Freedom Founders

Where's My Best Return on Investment?

by Dr David Phelps

by Dr David Phelps

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A

 question I get asked a lot is: Would I be better off investing in more businesses (such as opening another dental practice), or investing in Real Estate?

 That’s a big, wide question and I’m glad you asked it. I’m going to answer very generally because there are so many variables.

In general, yes, a well-modeled, rock-solid business is the best return on investment. If you’re active in the business and it has the right infrastructure, systems, and processes, you’ll be earning a 50-100% return. For a passive owner investing in a business, a 10-20% return is considered very good.

So you have to decide if you want to be an active investor, putting your time in to earn that wealth. It’s fine to do that – and when you’re young, you need to. But the majority of private dentistry practice owners aren’t really great business owners. They’re great technicians and should be getting a good return on that investment, but it’s not at all passive.

Many times a small business or professional practice owner will try to duplicate whatever they’re doing in their one practice – trying to get the same results with a second one – but it just doesn’t work.

The reason why is that the systems, processes, HR, management, and leadership are missing. You, the owner, are used to doing everything and wearing all the hats, and you get stretched.

I want you to be more passive. You don’t need another job. If you’re the one actually doing the job, working with “your hands in the mouth” – that will be your best time value. 

But if you want to be more passive when it comes to building wealth, alternative investments and Real Estate are the best way. And there are so many different ways to invest in Real Estate. You don’t just have to buy equities, rental property, or fix-and-flips.

Because of the collaborations and synergies that we create in groups like Freedom Founders, finding the right (and very passive) investments is easily done. We are also a place where you can learn about the different asset classes and gain access to investments you otherwise wouldn’t.

Again, my broad answer to that excellent question is: Your best return on investment depends on where you are, what your goals are, and how much active time you’re willing to put into your various investments.
To your freedom!

P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :

1. Schedule a Call with Me:

If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital (can include residential/practice equity or practice sale), then click the link to jump on a quick call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to schedule a call with me directly. www.freedomfounders.com/schedule

2. Get Your Free Retirement Scorecard:

Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.

3. Ready to Step Away?

“How Much is Enough?” This simple question keeps hard-working professionals at the hamster wheel of active income far longer than they need to be. Watch this free training, and discover a proven model for determining how much you really need before hanging up the handpiece! www.freedomfounders.com/training

4. Apply To Visit The Mastermind:

If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (3-5 years or less), visit www.freedomfounders.com/step-1 to apply for a guest seat.

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