Wealth Independence Podcast
The Wealth Independence Podcast guides high-income tech professionals through proven strategies for building passive income and achieving true financial independence.
Hosts Dustin Bailey and Adam Penn share battle-tested frameworks, real-world case studies, and hard-won lessons from their years of experience in private markets and alternative investments. Each week, they break down complex investment concepts, analyze current market trends, and interview successful investors and industry experts.
Through a freedom-first approach that emphasizes passive income, smart diversification, and thorough due diligence, learn how to shorten your learning curve and avoid common pitfalls on their path to financial independence.
Whether you're looking to understand private placements, real estate fundamentals, or alternative investment opportunities, Wealth Independence delivers actionable insights that help busy professionals make informed investment decisions.
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Wealth Independence Podcast
v1.32 - Decoding GP Fees in Real Estate Syndications
Adam and Dustin tackle one of the most misunderstood aspects of private real estate investing: general partner (GP) compensation. If you’ve ever wondered why deal sponsors take 20% of profits or bristled at acquisition fees, this episode dives deep into the economics behind GP fee structures and why they’re actually designed to benefit passive investors (if done correctly).
The conversation ranges from real-world examples of fee arrangements, complex waterfall structures that incentivize outperformance, and why transparency in fee disclosure sets private deals apart from traditional Wall Street investments.
Key topics include the difference between upfront fees and performance-based compensation, why preferred returns aren’t always investor-friendly, and how to recognize when fees become problematic versus when they create proper alignment between sponsors and investors.
Whether you’re evaluating your first syndication or comparing multiple sponsors, this episode provides a framework to assess fee structures like a seasoned investor.
Watch episode on YouTube: https://www.youtube.com/watch?v=0EHFF3Om5j0
See all Wealth Independence episodes at https://www.wealthindependencepod.com
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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.
