Is real estate investing for me?

49 Replies

Hi all. I am a health care professional that has always been fascinated by real estate investing. I have around $ 200,000 extra income a year to invest after maximizing my other retirement plans. I would like to begin taking that extra money and invest it into real estate to diversify my portfolio. However I am very busy with my profession. I understand it will take more work than just placing the money into the S and P 500 but from everyone’s experience, is it reasonable to assume I can do this without creating another job for myself? Thanks in advance!!

You could be passive and hire a management company for yourself but like I always tell my clients you are buying yourself a job 

@David Wilson there are a few options for you to consider that would not create a new job or affect your current job. I did a video on this very topic the other day.

You can passively invest in a deal, become a private lender for investors/developers  or partner with an investor/developer.


David it comes down to your goals.

200k down to own something yourself that is worthwhile in commercial is hard to do.

There are passive properties such as single tenant net lease retail properties.

If you are accredited you can invest in different platforms. Ground up is expensive in costs right now. Lots of developers at this top cycle are going after existing value add where the equity jump can be created faster. There are still some new projects that can be worthwhile investing in just have to be careful on how many years are planned to extract the value and strength of the operator. The longer in years it takes to complete the project and stabilize the more systemic risk can be present as there is a greater chance of a cycle shift. Make sure developer has accounted for a potential downcycle and what would be worst case scenario for an exit.  

You could easily purchase a great rental property in South Florida and with the right team that will do the work for you at a very moderate cost, sit back and let your investment grow.

As a couple others have stated you have enough money but do know real estate is not a passive investment unless you buy-in to a syndication or something like that. 

@David Wilson with that kind of money I would invest passively in investments that are liquid. Don’t lock your capital up for years at a time and I wouldn’t buy real estate directly

@David Wilson . Hi David, I am in the same boat as you.. a good job with good savings coming though but don’t have too much time to dedicate.

If you’re looking to own physical real estate yourself and not through syndications I would suggest triple net single tenant properties. You can also buy multi tenant retail where leases are long in duration and things for the most part are managed by a property manager. A 500k downpayment can buy a decent long term cash flowing asset. Best of luck!

I would be the bank. Take that money and turn it into Hard Money or Private Money. I know flippers that need cash for their deals and I mean proven flippers in my area of Baltimore. Let’s chat.

Congrats on your success. If u r looking to diversify your investments, consider a REIT. If u r looking for higher returns than the S&P 500, be ready to use debt as leverage to outpace the stock market.


I would consider purchasing mortgage notes. Either by yourself or in syndication. 

Most of the vast sums we lend out each month that we decide not to carry ourselves, are either purchased directly from us or, more likely, go to a 3rd party public clearing house where the mortgages tend to be quickly bought by investors. (I can point you to that clearing house privately if you are interested).

You say you don't want a second job but want to diversify into property. This might be an approach to consider.

@David Wilson There are a couple of things you mentioned that stuck to me: 

Your fascination with REI (some passion) + You Are Very Busy with Your Work 

I think you should seriously consider some sort of passive investing opportunities in Real Estate such as Multifamily Investing. With these opportunities, you act as a Passive Investor and you can learn the investing side at your own if you care to.  

As a passive Investor, you wouldn't be creating another job for yourself

Originally posted by @David Wilson :

Hi all. I am a health care professional that has always been fascinated by real estate investing. I have around $ 200,000 extra income a year to invest after maximizing my other retirement plans. I would like to begin taking that extra money and invest it into real estate to diversify my portfolio. However I am very busy with my profession. I understand it will take more work than just placing the money into the S and P 500 but from everyone’s experience, is it reasonable to assume I can do this without creating another job for myself? Thanks in advance!!

 It’s a nice problem to have.  It comes down to what level of passive you want and what level of returns you want to achieve. 


     You don’t want a “job” or real work, do you know anyone that is doing real estate?  Maybe become their silent partner that provides the money for downpayments and they provide the leg work and the deals. 

    Other things would be finding a triple net commercial lease you could buy and just collect money from a single commercial tenant. 

     Everyone says be the bank, but being the bank takes time and knowledge of what you are lending on.  If you are lending to a flipper you want to know what they are doing and how they are going to pay you back.  Promises don’t go far if they misrepresent their profit margins and you can’t or don’t see their mistakes. I feel like that would be blindly trusting someone without extensive research (which becomes a job since it’s revolving paid back loans and new loans). 

     A syndication is more long term and super passive once you pick who you are going to invest with.  (This would be my pick for most passive with least amount of up front research required)

     Notes well passive can become active if they stop paying you.      

     Medium multi family with a property manager if you were willing to go that way could yield higher returns, but would require some work.  (This is what I do and I don’t want to have a second job). 

Good luck and welcome to the wonderful world of real estate investing, the rabbit hole goes as deep as you want to explore and never ends. 

@David Wilson Being a busy health care professional, you don’t want the added stress of making phone calls or scheduling for which ever niche in real estate you would want to invest in. Be a private money lender. People are always looking for money including myself. I’d figure out what niche you have the most interest/passion in and start asking professionals in that area to invest with. Let’s connect.

Originally posted by @David Wilson :

Hi all. I am a health care professional that has always been fascinated by real estate investing. I have around $ 200,000 extra income a year to invest after maximizing my other retirement plans. I would like to begin taking that extra money and invest it into real estate to diversify my portfolio. However I am very busy with my profession. I understand it will take more work than just placing the money into the S and P 500 but from everyone’s experience, is it reasonable to assume I can do this without creating another job for myself? Thanks in advance!!

 If you go turnkey or into syndication you won't need to spend much time on the portfolio. Remember, quality over quantity and it's smooth sailing.

Not sure what your income is, but we are probably in a similar situation.  You must keep in mind something that hasn't been mentioned above is the tax implications of the above options.  Some of these vehicles that have been discussed may increase your taxable income. Since my taxable income is probably in a similar to yours, and I am all W2 I'm really not looking to increase income so I'm looking mainly at vehicles that either offer depreciation offset it's on passive income or other vehicles that develop passive income. 

I'm not sure that direct landing or Or Mortgage notes will satisfy this passive income designation that's if you're not looking to increase your taxable income may be worthwhile to look into other options that are tax advantaged.

@David Wilson Hey David, good for you for considering this heavily first. If you haven't looked into it yet, with your level of capital and minimal time I could see private lending, joining syndications where other people manage the investment and partnership, or turnkey investing with a property manager would be viable.optioms for you.

Find a partner who has the time, track record and experience. Make sure you are both in the same page and invest that way...win win

@David Wilson

Are you saying 200k total, or each year? Because those are two different things. You could do roof stock, which sponsors some of the BP podcasts. You could also do select, private investing/lending. You could also find a flipper or renter with a good reputation and become an equity partner with them.

Shoot me a PM and I’d be happy to explain what I mean with each of those.