October 15, 2025 • 21 mins
Year-end isn’t a slowdown; it’s an opening. With inventory up 20–30% and buyer attention drifting to spring, Northwest Arkansas presents a rare mix of strong fundamentals and thinner competition. We break down why Q4 can be the smartest time to buy, how to compare your actuals to original underwriting, and the right way to decide between holding, refinancing, or selling as 2026 approaches. Along the way, we share the pitfalls of rushing into a deal for tax reasons and why bonus depreciation returning to 100% is powerful only when the deal stands on today’s numbers.
We also tackle the macro noise, rate-cut predictions, shifting inflation targets, and how those signals may affect cap rates, without building pro formas on hope. The operating principle: underwrite with current rates, assume conservative exit caps, and treat any future cuts as upside. From evaluating DSCR and debt maturities to timing targeted capex before a sale, we lay out a practical framework you can use this week. And if you’re weighing a 1031 exchange, hear our candid take on time pressure, overpay risk, and how sellers can strategically position to “catch” a 1031 buyer in Q4.
Deal flow is a relationship game, especially now. We share how we broadcast a tight buy box (2–24 units, well-located, light-to-moderate value-add) to brokers, lenders, and operators to surface pre-market leads, and how consistent communication and clean closes move you to the top of call lists. We close with concrete goal-setting and system upgrades for 2026, so you enter January at a sprint, not a jog. If Northwest Arkansas real estate is on your map, this conversation will sharpen your edge.
If this helped you think clearly about Q4 moves, follow the show, share it with a friend who invests in NWA, and leave a quick review so others can find it. Have a question or a deal to discuss? Message us on Instagram or at NWAInvesting.com.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:07):
Welcome to Northwest Arkansas Investing Podcast, your
go-to source for real estateinvesting in Northwest Arkansas.
SPEAKER_02 (00:12):
With your seasoned investor just starting out, we
bring you expert insights,market trends, and practical
strategies to help you buildwealth through real estate.
SPEAKER_01 (00:20):
From buying and selling to property management
and long-term investmentplanning, we cover it all so you
can make smart, informeddecisions in this fast growing
market.
Let's dive in.
All right, welcome back toNorthwest Arkansas Investing
Podcasts.
I'm here with Brian Wagers, myco-host.
And uh we we just finished upwrapping up talking about
underwriting and uh somestrategies and things that we
(00:42):
look at and we use in oureveryday practice.
And then before that, we talkedabout partnerships and how we
structure those, um, you know,what you should expect there on
structuring and and uh whatgeneral partners are and limited
partners and some cool someinteresting terminology that I
think would be good for for anykind of investor.
And uh we wanted to just wrap uphere.
(01:04):
If you haven't listened tothose, go back and listen to
them.
But if we just wanted to wrap uphere with kind of how we're
thinking about the end of 2025in uh Q3, Q4 here, we're getting
towards the end of the year, anduh kind of what strategies that
we're thinking about.
Um a lot has changed this year,and and uh as far as even
(01:24):
obviously the market and how howthings have has continued,
inventory has continued toclimb.
Um, but also you know, here inNorthwest Arkansas, everything
has continued to be strong,rents have continued to be
strong, prices have continued tobe strong.
Um, and then on top of that,just with new administration
being uh being in January 20th,some of the things that they
(01:47):
were able to pass in the bigbeautiful bill uh and how that
has changed things for uh justthe way that we're thinking
about you know transactions anduh wrapping up 2025 and headed
into 2026.
So um, Brian, any anything justhigh level, obviously we're
gonna dig into this, butanything that you're thinking
about specifically at the end of2025, that um are you are you
(02:11):
trying to do as many deals asyou can or or uh are you still
being being pretty conservativeyourself right now?
What is it what does that looklike?
SPEAKER_02 (02:18):
Yeah, I mean September, October, November,
December, last four months ofthe year.
Like this is my favorite time ofyear, not just because
football's back and the holidaysare around here.
Like uh, you know, I love falland and the holidays, but a lot
of people kind of take theirfoot off the gas actually around
this time.
So it's an opportunity forpeople to come in on you know
(02:42):
deals where where some peopleare already thinking about 2026,
which is good to be thinkingabout 2026, but some people will
even pause anything they're nottrying to get done, you know,
whether they have they're not asfocused.
But you know, usually at the endof the year, I'm seeing a lot of
good deals that happen.
You will whether people need toget out of those deals or um
(03:03):
there's not as many buyers uh inthat opportunity.
So I I think it's a good time tobe a buyer at the end of the
year.
If you can make it happen andput deals together, you know,
that's where besides some of thestrategies that we'll be talking
about, uh, you know, that's whatI I like to think about at the
end of the year.
I find uh I seem to find somemore good deals around this time
(03:23):
of year.
SPEAKER_01 (03:24):
Yeah, I love that.
And even just thinking about theresidential market, um, I was
looking at some of the datarecently and and uh now from
this time last year, we're upabout anywhere between 20 to 30
percent in active inventory.
And so just thinking about evenas a residential single-family
home buyer, or uh, you know, ifyou're looking for your own
(03:45):
house, or even if you're aninvestor in that space, um, you
you know, historically themarket as we get in, like you
said, as we get into the fall,especially into the holidays,
uh, buyers are just, you know,that they're kind of thinking
about next spring and that thatbeing the time to buy.
And so you have a lot lessbuyers in the market.
(04:05):
Inventory will continue tolikely climb.
And so you have a situationwhere you have a lot of
opportunity, you know,negotiation opportunities out
there if you're looking in thatspace, and then again, too, in
in kind of that commercial ormultifamily space, uh, you know,
folks are kind of wrapping upfor the year and and stuff like
that.
SPEAKER_02 (04:23):
So for me, it's also a time to not get sucked into
the whirlwind of all theproperties, all the asset
management, constructionmanagement, whatever you're
doing, but also to take a stepback and look at okay, these
properties that I've been in,whether that's from the
beginning of the year, a yearago, two years ago, how how are
they performing today versus howI was projecting to projecting
(04:45):
the performing?
Like we talked aboutunderwriting in our last
episode.
You know, go back going back tothat original underwriting and
seeing how you're performingcompared to that.
Is there any properties that youmay be looking at?
Okay, what's my next plan here?
Is our is our our debt comingdue in the next year?
Do we need to look atrefinancing that or do we need
(05:06):
to look at preparing for a sale?
Should we go ahead and put somemore money into this property to
really juice up the uh income?
Is there any opportunity on thisproperty to um to do that, to
get income up before we get asale?
Is there anything that we needto do there?
Um so I like taking a step backand looking at the properties
that I'm in, besides just theyou know, as I call it, the
(05:30):
whirlwind of what's you knowfast and and needed, but um, and
taking a step back and lookingat that and really looking at um
exactly that.
Should I should I be thinkingabout selling?
Should I be thinking aboutrefinancing um and any other
levels to pull levers to pool?
SPEAKER_01 (05:47):
Yep.
I love that.
I think it's also just a time toto like let's not make a dumb
decision, also, uh e even withlike kind of what we're saying,
with there being likely moreopportunities at the end of the
year because there are l thereis less competition out there uh
really really getting after ittowards the end of the year.
Um it's also time, you know, aswe think about things that have
(06:09):
changed in the administrationwith uh with cost segregations
and and bonus depreciation, withthat being back at 100% bonus
depreciation and and there beingopportunity there for folks.
Um I think it's not now's thetime to to also think about,
hey, we've got to closesomething.
We've likely got to getsomething under contract in the
next month or two if we want toclose it by the end of the year.
(06:32):
But even with that, you know,let's let's not make a dumb
decision uh just to get some taxsavings.
Is that do you see thatsometimes out there with the
things?
SPEAKER_02 (06:39):
Yeah, I think I you know that's why I'm not as a
huge fan of a 1031 because thereis so much pressure to overpay.
When you have a 1031, you're ina you're in a kind of a time
crunch to really position that.
Yeah, that's great on on the taxsavings, but man, are you into
uh I see a lot of 1031 buyersoverpay.
(07:00):
If I'm if I'm a seller, if youknow when I'm a seller, it's
actually not a bad time to lookat listing some of your
properties too, to to quoteunquote catch a 1031 buyer.
If you if you can catch someonethat needs a 1031 that needs to
be completed by the end of theyear, it's not a bad time to
softly put it out with somebrokers or even put it on the
(07:21):
market where you might get youmight get lucky with that uh
1031 buyer.
So honestly, yeah, I I've never1031 myself.
I I've helped facilitate a 1031investor where they just did not
want the tax bill.
So that's fine.
You know, everyone has theirdifferent tax strategies there.
It's it's a good time of year tobe talking to your CPA and
(07:43):
looking at your portfolio andmaking any kind of strategies.
I think bonus depreciation andcost segregations are a great
tool in the tool belt, besidesjust you know, normal straight
line depreciation.
You know, bonus is is great ifyou had a good if you had a good
year and some needs.
And then also looking atopportunity zones, you know,
(08:05):
that's uh that's a goodopportunity for someone who has
a big uh tax burden, you know,investing in opportunity zones
where you're deferring thosetaxes and even not paying taxes
after you've in an investmentfor 10 years.
SPEAKER_01 (08:19):
Yeah, absolutely.
Man, those are great.
I think uh we're we'reoftentimes, like you said,
talking about this, you know,from with my clients at this
time of the year.
Hey, this might be a good idea.
Like I know you've been talkingabout potentially listing, you
know, this small multifamily orthis little apartment complex
that you have, um you know, andand now might be the time
(08:41):
because there are likelytypically historically you'll uh
you'll find a lot of 1031 buyersin in Q4, into Q3 time frame.
And so we we talk about that allthe time.
And then yeah, going back to uhto what you said with with uh
kind of those cost segregationstudies as well, um, you know,
some something to consult withyour CPA about and uh the
(09:04):
implications of that and whatthat looks like.
But um great opportunity forinvestors to be able to uh, if
you're able to set it upcorrectly, to be able to have
some really big tax savings withuh with how things have changed
with the new bill that passed.
So I I'd recommend getting withyour CPA and kind of talking
through what that looks like.
But just as we look kind of lookat at 2026 and beyond, a lot of
(09:28):
stuff in the news right now,especially about uh rate cuts
and uh how the Fed is looking atthings.
Something interesting I uh thatI saw recently um was that maybe
maybe that the Fed has now takenoff their uh I guess their where
they they want previously hadwhere they want inflation to be
(09:49):
at 2%, they've now taken offthat guideline.
I don't know if you've seen thatas of late.
Um and I I'd have to uh I'llI'll pull that up to show you
after this, but um they havetaken off their guideline of 2%,
and to me that feels like maybethe guideline is higher, uh
right, or that it's changed umnow.
And so to me, it feels like youknow, if that's the case and if
(10:13):
inflation's gonna net gonna behigher in the future, um, the
dollar is dead, or the dollar isgonna continue to go down in
value, and assets are gonnacontinue to go up in value, real
estate, stocks, you know, Imean, all the things that we
talk about.
Um, so I think what what areyour thoughts?
I know obviously that's a lotthere, but um Fed is obviously
(10:35):
talking right now.
We're the uh beginning ofSeptember about cutting rates
here in September.
And so what what are yourthoughts as you look to 2026?
SPEAKER_02 (10:44):
Yeah, I think the Fed's biggest priority is
inflation.
You know, they're also lookingat the job market too, like you
know, what what's uhunemployment at?
You know, what what are kind ofsome recession indicators?
I think uh it's reallyinteresting to see the current
administration like push toprivatize the Fed to like pr
like like put pressure on themto lower interest rates.
(11:06):
Um, I think interest rates willcome down.
Uh I personally am notunderwriting for them to come
down, but I I think they willcome down.
I'm it's hard to predict uh whenthey will come down or or what
they will come down.
You know, for me, I'm trying todo good deals that make sense in
today's market.
If we're assuming that whereinterest rates aren't going
(11:27):
anywhere, um, you know, thatthat's how I I'm looking at it.
I'm being way I'm being active,I'm staying active, super
active, not taking the foot offthe gas.
You know, I think there'sthere's a lot of activity right
now, but I think as we getdeeper into 2025, you will see
people start to take the footoff the gas for 2025.
So there will be thoseopportunities.
But for 2026, you know, I waslooking at some of my portfolio
(11:51):
at, you know, w when are some ofmy uh notes coming due.
You know, I have a property thathas, you know, I was just
re-looking at it, and it's likethe DSCR is like 2.2.
Um, and we have a 3.5% interestrate that's good through 2027.
So I've you know, before Ireally was digging in, I was
(12:12):
getting a lot of calls on it andentertaining high offers, but uh
I think you know, for thatparticular property, uh I'm
gonna sit on it, continue to sitlike I'm not looking at it until
the end of 2026.
Before I was thinking, yeah,maybe I'll try to exit this at
the end of 2025 or beginning of2026, but why not keep holding
(12:34):
on to that property and letinterest rates come down and let
the market continue toappreciate and then go from
there, maybe refinance that andand sell it.
So for me, I'm I'm looking atwhat properties am I going to
try and sell and what propertiesam I am I holding on to.
SPEAKER_01 (12:49):
Yep, absolutely.
And I think just kind of on topof that, just thinking about Fed
cuts and stuff like that, thatwill naturally affect kind of
where cap rates continue tochange uh here in Northwest
Arkansas and and around thecountry.
And so that'll be just somethingto keep an eye out for.
There are a lot of uhpredictions out there that rates
(13:10):
may drop 50 basis points.
Um, I think that'd besignificant and uh could really
kind of change some things for alot of people.
Um but realistically, I thinkthe highest prediction is that
it'll it'll drop 25 basispoints.
But I I like the practice ofwhat you're talking about and
and really just underwritingdeal, continuing to underwrite
(13:30):
deals at today's rates and nothoping for you know tomorrow's
predictions.
Yeah, if it makes sense today,then that that's just gravy
right there.
SPEAKER_02 (13:37):
If if it does come down, or when it does come down,
that's just you know an extrabonus for you.
SPEAKER_01 (13:42):
Yep, absolutely.
But yeah, just as we as wecontinue to look at the end of
25 and and into 26, um, youknow, I think for anybody out
there, I think now's the time toreally put foot on the gas.
Um if you're if you're lookingfor something specific, make
sure everybody in your networkknows you're looking for it, um,
whether that be on social media,whether that be some sort of
(14:04):
other outlet, uh, word of mouthor email or however you want to
do it specifically.
I know that's a practice I'vebeen trying to put in
continuously, is that, hey, I'mlooking for two to 24 units in
Northwest Arkansas.
Um, and I Brian, I know a lot ofpeople when they think about
multifamily, they're thinkingabout Brian Wagers and and uh
and so that's what you want tocontinue to you continue to want
(14:26):
to be that guy and and or thatgal that that uh you know will
be at the forefront of those ofthose opportunities when they
come up because you can't beeverywhere every time.
And so even if you are a dealfinder, um you know some of your
biggest assets are gonna bebrokers or are gonna be other
people that are out in themarket looking for deals, and
and so any way that you can bein front of them and be a closer
(14:48):
and and be someone that takescare of other people, I think uh
the better is as we go into2026.
SPEAKER_02 (14:53):
So yeah, I I think even high level too, without
getting too nitty-gritty, I II'm looking at my systems and
what what what was work whatworked really well throughout
2025, what were someopportunities to improve on,
what can I be implementing in2026?
You know, everyone loves it.
You're I love I I'm a verygoal-oriented and goal, you
(15:15):
know, driven individual, youknow, which is great.
It happens at the end of theyear, but it's not a bad time to
start doing it now, like lookingat uh your goal like goals for
2026 and and even setting somegoals for the end of 20, like,
you know, I I would like toclose on two more existing
properties uh you know in 2025,and I would like to, you know,
(15:37):
do a develop, you know, at leastget a develop one more
development deal in the work.
So, you know, that's kind of mygoals for the end of 2025, is
close two more existing deals,you know, that five to a hundred
units, and then uh get a get adevelopment deal moving and
breaking ground.
SPEAKER_01 (15:55):
Love it.
Yeah, I think that's uh I'm Imean I'm very similar and and uh
super goal driven.
Love to kind of at least uhvisit that every end of the year
and and uh kind of where we wantto be at the end of next year
and and uh where we want to bein five years, ten years, and
what that looks like.
And so would encourage anybodyto continue to do the same,
(16:16):
especially if you're in realestate, and uh and then just
look back at those often, youknow, write them down every day
if that's something that worksfor you and or uh revisit them
quarterly even and uh and thenhave those in your corner that
encourage you towards that.
So but 2025 was uh you know, Ithink a really strong year for
Northwest Arkansas.
(16:37):
I think 2026, especially with umthe growth we're we're gonna
continue to have, will uh willcontinue to be strong here in
Northwest Arkansas.
And so if there areopportunities out there that
that make sense conservativelyat today's rates, um, you know,
I think we would Brian and Iboth would recommend that that
uh you struggle and consider andtry to jump on that.
SPEAKER_02 (16:58):
So yeah, and I think you know, we we still have a
quarter left in 2025, and we'llwe'll be hit probably having
another episode of uh uh closerto the end of the year, but to
really be forward thinking, youknow, now is the best time to be
you know forward thinking.
SPEAKER_01 (17:12):
Yep, absolutely.
Well, thanks again for listeningto uh NWA Investing Podcast.
We're uh we're we want tocontinue to bring y'all value,
we're kind of where we see it,and and uh we've got the RBS
skyline reports that will likelydrop sometime in the next few
weeks to month, and uh we'llquickly get together and get you
all the info on that and talkthrough really all the data from
(17:34):
the first half of 2025, and uhand then we've really got some
great guests coming up as welldown the pipeline and and uh for
the rest of 2025.
So continue to listen in, and ifthere's anything that we could
cover that you guys would liketo see, reach out um to our
Instagram or reach out to ouremails uh direct, and and we'd
love to talk through that.
(17:55):
So yeah, nwainvesting.com.
That's right.
Thanks again for listening, andwe'll see you soon.
SPEAKER_00 (18:00):
All right, thanks, guys.
Thanks, guys.
SPEAKER_01 (18:02):
Cool.
SPEAKER_00 (18:03):
Again, thank you guys for tuning in.
I'm gonna go ahead and uh listsome sponsors off here.
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(18:47):
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Welcome to Northwest Arkansas Investing Podcast, your
go-to source for real estateinvesting in Northwest Arkansas.
SPEAKER_02 (00:12):
With your seasoned investor just starting out, we
bring you expert insights,market trends, and practical
strategies to help you buildwealth through real estate.
SPEAKER_01 (00:20):
From buying and selling to property management
and long-term investmentplanning, we cover it all so you
can make smart, informeddecisions in this fast growing
market.
Let's dive in.
All right, welcome back toNorthwest Arkansas Investing
Podcasts.
I'm here with Brian Wagers, myco-host.
And uh we we just finished upwrapping up talking about
underwriting and uh somestrategies and things that we
(00:42):
look at and we use in oureveryday practice.
And then before that, we talkedabout partnerships and how we
structure those, um, you know,what you should expect there on
structuring and and uh whatgeneral partners are and limited
partners and some cool someinteresting terminology that I
think would be good for for anykind of investor.
And uh we wanted to just wrap uphere.
(01:04):
If you haven't listened tothose, go back and listen to
them.
But if we just wanted to wrap uphere with kind of how we're
thinking about the end of 2025in uh Q3, Q4 here, we're getting
towards the end of the year, anduh kind of what strategies that
we're thinking about.
Um a lot has changed this year,and and uh as far as even
(01:24):
obviously the market and how howthings have has continued,
inventory has continued toclimb.
Um, but also you know, here inNorthwest Arkansas, everything
has continued to be strong,rents have continued to be
strong, prices have continued tobe strong.
Um, and then on top of that,just with new administration
being uh being in January 20th,some of the things that they
(01:47):
were able to pass in the bigbeautiful bill uh and how that
has changed things for uh justthe way that we're thinking
about you know transactions anduh wrapping up 2025 and headed
into 2026.
So um, Brian, any anything justhigh level, obviously we're
gonna dig into this, butanything that you're thinking
about specifically at the end of2025, that um are you are you
(02:11):
trying to do as many deals asyou can or or uh are you still
being being pretty conservativeyourself right now?
What is it what does that looklike?
SPEAKER_02 (02:18):
Yeah, I mean September, October, November,
December, last four months ofthe year.
Like this is my favorite time ofyear, not just because
football's back and the holidaysare around here.
Like uh, you know, I love falland and the holidays, but a lot
of people kind of take theirfoot off the gas actually around
this time.
So it's an opportunity forpeople to come in on you know
(02:42):
deals where where some peopleare already thinking about 2026,
which is good to be thinkingabout 2026, but some people will
even pause anything they're nottrying to get done, you know,
whether they have they're not asfocused.
But you know, usually at the endof the year, I'm seeing a lot of
good deals that happen.
You will whether people need toget out of those deals or um
(03:03):
there's not as many buyers uh inthat opportunity.
So I I think it's a good time tobe a buyer at the end of the
year.
If you can make it happen andput deals together, you know,
that's where besides some of thestrategies that we'll be talking
about, uh, you know, that's whatI I like to think about at the
end of the year.
I find uh I seem to find somemore good deals around this time
(03:23):
of year.
SPEAKER_01 (03:24):
Yeah, I love that.
And even just thinking about theresidential market, um, I was
looking at some of the datarecently and and uh now from
this time last year, we're upabout anywhere between 20 to 30
percent in active inventory.
And so just thinking about evenas a residential single-family
home buyer, or uh, you know, ifyou're looking for your own
(03:45):
house, or even if you're aninvestor in that space, um, you
you know, historically themarket as we get in, like you
said, as we get into the fall,especially into the holidays,
uh, buyers are just, you know,that they're kind of thinking
about next spring and that thatbeing the time to buy.
And so you have a lot lessbuyers in the market.
(04:05):
Inventory will continue tolikely climb.
And so you have a situationwhere you have a lot of
opportunity, you know,negotiation opportunities out
there if you're looking in thatspace, and then again, too, in
in kind of that commercial ormultifamily space, uh, you know,
folks are kind of wrapping upfor the year and and stuff like
that.
SPEAKER_02 (04:23):
So for me, it's also a time to not get sucked into
the whirlwind of all theproperties, all the asset
management, constructionmanagement, whatever you're
doing, but also to take a stepback and look at okay, these
properties that I've been in,whether that's from the
beginning of the year, a yearago, two years ago, how how are
they performing today versus howI was projecting to projecting
(04:45):
the performing?
Like we talked aboutunderwriting in our last
episode.
You know, go back going back tothat original underwriting and
seeing how you're performingcompared to that.
Is there any properties that youmay be looking at?
Okay, what's my next plan here?
Is our is our our debt comingdue in the next year?
Do we need to look atrefinancing that or do we need
(05:06):
to look at preparing for a sale?
Should we go ahead and put somemore money into this property to
really juice up the uh income?
Is there any opportunity on thisproperty to um to do that, to
get income up before we get asale?
Is there anything that we needto do there?
Um so I like taking a step backand looking at the properties
that I'm in, besides just theyou know, as I call it, the
(05:30):
whirlwind of what's you knowfast and and needed, but um, and
taking a step back and lookingat that and really looking at um
exactly that.
Should I should I be thinkingabout selling?
Should I be thinking aboutrefinancing um and any other
levels to pull levers to pool?
SPEAKER_01 (05:47):
Yep.
I love that.
I think it's also just a time toto like let's not make a dumb
decision, also, uh e even withlike kind of what we're saying,
with there being likely moreopportunities at the end of the
year because there are l thereis less competition out there uh
really really getting after ittowards the end of the year.
Um it's also time, you know, aswe think about things that have
(06:09):
changed in the administrationwith uh with cost segregations
and and bonus depreciation, withthat being back at 100% bonus
depreciation and and there beingopportunity there for folks.
Um I think it's not now's thetime to to also think about,
hey, we've got to closesomething.
We've likely got to getsomething under contract in the
next month or two if we want toclose it by the end of the year.
(06:32):
But even with that, you know,let's let's not make a dumb
decision uh just to get some taxsavings.
Is that do you see thatsometimes out there with the
things?
SPEAKER_02 (06:39):
Yeah, I think I you know that's why I'm not as a
huge fan of a 1031 because thereis so much pressure to overpay.
When you have a 1031, you're ina you're in a kind of a time
crunch to really position that.
Yeah, that's great on on the taxsavings, but man, are you into
uh I see a lot of 1031 buyersoverpay.
(07:00):
If I'm if I'm a seller, if youknow when I'm a seller, it's
actually not a bad time to lookat listing some of your
properties too, to to quoteunquote catch a 1031 buyer.
If you if you can catch someonethat needs a 1031 that needs to
be completed by the end of theyear, it's not a bad time to
softly put it out with somebrokers or even put it on the
(07:21):
market where you might get youmight get lucky with that uh
1031 buyer.
So honestly, yeah, I I've never1031 myself.
I I've helped facilitate a 1031investor where they just did not
want the tax bill.
So that's fine.
You know, everyone has theirdifferent tax strategies there.
It's it's a good time of year tobe talking to your CPA and
(07:43):
looking at your portfolio andmaking any kind of strategies.
I think bonus depreciation andcost segregations are a great
tool in the tool belt, besidesjust you know, normal straight
line depreciation.
You know, bonus is is great ifyou had a good if you had a good
year and some needs.
And then also looking atopportunity zones, you know,
(08:05):
that's uh that's a goodopportunity for someone who has
a big uh tax burden, you know,investing in opportunity zones
where you're deferring thosetaxes and even not paying taxes
after you've in an investmentfor 10 years.
SPEAKER_01 (08:19):
Yeah, absolutely.
Man, those are great.
I think uh we're we'reoftentimes, like you said,
talking about this, you know,from with my clients at this
time of the year.
Hey, this might be a good idea.
Like I know you've been talkingabout potentially listing, you
know, this small multifamily orthis little apartment complex
that you have, um you know, andand now might be the time
(08:41):
because there are likelytypically historically you'll uh
you'll find a lot of 1031 buyersin in Q4, into Q3 time frame.
And so we we talk about that allthe time.
And then yeah, going back to uhto what you said with with uh
kind of those cost segregationstudies as well, um, you know,
some something to consult withyour CPA about and uh the
(09:04):
implications of that and whatthat looks like.
But um great opportunity forinvestors to be able to uh, if
you're able to set it upcorrectly, to be able to have
some really big tax savings withuh with how things have changed
with the new bill that passed.
So I I'd recommend getting withyour CPA and kind of talking
through what that looks like.
But just as we look kind of lookat at 2026 and beyond, a lot of
(09:28):
stuff in the news right now,especially about uh rate cuts
and uh how the Fed is looking atthings.
Something interesting I uh thatI saw recently um was that maybe
maybe that the Fed has now takenoff their uh I guess their where
they they want previously hadwhere they want inflation to be
(09:49):
at 2%, they've now taken offthat guideline.
I don't know if you've seen thatas of late.
Um and I I'd have to uh I'llI'll pull that up to show you
after this, but um they havetaken off their guideline of 2%,
and to me that feels like maybethe guideline is higher, uh
right, or that it's changed umnow.
And so to me, it feels like youknow, if that's the case and if
(10:13):
inflation's gonna net gonna behigher in the future, um, the
dollar is dead, or the dollar isgonna continue to go down in
value, and assets are gonnacontinue to go up in value, real
estate, stocks, you know, Imean, all the things that we
talk about.
Um, so I think what what areyour thoughts?
I know obviously that's a lotthere, but um Fed is obviously
(10:35):
talking right now.
We're the uh beginning ofSeptember about cutting rates
here in September.
And so what what are yourthoughts as you look to 2026?
SPEAKER_02 (10:44):
Yeah, I think the Fed's biggest priority is
inflation.
You know, they're also lookingat the job market too, like you
know, what what's uhunemployment at?
You know, what what are kind ofsome recession indicators?
I think uh it's reallyinteresting to see the current
administration like push toprivatize the Fed to like pr
like like put pressure on themto lower interest rates.
(11:06):
Um, I think interest rates willcome down.
Uh I personally am notunderwriting for them to come
down, but I I think they willcome down.
I'm it's hard to predict uh whenthey will come down or or what
they will come down.
You know, for me, I'm trying todo good deals that make sense in
today's market.
If we're assuming that whereinterest rates aren't going
(11:27):
anywhere, um, you know, thatthat's how I I'm looking at it.
I'm being way I'm being active,I'm staying active, super
active, not taking the foot offthe gas.
You know, I think there'sthere's a lot of activity right
now, but I think as we getdeeper into 2025, you will see
people start to take the footoff the gas for 2025.
So there will be thoseopportunities.
But for 2026, you know, I waslooking at some of my portfolio
(11:51):
at, you know, w when are some ofmy uh notes coming due.
You know, I have a property thathas, you know, I was just
re-looking at it, and it's likethe DSCR is like 2.2.
Um, and we have a 3.5% interestrate that's good through 2027.
So I've you know, before Ireally was digging in, I was
(12:12):
getting a lot of calls on it andentertaining high offers, but uh
I think you know, for thatparticular property, uh I'm
gonna sit on it, continue to sitlike I'm not looking at it until
the end of 2026.
Before I was thinking, yeah,maybe I'll try to exit this at
the end of 2025 or beginning of2026, but why not keep holding
(12:34):
on to that property and letinterest rates come down and let
the market continue toappreciate and then go from
there, maybe refinance that andand sell it.
So for me, I'm I'm looking atwhat properties am I going to
try and sell and what propertiesam I am I holding on to.
SPEAKER_01 (12:49):
Yep, absolutely.
And I think just kind of on topof that, just thinking about Fed
cuts and stuff like that, thatwill naturally affect kind of
where cap rates continue tochange uh here in Northwest
Arkansas and and around thecountry.
And so that'll be just somethingto keep an eye out for.
There are a lot of uhpredictions out there that rates
(13:10):
may drop 50 basis points.
Um, I think that'd besignificant and uh could really
kind of change some things for alot of people.
Um but realistically, I thinkthe highest prediction is that
it'll it'll drop 25 basispoints.
But I I like the practice ofwhat you're talking about and
and really just underwritingdeal, continuing to underwrite
(13:30):
deals at today's rates and nothoping for you know tomorrow's
predictions.
Yeah, if it makes sense today,then that that's just gravy
right there.
SPEAKER_02 (13:37):
If if it does come down, or when it does come down,
that's just you know an extrabonus for you.
SPEAKER_01 (13:42):
Yep, absolutely.
But yeah, just as we as wecontinue to look at the end of
25 and and into 26, um, youknow, I think for anybody out
there, I think now's the time toreally put foot on the gas.
Um if you're if you're lookingfor something specific, make
sure everybody in your networkknows you're looking for it, um,
whether that be on social media,whether that be some sort of
(14:04):
other outlet, uh, word of mouthor email or however you want to
do it specifically.
I know that's a practice I'vebeen trying to put in
continuously, is that, hey, I'mlooking for two to 24 units in
Northwest Arkansas.
Um, and I Brian, I know a lot ofpeople when they think about
multifamily, they're thinkingabout Brian Wagers and and uh
and so that's what you want tocontinue to you continue to want
(14:26):
to be that guy and and or thatgal that that uh you know will
be at the forefront of those ofthose opportunities when they
come up because you can't beeverywhere every time.
And so even if you are a dealfinder, um you know some of your
biggest assets are gonna bebrokers or are gonna be other
people that are out in themarket looking for deals, and
and so any way that you can bein front of them and be a closer
(14:48):
and and be someone that takescare of other people, I think uh
the better is as we go into2026.
SPEAKER_02 (14:53):
So yeah, I I think even high level too, without
getting too nitty-gritty, I II'm looking at my systems and
what what what was work whatworked really well throughout
2025, what were someopportunities to improve on,
what can I be implementing in2026?
You know, everyone loves it.
You're I love I I'm a verygoal-oriented and goal, you
(15:15):
know, driven individual, youknow, which is great.
It happens at the end of theyear, but it's not a bad time to
start doing it now, like lookingat uh your goal like goals for
2026 and and even setting somegoals for the end of 20, like,
you know, I I would like toclose on two more existing
properties uh you know in 2025,and I would like to, you know,
(15:37):
do a develop, you know, at leastget a develop one more
development deal in the work.
So, you know, that's kind of mygoals for the end of 2025, is
close two more existing deals,you know, that five to a hundred
units, and then uh get a get adevelopment deal moving and
breaking ground.
SPEAKER_01 (15:55):
Love it.
Yeah, I think that's uh I'm Imean I'm very similar and and uh
super goal driven.
Love to kind of at least uhvisit that every end of the year
and and uh kind of where we wantto be at the end of next year
and and uh where we want to bein five years, ten years, and
what that looks like.
And so would encourage anybodyto continue to do the same,
(16:16):
especially if you're in realestate, and uh and then just
look back at those often, youknow, write them down every day
if that's something that worksfor you and or uh revisit them
quarterly even and uh and thenhave those in your corner that
encourage you towards that.
So but 2025 was uh you know, Ithink a really strong year for
Northwest Arkansas.
(16:37):
I think 2026, especially with umthe growth we're we're gonna
continue to have, will uh willcontinue to be strong here in
Northwest Arkansas.
And so if there areopportunities out there that
that make sense conservativelyat today's rates, um, you know,
I think we would Brian and Iboth would recommend that that
uh you struggle and consider andtry to jump on that.
SPEAKER_02 (16:58):
So yeah, and I think you know, we we still have a
quarter left in 2025, and we'llwe'll be hit probably having
another episode of uh uh closerto the end of the year, but to
really be forward thinking, youknow, now is the best time to be
you know forward thinking.
SPEAKER_01 (17:12):
Yep, absolutely.
Well, thanks again for listeningto uh NWA Investing Podcast.
We're uh we're we want tocontinue to bring y'all value,
we're kind of where we see it,and and uh we've got the RBS
skyline reports that will likelydrop sometime in the next few
weeks to month, and uh we'llquickly get together and get you
all the info on that and talkthrough really all the data from
(17:34):
the first half of 2025, and uhand then we've really got some
great guests coming up as welldown the pipeline and and uh for
the rest of 2025.
So continue to listen in, and ifthere's anything that we could
cover that you guys would liketo see, reach out um to our
Instagram or reach out to ouremails uh direct, and and we'd
love to talk through that.
(17:55):
So yeah, nwainvesting.com.
That's right.
Thanks again for listening, andwe'll see you soon.
SPEAKER_00 (18:00):
All right, thanks, guys.
Thanks, guys.
SPEAKER_01 (18:02):
Cool.
SPEAKER_00 (18:03):
Again, thank you guys for tuning in.
I'm gonna go ahead and uh listsome sponsors off here.
We're gonna start with WinstonePrivate Lending.
This episode is brought to youby Winstone Private Lending, one
of the top private and hardmoney lenders now serving
Northwest Arkansas.
Whether you need short-termcapital for flip, a bridge loan,
or creative financing, they'vegot you covered with very
(18:25):
flexible products to fit nearlyany deal, including 100%
financing.
What sets them apart is theirdeep expertise, fast response
times, and ability to thinkoutside of the box to help
investors like us close quicklyand efficiently.
If you're looking for a reallending partner, check out
Winstone Private Lending.
Link is in the show notes.
(18:47):
Our next sponsor is Advantage,Title, and Astro.
They're a local company, they dogreat work.
Specifically Kayla Phillips.
I can speak personally on thissponsor because I use Kayla for
all of my transactions.
Uh it's been two, three, fouryears now, and Kayla and I have
done a ton of deals.
We probably do between 65 to 80deals a year together, um, and
(19:10):
they do a great job.
The s the SOP, so systems andprocessing that they have over
Advantage Title is justincredible.
The clients love it.
They do a great job from startto end communicating.
When I give a deal to AdvantageTitle and Escrow, I know that
it's going to be taken care of.
There's no second guessing.
I almost am able to treat themlike a second transaction
(19:31):
coordinator to my transactioncoordinator that I already have.
I know that they're going tohandle the systems and processes
correctly.
As an agent, as a homeowner, asa buyer or seller, they do an
incredible job of handling atransaction and communicating
throughout the process.
They do a great job ofcommunication, especially Kayla
Phillips over there.
I would highly encourage you ifyou're looking to close on a
(19:55):
home, buy a home, if you're anagent listening, to use
Advantage Title Nascro,specifically Kayla Phillips.
So if you're going to reachKayla Best at 50131601, or you
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(20:17):
Advantage is A D V A N T A G ETitle.com.
Banks are about community, andCentury Bank of the Ozarks has
been your community bank for 131years.
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Since 1894.
They've been helping neighborsbuild homes, grow businesses,
(20:39):
and plan futures.
Because they're locally owned,your loan approval happens here,
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Visit their locations inFayetteville and Mountain Home,
Arkansas, as well asGainesville, Theodosia,
Bakersfield, and Ava, Missouri.
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decisions since 1894.
(21:00):
Member FDIC and Equal HousingLender.
If you enjoyed the show, makesure to give us a follow on your
favorite podcast platform so younever miss an update.
SPEAKER_02 (21:07):
Don't forget to connect with us on Instagram,
Facebook, and LinkedIn for morereal estate insights and behind
the scenes content.
SPEAKER_01 (21:13):
Have a question you want us to cover, send it our
way.
And if you're interested insponsoring the show, visit NWA
Investing.com to get in touch.
Thanks for listening, and we'llsee you next time.
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