Passive Real Estate Investing

5 Reasons Doctors Prefer Passive Real Estate Investing

You must wonder why should doctors invest In Passive Real Estate Investing (like personal finance). It requires further research.  There are two main types of investors. Active and Passive. Active investors are defined as those who control their properties and manage them like a business. These “do it yourself” investors typically keep a portion of their portfolios in cash and fixer-uppers to improve the cash flow on their property. 

Passive investors, on the other hand, are defined as those who outsource property management to someone else or go the rental route. They earn returns from rent checks that check into their accounts each month – checks they don’t have to chase or make a property tax payment for because someone else does that for them. It’s a much more passive lifestyle than active investing.

Passive Real Estate Investing is becoming a trend among doctors and the best idea for passive income. More and more doctors, even those just getting started in their careers, are turning to passive real estate investing. I was talking to an ophthalmologist and he mentioned that he really doesn’t have time to work on anything else than his practice. That is the reason he invests in the multifamily and other similar asset classes passively. It’s really encouraging to see physicians make such a shift from traditional models.

Not every physician wants to own a practice, or manage staff and hire doctors. Some prefer the freedom of being a contractor and not answer to anyone but themselves and want alternative careers for doctors. Additionally, physicians can generate a lot more tax-efficient money in real estate than they can in traditional businesses like medical practices through investing. Here are five reasons why doctors are becoming actively involved in passive real estate investing.

alternative careers for doctors

1. The no-hassle, turnkey nature of the investment

Many physicians and medical practitioners are choosing to invest in multi-family real estate by becoming a partner or partial owner of apartment buildings. While passive investment in real estate is not a new concept, an increasing number of doctors are using it as a way to supplement their primary income, or even replace their full-time job. After all, the no-hassle, turnkey nature, and a high potential for return make passive real estate an attractive option for many.

2. They can invest in their own home market

Passive real estate investing offers doctors and other high-income investors a way to hold real estate investments around their homes or in local markets. But many are hesitant because they think it is too simple, too good to be true, or not a good fit for their profession. The truth is that passive real estate investing can be a legitimate way for many doctors to meet their investment objectives.

3. They are more patient when it comes to ROI

Due to the initial outlay of cash and other investment considerations, doctors often develop a more patient perspective when it comes to ROI. They usually don’t need much cash flow and this helps them to get into opportunities with bigger upside. This is one of the reasons why passive real estate investing may work so well for them in the long run.  A lower 

4.  Passive investing – Time efficient way

Doctors are known to be very busy people. They have a lot on their plate, and when they decide to buy a property, they want it to be quick and easy. Passive investing replaces all aspects of buying rental property while still offering the same benefits of being a landlord. You get everything done for you and all you do is review the offering and you are good to go.

5. That they can make money every month from tenants without lifting a finger

What if I told you that there is a way that you could make money every month on a property, WITHOUT taking care of it AT ALL? The best part is, you don’t have to be rich or own expensive rental property to make this happen.

Conclusion

Passive Real Estate Investing is an attractive investment for physicians and other professionals because it allows them to diversify their holdings and target specific types of returns. The tax efficiency matches their long-term goal of accumulating wealth.

Doctors have to constantly make decisions. To take care of the complex medical issues in a complex work environment, reimbursements, and changing quality mandates. Choosing a passive real estate investment opportunity means eliminating one of these complex decisions and letting someone else handle it for you. Of course, that’s an oversimplification, yet an effective mechanism to add this to your investment routine. Visit us at www.bluoceancap.com like and subscribe to our social media channels to learn more. 

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