MtoM #164: Orthopedist Starts a Real Estate Empire as a Resident and Finance 101: Real Estate Professional Status
Apr 1, 2024
auto_awesome
An orthopedist shares how he started a multi-million dollar real estate empire during residency by learning about real estate and finances. The discussion also covers the advantages of physician mortgages, transitioning to conventional mortgages, and prioritizing retirement investments. Additionally, insights on real estate investing for physicians, becoming a real estate professional, and utilizing depreciation deduction are provided.
Young doctors can benefit from physician mortgages with lower down payments, while seasoned professionals may find refinancing conventional mortgages advantageous.
Orthopedic surgeon, Frankie, achieved real estate success by leveraging residency earnings, strategic property acquisitions, and ongoing education in the market.
Deep dives
Real Estate Investment for Young Doctors
Young doctors, fresh out of school, can benefit from physician mortgages that offer less stringent requirements and lower down payments compared to conventional mortgages, enabling them to secure a mortgage without paying private mortgage insurance. For those further along in their careers, buying a home with a conventional mortgage and refinancing later for better rates can be a strategic move for financial success.
Building a Real Estate Portfolio During Residency
Frankie, an orthopedic surgeon, started building a multi-million dollar real estate portfolio during residency, now managing over 100 doors, including a successful self-storage facility. He strategically invested in self-storage due to scalability and cost efficiency, achieving rapid growth through wise off-market property acquisitions and leveraging minimal experience.
Strategic Financial Planning for Real Estate Success
Frankie's success stems from leveraging his future earning potential while in residency to secure financing and selecting lucrative property deals, like a duplex acquired for $205,000 that immediately cash flowed at $2,100 per month. Utilizing exclusive real estate listings and actively educating himself through resources like the White Coat Investor and Bigger Pockets, he navigated the real estate market with calculated risk and strategic planning.
This Orthopedist got started building his real estate portfolio while he was still a resident! Now after only 4 years he has a multi million dollar real estate empire. He said he began his journey by learning everything he possibly could about real estate and finances when he was in his second year of residency. Once he had the confidence he had the knowledge he needed he hit the ground running and hasn't looked back. After the interview we will talk about real estate professional status for Finance 101.
At some point in our financial lives, it will be time to buy a home. A physician mortgage can be a good vehicle for a young doctor who’s just out of school and has a more effective place to use their money than on a big down payment. These loans allow doctors to secure a mortgage with fewer restrictions and a lower down payment than a conventional mortgage. But if you’re further advanced in your career or deeper into your journey to financial freedom, buying a home with a conventional mortgage and then, later on, potentially refinancing that loan to a better rate with a shorter time frame could be a great move. Wherever you are in your financial journey, make sure you use the mortgage that will be most financially beneficial for you. Hop over to our recommended tab to learn more about all of your mortgage and refinancing options at whitecoatinvestor.com/mortgage.
The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you!