How Healthcare Professionals Turn High Income Into Multifamily Real Estate Ownership

Nkem Ezeamama (00:00)
Good question. So this is the one thing, right? You we think that outside of our jobs, like it can be done very easy. So they expect to be, they expect to be millionaires with one deal and it doesn’t really work that way, right? This is you have to be — you have to be long term. You have to your your focus and your mindset has to be long term. So you’re building wealth on a long term basis. So it looks like investing in one or two properties a year and building that out. And if you keep doing, if you keep at it right, within five years, right, when you start selling your first property, then you’re gonna start accumulating wealth.

Dylan Silver (02:09)
Hey folks, welcome back to the show. Today we’re joined by Dr. Nkem who is an emergency room physician, turned multifamily real estate investor, entrepreneur, and founder of Pheenyx Capital Investments. Dr. Nkem, welcome to the show.

Nkem Ezeamama (02:23)
Welcome. Thank you so much for having me.

Dylan Silver (02:25)
Now you help healthcare professionals become multifamily investors, investing in apartment complexes. How do these conversations matriculate?

Nkem Ezeamama (02:38)
Great question. They really just start with knowing that we are experts in medicine, but maybe don’t know a lot about investing, about wealth, about financial literacy. And so that’s where the question that’s where the conversation really starts. And it starts with understanding that while we trust our nine to five, right? What else are we building? What does ownership look like? And that’s where real estate comes in. And that’s where the conversation starts and it builds from there. So it’s okay, now I’m doing this and I have some residual income. How do I build wealth outside of this? How do I start diversifying? How do I get into real estate? and then how do I own? So that’s how the conversation really starts and blossoms into investors.

Dylan Silver (03:23)
Now there’s this term that I’ve heard quite often and I think it’s appropriate here, HENRY, right? High Earner Not Rich Yet. Yeah. And there’s a lot of healthcare professionals that certainly fall into this category, but if you don’t become an investor, oftentimes you find your money leaking in all kinds of ways through lifestyle inflation and also through maybe making some investments that don’t necessarily pan out. And so what do you see is the attitude or the openness towards real estate investing as a whole from healthcare professionals.

Nkem Ezeamama (03:56)
Great question. It depends. So as healthcare professionals, we are bombarded with all sorts of investments because we are high earners, right? So there’s a lot of people who are trying to get our business. And so sometimes we are a bit skittish. sometimes we’re truly risk averse just because a lot of us have been burned. So it’s initially maybe — it’s initially a little difficult, right, to have these conversations, but when you when you stand on, you know, when you when the conversation is built on trust and transparency, right? And also basis of education, then it’s easier to have that conversation. So even if at the end of the day they don’t become investors, right? They leave with pieces of nuggets on what to do, how to do, how to start thinking about wealth creation, how to start thinking about investing, right? All of that is all of that is possible because of that conversation. And so it’s kind of chiseling at the trust, right? The trust factor and saying, you know what, yes, a thousand people are coming at you for your money, but what does this look like? What does this mean? How do you how do you approach it? And so when you approach it from that aspect, and I also think truly the biggest thing is education. There’s so much we don’t know. And so if you if you start to learn and you understand, okay, what does syndication mean? What does it mean? Like what does, you know, what does passive investing mean? What does it mean, you know, to put my money? What is the what, you know, what does diversification mean? Do I need to be in stocks? Do I need to, you know, maximum 401k? should I be investing in real estate? What type of real estate should I be investing in? Right? These are the questions that when helped answered, right, it can stare you in the right direction and build that trust.

Dylan Silver (06:29)
Now, when folks are determining exactly how to get started investing in real estate, you know, multifamily syndication might not be the first thing that comes to mind. People might think, hey, I’m gonna buy a rental, single family, maybe I’ll do a light flip with someone that I know and trust. And so in your journey, how did you find the multifamily syndication?

Nkem Ezeamama (06:50)
Very good, great question. So I was looking for, and you’re right, right? There are multiple buckets of real estate investing, right? But there’s some people who know that they don’t want to manage tenants, toilets, termites, whatever it is, right? They just they’re like, I really don’t want to be called at 1 a.m. in the morning that my tenant’s toilet is clogged. Right. And so you kind of know. And so some people right don’t start with single family. A lot of people do. I think you fall into real estate because you’re like, maybe you bought something and maybe you moved and you held on to it. And then from there you’re like, okay. But there’s some who are like, No, I don’t want this. What else is out there? Right. And so that’s when you start doing your research. And that’s the same with me. I started doing research and I found apartment investing where I could be a passive investor. I started off as a passive investor and I just, you know, I was like, okay, let me find a group that I trust and I vetted, right? That I can put my money behind so that I know my money’s working for me while I continue to work in the hospital. That was my — that was my thought process behind looking for an opportunity that was not necessarily single family. And I was I also thought, right, if I wanted to grow in that space, I would have to buy a lot of single family. And I realized that maybe my capital will be capped at some point. So I was looking for ways that my money would go farther, right? But without me doing as much work so that I could buy back that time to go do something else.

Dylan Silver (08:20)
with Pheenyx Capital, are you focused on value add? what is your strategy in in acquisitions and your your arithmetic looking at an exit?

Nkem Ezeamama (08:29)
Good, good, great question. So value add is our big business plan truly. It’s a little different now with just kind of where the economy is and what’s happening with real estate investing, but it’s still there’s still value add is still alive and well. And so we’re looking for properties that still have, you know, what we call meat on the bones. So, you know, we’re going and looking at properties that are maybe B, B minus, knowing that we can upgrade it, you know, we can renovate it and bring it up to 2026 standards and still be able to force appreciate the value of that property, knowing that real estate will go up eventually. So that’s kind of the process or the mindset behind it. The hold is still, you know, are we looking at three to five years, but we really probably settle more on the five-year mark to sell. But that’s the, so the big, our big business plan truly is still value add.

Dylan Silver (09:22)
Now, when you’re looking at the scope of work, this is often a sticking point for multifamily investors because of course you want an opportunity for value add, but you also want to make sure that things go smoothly when there’s tenants in place, especially. And then also too, managing contractors can always be tricky. So what’s your approach to the level of distress that you feel comfortable with?

Nkem Ezeamama (09:43)
Great question. So we are not going after super distressed properties. So we’re not going after maybe D-class properties that we’re going to have to gut the whole thing. No, we’re going after properties that are well kept, well managed, right? And maybe they’re in classic classic units. Let’s say we buy a 1990 or 2000 property and they’re still classic or what’s when 2026. So bringing that up, right? That might be changing the backsplash, you know, putting in you know, going from carpet to hardwood floor kind of things like that, right? Fixing, upgrading the bathroom, upgrading the kitchen, nicer appliances. But I think even more than that is working with a property management team that you that you trust, right? And we’ve built relationships with some really great property management teams. And I think from there, right, they take care of the construction, they leverage their relationships and bring us bids. So it looks like, you know, instead of me trying to go to the market to find the right contractor. It looks like looking at three top ones and then picking my preference. So that’s what that looks like.

Dylan Silver (11:23)
Now the property manager that is the liaison between you and the contractors, that’s a really good property manager. a lot of times people don’t necessarily have that type of connection. How did you find such a good property manager?

Nkem Ezeamama (11:37)
It’s it was trial and error. I don’t want to tell you that it was I don’t want to tell you that we got it the first time. We tried tried a few that didn’t go well, but you know, when you know when you know the value that you’re bringing and you realize how important your investors are, investor capital, right? Then you go to town and you find the right people. So for us, it really looks like more of a boutique firm. So it’s not large where it’s not a property management group that’s managing five hundred thousand units is not that. It really looks more like twenty thousand, right? So they still, we’re still important, we’re still top of mind and we’re building with them.

Dylan Silver (12:15)
Now when you’re looking for new deals, is there any one area where it’s the most important? Is it always location? Is it you know the demographic and you know where people are moving to? Is it the job market in that area? Is it a mix of everything?

Nkem Ezeamama (12:31)
Okay, good question. It’s location, but location is a mix of everything. So location is where people are moving to, where are jobs growing, where are, you know, places that don’t rely on one market. So really the Southeast, with all the market analysis that we’ve done and market research, Southeast looks like the right place, right? It’s cost of living is cheaper. These are, you know, I would say some of these are landlord-friendly states, and so like that benefits us as owners. And then looking for places, you know, like people are leaving out west, they’re leaving up north, and they’re moving down south, right? And so to be able to leverage that because everybody needs a place to live, right? Housing is a basic human need, and you know, if interest rates are kind of high, and they’re not allowing people to buy, then a lot of people are renting. And so that’s where the market comes in. So I think that the the straightforward answer is location, but inside of location, it’s truly migratory patterns. It’s job patterns where people are moving to, we look at, you know, even down to like school districts, school ratings, like all of that is important when you decide on what to buy.

Dylan Silver (13:39)
There’s this term I’ve heard renting by necessity or renters by necessity. And I think that describes a lot of people right now. We’re also seeing a lot of I would say interesting developments in LIHTC, this low income housing tax credit segment, where you’ll see some really nice brand new communities come out that are, you know, actually in a cash flow positive position and are fully filled and that are partially government subsidized. So you mentioned, you know, being able to provide places for people who are, you know, renting by necessity. When you’re looking at the next acquisition, I know that you just did one we were talking in the green room in Atlanta. Are you going for on market? Are you going for off market? Are you working with realtors? Are you looking in that affordable segment? How are you finding these deals?

Nkem Ezeamama (14:25)
Wonderful. I am not looking in the affordable segment, but it is a combination of both on-market and off-market deals. And I think one of the biggest things that you can do for yourself is you know build relationships with brokers, right? Because they’re the people who find the deal. So I was speaking to a broker yesterday morning, and his goal is he’s reaching out to 20 to 25 sellers on a daily basis, and he’s asking them, Are you ready to sell? Right. Because he has buyers like me who are eager and ready to jump on the next deal. So it’s building those relationships with the brokers so that you can get some off-market deals while you’re still competing for deals that are on the market.

Dylan Silver (15:04)
That’s another great relationship to have a broker who’s doing some outreach, right? And not just letting the deals come to them. Another rare find, right? One of the most important things that sometimes gets under utilized is the power of that sphere of of realtors, of brokers, of a property manager. You’ve clearly been very intentional about cultivating those relationships. Has that been something that you knew from the beginning would be important or did you nurture that with time?

Nkem Ezeamama (16:13)
No, that’s definitely nurturing with time. There’s a lot of stuff that you don’t know and that you kind of learn on the job, but you realize how important it is, right? Maybe you’ve been bitten once or twice and you’re like, okay, I need to figure this thing out again because at the end of the day, right, my investors are are important. The tenants, the people we serve are just as important. And so with that in mind, right, then we really have to cultivate the right relationships so that it all comes together.

Dylan Silver (16:41)
pivoting here. I know you are talking with lots of physicians who are interested in investing, but I’m sure that you have all types of conversations with folks. what have you seen as maybe the biggest piece of misinformation that, you know, high earners are told about building wealth?

Nkem Ezeamama (17:00)
Good question. So this is the one thing, right? You we think that outside of our jobs, like it can be done very easy. So they expect to be, they expect to be millionaires with one deal and it doesn’t really work that way, right? This is you have to be — you have to be long term. You have to your your focus and your mindset has to be long term. So you’re building wealth on a long term basis. So it looks like investing in one or two properties a year and building that out. And if you keep doing, if you keep at it right, within five years, right, when you start selling your first property, then you’re gonna start accumulating wealth. that’s what that looks like. So it’s really more of a long term, mid to long term mindset that I would say that we need to have. And sometimes you’re not told that. So you’re expecting, shall I say, magic in twelve months or less.

Dylan Silver (17:52)
Now, for someone to work with you, do they have to be an accredited investor? Okay, so really this couldn’t be someone who’s, you know, in their first year or two in the job. They’ve got to have some time under their belt.

Nkem Ezeamama (17:55)
Yes, they do. That is very true. So, but I have a lot of young healthcare professionals who are just coming out of school or who are just coming out of training and are like, listen, I see what you’re doing. I want to be a part of it. We invite them into the community because part of it is education, right? So a lot of people are not ready, right? Because they don’t know all they don’t know anything about this. And so in the beginning, it’s a lot of nurturing, it’s a lot of educating, it’s a ton of webinars to just understand tax strategy, to understand wealth management, to understand building wealth, to understand real estate investing, all of that, right? And so we invite them to join the community so that at the right time, you know, when they’ve started accumulating, you know, additional income where they have that extra, right? They’re already primed. And by that I just mean they’re educated. They understand, they understand the risks, they understand the benefits, they understand diversification, they understand what to do with that residual income coming in. So it’s the right time. So I love the fact I I get excited when I have young, you know, young investors who are like, listen, I’ve been seeing what you’re doing. I want to be a part of it. And we welcome them with open arms.

Dylan Silver (19:09)
The tax strategy component is super important and oftentimes underspoken about because you know, if you’re a high earner, you’re gonna be paying a ton of money, a ton of money in taxes. We’re talking like hundreds of thousands of dollars just over a period of a handful of years. And with the right strategy, people can save on a majority of that. I know that there’s a lot of people who are probably listening to this and other shows where you think, gosh, if I had thought about this earlier on, I would have been so much further ahead. We don’t often talk about the ability to, you know, have write offs against your W-2 income when you’re investing in real estate. But that’s something that you know should be spoken about more, especially to high earners.

Nkem Ezeamama (19:52)
Agreed hundred percent. One hundred and that’s that’s a big part of the conversations that we have.

Dylan Silver (19:57)
Now when folks are looking at this, you know, there’s two sides of to this equation here. There’s hey, I can utilize my high income to make more income and have passive investing. The other side is hey, I can become a tax strategist and really save so much of this. Are people as excited about that second part as that first part? ‘Cause I certainly am. Yes.

Nkem Ezeamama (20:18)
There are people who come in and are like, listen, I’m paying too much in taxes. help me, right? What does it look like if how can I get depreciation? What does that look like? How can I help offset some of my tax burden? So that conversation we’re having a lot. And the people who maybe don’t know it, they get excited about learning about it because then it’s another opportunity that they can benefit from, you know, without even knowing that they could benefit from it, right? They just wanted to invest in real estate and it’s like, okay, surprise, you also get this. So they’re just as excited. But we do have some people who are who come in saying, Hey, I know about this, help me get this. So we get both sides and both of them are just equally as exciting.

Dylan Silver (20:58)
you know, when folks are looking at tax strategy, they’re looking at which area of real estate, which segment of real estate to invest in. And they’re maybe comparing that with some other things. Hey, I might buy a business. Hey, my friend wants to open up this and is asking for, you know, some angel investment capital in order to get started. It can be a little bit overwhelming, right? But I’ve also seen the flip side of it, which is that, you know, if you don’t get started in something, that you get very much set in your ways. You’re just gonna ride the wave of a mutual fund, right? An indexed fund. What do you hear most commonly from high earners about, you know, where ways that they’re maybe misapplying their capital or business ventures that haven’t worked out for them?

Nkem Ezeamama (21:39)
Man, I’ve heard a ton. And there’s no everybody has a different story, right? And there’s some people who love angel investing and right, they’ve had one success and they have ridden that wave, right? And they’ve done really well. So it just depends on who your circle of influence is, right? So there’s some people who are like in groups that are heavy on real estate investing, and there are others who are heavy on oil and gas, and there are people who are heavy on you know, angel investing or venture capital, right? So it just depends on who you’re talking to, what you’re listening to. And so I get a lot of flavors. I don’t think, right, I love real estate. I’ve seen the power of it, you know, in my life and the lives of investors. And so I talk a lot about it, right? My diverse I’m diversified, you know, in a lot of the things I’ve spoken about, but I definitely heavily focus on real estate. So if you’re around me, you’ll hear a lot of conversation around around real estate as expected. Right. But I think I just think it depends on you, right? Depends on what you want to do. But my true advice is learn a little bit about everything. Right. Learn and maybe like if you do have, you know, if you do have extra income, right? Put some in real estate and maybe put some in something else that you love or that you want to figure out or you want to learn about. Right. And some people, right? Some people want in the early stages want to focus on building a business. And I think that’s wonderful. and then as that business grows, right, you still get more residual income that ends up flowing back into real estate. So it just all works out. It just depends on, you know, and that’s a conversation. That’s a conversation I most oftentimes have with my investors because I want our goals to align. So I really want to know what you want, right? What you’re interested in. I’ve had investors that I’ve turned away and I’m like, I don’t think this is the right time for you. And I’m okay with that, right? Because then they go do what they need to do and they come back at a better stage, better timing where they and then they invest a lot more. So it’s truly one of the first things that we do at Pheenyx Capital is to set up a call. And that call is really to it’s for alignment of goals and it’s asking, okay, what do you want? What is your time horizon? You know, what’s the time frame in which you want to do that? How much capital do you have sitting? You know, if you did this, right, would you be okay putting this money for five years? Like what does that look like? We have those conversations with investors, maybe with their spouses, you know, and sometimes with their grown kids. And that’s a conversation that I’m we’re definitely excited to have because that is that brings so much clarity to the journey and where you’re going as an investor or potential investor.

Dylan Silver (24:14)
We are coming up on time here. anything you’d like to mention directly to our audience?

Nkem Ezeamama (24:19)
I love this. This was a great conversation. And this was truly about really understanding the why behind investing in real estate. So all I say is if you enjoy the conversation and you want to connect, feel free to find me. I’m on LinkedIn, I’m on any social media platform. But if you just put my name, you’ll find me on LinkedIn. and then from there we can connect and then I’ll help you with next steps.