How Doctors Earn Passive Income with Real Estate Syndication

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With the COVID-19 pandemic and the ever-increasing administrative tasks being shouldered by physicians, it is no surprise that burnout is becoming a common problem for people in the healthcare industry.

One way to combat this is to help physicians build their wealth through passive income. When they are not limited to their income from their clinical duties, they feel financially secure and less likely to feel burned out. It also makes them feel comfortable knowing they don’t have to worry as much about job insecurity or instability.

The problem is that many doctors do not know where to begin in terms of investing. Of course, there are traditional investing methods such as through the stock market or equities. But there’s another method of investment that works better for busy individuals such as doctors. Here we will be discussing multifamily real estate syndication for doctors.

Multifamily Real Estate Syndication for Doctors

Doctors are busy professional. So, when it comes to real estate investing, they do not have as much time to get actively involved. This is why passive investment is such a great fit for people in this industry. Keeping a passive approach is ideal for doctors because they are not necessarily looking for an extra job. What they want is to have their money work for them without having to exert as much effort as they are already putting into their day job. [1]

Multifamily syndication is the answer to this problem. Through real estate syndication, investors can pool their resources and purchase a property that they otherwise could not afford on their own.

Multifamily properties are duplexes, triplexes, condominiums, and other real estate properties that have more than one unit within a single building. They tend to generate a continuous cash flow because tenants pay rent on a regular basis. But compared to other real estate investments, these tend to be more expensive. This is where syndication comes in.

In multifamily syndication, a syndicator, or sponsor, is responsible for putting the deal together and finding investors. These investors will then put their resources together to purchase a single asset. Investors then earn from the cash flow as well as the equity once the deal is closed. [2]

One of the greatest benefits of multifamily syndication is that investors don’t have to worry about the responsibilities of being a landlord. They don’t have to manage the tenants or deal with emergencies. Usually, property management is handled by another party—if not the syndicator itself.

Physicians may not be familiar with this type of investing, but it’s one that they should learn about. The beauty of multifamily syndication is that investors get benefits that are usually afforded to the actual owner, including tax benefits and appreciation. Most of the income coming from these investments are usually tax-free, particularly when they are offset by depreciation. This means multifamily syndication serves as a sort of tax shelter. Investors get a check either on a monthly or a quarterly basis for the deal’s duration. [1]

Passive Real Estate Income for Doctors

The biggest reason for doctors to pursue this type of real estate investing is to achieve time freedom. As a doctor, having a passive income from multifamily syndication will allow them to decide how much they want to work. This means they can offset any of the decreased compensation that may come when they decide to cut back on their clinical responsibilities.

Developing these alternative income streams may feel empowering for physicians because it means they get to decide how to spend their time.

For some physicians, the goal is to make money while they sleep. This may be due to the long hours they spend in the hospital and their active participation in their clinical duties. A lot of doctors want a passive investment to get some financial freedom as well as the time freedom that comes with it. [1]

Multifamily real estate syndication is one of the best ways to achieve those goals because investors do not need a lot of direct involvement. Their investment can grow even without much action on their part.

Although it is not necessary for all doctors to have an additional stream of passive income, it is important for those who do want to get involved in real estate investing to know that they have this option.

Less Headache for Real Estate Investors: Choose Multifamily Syndication

Multifamily syndication is basically a group investment. This is how investors can purchase huge multifamily deals even if they normally wouldn’t be able to. For example, it is not feasible for most investors to purchase multifamily assets that are worth more than $3 million. But doing so with other investors under a syndication deal is much more realistic. Multifamily syndication can help even beginner investors reach their goal of owning a multifamily property. [2]

The sponsor or the syndicator—in this case, BAM Capital—will handle things like finding the right investment property for the multifamily syndication and looking for investors to complete the deal. Property management will be done by a third party or by the sponsor itself. This means doctors who want to invest in multifamily real estate don’t have to take on any additional responsibilities that normally come with owning this type of investment property.

Why Work with BAM Capital for Multifamily Syndication

Doctors who want to try multifamily syndication for the first time should work with BAM Capital. BAM Capital’s investors love its vertical integration model that mitigates risk.

BAM Capital prioritizes Class A multifamily properties because it values low risk investments for passive investors. It also has a strong Midwest focus. [3]

BAM Capital will arrange the syndication deal so there is no need to purchase an asset on your own. BAM Capital will also handle property management.

BAM Capital works with accredited investors and negotiates the purchasing and financing of high quality multifamily real estate properties on their behalf. This Indianapolis-based company currently has $650M AUM and 5,000 units. Schedule a call with BAM Capital and invest today.

BAM Multifamily Growth & Income Fund III

BAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.

  • Consistent passive income
    Lower-risk assets with in-place cash flows with the ability to distribute preferred return after acquisition.
  • Significant tax benefits
    A cost segregation analysis allows for accelerated deprecation to years of ownership. This large passive loss gets passed onto investors through a K1.
  • Vertically integrated company
    In-house property management and construction allow for predictable cost reduction and value add.

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