most?
What does all this mean for construction – residential and non-residential? The two salient factors include the impact this has on construction materials and the impact this may have on demand. Obviously, higher prices for steel, aluminum, lumber, appliances and equipment add to the cost of a home or project. The average price of a home is still north of $400,000 but there is considerable regional variation (in California it is $830,000 and in Mississippi it is $267,000). Commercial prices are all over the place as well. Not only have materials gained but so has labor with construction workers averaging $25 an hour (nationally). Home buyers have been daunted by high prices as well as expensive mortgages, and that is likely to intensify as long as yields on the 10-year bond keep rising.
To the U.S. business community, the most vexing part of the tariff situation is the constant fluctuation. A tariff threat is issued that would radically change the supply chain and then a week or two or three later it is rescinded. China was to be hit with a 143% tariff and it was subsequently altered and lowered to 30%. The European Union faced a 50% tariff deadline on a Friday, but by the following Monday there was a month-long delay.
No business decision can be made under these conditions, so the majority of companies just go into a period of stalling and delaying. This is especially true of those in construction as they need to predict costs months and even years in advance.
The War on Landlords
In addition to this concern there is the fact that these tariffs are ephemeral. They have all been created by a stroke of the presidential pen and they can all be undone the same way. Trump constantly changes his mind but the bigger worry is what happens when he leaves office. When Biden took over from Trump, he negated 40% of the executive orders signed by Trump and when Trump came back to power, we undid 40% of Biden’s. No company will invest in producing something if they think they will lose that competitive edge in a few years.
As these charts suggest there is still considerable
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White House, the calculus has shifted. If Trump has learned from his first presidency, he could significantly alter the landscape—and indeed, steps he has taken already, such as the proposed elimination of Section 8, suggest that he intends to do so. He should also work to streamline and reform the plan, ensuring, for example, that federal inspectors don’t impose requirements on landlords that exceed local building codes. Reforms should focus on making the initiative more appealing to landlords to encourage voluntary participation.
As president, Trump will oversee a federal government that provides nearly $50 billion annually to states and localities to support affordable-housing efforts. Much of this funding goes to states with some of the nation’s most restrictive and costly housing policies, such as California and New York. These policies create
a counterproductive cycle: rising costs, declining affordability, and still more demands for federal funding to address problems caused by states’ own regulations.
The Trump administration should consider tying federal housing funds to reforms that unleash housing production. Many states and cities impose costly, politically driven mandates, such as requiring unionized labor or extensive environmental reviews that benefit consultants and lawyers but drive up costs. A Government Accountability Office study found big disparities in the cost of subsidized affordable housing, with median costs ranging from $126,000 per unit in Texas to $326,000 in California. Federal reforms should aim to close these gaps by curbing the political exploitation of housing subsidies.
The rise of tenant-friendly legislation is more than
growth in the non-residential category but marginal growth in residential. The good news is that Armada’s data shows growth in both sectors and our accuracy rate on these projections has been at 97% to 98% month after month.
Chris Kuehl, PhD., is an economist and Managing Director of Armada Corporate Intelligence. Visit www. armada-intel.com for more information.
just a headache for landlords. It’s also a potential nightmare for tenants, as investment in rental housing slows, availability declines, and rents go up. The second Trump administration wants to address many pressing issues in its early months, but Trump himself, with his background, must understand the threat that America’s economy faces from this new age of anti-landlordism.
Steven Malanga is a senior fellow at the Manhattan Institute and senior editor of the City Journal. He writes about the intersection of urban economies, business communities, and public policy.
This article originally appeared in the Spring 2025 issue of the City Journal and was republished with permission.
