Passive Real Estate Investments for Physicians
Private commercial real estate investments provide an excellent vehicle for investors to protect and grow wealth. With the JOBS Act 2012 passing, accessing private real estate deals has also never been easier.
However, with new opportunities comes new challenges. Today’s investors must sift through the vast information presented for each deal to make a wise, informed decision.
We’ve created this page as a resource to help you easily invest in real estate crowdfunding. The companies listed on this page are our partners, which our team members have vetted extensively and have personally invested in many of them.
This page contains affiliate links to these crowdfunding companies. Signing up through these links may result in a commission paid to support our site.
Recommended Real Estate Investment Companies for Physicians
Passive Real Estate Investing 101
Real estate investing is an investment that involves real property or a tangible asset such as a house, office building, apartment building, warehouse, or even empty land.
Real estate investment generates a return on your initial investment via cash flow and/or capital appreciation. Given its capital-intensive nature, it is often considered riskier than other forms of investing, such as mutual funds, bonds, or CDs. That said, it typically has higher returns.
There are two general categories of real estate investments: passive and active real estate investing. The difference between these two types of investments is the level of involvement you will have.
Passive vs. Active Real Estate Investments
When deciding to invest in real estate, it’s essential to consider your level of involvement, control, time, abilities, and commitments. These factors are essential because, if you don’t match up your interests and goals of your investment, it can lead to poor decisions and potentially poor results.
Passive real estate investing gives you little control or involvement and requires little time or commitment. On the other hand, active real estate investing gives you the most control and involvement but also requires more time and commitment.
Some of the most common passive real estate investing strategies include
REITs (Real Estate Investment Trusts)
Real Estate Funds,
Real Estate Crowdfunding Investments
A more active real estate investment can be owning and renting out a single-family home or investing in a small multifamily real estate property to run and manage yourself.
The short answer is yes, most people should consider investing in real estate. Especially in today’s market, passive real estate investing has become cheaper and more accessible than ever.
Real estate investing is a major asset class you don’t want to exclude from your portfolio. In addition, real estate investing has excellent historical returns, and most millionaires in the United States are invested in some form of real estate.
There are many ways to invest in real estate in today’s market, so you will likely find at least one form of real estate investing that works for you.
For many physicians, active real estate investment may not be ideal due to the time commitment and level of experience required. If you’re new to real estate, consider investing in passive real estate instead.
Passive real estate is a great way to capitalize on the many benefits of real estate investing without the hassle of active management. Passive real estate will allow you to invest in properties or funds that generate income, have high growth potential, and are less risky than active real estate investing.
Real Estate Investment Companies Detailed Review
EquityMultiple is a secure online platform that connects accredited individuals with exclusive, pre-vetted commercial real estate investments. This platform is highly accessible with minimum investments as low as $5,000.
You can invest passively alongside experienced real estate companies in debt, preferred equity, and equity projects nationwide. They allow you to diversify across property types, risk/return profiles, and markets to build a more robust, resilient portfolio.
EquityMultiple features full-cycle investing, providing transparent asset management updates and attentive customer service. This is the only platform focused exclusively on institutional, commercial real estate, with the backing of Mission Capital – a national leader in CRE finance solutions with a 10+ year operating history.
EquityMultiple offers innovative technology, personalized support, exclusive access to real estate investment products and industry-leading asset management, creating an unparalleled investing experience.
EquityMultiple is offering PoF readers an exclusive promotion. All PoF readers will have their management fee waived on their 1st investment.
Type of Real Estate |
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Minimum Investment | $5,000 |
Investor Application | EquityMultiple Application |
DLP Capital Partners is an impact investment company. They work diligently to provide excellent returns to investors while tackling four crises in our country: lack of affordable housing, lack of fulfilling career opportunities, difficulty for families to create generational wealth, and the shortage of happiness in the United States.
All DLP funds have the following criteria: 1) they are evergreen, 2) they invest in critical workforce housing, 3) they are targeted to provide above-market returns, and 4) they pay preferred returns before DLP takes a management fee.
Within that context, DLP aims to make real estate investing straightforward, easy to understand, and profitable for its investors. The investment company offers five funds giving more options to a broader range of investors. These funds include
- DLP Building Communities Fund
- DLP Preferred Credit Fund
- DLP Housing Fund
- DLP Lending Fund
DLP Building Communities Fund provides equity investments in developing and constructing new rental housing communities. It has the highest targeted net return of all DLP funds at 13%, with annual distributions and liquidity.
DLP Preferred Credit Fund invests in real estate loans for real estate operators. The loans must meet several requirements and are issued to high-quality borrowers against non-owner-occupied, single-family, and multifamily assets. The DLP Preferred Credit Fund has the highest targeted preferred return (9%) of the current DLP funds.
DLP Housing Fund is a Private REIT that invests equity in existing multifamily rental communities. It offers a 6% preferred return and targets a 10-12% net return to investors.
The DLP Lending Fund is a highly diversified REIT that offers 90-day liquidity. It is designed to moderate risk while still providing solid returns. It has an 8% preferred return and a 9% net return target for investors.
DLP Capital also offers the DLP Positive Note Fund. Secured by a note agreement, this fund offers guaranteed fixed returns of 5-7.5%, with monthly distributions and the lowest cost of entry at just $100,000.
There’s more to these funds than presented here, but this gives an overview of what you can expect from your investment with DLP Capital. If you connect with their team, they can provide more details and show you how to get started.
Type of Real Estate | Real Estate Funds
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Minimum Investment | $200,000 exclusive offer to PoF readers *Physician on Fire reader has access to a lower minimum required investment for the funds mentioned on this table to only $200,000, compared to their standard investment minimum of $500,000. |
Origin Investments is a private real estate fund manager that helps individual investors protect and grow their wealth by providing tax-efficient real estate investments in the multifamily sector. We build, buy and finance multifamily real estate projects in fast-growing markets throughout the U.S. We also offer credit Funds through our affiliate firm, Origin Credit Advisers, an investment advisor registered with the SEC.
Since our 2007 founding, we have executed over $3.6 billion in real estate transactions and our principals have invested over $90 million alongside our investors. We rely on our market experience and employ MultilyticsSM, our proprietary suite of machine-learning models that forecast rent growth, to help us choose the best properties and markets for investment.
We are accepting new investors for our open QOZ Fund III and IncomePlus Fund, which seek to provide tax efficiency, enhance portfolio yield, maximize growth and minimize portfolio volatility. Additionally, we have recently released Origin Exchange, our newest offering aimed to simplify the 1031 exchange process. Our affiliate firm, Origin Credit Advisers, also offers the Strategic Credit Fund, a private credit Fund open to qualified purchasers (an individual or a family-owned business that owns $5 million or more in investments, excluding their primary residence or any property used for business). The Strategic Credit Fund’s objective is to provide a consistent stream of risk-adjusted income with capital protection.
Type of Real Estate | Multi-family Real Estate Investment Funds
1031 Exchange
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Minimum Investment |
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CrowdStreet is a premium online marketplace for commercial real estate investments where investors can directly access institutional-quality commercial real estate.
They allow smaller investors to invest directly in real estate projects from the nation’s top sponsors and developers. As an investor, you can access commercial real estate projects, a privately-managed commercial real estate portfolio, and custom real estate portfolios, the CrowdStreet REIT.
CrowdStreet REIT provides investors easy access to a diversified portfolio of growth-oriented private commercial real estate projects from multiple sponsors through a single fund managed by CrowdStreet Advisors. This is a portfolio of 20-25 private commercial real estate projects selected by CrowdStreet.
You can invest with lower minimums ($25K) and expenses than traditional private funds. The REIT election also allows simple 1099 tax reporting instead of multiple K1s.
For commercial real estate developers and operators, CrowdStreet Connect provides a platform to manage investors and investments and even raise capital to grow their businesses.
CrowdStreet maximizes opportunities for investors by diversifying outside of the traditional avenues of the stock market and fundamentally transforming real estate investing through technology.
They are creating a community where individual investors and CRE firms work together to maximize wealth through commercial real estate.
Type of Real Estate |
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Minimum Investment | $25,000 but varies depending on each project |
Type of Real Estate |
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Minimum Investment | $5,000 |
37th Parallel Properties makes investing in multi-family real estate easier than ever and allows you to diversify your investment portfolio with an asset class that is usually not available to most investors. Since their inception in 2008, they’ve completed over $1 billion in multi-family transactions while maintaining a 100% profitable investor track record.
They offer single asset investments into commercial multi-family real estate as well as a recently-introduced Fund II. Fund II is a combined asset class with multiple multi-family commercial real estate investments.
This $40M-$80M fund has a $100,000 minimum. Fund II is focused on acquiring and improving 200-plus unit Class A & B apartment complexes in 13 markets across Texas, North Carolina, South Carolina, Florida, and Georgia. Capital will be called as needed to acquire properties with the goal of having all investors’ capital called within 12 months. Their goal is to begin liquidating or recapitalizing fund assets in seven to eight years from inception.
Fund II has two share classes – Class A (Current Income) and Class B (Total Return). Class A shares have a 9% annual preferred return and first access to cash flows from operations. However, they have a capped upside. Class B Shares have a 7% annual preferred return and second access to cash flows from operations along with an initial 80/20 split.
PoF readers get a $500 fee discount when they join using our link. If you prefer individually choosing which properties you invest in, 37th Parallel still does individual syndications at a $50,000 to $100,000 minimum investment.
Type of Real Estate |
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Minimum Investment | $100,000 in Fund II & Single Assets Investment Varies between $50,000-$100,000 |
Investor Application | 37th-Parallel-Application |
Type of Real Estate | Multi-family Commercial Real Estate |
Minimum Investment | $50,000 |
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- Republic Real Estate: A New Way to Earn Rental Income from Condominium Ownership
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- My Interview at EquityMultiple