Surgeon and RE investor

24 Replies

Any RE investors who still have their active clinical practice rolling? Looking to chat with anyone at any stage of their investment career about the balancing of their clinical and investment careers.

Are you a passive or active real estate investor?

I'd consider both. I am becoming more interested in passively funding deals. But even with properties I look to buy and hold, I would hope to use a PM for the most active part of the projects. 

@George Ozoude I have my clinical (therapy) practice still rolling and I am doing a lot of investing. I would call it active but that doesn’t mean that I do a lot of the hands on work. I have a few assistants that do a lot of the work for me. I talk a lot about it in the most recent podcast #287.

Most busy professionals or business owners invest passively in syndications or NNN.

I invest both actively and passively.

@Shiloh Lundahl Thanks! I'll check it out and follow up with any discussion points here. 

@Mike Dymski I can see some combination of the two being important, and likely the best way going forward. My thoughts on passive only, is that a portfolio of properties isn't being grown. And I see true long-term wealth as something you actually own and can pass on. 

On the other side, I wonder if any surgeons have had to consider adjusting their amount of clinical practice due to their involvement in active deals. 

I'm sure I'll find the right balance for me. But I'm just curious in the experience of others. 

*looks up NNN*

I run my dental clinic and rentals actively. Right now I keep the extra money that would go to a PM to help me fund my next deal. Once I get busy with too many rentals (I'm thinking around 15-20 or so), I'll get a PM and focus solely on bringing in the dough as a dentist

@George Ozoude I too am in the earlier stages of REI but every time I try to get more involved with Real Estate, my practice (Pediatrics) requires more of my attention.

The first move I made was to buy a commercial building for my practice to move into. Now my practice is paying off the mortgage and I am building equity (In reality, how much value, if at all, does a medical practice really have?). My practice is a Professional Corporation, while I also have an LLC for the Real Estate. Both are S corps. This gives me the freedom to take the money through whichever has the better tax advantages.

Going forward, I think I’m going to go the turnkey route as I can’t see myself having the time to be very involved right now. I’d absolutely LOOOOVE to be able to leave medicine (and all the garbage that comes along with it) and do RE full time. Gotta build up some more $$$$ before I can do that. 

"I’d absolutely LOOOOVE to be able to leave medicine (and all the garbage that comes along with it) and do RE full time."

@David Rosenberg I imagine there is as much (if not more) garbage in active REI, especially before you reach scale.

I’m in medicine (in-patient) and work half the month. The other half I’m finding innovative ways to evade having to my be at home all day with my kid...like “real estate”.

You wouldn’t probably realize that cause I’m also trying to buy the White House (see feature thread on that subject).

I invest in RE out of boredom/for fun for now.

Employed Family Medicine here in clinic Monday - Friday ; moonlighting at urgent care most weekends. Goal of financial independence! Hustling and learning everyday. Listen to audible books on RE and financial investing on my commute to/from work daily.

But don’t have the time or patience to actively manage my one vacation rental. Have 4 small kids and a physician spouse. I gladly pay the PM company to do what they do.

At the point now where I’m learning the local Charleston market, making contacts, looking to get in to commercial RE, maybe a clinic for myself in the future.

After a rough day at clinic, it’s tough to have the physical and mental strength to still try to analyze deals and stop by showings on my time off. Goal of cutting a little back on medicine if RE proves successful BUT also see how helpful having my “W2 job” is when talking to lenders. It’s definitely not easy but you’re not alone! I was surprised when I realized I also had a passion for RE and not just medicine. Finding the balance and having fun is key!

I’m an orthodontist with an active RE license...also just don’t have the time to go out and research properties or even find deals!

What podcasts do you all recommend? I do a couple of days of 1 hour commute, so I am looking for great RE podcasts! (Apart from BiggerPockets podcasts)

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@Account Closed your comments are both insulting as they are ignorant. No matter how many times you create a new profile and write under a new name, your comments and attitudes are the same.  I believe it will only be a few days before you are blocked again. 

I will however comment for the benefit of either newer investors who may think your comment are worth considering.

It may seem silly for a doctor who probably earns over 200k a year to spend time trying to get rental properties that cash flows $200 a month when the doctor probably earns about the same per hour. Let me share some of the reasons why it is a wise option for medical professionals to invest in real estate even though they often are already high salary earners. 1) there are several benefits from depreciation and often appreciation. 2) there are several tax benefits from owning real estate. 3) it offers an alternative to the stock market. 4) with real estate there are many more options and exit strategies than the stock market. 5) with real estate you can use leverage to invest and because medical professionals often have higher saleries, their ability to qualify for loans isn’t greater than the average earner. 6) the pay down on the loans provides yet another form of wealth accumulation that can be traded up for into bigger properties. Ultimately medical professionals invest for the same reason everyone else invests, they may just be able to build a portfolio quicker than the average person and they may not need to be as careful since they may be able to recover from financials mistakes quicker than most.

Updated about 1 month ago

I meant to say because medical professionals often have higher saleries, their ability to qualify for loans is greater than the average earner.

Updated about 1 month ago

I meant to say because medical professionals often have higher saleries, their ability to qualify for loans is greater than the average earner.

Originally posted by @George Ozoude :

Any RE investors who still have their active clinical practice rolling? Looking to chat with anyone at any stage of their investment career about the balancing of their clinical and investment careers.

 Absolutely. PM me.

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Originally posted by @Account Closed :

Nothing inherently wrong with the stock market.   I dont know why but RE guys hate stock market .   And Big stock guys hate RE.  they cant seem to co-exist.

It's very common practice to have both real estate and stock portfolios, particularly with professionals and business owners (and many of the regular contributors on these forums).

I’m not a healthcare professional (was definitely on that path years ago!), but know many professionals who contemplate active v. passive investing.

Of course it depends on your scenario, such as how much bandwidth and REI experience you have. But if you're starting off or are very busy, I would suggest turnkey investing. There are many cash flowing markets – you just got to find the right operator/turnkey providers you want to work with and properties that meet your criteria. Eventually you can move on to bigger and larger deals once you're comfortable, but I think it's a good milestone you can easily accomplish and learn from in the beginning.

It also doesn’t hurt to listen to podcasts (I listen podcasts such as SimplePassiveCashflow). I like that one because it’s specific for people with W-2’s and/or good jobs who want to invest in real estate passively.

There’s some good comments here, but wanted to share my two cents. Best of luck to you!

@George Ozoude - Hi George.  Yes, I continue to practice medicine and also participate in real estate both passively and actively.  It really depends on what your goals, interests, career flexibility are as to what makes the most sense for your path in real estate.  For me, that has meant cutting down some on clinical practice both out of flexibility to do so, a desire to be around more for my young kids, and also out of an interest in doing more in real estate.  But it has been an evolving path and I'm sure you will sort out your own way based on your own life circumstances.  Happy to pick up the conversation further and share whatever is helpful for you if you want to message me!

@Shiloh Lundahl - I didn't see the other post which you responded in reference to, but I liked your response in summary that medical professionals invest in real estate for the same reasons everyone else does.....so true.  Once one realizes the benefits of smart leverage, disassociating the direct trade of time for money, the variety of tax benefits, etc. it's pretty much a no-brainer.  BTW, I enjoyed your BP podcast episode this past week....good job!

Thanks for all the feedback and insight

RE is just another way to diversify. I would never tell my Investors to liquidate or get out of stocks etc... They all give us what we strive for which is to retire comfortably. If you are still working max out your 401k and IRA's especially if your company matches.

Originally posted by @George Ozoude :

Any RE investors who still have their active clinical practice rolling? Looking to chat with anyone at any stage of their investment career about the balancing of their clinical and investment careers.

 Welcome to the site George. I own several buildings with Doctors. Tons of Doctors in the investment space.

Originally posted by @George Ozoude :

@James Wise Thanks. Are they active or passive partners?

 Passive. Would make no sense for a doctor to be an active investor. With the amount of time, money & resources that go into putting yourself through medical school then residency your best bet is to use all of your time in the most effective and profitable way, practicing medicine. 

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