How did you hear about The Real Estate Physician?
I started researching syndication investments a couple of years ago and came across some posts that mentioned The Real Estate Physician. Cherry would also respond to comments on some of the real estate FB groups that I participated in. Looking at all potential leads, I ended up making an appointment with Cherry to discuss syndication investments.
What made you want to diversify your portfolio with commercial real estate?
As I looked at my retirement portfolio, the vast majority of my holdings were in stocks. In trying to diversify my portfolio, I looked at various options and the most common suggestion was real estate. After reading books and doing some research into different ways to invest in real estate, I came to the conclusion that I wanted some form of ownership but needed this to be somewhat hands-off as well. I have a busy career and want to maximize time with my family, so I preferred not to actively manage properties. I felt that syndication investments in multifamily rentals and commercial real estate fit that mold very well. I currently split my real estate investments between multifamily syndications and turnkey single-family rentals that are managed by a property management company.
Have you had prior experience investing in commercial real estate syndications before signing up with The Real Estate Physician?
I participated in my first deal with The REP by investing in a multifamily syndication deal. Cherry was very helpful in being available to discuss real estate in general and was a good resource for questions I had on the deal. If she did not know the answer, she would find out and get back to me fairly quick. I did not feel pressured to invest. If I was not comfortable, I felt like I could easily just say no. Not long after, I invested in a second multifamily syndication through The REP. If there were any barriers in that first deal, it would be taking the plunge and actually going through with the investment. It was incredibly daunting. These are not small amounts to invest. But after doing the research and due diligence, as best as I could at the time, I did feel that the investment was a good opportunity. The only thing in the way were my own fears. There have been other deals I passed up in the past because I was too afraid to commit. I was starting to get a sense of FOMO. I kept reminding myself to be patient and wait for a deal to come along that I could properly vet. And once that deal came, I made the commitment to follow through.
What suggestions do you have for physicians interested in getting started in commercial real estate syndications?
A lot of courses and books will start with “knowing your why” which is to have you self-reflect and understand why you want to do this. There is a lot to learn about real estate investing and being a physician, we have all gone through plenty of schooling and training that are far more difficult. However, real estate investing does require upfront work. The “passive” in passive income does not mean it just falls into your lap. You need to put in the initial effort to reap the future rewards. But there are going to be bumps in the road, so having a compass like knowing why you are doing RE investments can keep you going when challenges arise. So, know your why and get educated (read books, read blogs, get involved with real estate investment forums/FB groups, take courses, listen to podcasts, etc., find a mentor).
What does financial independence look like to you?
Financial independence for me means having choices. Part of any professional’s life is the possible threat of losing a job or decline in income. This pandemic has shown us that even doctors on the frontlines are not guaranteed a certain salary or even their jobs. That may lead us to make choices that add more stress or choose a job that is not our first, second or even third choice. Reaching financial independence affords me options that help improve my quality of life.
Interested in learning more? Sign up for the Physician Investors Circle to connect with us.