\n
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\u2019m being honest, this past year taught me more than any spreadsheet ever could.<\/p>\n
It was a challenging year in real estate. It was a revealing year in business. It was a grounding year at home.<\/p>\n
Some years remind you of your strengths. Some remind you that you\u2019re human. This year definitely did both.<\/p>\n
And as I look toward 2026, there are a few key shifts I\u2019m making, not because the year was perfect, but because it wasn\u2019t. These shifts were earned the hard way, and I think they\u2019ll serve you too.<\/p>\n
Here\u2019s what I\u2019m taking with me into the new year.<\/p>\n
Disclaimer<\/strong><\/mark>: 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.<\/h6>\nShift #1: Debt Matters More Than the Pro Forma<\/strong><\/h2>\nIf you were anywhere near real estate this year, you felt it. Debt became the make-or-break variable in almost every deal.<\/p>\n
The projects that struggled didn\u2019t 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\u2026 all of that got exposed very quickly.<\/p>\n
Meanwhile, deals with conservative, boring, fixed-rate debt quietly kept chugging along.<\/p>\n
In 2025, I\u2019m focusing heavily on debt structure: longer maturities, hedged rates, operators who underwrite conservatively and think three steps ahead.<\/p>\n
Projected returns are great. But debt is what determines whether you survive long enough to realize them.<\/p>\n
Shift #2: Treat Liquidity Like a Strategy, Not an Afterthought<\/strong><\/h2>\nThis might be the biggest mindset shift I had.<\/p>\n
I used to think having too much cash around was a horrible strategy. \u201cCash is trash\u201d is something you might\u2019ve heard before.<\/p>\n
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.<\/p>\n
I used to treat liquidity like a \u201cnice to have.\u201d Now I see it as a core part of my investment plan.<\/p>\n
Heading into 2026, I\u2019m 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.<\/p>\n
Your future self will never<\/em> complain about having too much optionality.<\/p>\nShift #3: Diversify Intentionally, Not Randomly<\/strong><\/h2>\nReal estate will always be one of my favorite asset classes, but this was the year diversification proved its worth.<\/p>\n
Mineral rights. Precious metals. Different operators in different markets with different philosophies.<\/p>\n
Not because I was chasing shiny objects, but because each asset behaved differently when the market shifted. Watching that play out was incredibly valuable.<\/p>\n
The lesson was simple:<\/p>\n
\nDiversification isn\u2019t a luxury anymore, it\u2019s survival.<\/strong><\/p>\n<\/blockquote>\nIn 2025, I\u2019m continuing to build a portfolio that isn\u2019t dependent on any single outcome, operator, or economic environment.<\/p>\n
Shift #4: Bet Bigger on People, Not Just Deals<\/strong><\/h2>\nThis year made it very clear that the operator matters more than the opportunity.<\/p>\n
I watched people step up in unexpected ways \u2013\u00a0 communicating clearly, solving problems, staying optimistic but realistic. I also watched others go quiet, disappear, or avoid tough conversations.<\/p>\n
A great operator can rescue a struggling deal. A weak operator can derail a perfectly good one.<\/p>\n
So next year, I\u2019m doubling down on relationships. On trust. On alignment. On communication. If those things aren\u2019t there, the deal doesn\u2019t matter.<\/p>\n
Shift #5: Protect Time and Presence Like Any Other Investment<\/strong><\/h2>\nThis one came from home.<\/p>\n
At one point, my kids told me I was on my phone too much. And hearing that\u2026 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.<\/p>\n
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.<\/p>\n
My wife doesn\u2019t care about my pro formas. My kids don\u2019t care about my returns.They care that I\u2019m there.<\/em><\/p>\nGoing into 2026, I\u2019m continuing to protect my time the same way I protect my money \u2014 intentionally.<\/p>\n
\n\n![\"\"](\"https:\/\/passiveincomemd.com\/wp-content\/uploads\/2024\/04\/7-Steps-To-Financial-Freedom-v4a-.jpg\")
<\/a><\/figure>\n\nSubscribe to receive the 7 Steps you can follow to achieve Financial Freedom<\/strong><\/p>\nIf financial freedom is your goal, there\u2019s no better time to get started than right now.<\/p>\n
Unlock actionable steps that you can take every day to fine-tune your goals, discover your interests, and avoid costly mistakes on your financial freedom journey.<\/p>\n<\/div>\n<\/div>\n
\nPutting It All Together<\/strong><\/h2>\nHere\u2019s the short version of my 2026 playbook:<\/p>\n
\n- Debt over projections.<\/li>\n
- Liquidity over speed.<\/li>\n
- Diversification over concentration.<\/li>\n
- People over pro formas.<\/li>\n
- Presence over productivity.<\/li>\n<\/ul>\n
This past year wasn\u2019t easy, but it was clarifying. And hard years tend to be the ones that prepare you for what\u2019s next.<\/p>\n
If your year had some bumps, you\u2019re not alone. And you\u2019re not behind. You\u2019re just becoming the version of yourself that the next chapter requires.<\/p>\n
So here\u2019s my question for you as we head into 2026:<\/p>\n
What\u2019s the one shift you\u2019re making this year \u2014 financially, professionally, or personally \u2014 that will move you toward the life you actually want?<\/p>\n
I\u2019d love to hear.<\/p>\n
Were these helpful in any way? Make sure to sign up for the newsletter<\/strong><\/a> and <\/strong>join the Passive Income Docs Facebook Group<\/a><\/strong> for more physician-tailored content.<\/em><\/p>\n
\nPeter Kim, MD is the founder of <\/em>Passive Income MD<\/em><\/a>, the creator of <\/em>Passive Real Estate Academy<\/em><\/a>, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the <\/em>Passive Income Doc Facebook Group<\/em><\/a>.<\/em><\/p>\nFurther Reading<\/strong><\/h2>\n<\/p><\/div>\n
If you were anywhere near real estate this year, you felt it. Debt became the make-or-break variable in almost every deal.<\/p>\n
The projects that struggled didn\u2019t 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\u2026 all of that got exposed very quickly.<\/p>\n
Meanwhile, deals with conservative, boring, fixed-rate debt quietly kept chugging along.<\/p>\n
In 2025, I\u2019m focusing heavily on debt structure: longer maturities, hedged rates, operators who underwrite conservatively and think three steps ahead.<\/p>\n
Projected returns are great. But debt is what determines whether you survive long enough to realize them.<\/p>\n
Shift #2: Treat Liquidity Like a Strategy, Not an Afterthought<\/strong><\/h2>\nThis might be the biggest mindset shift I had.<\/p>\n
I used to think having too much cash around was a horrible strategy. \u201cCash is trash\u201d is something you might\u2019ve heard before.<\/p>\n
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.<\/p>\n
I used to treat liquidity like a \u201cnice to have.\u201d Now I see it as a core part of my investment plan.<\/p>\n
Heading into 2026, I\u2019m 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.<\/p>\n
Your future self will never<\/em> complain about having too much optionality.<\/p>\nShift #3: Diversify Intentionally, Not Randomly<\/strong><\/h2>\nReal estate will always be one of my favorite asset classes, but this was the year diversification proved its worth.<\/p>\n
Mineral rights. Precious metals. Different operators in different markets with different philosophies.<\/p>\n
Not because I was chasing shiny objects, but because each asset behaved differently when the market shifted. Watching that play out was incredibly valuable.<\/p>\n
The lesson was simple:<\/p>\n
\nDiversification isn\u2019t a luxury anymore, it\u2019s survival.<\/strong><\/p>\n<\/blockquote>\nIn 2025, I\u2019m continuing to build a portfolio that isn\u2019t dependent on any single outcome, operator, or economic environment.<\/p>\n
Shift #4: Bet Bigger on People, Not Just Deals<\/strong><\/h2>\nThis year made it very clear that the operator matters more than the opportunity.<\/p>\n
I watched people step up in unexpected ways \u2013\u00a0 communicating clearly, solving problems, staying optimistic but realistic. I also watched others go quiet, disappear, or avoid tough conversations.<\/p>\n
A great operator can rescue a struggling deal. A weak operator can derail a perfectly good one.<\/p>\n
So next year, I\u2019m doubling down on relationships. On trust. On alignment. On communication. If those things aren\u2019t there, the deal doesn\u2019t matter.<\/p>\n
Shift #5: Protect Time and Presence Like Any Other Investment<\/strong><\/h2>\nThis one came from home.<\/p>\n
At one point, my kids told me I was on my phone too much. And hearing that\u2026 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.<\/p>\n
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.<\/p>\n
My wife doesn\u2019t care about my pro formas. My kids don\u2019t care about my returns.They care that I\u2019m there.<\/em><\/p>\nGoing into 2026, I\u2019m continuing to protect my time the same way I protect my money \u2014 intentionally.<\/p>\n
\n\n<\/a><\/figure>\n\nSubscribe to receive the 7 Steps you can follow to achieve Financial Freedom<\/strong><\/p>\nIf financial freedom is your goal, there\u2019s no better time to get started than right now.<\/p>\n
Unlock actionable steps that you can take every day to fine-tune your goals, discover your interests, and avoid costly mistakes on your financial freedom journey.<\/p>\n<\/div>\n<\/div>\n
\nPutting It All Together<\/strong><\/h2>\nHere\u2019s the short version of my 2026 playbook:<\/p>\n
\n- Debt over projections.<\/li>\n
- Liquidity over speed.<\/li>\n
- Diversification over concentration.<\/li>\n
- People over pro formas.<\/li>\n
- Presence over productivity.<\/li>\n<\/ul>\n
This past year wasn\u2019t easy, but it was clarifying. And hard years tend to be the ones that prepare you for what\u2019s next.<\/p>\n
If your year had some bumps, you\u2019re not alone. And you\u2019re not behind. You\u2019re just becoming the version of yourself that the next chapter requires.<\/p>\n
So here\u2019s my question for you as we head into 2026:<\/p>\n
What\u2019s the one shift you\u2019re making this year \u2014 financially, professionally, or personally \u2014 that will move you toward the life you actually want?<\/p>\n
I\u2019d love to hear.<\/p>\n
Were these helpful in any way? Make sure to sign up for the newsletter<\/strong><\/a> and <\/strong>join the Passive Income Docs Facebook Group<\/a><\/strong> for more physician-tailored content.<\/em><\/p>\n
\nPeter Kim, MD is the founder of <\/em>Passive Income MD<\/em><\/a>, the creator of <\/em>Passive Real Estate Academy<\/em><\/a>, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the <\/em>Passive Income Doc Facebook Group<\/em><\/a>.<\/em><\/p>\nFurther Reading<\/strong><\/h2>\n<\/p><\/div>\n
Shift #3: Diversify Intentionally, Not Randomly<\/strong><\/h2>\nReal estate will always be one of my favorite asset classes, but this was the year diversification proved its worth.<\/p>\n
Mineral rights. Precious metals. Different operators in different markets with different philosophies.<\/p>\n
Not because I was chasing shiny objects, but because each asset behaved differently when the market shifted. Watching that play out was incredibly valuable.<\/p>\n
The lesson was simple:<\/p>\n
\nDiversification isn\u2019t a luxury anymore, it\u2019s survival.<\/strong><\/p>\n<\/blockquote>\nIn 2025, I\u2019m continuing to build a portfolio that isn\u2019t dependent on any single outcome, operator, or economic environment.<\/p>\n
Shift #4: Bet Bigger on People, Not Just Deals<\/strong><\/h2>\nThis year made it very clear that the operator matters more than the opportunity.<\/p>\n
I watched people step up in unexpected ways \u2013\u00a0 communicating clearly, solving problems, staying optimistic but realistic. I also watched others go quiet, disappear, or avoid tough conversations.<\/p>\n
A great operator can rescue a struggling deal. A weak operator can derail a perfectly good one.<\/p>\n
So next year, I\u2019m doubling down on relationships. On trust. On alignment. On communication. If those things aren\u2019t there, the deal doesn\u2019t matter.<\/p>\n
Shift #5: Protect Time and Presence Like Any Other Investment<\/strong><\/h2>\nThis one came from home.<\/p>\n
At one point, my kids told me I was on my phone too much. And hearing that\u2026 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.<\/p>\n
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.<\/p>\n
My wife doesn\u2019t care about my pro formas. My kids don\u2019t care about my returns.They care that I\u2019m there.<\/em><\/p>\nGoing into 2026, I\u2019m continuing to protect my time the same way I protect my money \u2014 intentionally.<\/p>\n
\n\n<\/a><\/figure>\n\nSubscribe to receive the 7 Steps you can follow to achieve Financial Freedom<\/strong><\/p>\nIf financial freedom is your goal, there\u2019s no better time to get started than right now.<\/p>\n
Unlock actionable steps that you can take every day to fine-tune your goals, discover your interests, and avoid costly mistakes on your financial freedom journey.<\/p>\n<\/div>\n<\/div>\n
\nPutting It All Together<\/strong><\/h2>\nHere\u2019s the short version of my 2026 playbook:<\/p>\n
\n- Debt over projections.<\/li>\n
- Liquidity over speed.<\/li>\n
- Diversification over concentration.<\/li>\n
- People over pro formas.<\/li>\n
- Presence over productivity.<\/li>\n<\/ul>\n
This past year wasn\u2019t easy, but it was clarifying. And hard years tend to be the ones that prepare you for what\u2019s next.<\/p>\n
If your year had some bumps, you\u2019re not alone. And you\u2019re not behind. You\u2019re just becoming the version of yourself that the next chapter requires.<\/p>\n
So here\u2019s my question for you as we head into 2026:<\/p>\n
What\u2019s the one shift you\u2019re making this year \u2014 financially, professionally, or personally \u2014 that will move you toward the life you actually want?<\/p>\n
I\u2019d love to hear.<\/p>\n
Were these helpful in any way? Make sure to sign up for the newsletter<\/strong><\/a> and <\/strong>join the Passive Income Docs Facebook Group<\/a><\/strong> for more physician-tailored content.<\/em><\/p>\n
\nPeter Kim, MD is the founder of <\/em>Passive Income MD<\/em><\/a>, the creator of <\/em>Passive Real Estate Academy<\/em><\/a>, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the <\/em>Passive Income Doc Facebook Group<\/em><\/a>.<\/em><\/p>\nFurther Reading<\/strong><\/h2>\n<\/p><\/div>\n
Diversification isn\u2019t a luxury anymore, it\u2019s survival.<\/strong><\/p>\n<\/blockquote>\n In 2025, I\u2019m continuing to build a portfolio that isn\u2019t dependent on any single outcome, operator, or economic environment.<\/p>\n This year made it very clear that the operator matters more than the opportunity.<\/p>\n I watched people step up in unexpected ways \u2013\u00a0 communicating clearly, solving problems, staying optimistic but realistic. I also watched others go quiet, disappear, or avoid tough conversations.<\/p>\n A great operator can rescue a struggling deal. A weak operator can derail a perfectly good one.<\/p>\n So next year, I\u2019m doubling down on relationships. On trust. On alignment. On communication. If those things aren\u2019t there, the deal doesn\u2019t matter.<\/p>\n This one came from home.<\/p>\n At one point, my kids told me I was on my phone too much. And hearing that\u2026 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.<\/p>\n 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.<\/p>\n My wife doesn\u2019t care about my pro formas. My kids don\u2019t care about my returns.They care that I\u2019m there.<\/em><\/p>\n Going into 2026, I\u2019m continuing to protect my time the same way I protect my money \u2014 intentionally.<\/p>\n Subscribe to receive the 7 Steps you can follow to achieve Financial Freedom<\/strong><\/p>\n If financial freedom is your goal, there\u2019s no better time to get started than right now.<\/p>\n Unlock actionable steps that you can take every day to fine-tune your goals, discover your interests, and avoid costly mistakes on your financial freedom journey.<\/p>\n<\/div>\n<\/div>\n Here\u2019s the short version of my 2026 playbook:<\/p>\n This past year wasn\u2019t easy, but it was clarifying. And hard years tend to be the ones that prepare you for what\u2019s next.<\/p>\n If your year had some bumps, you\u2019re not alone. And you\u2019re not behind. You\u2019re just becoming the version of yourself that the next chapter requires.<\/p>\n So here\u2019s my question for you as we head into 2026:<\/p>\n What\u2019s the one shift you\u2019re making this year \u2014 financially, professionally, or personally \u2014 that will move you toward the life you actually want?<\/p>\n I\u2019d love to hear.<\/p>\n Were these helpful in any way? Make sure to sign up for the newsletter<\/strong><\/a> and <\/strong>join the Passive Income Docs Facebook Group<\/a><\/strong> for more physician-tailored content.<\/em><\/p>\n Peter Kim, MD is the founder of <\/em>Passive Income MD<\/em><\/a>, the creator of <\/em>Passive Real Estate Academy<\/em><\/a>, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the <\/em>Passive Income Doc Facebook Group<\/em><\/a>.<\/em><\/p>\nShift #4: Bet Bigger on People, Not Just Deals<\/strong><\/h2>\n
Shift #5: Protect Time and Presence Like Any Other Investment<\/strong><\/h2>\n
\n<\/a><\/figure>\n
\nPutting It All Together<\/strong><\/h2>\n
\n
\nFurther Reading<\/strong><\/h2>\n<\/p><\/div>\n