Physician Real Estate Investing: Maximize Your Passive Income By Avoiding Potential Risk

Author : Dewey Gabrielo | Published On : 08 Jul 2021

Compared to various other investment options available, real estate is acknowledged as a steady investment choice for the new generation due to various reasons. When invested in real estate with due diligence, it offers mind-blowing returns, amazing tax deductions, diversification potentiality, and other advantages. Following are the top 5 reasons why physician real estate investing has been so popular.

Reasons to Invest In Real Estate

Ensured Higher Return with Minimal Volatility

Historically, investing in real estate has been a steady choice because of its minimal risk of losses. Depending on the market condition, you can hold the property for a specific time and once the market improves, as the value of your home, it helps you get its return. The stock market is always risky. There are various factors outside your control that can impact your ROI drastically. The beauty of physician real estate investing is that with consideration of your busy work schedule you can invest in property as a passive investor while having control over your investment not only because it’s a tangible asset but you happens to be a stakeholder when you go for a property syndication investment project.

High Tangible Asset Value

Compared to all other investment vehicles that leave you no or little tangible value, real estate – be it’s a land or your vacation home that has a certain value. The recession period has taught us how stock prices can dip to zero, even when property sustained a certain value. Also, by choosing homeowner insurance, you can defend your investment value in real estate.

Property Value Increase Over Time Always

History has established repeatedly that the longer one who holds his/her property, it helps them to fetch fairly high returns. Conversely, crashing the stock market is not any new story. While certain factors may cause property value to slip, those who hold their properties during that uncertain phase, eventually get higher returns once their market turns back to the normal level making the property value on the rise again.
Portfolio Diversification

While diversification of investment portfolio is important, it equally spreads out the risk. The major plus point of investing in real estate lays in its versification potential. Given that real estate has some kind of linkage with various other popular asset classes – the inclusion of real estate to a diversified assets investment portfolio can reduce portfolio volatility and get you a better return based on per unit of risk your hold.

Tax Benefits

Another major benefit of investing in real estate is that it helps investors to get a variety of tax deductions based on their investment types. This includes tax benefits on mortgage interest, insurance, and depreciation, cash flow received from investment properties as well as operating costs and others. Most interestingly, by involving in a property syndication project as its passive investor, as you don’t get directly involved in the project endeavor, it helps avail wonderful tax (IRS) advantages on your passive income.

How to Avoid Potential Risks

This doesn’t necessarily mean that investing in real estate is not risky. It is worth noting that being a physician, you possibly don’t have much idea about the realty market. Secondly, while time is a major limiting factor for you and is required for the necessary research and full-time involvement, rather than earning a profit, it may so happen that your property remains unsold for a couple of years.

This is why; joining a reputable property crowdfunding intended for physician real estate investing is a sensible choice. While the model comes with a package of amazing advantages for passive investors like you, never forget to perform necessary research about the sponsor and properties before investing.

David Phelps International, LLC helps dentists, doctors, orthodontists, physicians, and other practice professionals building wealth through passive, income-producing real estate. Helping members with medical or dental retirement plans through real estate investing. To know more, visit