How Doctors Use 100% Financing to Build Real Estate Wealth With No Money Down

Diego Kriger (00:00)

You’re investing at 30 years in the future.

You’re borrowing money from 30 years. You’re going to the future, grabbing money, coming back 30 years, then buying an asset that is literally for free.

Dylan Silver (01:46)

Hey folks, welcome back to the show. Today’s guest, Diego Kriger, is a single family investor in Tampa Bay, Florida, and also a practicing medical doctor. You can find him on Instagram, at KrigerMD. Diego, thanks for taking the time today.

Diego Kriger (01:59)

Thank you for having me.

Dylan Silver (02:01)

Now, when we talk about being in the medical space while also investing in real estate, I love these conversations because you’re able to really leverage your career and your education and everything that you’ve done to get to the point to where you’re in a very prestigious profession while also building wealth outside of that realm as well. Walk me through how you got started investing in real estate.

Diego Kriger (02:29)

Well, the main reason why I found out real estate, it was a way to grow for me is because ⁓ I was in California and I was like, I basically, grew up in poverty, right? In the South of Argentina. So I have always that eager desire to like learn. then growing up in Argentina, I was exposed to a massive

waves of inflation. So I always understood leverage, leverage, leverage.

In California, I met this guy, he was a realtor, and then he gave me the spark of knowledge that real estate is the best way to leverage, right? So I started studying loans, leveraging, financing, early, early, I would say when I was like 24. I found this product, it’s called Physicians Loans, 100 % finance, right? By the time that I graduate, right?

Dylan Silver (03:26)

Hmm.

Diego Kriger (03:34)

I started using physician’s loans. I found this broker. We became friends. And then I found some loopholes that I was able to get physician’s loans, 100 % finance. And then by the time that I graduated, I think I was making 450, right? And then I never ever used my cash. I always stay super liquid. I was investing in other assets.

but I never stopped investing in real estate. So I think for physicians, the physicians loan products is one of the best, best in the market. I mean, there’s nothing better than that. I mean, they give you a hundred percent financing for a primary home. Okay. You’re not going to buy a fourplex, right? But I think a hundred percent financing in the best

place in the world, you’re investing in United States, where legislation is the best, where financing is the best.

You’re investing at 30 years in the future. You’re borrowing money from 30 years. You’re going to the future, grabbing money, coming back 30 years, then buying an asset that is literally for free.

Dylan Silver (04:45)

strength.

I want to ask you, let’s get a little bit granular here on this physician’s loan. So this is a primary residence, this would be a homestead. Can you do this more than once or is this a one and done? Hey, you can only use it for one residence.

Diego Kriger (05:58)

So by law, it varies from lender to lender. There is at least 60 different lenders in the whole United States that they lend to physicians. It’s called professional loans in some of the lenders because whenever you call lender, you ask, hey, do you have physicians loan? They say no. But some of them, they don’t even know.

They have professional loans, which apply for dentists, physicians, some of the lawyers, if they have a good strong W-2, Most of the physicians, we have really strong W-2s. I mean, we made 300, 400, half a million, right? So our credit power, borrowing power, it’s unbelievable. I mean, why wouldn’t use it?

Dylan Silver (06:33)

positions.

Diego Kriger (06:57)

Right? Yes. Yes. You can. You can have multiple loans. And the way how do you do it is you buy a house medium size. You’re never going to buy a huge house with a poor two million dollars. You got to start small because the borrowing always they’re going to ask you to buy something bigger, something different, something a different zip code, because the underwriter is going to say

Dylan Silver (06:58)

That’s exactly right.

Diego Kriger (07:26)

Why are you buying a house, a smaller house now in the same zip code? What is the reason? Why? Right? So the goal is you’re going to start with a small house, right? 32, 31 ⁓ in a specific zip code. You’re going to get a hundred percent. You’re going to move to that house. can, I mean, their first house that I bought, I rented two rooms.

Dylan Silver (07:37)

Great.

Diego Kriger (07:56)

believe it or not, of residents, friends, people who work with me. Yeah. So, and at that time I didn’t even know what money was. I was just, just hassling, a hundred percent. You know, I was eating for free at the cafeteria in the hospital still. And then I was making 450 K, right?

Dylan Silver (07:59)

Yeah, yeah, House hacking, really.

like to pivot a bit here and ask you, you know, this is a different conversation than I’ve had previously on the show. You know, for folks who are entering the medical field and they’re trying to figure out exactly how they’re going to capitalize fastest on their profession. They’re a medical doctor, they’re not sure exactly which field to go in, you know, what they want to specialize in, where they want to work. Do you have any general advice for folks, say, if they want to earn top dollar in the medical field as soon as possible, what would be your feedback?

them.

Diego Kriger (08:53)

So whenever you graduate, you gotta decide, okay, I’m gonna do another fellowship. I finished residency. I worked my ass for 14 years, So what I’m gonna establish, right? Because ⁓ usually for physicians, like the first job is not the best job, right? So you tend to move.

Because when you get in the field, you can understand what is the workflow, what is the real paycheck, what is your real value that you’re to be offering. ⁓ By the time that you’re in residency and you’re ready to graduate, you should have an idea of where is going to be your town. Whenever you get there, and then you feel confident that this is going to be the place, I’m not going to do any more training.

Right? I’m already a cardiologist. I’m already a nephrologist. I’m already a hospitalist. That’s it. I decide that I’m going to build my family. I’m going to build my wealth, my empire. Right? And then that town that you are at, that’s the place that you’re going to invest. So I personally, I don’t invest anywhere else because wherever I invest, I can drive. I can go there. I don’t…

Dylan Silver (10:12)

Yeah.

Diego Kriger (10:14)

manage my real estate by myself, right? But I go there. I have a very easy schedule. I can go there anytime. And then I think that the best option is wait until you’re done with everything. Wait until you’re happy, the place that you’re at, the town that you’re at. And then if you feel like this is the place, this is the place that you’re going to start buying one by one, little by little, right?

Dylan Silver (11:16)

I know that you’re in Tampa. I’m a big fan of Tampa. I was mentioning this to you before hopping on here. I actually haven’t lived in Tampa, but I’ve heard from a far from a distance just how great it is in the surrounding areas. What’s your favorite parts about Tampa? Why did you end up choosing Tampa as your ⁓ forever home?

Diego Kriger (11:36)

Well, the reason why Tampa ended up being my home is because ⁓ I basically in California and COVID-19 season, was very tough. were offering, Tampa was booming. They were offering ton of money to come to Tampa because they really need help. It was literally growing so much and they were giving massive like a hundred thousand dollar signing bonus.

So you sign a contract, they give you $100,000. So I was like, why I’m gonna stay in California? Everything was so cheap in Tampa. So that was the main reason, but I always dreamed like, I’m gonna go to Miami. Because that’s the most similar to LA. But I never made it to Miami, thanks God. And then I ended up in Tampa.

Dylan Silver (12:12)

and go there. Yeah.

Diego Kriger (12:29)

And then I’m happy. mean, it’s booming. It’s so diverse. I have the beach, I have the downtown, I have two different downtowns, you know. And then…

Dylan Silver (12:36)

That’s right. Yeah, that’s right.

I’ve heard from a lot of people that, and I don’t know how true this is, maybe some people in South Florida might dispute this, but that people who are in Miami, Fort Lauderdale, that area, they might end up going to the West Coast of Florida anyhow to go to the beach because of traffic and because of so many different factors. So I’ve heard great things about that West Coast of Florida. And then to your earlier point, if there’s an influx of people and there’s this demand for

Diego Kriger (12:53)

Yeah.

Dylan Silver (13:04)

⁓ doctors, right? And they’re willing to pay signing bonuses. One of the things that I think is sometimes a limiting factor to people from all backgrounds, not just medical field is you might have to be willing to move across the literal country. Like you’re talking as far as you could go, California to Florida. so, know, different, you know, some similarities, but some big differences as well. And so in your mind, you said, you know what?

That’s where they’re paying the best. Let me go move there. Not everyone’s willing to make that jump, right?

Diego Kriger (13:35)

Yeah, exactly. And then let me tell you something about Tampa Bay that I found that was very interesting. And there’s so many similar towns in the United States. When you come to Tampa and you buy real estate, usually the flippers of Tampa Bay are mom and pop businesses. It’s that guy who, was a GC or always a sous contractor and now he’s

He’s putting so much sweat equity in the house that you’re buying. He’s dying to rehab that house. He’s gonna leave that house perfect for you. He’s not a GC, subcontracting, subcontracting. And it makes the flipping so affordable for you. You are buying the house completely renovated. He did it for you, right? He has his son.

Dylan Silver (14:27)

Right.

Diego Kriger (14:31)

his wife helping. Imagine the cost of the flipping is so, it’s his margin. He’s taking such a small margin for that flip and he’s selling it to you, right? And you’re taking, you’re basically leverage him, right? And then you are coming in a hundred percent finance with the loan. You’re buying that property in such a good deal.

I mean, you don’t want to find that deal in California because in California, it’s so regulated that you need, I mean, of course you need permits for everything, including to fix the pavers in the front door, right? So you need a lot of GC, you need a lot of investment. So the flipper needs to make his money, right? So,

Dylan Silver (15:51)

Yeah.

Yep.

That’s right.

Diego Kriger (16:05)

And then that cost is going to pass to you. So that’s the cost of real estate, right? So ⁓ I think at Tampa Bay, Tampa Bay has so many opportunities still, there’s so many mom and pop slippers. They’re putting so much sweat equity in those properties. And then sometimes I’m like, my gosh, across ⁓ like three blocks away, I’m seeing this guy, he’s renovating a house. He’s there until 10 p.m.

Dylan Silver (16:10)

in one market.

Diego Kriger (16:30)

I’m I’m working, I’m working. I’m like, he’s doing such a great job. And then I’m walking in the neighborhood, I walk in and then he’s such a a great flipper. He’s putting so much, he’s putting so much quality in that house. He’s adding so much value. I’m like, I’m not ready for to grab another loan, but ⁓ I will, that’s the type of house that I will buy is that mom and pop flipper.

Dylan Silver (16:42)

Yeah.

Diego Kriger (16:57)

He’s putting so much love, so much energy for that house. Tampa Bay is that place.

Dylan Silver (17:01)

Yeah, I mean, that’s a great point.

You know, I’m licensed in Texas and we have some of that. I would say a good amount of that that energy with mom and pop flippers. But it’s in stark contrast to where I grew up in northern New Jersey. I really didn’t see hardly anybody who was a real estate investor. That’s not to say that there isn’t a small investor community in northern New Jersey, but it’s just the price points are way higher and it’s not as common as I would see in Texas. And I’m hearing a very similar story out there in Tampa. Any areas

Specifically of the greater Tampa area or you know that that west coast of Florida area that you’re particularly bullish on Or that you like looking at deals in

Diego Kriger (17:47)

So Tampa Bay, will say everywhere, but the area of Carowood and Tampa is a little bit northern to Tampa ⁓ downtown. Anything around the ⁓ Tampa International Airport is booming. And then a little bit northern to St. Pete, that area ⁓ from St. Pete downtown going north, it’s booming. ⁓ The other day I met this ⁓

It’s a friend of a friend. ⁓ does co-living. It’s like a new thing. ⁓ They buy houses with six beds, five bathrooms, like four bathrooms, and they rent by rooms. So it’s like another thing going on in St. Pete because the rents is sky rock. Everything’s so expensive. So he does co-living. And then it’s very interesting. And then I think at St. Pete, will be a place to do it.

and it’s limit. ⁓

Dylan Silver (18:46)

That would be the place.

That would be

the place. I’ve heard great things. ⁓ Co-living, I’m forgetting the name, but there’s a type of service where you can have multiple people who may be staying for pad split. That’s the name of it. Pad split. I’ve heard, and I don’t know if that would be considered a co-living, but I’ve heard of people doing a pad split around airports and, you know, areas like that. And St. Pete, I heard only great things about St. Pete from guests on this show as well. We are coming up on time here though, Diego. Any new projects that you’re working on and then as

what’s the best way for folks to get in contact with you?

Diego Kriger (19:21)

So ⁓ the projects that I’m doing right now that I’m going to focus on regarding my real estate, I bought ⁓ seven houses. So the reason why I only buy seven houses is because I was using physician’s loan. They only allow you to buy primary homes. It’s only one loan per year as soon as you keep moving from one house to another. ⁓

It’s a hundred percent finance. So I bought my seven houses. Now I’m max out on physician’s loans. I’m done. I can’t get anymore. Right. I can’t tell the underwriter I need another one because that’s it. They don’t want to lend me anymore. Right. So the goal now is because I build so much equity in this houses that I want to. I’m going to turn 31 one by one. So this year I’m going to start selling one by one.

1031, and then I’m going to start pursuing, I don’t know, triplex, fourplex, and then I’m going to start basically flip that equity into something bigger, right? And then, and the other thing that before we forget, I don’t know if you know the real estate professional status. I’m a real estate professional status.

Dylan Silver (20:33)

Yeah, absolutely.

Diego Kriger (20:48)

by the, there’s a code in the IRS. ⁓ and in purchase price, I think I got a $2.9 million in real estate, right? So two years ago, I started working with the CPA and I did all the cost segregation studies of all my properties. So now it’s been two years, two tax seasons that I was able to wipe out all my income tax.

Dylan Silver (20:51)

It’s rain.

Yep.

Diego Kriger (21:18)

out of my, I was able to depreciate all my real estate and then get a refund of $180,000 per year, right? From my W-2 because unfortunately I’m a W-2. I don’t want to open my own business. Fine. I have a great job. Fine. I don’t deal with headaches. People say, why you don’t open your own business? will be like, you know, it’s, I have a great job, period.

Dylan Silver (21:29)

From the W-2. Yeah.

He’s

good.

Diego Kriger (21:49)

So I was able to wipe out all my income tax, right? And every year, and then I’m gonna keep doing it until I decide that I’m gonna work anymore. And then that’s so easy to do it. I mean, there’s so many resources. There’s people who can do cost segregation studies for a thousand, $2,000 per property. Then you can depreciate that real estate until it’s done.

Dylan Silver (21:52)

Yeah.

Diego Kriger (22:19)

until for 30 years. Imagine, how much refunds you can get in your W-2. I mean, it’s…

Dylan Silver (22:21)

That’s exactly right.

That’s a huge

thing. It’s a huge thing. I’m glad you mentioned that, Diego, because you don’t have to be ⁓ a medical doctor or a high-earning W-2 to be able to offset some of that income when you have a real estate business or a similar business. And I think that gets lost on people. They’re thinking, well, that’s that bucket. This is my W-2. If you have a good tax strategist, a good tax professional, they can help you offset that W-2 income.

Diego Kriger (22:53)

Yeah.

And then for people to understand what is a real estate professional status, it’s like a tax code loophole. And then I’m, I’m married, right? My wife, she doesn’t work. Right. And if you’re, if you’re married and your wife, she doesn’t work or she has a part-time job, she’s the one who managed your real estate. Right. I personally manage it with her and she manages it. And then we have people who help us. Right. But if you qualify, if you in

Dylan Silver (23:14)

That’s exactly right.

Diego Kriger (23:22)

if you invest 750 hours, right? Because we have long-term, it’s all my properties are long-term tenants. So if you invest 750 hours of your time into the business, the IRS lets you depreciate that amount of assets, right? Against your income tax, which is like a…

crossing the passive into the active, right? So the passive, the appreciation is able to go through the wall and cross into the active ⁓ income, right?

Dylan Silver (24:04)

Yeah, Diego,

we are coming up on time here, though. Thank you so much for coming on the show today for telling us about what it’s like being involved in the medical field and then as well invest in real estate simultaneously. Thanks for your