In this Thanksgiving special, Dustin and Adam step back from deal analysis to reflect on gratitude, freedom, and the mistakes that shaped their investing journey. They discuss critical lessons learned the hard way, including the challenges of investing out of state too early and why property size can matter more than cap rates when factoring in real costs like travel and management.

Adam shares insights from investing in smaller out-of-state properties versus larger multifamily assets, explaining how economies of scale affect everything from travel expenses to operational efficiency. The discussion explores what freedom and independence really mean beyond financial metrics, emphasizing the importance of building networks through conferences and masterminds that create unexpected opportunities.

Episode Release Notes & Resources:

• Book recommendation: The Gap and The Gain, Dan Sullivan and Benjamin Hardy (https://a.co/d/aHvCAoZ)

Watch episode on YouTube: https://www.youtube.com/watch?v=Ws3wU3Qr12w 

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 one of the most underappreciated aspects of building wealth: the power of investing alongside others and being part of a mastermind community.

They share real examples from their experience in groups like Robert Helms and Russell Gray’s syndication mastermind and Ken McElroy’s Collective, showing how exposure to different perspectives transformed their underwriting approach and deal selection.

The discussion turns to how passive investing itself serves as an educational vehicle by opening doors to new markets, asset classes, and relationships you wouldn’t otherwise access. They explain how a single investment can lead to introductions to better CPAs, hard money lenders, and self-directed IRA custodians that compound your wealth for decades.

Whether you’re naturally introverted or simply haven’t considered the network effects of your investment decisions, this episode will shift how you think about building wealth.

Watch episode on YouTube: https://www.youtube.com/watch?v=Ej2gWoX7Luc

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 common misconception in real estate syndication investing: that complicated deal structures signal sponsor sophistication.

They break down why simpler structures, like straight 80/20 splits, often serve passive investors better than multi-tiered waterfalls and accruing preferred returns. They walk through real-world examples of overly complex deal structures, including waterfalls with multiple performance tiers and preferred returns with catch-up provisions. They also explain how these structures can actually create misalignment between sponsors and investors, add administrative complexity, and in some cases, disincentivize sponsors who fall behind on accrued preferences.

Drawing from their experience with successful investors who use straightforward splits, Dustin and Adam explain why complexity doesn’t equal competence. They share practical insights on evaluating deal structures, discuss when preferred returns actually make sense, and warn against using structure complexity as a proxy for sponsor quality.

Episode Release Notes & Resources:

• The Truth About Preferred Returns in Real Estate Syndications (Passive Perspectives): https://bigspringcap.com/passiveperspectives/truth-about-preferred-returns-real-estate-syndications

Watch episode on YouTube: https://www.youtube.com/watch?v=J9wGeyoOvJw

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 first episode of a new “No Investor Left Behind” series, Dustin and Adam break down one of commercial real estate’s most critical concepts: capitalization rates (cap rates).

The conversation covers how cap rates function as the primary valuation multiplier in commercial real estate, the relationship between Net Operating Income (NOI), cap rates, and property value, and why understanding this metric is crucial for evaluating any commercial real estate investment opportunity.

Adam and Dustin walk through real-world examples showing how small changes in NOI can create significant value appreciation, and more importantly, how sponsors can sometimes manipulate projected returns through aggressive cap rate assumptions.

This episode equips you to identify red flags in deal presentations, particularly when projected returns rely heavily on cap rate compression rather than operational improvements…whether you’re evaluating your first syndication or your hundredth.

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 critical topic many passive investors face: recovering from investment losses and knowing when to get back in the market.

After reaching out to investors about a new investment opportunity, Adam noticed a pattern: roughly 10% responded that they’d lost money in multiple deals and were writing off entire investment categories as a result.

The discussion covers why this reaction, while understandable, often prevents investors from capitalizing on current opportunities, and explores the importance of learning from losses rather than letting them sideline you completely, particularly as market cycles shift.

While both Dustin and Adam have been seeing more quality deals in the last 6-9 months than in the previous few years, they examine why now may be an opportune time to deploy capital…but only with proper position sizing and due diligence.

Key topics include: recognizing where we are in market cycles, the danger of over-allocating during peak times, position sizing strategies (limiting any single deal to a percentage of net worth), and how to analyze what went wrong in failed investments

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 dive into the harsh reality of “passive” real estate investing, exposing why the common advice to “just hire a property manager” for single-family rentals often creates more problems than it solves.

The discussion covers why good property managers are expensive and hard to find, especially for smaller properties, and how the best property management companies don’t even manage properties for other investors. They explore how syndications and private placements offer truly passive investment opportunities by putting experienced general partners between you and operational headaches.

Additional topics include why asset management is more complex than most investors realize, how quality GPs can become strategic thinking partners for your portfolio, and why even full-time real estate professionals choose passive investments over direct ownership.

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 dive deep into proactive tax planning strategies specifically designed for passive investors. They explain why waiting until March to think about the previous year’s taxes is too late and share their systematic approach to tax optimization throughout the year.

The discussion includes the short-term rental “loophole” strategy for W-2 earners, qualifying for real estate professional status, and the critical importance of working with qualified tax professionals who understand alternative investments. Key topics include the tax benefits of oil and gas investments, cost segregation studies, and bonus depreciation opportunities.

They also address a common pitfall of letting tax optimization drive poor investment decisions rather than incorporating tax benefits into sound investment strategies, and Adam shares his personal approach of conducting mid-year tax planning sessions.

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 challenge the common assumption that stock market liquidity provides a meaningful advantage over real estate investments. They explore why many investors view the illiquidity of real estate as a downside and argue that this perspective may actually hinder long-term wealth building.

They examine the trade-offs between liquidity and volatility, explaining how frequent price fluctuations can damage compounding returns over time. They share practical insights on why cash-flowing assets often provide better “liquidity” through monthly income than traditional liquid investments, and discuss how this applies particularly to retirement accounts and long-term investment strategies.

The discussion includes a recent apartment building acquisition and how understanding your actual liquidity needs versus perceived needs can unlock better investment opportunities in private placements and real estate. This episode offers a practical framework for high-income earners looking to move beyond traditional financial advice toward income-focused investing strategies.

Episode Release Notes & Resources:

• (Passive Perspectives) Strategic Illiquidity: Why Cash Flow Beats Quick Cash – https://bigspringcap.com/passiveperspectives/strategic-illiquidity-cash-flow 

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 go behind the scenes of a recent 20-unit multifamily acquisition, pulling back the curtain on what passive investors typically don’t see: the last-minute surprises, changing terms, capital raising challenges, and sponsor decision-making that happens right up until closing day.

The discussion covers the realities of working with local banks versus larger lenders, how unexpected insurance requirements can materially impact deal returns, and the importance of conservative expense estimates in underwriting. Adam shares how a $4,900 flood insurance surprise affected year-one cash flows and his approach to protecting investor returns through fee adjustments.

For passive investors, this episode demonstrates the value of working with experienced sponsors who can navigate these complexities while you enjoy the benefits of hands-off real estate investing.

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.

Thinking about buying rental properties out of state? Dustin and Adam share hard-earned lessons from managing 25+ units in Memphis while living hundreds of miles away. This episode reveals why out-of-state real estate investing is rarely as passive as it seems, covering the real challenges of building reliable contractor teams in different markets, dealing with quality control from a distance, and the hidden costs that can wipe out years of cash flow.

The discussion includes practical realities like finding trustworthy contractors, managing emergency repairs remotely, and why some markets make team-building significantly harder than others. Adam and Dustin also explore how scale changes the game – when it makes sense to hire dedicated maintenance staff versus juggling multiple service providers, and why single-property investors face unique challenges.

Whether you’re considering direct property ownership or evaluating passive syndication investments, this episode provides valuable insights into the operational complexities that impact real estate returns.

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.