Healing to Hustle: A Physician’s Roadmap to Real Estate Wealth

Medicine, a Demanding Devotion

When students embark on the journey to becoming doctors, they solemnly swear an oath—an oath not only to heal the sick and respect the privacy of others but also to contribute positively to society. However, the practice of medicine demands unwavering devotion, often leading physicians into a state where they become enslaved by their profession. As their success in the medical field grows, their ability to savor life beyond the demands of work diminishes.

It is here that the world of real estate emerges as a potent remedy for this professional affliction. In this article, we traverse the physician’s trajectory from the noble path of healing to the dynamic realm of real estate entrepreneurship. Our goal is to sketch out a comprehensive roadmap for doctors, guiding them through the transition from active to passive investing, fostering a track record of successful capital raising, and ultimately paving the way to financial freedom through the avenue of multifamily real estate. 

The Origin of Viking Capital

Vikram Raya, the CEO, and co-founder of Viking Capital, once walked in the shoes of a full-time Cardiologist. While Ravi Gupta, his partner, COO, and co-founder of Viking Capital spent his career as a renowned hospitalist. 

Their journey began with a desire to build generational wealth and create a legacy that would safeguard their families’ futures. Taking a leap of faith, they each ventured into the realm of single-family real estate investments. What started as a single venture soon became a portfolio, and both Vikram and Ravi found success buying and renting.

The revelation that they could thrive as both a physician and an investor opened new doors. The income from real estate investments became a testament to the idea that they weren’t confined to a singular professional path. The demands of their medical careers paired with managing their rental real estate portfolios relentlessly took its toll.

Transition into Multifamily

Armed with the financial cushion from their single-family real estate ventures, Vikram and Ravi took another leap, this time into the realm of Multifamily investing. Collaborating with other sponsors in syndication deals, they began to experience the true essence of passive income—a means to not only accumulate wealth but, more importantly, to buy back their time.

The transition wasn’t just about securing an exit strategy for early retirement; it was a quest to reclaim the moments they had been missing. Both men found a way to balance their professional success and personal fulfillment. Vikram and Ravi continued their Multifamily success by raising capital for other sponsor’s deals. By taking on more exposure they were given a seat at the table and became Co-GPs. 

Just as before this proved to be another step in the path toward building a successful future. With more confidence than ever, they did their first deal as the primary sponsor. One deal quickly became two and Viking Capital was born. Now, closing their 25th Multifamily deal, this team of two was recognized in 2022, as one of the fastest-growing real estate companies in the nation, according to Inc 5000. 

Navigating Real Estate Investment

Step 1: Education

Embarking on the journey of real estate investing may seem intimidating. It requires stepping out of your comfort zone and into a field you may know very little about. As the great Aristotle said; “Education is an ornament in prosperity and a refuge in adversity.” The first step in your path to creating wealth through real estate investing is by educating yourself. Learning from others who have accomplished what you are setting out to do is key. Immerse yourself in podcasts, books, blogs, and any form of education you can. Understanding the real estate market, the economic outlook of real estate, and general real estate jargon will give you a strong foundation for you to begin. 

Step 2: Purchasing Your First Property

Once you feel like you have a strong foundation of the fundamentals of real estate it’s time to translate your knowledge into practical experience. Purchasing your first property should be exciting and scary. Choosing the location is imperative as not all markets offer equal potential for investment success.  Factors that contribute to a location being deemed “good”:

1. Population Growth: A growing population often indicates a thriving community and increased demand for housing.
2. Being in the Path of Progress: Identifying areas on the rise or undergoing development can be a strategic move for long-term investment gains.
3. Employment Growth and Low Unemployment Rate: A strong job market is conducive to a stable rental environment and property value appreciation.
4. Median Household Income Levels: Higher income levels in the area can correlate with better-paying tenants and increased property value.
5. Percentage of Renter-Occupied Households Increasing: A rising demand for rentals can be a positive indicator for investment opportunities.
6. Vacancy Rates and Median Rent Trends: Low vacancy rates and an upward trend in median rent suggest a healthy rental market.
7. Growth of Housing Prices: Increasing property values over time can contribute to long-term investment success.
8. Neighborhood Rating: Assessing the overall quality and desirability of the neighborhood adds to the property’s appeal.
9. School Rankings: Proximity to quality schools often attracts families, impacting property demand.
10. Crime Rate: A low crime rate contributes to the overall safety and attractiveness of a location.

Having identified a location that aligns with these factors, it’s time to find a property that suits your preferred price point, size, and rental strategy. Your rental approach may involve long-term leasing to a single tenant or family or utilizing the space for short-term rentals, such as Airbnb or Vrbo. Tailoring your strategy to the unique attributes of the location ensures an opportunity for greater success. 

Step 3: Portfolio Expansion

The third step in crafting a pathway to financial freedom involves persistent and strategic acquisition. Sustaining the momentum of wealth accumulation through real estate investments yields a more accelerated income growth within a shorter timeframe. This approach serves as a cornerstone in safeguarding your current lifestyle, tailored to align with the means of your medical salary. 

Furthermore, this phase signifies the establishment of your financial track record—an indispensable milestone. It not only shields your existing lifestyle but also lays the foundation for constructing a robust portfolio. This portfolio becomes the bedrock for advancing towards more ambitious goals, particularly in the realm of multifamily investments. Embracing this strategic continuation of purchases positions you favorably for greater financial resilience and paves the way for substantial growth in your wealth-building journey.

Step 4: Passive Investing

Following the path Vikram and Ravi, the next logical progression involves using the excess income generated from real estate investments into Multifamily passive investments as a Limited Partner (LP). This transition represents a pivotal shift from an active role to a passive one, marking a crucial juncture in your financial journey. 

While giving up control may be scary, this strategic move unlocks the ultimate reward of time freedom. The benefits of earning your time back and creating additional income provide an initial glimpse into the slew of possibilities Multifamily real estate can offer. 

4.1 Finding a Multifamily Sponsor:

Identifying a trustworthy sponsor is crucial. The goal is to find an organization which you can build a long-lasting relationship to invest with. 

Green Flags: Picking a Trustworthy Sponsor

1. Solid Track Record: Historic performance of the portfolio (how many full cycle exits)
2. Open Lines of Communication: Transparency in performance, education, and answering questions speaks volumes. Team accessibility, reporting, online portals, and customer support are invaluable.
3. Referrals: Other LPs who are return investors help to build trust in the company as well as understand the community.
4. GP Invests in the Deals: If the GP is risking their own money alongside the LP’s they are more likely to be conservative when making risk-adverse decisions.
5. Strategic Team– Deals are not done by one person. It is valuable to meet the team and research their credentials. This allows you to begin to trust their knowledge when you first choose to work with a sponsor.

Finding the sponsor that you trust comes down to the amount of due diligence you perform. To learn more tips on how to find the right sponsor and Multifamily deal read our blog: Multifamily Investment Buleprint.

4.2 Streamlined Investment Process

Embarking on a Real Estate Syndication: 5 Essential Steps

1. Craft Your Investment Goals- Begin by defining clear and achievable investment goals. Whether it’s wealth accumulation, passive income, or portfolio diversification, having well-defined objectives will guide your decision-making throughout the investment process.
2. Assess Your Risk Tolerance- Understanding your risk tolerance is fundamental. Real estate investments, like any other, come with inherent risks. Evaluate your comfort level with potential fluctuations and uncertainties, aligning your investment strategy with your risk appetite.
3. Identify a Suitable Investment Opportunity- With your goals and risk tolerance in mind, seek out real estate syndication opportunities that align with your investment criteria. Conduct thorough due diligence on potential projects, considering factors such as location, property type, and the track record of the syndication team.
4. Become an Accredited Investor- Ensure you meet the criteria to be recognized as an accredited investor. This typically involves meeting certain income or net worth thresholds. Accredited investor status opens up access to a broader range of investment opportunities, including those in real estate syndications.
5. Secure Your Spot and Allocate Funds- Once you’ve identified a promising opportunity and achieved accredited investor status, take the next step by reserving your spot in the syndication. Allocate the necessary funds according to your investment goals, securing your position in the project.

Step 5: Raising Capital 

Vikram and Ravi recognized the substantial potential upside in the role of co-General Partners (co-GPs). Seizing the responsibility of spearheading capital-raising efforts for syndicators with whom they had fostered long-term relationships through prior investments. 

This strategic shift proved to be a savvy risk, as they successfully mobilized millions of dollars for these ventures. As they built a commendable track record in capital raising, it became evident that their aspirations were not bound by any constraints. The duo’s journey into the co-GP realm not only showcased their ability to leverage their network and expertise but also demonstrated their keen understanding of intelligent risk-taking, ultimately propelling them toward greater heights in the realm of syndicated deals.

5.1 Mastering the Path to Co-General Partnership

Embarking on the journey to become a Co-GP involves strategic steps and thoughtful considerations. Here’s a comprehensive outline to help you navigate this endeavor:

Selecting the Right Sponsor as Your Partner:

• Ensure the sponsor boasts a successful track record in the field.
• Evaluate the strength of their property and asset management capabilities.
• Prioritize sponsors with whom you have established relationships from previous successful investments.
• Align the deal timeline and goals with your own strategic objectives.

Demonstrating Commitment to the Sponsor:

• Determine the capital you realistically can bring to the table for their deals.
• Showcase your commitment to the partnership by offering tangible contributions and resources.

Educating Yourself on SEC Guidelines: 

• Equip yourself with a solid understanding of Securities and Exchange Commission (SEC) guidelines and rules applicable to Co-GPs.
• Stay informed about regulatory nuances to ensure compliance and mitigate potential risks.

Negotiating Co-GP Agreement Terms:

• Work collaboratively with the sponsor to define clear and fair terms for the Co-GP agreement.
• Establish mutual expectations regarding responsibilities, profit-sharing, and exit strategies.

By diligently following these steps, you position yourself for a successful transition into the role of a Co-General Partner. This guide is designed to empower you with the knowledge and insights needed to forge meaningful partnerships and thrive in the world of real estate investments.

Step 6: Becoming the Primary Sponsor

Seizing control of your destiny in Multifamily syndication culminates in a decisive move—emerging as the primary sponsor. In the footsteps of our visionaries Vik and Ravi, who harnessed their wealth of experience and real estate acumen, you too can find the confidence to chart your independent course. 

These trailblazers started with a modest Multifamily acquisition, orchestrating the necessary capital to seal the deal, and took the reins of managing the asset on their own.  This pivotal moment served as the launching pad for their ascent as real estate sponsors. Viking Capital has proudly collaborated with thousands of investors, overseeing a portfolio of 25 assets and successfully shepherding six properties through the entire disposition process. 

Redefine Your Success:

Physicians devote their lives to preserving the well-being of others, shouldering an intangible burden of stress as they dedicate their time to the welfare and health of strangers. In the pursuit of societal betterment, doctors generate intrinsic value, a currency paid in the precious commodity of time.

Real estate investment emerges as a conduit to honor the unwavering commitment of these healers. By providing a pathway to passive income, real estate offers doctors the freedom to transition towards other passions and commitments. This liberation extends beyond the daily grind, presenting a unique opportunity for doctors to transcend their demanding profession and begin living the life they’ve tirelessly safeguarded for countless others. It is a tribute to their dedication. An invitation to reclaim moments and savor their work while continuing to make a meaningful impact on the world.