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.

Depreciation is one of real estate’s most powerful tax advantages – and maybe its most misunderstood. Dustin and Adam break down what passive investors actually need to know about real estate depreciation, including bonus depreciation, cost segregation studies, and the tax benefits that flow through to syndication investors.

Bonus depreciation is back at 100%, and despite how aggressive it sounds, it’s actually the proper accounting method. But depreciation losses come with limitations that catch many high-earning W-2 investors off guard – particularly around how passive losses can and can't be used. The discussion also covers depreciation recapture, a sale expense that can quietly reduce returns if the syndication sponsor hasn’t accounted for it.

Learn the right questions to ask sponsors about tax benefits and recapture planning, understand when those K-1 losses actually help you, and why coordinating with your CPA is essential for making these strategies work within your specific tax situation.

Episode Release Notes & Resources:

• Episode v1.0 - Goal Setting for Freedom-First Investors: https://www.buzzsprout.com/admin/2432117/episodes/16376511

Watch episode on YouTube: https://www.youtube.com/watch?v=2l9wEjbyshE

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.

What happens after you sell a 14-store business with 90 employees? Ian Noble joins Adam and Dustin to share his journey from dry cleaning entrepreneur to passive real estate investor, revealing the emotional identity shift after exiting a business, and explaining how his business background shaped his approach to evaluating passive investment opportunities.

Dustin and Adam explore Ian's dual investment strategy: combining steady cash flow from private lending with equity upside through mobile home parks. Ian explains why interest rate concerns shouldn’t keep investors waiting, how passive investing delivered tax benefits after his exit, and the questions every investor should ask sponsors before writing a check.

Learn why Ian prioritizes cash flow over appreciation, how asking about sponsor failures reveals character, and his perspective on spreading investments between stocks and real estate market as returns normalize after years of exceptional gains.

Episode Release Notes & Resources:

• Free Passive Investing in Real Estate Cheat Sheet: https://go.runsteadyinvestments.com/wealth-independence-podcast
• Join Ian’s Passive Investor Mailing List: runsteadyinvestments.com/investor-club
• Ian’s LinkedIn: www.linkedin.com/in/iannoble1/
• Ian’s Instagram: @ian_invests

Watch episode on YouTube: https://www.youtube.com/watch?v=0EKh7WDCy2M

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.

Dustin and Adam tackle a fundamental question for business owners and high-earning professionals: when does it make sense to convert active income into passive investments rather than reinvesting in your business or career?

They explore why syndications often provide better risk-adjusted returns than building your own real estate portfolio, particularly for investors who lack the time or desire to manage properties directly.

The discussion covers the four ways real estate generates returns (appreciation, principal paydown, tax benefits, and cash flow) and why passive investments become increasingly tax-efficient as your portfolio grows. They examine the opportunity cost of learning new skill sets versus focusing on your highest-value activities, whether that’s growing a business or advancing a W-2 career. They also address when it makes sense to acquire properties directly versus investing passively in syndications, considering factors like economies of scale, team quality, and time investment required.

Watch episode on YouTube: https://www.youtube.com/watch?v=woqOUf3aUgc

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.

Dustin and Adam reflect on completing their first full year of the Wealth Independence Podcast (version 1) and share what’s ahead for version 2.

The conversation covers which content resonated most with listeners, including strong feedback on the “No Investor Left Behind” series, particularly the cap rates episode. They discuss plans to expand educational content with topics like waterfall structures, bring on more established names from their network, and feature interviews with actual passive investors who've built substantial portfolios.

Episode Release Notes & Resources:

• Goal setting episode: https://www.wealthindependencepod.com/2432117/episodes/16376511-v1-0-goal-setting-for-freedom-first-investors

Watch episode on YouTube: https://www.youtube.com/watch?v=dSQm_-Lqg8k

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.

Dustin and Adam break down a recent Wall Street Journal article examining the push to bring private assets into 401(k) plans, and why this approach misses the point for passive investors seeking true alternatives. The discussion reveals a troubling reality: nearly 40% of Americans have never heard of private credit funds, and mainstream financial education continues to overlook the alternative investment space entirely.

The episode explores the fundamental difference between real private investments and the repackaged “alternatives” being positioned for 401(k) inclusion. While Apollo and BlackRock angle to capture a portion of the $13 trillion 401(k) market, Dustin and Adam explain why stepping outside the traditional retirement system altogether often provides better access, lower fees, and more attractive tax treatment. They address common misconceptions about fees in private investments versus index funds, the education gap that keeps investors trapped in traditional thinking, and why true alternative investing means investing outside the bubble…not finding “alternatives” within it.

Episode Release Notes & Resources:

• [WSJ] Wall Street Is Pushing Private Assets Into 401(k)s. We Asked Whether Anyone Wants Them (https://www.wsj.com/finance/investing/401k-retirement-savings-private-assets-e445311e)

Watch episode on YouTube: https://www.youtube.com/watch?v=20S8R2_YdYY

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.

Dustin and Adam explore the often-overlooked world of asset protection for real estate investors and high-income professionals. They break down the key difference between control and ownership, explaining how properly structured trusts and LLCs can create legal barriers that protect your assets without sacrificing your ability to manage them day-to-day.

The conversation covers why living in America (where anyone can sue anyone for anything) makes asset protection especially relevant, addressing scenarios from slip-and-fall accidents at rental properties to car accidents and disgruntled business partners. They explain equity stripping, how asset searches work, and why making yourself look “broke on paper” can discourage frivolous lawsuits before they even begin.

They also share observations about their network, noting the spectrum from ultra-wealthy investors with incredibly complex structures to experienced operators who own large apartment buildings in their personal names. They discuss the personal judgment call each investor must make about whether the peace of mind and formalized planning is worth the setup costs.

Episode Release Notes & Resources:

• Asset protection whitepaper: assetprotection@wealthindependencepod.com
• Dustin & Adam’s asset protection attorneys: Tresp, Day & Associates – https://www.trespday.com

Watch episode on YouTube: https://www.youtube.com/watch?v=gIGtdY64V1U

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.

In this “No Investor Left Behind” episode, Dustin and Adam demystify RUBS (Ratio Utility Billing System) and explain how this common multifamily value-add strategy can significantly increase a property's net operating income and valuation.

Using a practical example, they demonstrate how implementing a $40 per unit monthly utility billback across 20 units can add approximately $160,000 in property value when calculated at a 6% cap rate.

The discussion covers different RUBS approaches, from occupancy-based formulas to flat-fee structures. Dustin and Adam emphasize the critical importance of market analysis before implementing RUBS, explaining that success depends heavily on whether utility billback is common and expected in the target market. They also provide guidance for passive investors on how to evaluate this strategy in a syndication business plan.

Watch episode on YouTube: https://www.youtube.com/watch?v=sMH-EBE-Wzg

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.