#234 Why Real Estate is a Great Side Business for Physicians

Hey, everyone. Hope you've had a great week. As physicians, you know this. We're often trapped in the cycle of long hours, high stress, and the constant challenge of balancing work with the rest of our lives. What if there's a way to ease some of that burden without walking away from medicine? Today, we're going to explore why real estate is an ideal side hustle or side business for physicians. We'll talk about financial stability, freedom, and the chance to regain control over your time in life. So stick around. Welcome to the Passive Income MD Podcast, where we talk about creating your ideal life through multiple streams of income. If you enjoy hearing about this stuff, make sure to hit subscribe. Now, let's get on with the show. Okay, first of all, I want to make a quick shout out to people who have just started listening to a podcast recently. It seems like we've gotten a ton of new listeners over the past few months. Thank you so much who've been part of it. Thank you. If you shared it with a friend, I want to let you know you're in the right place. And I just want to say thank you for being part of our community. Anyone who's part of it knows how medicine is. Medicine is demanding. That's not a surprise to anyone. And it's demanding both emotionally and physically. For many of us, feeling like we're pushed to the edge is a real thing. And then when you stack a lack of financial security or not having control over your time, add that on and it feels overwhelming at times. So in today's episode, we're going to look at how real estate offers a unique solution, giving you more control over your financial future and your life and your time, while still allowing you to practice medicine on your own terms. And we'll talk about why. Specifically for physicians, when it comes to investments, there are so many different ways to invest. I'm not going to say one way is better than another. Let me just put this blanket statement out there. Diversify. Try different asset classes, things that take up more of your time, less of your time. Try it all out and see what fits your risk profile, your tolerance, your interest, and the returns that you want. At the end of the day, these things are all just vehicles just to help get you where you want to be. But there's one type of investment that has always stood out that made the most sense for me in trying to live the life that I want to live, and that's real estate. And it's especially appealing for someone like me who was a busy physician who didn't have time to just create another job or another business at that time. Let me tell you why I liked it and why I continue to like it. Number one, it's a tangible asset. It's a real physical investment. And it was something I could understand. We all have lived in a house. We've probably all lived in an apartment. We've all walked into different stores or hotels. We understand what we see and what we experience. And when it comes to investments, that is a huge part of it. Unlike stocks or bonds, which I can't see if I don't use that product or if I don't know much about it. It seemed always kind of esoteric to me, kind of out there, just numbers on a little app. But when it came to real estate, it was a tangible asset that I could understand. And some of the numbers and just the understanding and use of that investment made sense from the beginning. So it was definitely a lot more approachable. Have you ever thought about investing in luxury short term rentals? If so, let me introduce you to Wandering Capital, a powerful, distinguished investment firm. And they're shaking up things in this whole space. They're currently launching their second short term rental fund and I want to tell you it's a passive income opportunity that might work for you. It's hard to ignore this one because they're all about enhancing the travel experience for larger groups, focusing on thoughtful design and having special amenities that make a stay truly unforgettable. It's stuff that you and I would want to stay at. So what I love about this company, Wandering Capital, it's their dedication to delivering exceptional results. And their experienced team makes sure that investors not only enjoy robust, really nice returns, but also benefit from the highest standards of quality. So whether you're an individual investor or you're part of an institution, treat you the same. Wander Capital offers a truly unique opportunity that blends short term rentals. Those are luxury ones like think Airbnb with solid financial returns. So to learn more about Wander Capital, check them out at www.wandercapital.com wandery fun 2 w a n d e r y so www.wandercapital dot com wandery fund 2 All right, thanks everyone. Back to the show. Number two, real estate is really focused on creating cash flow today. Now, it's great that your stock portfolio has gone up in value. It provides some level of comfort. You look at it on Robinhood or whatever your app is on your phone and it feels good when it goes up, doesn't feel so good when it goes down at the same time. Those numbers clicking on that app don't really impact your daily life. That is, unless you're actually selling and taking money off the table. When it comes to real estate, it's kind of like forced distributions. Most of these investments are set up to give you cash flow on a monthly quarterly basis that you can utilize to essentially buy back your time. Or if you want to go out to a nice dinner, do that too. Now, it might start small, but it begins to add over time. I always tell about that. I always tell people about that story of that first investment I ever made, which was a $5,000 investment in a crowdfunded deal. It started giving me $47 a month, which didn't break the bank. Wouldn't excite most people. But for me, I got so excited, I jumped up. I was in the hospital when I saw that number come in. So I called my wife and I said, I figured it out. There's a way to create income outside of the hospital and do it passively. And I saw what could happen in the potential of that initial check, and it changed the trajectory of my life. So since that point, I've stacked that cash flow and it's compounded and it's grown. Even as the market has shifted, many of it has continued to grow, and it allowed me to replace my income, to give me freedom. And that steady income stream is why real estate oftentimes sets itself apart from other types of investment. But that doesn't mean the value of it won't go up too. That's something called appreciation potential, where real estate tends to appreciate over time, meaning that there are going to be market fluctuations. But the long term trajectory of real estate is upward. So when you combine that with the cash flow, not only does it give you distributions, but it grows in value as well. There are also some amazing tax advantages we all know as doctors. Oftentimes we feel like we're taxed to no end. If you're a W2, which the majority of physicians are at this point, you see the amount you would have had, and you see the number that actually comes in your bank account. And it can be painful, especially around this time when you pay your taxes and you hear all these stories of people in other fields, high income earners that pay so little in taxes, that are able to take advantage of the tax code as it's written to end up with more money in their pocket. And it seems like we don't get access to that. Well, with real estate, we do. It's possible to get tax advantage cash flow. A lot of the income is capital gain, so it's taxed at a lower rate than our normal ordinary income. There are ways to offset some of that income that you get from real estate with things like depreciation and offsetting expenses to give you tax advantage. Income tax I've definitely talked about in previous podcasts, so take a look for it, search for that if you need and we'll talk about it in future episodes. Plus, there are ways to take the gains and roll it into future investments without having a tax hit which allows you to compound at a much faster rate. Again, as physicians, we don't often get access to tax advantaged income, and in this case with real estate we do. The next is diversification. If all your eggs are in one basket and that's making money through your work, you understand how scary it can be when that's shaken. When private equity takes over your group, when the hospital changes things, when reimbursements change, when insurance or Medicare changes their policies. It can feel really scary when you have all of your eggs in one basket when it comes to income. But if you're able to diversify and create other streams of income that's not correlated with your current day job, that's not correlated from the stock market, that is a hedge against inflation. As we all know, inflation has reared its ugly head and real estate tends to go and rise with inflation. And having opportunity to have access to all of that as a physician while you're still working in medicine is such a powerful thing. Hey everyone, I have a question for you. What if there was a way to make your money work for you instead of the other way around? Let me ask you are you looking for a way to create passive income and secure your financial future? Or maybe you've stayed away from real estate because you don't have time to be a landlord? Then I want to introduce you to Passive Real Estate Academy. It's the revolutionary platform that we created that teaches you how to invest in real estate passively with little or no effort on your part. In just four weeks, our comprehensive course will teach you everything you need to know about passive real estate investing and help build that confidence in you so that you know that you're making a great investment choice. We created this course for busy people like you and we're going to guide you from every step of the way, from understanding of even the most basic information to understanding the jargon and understanding underwriting so you can make sure that you're making a great investment that you're maximizing your returns and minimizing your mistakes. And the best part, you can do this all from the comfort of your own home with absolutely no prior experience required. So it's time to prepare yourself and learn so that you can be ready for these deals that you see. Because the time is coming. So don't let the demands of your job or the current economic climate dictate your financial future. So join Passive Real Estate Academy and build that confidence to know that you're making a great investment when it comes to syndications and funds. So visit our website@ passiverealestateacademy.com to learn more and take your next step to financial freedom. Now back to the show. So I started investing in real estate. I saw other physicians who were doing it successfully and creating so much freedom for themselves. Again, the goal was not necessarily for everyone to leave medicine. And that wasn't my goal either. It was to enjoy medicine as much as possible because I was passionate about it. I went into it for a reason. I put in all those hours to do something that I loved. That made me feel good at the end of the day was helping people, made me feel like I had a purpose. But at the end of that, I didn't feel like I was in control of my time. And investing in real estate gave me so much of that back. That's because it's income that's not tied directly or proportional to your time. It's important to unbreak or unlock that time and in equals money out equation. The easiest way to understand this is for many people, especially if you own your own private practice or you're paid, it's kind of eat what you kill type situation. When you don't work and you take vacation, doesn't it feel like a double whammy because you're not working in the hospital so you're not making money and then you're spending money on vacation. So it feels like a double whammy. But what if you had income that was coming in that wasn't tied to your time when you are spending it with your family, doing fun things and doing what you really want to do with your time and energy? And for our community, I found it's not about having extreme wealth, which is not a bad thing, but it's just about having more freedom, having hope that there is an escape from the grind, having the option to work fewer hours, maybe even cut back on call shifts, transition to part time medicine, whatever it is, even move to a different area or location that you've wanted to do, but you feel tied to to where you're at because of the finances. I still remember when I was able to give up my first weekend shift, first 24 hour call on a Saturday and it felt incredible. I didn't even do anything great with that time if I remember. But just being at home and being with the family and being able to enjoy the day I live in Southern California and just being able to be outside, I felt so wealthy. And we all know wealth isn't about money, it's about control. It's about freedom. And I've seen other physicians do it again and again. If you've been to pimdcon and many of you listening, you've been there and you came to our most recent one and you heard stories and you shared stories of yourself getting into real estate investing, finding ways to do it whether actively or passively or doing both, learning how to get over that fear, the obstacle of making that first investment and see how it's made changes to your life. So many of you shared your stories with me, so I can't thank you enough. It just shows what's possible with our community when we get creative, help each other, support one another to take action and help each other make better decisions at the end of the day. And I know many of you are thinking how do I even get started in some of this stuff? Of course I would say connect with our community as much as possible. For those of you who want to go a little deeper, get some personalized coaching, we have something called Passive Real Estate Academy. It's our proven three month course with a clear roadmap for success that helps you learn the fundamentals of passive real estate investing while gaining confidence and learning how to invest and make smart decisions. You also learn how to assess deals, build a portfolio, create a roadmap, build a stable income stream. With the market where it's at today, it's ripe with opportunities. The key is to get started. I hope this has given you some ideas. Hope it's been helpful in some way adds value to your life. Thank you so much. You're amazing. Have a great week and let's talk again soon. Enjoy the show. Let me know by dropping a review in the podcast app you're listening to us in. And if you haven't already, make sure to hit subscribe. Join thousands of physicians who are also on this journey to creating their ideal lives through multiple streams of income. Learn more at our website, passiveincomemd.com thanks again for allowing me to be a part of your journey. See you next time.