Table of Contents - Juggling Dentistry and Real Estate with Dr. Jeff Anzalone
Dave Debeau [00:00:08] Everyone is Dave Debeau, another episode of the Property Profits Real Estate podcast today, zooming in on his lunch break all the way from the lovely Louisiana. We've got Dr. Jeffrey Anzalone. Jeff, I don't
Jeff Anzalone [00:00:25] I'm doing great today. Looking forward to excited about being here.
Dave Debeau [00:00:29] Yeah, well, I'm excited to have here as well, because Dr. Jeff is a different kind of a doctor, Liz Periodontist, dentist for us kind of normal folks. And he's also a very accomplished real estate entrepreneur. So that's what we're here to talk about, because he's still working full time, fixing people's teeth. And he's also doing real estate investing and he's raising capital and he's working with high net worth individuals, which is, I think, something that all of us are interested in finding out more about. So, Dr. Jeff, why don't we start with this? What is the primary asset class that you focus on when it comes to real estate? What are you investing in these days?
Jeff Anzalone [00:01:13] Kind of happened owned to it by luck or I guess by chance. But the you know, we my wife and I rented while I was in training probably 10, 11 years. And I'm very familiar with with the type of apartment that apartment complexes that that we used to live in. You know, it's your, you know, class B, B minus probably just bread and butter. Don't really care for the high end amenities, you know, like a good value for a good price. I was used to living in it. I was used to knowing what type of tenants, you know, just regular hard and other blue collar people. And that's that's kind of my our our sweet spot that we like. And then I'll have people ask me, well, you know, what's the reason behind that? And besides my personal experience with it, I've got two teenagers and married, so working full time. So I want to do something that's a little bit more less risky, a little more conservative. So I don't go after much of the class, a lot of the class, but I don't really do a lot of new construction. You know, I want something that's already cash flow and that's occupied, already has a good track record. So that's kind of the things that I look for. I'm not the type that will jump on the, you know, the game stock or whatever bandwagon that's that's going on in the stock market at that time.
Dave Debeau [00:02:36] Yeah, all very, very interesting. So you're basically kind of looking for bread and butter, turnkey type apartment building properties. That's correct. Yeah. OK, now how long have you been investing in apartment buildings?
Jeff Anzalone [00:02:52] I'm currently on my fifth year. Started with just some crowdfunding sites. Early on, I got burned on one equity deal, so I've now moved on to doing projects with people that I get to know. You know, the sponsors that I get to know personally not only have their cell number, but I know where they live. So if, you know, problems go go wire, I know where they live. Not that I'm going to injure anybody, but it's just it's good to put a name with the face, with the address. When you're talking about
Dave Debeau [00:03:24] investing six, everybody's going to the dentist anyhow, so. Yeah. So so where do you and, you know, you've got you've got your dental practice. You're a husband and a father. You're a real estate investor. Are you like in the scheme of your real estate deals, are you the guy going out there finding these deals, get them under contract, negotiating on them, all that kind of stuff? Or are you more of a passive investor in these kind of properties and your partner with with active you? Where do you fit in?
Jeff Anzalone [00:04:01] Initially, I thought I wanted to be involved with with finding deals and that sort of thing. But looking back, we wanted more time with our kids while they're still under our roof. And I didn't want any more jobs. Plus, once I started looking at what it takes to find the deals to underwrite them, I mean, that in itself is a full time job. So there's really no way that I could do it right in order to get the best value for investors. So I'm more of a passive investor and I just work with, you know, other companies, other sponsors that go out and get the projects, you know, after I vet them and then share my experience on my blog that the things that I'm learning, that I think other people should know before they were to invest in something like that.
Dave Debeau [00:04:52] All right. Very cool. So you're more of a passive investor. Do you also bring other investors on board with you into the deals, or is it just all your own capital that you're focusing on?
Jeff Anzalone [00:05:03] Well, it's funny you ask, because, you know, when. When I first started my website, it was just my personal experience investing and then as I was learning things, you know, like let's say, for instance, cap rate, well, then I would write an article about cap rate, which I didn't know about cap rate. And then when I would learn something about, you know, forced depreciation or whatever, I would write articles on it. So after about doing that for two years, I was approached by a group, Nepali capital out of Dallas that had about 80 percent of their investors were doctors. They found my website and he liked the message that I was sending. So I said, well, what do you think about providing education for our investors and maybe some other other people? And then they started talking about, you know, doing some other things. And it really it was at that time that I learned about, which was only about a year ago about helping bring people to deals. I didn't even know that existed. So I had this big platform that I had built all these people on our email list that were getting the articles. So it was kind of set up perfectly because not everybody that reads the articles want to invest, but those that did want to invest and they would reach out to me. Then I had a place for them to go alongside me if I were to invest in other projects.
Dave Debeau [00:06:31] Very, very cold today. So would you say that you're kind of a you're not really a syndicator, but kinda so you've partnered up with these folks that that have the deals, you've got the platform, you've got the contacts, you helped bring people to their deals, you join in as well. So are you compensated in with equity in the property? How does that kind of work when when you're bringing on investor partners?
Jeff Anzalone [00:07:00] Yeah, it seems like that maybe is kind of the norm from talking to other people that do that. But, yeah, they allow me to get like a small percentage share of equity in the particular project. That's how the their compensation scale and most of the other ones work out.
Dave Debeau [00:07:16] Yeah, it's very, very smart. So that's so this is a way for you to have good passive projects to invest your own capital into. Plus, you've got something that you can bring all the people that are following you on your own or into as well if they're looking for a passive investment as well. So it's kind of a win win win. Plus, you're bringing new investors, these guys that they wouldn't have access to otherwise, correct? Yeah. Nice, nice, nice, nice. All right. Very good. So, Dr. Jeff, what you know, you you hang out with a lot of other high income self-employed professionals, dentists, doctors, et cetera. What are some of the biggest mistakes you see these folks making when it comes to, you know, creating wealth and passive income? Because I know reading a little bit on your on your website, your first real kick in the can was correct me if I'm wrong, but you graduated from dental school with a massive I think it was three hundred thousand dollar student debt that you wanted to get rid of as quickly as possible. And that was kind of your first big thing. And then you found out about passive investing. So what are some of the bigger mistakes you see some of your cohorts making financially?
Jeff Anzalone [00:08:29] I think it really has really is. It's not so much it is doctors, but it's really any profession or professional that goes beyond four years of college and they tend to rack up more debt, whether that's a physical therapist, chiropractor or attorney, engineer or some of the more specialized professions. And there was a something I read in one of Robert Kiyosaki books. I think it was rich, that poor dad or maybe one of the other ones where he said it's just a shame that the way that the financial system, I mean, not the financial the educational system is set up to where you spend twenty, twenty five years of going to school, getting education. And the only thing that they're teaching you about is how to get a job, how to get a job, how to get a job. And then once you do get to that job, well, what's the only not the only, but what's one of the main reasons that you go and get a job to make money and they don't teach you anything about what the ultimate goal is, is how to manage your money. So I think it's kind of like some of these athletes that go to college and then they become a professional athlete or they only go two years of college now and go into the NFL or the NBA. Not that we make anything near that that those guys can, but it's kind of similar to when you're not making anything and you go from broke to having a pretty decent six figure income. And it's almost just like the child. And you just goes, wow, you know, it's like, oh yeah, I've got this debt, but who cares? I'm making all this money. And then. They look up,
Dave Debeau [00:10:08] they're throwing credit at you left, right and center,
Jeff Anzalone [00:10:10] right. Oh, yeah. I mean, we you know, as a doctor, we've got the the big ass on our shirt, not for Superman, but for stupid or succor or whatever or some other s word that you can think about. But it's almost like we've put off and delayed gratification for so long. We quote or we feel entitled that we need to go and buy a new Lexus or Tesla or the doctor house right off. And I see that's probably one of the main mistakes is when people get out, they've got all this debt, they start racking up all this other debt and they can never get ahead. So it really amazes me every week when I talk to people that are older than me in their 40s or 50s or whatever, making three or four or five hundred thousand a year or more and are broke. And I'm just like, how does that happen? But after you listen to their story, it's sort of the same common denominator. So I was a big Dave Ramsey follower when I first got out. I actually went through their course to become a financial coach, not to coach people. But I wanted to know what some of the questions to ask people, because, you know, real estate isn't right for everybody, depending on where they are in their life, you know? So I wanted to be able to get the kind of like when I look at a patient, I want to get the whole picture of what's going on so I can ethically either recommend it or say, hey, you need to clean up some of your debt or you need to do this before you need to think about investing. So I think that's what I wanted. I wanted to be seeing sort of this is a trusted advisor because we we don't really have a whole lot of people to trust out there in our field. So I just want to share my experience and them if people need help and I'm more than willing to try to help them.
Dave Debeau [00:12:05] Excellent. Dr. Jeff, time flies when we're having fun. If people want to find out more about you and what you do, how can they do that?
Jeff Anzalone [00:12:14] They can simply go. The website is debt free D-R Dotcom. If they want to download. I've put together a free passive income guide. They can download that debt free dot com forward, slash free God or they can email me. Jeff, Jeff at debt free dot com.
Dave Debeau [00:12:35] All right. And again, just like you imagine, this isn't just for doctors. That's what you happen to be. But this is for basically anybody, especially focusing on high income, high, you know, high education type folks who are making a lot of money, but not necessarily keeping it. Like you mentioned, you know, the challenges, the second you stop working, your income goes away just like everybody else is. Just, you know, doctors, dentists, lawyers, et cetera, tend to make up a much higher income. But again, completely reliant on doing the work. Right. It's all about creating that passive income. So thank you very much for sharing your insights. It's been a lot of fun.
Jeff Anzalone [00:13:15] Yeah, I enjoyed it. Thank you again. And look forward to helping any of your listeners out there if needed.
Dave Debeau [00:13:24] Awesome. Very good. Thank everybody. We'll talk to you on the next episode. Well, hey there. Thanks for tuning into the Property Profits podcast. If you like this episode, that's great. Please go ahead and subscribe on iTunes. Give us a good review of that. Be awesome. I appreciate that. And you're looking to attract investors and raise capital for your deals. That may invite you to get a complimentary copy of my newest book right back there in the Money Partner formula. You got a PDF version at Investor Attraction book, dot com again, investor attraction book, dot com Taika.