I was recently a guest on the Dentist Freedom Blueprint podcast with Dr. David Phelps. (Note: You’ll notice David and I referencing “Guardian Fund” in the podcast. Due to a trademark issue, we are no longer able to use the name in public materials. The fund remains the same but we now refer to it as our Buy and Hold Fund.)
After a successful career as a dentist, David earned the reputation of being an expert in real estate investing, which is why he invited me on his show. David is the creator of Freedom Founders, a community of medical professionals who advocate for wealth building outside of Wall Street.
When David’s 12-year-old daughter, Jenna, underwent life-threatening liver transplant surgery, he made the difficult decision to leave the world of dentistry. David knew he had been given a second chance to be the best parent he could be, which required finding another livelihood that would allow him to spend more time with his family.
He sought out another path toward success and found that real estate investing checked all the boxes. Years later, Jenna is a healthy adult and David has found a passion for helping other dentists and orthodontists grow their wealth through alternative investments.
So that’s where Hughes Private Capital comes in. During our conversation, David asks me to explain how a 1031 Exchange with the buy and hold fund is a “one-of-a-kind solution for investors who don’t want to deal with the hassles of being a landlord.” Normally, David would recommend that his audience hire a property manager to handle their rentals, but, as he noted, that still leaves them with the work of managing their property managers. In the case of our fund, David elaborates, “I mean it’s as passive as you can get. We’re not having to sit with you at meetings and talk about a property on Elm Street that, you know, just had a sewer blowout or something.”
You heard it here first, folks! The buy and hold fund is as passive as you can get while still having real estate in your investment portfolio.
We also discuss how being an investor in our fund has some huge benefits over being an individual investor of the same types of homes in the Midwest. “I would not have [dentists] individually buy those properties,” David says during our talk. “Why? Well, because number one, none of us — myself included — has built a machine that has efficiencies built into it.”
Here’s what he means by that: the buy and hold fund is a machine that was purposefully created to be more efficient than a lone investor could ever be, resulting in increased diversification, more safety, and less work for the investor. In the episode, I share some of the “secret sauce” that makes the buy and hold fund so efficient, which includes economies of scale, boots on the ground across the Midwest, and a sophisticated system with informative statistics that most people just wouldn’t want to spend the time to build.
David recognized the benefits that the fund has to offer busy professionals and I had a fun time being on his show.
Here’s an overview of some of the topics we discuss in the episode:
- How busy professionals can diversify their investment portfolio with real estate, but not have to spend a second of their time being a landlord or even managing a property manager
- Why the legal requirements surrounding a 1031 Exchange can make it a hard opportunity to take advantage of, and how a 1031 Exchange with the buy and hold fund eliminates these issues
- How “accidental landlords” can rid themselves of landlord headaches and avoid a big tax bill with a 1031 Exchange
- How rent ratios can be 3x as much in the Midwest and why that matters for real estate investors
- How the buy and hold fund model is built on cash flow, not appreciation
- How investors are doubling their net cash flow after freeing and putting to work the equity tied up in their current investment property
- How the buy and hold fund eliminates the issue every real estate investor deals with: trying to time the market
New to podcasts? We’ve included two tutorials below — one for Android devices and one for Apple devices.
Apple Podcast Instructions
Step 1: Open the Podcasts app. It is a purple icon and is the default podcast player for Apple devices.
Step 2: In the search bar at the top, type in The Dentist Freedom Blueprint. This will pull up that podcast.
Step 3: Click the + sign to the right of the episode. This will download the episode to your device. Depending on your settings, you can also stream the episode, which means you can listen to it without having to download it.
Android Podcast Instructions
Step 1: In the Google Play app store, download Google Podcasts.
Step 2: Once the app installs, you’ll be taken directly to the Google Podcasts homepage. Use the top search bar to search for The Dentist Freedom Blueprint.
Step 3: To listen to the episode, click the play button. (If you’re reading this when the episode is no longer new, you may have to scroll down a bit to see Episode #194.)