🦅 EagleCap Oct Newsletter | Fed Rate Cuts & Texas Trips
- Jarom A Pratt
- Oct 16
- 5 min read
In September, the Fed’s rate cut is sparking renewed investor activity, our Texas acquisitions are heating up, and portfolio performance continues to strengthen. From tax-smart investing strategies to real progress on-site, this month shows why discipline and timing matter more than ever.
Summary
Fed cuts rates: cheaper capital is back on the table; early movers stand to benefit.
Opportunity Zones revived: new legislation extends the program permanently, boosting long-term tax incentives.
Smarter underwriting: top investors are stress-testing deals at 7%+ interest rates to future-proof returns.
Texas deal in motion: Our team has visited multiple properties, and a 172-unit Pasadena asset could go under contract soon.
Invest with retirement funds: learn how Self-Directed IRAs and Solo 401(k)s let you diversify beyond Wall Street.
Portfolio Progress: Stone Ridge reaches 24 units leased; The Avenues nears final renovations and exterior completion.
Looking forward: new acquisition ahead, continued property improvements, and a trusted custodian partner for retirement investors.
Market Update
New Tailwinds for Real Estate Investors
Fed Rate Cut | Fuel for Renewed Momentum
For the first time since 2024, the Fed cut interest rates this month, signaling cooling inflation and a possible shift back to cheaper capital.
Lower Treasury yields mean DSCR loan rates are likely to drop, improving cash flow and refinancing options. Early movers could lock in strong spreads before prices rise again.
Basically: cheaper debt, better deals, and rising competition.
Opportunity Zones | Stronger, Smarter Tax Shelters
The newly introduced “One Big Beautiful Bill” permanently extends the Opportunity Zone program, finally giving investors long-term stability on one of real estate’s best tax incentives.
With capital gains deferral, tax-free growth after 10 years, and expanded investment categories, OZs are once again a powerful play for equity growth in targeted areas.
Rate-Proofing Deals | Underwriting at 7%+
The smartest investors aren’t counting on rate cuts alone. They are stress-testing every deal at 7–7.5% interest rates to protect margins and future-proof returns.
This disciplined underwriting ensures that even in volatile environments, projects stay profitable and lenders stay confident.
The goal: perform at 7%, profit at 6%.
Bottom line: Between lower rates, stronger tax incentives, and smarter underwriting, the landscape is shifting back toward opportunity, but those who prepare now will capture the upside first.
Investor Opportunities
On the Ground in Texas
Our deal pipeline is stronger than ever. Over the weekend, our team flew to Texas to visit several promising properties in Houston, meeting directly with brokers and property managers to strengthen key relationships.
The highlight of the trip was a 172-unit property in Houston/Pasadena, TX, which we are working to move under contract within the next week or so. Our goal is to close before year-end (subject to lender timelines).
This property has all the markers we look for through our Trusted Legacy Wealth System—the proven framework we’ve refined since 2019 to source, operate, and scale high-performing multifamily investments. Some of the highlights are:
Operational value-add. Better management, Lower expense ratio, Higher Net Operating Income (NOI)—the key to forced appreciation.
Discounted Price. The Seller is in distress and willing to sell for $49k per door, compared to comps selling at $75k+ per door
Assumable 3.43% loan. With interest rates still hovering close to 7%, this loan would slash that in half.
If you’re interested in learning more about active or passive participation in future opportunities, reach out directly.
*Legal Disclaimer: This is not a solicitation for investment.
Investor Insights
How Self-Directed IRAs and Solo 401(k)s Work
(and why most investors miss this opportunity)
Most investors keep their retirement funds locked into a single asset class—Wall Street products like stocks, bonds, and mutual funds—without realizing they can reduce portfolio risk by diversifying with other asset classes.
With a Self-Directed IRA (SDIRA) or Solo 401(k), you can diversify those same funds in real assets like stabilized multifamily real estate, often with 15-20%+ Average annual returns. That means your retirement dollars can work harder and generate cash flow, without relying on the stock market rollercoaster.
Here’s the breakdown:
Self-Directed IRA (SDIRA) – Offers flexibility to invest in real estate, private placements, or other alternative assets. Funds remain in a tax-advantaged account while you diversify your portfolio.
Solo 401(k) – Designed for self-employed individuals or business owners with no full-time employees. It offers higher contribution limits, loan options, and more control over your investments.
The catch? Most investors never hear about this because traditional brokerages don’t offer these accounts. But custodians like Madison Trust make it simple to set up and manage your SDIRA or Solo 401(k).
EagleCap spent months interviewing and vetting custodians to find a partner we can trust to serve those who trust us, and Madison Trust rose to the top. We don’t receive any compensation for this recommendation, just the satisfaction of helping our investors access a trusted resource.
Learn more about how it works and how to get started:
Next month: We’ll break down Solo 401(k)s in detail, covering tax advantages, contribution limits, and how they can accelerate your path to long-term wealth.
Deal Activity
Stone Ridge Apartments
Occupancy: Up to 24 of 33 units leased (from 20 last month), reflecting strong ongoing absorption.
Operations: Handling tenant work orders and resolving routine post-construction adjustments common to new developments.
Performance: Rent targets remain on pace, and cash flow continues to stabilize as we move closer to full occupancy.
Key takeaway: Stone Ridge has become a model for future out-of-state value-add projects, helping us refine construction sequencing, cost control, and remote Property Management, to protect returns and reduce downtime.
The Avenues
Leasing: Demand for 1-bedroom units (13 & 14) remains soft during exterior construction, but overall performance is steady.
Renovations: Unit renovations were on hold most of the month while the construction team dealt with serious electrical issues at another building, where an ancient electrical meter burned up, forcing the replacement of the entire system from the PUD connection into each electrical panel.
Siding, painting, and landscaping are underway to improve curb appeal before winter.
Temporary site disruption has impacted walk-up traffic, but the upgrades will position the property for stronger rent growth once complete.
Next steps:
Finalize exterior and curb appeal improvements to boost leasing velocity.
Complete the last 3–4 interior renovations, moving the property toward long-term stabilization.
Outlook: Once exterior work wraps up, we expect leasing to accelerate and NOI to rise as renovated units capture the proven higher rent premiums heading into early 2026.
Looking Ahead
Pasadena deal moving along: We expect to be under contract soon and will aim to close before year-end or early January. Stay tuned for details on this exciting opportunity.
Invest with your retirement funds: We now have a trusted custodian partner to help investors use Self-Directed IRAs and Solo 401(k)s to participate in future deals. Reach out if you’d like to learn how.
Thank you for following along: Your continued support allows us to pursue disciplined, high-return projects for you.
All the best,
The EagleCap Team
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