Live from Nashville: Real Estate, Taxes & The Power of “Smart Debt”
On this episode of The Financial Sandbox, Herb’s in Nashville overlooking the Nissan Stadium talking with Mike Hollister of NexPoint—a CPA and 20-year veteran in the real estate and alternative investments space.
We dig into:
- Why NexPoint pivoted from “can’t lose” multifamily and self-storage into U.S. specialty manufacturing (semiconductors, life sciences, medical devices)
- The big difference between being a landlord who gets paid last vs. owning assets with long-term triple-net leases where the investor gets paid first
- How debt, basis, and depreciation really work inside a 1031 exchange and Delaware Statutory Trusts (DSTs)
- Why some investors should stop saying “I never want debt” and start asking, “Where am I getting tax shelter and predictable income in retirement?”
- Estate planning advantages of DSTs, step-up in basis, and the “swap ‘til you drop” strategy
If you work with real estate investors—or you are one—this episode will help you rethink:
- How you use leverage
- How you build truly passive income
- How you keep more after taxes, not just earn more before them
Tune in to hear “rough financial talk in the sandbox” with someone who’s managing $30B+ in assets, six kids, and a sense of humor.
Mike Hollister has worked in financial services since 1998, beginning as a CPA before moving into wealth management and investment strategy. As Regional Director at NexPoint, he specializes in tax-efficient and alternative investments designed for long-term wealth preservation. Since joining the firm in 2015, he’s contributed to NexPoint’s $15B portfolio spanning multifamily, storage, and single-family real estate assets. Mike holds a B.A. in Accounting from Western Washington University and FINRA Series 7 and 66 licenses. He and his wife live in Bellingham, WA, with their six children.
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Because investor situations and objectives vary this information is not intended to indicate that an investment is appropriate for or is being recommended to any individual investor.
This is for informational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities.
This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.
There are material risks associated with investing in private placements, Delaware Statutory Trusts (“DSTs”) and real estate securities including the potential loss of the entire investment principal, illiquidity, tenant vacancies impacting income and revenue, general and real estate market conditions, lack of operating history, interest rate risks, competition, including the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and investors should read the PPM carefully before investing paying special attention to the risk section.
Risks associated with 1031 exchange- A 1031 exchange has an identification period of 45 days from the sale of the relinquished property to identify a potential replacement property or properties depending on the value of the previous property. To defer all capital gains tax, you must reinvest the entire net proceeds from the sale of the relinquished property into the replacement property and acquire debt on the new property that is equal to or greater than the debt on the property that was just sold and relinquished.
The views expressed here are solely those of the author and do not necessarily reflect the opinions of Thornwood Financial, Concorde Investment Services or any other affiliated entity.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Insurance offered through Concorde Insurance Agency Inc. (CIA). Thornwood Financial is independent of CIA and CIA.
