Silverton, OR · Member since 2016 · 43 posts · 14 votes
I'm am a pediatric dentist in my mid-30's that loves what I do but don't want to be tied to a dentist's schedule anymore. I am selling my three clinics and trying to decide if I want to do part-time pediatric dentistry and build another clinic to get business cash flow (but still be tied to a schedule somewhat) or make the jump fully into real estate investing. I love both (at least I think I will like real estate investing), but am at a crossroads. I'm looking for some real-world inspiration to help me decide which direction I want to go.
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
10y
So you spent a ton of time and money and generated debt to become a Dentist. A profession that generates consistent high income. You must be good at it as well as the business aspect of medicine if you have multiple clinics and other dentists who work for you. And now you want to give this all up for chasing some real estate investing dream that every high school graduate who can spell Wholesale (and many who cant even do that) is also chasing? Just because you had a falling out with a partner? Folks, if you are highly qualified and educated, there is no better asset or income generating ability than you professional skills. At least do it long enough to pay your debt and build wealth before you throw it all away with the hopes of the mythical lifestyle with 20K/mo passive income!
Entrepreneur · Frisco, TX · Member since 2015 · 88 posts · 44 votes
10y
Read 4-Hour Work Week by Tim Ferriss. Make your money by hiring other dentists to replace your existing practice so that you can still receive the profit left over after everyone's salaries have been paid.
If you have no REI experience, I'd suggest starting out with a turnkey provider or finding investors who need funding for down payments and split the profits with them.
Keep reading REI books, listening to BiggerPockets' podcasts and asking questions.
Silverton, OR · Member since 2016 · 43 posts · 14 votes
10y
Originally posted by @Account Closed:
Read 4-Hour Work Week by Tim Ferriss. Make your money by hiring other dentists to replace your existing practice so that you can still receive the profit left over after everyone's salaries have been paid.
If you have no REI experience, I'd suggest starting out with a turnkey provider or finding investors who need funding for down payments and split the profits with them.
Keep reading REI books, listening to BiggerPockets' podcasts and asking questions.
Thanks for the book recommendation - just ordered it and a few others. I was just about to enter the phase of managing the two other dentists I hired in my two clinics I got going, but had a falling out with my business partner. Now I'm selling for a nice lump of cash plus ongoing living expenses will be covered with the ongoing payout for 4 years. So I feel like maybe I should just make the jump now but am unsure if I can get my cash flow up to where it needs to be within that four years (it takes about $5000/month just to service my student loans since student loan interest is not tax deductible). Any suggestions on how to turn about $100,000 into 20k/month in 4 years?
Entrepreneur · Frisco, TX · Member since 2015 · 88 posts · 44 votes
10y
Understand that getting about a 10% return on your investment is what you can expect from most real estate investments, maybe 12-15% if you find a screaming good deal.
With this in mind, 100k should easily provide 10k in yearly income. With this math, 2 million in cash towards RE investments should get you about 200k a year, roughly 20k a month.
It can be done, but it takes most people a long time to get their passive income that high.
Since you have some serious cash on hand now, I'd suggest using it to fund a commercial multi-family deal that you can buy under market value. Partner up with other dentists, doctors, lawyers, accountants, etc. if you can in order to purchase a larger deal.
By investing in a solid deal, your income should increase year over year due to slowly increasing rents on each unit and eventually paying off the loan on the property.
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
10y
So you spent a ton of time and money and generated debt to become a Dentist. A profession that generates consistent high income. You must be good at it as well as the business aspect of medicine if you have multiple clinics and other dentists who work for you. And now you want to give this all up for chasing some real estate investing dream that every high school graduate who can spell Wholesale (and many who cant even do that) is also chasing? Just because you had a falling out with a partner? Folks, if you are highly qualified and educated, there is no better asset or income generating ability than you professional skills. At least do it long enough to pay your debt and build wealth before you throw it all away with the hopes of the mythical lifestyle with 20K/mo passive income!
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
10y
Tim Richardson if I may kindly recommend a book by the title 'The E-Myth'. Wether you get into real estate or continue with your practice it's a great read.
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
10y
@Tim Richardson if you are just starting out, one of the most important tools in your bag should be a strong W2. Trying to get a loan without a track record or a W2 income is more difficult then most people believe...