Real estate investing is doctors’ preferred passive income strategy because it is both popular and effective. More and more doctors are resorting to passive real estate investing, even those just beginning their professions.
Here are a few reasons why doctors prefer passive investing.
Time
This is the main justification up front. Even though there are numerous ways to earn extra money utilizing a variety of investment vehicles, as doctors, our most precious resource is time. We have hectic days at work and want to spend time with our families when we get home.
Do we want to conduct research, interview candidates, oversee teams and renters, plan, etc., with our “spare” time? Or do we prefer to relax and let someone else take care of the work?
You can continue to practice medicine, which you do best while generating other income streams through passive investing, giving you the freedom to pursue your passions (whatever you want).
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Utilize the skills and knowledge of others
You most likely spent at least ten years honing your craft. It also took a significant amount of work, experience, and trial-and-error. Real estate investing follows the same rules.
The good news is that understanding the ins and outs of real estate doesn’t take ten more years if you want to become a great investor. You can benefit from people who work in the field and are familiar with it.
Utilizing the knowledge and experience of others might be your greatest asset in accumulating wealth and advancing you closer to reaching your financial goals. Without going through the entire procedure yourself, you are drawing on the knowledge-mine of industry expertise.
Absolutely hands off
Nothing in this world is free; that much is certain. To generate income, you must pay someone to labor for you. The rest of your passive investment experience consists of reading updates, checking for deposits, and giving tax forms to your accountant after investing some time and effort upfront in performing the required due diligence.
You can own a portion of a physical asset through passive investing without putting effort into finding, creating, maintaining, or selling it yourself.
The Capability to Start Small
You will likely need to invest hundreds of thousands of dollars and agree to a sizable loan if you want to buy a respectable rental property on your own. One property could require a sizable capital investment.
However, you can invest in passive real estate for a lot less money. My initial commitment was $5,000, and I continue to support causes I believe in with payments of $25,000 and $50,000.
Due to the smaller check sizes, I can diversify my holdings and take part in transactions across the nation with various sponsors. I can team up with industry specialists for a small portion of what I would have needed to spend to acquire an out-of-state apartment on my own.
Even if we don’t have six figures in savings, many of us would prefer to make regular early real estate investments. When shopping for passive bargains, it is feasible.
Dealing with the backend is not necessary.
Not having to deal with the two most hated aspects of real estate investing—toilets and tenants—you also won’t have to worry about obtaining a mortgage, getting insurance, interacting with the government, and other issues.
I genuinely like the advantages of real estate investing, but I don’t like these other duties and responsibilities. I’d prefer not to have to consider these issues.
Remember that active real estate investing resembles business ownership and all that entails. When done properly, the investment’s returns can undoubtedly capture the time and work expended to make it profitable.
Most doctors, I’d venture, don’t want to be involved in all the paperwork. A doctor who enjoys working with insurance and charting is easy to find. Regarding real estate investing, the less paperwork I have to deal with, the better.