Why Doctors are Afraid of Real Estate with Dr. Tudor Francu

Summary

In this episode of the Money Partner Formula, host Dave Deau interviews Dr. Tor Frangu, a busy doctor turned real estate entrepreneur who has built an impressive portfolio of nearly 5,000 units. Despite his demanding profession, Dr. Frangu actively invests in real estate, manages properties, and raises capital. He shares his journey from a Romanian immigrant to a successful real estate investor, emphasizing the importance of education, networking, and leveraging mentorship to scale a real estate business efficiently. The episode aims to inspire busy professionals, especially doctors, to explore real estate investing as a viable path to financial freedom.

Takeaways

• 😀 Dave Deau, the founder of Money Partner Formula, hosts a show for real estate investors interested in scaling their businesses with other people's money.
• 👨‍⚕️ Dr. Tor Frangiu, a busy medical professional, shares his journey as a real estate entrepreneur, emphasizing that being busy is not an excuse to avoid investing in real estate.
• 🏠 Dr. Frangiu started his real estate investment with a one-bedroom property in Baltimore, showcasing that everyone starts somewhere in real estate investing.
• 📈 He built an impressive portfolio of nearly 5,000 units, mainly as a general partner and syndicator, proving active involvement in real estate despite his medical career.
• 🌟 Dr. Frangiu's success in real estate was sparked by attending a Robert Kiyosaki webinar, which opened his eyes to different perspectives on investing.
• 📚 The importance of financial education and self-learning is highlighted, as Dr. Frangiu educated himself about the financial system and real estate investing.
• 🔑 Dr. Frangiu emphasizes that real estate investing does not require physical labor; it can be outsourced to property management companies, allowing passive investment.
• 💡 For busy professionals, Dr. Frangiu recommends identifying their 'why' for investing in real estate and understanding the different avenues available for investment.
• 🤝 Networking and mentorship are crucial for success in real estate, as Dr. Frangiu himself sought a mentor when transitioning from single-family to multi-family investments.
• 💼 Dr. Frangiu continues to balance his medical practice with his real estate business, showing that it is possible to manage multiple commitments effectively.
• 🌐 Interested individuals can connect with Dr. Frangiu through his website, Stellar Multifamily, for more information and guidance on real estate investing.

Q & A

What is the primary focus of the show 'Built for everyday Real Estate Investors'?

The show is focused on providing insights and experiences for everyday real estate investors who are actively doing deals and looking to scale their investments using other people's money.

Who is the founder of Money Partner Formula and the host of the show?

Dave Deau is the founder of Money Partner Formula and the host of the show 'Built for everyday Real Estate Investors'.

What is Dr. Tor Frangiu's professional background before he became a real estate entrepreneur?

Dr. Tor Frangiu is a doctor by profession. He immigrated to the United States from Romania and had to go through the process of establishing himself in the medical field, including completing his residency in the U.S.

How did Dr. Frangiu's interest in real estate begin?

Dr. Frangiu's interest in real estate began after attending a weekend webinar by Robert Kiyosaki, which opened his eyes to a different approach to investing and asset management.

What was Dr. Frangiu's first investment property and how did he finance it?

Dr. Frangiu's first investment property was a one-bedroom house in Baltimore, which he bought with cash and semi-fixed himself.

What is the current size of Dr. Frangiu's real estate portfolio?

Dr. Frangiu currently has about 5,000 units in multifamily apartment buildings, with around 800 of them under his active management as a general partner.

Why do you think high-income professionals like doctors are not more involved in real estate investing?

Dr. Frangiu believes that high-income professionals are not involved in real estate investing because they have misconceptions about the level of involvement and maintenance required, fearing the need for hands-on property management.

What advice does Dr. Frangiu give to busy professionals who are interested in real estate investing?

Dr. Frangiu advises busy professionals to first determine their goals for investing in real estate, understand their comfort level with different types of investments, and then network and seek mentorship from successful individuals in the field.

How does Dr. Frangiu manage his time between his medical practice and his real estate investments?

Dr. Frangiu maintains a balance by still practicing medicine a few days a month while focusing primarily on his real estate investments.

What is the best way for someone to connect with Dr. Frangiu and learn more about his approach to real estate investing?

The best way to connect with Dr. Frangiu is through his website, stellarmultifamily.com, where interested individuals can reach out to him via email or social media.

What is the main service offered by Money Partner Formula to real estate investors?

Money Partner Formula helps real estate investors create a process for predictably getting capital, allowing them to do more deals without relying on hard money lenders or banks, by building a private capital marketing system.

Outlines

00:00

🏡 Introduction to the Show and Special Guest

Dave Deau, founder of MoneyPartnerFormula.com, introduces the show designed for active real estate investors looking to scale using other people's money. He invites investors to be featured on the show. Dave introduces Dr. Tor Franuk, a busy doctor and active real estate entrepreneur with a portfolio of nearly 5,000 units, emphasizing his hands-on involvement in managing properties and investor relations.

05:00

🌟 Dr. Franuk's Journey to Real Estate

Dr. Franuk shares his background, coming to the United States from Romania after the fall of the Communist regime. He details his early challenges, including learning the financial system and attending one of Robert Kiyosaki's seminars, which inspired him to start investing in real estate. His first investment was a one-bedroom house in Baltimore, which he semi-fixed himself and rented out, emphasizing the importance of learning and networking.

10:00

🚀 Scaling the Real Estate Business

Dr. Franuk discusses his progression from single-family homes to multifamily properties. He highlights the advantages of multifamily investments, including scalability and better management leverage. He encourages busy professionals to find their niche in real estate and to seek mentorship to accelerate their learning. He also shares his method of leveraging experienced professionals to fast-track his success.

15:01

👨‍⚕️ Balancing Medicine and Real Estate

Despite his busy schedule as a doctor, Dr. Franuk manages several apartment buildings, primarily in Texas. He details his responsibilities, including site visits, property management meetings, financial oversight, and investor communications. He enjoys the challenges and excitement of real estate, viewing it as a dynamic and rewarding endeavor.

🔗 Connecting with Dr. Franuk

Dr. Franuk invites viewers to connect with him through his website, StellarMultifamily.com, or on social media. He expresses his willingness to discuss and educate others about real estate investing. Dave concludes the episode by encouraging busy professionals to explore real estate, emphasizing that with the right approach, anyone can succeed.

Keywords

💡Real Estate Investing

Real estate investing involves purchasing properties to generate income or profit. In the video, the host, Dave, discusses how real estate investors can scale their investments using other people's money. Dr. Tor Franku's journey from buying a single house to managing 5,000 units exemplifies successful real estate investing.

💡Other People's Money

Using other people's money (OPM) refers to leveraging funds from investors to finance real estate deals. This concept is central to the Money Partner Formula, which helps investors scale their operations. Dr. Franku uses OPM to grow his real estate portfolio, illustrating how effective this strategy can be.

💡General Partner

A general partner (GP) in real estate syndication is actively involved in managing properties and deals. Dr. Franku acts as a GP in his investments, handling tasks such as finding deals, managing properties, and investor relations. This role contrasts with limited partners, who invest money but do not manage the properties.

💡Syndication

Syndication in real estate involves pooling resources from multiple investors to purchase larger properties than they could individually. Dr. Franku participates in syndications as both a general partner and an investor, which allows him to manage and profit from significant real estate deals.

💡Financial Education

Financial education refers to the knowledge and skills needed to manage finances effectively. Dr. Franku emphasizes the importance of educating oneself through books, mentors, and networking. His financial education began with Robert Kiyosaki's teachings, which transformed his approach to investing.

💡Passive Income

Passive income is earnings derived from investments that require minimal active involvement. The video highlights how busy professionals like doctors can achieve passive income through real estate investing, thereby diversifying their income streams without significantly increasing their workload.

💡Cash Flow

Cash flow is the net income generated from an investment property after expenses. Dr. Franku's first real estate investment in Baltimore provided him with monthly cash flow, illustrating the immediate financial benefits of real estate investing. Cash flow is a critical factor for investors seeking steady income.

💡Multifamily Properties

Multifamily properties are residential buildings with multiple units, such as apartment complexes. Dr. Franku shifted his focus from single-family homes to multifamily properties to scale his investment portfolio. These properties offer advantages like economies of scale and higher income potential.

💡Mentorship

Mentorship in real estate involves learning from experienced investors to gain knowledge and avoid common pitfalls. Dr. Franku credits much of his success to his mentor, who provided valuable guidance and accelerated his learning curve in multifamily investing. Mentorship is crucial for new investors.

💡Networking

Networking involves building relationships with other professionals in the real estate industry. Dr. Franku's success is partly due to his extensive networking, which helped him find deals, partners, and opportunities. Effective networking can open doors and provide critical support for real estate investors.

Highlights

Dave Deau, founder of Money Partner Formula, introduces the show aimed at real estate investors looking to scale using other people's money.

Dr. Tor Frangu shares his background as an immigrant from Romania and his journey into the U.S. financial system.

Dr. Frangu's first exposure to real estate was through a Robert Kiyosaki webinar, which sparked his interest.

He emphasizes the importance of doing rather than just reading about investments, starting with a one-bedroom house in Baltimore.

Dr. Frangu transitioned from single-family homes to multifamily apartment buildings for better scalability.

He discusses the misconceptions busy professionals have about real estate investing, such as the need for hands-on maintenance.

Dr. Frangu explains the passive investment opportunities available in real estate, like being a limited partner or investing in funds.

He advises new investors to identify their goals and choose the type of real estate investment that aligns with them.

Networking and mentorship are highlighted as crucial for busy professionals to learn and succeed in real estate.

Dr. Frangu's personal strategy of leveraging a mentor to fast-track his learning in multifamily investments.

He clarifies that real estate investing is not as time-consuming as some professionals believe, thanks to property management services.

Dr. Frangu's current focus on managing several apartment building deals in Texas, emphasizing active general partner management.

The importance of staying connected with investors and providing regular updates on property performance.

Dr. Frangu's continued practice as a doctor while prioritizing real estate investing.

He invites interested individuals to connect with him through his company's website, Stellar Multifamily.

Dave Deau wraps up the episode by encouraging listeners to subscribe for more content and inviting real estate investors to be featured on the show.

Transcripts

my name is Dave deau founder of money

partner formula.com and this show is

built for everyday Real Estate Investors

who are actively doing deals and looking

to scale using other people's money so

if you're an active real estate investor

and you want to get featured on this

show to talk about your own real estate

and capital raising experiences then

just go to Dave interviews you.com now

let's get rolling with this episode and

remember to subscribe for daily

interview content let me ask you a

question have you ever said to yourself

I would love to invest in real estate

but I'm just too darn busy I don't have

the time for this I I don't have the

bandwidth for it well that excuse is

going to get completely blown out of the

water today because our special guest is

Dr Tor franu who is not only a very very

busy person in his professional life

he's a he's a doctor but he's also a

very exceptionally active real estate

entrepreneur who has built up a very

impressive portfolio I believe of

somewhere close to 5,000 units if I if I

recall correctly and he's not just an LP

or a very passive investor he's an

active investor he's a general partner

he's a syndicator he's finding deals

he's helping to manage properties he's

doing investor relations he's got a lot

on the go so so Dr tutor franku welcome

to the show great to have you here thank

you Dave uh I appreciate the

introduction I hope your uh audience is

going to benefit from our

discussion I I know they will so first

things first I don't want to spend a lot

of time on the backstory because you

have a very interesting one but this we

got to get to the nuts and bolts here

but I do want to know what was it for

you personally that sparked your

interest in real estate in the first

place um well let me give you a little

background I don't want to take too much

time but uh I'm a immigrant I came here

in United States from

Romania after the Communist uh curtain

fell and uh so early early 90s late 80s

early 90s early 90s got it yeah uh and

um you know I I was trying to get my my

foot on the ground here and learn a

little bit of the financial system I had

no idea what's going on I didn't know

what a credit or debit card means um so

I educate myself reading a lot of books

in the beginning and then what made it

out for me in real estate is um I set up

my uh my shop so to speak my my house

around Washington DC and I had a um an

opportunity to uh participate in one of

the I would say the first meetings

Robert kosaki had in Northern

Virginia uh was a webinar was a weekend

webinar and um I went there knowing

anything nothing about real estate um

and kind of open my my mind it was a

completely different approach like you

probably know by now he is well known of

kind of reversing the the whole your

house is not an asset that that kind of

thing yeah exactly and so what so this

would have been like the late 90s by

this time is that correct yes it was

late 90s um I think it was

2000 200 2001 something like that got it

yeah and um you know it kind of opened

my eyes and said you know this is

something that I need to look into and

that's how I started I start playing

Cash Flow game yeah I start networking

with people that were doing that and

little by little you know you you

educate yourself and you start investing

because the the main thing that I

realize is that like he said you need to

start doing things not only read about

them so let let me ask you a question

were did you immigrate to the states

already a doctor did you become a doctor

after you immigrated how did and were

you yeah I finished my medical School in

Romania um so I was technically a doctor

but nobody recognized me here as a

doctor so I had to do all kinds of bunch

of stuff when I came over um I had to

change my Visa to be able to work

legally and yeah um you know finally

found a residency position so I did my

residency in United States um learned

the language you know I mean it was a a

whole new planet for me at that time um

but I had nothing to lose right so it's

a it's a concept that I kept with me

over the years and the mindset that made

me um accomplish what I I accomplished

until now that is beautiful all right

well I love I love the back thank you

for sharing the backstory so what was

the first uh investment property deal

that you

did yes so um I want to have them both

bought a one-bedroom one b um little

house in uh Baltimore

okay and I rented out and I don't know

kind of semif fix it myself um you know

putting all kinds of you know painting

and all this stuff that you need to set

up a house or rental and that was my

first step towards real estate investing

and um at that time I had a little cash

flow over you know each month out of it

I applied exactly what Robert kosaki

phrased in that webinar in that meeting

over the weekend so it was nothing you

know I realized that it's nothing that I

need to in reinvent the wheel here I

just need to find the right people that

do the same thing I wanted to do and

replicate their well-proven recipe yeah

um and connect the with the more people

I can uh in that kind of business uh so

that's what I did this this was my first

house um I pay I pay cash for it I I

didn't even know how to leverage that uh

but it was an interesting start you know

I mean we all start somewhere that's why

I want I want to invite everybody to

kind of open this mind and say how can I

start investing in real estate there's

no rocket science uh this is not a

college degree you need to get or it's

not as tough as it's not as tough as

medical school yeah I mean you know it's

it's a it's an it's a all a mindset game

that that's all it is and the more you

network the more knowledge you have from

some other people or books or podcasts

or whatever realize that at that time

when I started doing this I had there

was no internet there was no Meetup

there were no barely any books I can

read about it um so there was all like

spread of uh worth Bic basically uh who

you know what they did talk to them it

was a person-to-person meeting

that you get to get the knowledge to

start doing this so it's a little you

know a little difficult to start in this

thing nowadays it's like piece of cake I

mean if you want to start you have every

single resource in the world that you

can apply well let let's take a look at

before and now well let's look at the

beginning let's look at now so you

started off with that one-bedroom one

bath house in Baltimore fast forward 20

some years later what does your real

estate portfolio look like today yes um

so right now um I have about uh 5,000

units in multif family apartment

buildings that I'm invested in

um from that probably around 800 of them

um are as a co- uh General partner so

I'm in the team I'm in the active

management of those

buildings and I also have still um a

couple of buildings in Baltimore that I

I manage myself and I you know it's kind

of a nostalgic thing I would say multif

Family Properties you still got that one

bedroom one bath house that you're yeah

no I I I sold all the single family

homes I accumulated over the years there

are probably around 30 of them and kind

of you know convert them to multif

family okay very good so we were talking

a little bit off camera before the

show about your passion for showing

other especially medical professionals

the light when it comes to to real

estate investing why do you think more

doctors and professionals like that High

um High income busy kind of

professionals are not involved in real

estate the reason they're not involved

in real estate is because I think um

they're scared about what they think

real estate investing is they think real

estate investing means oh I have a

tenant that's going to call me in the

middle of the night I need to uh take

care of his toilet and I need to paint

the walls and they don't have the key

and I need to go there in the middle of

the night to do some repairs and all

this stuff and it's not like that um you

know especially now uh you have property

management companies that can take care

of that you can hire you know a handyman

or help to help you with like day-to-day

operations and also there's this

beautiful

passive um Avenue that they have right

now where they can invest in in an asset

not being involved actively in it and

still get u a good cash flow in the

profits at the end so I think most

people need to realize that real estate

investing is not doesn't mean you need

to take a uh Mallet and a nail in your

hands and start building a house or

repair whatever the tenant said you need

to repair it's not like that um it can

be multiple ways it doesn't have to be

like that that's it doesn't have to be

like that um you know there are multiple

Avenues in real estate investing that

you can take and for me what worked I

started in single family homes and I uh

consolidate into multif family apartment

investing which I think it's a great way

to scale the business up and uh compress

the time basically that I have available

in my life to make the most out of my

money and my wealth and my uh Freedom

basically my Financial Freedom wonderful

I I love that

explanation so if somebody is a busy

professional a doctor what have you and

they want to kind of dip their toe into

real estate but they are afraid they're

they're nervous about that what

recommendations would you give to those

kind of people to actually make it

happen to to take that first step

because we because there's just there's

almost too much information out there if

you Google Real Estate you jump on

YouTube you chat GPT it you're going to

be overwhelmed with you know the

opposite of what you and I saw in the

early 2000s where there's hardly

anything out there now it's almost like

there's too much right so that's right

how what would you recommend somebody in

that position do yeah to get started so

I would say for a busy professional um I

would say you need to first of all ask

yourself what exactly you want from real

estate investing do you want cash flow

do you want to park your money and get

an appreciation at the end do you want

tax

advantages uh what what is your primary

why why are you doing thish then second

point would be what do you think you are

more comfortable to put your money in is

it more comfortable to maybe some people

you know uh want to uh Fix and Flip

houses some people want to invest in

short-term rentals and Airbnb their

property and just take advantage of that

Avenue uh some people still buy single

family home and they rent them long term

and they're very happy with that um and

some people go my route where you know

they put their money multif family it's

a scalable concept it's a much uh I

would say easy way to invest because you

have um a much better leverage of a team

to take care of your money is not just

yourself and um some people just do uh

you know funds or you know whatever they

they want to like invest in a fund for

example and you know they uh they don't

have much control uh of what's going on

is like stock market but um you know

it's what you you're comfortable with

and then from that point on you just

have to follow and find people that did

that before

you um there are many successful people

in each branch of real estate investing

you just need to network find the right

people and ask for advice and mentorship

and follow them and see how they do it

it's not a rocket science again you just

need to replicate the system um for

example you know one of the things that

I I did when I and I had experience in

single family homes over the years but

when I thought about multif family I

didn't think I I was very comfortable of

like migrating to that area and I got

myself a mentor uh right away and I

think I it was the best thing I ever did

um I learned a lot in a very short

amount of time um paying him because

that's you know that's what money do

they they U earn time and freedom for

you so I prefer to pay someone who can

tell me in a couple of hours what I need

to do instead of starting to figure out

myself over the years yeah um and that

was probably the biggest investment the

greatest investment I ever did because

your own Financial education is the

primary way you can get in real estate

investing yeah very very very well said

so are you still a practicing

doctor yes I I love to to still uh keep

my hands um busy with my medical

practice ice I I have two groups right

now that I I manage and um I still go

there for um you know a couple of days a

month um and you know I still have my

relationships um I don't want to lose

that part of my life ni but my primary

focus right now is in real estate

investing very interesting so what does

what does your real estate professional

life look like what what do you spend

most of your time doing with your real

estate investing business yes um well

I'm pretty busy right now because I have

about uh about several apartment

building uh deals that I'm I'm managing

um actively um not I'm not talking about

property management or deal General

partner management of getting them

correct up and running got it yes so um

most of them are in Texas um in the in

the Dallas Forth wor Houston area mhm

and I'm very busy with that um I have to

go there for you know side visits uh

keep uh you know weekly meetings for

with property management

companies um keep an eye on financials

um you know continually underwrite the

deals and see what works What expenses

are you know uh keep in touch with the

investors communicating you know almost

every month with them about all this

properties um it's it's a fun game for

me it it's something that I enjoy um

it's very exciting uh things are not

going well all the time because that's

life um but you find solution you you

pivot in different directions based on

the market and um you know it's it's a

it's an interesting

uh game to play I would say

wonderful perfect well time flies when

we're having fun here Dr franku so if

want to connect with you and and find

out more if you only had one place to

send them where would you recommend

people go to connect with you and find

out more about what you're up

to yes I think the best way to connect

with me is through my website um which

is uh um you know the name of my company

it's stellar

multifamily

uh.com and you can email me there you

can contact me there uh I'm also on

social media pretty well easy to find

Stellar multif family um and uh I'd be

happy to you know start talking to

people about different things that they

need to learn and educate themselves

well thank you very much for being on

the show and inspiring all of those busy

professionals who don't think they have

time to get involved in real estate you

have just proven that yes they can I

hope so thank you very much

all right everybody take care and we'll

talk to you on the next episode hey

there I really hope you enjoyed that

episode and as always if you want to

listen to more daily interview content

make sure You' subscribe and if you're

an active real estate investor and

you're doing deals and you'd like to get

featured on the show then just head over

to Dave interviews you.com now at money

partner formula.com we help Real Estate

Investors to create a process for

predictably getting Capital so they can

do more deals without relying on hard

money lenders or the bank

we do this by building them a private

Capital Marketing System now if you want

help tur yourself into a big money

Capital attraction machine then book a

call with our team to see how we can

help just visit money partner

formula.com to find out more all right

take care and we'll see you on the next

interview