How Elite Operators Multiply Wealth Without Selling Winners
Elite real estate operators often face a familiar dilemma: how to access capital for new investment opportunities without selling their top-performing assets. The traditional route of selling properties to fund deals is financially and emotionally taxing, especially when dealing with successful properties you've worked hard to cultivate. Fortunately, Medalist offers a sophisticated solution that allows operators to retain their best-performing properties while unlocking growth capital. Here's how it works—and how it could transform the way you grow your portfolio.
The Medalist Model Explained
At its core, the Medalist model revolves around partnership and portfolio optimization. Instead of selling high-performing assets outright, operators can contribute those properties to Medalist's Real Estate Investment Trust (REIT) Operating Partnership in exchange for Operating Partnership (OP) Units. This innovative structure provides a way to retain ownership benefits, defer taxes, and access liquidity for future investments.
Below, we’ll break down the key elements of this model and explain how they align with the needs of professional real estate operators.
1. Retain Your Best Properties
The lynchpin of the Medalist strategy is retention. When you contribute a top-performing property into the REIT’s Operating Partnership, you receive OP Units in return—essentially shares of ownership in the broader portfolio. These units allow you to:
Continue growing your equity in the property without losing it to an outright sale.
Diversify your portfolio, as your OP Units provide exposure to the performance of the REIT's entire asset pool.
Retain upside potential, participating in the future appreciation of your property and others.
With this approach, your best investments stay in your portfolio while you gain access to broader diversification and professional asset management.
2. Tax-Deferred Wealth Growth
One of the model’s most compelling advantages is its inherent tax-efficiency. By moving properties into the REIT Operating Partnership, you can defer capital gains taxes—a significant benefit for operators looking to preserve wealth and reinvest it strategically.
No immediate tax hit: Unlike selling, where gains are taxed right away, this structure delays taxation until a future liquidity event, such as selling OP Units.
Improve cash flow using tax savings to put more money into income-producing investments.
Streamline tax planning for long-term wealth strategy.
This tax deferral empowers operators to grow their wealth without seeing significant portions of it eroded by immediate tax obligations.
3. Access Growth Capital Without Starting Over
The Medalist model’s biggest value may be its ability to fuel your next big deals. It allows you to access the liquidity you need for growth without restarting from scratch.
Unlock working capital using your OP Units as leverage to fund new acquisitions.
Maintain continuity and scale. Instead of selling your top properties to fund deals, you can carry forward established income streams and equity.
Importantly, this approach avoids the "feast or famine" cycles of deal-by-deal fundraising that often challenge growth-focused operators. With consistent access to capital and stable income from retained properties, you can focus on strategic expansion rather than scrambling to secure funding.
4. Optimize Portfolio Performance
While enabling retention of top assets, the Medalist model also provides a structured way to eliminate or optimize underperforming parts of your portfolio.
Sell underperforming assets: Use Medalist's liquidity options to offload high-maintenance or nonstrategic properties.
Reinvest in better opportunities: Use proceeds from these sales to focus on higher-yield, lower-risk investments.
Elevate your overall ROI: Refining your portfolio ensures that both equity growth and income increase over time.
By enhancing property selection and refining investment strategy, the Medalist model simplifies asset management and enables sustainable wealth-building.
Case Examples: How the Model Works in Real Life
Case 1: Unlocking Liquidity for Expansion
A seasoned real estate operator with a $150M property portfolio decides to integrate into the Medalist REIT Operating Partnership. By contributing two top-performing office buildings worth $50M, they receive OP Units of equal value. The operator uses the tax-deferred liquidity from this transaction to fund a new $75M multifamily project without selling their prized assets. Over time, as both the REIT and their new investments grow, the operator enjoys diversified income and equity appreciation—without losing the original foundational properties that drove their success.
Case 2: Portfolio Reset Made Simple
A family office managing a legacy real estate portfolio faced challenges with liquidity and aging assets. After migrating underperforming properties into the Medalist model, they accessed immediate liquidity while deferring significant taxes. This allowed them to pivot into higher-growth industrial assets without disrupting income. Additionally, the family office retained ownership in its best properties under the REIT’s professional management, freeing them from day-to-day operational demands.
Advantages of the Medalist Model
To summarize, here are the standout benefits:
Retain equity: Keep legacy properties driving value without forgoing growth opportunities.
Defer taxes: Use a tax-efficient structure to preserve wealth and reinvest smartly.
Access liquidity: Secure funding for expansion or portfolio improvements without starting from zero.
Professional management: Leverage Medalist’s expertise to optimize property performance.
Simplified planning: Streamline estate planning with flexible and scalable solutions.
Final Thoughts: Grow Without Selling Your Best Investments
For elite operators, the Medalist model is the perfect balance of continuity, growth, and efficiency. By allowing you to retain thriving properties, defer taxes, and reinvest in future opportunities, this approach flips the script on traditional real estate strategies.
Imagine building wealth without the wrenching decisions of parting with your most successful assets. With the Medalist model at your side, you can grow your legacy while keeping your winners exactly where they belong—in your portfolio.
It’s not just about doing business differently—it’s about doing it smarter. Are you ready to redefine what growth means for your future? Start your next chapter with Medalist.
