Unlock Your Potential – Take Your 1-Minute Assessment Now
Unlock Your Potential – Take Your 1-Minute Assessment Now
If you’re a doctor, medical professional, or another high-earning earner with a demanding and stressful career, we have some phenomenal insights on how you can build the financial success you deserve so you can live a life of freedom.
The ability to generate cash flow is one of the main reasons why many investors look to real estate as an investment vehicle. In addition, real estate is commonly a person’s biggest asset and can provide significant tax benefits. It’s important to understand your net cash flow so you know what is really working on your real estate investment.
If you own or manage a property as part of a trade or business, you can take advantage of a variety of tax breaks and tax deductions that can save money at tax time. In general, you can deduct the reasonable costs of owning, operating, and managing a property.
Real estate investors use a combination of rental income, any profits generated by property-dependent business activity, appreciation, and even leverage to make money in real estate. By owning properties and selling them at a later date, real estate investors can make a tidy profit.
Investing in real estate can generate recurring rental income, create profits from long-term appreciation in property value, and offer tax benefits unique to real estate investing.
Physicians invest in real estate including directly owning single-family rental (SFR) property, purchasing shares of a real estate investment trust (REIT), or contributing capital to real estate crowdfunds.
Real estate provides an inflation hedge as rental income and property values typically rise with inflation.
Real estate investments offer a sense of stability and predictability that can be appealing to medical professionals, who often face unpredictable work schedules and market conditions.
Real estate is a tangible asset that can be seen, touched, and managed, providing a sense of security and control for the investor.
Investing in real estate can be a part of a medical professional's retirement plan, providing a steady stream of income in retirement.
In most cases, net income collected from a rental property is not subject to withholding tax, such as Federal Insurance Contributions Act (FICA), Federal Unemployment Tax Act (FUTA), and State Unemployment Tax Act (SUTA).
Investing in real estate diversifies a medical professional's investment portfolio and helps mitigate risks associated with investing in only one asset class.
Real estate investments can offer asset protection from lawsuits and other legal actions, providing a layer of security for medical professionals who are at risk for lawsuits and malpractice claims.
Real estate can be a valuable tool for wealth transfer to future generations, providing a long-term investment strategy that can be passed down to heirs.
Real estate investments are often in high demand, particularly in growing cities and regions, making them a potentially lucrative investment opportunity for medical professionals.
Real estate investing offers a range of options, from single-family homes to commercial properties, allowing investors to choose the type of investment that best fits their financial goals and personal preferences.
Eric Chadderdon is one of the Founders and Managing Partners with Gibby’s Capital Investments, a real estate investment firm headquartered in Houston, Texas.
Having grown up in and around real estate in Oregon, primarily in single-family, he later saw the transition to multi-family investments being the way of the future for him and his family. Eric has a Bachelor of Science in Health Science Studies and also General Business from Boise State University (Go Broncos!).
He spent over a decade in direct sales and management before making the transition full time to multi-family real estate. He’s made some of the strongest partnerships with other fast-moving, calculated, and successful real estate investment entrepreneurs. As the head of Investor Relations Eric provides investors strategic opportunities to diversify their portfolios with multifamily properties. He provides insights on market activity, cost segregation, bonus depreciation, property performance, and manages quarterly earnings as well as annual K1 reports.
Warning of a potential recession on the horizon. There is a lot of noise about an economic collapse, meaning investing might seem risky.
While none of us know how the wind will blow, the Federal Reserve has recently raised federal rates amid inflation’s 40-year peak.
Let’s explore different possibilities to find stability through multifamily investing amid the shaky tide of net losses and gains.
Suffice it to say a severe market decline is a potential reality that we all must bear the burden of withstanding in questioning where we choose to invest.
Market fluctuations have also grown significantly more volatile, with economists predicting a 60% recession probability within the next 12 months.