Real Estate Investing

The #1 Financial Trap Most Doctors Fall For & How To Avoid It

By October 20, 2016 April 5th, 2019 No Comments

Have you seen this article in Entrepreneur magazine?

Why You Should Be Investing Your Money In Real Estate

In it, author, attorney, & CPA, Mark Kohler discusses 6 compelling reasons why people should invest their money in real estate.

His 6 reasons are:

  1. Gain more leverage
  2. Grow, tax-free
  3. Tax free cash flow
  4. The tax write-offs against your other income
  5. Increased tax deduction strategies
  6. Rental real estate is a forced retirement plan

He’s right! We all know that real estate is a proven wealth-generating asset class.

Unfortunately, this article lumps all real estate asset classes into one category. When you look at the safest real estate asset class (Multifamily), the argument gets expanded and becomes even more compelling.

  • Better risk/return dynamics; Over any 10, 20, or 30 year period, multifamily real estate has the best Sharpe’s ratio (risk-adjusted return). What that means, is that apartments have historically provided the best return of any other real estate asset class with less risk.
  • Higher stability/lower volatility; Volatility = risk. Commercial multifamily real estate is almost three times less volatile than stocks and REITs. In fact, its low volatility approaches that of bonds with much better yields and the ability to grow in value.
  • Stock market cycle resistant; Multifamily real estate follows the demographic cycles and not the market cycles. Having an asset that is not correlated to the stock market makes for great diversification.
  • Evergreen Asset Class; An investment in apartments is an investment in the basic need of shelter. As such, this asset class cannot go the way of the steam engine, the horse and buggy, Blockbuster Video, or Kodak (just to name a few).

I could go on and on about this asset class, but instead, I covered this and so much more on my recent webinar:

Multifamily Real Estate Investing 101; What Every Doctor Should Know About Investing in Apartments

With all the changes taking place in medicine, doctors have been inundated with crushing regulation and bloated bureaucratic nonsense. Now more than ever, it has become critically important to create stable streams of passive income outside of medicine.

Building a financial plan that is 100% dependent on earned income and your own labor is risky in medicine today when we know that more than half of all U.S. doctors are experiencing some degree of professional burnout. In fact, according to the Mayo Clinic that number is 54.4% and rising.

While you can’t buy insurance against burnout, you can develop passive income that isn’t dependent on your labor.

I’ve never understood why most doctors don’t have real estate in their portfolio. The three reasons I most commonly hear are:

  1. I don’t want to become a landlord
  2. I don’t have enough money to buy a multimillion-dollar apartment building
  3. I don’t have the information or access to get started in this asset class

The good news is that we’ve solved each of those problems for you!

You don’t have to have millions of dollars and you don’t have to become a landlord.

If you want information and access to apartment investing and all of the benefits mentioned above, it all starts with watching this webinar:

Multifamily Real Estate Investing 101; What Every Doctor Should Know About Investing in Apartments

Want to learn more?

Download your free copy of Evidence Based Investing and learn why it’s a preferred asset class.

Download Now

Dennis Bethel

Dennis Bethel

After 18 years of working in the trenches of a broken health care system, Dennis Bethel, M.D. extricated himself from medicine utilizing the power of passive income from real estate. Now he helps others conquer their number one financial fear, cut their biggest expense, and tame the greatest threat to their careers.

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