I was caught this week by an email from another dentist (not currently a Freedom Founder’s member).
He was responding to another article that I had written espousing the greater control you have with real estate, versus the stock market.
His response was:
Real Estate isn’t always within our control either. I think buying and holding long term for rentals is certainly the most within your control. Perhaps vacancy rate is the one thing we can’t control or our renters. If you’re flipping properties then there is a lot that is out of our control. Interest rates, market values, property Taxes, exchanges, contractors schedule, RE agents etc.
Sincerely, Concerned Dentist
He brings up some very valid points – over what do we really have control?
I thought you might be interested in my response:
Dear Concerned Dentist,
You’re right. None of us have absolute control over anything. It’s relative.
How much control do we have over the success or failure of our practices inasmuch as we have to deal with many of the same issues as you cite above? Economic cycles, interest rates, taxes, regulatory bureaucracy, fickle patients, corporate clinic competition or managed care intrusion?
Yet somehow, the majority of docs figure it out and ride the waves.
Real estate is no different. You can’t expect to be an effective investor if you treat it as a “hobby” or a sideline interest – how would one expect to compete with all of the factors above if little or no time was spent on the subject?
The question then is, how much time should a professional practice owner put into the study of finances and alternative investments?
Without taking primary focus away from one’s practice and family, I would say, “as much as possible.”
The fast track is finding and collaborating with those who have already done it (= speed) – which can remove a great deal of the uncertainty and mistakes that cause many to shy away from being proactive about their financial future.
The fact is, capital assets build wealth faster than any other investment.
When others are naysayers or tell me that “it’s too much trouble,” I’m more than interested.
I’m a huge proponent of not following “the majority.”
Because the majority is usually wrong.
Here’s to your freedom,
P.S. The Freedom Founders Mastermind Community is all about speed – just-in-time information and access to the best wholesale real estate opportunities in the country. No pitch, no sales. It’s about your freedom! www.FreedomFounders.com/Freedom for more information.