Dustin and Adam dive into one of the most fundamental principles of successful investing: “you make your money when you buy.” Using real examples from recent apartment building acquisitions and fix-and-flip projects, they discuss why the purchase price is often the biggest lever in determining investment success.

They break down how overpaying upfront makes it nearly impossible to “earn your way out” of a deal (even with significant value-add improvements), and share insights on evaluating acquisition prices in today’s market, including why sponsors claiming a “20% discount to 2022 prices” might not actually be getting a good deal.

For passive investors, this episode provides crucial guidance on evaluating sponsor deal packages, understanding true market value versus pro forma projections, and recognizing when brokers price properties based on incomplete value-add work. Understanding acquisition pricing relative to exit strategy is essential for building wealth through passive income investments.

See all Wealth Independence episodes at https://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.