Every December, I take a breath, step back, and really look at the year. Not just the numbers or the deals, but who I became through it all. And if I’m being honest, this past year taught me more than any spreadsheet ever could.
It was a challenging year in real estate. It was a revealing year in business. It was a grounding year at home.
Some years remind you of your strengths. Some remind you that you’re human. This year definitely did both.
And as I look toward 2026, there are a few key shifts I’m making, not because the year was perfect, but because it wasn’t. These shifts were earned the hard way, and I think they’ll serve you too.
Here’s what I’m taking with me into the new year.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial, legal, or investment advice. Any investment involves risk, and you should consult your financial advisor, attorney, or CPA before making any investment decisions. Past performance is not indicative of future results. The author and associated entities disclaim any liability for loss incurred as a result of the use of this material or its content.
Shift #1: Debt Matters More Than the Pro Forma
If you were anywhere near real estate this year, you felt it. Debt became the make-or-break variable in almost every deal.
The projects that struggled didn’t necessarily have bad fundamentals. Many of them have great occupancy rates. They just had the wrong debt at the wrong time. Floating rates, short maturities, aggressive assumptions… all of that got exposed very quickly.
Meanwhile, deals with conservative, boring, fixed-rate debt quietly kept chugging along.
In 2025, I’m focusing heavily on debt structure: longer maturities, hedged rates, operators who underwrite conservatively and think three steps ahead.
Projected returns are great. But debt is what determines whether you survive long enough to realize them.
Shift #2: Treat Liquidity Like a Strategy, Not an Afterthought
This might be the biggest mindset shift I had.
I used to think having too much cash around was a horrible strategy. “Cash is trash” is something you might’ve heard before.
But the truth is, cash / liquidity gave me confidence this year. It helped me stay calm when things got tough, and it gave me the ability to take advantage of opportunities instead of reacting in fear.
I used to treat liquidity like a “nice to have.” Now I see it as a core part of my investment plan.
Heading into 2026, I’m holding larger reserves, slowing down my initial deployment, and giving myself room to breathe. Inflation might eat a little at your cash, but illiquidity can cost you far more.
Your future self will never complain about having too much optionality.
Shift #3: Diversify Intentionally, Not Randomly
Real estate will always be one of my favorite asset classes, but this was the year diversification proved its worth.
Mineral rights. Precious metals. Different operators in different markets with different philosophies.
Not because I was chasing shiny objects, but because each asset behaved differently when the market shifted. Watching that play out was incredibly valuable.
The lesson was simple:
Diversification isn’t a luxury anymore, it’s survival.
In 2025, I’m continuing to build a portfolio that isn’t dependent on any single outcome, operator, or economic environment.
Shift #4: Bet Bigger on People, Not Just Deals
This year made it very clear that the operator matters more than the opportunity.
I watched people step up in unexpected ways – communicating clearly, solving problems, staying optimistic but realistic. I also watched others go quiet, disappear, or avoid tough conversations.
A great operator can rescue a struggling deal. A weak operator can derail a perfectly good one.
So next year, I’m doubling down on relationships. On trust. On alignment. On communication. If those things aren’t there, the deal doesn’t matter.
Shift #5: Protect Time and Presence Like Any Other Investment
This one came from home.
At one point, my kids told me I was on my phone too much. And hearing that… it hit me harder than any investment loss. Because I said I was doing this for my kids, but it was taking away time from them.
It forced me to slow down, listen, and be present. We made a commitment to take 10 family trips this year, some big, some small, all meaningful. Those moments matter more to me than anything I did professionally.
My wife doesn’t care about my pro formas. My kids don’t care about my returns.They care that I’m there.
Going into 2026, I’m continuing to protect my time the same way I protect my money — intentionally.
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Putting It All Together
Here’s the short version of my 2026 playbook:
- Debt over projections.
- Liquidity over speed.
- Diversification over concentration.
- People over pro formas.
- Presence over productivity.
This past year wasn’t easy, but it was clarifying. And hard years tend to be the ones that prepare you for what’s next.
If your year had some bumps, you’re not alone. And you’re not behind. You’re just becoming the version of yourself that the next chapter requires.
So here’s my question for you as we head into 2026:
What’s the one shift you’re making this year — financially, professionally, or personally — that will move you toward the life you actually want?
I’d love to hear.
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Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.
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