The Secret Perks I Have Discovered from Investing in Real Estate.

The secret perks I have discovered from investing in real estate.

April 3rd, 2023, By Dr. Brett Levine 

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When I came out of training, like many doctors, I was on a bullet train to catch up on many life goals that I considered distractions from my laser focus on my training.

I wanted to: 

find a life partner, 

buy a home and 

start a family.

When we bought our first home, we slowly fixed it up for our needs.  We replaced the shag carpets with flooring.  We cleaned up the paint colors.  We improved the shrubbery.  We enjoyed creating a home for our family and lives.  Over 5 years, we raised our 3 kids and celebrated many happy occasions.

I discovered 3 practical gains from real estate:

1. After renting for 20 years, I had a sense of pride in owning my own home and making decisions to improve it.
   
   
2. Compared to investing in stocks, I enjoyed being able to see my investment and understand its use through my life experience.
   
   
3. Paying my mortgage rather than rent allowed me to take the same money and create equity for myself rather than someone else.

My own home gave me experience and comfort in understanding an area outside of my medical field.  

As I experienced real estate, I became curious to learn more.  I read.  I listened.  I watched.  I got my Rich Dad, Poor Dad mindset going.  

The tipping point for me was my taxes.  As I witnessed others legally and strategically decreasing their taxes (using Real Estate Professional Status or the Short-Term Rental Tax Loophole), I felt like a fool writing big checks year after year.

My desire for passive income through real estate leads me to begin purchasing single family homes for rentals and investing in syndications and funds.

I learned many more financial benefits of real estate

1. I watched the appreciation of my rental properties over the years so that I can sell them for more than I purchased and make money.  
   
   
2. Real estate is a hedge against inflation since inflation increases its value.  
   
   
3. I enjoy the cash flow of the rental income over the expenses.
   
   
4. I benefit from the tax deductions of depreciation.
   
   
5. Real estate also offers other tax strategies to decrease taxes including cash-out refinances and 1031 exchanges.
   
   
6. I can deduct the mortgage interest.
   
   
7. I value the leverage of a bank mortgage with an interest rate that remains fixed for 30 years.
   
   
8. I understand that inflation will lead to an increase in rent as my tenant pays the rent to decrease in my mortgage balance and pay off the property over time.
   
   
9. As I calculate my net worth semi-annually, I follow my increase in equity for each real estate property I own which increases my net worth passively.  
   
   
10. Real estate allows for diversification of my investment portfolio beyond stocks which can help spread risk.

I have benefited from the Education

1. I have come to learn and understand the importance of my property managers selecting the ideal tenants to reduce lost cash flow due to evictions, turnovers, and make ready’s.  
   
   
2. I observed that flippers make their vertical income from real estate as a job, but buying and owning rental properties can be relatively passive.

I have developed new and valuable Relationships

1. Beyond the horizontal income that I earn from the cash flow of rents exceeding expenses, I have developed relationships with a team of professionals (investor real estate agents, property managers, contractors) who provide me with honest communication and financial opportunities.
   
   
2. I have developed a relationship with a local bank that allows me short term loans for the purchase and renovations of my single family homes.  
   
   
3. I have expanded my network to develop relationships with friends in my mastermind groups outside of medicine who teach me other ways to think and offer me opportunities that I would never have if I was siloed in my “safe” medical mindset and job with a network of doctors who think and act the same.  
   
   

This is how the Transformation occurs.  

1. One house at a time.  
2. Triplex.  
3. Multifamily. 
4. Syndications.
5. Funds.
6. Until you build your real estate portfolio.

And you build your financial life, experience and network.

And a progressive transformation into who I become.

All these opportunities have added to my blessed life.

They can change your life too.

Do you want to learn how to build your own portfolio of cashflowing rental properties? My friends Leti and Kenji at Semi-Retired MD are creators of the #1 course for doctors and high-income professionals called Zero to Freedom. CLICK HERE to join the waitlist for their next course!