The Passive Income MD Podcast

In this podcast, Peter will give you a primer on Short-Term Rentals. He will discuss STR as an asset class, the benefits and tax breaks.     Over the past few years, short-term vacation rental platforms like Airbnb and Vrbo have gained immense popularity.    STRs are great for the consumer, but are they great for the investor? This is the focus of this podcast: An Intro To Short-Term Rentals.  By The Way… Peter recently opened up his first short-term rental. You can catch his story in a recent blog post entitled, 7 Things I Learned From A Short-Term Rental.

Every morning provides you a fresh start, and a chance to make progress towards your overall goals.  Plenty of successful people count their morning routine as (at least one of) the keys to their success, so it may be time to re-evaluate yours. In this podcast, Peter will talk about how you can create a morning routine that will aid the success to your day.

Should you invest in stocks or real estate? It’s a big question, and there are many, many opinions out there.  While both certainly have their pros and cons, Peter will share with you why he prefers real estate over stocks. 

So much of life has become virtual and we are now confident in connecting with others across the world. Yet, there is a part that we miss… the energy and power of being in the same place at the same time with others.   As professionals in the medical field, we are not strangers to conferences.  However, the thought of ever going to a non-medical conference never even crossed Peter’s mind… until he went to FinCon in 2017, a conference for financial bloggers. From that point on, the story of PIMD emerged to be a leader in passive income for physicians. In today’s post, Peter will discuss the value of attending medical and non-medical conferences.

Welcome Vincent Chan of ChristinaLA to Passive Income MD Podcast! Vincent Chan is the Chief Operating Officer of Christina. He is responsible for establishing financial & operational policy, & working closely with the Christina management team to execute strategies & business plans. Christina is a Malibu-based real estate developer, manager, & sponsor founded in 1977. For 45+ years the firm has made investments in the Westside Region of Los Angeles, primarily via 8 submarkets including Beverly Hills, Brentwood, Century City, Malibu, Santa Monica, Silicon Beach, West Hollywood, & Westwood.  Christina provides accredited investors with the opportunity to own coveted investment properties in these ultra-prime neighborhoods that would otherwise be unobtainable.  The firm has been featured in Bloomberg, Forbes, Los Angeles Times, & Yahoo Finance. Visit ChristinaLA.com to learn more.

Do you have a dream bucket?   A dream bucket is the place in your mind where you can dream and plan without limitations. We can divide asset allocations between three buckets: The Security Bucket, The Risk or Growth Bucket, and The Dream Bucket. Of the three, the dream bucket is everyone’s favorite bucket.  After working hard, saving, investing and strategizing to achieve financial freedom. You get to enjoy the contents of the dream bucket. Inside this bucket, you hold funds to do what you really want to do or create the experiences you want to enjoy and have some fun! Good news! You don’t have to wait 20 years to dip into the dream bucket! By utilizing your funds with responsibility and wisdom, you can create that life you dream of… today.  

There are many ways to create passive income, but the most important factor here is how you respond to its invariability. Being proactive, not reactive, when it comes to passive income is not always natural. As physicians or high-performing professionals, we are great at tackling problems head on. Although, the vast majority of us focus on solving problems after the fact. It makes sense that we act the same way with finances and definitely when it comes to creating passive income–we often wait until there’s an issue to do anything about it What you do now can give you peace of mind when transitions in life come your way.  What steps can you take today to live proactively?

One of the most common questions I hear is actually one of the hardest to answer: "how do I know if a property is good to invest in?"   Still, when looking at a potential property, it's safe to say that the number one question you should be asking is this:  Will this property create the type of cash flow (now or in the future) that will help me reach my financial goals? Today's episode will help you narrow your financial goals and teach you how to apply the 1% rule as you navigate through making a wise investment decision.  The 1% RULE can be realized when the rental income per month is > 1% of the Property's Purchase Price. Does your potential property investment pass the 1% rule?

The bottom line is this: do not choose one investment over another simply because it advertises a higher rate of return. I’ve been guilty of precisely this mistake on many occasions, and suffice it to say, it’s gotten me into trouble. In this podcast, I will define the two main types of returns you’ll usually see advertised in real estate deals: Internal Rate of Return (IRR) and Equity Multiple (EM).  Both these metrics are important to use when determining if you should invest and how they match your personal goal. I will also discuss the risk and the assumptions of manipulation.

Multiple streams of income is the best way to build wealth. Peter discusses where & how to diversify so that you can broaden your portfolio.