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  • #46
    Originally posted by jacoavlu View Post
    do you own real estate besides your home and building your practice is in?
    Yes, I own two office buildings for a total of about 20K sq ft. Also, the one I'm in houses 3 other tenants. I sold my first home after about 6 years of ownership for a >80% profit (less costs of course). Of all people you could probably look that up. Sold a small rental property to my father in law a few years ago as I wanted to cash out of residential. Looking online almost daily for CRE offerings in the area.

    I have a trusted friend that has the skills to remodel and flip houses every few months but not the capital, considering partnering as the equity partner but have not made a decision on that yet.

    My parents and in-laws own at least 10 rental properties each and I help them on multiple fronts there. We'll inherit many of them so I have familiarized myself with them as much as I can including the finances, repairs, tenants, etc. Not too thrilled about the idea of residential personally, we'll se how it goes.

    My next door neighbor is a realtor who owns/property manages over 120 mid-high end rental properties (many of his tenants happen to be doctors new to the area and other professionals). I pick his brain all the time. I have a neighbor who made many millions in land sales throughout the southeast on thousands of acres in the early 2000's. Another neighbor is a general contractor/remodeler also owns multiple rental properties. Another neighbor owns a substantial roofing conglomerate. I'm the poor guy in the neighborhood. I also remain very good friends with the builders and subcontractors that have built our properties and the bankers that finance as they too are valuable sources of intricate information you don't find in a course or online. While of course I don't own all of this it's probably a lot more in depth real estate exposure from different angles than most physicians get. I'm fortunate not to be in a healthcare shell as it's natural to have an aversion to the unknown, I understand all those resources lend to my confidence. To my point I get them on the mic all the time. The power of networking can extend far beyond our healthcare business.

    Maybe one day after accumulating all the properties I, or my spouse, can qualify as a real estate professional if things keep accumulating on the RE front.

    Comment


    • #47
      you should take the course and write a review
      spouse could cut back to part time and get REPS and save you a ton in taxes
      I would consider if my spouse had an interest in real estate

      Comment


      • #48
        Originally posted by jacoavlu View Post
        Anne I missed it, did someone say real estate investing was dumb? Comments made about highly leveraged real estate investing I believe, but not real estate in general. Nearly the entire thread is about the conflict between the message of the WCI and POF blogs vs the "guest post / advertisement"
        At least one person said something to the effect of it being foolish for 99% of doctors. And several other comments that seem to be anti-real estate investing in general. Maybe it’s just my interpretation, perhaps I am reading into it and you are right.

        Comment


        • #49
          Originally posted by jacoavlu View Post
          you should take the course and write a review
          spouse could cut back to part time and get REPS and save you a ton in taxes
          I would consider if my spouse had an interest in real estate
          I plan to consider REPS after discussing with the CPA. Just goes to show you there could be great value even in a controversial article. One man's junk is another man's treasure I guess. Ha!

          WCI and PoF are correct in promoting an exchange of ideas.

          Comment


          • #50
            Originally posted by jacoavlu View Post
            Anne I missed it, did someone say real estate investing was dumb? Comments made about highly leveraged real estate investing I believe, but not real estate in general. Nearly the entire thread is about the conflict between the message of the WCI and POF blogs vs the "guest post / advertisement"
            Are you kidding? It's all over this forum. I won't mention names. Oink, oink.

            Comment


            • #51
              Originally posted by Anne View Post

              At least one person said something to the effect of it being foolish for 99% of doctors. And several other comments that seem to be anti-real estate investing in general. Maybe it’s just my interpretation, perhaps I am reading into it and you are right.
              There is a difference between real estate investment and the "fast fire" highway suggested in the post. Realistically, what is being presented is "amateurs" playing against "pros". It all comes down to finding the right price leveraging it and flipping it. Can it be done? Yes.
              How do you do it? My nephew is a senior at SMU. Major in business with a concentration in Commercial Real Estate. That is NOT commercial buildings. Works full time for a Commercial real estate firm. Underwriting. They do the due diligence for the hedge funds and deals. Education and tools and experience will not be replaced by a physicians course on steroids. Rental property, syndicated deals is not what is being sold. One course and your good to go on a high leverage strategy?
              It's not real estate as an investment. It's the suggestion of the method used. Entry point on purchase price and ton of things going the physicians way. Difficult to pull it off. Don't think for a minute that competition doesn't exist.
              Last edited by Tim; 12-14-2019, 02:44 PM.

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              • #52
                Originally posted by EntrepreneurMD View Post

                Are you kidding? It's all over this forum. I won't mention names. Oink, oink.
                Anne’s comment was about this thread. So was mine. You’re turning this into something else.

                Comment


                • #53
                  Originally posted by EntrepreneurMD View Post

                  I plan to consider REPS after discussing with the CPA. Just goes to show you there could be great value even in a controversial article. One man's junk is another man's treasure I guess. Ha!

                  WCI and PoF are correct in promoting an exchange of ideas.
                  What discussion? If she is spending more than 15 hours a week on the properties, she should claim it.

                  But again, two full days per week. For fifty weeks/year. That sounds like a job, doesn't it?

                  Now: Take the fact that we're talking about a job, add leverage, add good fortune, fudge math of passive investing, throw in a little Tony Robbins/Kiyosaki style spruiking, and that sums up this whole thing.

                  Comment


                  • #54
                    Originally posted by jacoavlu View Post

                    Anne’s comment was about this thread. So was mine. You’re turning this into something else.
                    Okay don't worry about the other real estate threads. I didn't see the distinction in where the sentiment was housed.

                    Comment


                    • #55
                      RE investing is not for me but I think there are a lot of people who are good at it and can do well. My issues are entirely on the inaccuracies presented and misleading salesmanship of the post. I appreciate wci and POF's participation in this. You guys can do whatever you want but it just seems out of character.
                      However I realize that the value you guys brought to the medical community is tremendous. Heck the value you brought to me is tremendous. Other then a couple of books your message and advice never cost me much. Hopefully the people I refer your way spend more.
                      You cannot please everyone for sure. I personally am not going to agree with everything you post. I should just skip it and move on. But when something stinks I guess I have a compulsion to point it out. At least I do not get as nasty as the whole life agents who blow up your comments.

                      Comment


                      • #56
                        Originally posted by G View Post

                        What discussion? If she is spending more than 15 hours a week on the properties, she should claim it.

                        But again, two full days per week. For fifty weeks/year. That sounds like a job, doesn't it?

                        Now: Take the fact that we're talking about a job, add leverage, add good fortune, fudge math of passive investing, throw in a little Tony Robbins/Kiyosaki style spruiking, and that sums up this whole thing.
                        Please see IRS publication 925. There's a little more involved to qualify and as to what activities qualify.

                        You shouldn't fudge math, the CPA is there to make sure it's accurate.

                        I've never read Robbins or Kiyosaki so I can't comment there. I'd rely on more official documents.

                        Comment


                        • #57
                          Originally posted by EntrepreneurMD View Post

                          Please see IRS publication 925. There's a little more involved to qualify and as to what activities qualify.

                          You shouldn't fudge math, the CPA is there to make sure it's accurate.

                          I've never read Robbins or Kiyosaki so I can't comment there. I'd rely on more official documents.
                          You've summarized my tongue in cheek summary quite well.

                          Comment


                          • #58
                            This thread isn’t an example of anti real estate / pro investing. It’s anti “taking inordinate leveraged risks in real estate, then taking profits and releveraging into real estate, then becoming a real estate professional (like that’s even possible for a working physician).” We ain’t talking about a doctor who has a couple of rental properties...

                            To state that this is not appropriate for 99% of working physicians would be an understatement. Let’s call a spade a spade, this is a farce. Oink oink.

                            Comment


                            • #59
                              I am very intrigued by the prospect of real estate investing, both for the potential returns and the tax benefits. It may not be for me as I don’t yet know enough to be comfortable with the risk, and I have no time and even less interest when it comes to actively managing it, but I digress...

                              I don’t know anything about these docs who have been so successful but I’d really like to know when they started their process. 2009? Because the SP500 has a 15% average annualized return from 2009 until now, and I’m certain an individual or company with capital to spend on real estate in 2009 could be very successful over the same timeframe. If they started in 2005 and had re-leveraged their investment several times and for several million dollars when 2007/2008 rolled around we might not be hearing the same success story.

                              I agree with others that their method is akin to a successful stock trader and I was surprised to see WCI refer to them in the podcast. I would take the course for free to see what I could learn about something unfamiliar to me (as I would for a course about trading options). I wouldn’t pay 5 bucks for it though.

                              Comment


                              • #60
                                It certainly seems discordant when real estate is billed as being easy and not time consuming and at the same time real estate professional status (REPS) is highlighted as an important part of the strategy ("This is not a small thing. It’s huge."). However, REPS status requires 750 hours of "services during the tax year in real property trades or businesses in which you materially participated." I would consider an activity that takes 750 hours per year to be time consuming.

                                And of course this assumes the person obtaining the status is not working full or time or has a spouse who is willing to put in the time as: "more than half of the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated."

                                I'm confused by the comment section that states they could spend less time but chose to spend more to get REPS. What counts as time spent if the services you are doing are optional? Of course we know that the IRS is doing less audits but I would curious to know how the IRS would review their status if an audit was performed.

                                Comment


                                • The White Coat Investor
                                  Editing a comment
                                  REPS is super valuable, right? Especially if you can use it to shelter some physician income. So, if you were close to having it (let's say you did 500 hours) why not look into whether you can do more and get it? Instead of hiring a manager, do it yourself. Go to a couple of real estate conferences. Maybe make a real estate blog and online course and start selling it etc....

                                  Too bad there isn't a "blogger professional status." I'd certainly do what it took to get that deduction. It's just such a huge deduction the hourly rate on getting it for someone in their situation is so high that it probably pays better than seeing patients.
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