All Forum Posts by: Franky Davis

Man thank you for the reply! I’ll get after it. 

Hello everyone....this is a desperation post. I have been with state farm for a few years now for commercial and for personal use. I hold all of our real estate rental portfolio with state farm. Our business insurance premiums were $34k+ last year. I am wondering if anyone has any advice as to how to go about this differently. That seems astronomical to me and I would love to find out what other people are doing.

@Nicholas L. thanks for the response man. I've actually founded our local REIA within the last year because of how rural our town is. So that's been good. But it's still just slow.

Sure have haven’t been as active as I’d like. I’m going to initiate that for sure. I kind of wanted to see how much crossover there was with this community as well. 

Hello BiggerPockets community! I love this group and I’ve learned a ton from the bigger pockets podcast. I wanted to use this post to try to network with doctors interested in real estate. I’m an orthopedic surgeon and got started by real estate as a resident physician. We purchased $650k of assets as a resident and have grown that significantly since then. I’d love to find out what people are doing and how they’ve decided to get into the space. My wife and I use real estate professional status to minimize our tax burden and have had a lot of success doing this. Please give me the resources. You’ve utilized for information as well as the networks and communities you enjoy participating in. I’m also interested in networking with other higher income earning professionals in similar situations. I can’t wait to hear back from people! Have a wonderful day.

Hello everyone! I hope you all are doing well. It's been a while since I posted. However, I'm sort of at a standstill in my real estate career. I'm a full time orthopedic surgeon at this time. Over the past two years (starting in residency), my wife and I have worked hard to build our real estate portfolio. Starting with a single duplex, we've been able to build now to a portfolio consisting of two duplexes, a 10 unit commercial building, a mixed use commercial/loft apartment property and a 91 unit self storage facility. Additionally, we've been able to force appreciate and add significant value to these properties to allow me to build a fairly large amount of paper equity that has given me some continued buying power moving forward. I am posting here because I am at a point where my ability to dedicate my time to this endeavor has been sort of limited. I have grandiose goals of growing our brand and really focusing on lead generation/customer relations management. Also, I want to further our social media presence. That has brought me to consider bringing on a personal assistant to help extend my ability to be productive during the work week. Has anyone else been in this situation? How did you go about it? What ended up happening? What sort of productivity were you able to achieve following this decision. My other list of projects include: launching a physician specific online course, starting my local real estate investment association meetup (REIA), and putting together a fund of interested orthopedic surgeons that I have networked with who want to invest in real estate. Thank you all for your time with the long post and I look forward to some great advice!

Thanks for the replies! I haven’t logged on in a while. My practice has been getting busier which is good but cramps the free time.

@Brett Riggins- We do use a local property manager. I think this is critical as it allows me to scale and doesn’t require my daily/weekly time investment. I’ve had one that had to be fired and the manager I’m using now is a gem so that takes some trial and error. She handles most communications and issues day to day. I have a google voice account for any other communications with vendors/handymen/contractors required.

@Greg R.

@Greg R. thanks man! It’s going well. I’m continuing to try to scale which can feel like spinning our wheels. I wish you the best as well!

@Alicia Marks great thoughts for sure. We have been using real estate professional status for two years now. She qualified as a teacher with documented hours and throughout the year. The tax implications have been huge for my orthopedic earned income. 

@Bonnie Griffin Kaake I have not specifically looked into that and have not heard that as an option with my accountant. Thanks for the idea! I’ll see if there’s a way to claim those deductions at this point. Have a great day!

Hello everyone, I hope you all are doing well and starting off the 2022 year right. I wanted to start a line of communication for this specific investor category. Specifically, for high income earners (1099/W2) who have a spouse who is either a home-maker or works <750hrs/year in his/her job. With this scenario, it is possible to take passive loss from this high income salary utilizing depreciation through your spouse’s real estate professional status! I’m sure this is well known on the forum. However, I wanted to spawn some discussion. I’m an orthopedic surgeon. My wife is a special ed teacher. However, this year, she has taken the year off to assist in our move to a new location and focus on getting our kids settled and plugged in. We have several investment properties and made a moderate amount of purchases in 2021/early this month. Because of our arrangement, she has been able to document her work ours as greater than 750/year and greater than the hours contributed to her primary profession. That is what it takes to qualify for REAL ESTATE PROFESSIONAL status. She doesn’t have to be an agent or broker. She doesn’t have to have her license. Plus, this has allowed us to perform cost segregation studies on our properties and utilize accelerated depreciation schedules to drastically decrease my tax burden. It essentially allows me to take money that would be given to Uncle Sam (>40%) and contribute that money as a down payment for a property that will subsequently be used for this same strategy. Thanks everyone and thanks to this community for providing like minded folks who are trying to achieve financial freedom. Because of you, we are well on our way. I’d love to give back and help others achieve the same.

@Jeff Copeland man I appreciate the comment. We are absolutely pursuing that as we speak. I’m essentially looking to purchase enough yearly to cost segregate and accelerate depreciation to mitigate as much tax burden as possible from my orthopedic salary. So far, the method seems to work. I recommend this for sure for high income earning professions that are still exchanging time for money. 

Hello everyone….I hope y’all are still doing well. I posted a little update. The journey has been wild so far but it’s been very fun and a great learning experience. I’m posting the link here to stimulate some conversation if anyone is interested. Have a good one!  https://www.biggerpockets.com/...