Rehab, Restore, Rebuild…Relax?
Pick your lane for 2026
Look at our business, our portfolio, and ourselves.
What lane is best for us to travel in 2026?
“ONE SIZE” does not fit all. To grow, we need to select a specific lane appropriate for each aspect of our business, portfolio, and self.
The “…all things to all people all of the time tends to result in being nothing to nobody…”
REHAB
HGTV makes rehab seem like it is a low risk to take anything/anywhere in any condition, and substantially increase value at projected costs, which are generally less than 1/3 of reality.
United Dominion Realty Trust (FPO) built a 50,000+ apartment home portfolio by acquiring flawed properties (often from weakened owners), spending on substantial rehab in the first year (so we could treat, under REIT tax laws, as a capital improvement versus an operating expense).
The homes became “clean, safe, and cheap” (as labeled by Jim Dolphin, UDR CFO).
I met this week with the owners of a successful house cleaning business (e.g., 15 FULL-time employees). Rather than selling (to gain more time with their kids), we developed a plan to build up staff leadership - which will allow for several expansion opportunities – and result in more flexibility for the owners to spend more time with their children.
Facing the challenges of what you already control can result in a quantum leap in income and value.
RESTORE
Why would we want to return a business, properties, or self to what once was? Sometimes our business drifts from lack of mission, management ignores an asset and it deteriorates (e.g. lobby of a hotel or landscaping at a retail center), and too many “I’ll just have one” snack is reflected in our growing belly. If what we want is what once was, we need to be honest in facing the steps to turn back time!
REBUILD
We are never too old to start all over again! Sell your business and pivot into something else (e.g., study the flexibility you gain with investing the capital gains – from ANY source – into a realty/business/asset development in a Qualified Opportunity Zone). Scrape away an obsolete property, build something more efficient/attractive, and move forward. Surgery can fix things broken (and “adjust” things we want to look different).
RELAX
When everyone (including this author) is suggesting moving forward, sometimes the best action…is NO action! A business which performs well in good times and bad (e.g., a well-run veterinarian clinic) may be better held until the economy is rocking (and there is a premium being paid from institutional buyers). The cash flow from an aged, limited-service hotel may never be replaced with something new and expensive. And our self? Maybe we enjoy the snacks, especially if wine and music are added! Not everything in our life needs be resolved in one year!
BOTTOM LINE.
A new year is a great opportunity to make subtle improvements in how we lead our business, manage our real estate portfolio, and treat ourselves.
The end of the year is an effective time to reflect – write down your thoughts – and discern what incorporated “micro steps” will help us achieve what we want in 2026.
Best luck! We are traveling the same pathway with you!