Issuu

REAL ESTATE JOURNAL

WINTER 2025-26

2. Boost Your Real Estate Investing Productivity: Master the ‘Organize, Prioritize, and Plan’ Steps

14. Shorter Payments, Longer Chains? Why a 50-Year Mortgage Misses the Mark for Real Estate Investors

3. NREIA Legislative Update: What’s Ahead in 2026

15. The ‘Hidden Market’ May Be the Key to Your System

5. When the Small Stuff is Actually the Big Stuff

16. Understanding the FinCEN Residential Real Estate Reporting Rule

8. The Power of Knowing Your Neighbors

19. 2025 1031 Exchange Trends: Fewer Deals, Bigger Values, and a More Selective Market

11. Closing the Books in QuickBooks: A Stepby-Step Guide for Real Estate Investors Circulated To Over 40,000 Real Estate Investors Nationwide

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RE Journal

Member Spotlight

Vol. 11 Issue 1

Asset Protection and Belly Buttons

By Jeffery S. Watson

Ron Bunton & Victoria Dubuisson

on Bunton and Victoria Dubuisson are active real estate investors and members of the New Orleans REIA in Louisiana. Ron is an active general contractor and investor in the New Orleans region of southeast Louisiana. He started his first contracting business in 1983 doing small residential remodels and over the years expanded into light commercial renovations, historical restorations and maintenance. As his contracting business progressed, it opened up several opportunities for him to purchase and flip, hold, and wholesale. Victoria has been a registered nurse for 42 years and has always been interested in real estate. She and her late husband were eyeballing properties with ambition long before they had the means to buy anything.

henever I write about asset protection, I know I will receive responses and comments, but here goes. Asset protection in the real estate space is a lot like belly buttons – everyone has one, but they are all different. What I’m going to share with you is based on more than 30 years of experience as a real estate investor and more than 34 years as a trial attorney. Here is what I’m seeing now that is giving me pause: Every flipped property should be in its own separate, distinct Grantor Revocable Title Holding Trust (often called a “Land Trust”). “Grantor” means the trust is controlled by the person who

created it. “Revocable” means the grantor can amend, alter or revoke the trust. “Title holding” means the purpose of the trust is to hold title to a piece of real estate. “Trust” means there is a trustee (person or entity) listed on the deed and on public record as the owner of the property. The trustee of that trust should be an independent, third-party trustee service or company, not your best friend Billy Bob or Sally. A more advanced strategy is to use a combination of a Grantor Revocable Title Holding Trust that is owned by a single-member LLC, and then that sin-

Preserve Your Retirement with Farmland Investing

How Farmland Fits Within a Self-Directed IRA and How it Compares to Traditional Real Estate By Carl Fischer

Continued on Page 12

Rental Housing Journal, LLC 4500 S. Lakeshore Drive, Suite 300 Tempe, Arizona 85282

gle-member LLC is owned by a multiple-member, long-term LLC. Both the trust and the single-member LLC are disregarded entities for tax purposes in the eyes of the IRS. Now, for the more controversial part. Open up a bank (savings) account for that trust, and open a bank account for the single-member, disregarded LLC. Do this so that in the event you go to closing and the title company doesn’t know any better and makes the seller’s proceeds payable to the trust, you then have an account in which to deposit them. From Continued on Page 10

armland is one of the most overlooked areas of real estate, yet it has consistently performed among the best. Over the past 20 years, U.S. farmland has produced around 10 percent average annual returns according to the NCREIF Farmland Index. That is comparable to private multifamily portfolios and stronger than many REITs or singlefamily rentals, with far less volatility and lower management requirements. For real estate investors, farmland feels familiar. It is an income-producing, tangible asset that appreciates over time. The difference is that its value comes from food production rather than tenants and buildings. Through a Self-Directed IRA (SDIRA), investors can hold farmland inside a retireContinued on Page 6

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Real Estate Journal

Boost Your Real Estate Investing Productivity: Master the ‘Organize, Prioritize, and Plan’ Steps

By Rebecca McLean Executive Director, National REIA

any people wait until January to review their goals and systems and to prepare for the new year. To stay ahead of the competition, I recommend our members begin honing their systems through the end of this quarter to be able to maximize out of the gate in 2026. Part of your advantage on the path to achieving your dream is the focus on productivity in day-to-day operations. Let’s dig into how we implement systems to ensure our success. I’d like to introduce you to the OPP system. As a real estate investor, your days are a whirlwind of deal hunting, property management, networking and market analysis. With so much on your plate, it’s easy to feel overwhelmed, spinning your wheels on low-impact tasks while high-value opportunities slip away. The good news? You don’t need to work harder—just smarter. To get more done in less time there are three essential steps: Organize, Prioritize, and Plan. These aren’t generic productivity hacks; they’re tailored to help you streamline your real estate empire, close more deals, and scale without burnout. Whether you’re flipping houses, managing rentals, or building a portfolio, implementing these steps will create a solid foundation for consistent progress. Let’s dive in.

Lesson 1: The Organize Step: Build a Foundation That Works for Your Deals In real estate, disorganization can cost you thousands—missed inspection deadlines, forgotten follow-ups with agents, or scattered notes on potential flips. The Organize step of the ultimate productivity process is your antidote. It helps you structure projects and tasks in a way that aligns with the chaotic yet opportunity-rich world of investing, setting the stage for everything else. This step isn’t about perfection; it’s about clarity. By organizing thoughtfully, you’ll reduce mental clutter and focus on what moves the needle, like sourcing 2

off-market properties or negotiating terms. Here’s what you’ll gain from mastering organization: A traditional to-do list can leave you overwhelmed. Here’s a quick fix. Picture this: Your list includes “Research comps for Elm Street flip,” “Call plumber for Unit 5B,” and “Attend REIA meeting.” It’s a jumbled mess that triggers decision fatigue. The fix? Categorize ruthlessly. Use a simple digital tool like Microsoft Planner, Trello or Notion to separate real estate categories - e.g., “Acquisitions,” “Renovations,” “Operations.” This instant shift turns chaos into control, letting you tackle one lane at a time. Projects vs. Tasks – the Critical Split for Real Estate Success: Projects are your big-picture wins, like “Acquire and flip a duplex in the suburbs.” Tasks are the bite-sized actions, such as “Schedule appraisal” or “Review contractor bids.” Mixing them buries your vision under minutiae. Separate them in your system: Dedicate a project board for ongoing deals and a task list for immediate actions. This ensures you’re always advancing toward portfolio growth, not just firefighting. The Pitfall of Mixing Big Outcomes and Small Actions: Lumping “Secure $500K financing for new rental” with “Order coffee filters for the office” dilutes your focus. Big outcomes demand strategy; small actions need speed. Keep them apart to avoid the “everything feels urgent” trap—vital when you’re juggling multiple property pipelines. Crafting a To-Do List That Manages Both Without Overload: Start with a master list, then filter by real estate context. Tools like Todoist allow tags for “High-ROI Deals” vs. “Maintenance.” Review weekly to archive completed flips or archive low-potential leads, keeping your view clean and motivating. Defining Your Three Focus Projects and Capturing Their Tasks: As an investor, limit yourself to three active projects—say, one acquisition, one renovation, and one tenant placement. Brainstorm all subtasks: For the acquisition, capture “Run comps analysis,” “Vet title company,” and “Draft LOI.” This laser focus prevents shiny-object syndrome in a market full of tempting listings. The Power of “Next Actions” for Active Projects: Vague tasks like “Work on duplex flip” stall progress.

Define crystal-clear next actions: “Email agent for showing at 2 PM tomorrow.” For stalled deals, this uncovers bottlenecks, like waiting on lender approval, so you can delegate or pivot. How Task Wording Determines If You Actually Do It: “Handle property taxes” sounds dreadful; “File Q3 taxes for Oakwood rental - 15 mins via app” feels doable. Action-oriented, time-bound phrasing boosts completion rates, ensuring you hit those quarterly goals without procrastination. Implement this today: Spend 30 minutes reorganizing your current deals. You’ll feel the relief immediately.

Lesson 2: The Prioritize Step – Choose High-Impact Deals Over Busywork You’ve organized your world—now it’s time to decide what deserves your energy. Real estate rewards the selective: Not every lead is a winner, and not every repair is urgent. The Prioritize step empowers you to allocate your limited hours to ventures that build wealth, like pursuing a value-add multifamily over routine showings. The core mindset? You can’t chase every off-market whisper or distressed seller. Prioritizing is about sovereignty over your time—pouring it into high-value pursuits like deal sourcing or investor networking, while deferring or ditching the rest. Most investors drift reactively; you won’t. Key insights to sharpen your edge: Why Prioritizing Across Projects Feels Impossible in a Single List: When “Follow up on seller motivation” sits next to “Update lease template,” everything blurs. By organizing first (as in Lesson 1), you can now triage per project, spotting that the motivated seller warrants top billing over admin tweaks. Urgency vs. Importance – The Game-Changer for Time-Strapped Investors: Urgent tasks scream for attention, such as a leaking roof demanding an emergency call. Important ones build your future, such as “Analyze cash flow for potential BRRRR opportunity.” Confusing them leads to burnout on fires while empires crumble. Always ask: Does this drive equity or Continued on Page 4 Real Estate Journal · Winnter 2025-26

Real Estate Journal

NREIA Legislative Update

What’s Ahead in 2026

Socialist Housing Policies Will Advance

With a handful of newly elected “Democratic Socialist” mayors settling into their offices - most notably in New York City — expect to see them pushing the boundaries of housing policy and inspiring other localities to do the same. Zohran Mamdani will begin pushing to deliver on his campaign promises as NYC’s new mayor, including a freeze on one-third of all rents and the construction of 200,000 new rental units, owned and operated by the city. Mamdani will stop sweeps of homeless encampments in the city, meaning tent cities will be more visible. He will place more social workers on the street and in the subways to link homeless people with, in his words, “supportive housing, rental housing, whatever sort of housing it is.” The city’s rent-stabilized-housing property owners will divest in droves in the opening half of 2026. Many rent-stabilized properties will sell at bargain basement prices, if listings from late last year are any indication. Rent stabilization isn’t new to New York City, but bad policy has made it worse. In 2019, the Housing Stability and Tenant Protection Act eliminated landlords’ ability to raise rents when tenants moved out, which allowed them to recover costs from making renovations for a new renter’s arrival. In 2019, 5,000 rent-stabilized homes sat vacant. At the end of 2025, that number had increased to more than 50,000. Investors simply don’t see the value in renovating and turning them over when rents are frozen. Adding to the issues for rent-stabilized property owners: Democrat-passed measures on utility regulation and climate change, including a 2019 law requiring buildings of more than 25,000 square feet to swap oil and gas-fired heating systems for electric heat pumps in order to slash emissions 40% by the end of this decade. Defaults will rise in 2026 as well. According to the Small Property Owners of New York, The Bronx has several buildings with rent-stabilized units in current danger of default. One, a 22-unit property, faces a nearly $82,000 annual loss because rents are too low to keep up with rising costs. NYU’s Furman Center reports that one-third of rent-stabilized housing in the city is losing money. According to the report, median gross income per unit in buildings with more than 90% of stabilized units — which account for roughly 49% of all stabilized apartments — fell by 9% after adjusting for inflation between 2019 and 2025. The median rent in Real Estate Journal · Winter 2025-26

these buildings was $1,344 so far in 2025, meaning not enough to keep up with costs. To fund his proposed city-owned-housing building boom, Mamdani will try to secure community grants and loans from New York’s state government and potentially seek to increase taxes. Under New York’s rules, state legislators must approve any NYC tax increase. It is unlikely that New Yorkers will see construction cranes in the first half of 2026.

Investors Will Get Caught in the Crossfire in Property Tax Repeal Wars States will see a handful of efforts to repeal or tame property taxes. Florida Gov. Ron DeSantis is making property tax repeal a priority as he nears the end of his tenure. He is also making a national push to encourage other states to follow suit. In Florida, DeSantis’ proposed repeal will likely appear on the ballot in November. South Dakota, Kansas, Michigan, Nebraska, and Tennessee all have repeal or reduce efforts underway with likely action this year. A grassroots group in Ohio is attempting to get a repeal on the ballot in November as well. The Ohio push gives some insight into the dangers of the property tax debate for investors. Most property tax relief efforts are focused solely on owner-occupied property. Rising values in Ohio and Florida are prompting the flurry of activity. In the Sunshine State, property taxes have risen 60% in five years. In Ohio, property taxes rose 23% from 2019-2023. Understandably, policy makers are concerned about high taxes forcing people out of their homes. But there’s always a rub. In Ohio, property taxes fund schools and local governments, as well as a host of popular public services such as law enforcement, libraries, and so on. Repeal of the tax would eliminate a major funding source, requiring other taxes to be increased or massive belt-tightening or a combination of both. That has sparked a race to head off the citizen revolt over property taxes, with Ohio legislators passing bills aimed at providing relief to homeowners. As 2025 was coming to an end, one Ohio bill passed by the legislature shifted existing property tax relief from one, two, and three-unit properties to owner-occupied properties. The result was a 10% property tax increase on said investment property, to fund a reduction in the owner-occupied tax. This tax increase will be passed on to renters who face their own affordability

challenges in today’s market. In their drive to relieve homeowners, legislators threw investors (and renters) under the bus. As efforts to repeal or reduce property taxes move forward in the states, investors will need to be engaged at the state level to prevent relief from being balanced on the shoulders of investors.

Seller Finance Will See Action in Congress The Affordable Homeowner Access Act, sponsored by Andy Barr (R-KY), will pass out of the House Financial Services Committee in the first half of 2026 and hopefully become part of other legislation that is likely to be enacted. This bill provides another access point to home buying by providing relief to individuals and small businesses so that they can sell their homes directly to a buyer without the fees associated with being a mortgage originator. Seller finance is a useful tool for investors whether they are buying or selling properties. Seller financing is also a powerful tool to transition renters to into homeowners. Mortgage banks and community banks will oppose the bill. The Seller Finance Coalition, which National REIA is a member of, has actively lobbied for this bill on Capitol Hill for several years. If you are interested in supporting or participating in their efforts, visit sellerfinancecoalition.org

HUD Will Ease Up On Housing Providers To align with President Trump’s housing and deregulation priorities, the U.S. Department of Housing and Urban Development (HUD) will implement three significant changes to how the agency will enforce fair housing laws. These changes will affect how housing providers defend against disparate-impact claims, evaluate renters’ criminal history in the screening process and assess renter requests for service and emotional support animals. Under the previous administrations, common business practices such as occupancy standards, criminal background screening and policies related to Section 8 rental subsidies could trigger disparate-impact claims despite no intent to discriminate against a federally protected class. HUD will eliminate the use of disContinued on Page 10 3

Real Estate Journal

National REIA’s

2025

Innovate and Illuminate! National REIA’s Excellence in Innovation Awards recognize those organizations and people who bring new ideas to life. Whether that idea is big or small, these ideas change the way we experience the REIA world. The award is for a single idea – including program, education, event, etc., whose innovative approach has caused market disruption or an exciting increase in member value. This year’s winners were announced at National REIA’s 2025 Leadership Conference in New Orleans, LA. Congratulations!

2025 REIA Award Winner

AZREIA (Arizona)

promote | protect | educate

Traction REIA

Boost Your Real Estate Investing Productivity just patch holes? The Stakes of Project and Task Prioritization: Skipping this means scattered efforts: You might spend a day on minor fixes instead of closing a $200K arbitrage deal. Prioritization ensures 80% of results from 20% of actions - Pareto’s law in property form. Master the ABCD System for Crystal-Clear Choices: Sort projects and tasks into A (must-do now, high impact like “Finalize purchase contract”), B (shoulddo soon, medium value like “Network at local REIA”), C (nice-to-do, low urgency like “Read new zoning report”), and D (delegate or delete, like “Social media posts”). Step-by-step: Review your organized list weekly, assign letters based on ROI (e.g., cash flow potential), and block time for A’s first. For real estate, this might mean A-priority on due diligence for a hot lead, while D-ing generic market scans. Adopt ABCD this week, and watch low-value tasks fade, freeing bandwidth for deal-closing magic.

Lesson 3: The Plan Step – Design Days That Close Deals and Recharge With organization and prioritization locked in, planning turns potential into results. For real estate investors, this means scheduling around market rhythms— mornings for creative deal hunting, afternoons for inspections—maximizing output without the 80-hour grind. This high-leverage method emphasizes principles over rigid templates. It’s flexible for your lifestyle, whether you’re a solo wholesaler or syndicator. We’ll cover the “why” here. Unlock these planning superpowers: Know Your Peak Performance Window: Are you a morning powerhouse for crunching numbers or an evening strategist for investor calls? Mapping your en4

BPM REIA (Florida)

(Florida & DC)

... continued from Page 2

ergy—vital in real estate’s deadline-driven world - ensures deep work on tasks like financial modeling hits when you’re sharpest. The 4 Conditions for Peak Productivity: Flow state thrives on clear goals (your prioritized A’s), immediate feedback (quick wins like a signed NDA), challenge-skill balance (tackling a tricky negotiation), and intrinsic motivation (the thrill of a profitable flip). Cultivate these to turn property scouting into a zone of genius. Ditch Multitasking — It Kills Your Edge: Juggling emails during a virtual tour fragments focus, dropping productivity by as much as 40%. Single-task like a pro: Block “Deal Analysis Only” slots to avoid the investor’s curse of constant context-switching. The One Thing Knowledge Workers Crave: Uninterrupted Focus. In real estate, that’s golden time for modeling cap rates or scripting offers. Guard it fiercely—your brain’s “maker time” for creation over reaction. Why Planning Amplifies Everything: It bridges intention and action, turning “I should network more” into “Thursdays 4-6 PM: REIA calls.” Investors who plan outperform by 25% on key metrics, like units acquired. Design Your Ideal Productive Day: Start with psychology (mood boosters like a win-first task) and physiology (hydrate, move). Sample for investors: 7-9 AM deep work on acquisitions, 10 AM admin burst, lunch break, 1-3 PM site visits, evening wind-down review. Psychology and Physiology: The Hidden Drivers. Leverage endorphins from a quick walk to fuel negotiations; align physiology (caffeine peaks) with highstakes calls. This holistic tweak sustains energy for marathon deal seasons. Breaks Aren’t Lazy —They’re Leverage: Pomodoro-style (25 mins work, 5 mins rest) or longer walks

prevent decision fatigue. Post-break, you’ll negotiate harder on that seller concession. Timing Activities for Maximum Impact: Analytical tasks (comps review) in low-energy slots; creative ones (visioning portfolio expansions) in peaks. Experiment: Track a week’s output to refine. Your action item: Sketch tomorrow’s schedule around one A-priority task. Over time, this compounds into a thriving, balanced portfolio.

Closing the Loop: Your Path to Investor Mastery Real estate investing thrives on momentum—deals compound, networks grow, wealth accrues. By weaving Organize, Prioritize, and Plan into your routine, you’ll sidestep overwhelm, seize high-ROI opportunities, and reclaim evenings for life beyond properties. Start small: Pick one lesson to implement this week. Your future self —closing that next big acquisition —will thank you. Rebecca McLean is the Executive Director of National Real Estate Investors Association.

Real Estate Journal · Winnter 2025-26

Real Estate Journal

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

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.

Real Estate Journal · Winter 2025-26

When the Small Stuff is Actually the Big Stuff By M. Jane Garvey

ituational awareness, or consciousness of our environment and the people or things in it, can help us stay safe. It can also make a huge difference in how quickly we recognize problems, not only in the physical world but also in our relationships. Whether you are looking to build relationships that last, find the right residents for a property, minimize the cost of repairs, avoid the unexpected budget killers on a rehab, catch the early signs of health problems, or even figure out why you aren’t achieving your goals, paying attention to the small stuff is of utmost importance. We all know the frustration of the expensive replacement that could have been an inexpensive repair if the problem had been caught earlier. Sometimes we do this to ourselves by not paying attention. Let’s say there is a noise in your house or car that you haven’t heard before. Do you hear it, or do you have music playing, the radio on, or your mind on other things? If you ignore it long enough, what’s wrong will eventually become evident. It may also be far more expensive to repair. When we rent out our property, we outsource the situational awareness role to the new residents. I think many of us have experienced the frustration of feeling like some of our residents think we are clairvoyant. We never hear from them when there is a stain on the ceiling, a new crack in the basement floor or wall, a light that keeps flickering, noises coming from the attic, the furnace making a strange noise, or many of the other things that can signal something has started to go wrong. In the process, the small stuff becomes the big stuff. The result of the small stuff becoming big stuff in a rental is often not just the repair itself. Sometimes it is another turnover, as the resident decides to move. Sometimes it results in the resident thinking you don’t care about your property, so they stop caring. How can we change this dynamic? First and most obvious is, pay attention to the small stuff when you see it or hear about it. Your resident rented a property in good repair. Keep it that way. When you have interactions with your resident, ask if there is anything you should know about. You may get responses like, “It is no big deal, but my toilet paper holder is broken.” If you choose to ignore this, because “It is no big deal,” you signal to your resident that they shouldn’t bother to tell you about things like that. It leaves them with a small thing that will fester and become a big thing. Repair it, and you will show them you care about them and your property. I have worked with handymen and contractors over the years that came and fixed a specific problem but never paid

any attention to other things. I have had others who were keenly aware of everything. The keenly aware handyman is a godsend. Sometimes the job seems like it got expensive, but what has happened is the small signals of problems got noticed, and things got fixed when they were still small problems. The residents often get the hint. They need to be paying attention. If the handyman is a good communicator, it helps when they tell the resident what they should be watching for or doing to mitigate the potential for further problems. Another small thing that can go unnoticed or unaddressed is a change in behavior. For instance, has there been a change in timing or source of rent payments? If so, it might make sense to reach out to see how your resident is doing. You don’t need to tell them why you are calling, just reach out. You can either build the relationship, or damage it. The opportunity has presented itself with the small change in behavior. Be mindful of problems your residents may be facing. Get ahead of them if possible. For instance, if you see on the news that the company they work at is shutting down the plant in your area, there is a transition coming. Reach out and find out how the plant closing will affect them. Will they need to move? My leases have a buy-out clause that allow a resident to leave mid-lease. If a company is transferring someone, this is something they are likely to cover. Pre-negotiating it makes it a no-brainer. If they are going to have to move, remind them of the clause in the lease that will allow them to do this without breaking the lease. If the buy-out fee is clearly unaffordable, work with them to set expectations. Leaving the place in great shape, referring friends or colleagues, helping you have a quick and easy turnover by keeping it clean for showings, and being flexible with timing all can help mitigate the turnover cost for you, and hence your need to collect the buy-out fee. Keep in mind, the relationship you build or destroy during stressful times will come back to help or haunt you. Your residents talk to each other, and social media extends their reach in the community. Treat others as you would want to be treated if you were in their circumstances. As we screen potential residents we need to pay close attention to the small stuff. Fraud is rampant in rental applications. A great credit screening and background check from Rent Perfect can help catch things for you. In addition to this, you need to pay attention to things in your interactions with the potential resident. Are they being consistent in what they tell you? Does it make sense? The small things are hints of big problems to come. Avoid renting to people if their behavior, attitude, or information foretells problems to come.

When talking to potential sellers, pay attention. People are often reluctant, or even unable, to be open about their problems and true motivations. This is particularly true for a conversation with a total stranger. The simple question, “Why are you selling?” may bring some answers. There are often much deeper motivations with subtle clues. Listening for the small things and pulling on those strings may bring you to a better understanding of what is needed to put a deal together. Patience, good listening skills, and the willingness to build a relationship will go a long way in a world where few are listening or paying attention. Consciousness of our own behavior and what drives it is very important in our relationships with others, and even with ourselves. Have you ever asked yourself why you continue to do something that you know is harming you, or your relationships with others? As Richard Flint will tell you, “Behavior Never Lies.” In his books and talks, he tells us that “behavior never lies is a truth, which when understood and accepted, will reshape one’s understanding of the people who are part of their environment. The real definition of who a person is -- is defined by their behavior, not their words. Words explain, while behavior defines the real message a person is speaking. The fact is, the real essence of truth is not what is said, but the behavior a person demonstrates.” Our habits are sometimes unproductive. Pay attention to your habits, they are subtle clues. Some small habits can, if changed, make huge differences in your ability to achieve the success you claim to want. Jane Garvey is president of the Chicago Creative Investors Association.

Real Estate Journal

Preserve Your Retirement with Farmland Investing ... continued from Page 1 ment account, keeping rental income and appreciation sheltered from taxes while adding a powerful diversification tool to their portfolios.

1. Farmland Strengthens a Real Estate Portfolio A rental property depends on tenants and local demand. Farmland provides a steady income through long-term leases with professional operators. You are still a landlord, but your tenant is a farmer who rents the land rather than lives on it. Example: • A 100-acre farm in Iowa rents for $250 per acre, providing $25,000 per year in passive income. • The land typically appreciates about 5 percent per year based on USDA data. • There are no repairs, maintenance calls, or tenant turnover costs. A single-family rental might lose profitability to vacancies or repairs. Farmland offers steadier, inflation-resistant returns that make it a reliable, income-generating cornerstone of a balanced real estate portfolio. Tip: Think of farmland as the bond portion of your real estate investments. It is tangible, low-maintenance, and built for long-term value.

2. Keep It Compliant with a Qualified Custodian Every SDIRA must be held by an approved custodian or trust company. The custodian ensures the land title, paperwork, and cash flow meet IRS requirements. This helps you protect the tax-deferred or tax-free status of your account while maintaining proper recordkeeping. Example: If your farmland lease earns $25,000 per year, the tenant sends rent directly to the custodian, not to you. The custodian deposits the funds into your IRA account, keeping all income within the plan’s tax shelter.

3. Keep It Passive and Think Triple-Net Lease IRS rules prohibit an IRA owner from managing or improving the property personally, but farmland naturally operates as a passive investment. The structure is similar to a triple-net commercial lease, where the tenant handles most expenses. Example: You own 80 acres leased to a corn and soybean operator. The farmer pays $20,000 per year in rent and covers insurance, maintenance, and operational costs. You simply review the lease annually and collect rent through the IRA.

Tip: Farmland inside an SDIRA can produce true mailbox income with minimal oversight.

4. Keep All Income and Expenses Inside the IRA Every dollar connected to the farmland must stay inside the IRA, including income, taxes, insurance, or improvements. Paying for anything personally can disqualify the account and create unexpected taxes or penalties. Example: When property taxes are due, you instruct your custodian to pay from the IRA balance. This approach mirrors how investors separate business and personal expenses through an LLC, ensuring compliance and clarity. Tip: Maintain a cash reserve in the IRA for property taxes, insurance, or other costs.

5. Understand Leverage and Taxes Before You Borrow SDIRAs can use financing, but only non-recourse loans are allowed. The property itself secures the loan, not your personal assets. Income tied to that loan may be subject to Unrelated Business Income Tax (UBIT). Example: Your IRA purchases a $600,000 farm using $300,000 cash and a $300,000 non-recourse loan. The property earns $30,000 in annual rent. Because half of the purchase is financed, about half of the income could be subject to UBIT. A tax advisor can help minimize this exposure, especially when using a Roth SDIRA. Tip: Leverage can increase returns, but it also adds tax complexity. Always seek guidance from a professional who understands self-directed investing.

preciation. It behaves more like a long-term commercial property than a short-term flip or redevelopment project. For SDIRA investors, farmland can be the steady, cash-producing, real estate-backed asset that helps preserve and grow retirement wealth from the ground up. 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. Editor’s Note: This article is for informational purposes only and should not be construed as tax, legal, or investment advice. Readers should consult with qualified professionals before making investment decisions involving Self-Directed IRAs. 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 www.iraasset.app/nationalreia for more info.

Why Farmland Belongs Beside Real Estate, Not Instead of It Farmland is a stable, inflation-protected real estate asset with predictable income and strong long-term ap-

Real Estate Journal · Winnter 2025-26

Real Estate Journal

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Real Estate Journal · Winter 2025-26

Real Estate Journal

The Power of Knowing Your Neighbors By Scot Aubrey

or many, the fear of the unknown is devastating. For landlords, it can be paralyzing. Getting rid of that fear might be as easy as walking next door. As a landlord, managing properties isn’t just about collecting rent and maintaining the structure; it’s also about fostering a sense of community. One oftenoverlooked but crucial aspect of property management is knowing the neighbors of the properties you own. This practice not only enhances safety and security for your tenants and your investment but also helps create a more cohesive and harmonious environment for everyone involved, including the neighbors.

An Extra Set of Eyes Knowing your neighbors can significantly improve the safety and security of your rental properties. Neighbors, especially the nosy ones, keep an eye out for unusual activities or suspicious individuals, acting as an additional layer of vigilance for your investment. By building relationships with neighbors, landlords can establish a network of trust and communication that helps prevent crime and creates an easy line of communication should an incident occur. Neighbors are also valuable sources of information about the condition of your rental properties. They can alert you to maintenance issues that might otherwise go unnoticed, such as leaking pipes, overgrown yards, or unauthorized occupants. This can save you time and money by alerting you to problems before they escalate into more significant issues that could potentially affect property value or the ability to rent the property.

Positive Tenant and Community Relations Every action you take tells the tenant how much you value them. When you are familiar with the neighbors and community, your tenants see that you care about more than just the rent check and that their well-being is a priority. Increased tenant satisfaction leads to longer lease periods where they are more likely to renew

their leases. Additionally, knowing the neighbors allows landlords to address any concerns or complaints more effectively, demonstrating proactive management and a commitment to resolving issues promptly. A strong sense of community, where residents take pride in their surroundings, benefits everyone involved, from landlords and tenants to neighbors themselves.

Practical Steps for Landlords To effectively get to know the neighbors of your rental properties, consider the following practical steps: 1. Introduce Yourself: Take the initiative to introduce yourself to neighboring residents. A friendly conversation can go a long way in establishing rapport and building trust. Leave behind your contact information. Neighbors are a great source for referrals as well and just might help you find your next tenant. 2. Attend Community Events: Participate in neighborhood events or meetings to connect with residents and stay informed about local issues and developments. 3. Establish Communication Channels: Provide neighbors with contact information and encourage them to reach out if they notice any concerns related to your properties.

4. Encourage Open Dialogue: Foster an environment where neighbors feel comfortable sharing feedback or reporting incidents, ensuring prompt and respectful responses from you or your team.

One Good Investment Deserves Another Knowing the neighbors of the properties you own is more than just a good practice, it’s an investment in creating safer, more vibrant communities. By building relationships with neighbors, landlords can enhance security, monitor property conditions, foster positive tenant relations, and mitigate potential risks. These efforts not only benefit your investment but also contribute to a sense of belonging and mutual support among residents. Ultimately, landlords who prioritize neighborly engagement are likely to see greater tenant satisfaction, reduced turnover, and increased long-term value in their rental properties. 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 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 Rent Perfect; the solution for rental property owners and managers for screening & managing tenants.

Real Estate Journal · Winnter 2025-26

Real Estate Journal

Real Estate Journal · Winter 2025-26

Real Estate Journal

Asset Protection and Belly Buttons that account, the trustee can then direct the funds to go to the single-member LLC, from which the funds can then be moved to the multiple-member LLC. I realize this might take a couple of extra days, but it’s important so that if someone needs you to prove where and how the money flowed, you can show that you followed the proper procedures. Here is a professional tidbit that no one else will probably share with you: When you sell a flip, disclose on either the seller’s disclosure form or in the purchase and sale agreement that the subject property is the sole asset of the seller. You are probably saying, “Jeff, why are we doing all these things?” The answer is because I’m noticing an alarming increase in the number of times that fixand-flippers are having their properties tied up in litigation while they are still working on them because something

... continued from Page 1

went wrong at property No. 1, so properties 2, 3 and 4 are now encumbered because they are all in the same “flipping LLC.” An advantage of holding title to property in a trust is that if anything happens at that property, it is limited to just that property, and the problem does not spread to any other properties owned by the same investor. For example, it’s very frustrating when, a year after a property has been sold, the buyer reaches out to a lawyer and complains about an alleged defect or condition in the property and wants to be compensated. By implementing the strategy of having each property in its own trust with a trustee service as the trustee, the trustee will be able to clearly demonstrate that any lawsuit involving that property is limited to just that property. A key element in this strategy is that

after you sell the property, the trust is dissolved, and a few weeks later, the single-member LLC is dissolved in conjuction with how the money flows.This, then, leaves nobody to sue because the trust will be dissolved on public record by virtue of filing a Notice of Dissolution after the property has been conveyed out of the trust by the trustee, and a month or so later the LLC will be dissolved on the secretary of state’s website because its work as a blocker and shield is now finished. For those of you who are penny-pinching tightwads, pay careful attention. If you want to repeat and use that single-member blocker LLC, do so at your own peril. The cost of an LLC filing fee is a small expense to give yourself a lot more peace of mind. Obviously, I’m advocating that you use this strategy in conjunction with good,

UNIQUE COVERAGE, INTELLIGENTLY DESIGNED.

local legal advice and honest, honorable, high-integrity business practices where you make sure the property is fully and adequately rennovated, and that you do not hide or conceal any defects but instead resolve them or point them out in writing. Another advantage of using a trust is that it gives a great deal of anonymity and privacy so that the true beneficial owners of the property, the ones who are receiving the net operating income (cash flow) and are benefitting from the amortization and appreciation, are not discoverable on public record. Anonymity and privacy are precious things and can go a long way in protecting and preserving assets. While a title holding trust provides anonymity and privacy, a trust by itself provides little to no real asset protection characteristics. A trust does not have the statutory protections that a limited liability company has. The sole purpose of using an LLC is to do just what its name says – limit liability to just that one asset and keep the rest of the grantor/beneficiary assets separate from any potential threats. 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 more than 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.

Legislative Update

... continued from Page 3

Call us or visit our website for more information on our property and liability programs

Investment Property Insurance Tenant Discrimination Program Landlord Supplemental Protection Tenant Renters Program TEL: (877) 744-3660 WWW.NREIA.ARCANAINSURANCEHUB.COM

parate-impact liability in all contexts across the federal government. HUD will continue its new posture of urging public housing authorities and private owners of project-based rental assistance to take all steps necessary to provide “decent, safe, and affordable housing” by screening for criminal history prior to admission into HUD-assisted housing, removing individuals who pose a threat to the safety and peaceful enjoyment of their units, and deploying resources to ensure the ongoing safety of such properties through physical security features and/or contracted safety services. The department will likely add specific rules and more detailed guidance for housing providers to follow. Also in 2026, HUD will move closer to protecting public assistance housing providers who question the authenticity or reliability of required documentation, enforce limitations on the types of healthcare professionals who can verify disability-related need, and reexamine the applicability of routine pet policies and charges to assistance animals. A department memo last fall made HUD’s policy intentions clear. This year, they will move against fraudulent reasonable accommodation requests for assistance animals - specifically emotional support animals.

Real Estate Journal · Winnter 2025-26

Real Estate Journal

Closing the Books in QuickBooks: A Stepby-Step Guide for Real Estate Investors By Gita Faust

et me ask you something simple. When you look at last year’s numbers in QuickBooks … Do you believe them? Not “kind of.”. Not “I hope so.” I mean, are you sure nobody changed anything after taxes were filed? If your answer is “I think so,” this is for you. I want to talk to you, a real estate investor, about one quiet feature in QuickBooks that can save you a lot of stress: Close the books. Not in accountant language. Not a long checklist. Just like I would explain it if I were sitting next to you on Zoom, watching your screen.

A Quick Story (So You Know Why I Care) I worked with an investor who had rentals and a couple of flips. Let us call him Kevin. We spent time cleaning up his QuickBooks: • Every bank and credit card was reconciled • Income and expenses were in the right properties • The CPA filed taxes based on those exact numbers Beautiful. Peaceful. Done. A few months later, Kevin emailed me: “Something is off. The numbers do not match those in my CPA’s records.” We dug in. Someone on his team had gone back into last year to fix a few things. Nothing evil, just busy: • They changed a couple of dates • Reclassified some rehab expenses • Deleted one weird-looking journal entry Suddenly: • The profit no longer matched the tax return • The lender report looked different than what we sent • Retained earnings did not tie out All avoidable. If “close the books” had been turned on with a password, none of those quiet edits would have gone through without a conscious decision. That is why I am talking to you about this. Not to make you an accountant. To protect you from paying twice for the same cleanup. Real Estate Journal · Winter 2025-26

What ‘Close the Books’ Really Does (in Your World) Forget the jargon. When you close the books in QuickBooks, you are telling the software: Everything up to this date is final. Please do not let anyone casually change my past. For you as a real estate investor, that means: • Last year’s rental income for each property stopped moving • Rehab costs on a flip stop sliding into other months • Loan balances stay aligned with what your lender shows • The profit you showed your CPA is the same profit you see six months later In short, you lock the story of last year so you can trust it. And once you trust the previous year, you can make better decisions this year.

A Few Truths I Have Seen With Investors Like You Let me share four simple truths. See which one feels like you. 1. Busy people break books more than bad people. A fraudster does not do the most damage. It is done by a rushed assistant, a partner, or even you, late at night, trying to fix one thing quickly. Closing books puts a gentle lock on your past, so speed does not rewrite history. 2. Moving profit destroys confidence. If you run a Profit & Loss today for 2024, and it looks different from the one you ran in March, your brain stops trusting reports. Closing the books tells QuickBooks to stop changing last year’s score. 3. Lenders and CPAs feel the wobble. They may not say it, but they feel it when the same year shows different numbers every time you send a report. Closed books = steady numbers = more trust. 4. You do not want to live in cleanup mode forev-

er. You did not get into real estate to babysit old transactions. Closing books is your way of saying, last year is done. Now let me focus on deals, not drama. If even one of those makes you nod, closing the books is worth your attention. And if you are looking for a simple way to double-check yourself at year-end, I have put together a real estate bookkeeping checklist at RealEstateAccounting.com/year-end-checklist that you can use as a gentle guide.

So How Do You Actually Close the Books? (Without a Big Scary Checklist) Let us keep this simple. Imagine we are on a call, and I am guiding you. You have already: • Reconciled your banks and credit cards through year-end • Matched your loans to lender statements • Talked to your CPA, and they are happy with the numbers Now you are ready to tell QuickBooks: Lock it. Here is what you would do in QuickBooks Online, in plain language: 1. You click the little gear icon on the top right. 2. You choose Accounts and settings. 3. You click on the Advanced tab. 4. You scroll until you see Accounting. 5. There is a line that says “Close the books.” You turn that on. 6. You enter your closing date – usually December 31 of the year you are done with. That is it. That is the heart of it. QuickBooks now knows: Everything on or before this date is supposed to be final. There is one more thing I almost always recommend. Instead of just a warning, you tick the option that says: “Require a password.” Then: • If someone tries to change a transaction from last year Continued on Page 16 11

Real Estate Journal

Member Spotlight — Ron Bunton & Victoria Dubuisson ... continued from Page 1

Enjoying “Krewe of Muses”, Mardi Gras 2025 They first invested in vacant lots in 1991 at the same time they were building a new home. They went to a local real estate seminar around that time and bought into a national real estate mentoring and coaching investment organization that piqued their interest. Then, in 2013, they did their first flip and have done several since. Many years after her husband passed, she met Ron at a NOREIA (New Orleans REIA) meeting – where both were active members. In fact, they actually met before, in the paint department of Home Depot where a product guru was doing an educational walk-through meeting that involved Pete Youngs. As a group, they all went out to dinner afterward and she and Ron have been a couple ever since. He recently proposed, she accepted and they’re getting married during the first week of January 2026.

Please tell us a little about who you are and what you did before getting into real estate investing: Ron: Shortly after graduating LSU, I met my precious late wife of 42 years, Susan. We were married in 1979. The economy was absolutely flat, and there were no engineering jobs to be found. I took a job as a surveyor in the petrochemical construction field and worked my way into working with the engineering department as an independent contractor. Victoria: I am currently working full-time in a post-anesthesia care unit (recovery room) at a local hospital. I got married in 1989 and had 2 girls, Elizabeth and Samantha, who are 26 and 30 now. Although nursing is my calling, my second love is real estate.

Where is your current market and what is your focus or area of expertise? Our local current market is a difficult one. Prices are high, even with rehabs. The problem is that by the time you add up the cost of renovations, etc., we have found that most of them tend to be at market-value, leaving no room for profit. Although we have both done new 12

construction, our focus now is with rehabs.

How did you get started? Ron: I got started when I bought my first home in 1986 and the house next door, which I flipped. Then, I bought two other houses down the street and flipped them. To date, I’ve done about 67 flips along with multiple new construction for others. Victoria: I first invested in two vacant lots that my husband bought site unseen at an auction in 1991 and which we ultimately sold at a profit many years later. In 1993, we completed construction of my current home, which we sub-contracted ourselves. In 2013, we did our first flip. After that, we did several flips and three new constructions, one of which I still own. In addition, in the process, we decided to keep two properties which I still have as rentals. One of those was purchased through Auction.com. I rehabbed it, rented it for 3 years, then sold it to the lessee. The other was purchased as a foreclosure.

Describe a typical work week for you as a real estate investor. Victoria: Ron continues to work as a contractor doing remodels and renovations while helping to maintain the five properties we have. All the while, we are both always looking at properties, calling on them, and investigating possibilities both in person and online. We have Realtors that know us and keep us in mind when an opportunity arises.

How long have you been investing in real estate? Ron has been investing in real estate since 1983, and Victoria has been investing since 1991.

Tell us about your first deal: Ron: My first deal was literally “the house next door,” which I flipped and reinvested in the property next to that, and so on.

Victoria: My first deal was in 2013. It was a single-family home on the west bank of the Mississippi River that needed about $25k worth of renovation work. We sold it.

How do you fund your investments? We have funded our investments in multiple ways including self-funding, equity lines of credit, private investors, subject to, and owner financing.

Do you have a real estate license? No.

What projects are you currently working on? Currently, we are working on a 2,200 sq. ft., 4-bedroom, 2-bath home in an upscale subdivision in Harahan, La., which was brought to us off-market through a NOREIA friend and colleague - the same friend who introduced us at that Home Depot meeting!

How much time do you put into your real estate education? A good amount. As newbies, we spent a lot of time attending basics classes and bus tours of projects. We try to attend local NOREIA meetings and sponsored educational events. In addition, we regularly explore the local market and opportunities.

Has coaching or mentoring played a part in your success? Absolutely. Over the years, we have partnered with several well-known real estate investing mentors who also offered coaching. Locally, NOREIA offers numerous opportunities that foster mentoring and coaching, if you take advantage of it.

What are your current and future goals? Our current goal is to beautifully complete the house Continued on Page 13 Real Estate Journal · Winnter 2025-26

Real Estate Journal

Member Spotlight — Ron Bunton & Victoria Dubuisson ... continued from Page 12 we are working on and market it as a married couple (effective January 2026). From there, we will continue to look for other opportunities to purchase and flip or possibly buy and hold. Maybe in a couple of years, we will retire from our “jobs,” but we both plan to continue to be active in real estate investing. We can see a personal lake house in our future.

What has been your top struggle in this business? Definitely, finding the “right” properties.

What do you like most about what you do? The thing we like most about what we do is taking an ugly duckling property and turning it into a beautiful swan for someone else or another family to appreciate, love, and add to the value of the community.

Do you have a tip or advice that you would pass along to other investors? First and foremost, become a member of your local real estate investors association (REIA). These meetings are invaluable. Educate yourself through your REIA and NETWORK, NETWORK, NETWORK!!! In doing so, you will find that your fellow investors are open and willing to share personal experiences and valuable lessons. Also, in networking, you will meet many people you will need in your ventures, such as contractors, real estate agents, financers, attorneys, insurance agents, tax advisors, etc.

Rehab/Flip During COVID, New Orleans

How important is joining a local REIA to a new investor? DITTO – see above answer.

What is your favorite self-help or business book? How to Win Friends and Influence People by Dale Carnegie and The Art of the Deal by Donald J. Trump.

Do you have any interesting hobbies or something unique that you like to do?

Ron: I enjoy taking old things and making them new.

Does your business have a website? Not currently. Ron’s website is currently being updated.

Victoria: I love gardening and decorating.

COVID Kitchen Coming Together

128-Year-Old Client Rehab, New Orleans Real Estate Journal · Winter 2025-26

FINALLY! DRYWALL!!! 13

Real Estate Journal

Shorter Payments, Longer Chains? By Jason K. Powers

Why a 50-Year Mortgage Misses the Mark for Real Estate Investors

eal estate investors are no strangers to innovation. From creative financing to BRRRR strategies and syndications, this industry has always attracted those who think outside the box. But not all innovation is beneficial. In late 2025, talk of a proposed 50-year mortgage began making the rounds in housing policy circles. At first glance, it sounds appealing. Lower monthly payments, more “affordability,” and a path to homeownership for younger buyers priced out of the market. But for investors, and really for anyone looking at the numbers, the math just doesn’t work in your favor. Extending a mortgage to 50 years reduces your monthly payment, sure. But the cost of that convenience is staggering. Take a $400,000 mortgage at 6.5 percent interest. On a traditional 30-year loan, you’d pay just over $2,500 a month and shell out roughly $510,000 in interest over the life of the loan. Stretch it to 50 years and your monthly payment drops to around $2,200. But the total interest paid balloons to over $915,000. That’s more than double the original loan amount in interest alone. According to data from Mortgage News Daily and Bankrate, as of Q4 2025, average 30-year fixed mortgage rates have hovered between 6.4 and 6.7 percent, and there’s little indication that rates will return to pandemic-era lows. Which means if the 50-year model were implemented, many buyers and investors would be drawn in by the lower payment without fully understanding the long-term financial drag. The premise is simple: you get to control the monthly cash flow, but you give up almost all control over your equity. And for real estate investors, equity is oxygen. Most investors don’t plan to hold a mortgage for 50 years, of course. But even in a five-to-10-year hold period, the longer amortization schedule means you barely touch principal. That translates to slower equity buildup, less leverage for future deals, and a weaker financial position overall.

This is why forward-thinking investors are starting to prioritize something different: uninterrupted growth, strategic liquidity, and the ability to create leverage on their own terms. Enter the Infinite Banking Concept. At a glance, it looks nothing like a traditional investment. It’s built on a properly structured whole life insurance policy from a mutual company, something that historically seems more aligned with estate planning than portfolio building. But when implemented intentionally, it becomes one of the most powerful cash-flow tools a real estate investor can have. The reason? Unlike traditional assets that rise and fall with market cycles or bank accounts that offer negligible returns, these policies grow consistently year over year, regardless of what the economy is doing. And most importantly, that growth is uninterrupted, even when you use the money. Let’s say your policy has built $150,000 in available cash value. You take a policy loan to fund a down payment on a new duplex. The policy continues to grow as if the full value is still in place, because technically, it is. You’re borrowing against the value, not withdrawing it. Your opportunity cost isn’t lost. It’s still working for you in the background. This concept becomes even more powerful when compared to traditional financing or long amortization models like the 50-year mortgage. In those scenarios, you’re paying down a loan slowly and giving away control of capital in exchange for a fixed schedule. With Infinite Banking, you build your own capital source and borrow on your own terms. No approval processes, no shifting underwriting guidelines, and no risk of being sidelined when banks change their policies. It’s not just about the dollars. It’s about mindset. Real estate investors who thrive in the next decade will be the ones who stop chasing rate sheets and start building systems. Systems that store value, grow consistently, and allow for real-time access to capital without market interruptions. Some investors are combining these systems with

additional strategies like First Lien HELOCs to further accelerate their control. That may not be for everyone, but the principle holds: The future belongs to those who ask better questions. Not just “What’s the rate today?” but, “How do I fund deals without being dependent on traditional lenders?” And perhaps even more importantly, “How do I make sure my money keeps working, even when I’m using it elsewhere?” In an environment where volatility is the norm and new policies are constantly reshaping the housing landscape, the ones who win won’t be the ones with the best loan offers. It’ll be the ones who create their own terms and control their own access to capital. Uninterrupted compounding is not just a luxury. It is the foundation of long-term financial agility. Real estate investors who understand this now will be in the strongest position to scale later without taking unnecessary risks or watching interest costs erode their growth. The 50-year mortgage might make headlines, but it’s the investors who quietly build resilient financial systems that will make the real moves in the years ahead. 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.

Real Estate Journal · Winnter 2025-26

Real Estate Journal

The ‘Hidden Market’ May Be the Key to Your System By Tony Youngs

ay back in the 1980s, I was taught that I must have a system and discipline if I want to be successful in real estate. I have certainly followed those rules and found the practice to be true. The system I follow is to plot a course of pre-foreclosure properties on an optimized route and have the discipline to go out and visit them each week. As I visit these properties, I drive the entire neighborhood and often find several other distressed houses with no for-sale signs in the yard, but I contact the owners and offer to buy them. I have the most success with the additional houses I find because the foreclosures are advertised and are very competitive. A homeowner that is in pre-foreclosure gets bombarded with letters, phone calls, and visits from many people who want to buy their homes. Today, many of these homeowners sell to investors before the house goes up for auction. Many of these homes need work or repairs but because of the competition, a homeowner in foreclosure can get very close to market value. As a flipper myself, I wonder how the investor can do the renovation and make a profit. I also attend foreclosure auctions. Most of the properties scheduled get postponed or canceled because the homeowner sold it before the auction, or they got a workout plan with their bank, or they filed bankruptcy, which stops the foreclosure process. This means there aren’t many houses that actually make it to the auction. But there are masses of investors attending these auctions and they bid the price up to market value. If no one bids on a house, it gets repossessed by the lender and becomes a bank-owned property but I very seldom see anything go back to the lender. If I do see it, the lender puts it on the MLS or Auction.com as a fixer upper, and it gets multiple offers. On the other hand, I am seeing many more houses sitting unsold on the Multiple Listing Service (MLS) that are completely renovated. The ones that do sell tend to do so because the owners reduce the price, sometimes more than once. What is the solution and how do we navigate? We investors are risk takers, but we must be smarter in calculating the risk in today’s market. The costs of renovations are climbing higher and higher and have been for quite some time. With the combination of the higher renovation costs and the fierce competition from investors paying much higher prices, how then

Real Estate Journal · Winter 2025-26

can we move forward and work smarter? What I am doing is using my discipline by working harder in the hidden market. When I contact the owner of a distressed property with no-for sale sign, I put a written offer in his or her hand. In the past, they would often tell me my offer was low because they would see their neighbor sell their home on MLS and receive multiple offers. But today, these hidden-market owners are seeing their neighbors’ houses sitting unsold on the market unless they discount. Therefore, I am able to negotiate better prices according to the amount needed for repairs and problems. Once I close on it, I then decide whether to put it on the MLS as a fixer upper (as I am still witnessing multiple offers and bidding wars). If I decide to renovate with the high costs of materials and labor, I must remember that renovated houses are sitting unsold in my area. Which, by the way, is wellknown for the best schools. If I do decide to renovate, which I love to do, I do it correctly (I learned how from my brother Pete Youngs many years ago). I have a crew of two laborers that can do just about anything, i.e. clean out, paint, tile floors or laminate, backsplashes, install vanities, toilets, drywall, landscaping, etc. I also have a licensed plumber, an electrician, and HVAC people who are sole proprietors. This is my saving grace, in my opinion. There are many sole proprietors that do outstanding work and if you keep them busy, they give you excellent prices. Mine have been loyal for many years; I can rehab a house at a much lower cost than most. I may be wrong in my thinking, but If I hire a big company for my HVAC, plumbing, and electrical, it will cost a lot more. Why? Because those companies use TV advertising, billboards and radio ads, and they

have huge buildings with lots of vans and employees, so they must charge outrageous prices to cover all that overhead. Guess who is paying for that? In summary, I am not telling you that pursuing foreclosures, probates, and MLS is a waste of time; I’m just saying that it is highly competitive. I do believe that you have just as good a chance to get the deal as anyone; after all, I still get foreclosures despite the competition. That’s because I have learned how to put myself in homeowners’ shoes when talking to them. But the best deals are in the hidden market, which is how you find foreclosures, probates, and distressed properties before they become public. Tony Youngs is a national speaker, author, rehabber, trainer, and active real estate investor who takes you by the hand in your own backyard to teach you how to find good deals. He can be reached through his website at www.tonyyoungs.com.

Real Estate Journal

Understanding the FinCEN Residential Real Estate Reporting Rule

By David W. Birdsong

n 2024 the Financial Criminal Enforcement Network (FinCEN), a division of the United States Treasury Department, adopted the FinCEN Residential Real Estate Reporting Rule, with a starting date of December 1, 2025. This starting date has been pushed back to March 1, 2026, and may be pushed back further, but as of today real estate buyers, sellers, investors and particularly title companies need to be aware of this rule and what it requires of real estate transactions after the date it finally begins. Certain individuals (mostly title companies but it also applies to transactions without title companies) will have to file a report with FinCEN regarding certain real estate closings.

The rule applies to: Transfers involving residential real estate, including condos, townhouses, vacant land zoned for residential housing; where the purchaser is a limited liability company, corporation, partnership, and certain trusts; and where the transaction does not include financing by an entity that currently does not have to comply with government anti-money laundering regulations (such as a bank, credit union, certain national lenders). Reports will have to be filed for transfers by cash sales, owner financing, hard money loans, private loans, donations, quitclaims, etc. There are some exceptions for estate planning trusts, but those are very limited.

The report will have to include: For the property: the street address, legal description, date of closing. For the transferee entity (LLC, corp., partnership): its name, address, tax identification number. It will also need to include information on the beneficial owners of the entity. A beneficial own-

er is someone who owns a 25% or larger interest in the entity, or someone who has “substantial control” over the company, such as an officer or manager. The report also requires information on the person signing for the entity, regardless of whether they have a beneficial ownership or control. The required information includes the person’s full name, residential address, citizenship, date of birth and Social Security number. If the transferee is a trust, the report must state: The name of trust, the date the trust was executed, the tax identification number and whether the trust is revocable or irrevocable. Information on certain individuals related to the trust have to be included in the report. Those individuals are the trustee, any beneficiary who can demand or make a withdrawal of assets from the trust, along with any grantor or settlor with right to revoke the trust or withdraw assets from the trust. If the trustee or beneficiary is an entity, the same beneficial ownership information as stated above needs to be disclosed. Also, the information for anyone signing for the trust if they are not the trustee. For all of these individuals the report must state their full name, residential address, cit-

Closing the Books in QuickBooks • •

Or delete something Or move a date back into that closed period QuickBooks will stop them and ask for the password. It turns “Oops, I did not know” into “Are you sure?” That small pause saves you from a lot of mystery later.

But What If I Find a Mistake After I Close? Good. This tells me you are already thinking like a careful owner. Closing books is not a life sentence. You are not trapped. If you genuinely find something that needs fixing: • You (or your CPA) can enter the password • Make the adjustment • Keep a note or paper trail of what changed and why The difference is that now changes are 16

izenship and tax identification number. For the transferor of the property, certain information needs to be disclosed as well. If an individual, the report requires their full legal name, date of birth, residential address and Social Security number. If the transferee is an entity (LLC, corp., partnership), the report must state the full legal name of entity, a street address and a tax identification number. If the transferee is a trust, the report must state the full name of trust, the date it was executed, and the tax identification number for the trust. Also, the trustee’s full name, residential address and tax identification number. Finally, the report must disclose information regarding any funds that were brought to the closing. It must state the originating financial institution, the account number, the name on the account, the method of payment (wire/check), and the dollar amount of payment. There are civil and criminal penalties for failure to file the required report with FinCEN. The American Land Title Association (ALTA), the national association of real estate title attorneys, has been pushing for reforms to lessen the impact of these reporting requirements, particularly on

small title companies. ALTA estimates the rule will add two-and-a-half hours of additional time per file for title companies. There is a strong possibility this will result in an additional compliance fee for preparing and filing the report that will be passed on to the parties to any transaction. ALTA has been pushing Congress to ask FinCEN to lessen the impact through such items as creating a minimum dollar amount for a transaction before a report is required or only requiring a report when a foreign entity or individual is involved. Fidelity National Title Insurance Company has filed suit challenging the way the rule was adopted and requested a temporary restraining order prohibiting the rule from going into effect pending the outcome of the trial. The hearing on the TRO was scheduled for Sept. 30, 2025. On that day FinCEN announced it was pushing back the implementation of the rule to March 1, 2026. Based on that the hearing date on the TRO was postponed. Investors need to be aware there is a strong possibility this rule will go into effect in early 2026. Investors need to contact their congressmen and congresswomen and encourage them to reach out to FinCEN to take any steps necessary to lessen the impact this reporting rule will have on real estate transactions in the future. David Birdsong is an attorney with Gulf South Title Group in Metairie LA, and is vice president and legal counsel of the New Orleans Real Estate Investors Association. He can be reached at David@ gulfsouthtitle.com.

... continued from Page 11

intentional, not accidental. I call that grown-up QuickBooks.

What This Really Gives You Let us step away from the software for a moment. What closing the books really gives you is: • One clean version of last year you can stand on • Numbers that do not keep moving every time somebody clicks • A calmer relationship with your CPA • More mental space to think about deals, not data You are already doing something hard: Buying, holding, flipping, and managing properties. This is one simple move that makes hard work easier to measure. If you are thinking, “I do not want to break anything…” That is honest. And smart. Many real estate investors quietly

avoid this feature because they are afraid they will mess something up. So, they live in this weird in-between: • Books never feel final. • Old months get touched repeatedly • CPAs send gentle (or not-so-gentle) emails You do not have to pretend you love this stuff. That is what people like me are here for. If you want to try this on your own, start small: • Pick one year that is truly done • Make sure it is reconciled and matches your tax return • Turn on “Close the books” with a password And then notice how it feels to know: No one can casually change that year without me knowing. If, while reading this, a little voice in your head is saying: “Honestly, I would rather have someone sit with me the first time and walk

through my actual QuickBooks,” then that is your next step. When you are ready for that, whether it is a one-time review, a cleanup, or ongoing help for your real estate books, reach out. Until then, do this for yourself: Close one year. Protect one story. Let your numbers finally line up with the portfolio you are building. Gita Faust is the founder & CEO of HammerZen, which helps businesses save time and 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.

Real Estate Journal · Winnter 2025-26

Real Estate Journal

US Treasury Department

REAL ESTATE AUCTIONS

RESIDENTIAL, COMMERCIAL & LAND

Bid Online for Properties Located Throughout the US & Puerto Rico Sign up to receive email notifications on upcoming auctions at cwsmarketing.com

• Auctions open to the public • Clear title conveyed (unless specified) • No Buyer's Premiums charged!

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Real Estate Journal · Winnter 2025-26

Real Estate Journal

By Accruit

2025 1031 Exchange Trends: Fewer Deals, Bigger Values, and a More Selective Market

s we move into the final stretch of 2025, Accruit Technologies has analyzed aggregated data from more than 30 participating national Qualified Intermediaries (QIs) leveraging their licensed software, Exchange Manager Pro. The findings reveal key shifts in exchange activity, investor behavior, and market sentiment heading into 2026.

Aggregated 2024 vs. 2025 Trends Overall, exchange activity showed a modest contraction in 2025 YTD compared to the same period in 2024 • Through Q3, total exchanges declined by 4.4% year-over-year, indicating slightly reduced market activity • Total contractual value of sales in 1031 exchanges rose 19.9%, while purchase value dropped 11.5%, highlighting a market shift toward larger relinquished asset dispositions and more cautious replacement acquisitions

Key Takeaways 1. Higher value per transaction Average deal sizes have increased materially, evidenced by the nearly 20% rise in both sales values. 2. Fewer but larger transactions Total exchanges were down 4%–5% YoY, while aggregate value climbed, showing smaller investors are continuing to hold onto property in lieu of exchanging. 3. Increased identification challenges Failure-to-ID Replacement Property during the 45day identification period increased from 6% to 9% for all exchanges, reflecting supply-demand imbalances in replacement property options. 4. Reduced “boot” activity A 7% decline in exchanges with greater than $100k in “boot,” the taxable portion of exchange funds not utilized to acquire replacement property within a 1031 exchange, signals better reinvestment discipline especially when viewed in combination with the increase in exchanges that failed to ID. The aggregated 2025 data illustrates a picture of a more selective, value-focused 1031 exchange environment. Investors are executing fewer total transactions but targeting larger, higher-quality assets. At the same time, disciplined reinvestment and tighter property identification underscore a more strategic approach to exchange management.

2026 Forecast of the 1031 Exchange Landscape As we look ahead, the outlook for 1031 exchanges in 2026 appears broadly positive, shaped by the anticipated reduction in interest rates. As the Federal Reserve continues easing short-term policy rates, borrowing costs are expected to decline, making it more feasible for investors to finance replacement properties and structure tax-deferred exchanges. This easing should stimulate renewed activity, particularly among investors who had postponed exchanges during the period of elevated interest rates. At the same time, certain property sectors—especially multifamily and industrial—are showing signs of renewed stability, with rent growth returning and vacancy pressures easing. These improvements create more attractive opportunities for “like-kind” replacement properties, particularly in income-producing asset classes that align well with long-term exchange strategies. The core tax-deferral incentive of a 1031 exchange remains a strong driver for investors seeking to rebalance portfolios while managing capital gains exposure, and as appreciation moderates, the appeal of deferring taxation while moving into more productive assets may grow. Overall, 2026 is expected to be a favorable year for property owners looking to leverage 1031 exchanges, with moderating rates and a more balanced real estate market providing new opportunities for strategic repositioning. The environment, however, will likely remain

less exuberant than past boom periods, requiring disciplined underwriting, careful property selection, and prudent leverage. Investors who focus on stable, income-generating sectors. In short, while 2026 may not bring explosive growth, it promises a steady and strategically advantageous landscape for 1031 investors ready to act thoughtfully in a changing market. Accruit is a national provider of 1031 exchange solutions, including Qualified Intermediary and Exchange Accommodation Titleholder services, an integrated 1031 exchange platform, and developer of the industry’s only 1031 Exchange workflow technology. Founded in 2000 and acquired by Inspira Financial in 2023, Accruit has gained the trust of thousands of clients and become a leader in the industry through its highly credentialed experts, consistent delivery of service, innovative technologies, robust security protocols and financial strength. Members of National REIA can take advantage of a 10% discount on the exchange fee. Learn more by contact Accruit at (800) 237-1031, or by visiting www.accruit.com/ nreia

With National REIAU, we have made learning from some of the best fast, easy and inexpensive. National REIAU delivers great low-cost, high-quality investor training on exactly the subject you want, exactly when you want it.

Learn more by visiting nationalreiau.com Real Estate Journal · Winter 2025-26

Real Estate Journal

NREIA MEMBERS EARN 2% CASH BACK* ON EVERY PURCHASE

HOW DOERS GET MORE DONE The Home Depot has the tools to help you get more done faster. With convenient shopping, delivery how you need it, dedicated Pro support and a cash-back rebate program*, we help you reach your business goals. Plus, NREIA members receive Gold Tier Paint Rewards with 20% off paints, stains and primers every day. Reach out to NREIA or your local chapter to learn how you can start earning cash back today.

Learn more at homedepot.com/c/Pro_Xtra. *Participating members with semiannual net purchases of more than $5,000 receive a 2% rebate from The Home Depot based on spend on registered forms of payment in Pro Xtra and tied to the NREIA program. Rebate periods are January 1- June 30 and July 1 - December 31. Rebate are issued daysthan after the rebate period ends.aRestrictions apply. Please 1-866-333-3551 or homedepot.nationalreia.org for furtherforms details.of *Participating members with semiannual net checks purchases of 60 more $12,500 receive 2% rebate from ThecallHome Depot based on spend on registered Pro Xtra Paint Rewards is a sub-program of the Pro Xtra Program. Pro Xtra Paint Rewards Qualifying Purchases will be tracked during the Program Period and include select The Home Depot Paint department in-store payment in Pro Xtra and tied to the NREIA program. Rebate periods are January 1 June 30 and July 1 December 31. Rebate checks are issued 60 days after the purchases and online purchases from The Home Depot websites, see https://www.homedepot.com/c/ProXtra_TermsandConditions for details.

rebate period ends. Restrictions apply. Please call 1-866-333-3551 or homedepot.nationalreia.org for further details. Pro Xtra Paint Rewards is a sub-program of the Pro Xtra Program. Pro Xtra Paint Rewards Qualifying Purchases will be tracked during the Program Period and include select The Home Depot paint department instore purchases and online purchases from The Home Depot websites, see https://www.homedepot.com/c/ProXtra_TermsandConditions for details.

Real Estate Journal · Winnter 2025-26