Beyond the Headlines: Unpacking the OBBBA’s Impact on Investors

October 14, 2025June 12, 2025 by Break of Day Capital

💡 Summary: The “One Big Beautiful Bill Act” (OBBBA) introduces major changes affecting investors, including Section 899’s retaliatory tax on foreign investors, elimination of the PCAOB, higher excise taxes on private foundations, and the reinstatement of 100% bonus depreciation. These provisions could impact foreign capital flows, audit quality, philanthropic funding, and capital investment strategies. Investors … Read more

Unlocking Tax Benefits Through Real Estate Professional Status and Material Participation

October 20, 2025March 3, 2025 by Break of Day Capital

💡 Summary: Real Estate Professional Status (REPS) allows investors to convert rental losses from passive to non-passive, enabling them to offset W-2 or business income. By meeting the 750-hour and “more time in real estate” requirements, and combining this with material participation rules—or leveraging syndication exceptions—investors can maximize tax benefits. In particular, REPS enhances the … Read more

Understanding and Evaluating Preferred Equity Investments

October 17, 2025May 31, 2024 by Break of Day Capital

💡 Summary: Preferred equity is a solid investment strategy for those seeking stable, predictable income with less volatility than stocks and higher returns than money market accounts. It provides priority in the capital stack, ensuring preferred returns before common equity distributions. This method is appealing for conservative investors or those looking for more risk-adjusted returns. … Read more

How to Invest in a Volatile Economic Climate

October 17, 2025November 13, 2023 by Break of Day Capital

💡 Summary: The current market conditions, marked by rising interest rates and disruptions in capital markets, are creating significant opportunities to acquire commercial real estate at favorable prices. Multifamily properties remain a resilient investment class, offering a hedge against inflation. Partnering with experienced sponsors and selecting the right investment structure, such as closed-end funds, can … Read more

Peter Linneman – 2023 Economic Outlook

October 20, 2025April 27, 2023 by Break of Day Capital

Multifamily 2023 economic outlook with Peter Linneman, best real estate podcast, real estate investing podcast

💡 Summary: Economist Peter Linneman predicts that capital markets for multifamily investing will recover in the second half of 2023 as banks resume lending and investor confidence returns. He expects cap rates to decline as capital flows back, while limited new construction and strong housing demand support steady NOI growth. Despite recent rate hikes, Linneman … Read more

Investors Suffer Loss From Aggressive Apartment Syndicator

April 27, 2023April 10, 2023 by Break of Day Capital

In our last blog, Evaluating the Sponsor, we mentioned that there will likely be syndicators who will be forced to leave the business. Unfortunately, it has started with the recent announcement of the $229MM multifamily foreclosure in Houston, TX, and there will likely be more to come. While details are still coming out, we believe … Read more

How do you Evaluate the Sponsor?

October 20, 2025March 30, 2023 by Break of Day Capital

💡 Summary: In today’s volatile market, choosing the right multifamily sponsor is critical to mitigating risk and achieving long-term success. Investors should prioritize operators with proven track records, sufficient assets under management, and experience navigating past downturns like the 2008 financial crisis. Evaluate financial stability, communication practices, transparency, and team structure, and verify credibility through … Read more

Top 5 Insights for Investors

October 20, 2025February 20, 2023 by Break of Day Capital

💡 Summary: Gary Lipsky, CEO of Break of Day Capital, outlines five key strategies for successful real estate investing in 2023: be conservative with underwriting, understand your local market, manage debt wisely, invest in workforce housing, and partner with experienced professionals. By focusing on risk management, informed decision-making, and long-term stability, investors can navigate a … Read more

2023 Real Estate Market Outlook

October 20, 2025January 30, 2023 by Break of Day Capital

Looking at the 2023 real estate market through our crystal ball - Economic Outlook for 2023

💡 Summary: Macro signals point to disinflation and a potential recession, and some multifamily operators are under pressure from higher debt costs. Break of Day Capital is selectively acquiring from motivated sellers using conservative underwriting to target superior risk-adjusted returns. For passive investors, multifamily syndications in growth markets remain a resilient, inflation-hedging approach when managed … Read more

Single Family Homes vs. Multifamily. Which Investing Strategy is Right for You?

October 20, 2025September 10, 2021 by Break of Day Capital

Single Family Home vs. Multifamily Investments; Beginning as a real estate investor

💡 Summary: Choosing between single family and multifamily investing depends on your goals, capital, and desired involvement. Single family homes are easier to enter and sell but offer lower cash flow and higher vacancy risk. Multifamily properties provide stronger, more stable income and the ability to force appreciation through increased NOI, though they require more … Read more