Dr. Gurpreet Padda: Creating Wealth With Real Estate For Healthcare Professionals

OVERVIEW:

Healthcare professionals build wealth with real estate by starting as passive investors beside someone experienced, then going active, and by going big rather than buying single units. Dr. Padda recommends “pretty” wholesaling to physicians and uses option contracts researched against zoning and municipal plans.

Jason A. Duprat, Entrepreneur, Healthcare Practitioner, and Host of the Healthcare Entrepreneur Academy podcast speaks with Dr. Gurpreet Padda, MD, MBA and entrepreneur. Dr. Padda is an avid real estate investor. He shares the lessons he has learned as an early entrepreneur and also provides tips for healthcare professionals interested in creating wealth through real estate investment.

EPISODE HIGHLIGHTS:

Dr. Padda grew up in India during war and uncertainty. He moved to the US when he was 8 and started his first business at the age of 10 selling cards door-to-door. At 16, he had a team of 30-year-old men working for him. He states – I was an entrepreneur before I went into medicine. Dr. Padda made it through medical school by hustling, which he did through real estate auctions. During his first year of residency, Dr. Padda rehabbed an eight-unit building in Chicago. After his residency, he went into pediatric anesthesiology for heart, liver and lung transplants. His medical path also included addiction and interventional pain management.

Dr. Padda’s practice has 7 locations and he provides $1.5 million in free care. “Option” is when you purchase a sale contract with an option to buy. You have three months to decide if you want to buy and the price is held at the same level. If you decide not to buy, you’re usually only out $100. Dr. Padda uses option contracts, where he’s looking at zoning and municipal plans. He researches what’s being planned for development in the area. Option contracts are low risk and offer a high reward.

There are two types of wholesaling. “Ugly” includes houses below $80k requiring a lot of work. “Pretty” is when someone wants to sell and is having a hard time finding a buyer. This option provides great margins and it’s the one Dr. Padda recommends physicians to use. Dr. Padda also recommends going big with real estate vs buying single units. Cap rate is the net operating income divided by the price. Become a passive investor with somebody first, watch and learn from their mistakes, and then become an active investor. To get started in real estate investing, talk with people you know. Work referrals through friends and contacts. Don’t blindly trust people on the internet.

3 KEY POINTS:

The most valuable resource on earth is not money but time. You have to look at both active and passive methods of gaining wealth. Passive income is what people pay you while you’re sleeping. The biggest impediments to becoming wealthy are ourselves and our taxes. The number one impediment is our personal wealth operating system and how we think about money.

TWEETABLE QUOTES:

“Time is like a water hose and you’re watering a particular concept or project. The more water and fertilizer you apply to it, the better it grows.” – Dr. Gurpreet Padda

“I think entrepreneurship is the ability to ask questions of yourself, realizing you don’t know, and then trying to figure out the answer.” – Dr. Gurpreet Padda

“Leverage what you know.” – Dr. Gurpreet Padda

Frequently asked questions

What real estate investments does Dr. Padda recommend for doctors?

He recommends “pretty” wholesaling to physicians: working with an owner who wants to sell but is having a hard time finding a buyer, which he says offers great margins. He also tells doctors to go big rather than buy single units, and he uses option contracts backed by research into zoning and the city’s development plans.

How should a doctor start investing in real estate?

Start as a passive investor alongside someone experienced. Watch how they work, learn from their mistakes, and only then become an active investor. To find opportunities, talk with people you already know and work referrals through friends and contacts. Dr. Padda’s warning is plain: don’t blindly trust people on the internet.

What is an option contract in real estate?

An option is a purchase contract that lets you decide later whether to buy. You typically have three months to decide, and the price is held at the same level. If you decide not to buy, you are usually out only about $100. Dr. Padda pairs options with research into zoning and what the municipality plans to develop in the area.

What is the difference between ugly and pretty wholesaling?

“Ugly” wholesaling involves houses below $80,000 that need a lot of work. “Pretty” wholesaling involves a seller who wants to sell but is having a hard time finding a buyer. Dr. Padda says the pretty kind offers great margins, and it is the one he recommends physicians use.

What stops doctors from becoming wealthy?

Dr. Padda names two impediments: ourselves and our taxes. The biggest is your personal wealth operating system, meaning how you think about money. He also treats time, not money, as the most valuable resource on earth, which is why he looks at both active and passive ways of building wealth.

RESOURCES:

Red Pill Kapital: https://redpillkapital.com/

Dr. Gurpreet Padda’s LinkedIn: https://www.linkedin.com/in/gurpreet-padda

Michael Blank podcast: https://themichaelblank.com/podcasts/

Adam Adams podcast: https://podcasts.apple.com/us/podcast/creative-real-estate-podcast/id1285094279