Dustin and Adam explore a critical concept that many real estate investors overlook: analyzing an asset’s return on equity. 

While most investors focus solely on monthly cash flow, evaluating whether your equity is working as hard as it should be is an important part of portfolio management. Using practical examples, Adam and Dustin break down the difference between cash-on-cash returns and return on equity, showing how appreciation creates opportunities for strategic portfolio rebalancing.

The conversation covers when it makes sense to be an opportunistic seller, even with cash-flowing properties, and how to identify when your equity could be generating significantly higher returns elsewhere.

Additionally, Adam shares insights from a recent self-directed IRA conference and introduces tools for tracking portfolio performance, including personal financial statement templates that help visualize return on equity across different asset classes.

Essential listening for passive investors who have built equity in their real estate holdings and want to move beyond monthly cash flow metrics to optimize their overall investment strategy.

Episode Release Notes & Resources:

• Personal Financial Statement (PFS) Template - Optimized for Syndications / Private Placement Investments: send an email to [email protected] 

Watch episode on YouTube: https://www.youtube.com/watch?v=-UxjJK96dSg

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.