Direct Real Estate NW
$812,400
Property equity + accumulated cash flow
Stock Index (S&P 500) NW
$948,200
100% liquid equities + dividends reinvested
Listed REITs NW
$785,600
Liquid real estate equities + yield drag
Sweat Equity Hourly Alpha
$18.45/hr
2,880 lifetime hours spent
Multi-Decade Net Worth Trajectory
Comparing leverage equity accumulation vs passive compound interest
Direct Real Estate
Stocks (S&P 500)
REITs Index
⏱️ Labor & Sweat Equity Matrix
Quantifying the true hourly premium earned by self-managing property compared to 100% passive equity compounding.
| Total Landlord Hours Spent | 2,880 hrs |
| Real Estate Net Profit Alpha | -$135,800 |
| Effective Hourly Labor Value | $18.45 / hr |
| Labor Drag vs Passive Passive S&P 500 | Passive Stock Advantage |
🛡️ Tax Shelters & Depreciation Friction
Direct real estate benefits from 27.5-year building depreciation, while index funds endure annual dividend tax drag.
| Annual Building Depreciation Shield | $11,636 / yr |
| Cumulative Tax Sheltered via RE | $55,850 |
| Stock Annual Dividend Tax Drag | -$38,200 |
| 1031 Exchange / Basis Step-up | Enabled |
💧 Liquidity & Friction Hierarchy
How fast can you convert 100% of capital into emergency cash without haircut losses?
| Stocks (Index DCA) | T+1 Settlement (Instant) |
| REITs Index | T+1 Settlement (Instant) |
| Physical Property | 30–90 Days + 6-8% Fees |
| Audit Liquidity Rank | Stocks (Immediate T+1) > REITs > Leveraged Physical Property (30-90 Days) |
20-Year Detailed Balance Sheet Ledger
Year-by-year progression of property equity, side-fund cash, stocks, and REIT assets
| Year | Property Value | Mortgage Debt | RE Net Worth | RE Cash Flow | Stocks Net Worth | REITs Net Worth |
|---|