It is a fact that real estate is the investment vehicle of the wealthy. However, not many physicians are keen to hop on board and take advantage of this massive income opportunity. Luckily, Dr. Ross Sherban, spinal surgeon and the head of Sherban Spine Institute, thought otherwise, and he knew exactly where to invest his hard-earned money.
Dr. Sherban sold his beachfront home in Ocean Ridge, Florida, for $10.1 million. The 6,389-square-foot, two-story house was built in 1995 on 0.7 acres, which he initially bought for only $5 million in 2018. After acquiring the property, he has made few home improvements, including interior demolition, exterior alterations, and pool construction. All in all, Dr. Sherban made a solid profit out of his initial investment in 2018.
Real Estate Investments Fit for a Physician
If you want to grow your money twice as fast with minimal effort, then following in Dr. Sherban’s footsteps and investing in real estate is the way to go. Physicians typically spend about 40-60 hours per week at work, sometimes even more. With work consuming most of their time, the remainder is spent with family, friends, and leisure. That doesn’t leave much room for actively managing an investment. Fortunately, real estate investment is an option that understands a physician’s level of commitment and time. There are several options one can choose when investing in real estate. However, we find two best suitable options for a physician: Active Investment and Syndication Investment.
Active Investment means you are the sole owner of the acquired property, either an SFH (single-family home) or a small commercial property. As the sole owner, you get to keep all the income generated by this property and enjoy real estate tax benefits. Syndication Investment is our favorite. In this type, you will be part of a group of investors that have pooled their money to buy a relatively large commercial real estate. The large commercial estate acquired will be handled by a real estate sponsor that does all the labor-intensive work. Syndication investment is very much passive investment. You make good real estate profits that come with real estate tax benefits.
Why Should Physicians Invest In Real Estate?
Having a real estate investment is essential to make money work for you, just like how you work hard for your money. These assets from your investments are how you establish your financial security. It provides you an additional income which over time will enable you to take that dream holiday, buy that dream car, or grow that retirement fund. On top of that, your additional income made from real estate investments may open up broader credit lending doors. Lending institutions lend more money to people who make more money.
The real estate market is ever-changing. The more you educate yourself about investment properties, the more prepared you will be when an opportunity presents itself. As a physician, it is easy to get swept up in providing care for others that sometimes, you forget to take care of yourself. It would help if you remembered to put your overall well-being first, including mental, physical, emotional, and financial. Financial literacy is vital and will help you to become an even better contributor to the economy.
Top Doctor Magazine is a magazine from doctors for doctors and patients. We cover everything from cutting-edge medical techniques and procedures to enterprising doctors, dentists, surgeons, naturopaths, chiropaths, orthodontists, and more who are thought leaders within their own medical practice and changing the way we all experience medicine for the better.
We wish to be your one-stop digest for inspiration by other professionals in your field who are making waves and setting trends. If you, too, are a trend-setter, reach out to us so we can interview you for your own spotlight within an upcoming Top Doctor Magazine issue!
Brianna Connors & Derek Archer Co-Editors