#285 5 Real Estate Trends Physicians Need to Know Right Now ft. Peter Kim, MD

The Real Estate Market’s Uncertainty

Peter kicks off the podcast by acknowledging that the real estate market feels uncertain right now. With interest rates rising and credit becoming tighter, many investors may feel stuck or confused.

He encourages listeners to change their perspective and view the current situation as an opportunity. Peter explains that while things might feel shaky, having the right mindset can open up new opportunities. His goal is to help you move forward with confidence despite the uncertainty.

Trend #1: Interest Rates and Opportunities

Interest rates are still high, making it harder to finance deals, but Peter explains that the market is starting to stabilize. Although interest rates won’t drop as low as during the pandemic, he expects gradual decreases over the next few years.

Peter advises that this is still a great time to negotiate better deals. He also suggests focusing on cash flow (the steady income you get from properties) instead of hoping for big property value increases. There are creative financing options available, like seller financing and assuming loans, which can help make deals work despite the higher rates.

Trend #2: Slowing Deal Flow & Brewing Distress

Peter talks about how there are fewer deals in the market right now compared to a few years ago. Sellers are reluctant to sell, and buyers are hesitant because of the high interest rates.

However, beneath the surface, there’s growing distress, as some deals made during the time of low rates are now struggling. Peter sees this as an opportunity for investors who are well-prepared. He suggests staying alert and focused, as distress could create chances for smart investors to step in and make good deals.

Trend #3: Passive Investment Distress & Opportunities

Peter talks about how passive investors are facing challenges. Many deals from 2021 and 2022, which were made under favorable conditions, are now struggling due to rising expenses and difficulties refinancing. He shares that this situation is even worse than the 2008 crash for some investors.

However, Peter sees a silver lining. If you’re a passive investor, now is the time to reevaluate your sponsors (the people managing your investments). He suggests checking if they are being transparent and proactive in handling the challenges, as this could present opportunities to invest with reliable sponsors in the future.

Additionally, Peter mentions the Passive Real Estate Academy, a resource designed to help physicians gain confidence in passive real estate investments. He encourages listeners to use this platform to better educate themselves and make smarter investment decisions.

Trend #4: The Fundamentals Always Win

Peter closes the episode by sharing a live demonstration he gave at the conference involving rocks, pebbles, and sand. It illustrated how people often fill their schedules with minor tasks first, leaving little time for what truly matters. The “sand” represents busywork such as charting and meetings. The “pebbles” are career goals and hobbies. The “big rocks” are family, health, purpose, and service. When we start with sand, the important things never fit. His challenge to listeners is to reverse that order and schedule the big rocks first.

He offers a simple but powerful exercise for the next 90 days: choose one major priority, schedule it in your calendar, and protect that time. By doing this, you take control of your energy and focus. Peter explains that living by default means letting others dictate your time, while living by design means choosing what truly matters and building your life around it.

Finally, he reflects on the sense of connection he witnessed at PIMDCON. Unlike typical medical conferences where attendees rush to leave, people at this event stayed, talked, and formed real friendships. He believes that proximity is power and that surrounding yourself with action-takers and positive thinkers can transform your life.

Peter encourages listeners to evaluate who they spend the most time with and to intentionally seek communities that foster growth. He ends by asking reflective questions about action, leverage, and priorities, reminding everyone that the path to an intentional life begins with choice and consistent action.

Trend #5: Physicians Are Investing Smarter

Peter wraps up with the final trend, noting that physician investors are becoming much smarter in how they approach real estate. They are no longer investing on impulse or based on someone else’s recommendation, but instead, they’re learning how to evaluate deals thoroughly.

Physicians are joining courses and masterminds to increase their knowledge and confidence, asking the hard questions before committing their money. Peter also highlights how important it is to diversify investments across different asset classes to reduce risk. By staying educated and focused, physician investors can weather the ups and downs of the market and continue to build wealth.