260: The “Market Metronome” for Deal Stress Tests | Christine Kwasney

Today’s show is part of our Community Spotlight Series, where we feature PassivePockets members who share hard-won lessons to help other LPs invest smarter. Christine Kwasny joins Chris Lopez to walk through a detailed retrospective on her syndication portfolio, what she thought she was buying, what actually happened, and what she’ll do differently going forward.

Christine started investing actively in 2008, building a Portland-area rental portfolio (single-family renovations that eventually grew into fourplexes). After moving abroad in 2013, she shifted into syndications in 2019–2020 but like many investors, she later found that several 2021–2022 vintage deals didn’t play out the way pro formas suggested, which triggered a deep review of her entire process.

In this conversation, Christine breaks down the biggest errors she sees investors make (including “set it and forget it”), how distributions can mask problems, how LPs can quietly fall down the capital stack, and how she used AI to analyze years of offering materials and quarterly reports across 30+ investments. She also shares her “Market Metronome” framework, a simple way to sanity-check underwriting assumptions against real historical ranges and market cycles.

Key Takeaways

  • “Passive is a tax and legal term, not a verb”: why syndications often require more scrutiny than owning your own rentals
  • How distributions and quarterly reports can create false confidence—and what to look for in the core updates
  • Capital stack drift: how mezz/preferred equity can change your risk even without a capital call
  • Using AI to accelerate due diligence: summarizing OMs, tracking quarter-by-quarter changes, and stress-testing assumptions
  • The “Market Metronome”: a practical way to pressure-test pro formas against historic highs/lows and cycle reality

Disclaimer

The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk. Nothing here is investment, tax, legal, or financial advice; consult qualified professionals. Past performance is not indicative of future results. This podcast may include paid advertisements or promotional materials for sponsors, funds, or offerings and should not be interpreted as a recommendation or endorsement by PassivePockets, LLC or affiliates. Conduct your own due diligence and consider your financial situation before engaging with any advertised products or services. PassivePockets, LLC disclaims all liability for any actions taken based on the information presented.

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