January 2026 JANUARY 2026 | ISSUE NO. 26
NEWSLETTER
OFFICIAL LOCAL NEWSLETTER OF YOUR LOCAL REAL ESTATE INVESTOR ASSOCIATION
NEWS INSIDE: ARE YOU READY FOR THE SHIFT? Lessons learned in 2025, and where to go in the new year
RENTING PERSONAL PROPERTY Key points about renting and tax implications
REDFIN’S 2026 PREDICTIONS 11 predictions for your new year
A Fresh Year. A Clear Vision. A Stronger Investing Future. A new year brings a fresh reset—and with it, new opportunities to grow, pivot, and level up your real estate investing business. Whether 2026 is your very first year investing or the year you refine your strategy and scale, REIA is here to help you move forward with confidence, clarity, and a strong community behind you. In this month’s newsletter, we’re reflecting on the lessons 2025 taught us, exploring predictions for the year ahead, and sharing practical tips you can apply to your investing business right now. Use this issue as a moment to reset your goals, sharpen your focus, and take intentional steps toward making 2026 your most impactful year yet.
Note: This newsletter contains a few affiliate links. If you click, and purchase, we may receive a small commission at no extra cost to you.
Milwaukee Real Estate Is About to Shift—Are You Ready for What’s Coming? If you’re planning to invest in 2026 without understanding what happened in 2025—or without a clear view of where the market is heading—you’re already at a disadvantage. The reality? Milwaukee’s market is shifting fast. National headlines and online predictions only tell part of the story. To make smart decisions, you need local insight from people who are actively investing here. That’s exactly what you’ll get at our State of the Union Monthly Meeting. This event brings together two of Milwaukee’s top real estate experts, each with a unique perspective on the market:
Speaker 1: The 2025 Recap — What Really Happened Our first speaker will break down the numbers behind last year’s market. We’re talking actual Milwaukee data—not broad national trends. You’ll see which neighborhoods gained momentum, where inventory shifted, and the opportunities many investors missed. Why it matters: Understanding the past is critical to preparing for the future. By knowing where the market performed unexpectedly well—or poorly—you can avoid repeating mistakes, spot undervalued properties, and position yourself to capitalize on trends before others notice.
Speaker 2: The 2026 Forecast — Preparing for the Next Market Shift Next, a local expert will take the stage to look ahead. They’ll share predictions for the coming year, including pricing trends, competition, and demand across the city. Most importantly, they’ll reveal what top investors are doing now to get ahead of the curve. Why it matters: The market rewards those who are prepared, not those who react. By understanding what’s coming, you can make confident investment decisions, target the right properties, and build relationships with the people who influence the deals in Milwaukee.
A Special Thank You to Our Beer Sponsor
Upcoming Events
JOIN IN WITH SOME LOCAL EVENTS!
JAN 10
Online Masterclass: The 2026 Real Estate Investors Thrival Guide
JAN 13
Main Meeting: Annual State of the Union
JAN 14
Commercial Corner
JAN 21
Investor Breakfast Club
JAN 24
Online Masterclass: The Private Lender’s Thrival Guide
JAN 29
W.I.N.G.S. Luncheon
FEB 10
Main Meeting: The Deal Finder’s Blueprint
Dave Graf | 920-203-6087 | dave@gsifoundations.com
Jodi Graf | 414-395-5478 | jgraf@premierpointrealty.com
Book of the Month
414-276-7378 | membership@aasew.org
Dan Farsht | 262-208-4708 | info@reiahardmoney.com
Taylor Rens | 414-296-6225 | taylor.rens@zrlaywers.com
John Newland | 414-852-0921 jnewland@terranova-realestate.com
Scan to see all of our fabulous vendors!
Milwaukee REIA Vendor Highlight MGM PRIVATE CAPITAL, LLC (Milwaukee’s Good Money) is a full service and self-funded private/hard money lending company providing fast and flexible financing for residential and commercial investment real estate deals. We are currently lending in Southeastern Wisconsin and headquartered at the Village of Pewaukee Lake. Since its inception, MGM has generated attractive returns for its borrowers and investors.Our mission is to make the hard money process as smooth and fast as possible while maintaining the highest level of honesty and professionalism. The terms and structures of our loans are extremely flexible. We don’t dictate stringent lending guidelines because we believe every deal is different and can be profitable if structured properly. In fact, if you need help with a deal you’re working on, feel free to contact us we, including our in-house legal counsel, will offer our knowledge and expertise to assist you in turning your next real estate transaction into a winning hard money deal! Debra Hayes
(262) 613-1627
Debra@MGMPrivateCapital.com
Market Update FOR MILWAUKEE COUNTY
409 Sold Homes
296 New Listings
31
AVG Days on Market
$306k AVG Sale Price
$324k
98.3%
AVG Listing Price
Sales Price Ratio
$756k
99.2%
FOR WAUKESHA COUNTY
265 Sold Homes
144 New Listings
32
AVG Days on Market
$603k AVG Sale Price
AVG Listing Price
Welcome New Members! Kerri Ast
Michael Lauer
Mary Sauer
Maliyah Brown
Deserre Ortiz
Clifford Towns
Heather Gagliano
Omar Ortiz
Danien Walls
Sales Price Ratio
Key Points about Renting Personal Property BY: TIFFANY MCBROOM AND MELANIE SIKMA VIA REALESTATEINVESTINGTODAY.COM
Do you own a rental property? Here are some key points about renting personal property, which includes equipment, vehicles, and furniture. The tax treatment differs from real estate rentals, and how you classify the rental activity will affect how you report income, expenses, and potential self-employment tax. Classification of Personal Property Rentals The tax code treats personal property rentals in three ways: 1.Business. If your primary purpose is to earn income and the activity is continuous, it is considered a business. You must report the income on Schedule C, subject to selfemployment tax. 2.For-profit activity. If the rental is profit-motivated but sporadic, it’s a for-profit activity. You report the income on Schedule 1. There’s no self-employment tax. 3.Not-for-profit activity. If the rental activity is primarily for personal reasons (e.g., for recreation), it is considered not-for-profit. You report the income on Schedule 1, but cannot deduct expenses related to the activity. Renting to Your Own Business If you rent personal property to your own business, the tax implications depend on the business structure: Sole proprietorship or single-member LLC. Rentals between you and your business are not taxable events.
Continue reading on the next page
Corporation, partnership, or multi-member LLC. Renting to your business is a taxable event. The business can deduct rental payments, and you report the income on your tax return.For C corporations, this can help avoid double taxation, as rent payments are taxed only once as income to you. Self-Rental Rule The “self-rental” rule applies to renting personal property to a business in which you materially participate. The rule works like this: If the rental activity produces net income, it is characterized as non-passive income, meaning you can’t deduct passive losses against this income. If the rental activity creates a loss, the loss continues as a passive loss, which you can offset only with passive income. Key point. Self-rental gives you the worst of both worlds—passive classifications. Grouping You can avoid the self-rental rules with the grouping election. You may group your property rental with your business when the group forms an appropriate economic unit and the rental activity is insubstantial relative to the business activity, or vice versa, or each owner of the business activity has the same proportionate ownership interest in the rental activity. Caution 1. The tax code prohibits grouping real and personal property rentals. Exception. If you rent the business building or office unit to your business and such rental includes furnished offices, the prohibition on combining activities does not apply. You can group with the business activity under the grouping rules above. Caution 2. The self-rental grouping election does not work with a C corporation. One Stop Tax Strategists Team Tiffany McBroom and Melanie Sikma are a sister powerpack combo! They grew up listening to Byron, who is their father, mentor and guide, talk tax and financial strategies with his business owning friends on camping trips. Byron has been a CPA for 30+ years and thrives on finding new solutions to saving business owners more on taxes. His excitement for helping entrepreneurs make their dreams come true led both of them into the same field as him. Learn more by visiting onestoptaxstrategists.com.
Which Home Features Add the Most Value? BY: BRAD BECKETT VIA REALESTATEINVESTINGTODAY.COM
The NAHB’s Eye on Housing says the value of a single-family home is shaped by many factors, but its physical features remain among one of the most influential. Recent data from the latest American Housing Survey show that the overall square footage of the home and the number of bathrooms stand out as especially strong value drivers, while other features such as the number of bedrooms and the presence of amenities also play a role. “Home size is one of the strongest value drivers in today’s housing market, as shown in Figure 1. Compared with smaller homes under 1,000 sq. ft., homes between 1,000 and 2,000 sq. ft. are valued about 17% higher. Moving up to homes between 2,000-3,000 sq. ft. increases value by around 30%, while homes with 3,000 sq. ft. or more adds 55% more to the market value.”
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Redfin’s Predictions for 2026 BY: BRAD BECKETT, REALESTATEINVESTINGTODAY.COM
We recently saw Zillow’s 10 predictions for 2026, now comes Redfin, who says a “Great Housing Reset” will take shape next year. They add that it won’t be a quick price correction, and it won’t be a recession, but it will mark the beginning of a long, slow recovery for the housing market.
The Great Housing Reset will take shape in 2026. It won’t be a quick price correction, and it won’t be a recession. Instead, the Great Housing Reset will be a yearslong period of gradual increases in home sales and normalization of prices as affordability gradually improves. It will start next year, with incomes rising faster than home prices for a prolonged period for the first time since the Great Recession era. It won’t be enough to make homebuying affordable in the short run for Gen Zers and young families, who will be forced to make tradeoffs, from moving in with roommates or their parents to delaying having children. Politicians on both sides of the aisle will respond to the widespread housing affordability crisis, introducing policies to lower costs, from YIMBY measures to expanded manufactured housing. Some of those proposals will chip away at affordability, but they won’t be an instant fix.
Here are Redfin’s 11 predictions for 2026: 1. Mortgage Rates Will Dip to Low-6% Range, One Factor Improving Affordability 2. Homebuying Affordability Will Improve As Wages Grow Faster Than Prices 3. Home Sales Will Rise 3% 4. Rents Will Rise As Demand For Apartments Rises and Supply Falls 5. High Housing Costs Will Reshape Households, With More Roommates and Fewer Babies 6. Affordability Crisis Will Unite Policymakers Across Party Lines 7. More Americans Will Refi and Remodel 8. NYC Outskirts, Great Lakes Region Will Be Hot … Zoom Towns Like Nashville and Austin Will Not 9. Climate Migration Will Go Hyperlocal 10. NAR Will Let Local MLSs Call the Shots, Sparking Consolidation 11. AI Will Become a Real Estate Matchmaker
Click here to read the full report at Refin.com