Why DIY Isn't the Best Way

Picture of by Dr David Phelps

by Dr David Phelps


have the benefit of talking on a fairly frequent basis with dentists

 who are looking for a change in their life. 

They want to figure out how to invest their money and replace their active income, so they can have more freedom in their life. That's essentially what we do at Freedom Founders.

What I’ve found is a lot of people have tried different models, different paths. Some people try the traditional method of putting money in a tax deferred account, like a 401(k) or IRA. Look, there's nothing wrong with that plan… if it works. The problem is that today with so much volatility, that’s not a plan that has real merits on the back end. There's no real cash flow. 

Now I've got other dentists who have taken more of an active management of their portfolio and actually tried to do real estate on their own. And look, there’s nothing wrong with that either. That's how I started when I was back in my early twenties, when I had more time than money and I was gaining ground as a dentist. I didn't have a family at that point, so I could spend more time figuring models out, chasing deals, and learning boots on the ground.

Again, there’s nothing wrong with that, if that's the best place for your time. Unfortunately, for a lot of hardworking dentists who are profitable in their practice and able to provide a good lifestyle, what they’re finding when they try to do real estate on their own – whether through friends, family members, a local real estate person, or even just going out on Google and trying to put money in the syndications you can find anywhere – is there's never a game plan around it

Most of them will tell me: “Hey David, I've invested in rental properties, and I’ve put money in this or that syndication.” And I say, “Well, how much cash flow are you getting from your investments?” And most of the time, it's a pittance. It's all promises of appreciation and “You’ll harvest the equity someday.” Well, that's a promise for the future. That does not give any certainty for today.

What we all need and want, is the certainty of a passive cash flow stream – built on assets, not on our work – that will produce regular, repeatable, continuous cash flow that's also indexed to inflation. Where do we get that? You're not going to get that on your own today. You just aren't.

The benefits of real estate are immense. But unless you're in the business of real estate where you've got boots on the ground, you've got a model, you've got a marketing engine, you've got a team of people that can go acquire the properties, manage the properties… If you don't have that, and you're on the outside and trying to do it as a retail investor – wrong time, wrong way to do it. It's going to be a slow, slow, slow, slow process.

Again, real estate is wonderful, but if you want to speed the game up, and actually get a bigger bang for the buck with your capital invested, you’ve got to do it through people who already have the model figured out. “Access points,” or “relationship capital” is what I call it. Yes, you got to pay to play – but the backend results, the reward, the ROI, of doing it with people who have already figured out the model… it's huge. It's a game changer. 

It's what I call an inflection point – hitting the launch point early, instead of trying to do it the long and slow way. Yes, you'll be able to get there doing it on your own, but it may take 20 or 30 years. Is that what you had in mind when you started doing this? No, I didn't think so. 

If you want speed to goal, you need to do it with people who have already blazed the path. It’s what we’ve done in Freedom Founders. That's why we're so successful in transforming the lives of people who come to us and say, “Hey David, I've got this hodgepodge of investments in Wall Street and whole life insurance, and I’ve put some money in some syndications, and yet it doesn't produce anything. It's all promises for the future.” We turn that around.

We start changing the model, so they can actually see the fruits of their labor and their capital today, and build that security – that passive income stream that gives them the confidence that now they've got a plan that's going to work. 

If you're looking for that plan, I invite you to check us out at Freedom Founders

Remember: always stay focused on 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 My Team:

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 schedule a call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to attend one of our upcoming member events as a guest. 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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