There’s an important nationwide rule taking effect March 1, 2026 that will impact many cash and entity-based residential transactions. Here’s the tight, practical version.

New FinCEN Reporting Rule — What You Need to Know
If a residential property (including residential lots) is purchased:

By an entity (LLC, corporation, partnership, or certain trusts), and

Without traditional financing (cash, private money, some hard-money deals),

a FinCEN report is mandatory.

No report = no funds released at closing.

How to stay compliant

Disclose entity purchases at contract, not the week of closing

Have ownership and control info ready upfront (generally 25%+ owners and entity signers)

Expect additional paperwork on cash and investor deals

Coordinate early with your title company or closing attorney

Official guidance from FinCEN:
https://www.fincen.gov/rre

For a visual walkthrough of what this looks like and why it matters, here’s a great explainer for visual learners:
https://youtu.be/509Xqze7gDw?si=QJbSE-29Q6bLEJY-


Why Louisville Is a Different Market (and Why That Matters)
I want to take a moment to give real credit where it’s due.

Harry Borders has been one of the most important strategic influences on real estate investing in Louisville. Not because of any single structure—but because of how much practical, nuanced strategy he’s brought into the market and then freely shared.

Out-of-state investors are usually familiar with tools like trusts, 1031 exchanges, and self-directed IRAs. What consistently surprises them here is the depth of application: novations, assignments, lease options, land contracts, creative financing, reverse 1031s—and knowing when each tool actually makes sense.

Just this week, I reached out to Harry to learn more about a 721 exchange. In simple terms, a 721 allows a property owner to contribute real estate into a REIT or operating partnership in exchange for partnership units instead of cash—deferring capital gains while shifting into a more passive, diversified position. That was new to me. Harry walked me through how it works, when it's appropriate, and when it's not.

That’s the pattern. Harry stays curious, digs into how things are actually executed at closing, asks the right questions, then turns around and helps others apply that knowledge responsibly in their own businesses.

When investors from smaller or adjacent markets come to KREIA meetings or other Louisville events, they’re often blown away—not just by the technical knowledge in the room, but by how openly people collaborate and share. Louisville punches above its weight, and a lot of that culture traces back to Harry’s willingness to teach and empower.

Personally, I sit down with Harry at least once a year to review my numbers—what I’m doing right, what I should change, how to protect myself, and how to think ahead from both a legal and tax standpoint. I take that guidance straight to my CPA. That approach has shaped how I run my business.

These thoughts are really an extension of the same philosophy: learn something useful, understand how it applies, and share it. I try to run my business the same way—open door, take time, help people think clearly. That mindset came directly from watching how Harry operates.

Local Inventory Snapshot

Total inventory: 3,082 active listings

Multifamily inventory is tightening, with 88 properties on the market.

53 of those have been sitting 60+ days, pointing to motivated sellers and pricing friction

Demand Is Quietly Picking Up

Pending home sales jumped +3.3% month-over-month in November

Fourth consecutive monthly gain, matching the longest streak since 2020

Contract activity improved across every U.S. region

Pending Home Sales Index: 79.2, highest since February 2023

Capital Is Moving (Pay Attention Here)

This isn’t abstract anymore. Bank of America has officially begun recommending clients allocate up to 4% of their portfolios to Bitcoin and crypto.

When institutions of that size widen what they consider acceptable assets, it’s usually an early signal. Capital doesn’t flip overnight—it rotates. Historically, that rotation tends to include scarce, durable, real-world assets over time.

After my recent note on the tokenization of real-world assets, there was a fair amount of interest. If you want a clear, high-level explainer on what that actually means, here’s a solid overview:
https://www.youtube.com/watch?v=hVwyrY2TKqU&t=1s