Throughout my career, I was hesitant to invest in real estate. Now I have participated in $190 million in commercial multifamily real estate acquisitions along with our asset manager partners.
Doctors, in general, tend to be very risk-averse. We are taught to invest only in things we understand. Well, the only thing we are taught in medical school is medicine. So how then, are we supposed to know how or what to invest in?
Enter financial planning. How many times are we told to “diversify, diversify, diversify”? The famous “diversification” strategies are used so that when one investment class goes down, hopefully another one will go up…and I stress “hopefully”. Warren Buffet states “Diversification is protection against ignorance. It makes little sense if you know what you are doing”. I am not against diversification, but we need to know where our money is going.
I have been there and done that. I have invested in the stock market, made money and lost money. For example, there was a time I owned quite a chunk of Apple stock. My financial advisor informed me that there were some insider trading scandals looming in the future for Apple. The advisor highly recommended that I sell all my stock, which I did. Soon after, the first iPhone was released. In retrospect, selling my Apple stock was not a good move, to say the least. For years after, I shied away from the stock market because I felt that all my financial decisions were based on someone else’s recommendations. These recommendations were loosely based on the economy, politics, oil prices, wars, etc.
So, I did what many doctors do. I started swinging for the fences, trying to get a home run on every single investment. I started a medical spa, opened an online apparel company and started a bone-conduction headphone company. I heavily invested in several startup companies. The potential payoff may still be excellent, but due to factors outside of my control like FDA clearances, etc…, it is difficult to know when that day will come.
This was my dilemma. How can I continue to perform pediatric ear reconstructive surgery, which is my true passion, and at the same time have investments that are growing, providing cash-flow and providing financial security for me and my family…regardless of the economy?
This is where I discovered commercial multifamily real estate investing. No matter the state of the economy or the state of the world, people still need a place to live. In this asset class, we profit from multiple sources: 1) Cash Flow 2) Appreciation 3) Principal Pay Down, 4) Inflation-Hedging and 5) Tremendous Tax Benefits.
In the graph below, you can appreciate how a $10,000 investment would have performed when invested in commercial real estate versus the S&P 500 Index:
I have participated in over $190 million dollars in apartment acquisitions in San Antonio, Houston, Fort Worth and Dallas. After collaborating with our asset manager partners, we founded Axon Equity, LLC to offer these unique real estate deals to our doctor partners. Our asset manager partners have over $600 million in combined assets under management.
Let’s face it. We are all in the same boat, with very similar worries about the health and business of medicine. Let’s continue to do what we trained so hard for and practice medicine with vigor and passion. Financial education is a key component to our success.
To learn more about this amazing asset class and become our partner, please watch our “Introduction to Multifamily Investing For Physicians and other Health Care Professionals” webinar. Register below to watch webinar. We will be having our next large investor meeting soon. Don’t miss out on our next acquisition. Feel free to call us for details at 210.696.RENT.
Learn About The Multiple Income Streams That Doctors Can Have With Commercial Multifamily Investing
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