Where Smart Investors Are Placing Capital in 2026

The real estate market is in a transition phase, and not all asset classes are created equal right now.

In this episode of the Major League Real Estate Podcast, Nate Sosa and Thomas Castelli sit down with Brian Burke, CEO of Praxis Capital, to break down what’s really happening across multifamily, senior housing, and data centers, and where investors should (and shouldn’t) be placing capital.

If you’re wondering whether now is the time to invest or wait, this conversation provides a clear framework for making smarter decisions.

Brian Burke’s Real Estate Journey

Brian Burke has been investing in real estate for over three decades, starting at just 20 years old by flipping houses with little experience, no network, and limited capital.

Over time, he expanded into:

• Multifamily housing
• Development and construction
• Senior housing
• Commercial real estate

Through that experience, Brian refined his focus by identifying what he does best, ultimately narrowing into multifamily and senior housing as core competencies.

The Current State of Multifamily: “A Traffic Collision”

Brian describes today’s multifamily market as:

“A traffic collision in the middle of a four-way intersection… massive wreck and carnage everywhere.”

Over the past few years:

• Interest rates spiked rapidly
• Cap rates expanded
• Refinancing became difficult
• Property values declined

As a result, many deals have struggled, and the market is still working through that disruption.

Why Brian Is Still Waiting

Despite what some investors believe, Brian does not think now is the ideal time to jump into large multifamily deals, especially syndications with shorter timelines.

Instead, he’s watching for key signals:

• Return of consistent rent growth
• Stabilization in interest rates
• Reduced new supply
• Lower vacancy rates

Until those conditions return, he believes patience is the better strategy.

When It Does Make Sense to Buy Multifamily

Not all multifamily investing is off the table.

Brian makes an important distinction:

Long-Term Investors (10–40 Year Horizon)

• Small properties (duplexes, 4-plexes, 10–50 units)
• Buy-and-hold strategy
• Let tenants pay down debt over time

This can be a great time to buy due to lower purchase prices.

Short-Term Syndications (3–7 Years)

• Larger apartment complexes
• Value-add strategies
• Reliance on appreciation

This is where risk is still high right now.

You Don’t Need to Time the Bottom

One of the most valuable insights from this episode: You don’t need to buy at the bottom to win.

Brian explains that historically:

• After major downturns, real estate enters long bull runs (10–15 years)
• Entering after the bottom still allows strong returns
• The bigger risk is being late on the exit, not the entry

The Bigger Risk: Unknowns Like AI

One reason Brian is cautious about multifamily is uncertainty, especially around AI.

Questions still unanswered:

• Will AI reduce employment in key renter demographics?
• Will income growth slow for younger renters?
• How will demand shift?

Rather than guessing, Brian prefers to wait for clarity.

Why Brian Is Bullish on Senior Housing

While multifamily remains uncertain, Brian has shifted capital into senior housing, including:

• Assisted living
• Skilled nursing
• Memory care

Why Senior Housing Stands Out

Unlike other asset classes, senior housing benefits from:

1. Strong Demographics

• Rapid growth in the 80+ population
• Demand growing significantly faster than overall population

2. Limited New Supply

• Few new facilities being built
• High construction costs limit competition

3. Reduced Exposure to AI Risk

• Demand is not tied to employment
• Residents rely on accumulated wealth, not wages

4. Clear Recovery Trend

• Sector already bottomed post-COVID
• Occupancy and income are rising

This creates a rare setup: post-downturn recovery with strong long-term demand.

A Shift Back to Cash Flow Investing

Another major theme: investors are prioritizing cash flow over speculation.

Brian notes that many investors are moving away from:

• Low cash flow deals
• Heavy reliance on appreciation
• “Pro forma” projections

And toward:

• Consistent distributions
• Real, tangible returns
• Lower-risk income strategies

In senior housing, his focus is:

Cash flow first, upside second.

Data Centers: Opportunity or Hype?

Data centers are one of the most talked-about asset classes due to AI growth.

While Brian sees opportunity, he also raises concerns:

Pros

• Strong demand growth
• High NOI growth projections
• AI-driven expansion

Cons

• Extremely capital-intensive
• Limited access for everyday investors
• Risk of overexposure and hype

His take: Data centers may be attractive, but they are not always practical or accessible for most investors.

Tax Benefits: Don’t Let Them Drive the Deal

A key takeaway for both LPs and GPs: Tax benefits should never be the primary reason to invest.

Brian cautions against deals that lead with:

• Bonus depreciation
• Cost segregation
• Tax savings as the main pitch

Instead:

• A good investment should stand on its own
• Tax benefits are a bonus, not the foundation

As he puts it: You can get the same tax benefits from a great deal as you can from a bad one.

Advice for Sponsors in Today’s Market

For operators and syndicators navigating this environment:

• Focus on realistic underwriting, not optimistic projections
• Avoid rushing into deals just to stay active
• Prioritize investor capital preservation
• Maintain financial strength so you can wait out bad markets

The best sponsors are those who don’t need to do deals to survive.

Advice for Passive Investors (LPs)

If you’re placing capital today, Brian emphasizes one thing above all:

The sponsor matters more than the deal.

Look for:

• Experience and track record
• Financial stability
• Long-term consistency

A strong sponsor will bring strong deals, while a weak one can ruin even a good opportunity.

How AI Is Changing Real Estate Operations

While AI introduces uncertainty in some areas, it’s already improving operations.

Brian’s firm uses AI for:

• Tenant communication and leasing
• Maintenance triage
• Rent collection follow-ups
• Pricing optimization based on demand
• Marketing automation

The result:

• Lower costs
• Faster response times
• More efficient operations

Final Thoughts: Patience Creates Opportunity

The market is resetting, and with that reset comes opportunity.

But timing matters.

Brian’s final advice is simple: There will be more opportunities ahead, and likely better ones, so don’t feel pressured to invest too early.

Sometimes, the smartest move is to wait.