Becoming an Investor

Dr. David Phelps is a long-range thinker and in dental school, he was already planning out his future as a practice owner. But Phelps chose to focus on the immediate future first. He didn’t know anything about real estate or investing, but he was determined to become an investor and convinced his father to go in on a rental property with him before the first semester started. In just three years, Phelps and his father netted $50,000 in capital gains, and that deal laid the framework for a lucrative venture that is Phelps’ primary source of income today.

The Financial Freedom of Real Estate Investing

Now, Phelps has over 35 properties and he’s seen every corner of the process since he managed all of them at one point. But building this portfolio and his dental practice was not an easy undertaking. It proved to have a major impact on his family and his own happiness because he couldn’t give them the time they deserve. Phelps’ daughter is a leukemia survivor and after witnessing that battle among other emotionally taxing life events, Phelps had to reevaluate where his time was being spent. He sold his practice and began focusing on his portfolio, which enabled him to devote more time to his family while generating passive income. Real estate investing gave Phelps the freedom he never had while running a practice.

Exit Strategy

Freedom Founders was not something that Phelps had a grandiose vision for, but it all fell into place as other peers in the dental industry began to ask about his transition. Everyone understood why he chose to sell his practice, but they did not understand how he was able to establish a profitable portfolio on the side that allowed him to make that transition seamlessly. He began to take people on as partners and co-investors so they could earn while they learn, but that process was not scalable or sustainable.

The Right Clients and the Right Advisor

Phelps changed that when he created Freedom Founders, and now he is able to continue helping people in a way that makes everyone money. Most of his clients are within 3-5 years of selling or exiting their practice, to which he brings a framework for turning their investable assets into tangible, hard assets in real estate. That demographic thrives with Phelps’ program because they are truly ready for it, and he maintains a narrow focus because he has nearly a 40-year track record of success with this type of client and he doesn’t want to try and be all things to all people. 

Everyone is a genius until the market turns, and so many of the other deals out there have very little margin. There are a lot of investment opportunities being sold to dentists but Phelps’ strategy is built directly from experience in the same shoes as the people he is providing services to. If you are established and planning for the future, real estate investment is a great way to prepare a smooth exit strategy from your practice. For more info on Freedom Founders and generating passive income through alternative investments, listen to the episode, Planning for a Post-Practice Future, with Dr. David Phelps.