Each December, I take a breath, step again, and actually have a look at the yr. Not simply the numbers or the offers, however who I grew to become via all of it. And if I’m being sincere, this previous yr taught me greater than any spreadsheet ever may.
It was a difficult yr in actual property. It was a revealing yr in enterprise. It was a grounding yr at dwelling.
Some years remind you of your strengths. Some remind you that you just’re human. This yr undoubtedly did each.
And as I look towards 2026, there are a number of key shifts I’m making, not as a result of the yr was excellent, however as a result of it wasn’t. These shifts had been earned the laborious method, and I feel they’ll serve you too.
Right here’s what I’m taking with me into the brand new yr.
Disclaimer: This text is for informational and academic functions solely and doesn’t represent monetary, authorized, or funding recommendation. Any funding entails danger, and it is best to seek the advice of your monetary advisor, legal professional, or CPA earlier than making any funding choices. Previous efficiency shouldn’t be indicative of future outcomes. The writer and related entities disclaim any legal responsibility for loss incurred because of the usage of this materials or its content material.
Shift #1: Debt Issues Extra Than the Professional Forma
Should you had been anyplace close to actual property this yr, you felt it. Debt grew to become the make-or-break variable in virtually each deal.
The tasks that struggled didn’t essentially have unhealthy fundamentals. A lot of them have nice occupancy charges. They only had the flawed debt on the flawed time. Floating charges, brief maturities, aggressive assumptions… all of that bought uncovered in a short time.
In the meantime, offers with conservative, boring, fixed-rate debt quietly stored chugging alongside.
In 2025, I’m focusing closely on debt construction: longer maturities, hedged charges, operators who underwrite conservatively and assume three steps forward.
Projected returns are nice. However debt is what determines whether or not you survive lengthy sufficient to understand them.
Shift #2: Deal with Liquidity Like a Technique, Not an Afterthought
This could be the largest mindset shift I had.
I used to assume having an excessive amount of money round was a horrible technique. “Money is trash” is one thing you may’ve heard earlier than.
However the fact is, money / liquidity gave me confidence this yr. It helped me keep calm when issues bought robust, and it gave me the power to benefit from alternatives as a substitute of reacting in concern.
I used to deal with liquidity like a “good to have.” Now I see it as a core a part of my funding plan.
Heading into 2026, I’m holding bigger reserves, slowing down my preliminary deployment, and giving myself room to breathe. Inflation may eat a little bit at your money, however illiquidity can value you much more.
Your future self will by no means complain about having an excessive amount of optionality.
Shift #3: Diversify Deliberately, Not Randomly
Actual property will all the time be one in every of my favourite asset courses, however this was the yr diversification proved its value.
Mineral rights. Valuable metals. Completely different operators in several markets with completely different philosophies.
Not as a result of I used to be chasing shiny objects, however as a result of every asset behaved in another way when the market shifted. Watching that play out was extremely useful.
The lesson was easy:
Diversification isn’t a luxurious anymore, it’s survival.
In 2025, I’m persevering with to construct a portfolio that isn’t depending on any single end result, operator, or financial setting.
Shift #4: Wager Larger on Individuals, Not Simply Offers
This yr made it very clear that the operator issues greater than the chance.
I watched folks step up in surprising methods – speaking clearly, fixing issues, staying optimistic however life like. I additionally watched others go quiet, disappear, or keep away from robust conversations.
An amazing operator can rescue a struggling deal. A weak operator can derail a wonderfully good one.
So subsequent yr, I’m doubling down on relationships. On belief. On alignment. On communication. If these issues aren’t there, the deal doesn’t matter.
Shift #5: Shield Time and Presence Like Any Different Funding
This one got here from dwelling.
At one level, my youngsters informed me I used to be on my cellphone an excessive amount of. And listening to that… it hit me more durable than any funding loss. As a result of I mentioned I used to be doing this for my youngsters, nevertheless it was taking away time from them.
It compelled me to decelerate, hear, and be current. We made a dedication to take 10 household journeys this yr, some large, some small, all significant. These moments matter extra to me than something I did professionally.
My spouse doesn’t care about my professional formas. My youngsters don’t care about my returns.They care that I’m there.
Going into 2026, I’m persevering with to guard my time the identical method I shield my cash — deliberately.
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Placing It All Collectively
Right here’s the brief model of my 2026 playbook:
- Debt over projections.
- Liquidity over velocity.
- Diversification over focus.
- Individuals over professional formas.
- Presence over productiveness.
This previous yr wasn’t simple, nevertheless it was clarifying. And laborious years are usually those that put together you for what’s subsequent.
In case your yr had some bumps, you’re not alone. And also you’re not behind. You’re simply turning into the model of your self that the following chapter requires.
So right here’s my query for you as we head into 2026:
What’s the one shift you’re making this yr — financially, professionally, or personally — that may transfer you towards the life you really need?
I’d love to listen to.
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Peter Kim, MD is the founding father of Passive Earnings MD, the creator of Passive Actual Property Academy, and presents weekly training via his Monday podcast, the Passive Earnings MD Podcast. Be part of our neighborhood on the Passive Earnings Doc Fb Group.
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