I remember the moment it clicked: passive real estate investing isn’t about becoming a landlord. It’s about putting money to work for you without the daily grind. You earn income from rent but you don’t handle leases, tenants, maintenance, or emergency calls.
Instead, your capital supports a professionally managed property, giving you peace of mind that experienced hands are taking care of the details.
There are several different options but they all share the same goal: letting busy surgeons like us build passive income without sacrificing time in the OR or with family.
For surgeons, the best path meets you where you are, builds wealth steadily, and adds freedom. It’s a path you can pursue one thoughtful investment at a time.
What Is Passive Real Estate Investing?
Passive real estate investing is owning properties without having to manage them yourself. You generate income from rent, but don’t have the responsibilities of being a landlord.
Essentially, you contribute capital but remain a “silent partner” while another individual (or more likely, a company) handles the tenant screening, maintenance, and repairs.
Types of Passive Real Estate Investing
There are several ways to earn passive income from real estate, but they’re not all equal. Let’s take a look at the most common options:
- Real estate investment funds (REITs): When you invest in a REIT, you don’t own any property—you actually buy shares from a company that owns property. REITs are good because your income is pretty diversified, but you have less control over the choice of properties. They’re also more volatile, meaning their value can change quickly.
- Crowdfunding: Crowdfunding for real estate investment is relatively new, but it’s become popular because you don’t need much capital to invest. Sometimes it’s as little as $500. However, they tend to come with high fees and the crowdfunding platform itself is a potential risk; it could fail or have technical issues.
- Private equity real estate: You can invest in real estate through private equity firms or funds, rather than directly through individual purchases. These firms raise capital from investors, then use that capital to acquire, develop, manage, and ultimately sell properties. They’re less liquid compared to public real estate investments, meaning it’s harder to sell them quickly. However, private equity real estate has the potential for higher returns.
- Real estate investment partnership: Multiple investors pool their money to invest in a larger real estate project or property that they might not be able to afford or manage individually. It allows investors to participate in larger, safer investments and benefit from tax advantages. It’s more passive, since the sponsor takes care of day-to-day management, plus it allows for more diversification.
For busy surgeons and physicians, the best real estate investment strategy is the methodical one that builds wealth and supports your lifestyle. Some real estate investments can spark cash flow sooner, while others rely on long-term growth.
Why Passive Real Estate Investing Is Perfect for Surgeons & Physicians
If you’re a surgeon relying on a single source of income, you could end up burning out quickly. I saw it happen with several friends and colleagues, and I turned to real estate investing to avoid the same thing happening to me.
As a trained physician, you already have the skills and values you need to be a smart investor:
- Discipline and patience to wait out a long-term, sustainable investment strategy
- Precision to choose the exact investment for your needs
- Risk management to go after the best result with lowest risk possible
For many surgeons, there comes a moment when the initial passion for medicine feels buried under long hours, administrative burden and burnout. Passive investing in real estate can be a turning point, financially and personally.
You can reclaim control over your most valuable resources: time, attention, and focus. By generating income that doesn’t require your daily involvement, you create space to reconnect with what inspired you to practice medicine in the first place.
That’s what leads to purpose alignment and feeling more satisfied with your career as a surgeon.
Tips for Passive Real Estate Investing if You’ve Never Done It
If you’re just getting started in passive real estate investments, or you’re curious and want to explore, these tips can help you understand the process better.
1. Clarify your “why”
The new bill raises the cap on state and local tax (SALT) deductions from $10,000 to $40,000, phasing out at a $500,000 income threshold.
For those living in high-tax states, like California, New York, or New Jersey, this change allows for more after-tax income. When combined with pass-through entity strategies that shift state tax burden to the entity level, this can unlock even more federal tax deductions.
2. Assess financial readiness
Take stock of your current financial situation. You’re probably already saving big chunks of your income, but how are you allocating those funds? You should try to set aside 20% of your income for investments. Then, set aside a portion of that 20% to passive real estate.
If you need help figuring out how to allocate your assets, take a look at this checklist.
My first few years investing were tough. I didn’t diversify enough and put everything in the stock market. You need a balanced approach that provides both cash flow and long-term appreciation. Real estate investing provides that balance.
3. Choose your portfolio
Decide which investment vehicles you want to use: REITs, crowdfunding, private equity, etc. Understand the differences and what you gain and risk with each type.
At Apta, a model that works well for many of our surgeons is professionally managed real estate partnerships. You co-invest with us and become a fractional owner in a large property, without handling the day-to-day management.
4. Vet the sponsor
Do your homework on the sponsor (the entity that’s facilitating the investment). Check out their track record, understand their fees. Find out if they have a strict, systematic system for underwriting investments.
You can learn more about vetting sponsors in our Critical First Steps resource for real estate investing.
At Apta, you can trust that all of our offerings are stress-tested. We’re led by surgeons and medical professionals, so we understand your situation. We invest our own capital, and we’ve never lost investor money.
5. Review the returns and risks
When you’re checking out potential real estate investments, you should know this financial jargon:
- Cash-on-cash: Calculates the cash income earned on the cash invested in a property, expressed as a percentage. A good cash-on-cash could be anywhere from 8% to 22% depending on the market and property type.
- Equity multiple: How much you earned on the capital invested. An equity multiple of 1 means you got back exactly what you invested. Less than 1 is a negative return and more than 1 means you earned money.
- Internal rate of return (IRR): Measures an investment’s compound annual growth rate. It helps you understand the investment’s potential and compare it to other potential investments.
Apta offers resources to help you identify real estate investments that align with your financial goals.
6. Scale responsibly
As you look at real estate assets to invest in, choose different types in different markets. Diversification and balance are important here too.
Properties that our surgeons and physicians have seen success with are multifamily apartments, medical offices, and retail centers. Our properties span 11 major metropolitan areas and with our strategic approach, we’re able to maintain a 95% occupancy rate.
Common Real Estate Investment Myths: Busted
When I talk to surgeons who don’t even want to consider investing in real estate, I get a lot of the same objections. They think there’s too much risk, it’s just about making money, or it will take up a lot of time.
Most of these reasons are complete myths.
- “It’s too risky.” → Real estate can be risky if you aren’t following the right model or don’t have specialized knowledge. That’s why it’s critical to follow a process, do your research, and work with a good underwriter. The Apta approach to investing is risk-cautious, helping you build sustainable wealth while minimizing volatility.
- “I don’t have time to manage a property.” → If you use real estate partnership, you don’t have to do anything at all for the property. Our investments make you a fractional owner, and we partner with trusted managers who help ensure the value of the property.
- “It’s just about making more money.” → Real estate investment is not just about money; it’s about establishing freedom for yourself. Passive income lets you design your life how you want and avoid burnout in your medical practice.
If you’ve been putting off investing for any of these reasons, I highly encourage you to reconsider. Start by checking out some of the free resources on our website so you can learn more about how it works.
Apta Investment Group Is Designed for Surgeons
When I founded Apta, I chose a name steeped in meaning: Apta, the Sanskrit word for “trust.” But that word isn’t just symbolic, it’s how we operate day in and day out. We co-invest alongside you, often as the largest investor in each deal. That alignment ensures my interests are tied to yours, and that we only bring forward investments I truly believe in.
I vividly remember feeling paralyzed by financial anxiety despite earning well. That’s why mentorship is central to our approach. We guide you through every step so you can understand the process and make investment decisions with clarity and confidence.
Apta is built for surgeons, by a surgeon. We bring trust, alignment, expertise, and mentorship into every partnership. Together, we’re reclaiming time, purpose, and a fuller life, both inside and outside the OR.
If you’re ready to see how passive real estate investing can support your goals, register to join our network or schedule a call.
*Apta Investment Group does not provide financial, legal, or tax advice. We recommend consulting with a qualified financial advisor before making any investment decisions.