How do real estate development deals actually work for passive investors? And what makes them riskier than buying existing properties?

Dustin and Adam sit down with Eugene Gershman, a second-generation developer with 20+ years of experience who now partners with landowners across the country to bring projects from raw land to stabilized assets. Eugene explains the two-tier capital structure many developers use: early-stage “GP funds” (comparable to startup seed capital) where investors take more risk but participate in the sponsor’s profit sharing, followed by traditional LP investments once permits are secured and construction is priced.

He also shares his “kill list,” the specific deal-breakers that prompt him to walk away, and why stale construction plans and unexplained project delays are immediate red flags.

Learn how timelines, market cycles, and capital structures in development deals differ from investing in existing and stabilized assets.

Episode Release Notes & Resources:

• GIS Companies: https://giscompanies.co
• Eugene's podcast – Real Estate Development: Land to Legacy: https://giscompanies.co/podcast
• Eugene’s LinkedIn: https://www.linkedin.com/in/eugenegershman

Watch episode on YouTube: https://www.youtube.com/watch?v=SKIqg8SCfaI

See all Wealth Independence episodes at https://www.wealthindependencepod.com

Connect with Dustin:

• Big Spring Capital
• LinkedIn (/in/TheDustinBailey)
• Twitter/X (@TheDustinBailey)

Connect with Adam:

• Bidwell Capital
• LinkedIn (/in/AdamJPenn)

This show is for informational purposes only and is not financial, investment, legal, or tax advice, and does not constitute an offer to buy or sell securities. All investments carry risk, and investors should always conduct thorough due diligence and consult with qualified professionals before investing.