What Makes Joining Syndications So Popular for Dentist Retirement Planning?

Although, retiring from the job is a normal episode for commoners working for various establishments - professionals including healthcare practitioners, lawyers, management consultants don’t have any definite time for getting retirement from their fields. Apparently, for them, the time of retiring is determined on the basis of their popularity in the industry, physical wellbeing, and various other factors that come down the line that let them consider availing a retirement from the field. Keeping it seriously in mind, dentist retirement planning should be a central consideration once you reach your 40’s or even earlier.  

Once we have seen investors prefer investing in stocks or bonds, while often they ignored the real estate sector. However, with the shifting dynamics of the times, investment in properties has been proved to be among the best ways to build wealth. Being beyond an inflation-hedged asset group, real estate offers lots of appealing advantages in terms of risk factors, performance, tax advantages, and others.

However, when it comes to real estate investment - time, knowledge about the marketplace, and having thorough research about the properties before investing in them is the most vital requirements for investors. And, that becomes a major concerning factor for professionals involved in dental care services who remain busy almost throughout the year with their practices, studies, further researches, attending medical conferences, etc. Not surprisingly, the majority of them don’t have any clear knowledge about the erratic real estate sector.

So, being a prosperous dentist, if you’re looking for a way out to invest in properties as a passive investor, your answer is real estate syndication designed for dentist retirement planning. Sounds interesting! Great! Continue reading the article to know about the increasingly popular model and its advantages.       

What is Real Estate Syndication?

Real estate syndication is a joint venture of a cluster of investors to order to pool their funds together for investing in large-scale real estate projects, which they just can’t pay for or manage on themselves. Basically, it’s a real estate model where an experienced syndicator takes the full responsibility to identify rich investment opportunities, pool the investors, and let investors know about different opportunities open for investors cum shareholders, hire a property manager and manage the property.

On the other hand, the investors provide funding for the project, attend time to time conferences organized by the syndicator to convey the performance status of different property projects, and continue to earn a certain percentage of its profits according to the predetermined and mutually agreed upon rate. As a shareholder, joining property syndication offers you a win-win platform for both syndicate and investors.

Advantages of Joining Syndication

Access to Lucrative Investment Opportunities

Rather than putting your money in small-scale properties on your own and taking the unwanted risk of your ignorance about the market, challenges to a time limit to administer them - investing in more profitable large-scale property partnership projects through syndication chiefly for dentist retirement planning can be more rewarding for wealth buildup. It offers you access to money-spinning investment scopes and enables you to earn recurrently without putting in your effort or time.  

Risk Reduction

A longstanding property investment strategy is - to avoid putting all eggs in any particular container. An ideal portfolio is one that contains investments in a range of properties without having a co-relation because in case, anyone performs poorly, it will not affect the others so with minimal investment in multiple projects via syndication, it helps you keep your profit sharing ratio relatively same. Secondly, the property market virtually has no link to the public market conditions and remains unaffected by any social, political, or economic crisis. Therefore, investment in syndication enables you to build a richly diversified portfolio that maximizes your ROI while minimizing risks.

Passive Investment with Tax Advantage

Investment in syndication has gained high popularity for dentist retirement planning because as you invest through a reputable syndicate, all its operations from identifying opportunities, negotiating and acquisition, gathering funds, and managing the property are handled by the syndicator while you can peacefully devote your full time in practice. Being not actively involved in its activities, you earn passive income that gets eligibility to tax advantages by the IRS rule.