age find themselves working year after year without making much progress in wealth-building. By investing in real estate, I’ve found one can experience more financial freedom and a more se- cure financial future. For many of us, the goal is to be able to leave a legacy behind, both professionally and provisionally. A portfolio of real estate rental investment properties with positive monthly cash flow, for example, is every bit as legitimate as a stock portfolio, and it’s more fun to create. In addition, your odds of picking and maintaining a solid real estate investment are much higher (and have a better long-term upside) than beating the stock market by accumulating hot stock tips, courtesy of your colleagues who are investing their hard earned dollars on a whim without doing the required homework, an all too familiar experience for my friends in the healthcare field. ALTERNATIVES TO SFH INVESTMENT PORTFOLIOS In networking with new real estate investors, I’ve found the pri- mary investment vehicle they read about or see on television is the single-family home (SFH), either in the form of a flip or a buy and hold. Don’t get me wrong, I enjoy watch- ing the transformation of living spaces on TV just as much as the next person, but while a portfolio of these homes is a great investment, there is a downside. Each home re- quires significant maintenance and management to turn a profit. I’m beginning to dig into an easier and more cost-effective version of this model, which is the multi-family unit — duplexes,
triplexes, and quads. The cost for these homes is often comparable to the cost of an SFH (depending on where you buy), while generat- ing two-to-four times the monthly income. In addition, when the maintenance and management for multiple units is centered in one building, you can save time and money on both. If you are just starting out, I suggest taking a look at this niche and considering the possibilities it presents. Create a snowball effect: purchase your first building, pay it off as quickly as possible, then use the equity to help finance your next acquisition. A consis- tent program of portfolio building can start generating significant passive income in just a few years, even while you continue to acquire new units. LONG-TERM BENEFITS In terms of creating genera- tion-spanning wealth, you can’t do better than investing in real estate for the long-term. Because your heirs inherit the portfolio at its stepped-up value, they are sheltered from capital gains taxes. You can tap into the equity value in your golden years (like Abhi and I plan to), then pass the portfolio on in your will, creating either an investment vehicle or a significant cash-value commodity. •
Healthy Passive Income
a uniquely valuable resource for this type of financial strategy, and Abhi’s expertise in that field has been invaluable in helping us cre- ate a plan for passive income and long-term gains. I feel this is an approach that healthcare profes- sionals should take as it helps to secure one’s future while minimiz- ing many downside risks. FINANCIAL CHALLENGES IN THE HEALTHCARE PROVIDER COMMUNITY With student debt sitting at unprecedented levels and the desire to provide the best for their families, healthcare professionals are uniquely squeezed financial- ly. While many of my colleagues went into medicine at least in part because of the perceived financial freedom it brings, a high percent-
A HEALTHCARE PROFESSIONAL SHARES HER STORY AND WHY PASSIVE INCOME MATTERS FOR EVERYONE.
by Vanessa Engineer, M.D.
inning the money game means different things to
ed to write a book titled HEALTHY PASSIVE INCOME: A Fun, Disci- plined Investment Methodology for Busy Healthcare Professionals. My husband (real estate in- vestor and Think Realty resident expert, Abhi Golhar) and I have taken a long-term view of financial planning and investing, one that encompasses the notion of gen- erational wealth building rather than short-term acquisition and spending. Real estate investing is
different people, especially to healthcare professionals. As a researcher in the healthcare field, I have conversations about wealth building with my colleagues on a regular basis, and one thing stands out to me, time and time again: the concept of building wealth doesn’t exist in the healthcare community as much as it should. So, to inspire healthcare professionals, I decid-
Vanessa Engineer is a medical doctor, author, and real estate investor. She and her husband, Abhi Golhar, offer advice to help people do more with the
money they earn. Read the book and get in touch to find out how you can create a plan that works for you, your family, and your future. Learn more
and continue the conversation at www.healthypassiveincome.com.
22 | think realty magazine :: july / august 2019
thinkrealty . com | 23
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