One mistake I’ve made — and still catch myself making — is treating interviews like I’m the only one making the decision. I’m asking all the right questions: ✔️ What’s your background? ✔️ What’s your experience? ✔️ Are you qualified for the role? ✔️ Does the comp match? But I forget to ask: ❌ What’s important to you? ❌ What kind of career are you trying to build? ❌ What does your ideal company look like? That simple shift changes everything. If you don’t ask those questions up front, you risk hiring someone who doesn’t align long-term — not because they weren’t qualified, but because they had a different vision of what “winning” looked like. Give them space to interview you, too. Let them tell you what they value most — career growth, part-time stability, autonomy, mentorship, whatever. Then be honest: Can your company give them that? Long-term fit > short-term pain relief. Curious — how many of you ask this kind of stuff in your interviews? Or has anyone learned this lesson the hard way like I did?

As a multifamily investor and entrepreneur, be mindful of credit and debt. Credit Utilization: The Signal Lenders Watch Closely - Credit utilization measures how much of your available revolving credit you’re using at any given time. It’s one of the most influential components of your credit profile. Why It Matters: It accounts for 30% of your FICO score, second only to payment history, below 30% is considered healthy; below 10% is ideal for top-tier credit, and consistently using more than 50% of your available credit can signal financial strain and may lower your score by 50–100 points. Consumer Debt Management: The Practices That Keep You in Control - Debt management refers to how effectively you handle your credit cards, loans, and other obligations. Strong habits reduce financial stress and improve long-term credit outcomes. Core Practices: Monitor balances and due dates to avoid surprises and late payments, pay more than the minimum to reduce principal faster, and cut interest costs. Limit new debt—especially when utilization is already elevated—only for business purposes, not for consumption, and use support tools—such as budgeting systems or consolidation—when needed to regain control. How They Interact - Credit utilization and debt management are deeply interconnected: High utilization often reflects weak debt management, especially when balances roll over month after month, Strong debt management keeps utilization low, which strengthens your creditworthiness and reduces borrowing costs, and Timely payments remain non‑negotiable—even while working to lower utilization, you must pay at least the minimum on all accounts to avoid a 30‑day late mark, which can severely damage your score. The Bottom Line: Managing your debt wisely is the engine; low utilization is the outcome. Together, they form the foundation of a resilient credit profile and a healthier financial future.

Now that we are through Q1 of 2026, how are things looking for KC multifamily absorption and deliveries? The relationship between absorption and deliveries is a key one, along with "new starts." Absorption refers to the number of units that became occupied or vacant relative to the previous measurement. It is the net change in occupied units. If Kansas City had 100,000 occupied apartments as measured at the end of 2024 and 105,000 occupied apartments at the end of 2025, absorption would be 5,000 net units over that time frame. You can have negative absorption when the total occupied units goes down; 100,000 units occupied to 95,000 units occupied. In general, it is a reference point for demand in a market and can tell one side of the "what can we expect for occupancy in this MSA, county, or suburban district?" story. The other side of that story is told by deliveries. Deliveries refers to the number of completed new construction units that are ready to begin being leased and occupied over a given time frame. If there are 110,000 rentable apartments in a city at the end of 2024, and there are 117,000 rentable units at the end of 2025, this would mean that 7,000 new units have been added to that available supply over that 12-month time frame. Deliveries equal 7,000, or 6.4% of existing inventory (Deliveries % = Delivered Units / Initial Inventory). Absorption and deliveries are the supply and demand markers (along with many other variables that serve as leading and lagging indicators, but are still part of the same story) for multifamily in an MSA. If 5,000 units are delivered across a 12-month period and 5,000 units are absorbed, then occupancy rates will remain relatively stable for that time frame, all things being equal. If 10,000 units are delivered and only 5,000 are absorbed, then occupancy will trend down on average for that area because there was more new product added than there was immediate demand for. Usually when this happens, especially multiple quarters in a row, average rents will begin to stagnate or even decrease to facilitate more demand. Cheaper apartments means more people can afford them, which means more people will move into them instead of getting a mortgage or living in another city, which means occupancy rates will climb.

Recourse vs non-recourse debt is a crucial concept for multifamily investors and newer syndicators to understand. If you buy a 50-unit deal with a recourse loan and it goes sideways, you could lose the property and still owe the bank money. If you buy that same deal with a non-recourse loan and it fails, you lose the property, but the lender generally cannot come after your personal assets. That one distinction has massive implications for overall risk mitigation (or lack there of it) across your investment portfolio. Recourse Loans A recourse loan means you personally guarantee the debt. If the property cannot cover the loan balance, the lender can pursue your personal assets to make up the difference. Why lenders like it: • Lower risk to them • Often easier approval for smaller or newer sponsors • Sometimes slightly better pricing Why it is risky for you: • Your personal balance sheet is exposed • Higher psychological pressure • One bad deal can affect everything Non-Recourse Loans A non-recourse loan limits the lender’s recovery to the property itself, assuming no fraud or “bad boy” carveouts. Why sponsors prefer it: • Your personal assets are protected • Cleaner risk separation • More scalable for syndicators Why it can be harder: • Stronger deal metrics required • Experienced sponsorship often expected • May carry slightly stricter structure When each is typically used: Recourse is common in: • Smaller multifamily deals • Community bank financing • First or second deals for new operators • Bridge loans where lenders want extra security Non-recourse is common in: • Agency debt through Fannie Mae or Freddie Mac • Larger stabilized multifamily • Institutional or repeat sponsors • Deals with strong DSCR and occupancy For syndicators, this decision is not just about gunning for lower rates or closing the deal, it's about risk allocation. Are you comfortable tying your personal net worth to the outcome? Or are you building a structure where risk is primarily contained within the asset?

Cost Segregation in Multifamily: When It Makes Sense and When It Doesn’t If you buy a $10M apartment building, how much depreciation should you get in year one? For many investors, the answer depends on cost segregation and bonus depreciation. You’ll often hear people say cost segregation creates massive tax savings in real estate. And in the right situations, it absolutely can. But it’s also frequently misunderstood. Cost segregation doesn’t create new deductions. It simply changes when the IRS allows you to take them. What Cost Segregation Actually Is By default, residential real estate depreciates over 27.5 years. A cost segregation study analyzes the property and separates parts of the building that the IRS allows to depreciate faster. For example: 5-year property • Appliances • Certain fixtures • Carpeting 7-year property • Some equipment and removable property 15-year property • Land improvements like parking lots, sidewalks, and landscaping Instead of treating the entire building as one asset, the study identifies pieces of the property that can be depreciated on shorter schedules. Cost segregation essentially separates portions of the property that the IRS allows to depreciate faster than the standard 27.5-year schedule. Many investors confuse cost segregation with bonus depreciation, but they serve different roles. Cost segregation identifies and qualifies the components. Bonus depreciation determines how quickly those qualified components can be deducted. The study itself doesn’t create deductions. It simply allows investors to take more depreciation earlier in the ownership period. With 100% bonus depreciation active, those components can often be fully expensed in year one. Even without bonus depreciation, these shorter-life assets still depreciate faster because they use accelerated methods like the 200% declining balance for 5- and 7-year property and 150% declining balance for 15-year property, which front-loads depreciation into the early years.