If you’re a doctor who’s saved up $100,000 and you’re ready to make your first real estate investment, first of all, congratulations. That’s a huge milestone, and you should be proud of it.
Now comes the big question I hear all the time:
Should I put all $100,000 into one real estate deal, or should I spread it out across multiple deals?
It’s a smart question. Real estate investing can be an incredible way for physicians to create passive income, hedge against inflation, and ultimately buy back time. But when you’re just starting out, it’s easy to feel unsure about how to allocate your capital wisely.
I’ll be honest with you, I’m not here to tell you what you should or shouldn’t do. Everyone’s financial goals, risk tolerance, and life situations are different. But I will share exactly what I did when I got started with real estate investing as a physician. And if I were starting all over again today with $100,000 ready to invest, I’d take the same approach.
I’d split that $100K into four separate $25K investments.
Not because that’s the “best” way to do it for everyone, but because for new physician investors, especially those just dipping their toes into passive real estate investing, starting small and diversified can be one of the smartest and most sustainable ways to build confidence and long-term success.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial, legal, or investment advice. Any investment involves risk, and you should consult your financial advisor, attorney, or CPA before making any investment decisions. Past performance is not indicative of future results. The author and associated entities disclaim any liability for loss incurred as a result of the use of this material or its content.
Real Estate Isn’t Just About Returns, It’s About Relationships
When I started investing in real estate, I was focused on learning. Sure, returns mattered. But I knew that the most important factor in any deal was the sponsor, the person or team running the investment.
In real estate syndications, you’re not the one managing the property. You’re trusting a sponsor to acquire, renovate, lease up, manage, and eventually sell or refinance the property. Your role is to vet the deal, write the check, and collect distributions.
So, here’s a question: if you were going to hand over $100,000 to someone, wouldn’t you want to know how they operate first?
That’s exactly why I prefer spreading out that first $100K. When you invest in four different real estate syndications, ideally with different sponsors, in different markets, and potentially across different property types, you get to observe and find out how they truly operate.
You see how each sponsor communicates, how they handle bumps in the road, and whether they actually do what they said they’d do in the pitch deck.
Some sponsors are reliable. Others aren’t. You don’t know who’s who until you’re in the deal. That’s why experience and relationship-building are so crucial in this space.
Diversification Protects Your Capital and Builds Your Confidence
There’s no such thing as a risk-free investment, especially in real estate. Even strong deals can underperform due to market shifts, unexpected expenses, or delays in the business plan. That’s just the nature of investing.
But when you diversify by investing in multiple deals instead of putting everything into one, you spread that risk out. If one deal under delivers, the others might perform well enough to balance things out. It’s somewhat like building your own fund.
And honestly, when you’re starting out, it’s not just about protecting your capital, it’s about protecting your peace of mind. You want to feel confident that you’re learning, growing, and building a foundation for long-term success, not just crossing your fingers and hoping one big deal pans out.
You Learn More by Doing Multiple Deals
One of the best things I did early on in my real estate investing journey was compare deals side by side. I’d invest in a deal with one sponsor, and then another with a different team. Over time, I could see who communicated well, who stuck to their timelines, and who delivered distributions on time.
By investing across multiple syndications, I also learned about different markets. One deal might be in Dallas, another in Orlando, and another in Phoenix. I started to understand how local market dynamics affected property performance. This kind of pattern recognition only comes with exposure.
You start to build what I call “investor intuition” and that becomes incredibly valuable when you’re deciding whether to reinvest with a sponsor, evaluate a new opportunity, or scale up your investment size.
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What I’d Do with $100,000 Today as a First-Time Passive Investor
Let’s say I’m a full-time physician who’s saved up $100K and is brand new to real estate investing. Here’s exactly how I’d think about allocating that capital:
- $25K into a solid multifamily deal with a sponsor who comes recommended by a trusted network or community.
- $25K into a deal in a different market, maybe a secondary or tertiary city with strong population and job growth. This helps me learn how different regions behave.
- $25K into a real estate fund or a different asset type, like self-storage, pref equity or assisted living, just to gain exposure and see how the reporting, returns, and business model differ.
- $25K held in reserve for the next great opportunity that shows up in a month or two. You don’t need to deploy all your capital at once. Sometimes being patient is the best move.
That kind of allocation gives you diversification, exposure, learning opportunities, and flexibility. All of which are incredibly valuable early on.
Why I Don’t Recommend Going All In on One Deal
Now, could someone argue that going all in on one deal might give you higher returns if that deal performs well? Sure. But I think when you’re a physician with a full-time job, limited time, and no background in real estate investing, going all in on your first deal is kind of like betting your entire residency salary on a stock you just read about online.
That’s not smart. That’s gambling.
The goal isn’t to retire off your first real estate investment. The goal is to start building a sustainable strategy that frees up your time, reduces your reliance on clinical income, and gives you options whether that’s practicing part-time, taking a sabbatical, or just spending more time with your family.
That freedom doesn’t come from swinging for the fences. It comes from stacking smart, intentional decisions over time.
What Happens After That First Year?
Once you’ve completed your first year as a real estate investor, after you’ve received updates, distributions, and maybe even experienced a full cycle, you’ll have so much more confidence.
By then, you’ll probably know which sponsors you’d invest with again. You’ll know which markets you like. You’ll feel more comfortable asking questions and reviewing deals. And at that point, if you decide to invest $50K or $100K in a single deal, you’ll be doing it from a position of knowledge, not just gut instinct.
That’s when real estate becomes a powerful tool in your financial plan. And it all starts with those first few carefully chosen deals.
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Final Thoughts
So, if you’re a doctor with $100,000 ready to invest, and you’re asking yourself how to get started with real estate, this is what I’d do.
I’d split it. I’d stay curious. I’d use those first few investments to learn the game, get to know the players, and build a solid foundation. Real estate is a long game, and your success will come from relationships, experience, and consistency not from trying to pick a unicorn deal right out of the gate.
And remember, you don’t have to do this alone.
If you want to invest confidently in passive real estate opportunities like syndications and funds, get personal coaching to help you build your portfolio, and surround yourself with a community of like-minded physicians doing the same, check out Passive Real Estate Academy.
You’ll get the support, tools, and guidance I wish I had when I started.
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Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.
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