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Inflation-Proof Investing: How Physicians Can Build Wealth with Real Estate

The 2023 real estate crash isn’t here yet, and we have a great guest article from our good friend Dr. Kenji Asakura at Semiretired MD. When we met earlier this year we bonded over real estate professional status as a tax mitigation strategy, which has served us and our households well. For physicians who go from making $50k in residency to $200k and beyond, we become high-income earners overnight with significant constraints like medical school debt. The taxes on a doctor’s first million dollars are really onerous, especially as we try to get our lives in order, which we’ve typically deferred.

For real estate pro (REP), most doctors must spend enough time actively participating in real estate activities, which is not viable if you have a W2 unless your spouse participates in active real estate. However, Kenji and their community use a short-term rental tax strategy they are the best at guiding doctors through.

With that said, let’s get into it!

As we stand on the cusp of 2024, I’ve reflected on the remarkable synergy between our medical training and real estate investing. It strikes me how the precision and diligence we apply in patient care translates perfectly into navigating the real estate market, especially at a time when the financial landscape is as dynamic as the clinical cases we encounter daily.


Real Estate: The Financial Prescription for an Uncertain Economy

Inflation is a word that’s been echoing through our hospitals and homes, threatening the future potential of our hard-earned savings. As we tailor treatments to individual patients, we can tailor our investments to safeguard against economic fluctuations.

Amidst waning confidence in the stock market and traditional investment methods, real estate emerges as a steadfast safeguard. Real estate values often rise with inflation, protecting and growing our wealth just as our medical interventions protect our patient’s health.



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Debt in Real Estate: Strategic Leverage for Wealth

Debt in medicine typically means student loans, a necessary investment in our future. In real estate, however, debt is not just a liability but a strategic tool for growth. It’s about leveraging good debt to amplify our investment potential, just as we leverage our expertise to maximize patient outcomes. With the right approach, debt can transform from a burden into a powerhouse for wealth generation.


Tax Strategy: The Real Estate Professional Status Advantage

As physicians, we’re no strangers to the upper-income tax brackets. Here’s where Real Estate Professional Status (REPS) comes in—a tax strategy as effective as the most potent therapy. For those qualifying, REPS offers significant deductions, turning potential tax liabilities into opportunities for wealth creation. In a year where every deduction can make a difference, this is a strategy we can’t afford to overlook.


Diversified Income: Real Estate’s Answer to Recession Proofing

In an era where recession is a looming threat, diversification is more than just a buzzword; it’s a shield. Real estate stands out for its dual offering: consistent rental income and potential property appreciation. This combination acts as a defense against the unpredictability of the market. To truly fortify your portfolio, variety is key. A blend of property types—residential, commercial, and short-term rentals—protects your investments, enabling you to navigate through fluctuating economic tides confidently. Think of it as a balanced financial diet that keeps your wealth healthy across various market conditions.


The Technological Edge: Real Estate in 2024

As the digital revolution reshapes our medical practices, it’s also transforming real estate investing. Crowdfunding platforms and AI for market analysis are just some of the advancements at our disposal. These tools align with our analytical skills, allowing us to make informed, data-driven investment decisions and manage our properties more easily.


Your Invitation to a Life on Your Terms

The journey to financial independence through real estate is a profound one, and it’s one I’m passionate about guiding others through. Our new book, Life on Your Terms, encapsulates this journey. It’s a guide that goes beyond financial strategy—it’s about sculpting a life where you are unequivocally in charge.

Our experiences, from first-time investors to financially free physicians, are paralleled within its pages through the journey of a fabled couple, offering not just strategies, but mentorship. Life on Your Terms is your call to action to build not just a portfolio, but a legacy.

As physicians, we’ve been equipped with more than the knowledge to excel in healthcare. We possess the foundation to excel in the financial world. It’s time to apply our medical acumen to our financial health and truly thrive. Let’s embark on this journey together.

Here’s to a life rich in choice, freedom, and wellness—for our patients and ourselves.


About the Author:

Kenji Asakura is a board-certified internal medicine physician, real estate investor who owns over 150+ units of long and short-term rentals in multiple states, a real estate syndicator with 1000+ units under management, blogger, podcaster, and co-author of Life On Your Terms: Why Doctors Use Real Estate Investments to Set Themselves Free and How You Can Too. He’s also the visionary of Semi-Retired MD, a company aimed at helping doctors and high-income earners build their own portfolios of income-producing properties and secure a steady source of income outside of their day jobs. To date, Kenji and his wife Letizia, a fellow physician and real estate investor, have coached over 3,000 students in their course, Zero to Freedom, many of whom have gone on to build rental property portfolios that have provided them with financial freedom. Kenji lives in Puerto Rico with his wife and three small children and spends about five months a year traveling worldwide. 


Information: Kenji Asakura, M.D.

Email: kenji@semiretiredmd.com

YouTube: https://www.youtube.com/channel/UCibjmeDUNn568Egl5TppnPg

Instagram: https://www.instagram.com/semiretiredmd/?hl=en 

Website: https://semiretiredmd.com/

Podcast: https://podcasts.apple.com/us/podcast/doctors-building-wealth/id1605995649

FB: https://www.facebook.com/semiretiredmd/

Linkedin https://www.linkedin.com/company/semi-retired-md/


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