Summary: The goal of our Investor Spotlight series is to provide you with stories of real physicians and professionals who come from different backgrounds and who are at different points in their journey to financial freedom through real estate investing. Today’s spotlight is on Maryam, who embarked on her real estate investing journey while on an H1B visa. Her and her husband, Muhammad are hospitalists who moved from Pakistan to America in 2015. After practicing medicine for three years, Maryam decided to look for other avenues of investment. She took Zero to Freedom in the Summer of 2020.
As H1B visa holders, Maryam and her husband were in a unique situation. They had to overcome the challenges and hesitation of investing on an employer-sponsored visa. She credits the Zero to Freedom course and the advisors within the course for giving her the knowledge to invest with confidence.
[Disclaimer: We are not accountants, lawyers or financial advisors, so please consult your own team of professionals about the topics covered in this article.]
Coming to America from a different country is courageous in and of itself. Coming to a new country to practice medicine—and deciding to become real estate investors is on another level! Maryam and her husband wanted to inspire other students who may be in a similar work visa situation that it is possible to invest while on an H1B visa. She describes some of her obstacles and mindset challenges. As well as what helped her overcome them to successfully go from zero doors to 10 doors in one year!
How did you become interested in achieving financial freedom through real estate investing in the first place?
Maryam: Both my husband and I moved here in 2015 and we started residency. Then, we did a three-year internal medicine residency, and started working as hospitalists. So I’ve been here for about six years now.
I came across the Zero to Freedom course on one of the physician investing groups on Facebook. So I took the course, and then I was really lucky to connect with another physician’s wife who was already investing in my area. She ended up being a mentor and encourager. That support of finding someone local, along with Leti and Kenji’s support helped us take the first step and get started.
What is your “why” behind this? Was there a triggering event that led you to start your journey of achieving financial freedom through real estate investing?
Maryam: So last year during Zero to Freedom [ed. note: Maryam took the course in 2020] I was two years into my hospitalist practice. Both my husband and I had already planned to look into other financial avenues too. The Zero to Freedom course did spark the change in mindset. We weren’t interested in stopping our clinical careers, but we definitely wanted to work towards financial independence and having more choices.
What type of properties make up your real estate investing portfolio (SFH, multifamily, etc)? Were they in state/out of state?
Maryam: We now have two multiplexes and a single-family home for a total of 10 doors. All of the properties are located where we live in Sioux Falls, South Dakota.
Can you tell us about any difficulties or failures you’ve had in real estate investing? Any big learning points you’ve taken from these experiences that you can share with us?
Maryam: When we did the course, we had a lot of questions about investing with a H1B visa. Can you or can’t you invest with that?
Of course my experience is still new since it’s just been a year or so. However, I have learned some things that might help other people, especially in my situation. So, having an H1B visa means I’m on a work visa for my employer. Of course I did not want to do anything that would be against the law or hinder my visa or my employment.
Initially, I spoke to my own lawyer who helps me with my work visa. They told me there’s nothing in immigration law concerning investing in real estate. So, they said, “I can’t comment either way.” Then, I talked to one of the law firms discussed in the Zero to Freedom Facebook group pertaining to asset protection as well.
That lawyer was wonderful and she was able to clarify for me that yes, on any H1B visa you can invest in real estate as long as you’re passive. So you cannot go for Real Estate Professional Status (REPS) on an H1B visa. That would mean that you’re active.
With our specific scenario, they said, yes, that’s fine.
How about any big successes? Anything you learned from these good outcomes that you can share that might help other real estate investors?
Maryam: It’s definitely a process and you’re going to get as much out of it as you put the time in. Like anyone, I have times where I’m really into it, and I’m searching for properties. Then, I’ll have a month where I’m not giving the time that I think I should be giving.
Part of the process has been to not get discouraged by the high property prices and all that. Just keep meeting people, other investors, keep connecting on the Facebook group to try to keep your morale up, and work on your mindset.
Overall we’ve had a good experience using a property manager, and we’ve had learning experiences. At the end of last year, in our first multiplex, we actually had a tenant pass away, unfortunately in one of our units. So of course when you hear that, you’re like, “Oh my God, what’s going to happen?” But it’s just one of those things that if you have the right mindset in place, you can get through it. If you’re mentally prepared that most of the things have happened to someone else, and connect with colleagues or your team, then you can get it figured out. I posted about it in the Facebook group, and people had useful responses. Also, my property manager was very much like, “Yup, this does happen. There’s a process.” We just had to follow the process, and it worked out fine.
Where are you now in your real estate investing journey? What are your goals for where you want to be going forward?
Maryam: Hopefully once I get past the visa and on to a green card, I can move more towards real estate professional status (REPS), get more properties, and move towards more of those active goals.
However, as a H1B visa holder, don’t let the fact that you can’t pursue REPS be a hindrance to start. Reastically, you’re going to need a few years anyway to get there.
How has real estate investing affected your lives?
Maryam: For people like me who are immigrants, you never want to do anything that could delay your process or cause more questions. So talking to the lawyer and multiple people was definitely reassuring. After getting that legal knowledge that what I was doing was okay, I felt comfortable.
And similarly, making an LLC for asset protection was also explained to be okay and not against any visa guidelines.
Another mental obstacle that we overcame was deciding whether or not to get a mortgage. We hadn’t had any prior experience with one—previously we bought a relatively reasonably priced home without a loan. So we really had to look into that, educate ourselves how to do it, what was the best way? And that’s where local contacts really help connecting to a banker and learning the process. We’re still learning about financing options. It’s all been a learning experience!
Have you found a way to creatively fund your real estate portfolio and achieve financial freedom? Join the conversation! Follow our Semi-Retired MD Facebook page and join our Physicians (for MDs or DOs only) or Professionals group! Also, if you missed it, check out our prior Investor Spotlight.
Semi-Retired M.D. and its owners, presenters, and employees are not in the business of providing personal, financial, tax, legal or investment advice and specifically disclaims any liability, loss or risk, which is incurred as a consequence, either directly or indirectly, by the use of any of the information contained in this blog. Semi-Retired M.D., its website, this blog and any online tools, if any, do NOT provide ANY legal, accounting, securities, investment, tax or other professional services advice and are not intended to be a substitute for meeting with professional advisors. If legal advice or other expert assistance is required, the services of competent, licensed and certified professionals should be sought. In addition, Semi-Retired M.D. does not endorse ANY specific investments, investment strategies, advisors, or financial service firms.