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By: Tim Gramling | Co-Founder | Next Legacy Group Multifamily Property Management: What Investors Should Know When evaluating a multifamily real estate investment, it is natural to focus on projected returns, occupancy rates, rental income and property value. These numbers provide important insight into an investment opportunity, but they do not tell the entire story. What happens after the acquisition is just as important. The way a property is maintained, how resident concerns are addressed and how daily operations are managed can influence the overall investment experience. For passive investors, understanding a sponsor's approach to property management is an important part of evaluating a multifamily opportunity. Why Property Management Matters in Multifamily Investing Acquiring a multifamily property is only the beginning. Maintaining its condition and overseeing its operations require consistent attention, planning and execution. A property is more than an investment on a financial statement. It is also a community where residents live every day. When maintenance concerns are addressed promptly and shared spaces are properly maintained, property operations can support a better resident experience. On the other hand, overlooked repairs and inconsistent management can create challenges that affect both residents and property operations. This is why investors should look beyond the acquisition strategy and understand how the sponsor plans to manage the asset throughout the investment period. A Practical Example: Property Improvements at The Haven at Craigshire At The Haven at Craigshire, a 106-unit multifamily community, addressing deferred maintenance included replacing deteriorating exterior steps. This type of improvement may not appear significant compared with a major renovation or property repositioning. However, it addresses a practical need that residents encounter in their everyday lives. It also illustrates an important principle: effective property management is not always about making the biggest improvements. Sometimes, it means recognizing smaller maintenance concerns, prioritizing them and taking action before they become larger problems. With more than 40 years of engineering experience, I understand the importance of paying attention to the details. The condition of a property reflects the decisions made behind the scenes, from identifying maintenance needs to planning and executing repairs. For investors, these details offer a closer look at how a property is being cared for after acquisition. 4 Ways Effective Property Management Supports a Multifamily Investment 1. Resident Satisfaction and Retention Residents experience property management firsthand. Their experience can be influenced by how quickly maintenance requests are handled, how common areas are maintained and how management communicates with them. A responsive management approach can support resident satisfaction and encourage lease renewals. Retaining residents may also help reduce the disruption and costs associated with turnover. 2. Expense Management Property expenses extend beyond the initial purchase and planned renovations. Vacant units, repairs, maintenance and turnover preparation can affect operating expenses. A proactive management strategy helps identify maintenance needs, prioritize resources and address problems before they potentially become more expensive. The goal is not simply to spend less. It is to make informed decisions about where and when property resources are needed. 3. Asset Preservation A multifamily property is a physical asset that requires ongoing care. Routine inspections, timely repairs and consistent maintenance can help preserve building conditions and identify potential concerns early. Small issues should not automatically be treated as insignificant. Addressing deteriorating exterior features, shared spaces and other maintenance needs can contribute to the property's overall condition and usability. 4. Consistent Operations After Acquisition A sponsor's responsibilities do not end when a property is purchased. The business plan must be supported by day-to-day execution. This includes overseeing property management, monitoring operating performance, addressing maintenance priorities and evaluating whether the property is progressing according to its objectives. For passive investors, understanding who is responsible for these activities and how decisions are made can provide valuable context when evaluating a sponsor. 4 Questions Every Passive Multifamily Investor Should Ask Before committing capital to a multifamily investment, consider asking the sponsor these questions: 1. How are maintenance requests identified and addressed? Understand how the management team handles routine repairs, urgent concerns and ongoing property maintenance. 2. How does the team support resident satisfaction and retention? Ask about communication, maintenance responsiveness and the approach to creating a well-managed residential community. 3. How is deferred maintenance prioritized? Find out how the sponsor identifies existing property concerns, establishes priorities and allocates resources for repairs. 4. Who oversees property operations after acquisition? Understand the roles of the sponsor, property management team and other professionals responsible for executing the business plan. These questions can help investors evaluate more than projected financial performance. They provide insight into the people, processes and decisions responsible for managing the property. Look Beyond the Acquisition A multifamily investment should be evaluated from more than one perspective. Financial projections and acquisition details matter, but the ongoing management strategy deserves equal attention. Property maintenance, resident experience, expense management and operational oversight are all important considerations when assessing how a sponsor plans to care for an asset. At Next Legacy Group, we believe informed investors should understand not only what they are investing in, but also how the property will be managed after acquisition. Look beyond the purchase. Understand the plan. Continue Learning With Next Legacy Group Want to learn more about multifamily real estate investing and what passive investors should consider before making an investment decision? Join Next Legacy Group for Friday Night Lights, our weekly investor education webinar. Explore multifamily investment concepts, ask questions and continue building your understanding of passive real estate investing. Register for our upcoming Friday Night Lights webinar: Meeting Registration - Zoom

By: Teresa Loos-Tedrow | Co-Founder | Next Legacy Group I Didn’t Know My 401(k) Could Do That! For years, I contributed to my 401(k), believing I was doing what I needed to do to prepare for retirement. Like many people, I was familiar with traditional investments, but I had not spent much time exploring what other options might be available. Then I learned about Self-Directed IRAs. That discovery opened my eyes to the possibility that certain retirement accounts may allow investments beyond traditional stocks and bonds, including alternative assets such as private real estate. It made me realize how important it is to understand not only how we save for retirement, but also the options available for investing those savings. Discovering a Different Approach to Retirement Investing When I began learning about Self-Directed IRAs (SDIRAs), I discovered that eligible retirement funds may be used to invest in certain alternative assets, subject to IRS rules and the requirements of the account structure. For me, the idea of exploring private real estate was particularly interesting. I began learning about different investment opportunities, including multifamily real estate in Florida, self-storage properties in Missouri and private debt backed by multifamily real estate. Each opportunity had its own structure, potential benefits and risks. What stood out to me was the importance of looking beyond an investment's headline numbers and understanding how it works, what could affect its performance and whether it aligns with my goals. I also learned that not every retirement account can invest in every asset. The account type, custodian policies, transaction structure and applicable IRS requirements all matter. Understanding How Real Estate Investments May Work As I continued learning, I became interested in how private real estate investments are structured and how investors may participate in them. Multifamily real estate, for example, involves residential properties with multiple rental units. Investment performance may be influenced by occupancy, rental income, operating expenses, financing costs, property management and broader market conditions. Other investments, such as self-storage or private debt backed by real estate, have different characteristics and risks. I learned that understanding an investment means looking at more than the potential return. It also means asking questions about the property's financial performance, the experience of the management team, the investment timeline, the terms of the offering and how I might access my capital. Private real estate investments are generally less liquid than publicly traded investments. Selling an interest or withdrawing funds may not be possible when an investor wants or needs to do so. That is why education and due diligence are so important. What I Learned About Refinancing One concept that caught my attention was refinancing. In some real estate investments, refinancing may allow a property owner to replace an existing loan with new financing. Depending on the property's performance, its value, available lending terms and the amount of debt involved, the transaction may generate proceeds that could be distributed to investors. In certain circumstances, an investor may receive some or all of their original capital back while retaining an ownership interest in the property. However, this is not guaranteed. A refinance may not be available or financially practical, and the proceeds may be lower than expected or nonexistent. New financing can also increase debt and introduce additional risks to a property. For investments held through a Self-Directed IRA, the treatment of any proceeds depends on the investment structure and applicable account rules. Investors should confirm the details with qualified tax and financial professionals before proceeding. Learning about refinancing helped me understand why it is important to examine the full investment structure rather than assume that capital will be returned on a particular schedule. The Importance of Understanding the Rules Exploring alternative investments through retirement accounts also introduced me to rules that require careful attention. Self-Directed IRAs are subject to IRS requirements, including restrictions on prohibited transactions and dealings with certain disqualified persons. Violating these rules can have serious tax consequences. Rollovers and transfers must also be handled correctly. Not every retirement plan can be moved or used in the same way, and the available options depend on the plan's terms, the account type and individual circumstances. Before making a decision, it is important to understand the fees, potential tax implications, investment restrictions, liquidity limitations and risks involved. Speaking with qualified financial, tax and legal professionals can help investors evaluate whether a particular approach is appropriate for their situation. I have learned that having more options does not necessarily mean every option is right for me. The goal is to understand what is available and make informed decisions based on my circumstances and long-term objectives. Why Financial Education Matters My biggest takeaway has been that retirement planning involves more than simply contributing money and hoping it grows. Learning about Self-Directed IRAs encouraged me to ask better questions, explore different investment structures and become more intentional about understanding where my retirement savings might be invested. It also reminded me that investing requires patience, research and a realistic understanding of risk. No investment guarantees a particular outcome, and the possibility of earning returns must always be considered alongside the possibility of losing money. I am sharing my experience because I believe people should have access to information that helps them ask questions and explore their options. You do not need to know everything before you begin learning, but you do need to take the time to understand the decisions in front of you. Start by Asking Questions If you have a 401(k) or another retirement account, you may want to learn more about the investment options available under your specific plan. Consider asking: What investment choices does my current retirement plan allow? Could a Self-Directed IRA be relevant to my circumstances? What fees, restrictions and tax considerations should I understand? How liquid is a potential investment, and when might I be able to access my money? What risks could affect the investment, and what happens if it does not perform as expected? Which qualified professionals should I consult before making a decision? These questions can be a useful starting point for learning more about retirement planning and alternative investments. I did not know my 401(k) could lead me to explore these possibilities. The experience reminded me that sometimes, learning about an unfamiliar option can change the questions we ask about our financial future. The first step is education. The next is making informed decisions that align with your own goals and circumstances. Continue Learning with Next Legacy Group At Next Legacy Group, investor education is an important part of helping people better understand multifamily real estate and private investment opportunities. Join us for Friday Night Lights, our investor education webinar, to continue learning about multifamily real estate investing. Register for the webinar: https://us06web.zoom.us/meeting/register/Hw8i2jeXTkm2z2OOwELAcQ#/registration

By: Laura DeVaney | Co-Founder | Next Legacy Group Lessons from Hurricane Isaias on protecting what matters and building a legacy that lasts. Living along the Gulf Coast brings a heightened awareness of how quickly circumstances can change. As Hurricane Isaias moved toward the Gulf Coast, families and businesses were preparing for the possibility of damaging winds, flooding, power outages and unexpected disruptions. People were securing their homes, gathering supplies, reviewing evacuation plans and making decisions to protect what matters most. And while we cannot control the direction of a hurricane, we can control how well we prepare for its arrival. The same principle applies to our financial lives. Financial storms don't always arrive with a weather forecast. Sometimes they arrive as an unexpected medical expense, a job loss, an economic downturn, rising inflation or a sudden change in the real estate market. The question isn't whether life will bring uncertainty. It's whether we're intentionally building a foundation strong enough to withstand it. Recently, as I stood along the Gulf Coast shoreline in Mississippi with my son and grandson, it brought into focus the importance of building a strong financial foundation. It's about providing security for those we love, creating opportunities for future generations and building a legacy that extends far beyond our own lifetime. This belief is more than a guiding principle. It's the foundation of what we're building at Next Legacy Group. Preparation Creates Options When a hurricane approaches, those who have prepared ahead of time generally have more options. They have emergency supplies, a plan for their families, important documents secured and resources available if they need to leave quickly. Financial preparedness works much the same way. Having accessible savings, manageable debt, appropriate insurance and a thoughtful investment strategy can provide flexibility when life takes an unexpected turn. Preparation doesn't eliminate every risk. But it can make the difference between reacting out of desperation and responding with confidence. True financial security isn't simply about how much money we accumulate. It's about the choices those resources allow us to make. Building Financial Resilience Before the Storm At Next Legacy Group, we believe building wealth should be intentional. It's not simply about pursuing the next investment opportunity or achieving the highest possible return. It's about creating a financial foundation designed to support your goals through changing circumstances. That foundation begins with several important principles: 1. Maintain financial reserves. Just as families keep emergency supplies available during hurricane season, maintaining accessible funds for unexpected expenses can help prevent the need to sell investments at an unfavorable time. 2. Diversify thoughtfully. Relying entirely on one source of income or one type of investment can create unnecessary exposure. A diversified financial strategy may help reduce the impact of difficulties in any single area. 3. Invest with a long-term perspective. Financial markets experience cycles, just as nature experiences seasons. A thoughtful strategy considers both favorable conditions and challenging ones. 4. Understand and manage risk. Every investment carries risk. Understanding those risks, evaluating the underlying assets and working with experienced professionals are essential parts of responsible investing. 5. Build beyond yourself. Financial preparation is also about the people who depend on us and the opportunities we hope to create for future generations. Real Estate and the Importance of a Strong Foundation One of the reasons we are passionate about real estate at Next Legacy Group is its potential to play a meaningful role in a long-term wealth-building strategy. Real estate is a tangible asset. When carefully acquired, responsibly financed and effectively managed, income-producing properties may offer opportunities for cash flow, equity growth, long-term appreciation and potential tax advantages. But just as a home must be built to withstand the elements, a real estate investment must be structured to navigate uncertainty. That means paying attention to property fundamentals, financing, operating reserves, insurance, management and the financial strength of the investment itself. It also means recognizing that real estate is not immune to economic downturns, natural disasters, vacancies or unexpected expenses. A strong investment strategy is not built on the assumption that everything will go perfectly. It's built with the understanding that sometimes things won't. The Greatest Legacy Is More Than Money When a hurricane threatens our communities, something remarkable often happens. Neighbors check on neighbors. Families come together. People share supplies, offer shelter and help one another prepare. In moments like these, we're reminded that the things we value most cannot always be measured in dollars. Our families. Our relationships. Our communities. Our ability to help someone else when they need us. And that brings us to something we believe deeply at Next Legacy Group. Building a financial legacy isn't simply about leaving money behind. It's about creating opportunities, stability and choices for the people and generations who follow us. It's about having the resources to care for our families, respond to unexpected challenges and make a meaningful difference in the lives of others. Financial preparedness is one expression of that responsibility. Don't Wait for the Storm to Build Your Foundation As we watch Hurricane Isaias approach, perhaps this is an opportunity to consider more than our emergency supplies and evacuation plans. It's also an opportunity to ask ourselves: If my income stopped tomorrow, how long could my family comfortably manage? Are my investments positioned to support my long-term goals? Have I built sufficient financial reserves? Am I making decisions today that will create greater stability and opportunity tomorrow? What kind of legacy am I intentionally building? These aren't questions meant to create fear. They're questions meant to inspire action. Because preparation is not about expecting the worst. It's about creating the strength, flexibility and confidence to face whatever comes next. At Next Legacy Group, our mission is to help investors thoughtfully pursue opportunities that can contribute to lasting wealth and meaningful legacies. We cannot predict every financial storm ahead. But we can be intentional about the foundation we're building today. And sometimes, the smallest decisions we make now become the very things that make the greatest difference later. As Alma 37:6 reminds us, "By small and simple things are great things brought to pass." Stay safe, look after one another and remember that the best time to prepare for tomorrow is today. And I believe this is just the beginning of what we're building together. About Next Legacy Group Next Legacy Group is a real estate investment firm focused on helping investors pursue long-term wealth-building opportunities through thoughtfully structured real estate investments.

By: Jason Ottilo | Co-Founder | Next Legacy Group The first time I got a K-1 from a real estate deal, I thought something had gone wrong. The property was performing. I'd received distributions all year. And yet the form said I had a loss. I called the sponsor half-convinced I was about to hear bad news. What I heard instead was a ten-minute explanation that changed how I think about real estate forever. I'm going to give you that same explanation here, because it's the most misunderstood advantage of passive investing, and because as of last year the rules got meaningfully better. The government lets you pretend the building is wearing out. When you buy a rental property, the IRS treats the building (not the land) as an asset that slowly loses value. For residential real estate, that "wearing out" is spread over 27.5 years, and each year you deduct a slice of the building's cost against the income it produces. That's depreciation. Here's what matters: it's a paper deduction. No cash leaves your pocket. The building may actually be going up in value while the IRS lets you write it down. Take a $10 million apartment community: $8 million of building, $2 million of land. Straight-line depreciation is roughly $290,000 a year. Meaningful, but slow. Now speed it up: cost segregation and bonus depreciation. A building isn't one thing. It's carpet, appliances, cabinets, parking lots, landscaping, and hundreds of other components. The tax code says many of those wear out in 5, 7, or 15 years, not 27.5. A cost segregation study is an engineering report that identifies those pieces and moves them into their shorter recovery periods. On a typical garden-style apartment property, 20% to 35% of the purchase price lands in those faster buckets. Bonus depreciation is the accelerator on top. It lets the owner deduct those short-life components in the first year instead of spreading them out. And here's the news: the tax legislation signed in July 2025 restored bonus depreciation to 100% and made it permanent for property acquired after January 19, 2025. Under prior law it had been phasing down (60% in 2024, 40% in 2025, headed to zero). That phase-down is gone. Back to our $10 million property. If a cost segregation study moves 25% of the $8 million building into short-life assets, that's $2 million deductible in year one, plus roughly $220,000 of regular depreciation on the rest. Call it $2.2 million of deductions against a property that might earn $500,000 after expenses and debt service. On paper, the property just "lost" about $1.7 million while making half a million dollars. What that means for you: the $100,000 investor When you invest in a fund or syndication, you own a slice of the entity that owns the property. Every dollar of depreciation is divided among the owners in proportion to their ownership and lands on your K-1. Say the deal raised $4 million of equity and you invested $100,000. You own 2.5%. Your share of that $1.7 million paper loss is roughly $42,000. Meanwhile, at a 7% preferred return, you received about $7,000 in cash. So your K-1 shows a $42,000 loss. Your bank account shows $7,000 in deposits. That's exactly what happened to me, and it's the moment most new investors call their sponsor in a panic. Plainly, you can receive cash distributions and owe little or no current federal income tax on them. The honest caveat: "passive" is a tax term. A lot of online content oversells this, so let me be straight with you. First, a definition. "Passive" here isn't a description of your effort. It's an IRS category. Income and losses from a deal you don't materially operate are passive income and passive losses, and the tax code keeps them in their own bucket. The rule: passive losses can offset passive income, but they generally cannot offset your W-2 salary or business income. Your $7,000 distribution is passive income, so this deal's loss shelters it completely. The remaining $35,000 of loss doesn't touch your paycheck. The main exception is real estate professional status: roughly, more than half your working hours and at least 750 hours a year in real estate activities you materially participate in. That's a high bar, not a box you check casually. For everyone else, here's the good news: passive losses don't disappear. They're suspended and carried forward. That $35,000 sits on your return, waiting. Now watch what happens when you invest in a second deal two years later. Deal one has mostly used up its accelerated depreciation and starts showing taxable income, maybe $8,000 a year on your K-1. Deal two just generated a fresh $40,000 loss. The new loss shelters the old income, and the suspended losses keep stacking. When either property is fully sold, any remaining suspended losses are released against the gain. Investors who build a portfolio of a few deals often go years paying little current tax on their real estate income. That's the compounding tax engine nobody teaches. What happens when the property sells? Depreciation is a deferral, not a gift. At sale, the depreciation you took is "recaptured": the building portion is taxed at up to 25%, and the short-life components can be taxed at ordinary rates. The rest of your gain is taxed at long-term capital gains rates, which are lower than what you pay on salary. Even so, three things work in your favor. You had use of that money for years instead of sending it to the IRS up front. Your suspended losses come back to offset the gain. And a sponsor with a plan can roll proceeds into the next acquisition through a 1031 exchange, which I wrote about a few weeks ago, and keep the deferral going. Deferred tax is a zero-interest loan from the government that you get to invest. How we think about it at Next Legacy Group. We don't buy properties for the tax benefits. We buy properties that make sense on the fundamentals: real demand, debt we can service comfortably, and operators we'd trust with our own money (and we do). The tax treatment is the bonus, not the thesis. But we do think about your after-tax experience. We commission cost segregation studies where they make sense. We structure acquisitions to qualify for bonus depreciation. And we'll show you, before you invest, what year one is likely to look like on your K-1. If you want to see a real one from a Next Legacy deal, reach out through the Next Legacy Fund page. We'd rather show you than tell you. I'm not your tax advisor, and every situation is different. Talk to a CPA who understands real estate before acting on any of this. But walk into that conversation knowing the right questions: What does year-one depreciation look like on this deal? Is there a cost seg study? What can I do with a passive loss? What happens at the sale? Ask those, and you're already thinking like the investors I wish I'd been around at 25.

By: Tim Gramling | Co-Founder | Next Legacy Group It’s easy to look at today’s interest rates and conclude that this is a difficult time for multifamily real estate investing. Debt is more expensive. Financing costs are higher. And deals that worked several years ago may not work today. But higher interest rates can also create opportunities. When borrowing costs rise, buyers cannot afford to pay the same prices and still achieve acceptable returns. Some buyers leave the market altogether. Sellers who need to sell may eventually have to adjust their expectations. That can create an opportunity to acquire a good multifamily property at a more attractive price. The Price Matters More Than Ever The key is not ignoring higher interest rates. It is pricing them into the deal. Instead of asking: “Are rates too high to buy?” Consider asking: “At today’s cost of capital, what price makes this investment work?” That distinction matters. A disciplined multifamily investment should not require interest rates to fall for the business plan to succeed. The property should make sense based on reasonable assumptions and the financing available today. What Higher Interest Rates Can Change Higher financing costs can affect several parts of a multifamily investment: Buyer Purchasing Power Higher borrowing costs can reduce what buyers can afford to pay. Seller Expectations Some sellers may eventually need to adjust their pricing expectations as market conditions change. Acquisition Opportunities When pricing comes under pressure, investors may have opportunities to acquire quality properties at a more attractive basis. Investment Underwriting Today's financing costs need to be included in the analysis rather than assuming rates will decline. For investors, this makes disciplined underwriting even more important. A Disciplined Multifamily Investment Strategy A good investment should work with the financing available today. Investors should carefully evaluate: Purchase price Financing structure Operating assumptions Market conditions Property-level risks Potential future scenarios The goal is not to predict exactly where interest rates will go. The goal is to determine whether the investment makes sense at the price and financing available today. What If Interest Rates Decline? There can be another side to the equation. If a property is acquired at an attractive basis during a higher-rate environment and borrowing costs eventually decline, improved financing conditions could create additional opportunities through refinancing or increased buyer demand. But that potential upside should be a benefit, not a requirement. The investment should have a sound foundation before relying on future changes in financing conditions. The Investor Takeaway There is no universally “good” or “bad” time to buy multifamily real estate. There are prices, financing structures, assumptions and risks that either make an investment make sense — or they don't. Market conditions that make some investors uncomfortable can sometimes create opportunities for investors who are willing to analyze the numbers carefully. The opportunity isn't buying because rates are high. It's buying well because higher rates changed the market. Learn More About Multifamily Investing Next Legacy Group shares educational insights on multifamily real estate investing, market conditions, investment strategy and disciplined acquisition. Join our free Friday Night Lights weekly webinar to learn more about how multifamily real estate investing works and ask questions about today's market. Meeting Registration - Zoom

By: Laura DeVaney | Co-Founder WHO NOT HOW Building a Multifamily Real Estate Legacy Was Never Meant to Be a Solo Journey Multifamily real estate investing involves many moving parts. From identifying opportunities and underwriting properties to financing, renovations, property management and investor communication, executing an investment strategy requires expertise across multiple areas. For investors, the goal does not necessarily have to be learning how to do every part of the process themselves. Instead, there may be a more useful question: “Who has the experience and expertise to help accomplish this?” This is the idea behind “Who Not How.” What Is “Who Not How”? Rather than asking: “How do I do everything myself?” Ask: “Who has the experience and expertise to help accomplish this?” In multifamily real estate investing, different professionals may be responsible for sourcing opportunities, underwriting potential investments, arranging financing, managing renovations, overseeing property operations and communicating with investors. For passive investors, understanding who is responsible for each part of the investment can be an important component of due diligence. When Should Investors Ask, "Who?"” Before investing. Evaluating an investment opportunity involves more than reviewing the property itself. Investors may also want to understand the people responsible for executing the business plan. Consider asking: Who is finding and evaluating the opportunity? Who is underwriting the deal? Who is operating the property? Who is managing renovations? Who is monitoring income and expenses? Who is communicating with investors? Understanding these responsibilities can provide greater clarity about how an investment is expected to operate. Where Does the “Who” Matter? The people behind an investment can play a role throughout the entire investment lifecycle: Acquisition → Financing → Operations → Renovations → Asset Management → Investor Communication → Exit Each stage requires different skills, responsibilities and areas of expertise. That is why evaluating the team can be just as important as understanding the property, market, financing structure and overall business plan. How Should Investors Evaluate Their “Who”? Start with due diligence. Look beyond the property and take time to understand the team responsible for executing the investment strategy. Investors may want to consider: Experience and track record—What relevant experience does the team have? Roles and responsibilities—Is it clear who is responsible for each part of the investment? Operating expertise—How does the team approach property and asset management? Investor communication—How and when will investors receive updates? Ability to navigate challenges—How has the team handled changing market or operating conditions? Capital management—How will investor capital and property finances be managed? No single factor determines the outcome of an investment, but asking these questions can help investors make more informed decisions. Your “Who” Should Support Your “Why” Before choosing an investment opportunity or investment partner, it is important to understand your own objectives. Your investment goals might include: Income • Long-Term Wealth • Diversification • Retirement • Future Generations Different investors may have different priorities, time horizons and risk considerations. Understanding your “why” can help you evaluate whether an opportunity, strategy and investment team align with your individual objectives. The Investor Takeaway You don't have to know every “how.” But you should understand who is responsible for executing the plan. Multifamily investing is rarely the work of one person. It involves a team of professionals working across acquisitions, financing, operations, renovations, asset management, and investor relations. For passive investors, knowing the people behind an opportunity—and conducting appropriate due diligence on their experience, responsibilities, and approach—can be an important part of evaluating an investment. NEXT LEGACY GROUP Building Wealth with Strength & Integrity

By: Teresa Loos-Tedrow | Co-Founder | Next Legacy Group I spent most of this past weekend working my ass off on a piece of real estate. Except I had already sold it. The property is a single-family home my daughter and her family just bought from me. The closing is done. The paperwork is signed. It is their house now. Technically, I could have handed them the keys and said, “Congratulations.” Instead, I was painting doors, staining the deck, improving the curb appeal and doing the little things that would make the house feel more finished and more like home. At one point, my mom was working alongside me and said: “It’s all about family, right?” Yeah. I think it is. I wanted my daughter and her husband to be proud of their first home. I wanted them to get a good start. And I wanted my 19-month-old granddaughter to have a good place to grow up. There was no return calculation on the work I was doing. No cap rate. No IRR. No spreadsheet telling me whether another hour of painting made financial sense. It just mattered. And somewhere in the middle of all that work, I realized the house itself was really only part of the story. That became especially clear when I stopped working long enough to spend time with my granddaughter. Mommy walks around the corner? “MAMA!” Daddy comes back into the room? “DADDY!” Pure excitement. Just absolute joy because someone she loves walked back into the room. Watching that, I found myself thinking: What If We Never Lost That? What if we greeted the people we love with a little more of that enthusiasm? What if the people in our lives never had to wonder whether we were happy to see them? I've spent a lot of years thinking about real estate, investing, wealth and building something that lasts. But weekends like this remind me that the word that matters most in “family wealth” isn't always wealth. It's family. Real estate is a tool. Money is a tool. Investing is a tool. The real question is what we're using those tools to build. Maybe it's financial independence. Maybe it's more control over our time. Maybe it's helping our kids buy their first home. Maybe it's creating opportunities for grandchildren who aren't old enough yet to understand any of it. And maybe legacy isn't only the property we leave behind or the money sitting in an account. Maybe legacy is also a daughter who remembers that her mom kept showing up even after the deal was done. A granddaughter who grows up knowing she was surrounded by people who were genuinely happy to see her. A family that understands that taking care of each other is simply what we do. I've spent much of my career around large real estate investments, partnerships, capital and deals with plenty of zeroes attached. This weekend it was one little house. But I'm not sure I've worked on a property that represented Next Legacy any better. My mom was right. It's all about family. And maybe every once in a while, when someone you love walks around the corner, we should greet them like a two-year-old would. They probably deserve it.

By: Jason Ottilo | Co-Founder | Next Legacy Group How can real estate investors receive cash flow while potentially showing a tax loss? Jason Ottilo explains depreciation, cost segregation and 100% bonus depreciation for passive investors. A real estate investment can generate cash distributions while showing a tax loss on your K-1. That may sound confusing. How can you receive cash from an investment while the tax documents show a loss? One important part of the answer is depreciation. For passive real estate investors, understanding depreciation, cost segregation and bonus depreciation can help explain how a property can produce cash flow while also generating significant tax deductions. The Basics: What Is Depreciation? Depreciation is essentially a paper deduction. The IRS allows investors to deduct the cost of certain real estate assets over time. The deduction represents the gradual use or deterioration of the property for tax purposes. The important point is this: Depreciation does not require cash to leave your bank account. A property can potentially increase in value while depreciation creates a tax deduction. For residential rental property, the building portion is generally depreciated over 27.5 years, subject to applicable tax rules. That creates an annual deduction even though you are not writing a check for that amount each year. Why Cost Segregation Matters A multifamily property is more than its walls and roof. Inside and around a property are many components that may have shorter depreciation lives. A cost segregation study identifies and separates certain components of a property so they can potentially be depreciated over shorter periods. These may include: Appliances Carpeting Cabinets Landscaping Parking improvements Certain building systems Other shorter-life assets Instead of waiting years to receive the full benefit of depreciation, cost segregation can accelerate deductions into the earlier years of ownership. This is where bonus depreciation becomes particularly important. What Is 100% Bonus Depreciation? Bonus depreciation allows qualifying assets to be deducted much faster than under traditional depreciation schedules. Under legislation enacted in 2025, 100% bonus depreciation was restored and made permanent for qualifying property acquired after January 19, 2025, subject to applicable requirements. For investors, this can potentially create a much larger first-year depreciation deduction. Consider a simplified example. A $10 Million Multifamily Property Imagine a multifamily property purchased for $10 million. For illustration: $8 million = building $2 million = land A cost segregation study identifies approximately $2 million of potentially shorter-life assets Additional regular depreciation may apply to the remaining building basis The exact results depend on the property, acquisition structure, cost segregation study and applicable tax rules. But the concept is important: A significant first-year paper loss could potentially be generated even while the property produces cash flow. What Could This Mean for a $100,000 Investor? Let's make the example more personal. Suppose you invest $100,000 in a multifamily investment with a total equity raise of $4 million. Your approximate ownership would be: $100,000 ÷ $4,000,000 = 2.5% Now suppose your share of the deal's depreciation-related loss was approximately $42,000. Your K-1 could potentially show: -$42,000 tax loss At the same time, suppose you receive: +$7,000 in cash distributions That does not necessarily mean you lost $42,000. The $42,000 represents a tax loss generated by depreciation, not necessarily a cash loss. This illustrates one of the important distinctions in real estate investing: Taxable income and cash flow are not always the same thing. The Important Catch: Passive Loss Rules There is an important limitation investors need to understand. Passive losses generally remain subject to passive activity rules. In many situations, passive losses cannot simply be used to offset W-2 wages or active business income. Instead: Unused passive losses may be suspended. Suspended losses may generally carry forward. When a qualifying investment is sold, suspended losses may become available to offset income or gain, subject to applicable rules. Tax treatment depends on the investor's individual circumstances and investment structure. Real estate professional status can change how certain passive losses are treated. However, qualifying as a real estate professional involves specific requirements and should not be assumed. This is why investors should always discuss their individual situation with a CPA or qualified tax advisor. What Happens When You Sell? Depreciation can provide valuable deductions during the ownership period, but investors also need to understand what can happen when an investment is sold. Certain depreciation deductions may be subject to recapture rules. In simple terms, some of the tax benefits received during ownership can affect the tax treatment of a future sale. A 1031 exchange may also provide another strategy for investors seeking to defer certain taxable gains when the requirements are met. The details matter. Your tax advisor can help determine how depreciation, recapture, suspended passive losses and a potential 1031 exchange could apply to your individual situation. At Next Legacy Group, Fundamentals Come First At Next Legacy Group, we don't buy multifamily properties simply because they offer potential tax benefits. Fundamentals come first. Taxes come second. We focus on: Real demand Sustainable debt Strong property fundamentals Experienced operators Long-term investor value When appropriate, we also consider cost segregation and bonus depreciation as part of the overall investment strategy. Tax benefits should support a strong investment thesis. They should not be the reason to make an investment. As investors, we believe the better question is not simply "What tax benefit can I get?" It is: "Does this investment make sense before the tax benefits?" That distinction matters. The Bigger Picture for Passive Investors For passive multifamily investors, depreciation can be one of the most valuable tools to understand. A properly structured investment may potentially provide: Cash distributions + depreciation deductions + long-term real estate exposure But every investment is different. The amount of depreciation you receive depends on factors such as: Purchase price Property basis Cost segregation results Ownership percentage Investment structure Applicable tax law Your individual tax situation There is no one-size-fits-all answer. The goal is to understand the numbers before you invest. Final Thought We don't buy properties for the tax benefits. We buy properties that make sense, and we think about your after-tax experience. Want to understand what this could look like in a real Next Legacy investment? Explore the Next Legacy Fund and learn more about our approach to multifamily investing. Join us tonight and keep learning before making your next investment decision! Meeting Registration - Zoom

By: Tim Gramling | Co-Founder | Next Legacy Group The multifamily real estate market is not an easy market to navigate right now. Interest rates remain elevated, financing costs are higher and transaction activity is still well below the levels seen several years ago. For investors accustomed to rapid appreciation and abundant deal flow, today's environment can feel frustrating. But difficult markets can also create opportunities. For patient multifamily investors, the current environment may offer an opportunity to focus less on short-term headlines and more on the long-term fundamentals that drive rental housing demand. Several factors are worth watching: America's housing shortage, the cost of homeownership compared with renting, the slowdown in multifamily construction and the relationship between property valuations and replacement costs. None of these factors guarantees investment success. However, together they may help explain why disciplined investors continue to pay attention to multifamily real estate investing. Rental Housing Demand Remains a Long-Term Consideration One of the strongest arguments for multifamily investing is the fundamental need for housing. The United States has underbuilt housing for years. McKinsey & Company estimates that the nation's housing shortfall could reach approximately 9.6 million units by 2035 without additional supply. That shortage matters for multifamily real estate because not every household can—or wants to—purchase a home. Affordability remains a major factor. When the cost of buying a home is significantly higher than renting a comparable property, more households may remain renters for longer periods. This can support the underlying demand for apartments and other forms of rental housing. For multifamily investors, the important takeaway is not that rents will automatically rise. Rather, it is that the long-term need for quality rental housing remains an important market fundamental. The Homeownership Affordability Gap Supports Rental Demand The relationship between renting and buying has become increasingly important for the rental housing market. Higher mortgage rates, elevated home prices and limited housing inventory can make homeownership more difficult for some households. As a result, renting may remain the more practical option for many people, particularly those who are saving for a down payment or waiting for more favorable purchasing conditions. This creates a potentially durable renter pool. For investors evaluating apartment communities, that means factors such as employment, population growth, household formation, affordability and local housing supply remain critical considerations. The strongest multifamily investment opportunities are not necessarily found in markets with the fastest rent growth. They may instead be found where long-term housing demand and supply fundamentals are favorable. Multifamily Construction Has Slowed Significantly Supply is another important piece of the equation. According to May 2026 reporting from Multifamily Dive citing CoStar and Apartments.com data, multifamily starts fell to approximately 55,000 units nationally in Q1 2026, about 73% below the early-2022 peak and the lowest quarterly level reported since 2011. Developers are dealing with a combination of higher financing costs, elevated construction expenses and slower rent growth. These factors have made many new projects more difficult to justify economically. The result is a shrinking development pipeline. That does not mean apartment supply is immediately disappearing. The market is still absorbing units from projects that were started during the previous construction cycle. However, fewer new starts today could translate into less new apartment supply several years from now. CoStar expects the sustained decline in apartment starts to contribute to materially lower levels of new supply in the coming years. For existing multifamily properties in carefully selected markets, that could eventually create a more balanced supply-and-demand environment. Why Market Selection Matters More Than Ever Not every multifamily market will benefit equally from these trends. Some markets are still dealing with substantial new apartment deliveries, while others face more limited development pipelines. CBRE's 2026 multifamily outlook highlights this divergence, noting that markets with significant recent construction can face near-term pressure on occupancy and rent growth while supply-constrained markets may have different performance dynamics. This makes market selection one of the most important parts of multifamily investing. Investors should consider questions such as: Is the local population growing? Are jobs being created? What industries support the local economy? How much new apartment supply is coming? What is the current occupancy rate? How affordable is renting compared with buying? Are operating expenses increasing? How much competition exists for residents? What is the local development pipeline? A strong national trend does not automatically make every property a good investment. The individual market—and ultimately the individual asset—still matters. Valuation May Create Another Point of Interest Valuation is another factor worth watching. Real estate valuations have been under pressure from higher interest rates and changing investor expectations. For buyers with long investment horizons, periods of uncertainty can sometimes create opportunities to acquire assets at more attractive bases than were available during highly competitive markets. One important concept is replacement cost. If an existing apartment property can be acquired for less than it would cost to build a comparable property today, that difference can create an important competitive consideration. Higher land, labor, materials, financing and development costs can make new construction increasingly difficult. That does not eliminate investment risk, but it can make existing multifamily assets more difficult to replicate. Patient Capital Can Look Beyond the Next Quarter Real estate is generally a long-term investment. That means today's interest rate environment or transaction volume does not necessarily determine what an asset will be worth several years from now. Historically, real estate downturns and periods of market uncertainty have been followed by extended periods of recovery and growth. The challenge for investors is having the discipline to evaluate opportunities when market sentiment is less optimistic. That requires a different mindset. Instead of asking: "What is happening this quarter?" A long-term investor may ask: "What could this property and this market look like five or ten years from now?" That shift in perspective can be particularly important in multifamily real estate investing, where the underlying investment thesis often depends on long-term rental demand, operational performance and disciplined asset management. What Patient Multifamily Investors Should Focus On A challenging market does not mean investors should lower their standards. In fact, the opposite may be true. Today's environment may reward investors who are especially disciplined about underwriting, leverage and market selection. A thoughtful multifamily investment strategy may include: 1. Conservative Leverage Higher interest rates make debt more expensive and increase the importance of maintaining adequate financial flexibility. 2. Strong Market Fundamentals Population growth, employment, household formation and rental demand can matter more than short-term market excitement. 3. Supply Analysis Understanding how many apartments are currently under construction—and how many are expected to enter the market—is essential. 4. Realistic Underwriting Investment assumptions should account for realistic rent growth, vacancy, expenses, financing costs and potential changes in market conditions. 5. Long-Term Thinking The best investment decision is not always the one that produces the fastest result. Patient capital can allow investors to focus on durable fundamentals rather than short-term market sentiment. The Opportunity May Be in the Discipline The current multifamily market is not without risks. Interest rates could remain elevated. Operating costs could increase. Certain markets may continue to experience elevated apartment supply. Rent growth may remain modest in some areas, and economic conditions can change quickly. These risks should not be ignored. But uncertainty does not necessarily mean opportunity has disappeared. In some cases, it can create an environment where disciplined investors have more time to evaluate properties, negotiate transactions and focus on fundamentals rather than competing in an overheated market. For patient investors, the combination of persistent rental housing demand, a long-term housing shortage, slowing multifamily construction and potentially more attractive valuations may make today's market worth watching closely. The opportunity is not simply about buying apartments. It is about identifying the right market, the right asset and the right investment basis—and having the discipline to say no when the numbers do not work. For long-term multifamily investors, today's uncertainty may be worth paying attention to. Sources: McKinsey & Company—"Confronting the affordable-housing crisis": McKinsey estimates that the U.S. housing shortfall could reach approximately 9.6 million units by 2035. Multifamily Dive—"Multifamily project starts declined further in Q1: CoStar." Published May 19, 2026. The article reports approximately 55,000 multifamily starts in Q1 2026, down 73% from the early-2022 peak. CBRE — 2026 U.S. Multifamily Market Outlook: CBRE's research highlights the importance of homeownership affordability, rental demand, supply levels and differences between individual multifamily markets.

By: Teresa Loos-Tedrow | Co-Founder | Next Legacy Group Passive Multifamily Investing: Beyond Tenants, Toilets & Termites When you think of real estate investing, do you think of tenants, toilets and termites? If your answer is yes, you're not alone. It's one of the first things many people picture when they hear “real estate investing.” Fixing a leaky faucet. Chasing down late rent. Taking a middle-of-the-night maintenance call. But that picture is usually built around one specific — and relatively small — version of real estate investing: owning and self-managing a single-family rental property. There is another way to think about real estate ownership. Passive Multifamily Investing Offers a Different Approach I was talking with a local broker recently and mentioned a 106-unit property we had purchased in St. Louis. His response? “Wow, that’s a big property.” His reaction stuck with me. In our circle here in the Midwest, many people don't realize that properties of this size aren't necessarily reserved for institutions or the ultra-wealthy. Qualified investors may be able to participate in larger multifamily properties by investing alongside an experienced team as passive partners. When Next Legacy Group brings a property like this to our network, it's not simply about saying, “Teresa bought a big building.” The bigger idea is that qualified investors may have an opportunity to participate in the economics of a larger real estate investment without managing every unit themselves. So what does that actually look like? Four Potential Wealth-Building Drivers of Real Estate One reason multifamily real estate can be attractive to long-term investors is that a property may have multiple potential sources of value. 1. Cash Flow A multifamily property generates rental income. After operating expenses and other obligations are accounted for, the property may generate cash flow that can potentially be distributed to investors, depending on the specific investment structure and performance. 2. Appreciation Real estate may increase in value over time. For multifamily properties, improvements in property operations, rental income, occupancy and overall market conditions can potentially contribute to an increase in property value. Of course, appreciation is never guaranteed. 3. Loan Paydown When a property has debt, principal payments can reduce the outstanding loan balance over time. As debt is paid down, the equity position in the property may increase. In simple terms, part of the property's financial structure can work toward building equity over the investment period. 4. Potential Tax Benefits Real estate can also offer tax-related strategies that may be valuable to investors depending on their individual circumstances. These may include depreciation and, when the requirements are met, 1031 exchanges. Tax treatment varies based on the investment, investor and applicable tax rules, so it's important to consult your tax professional before making decisions based on a particular tax strategy. The Investor Insight Multifamily real estate can potentially combine several sources of return within one investment. And in a passive investment structure, the investor doesn't necessarily have to be the person dealing with the toilets. From a “Big Property” to a Passive Opportunity Let's go back to that 106-unit property in St. Louis. For many people, a property with more than 100 units sounds enormous. But that's part of what I want investors to understand. You don't necessarily have to purchase and operate an entire apartment building yourself to participate in multifamily real estate. Through certain investment structures, qualified investors can invest alongside an experienced sponsor or operating team. The team may handle responsibilities such as: Property operations Tenant management Maintenance Renovations Financial oversight Execution of the property's business plan The investor's role can be significantly different from that of an individual landlord. You may be participating in the ownership economics without taking on the day-to-day responsibilities of running the property. That distinction matters. Think Long Term, Not Just About One Deal Passive investing isn't simply about receiving a distribution from one property. For many long-term investors, the bigger goal is building a portfolio of income-producing assets over time. An investor may choose to reinvest available cash flow into another investment opportunity when appropriate. Over multiple investment cycles, that can create the potential for capital to continue working rather than remaining tied to a single asset. This is where the idea of compounding becomes important. Cash flow from one investment may become capital for another investment. One property can potentially become part of a broader portfolio. And over time, multiple investments can create multiple potential sources of income and equity growth. Ownership → Income → Reinvestment → Growth That's the long-term concept. It's not about finding one perfect deal. It's about understanding the fundamentals, evaluating opportunities carefully and consistently making decisions that align with your overall investment strategy. What Does Passive Real Estate Investing Really Mean? Passive doesn't mean risk-free. It also doesn't mean investors can simply invest and forget about the investment. Every real estate investment carries risk, including the potential loss of capital. Market conditions can change. Property performance can vary. Financing costs can change. Occupancy can decline. Renovation costs can exceed expectations. That's why investor education matters. Before investing, it's important to understand: The property and market The sponsor's experience The investment structure The business plan The financing The projected hold period The potential risks The fees and expenses The distribution structure The exit strategy The goal isn't simply to find a property that looks exciting. The goal is to understand what you're investing in. The Bigger Picture: Building Long-Term Wealth The wealthy don't typically build wealth from one source of income alone. They often build systems around ownership, investing and multiple sources of income. For investors who have the appropriate risk tolerance, financial capacity and eligibility, passive multifamily investing can be one potential component of a broader long-term investment strategy. The objective isn't a quick win. It's about putting capital to work, evaluating opportunities thoughtfully and building a strategy that can evolve over years and decades. So the next time real estate investing comes to mind, don't automatically think about tenants, toilets and termites. Think about ownership. Think about income. Think about long-term wealth building. And think about what it could look like to participate in real estate without taking on another full-time job. Investor Takeaway Multifamily investing isn't simply about buying a big building. It's about understanding how a real estate asset can potentially generate value through cash flow, appreciation, loan paydown and potential tax benefits. For qualified investors, passive multifamily investing can offer a way to participate in larger real estate opportunities while an experienced team manages the day-to-day property operations. The right strategy will be different for every investor. But the first step is education. Understand the fundamentals. Ask questions. Evaluate the risks. Then decide whether the strategy fits your goals. Have Questions About Your Investment Strategy? Want to learn more about passive multifamily investing or how these principles may apply to your investment strategy? Let's talk. If you have gains from another property, ask the Next Legacy Group team about 1031 exchanges and whether rolling eligible gains into another real estate investment may fit your strategy. We're always happy to talk real estate, investing and long-term wealth building!

By: Laura DeVaney | Co-Founder | Next Legacy Group Would you put your own money into this deal? Laura DeVaney shares the questions she believes investors should ask before committing capital to a multifamily investment—from break-even points and due diligence to the team responsible for executing the business plan. The Question I Ask Before Investing in Any Deal Recently, our team at Next Legacy Group reached an important milestone: we closed on a multifamily property. Reaching the closing table is exciting. The underwriting has been reviewed, inspections are complete, financing has been negotiated and the documents are signed. But the path to closing is rarely perfectly straight. There are unexpected issues, difficult conversations, changing assumptions and moments when you have to stop and reassess. That process reinforced something I strongly believe about multifamily real estate investing. When an opportunity comes across my desk, I don't want my first question to be: "What is the projected return?" Returns matter. We're investing to make money. But there's a more important question: "Would I put my own money into this deal?" And perhaps an even better question: "Would I feel comfortable putting my family's money into it?" That question changes how you evaluate an investment opportunity. Investors Often See the Beginning and the End As an investor, you may see an opportunity when it's presented. Later, you hear: "We closed." What you don't always see is everything that happens in between. That includes: Underwriting revisions Lender conversations Property-management discussions Inspections Due diligence Challenging assumptions Unexpected issues Decisions about whether to move forward or walk away Buying a multifamily property isn't simply about finding a building with attractive numbers. It's about determining whether those numbers can hold up under real-world conditions. A Spreadsheet Is Only the Beginning At Next Legacy Group, we spend significant time analyzing potential investments. We look at: Occupancy Rental income Operating expenses Debt service Capital expenditures Break-even points Multiple potential scenarios But a spreadsheet has limitations. A spreadsheet tells you what should happen. Due diligence helps reveal what might actually happen. During our recent acquisition, we discovered that many residents had pets that weren't reflected in their rental agreements. That seemingly small detail revealed more than one opportunity. It helped identify potential additional property revenue through properly documented pet fees. It also helped us better understand the people living at the property. An underused basketball court, combined with the needs of residents, created an opportunity to consider whether the space could better serve the community as a dog park. That's what good due diligence can uncover. Sometimes the same information that reveals a potential revenue opportunity can also reveal an opportunity to improve the property for residents. Ask the Hard Questions Before You Invest Underwriting shouldn't stop when the model looks attractive. That's when the questions should get harder. What happens if: Occupancy falls? Expenses increase? Renovations cost more than expected? Rent growth is weaker than projected? Insurance or property taxes increase? The market changes? The exit environment looks different several years from now? One of the most valuable questions we can ask is "What if we're wrong?" Not because we expect the plan to fail. Because we want to understand how the investment performs when the plan is tested. Know Where the Deal Breaks One of the areas I have become increasingly interested in is something that doesn't always receive enough attention in an investment presentation: The break-even point. I don't only want to know how a property performs at 95% occupancy. I want to know what happens at: 90% 85% 80% At what point does the property stop comfortably supporting itself? That tells me something a projected return alone cannot: How much margin for error do we have? Real estate rarely follows a spreadsheet perfectly. Interest rates move. Insurance premiums increase. Taxes change. Repairs happen. Residents move. Markets shift. As investors, we need to understand not only how an investment performs when everything goes according to plan, but also how it behaves when it doesn't. The Property Is Only Part of the Investment A good property alone doesn't create a good investment. Someone has to execute the plan. Someone has to: Collect rent Control expenses Oversee maintenance Manage renovations Monitor occupancy Identify problems Recognize opportunities Adjust when conditions change That's one reason being vertically integrated matters to us. At Next Legacy Group, our approach includes in-house property management, construction and maintenance teams. This provides greater visibility into what's happening at the property and more direct control over how the business plan is executed. But for me, the bigger advantage is alignment. The people making decisions about the investment are closely connected to the people managing the property, completing the work, interacting with residents and seeing what is happening day to day. That matters because a business plan written before closing will never anticipate everything that happens afterward. When occupancy changes, an expense comes in differently than expected or we identify an opportunity to improve the property, our teams can communicate directly and adjust. That's why I believe the team operating the property matters just as much as the property itself. Ask Yourself: Do I Trust the Team? For me, the question isn't simply: "Do I believe in this business plan?" It's also "Do I trust the team responsible for executing it?" Because eventually, something unexpected will happen. And when it does, I want the people responsible for the investment and the people operating the property working toward the same goal. Closing Is Only the Beginning Before closing, the central question is, "Should we buy this property?" After closing, it becomes, "How do we make this property perform?" That shift matters. The building doesn't know what the spreadsheet says. Residents don't know what the business plan says. The property simply operates every day. Now the job is execution. That means working with our property management, construction and maintenance teams, watching expenses, understanding resident needs, evaluating improvements and continually measuring actual performance against the plan. Buying the property gets the announcement. Operating it well creates the outcome. Investor Capital Makes It Personal At Next Legacy Group, we're entrusted with capital that may represent years — sometimes decades — of someone's work. That money may have come from: Building a business Growing a career Selling a property Making disciplined financial decisions year after year I don't take that responsibility lightly. When someone chooses to invest alongside you, they're placing trust in your team. We can't eliminate investment risk. No one can. What we can do is: Ask better questions Challenge assumptions Stress-test the numbers Conduct thorough due diligence Surround ourselves with experienced professionals Be willing to say no when an opportunity no longer meets our standards Sometimes the best investment decision is the deal you choose not to do. The Small Decisions Matter There is a verse in Alma that has always resonated with me: "By small and simple things are great things brought to pass." The more I build this business, the more I understand that principle. A closing may look like one big accomplishment. But it isn't. It's hundreds of small decisions that eventually create one meaningful result: One more question One more phone call One more document reviewed One assumption challenged One expense investigated One difficult conversation One decision not to accept the easy answer Individually, those actions may seem small. Together, they become something much bigger. More Than a Closing Reaching the closing table was an important milestone. But the greater satisfaction comes from knowing how we got there. We asked hard questions. We challenged the numbers. We worked through the unexpected. And we kept returning to the standard I carry into every opportunity: "Would I put my own money into this deal?" When investors choose to invest alongside Next Legacy Group, they're trusting us with something they worked hard to build. I want to honor that trust—not only in the investments we choose, but in how we operate them after closing. That's what building Next Legacy Group means to me: Making good decisions, over and over again, with people we trust and for people who trust us. This closing is one milestone—and the beginning of the next chapter we're building together. Want to Learn More About Multifamily Investing? If you're exploring multifamily real estate investing, continue building your knowledge before making an investment decision. Join Next Legacy Group's Friday Night Lights, a free weekly educational webinar where investors and prospective investors can learn more about multifamily investing, market trends, investment strategies and real-world deal analysis. The webinar is currently held every Friday at 7:00 PM ET. LEARN MORE ABOUT MULTIFAMILY INVESTING → https://funnel.nextlegacy.net/home REGISTER FOR FRIDAY NIGHT LIGHTS → https://timeformorezoom.com/ About Laura DeVaney Laura DeVaney is the co-founder of Next Legacy Group and a multifamily real estate investor. Her investment philosophy centers on thoughtful decision-making, due diligence, legacy and responsible stewardship of investor capital.

By: Jason Ottilo | Co-Founder | Next Legacy Group Jason Ottilo shares the story behind Next Legacy Group and its mission to open the door to real estate investing education. Somewhere right now, in a room you and I were never invited into, a group of wealthy investors is reviewing an investment opportunity that may never appear in your 401(k), never show up in your brokerage account and may never be mentioned by your financial advisor. It may generate income. It may offer potential tax advantages. And by the time the general public hears about an opportunity like it, the seats may already be gone. I know that room exists because, for most of my life, I was standing outside of it too. Five People. One Shared Regret. Next Legacy Group didn't start in a boardroom. It started with five people — Teresa Loos-Tedrow, Tim Gramling, Laura DeVaney, Justin Bennett and me—who kept crossing paths through different commercial real estate opportunities. We had been part of groups that, frankly, didn't work. Wrong priorities. Wrong incentives. Wrong people at the top. Some of that was on the groups. Some of it, if I'm being honest, was on us for not asking harder questions sooner. But every time the five of us ended up in the same conversation, something kept surfacing. We were all close in age. We had all discovered real estate around the same season of life. And every one of us carried the same quiet frustration: Nobody told us this existed when we were younger. Nobody told us real estate could potentially produce monthly cash flow. Nobody explained depreciation or how the tax code can treat ownership of real property differently from ordinary employment income. Nobody showed us there was a world beyond the stock market—a world of apartments, self-storage and other hard assets that wealthy investors have used as part of long-term wealth-building strategies. We each had to stumble into it on our own. Years later than we should have. After decades of doing exactly what we were told: Work hard. Save. Put it in the 401(k). Hope. That shared regret became our foundation. We wanted to become the people we needed twenty years ago. The Opportunities Most People Are Never Taught About Here's what we believe every investor should understand: Wealth building isn't limited to the investments most people hear about first. Private, income-producing assets—including real estate—can play an important role in a diversified long-term investment strategy. Here are four concepts we believe investors should understand: 1. Cash Flow Well-operated rental properties can generate recurring income, potentially providing cash flow that isn't directly tied to trading hours for dollars. 2. Hard Assets Real estate is tangible. Unlike an investment that exists only as a number on a screen, real estate represents physical property that can be owned, operated and improved. 3. Tax Considerations Real estate ownership can involve tax considerations such as depreciation, cost segregation and capital gains treatment. Tax treatment varies by individual circumstances, so investors should always consult their own qualified tax professional. 4. Long-Term Perspective Private real estate doesn't reprice every second on a public exchange. That can allow investors to focus more on property fundamentals, operations and long-term strategy rather than reacting to every daily market headline. The Problem Isn't Always the Opportunity. Sometimes, it's access. None of these concepts are secrets to experienced investors. But they can be difficult for everyday investors to discover because of: Minimum investment requirements Limited networks Complex terminology Lack of investor education Limited access to experienced operators Our goal is to help change that. Teachers. Engineers. Nurses. Small business owners. People like us. Yes, We're a Business. That's the Point. Let me address it directly. Next Legacy Group is a business, and businesses need to make money to continue operating. If the company doesn't sustain itself, the mission can't continue. But there's an important distinction: There's a difference between a company that exists to make money and a company that makes money so it can keep serving its mission. For us, that mission is education. It's opening the door. It's helping people understand how this world works. It's handing people the map we wish someone had handed us years ago. The money keeps the lights on. The mission is what gets us out of bed. The Legacy We're Actually Building We chose the name Next Legacy Group deliberately. It isn't about our legacy. It's about yours. It's about the next generation of your family knowing more about money than previous generations had the opportunity to learn. Every webinar we host. Every article we write. Every conversation we have with a first-time investor. Each one is an opportunity to reach back through time to the younger versions of ourselves who were standing outside that room. And hold the door open. You don't have to invest with us to learn from us. That's not a marketing line. That's the mission. So Here's My Question for You? Think back twenty years. If someone had sat you down and explained how experienced investors approach wealth building and real estate, would you have listened? You can't go back and have that conversation. But you can become the person in your family who finally has it. What do you wish someone had taught you about money when you were younger? Your answer could be the exact thing someone else needs to hear. The Door Is Open. Come learn what's inside the room. Next Legacy Group hosts Friday Night Lights, a free weekly educational webinar where investors and prospective investors can learn more about real estate investing, market trends, multifamily properties and investment strategies. The company's website currently describes the webinar as an open educational conversation held every Friday at 7:00 p.m. ET. Join Friday Night Lights Every Friday at 7:00 PM ET Join Friday Night Lights on Zoom About Jason Ottilo Jason Ottilo is a co-founder of Next Legacy Group and a real estate investor with experience in multifamily properties and other real estate assets. Jason has invested in more than 500 multifamily units and also owns an RV park in Arkansas. His experience has shaped his commitment to helping investors better understand real estate and long-term wealth-building strategies. A Note From Next Legacy Group Our goal is simple: Provide education. Open the door. Help investors ask better questions. Whether you're exploring real estate investing for the first time or looking to deepen your understanding of alternative investments, we believe the first step is education. Because you can't make an informed decision about a room you've never been shown. Important Disclaimer: This article is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering is made only to qualified investors through official offering documents. Real estate investing involves risk, including the potential loss of principal. Investors should consult their own financial, legal and tax professionals before making investment decisions.