The 6-letter acronym that helps a pharmacist manage their side business

  • Real estate investor Ryan Chaw makes $6,000 a month from his rental properties.
  • He uses the acronym ALLIES to manage his side job so he can work full time as a pharmacist.
  • It stands for: Agent, Lender, Licensed Contractor, Residents, Tax Expert and Supervisor.

However ryan chaw spends most of his professional time working as a pharmacist, earning most of his money from hustling: property investment. “I spend about an hour a week on real estate,” Chaw said, adding that number can vary by month.

He first became interested in investing in real estate as a way to build wealth while pursuing his full-time career as a healthcare professional. He bought his first property in 2016 and now owns six properties (and is actively seeking two more) across California that currently bring in around $6,000 a month.

Still, Chaw loves being a pharmacist and plans to keep his day job for now. For him, the key to managing both responsibilities is to keep real estate as passive as possible. Here he shares exactly how he does that.


The acronym he uses to minimize the hours he spends working in real estate: ALLIES

According to Chaw, the secret to passive real estate investing has less to do with the property itself than with the people involved in the operation. “When you start out in real estate, you want to build a team around you and rely on their expertise to help you grow your business,” he said.

In Chaw’s experience, this core team can be summed up by the acronym ALLIES. “It’s kind of silly,” Chaw said, but it works.

‘A’ stands for Agent

“You don’t just want to have an agent,” Chaw explained. “You want an agent who has worked with other real estate investors.” This means that when looking for new properties to acquire, the agent is better equipped to help them find exactly what they need in less time. “They’ll know what you’re looking for and how to handle the numbers.”

As an investor, the things Chaw looks for in a home are different from what an individual or family might want for a property they are buying to live in full time. For example, details like granite countertops or crown molding may be important to a family or couple, but they won’t add much value to a rental property. Chaw, on the other hand, is often looking for square footage to add extra bedrooms, proximity to a school campus, and the amount of cash flow he can expect.

“Having a real estate agent who really gets what you’re looking for as a real estate investor is very helpful,” he said. “If they are investors themselves, that’s even better.”

‘L’ stands for lender

Finding the right lender can make a big difference in the amount of cash flow a property can generate each month or year, so it’s important to do your due diligence. “Usually I talk to at least three different lenders to see what kind of terms they can get me,” Chaw explained.

Then he will use quotes from other lenders to negotiate the best possible rate. “I’ll say, ‘I have a lender who gave me this type of loan, and it’s much better than the loan you offered me, can you beat that? “”, Did he declare. This kind of upfront work means he gets the most out of the properties once they’re in his name, which increases cash flow and allows him to focus on other things.

‘L’ means licensed contractor

As the owner of all properties, Chaw is responsible for any repairs or updates that any of his homes may need. Knowing the right people to call – and knowing they can handle any issues – makes it easier for Chaw to stay focused on his personal life and work obligations as a pharmacist, even when there’s a problem in the workplace. one of its properties.

“I generally recommend having two types of contractors,” he said. The former can act more like a handyman. “Maybe the toilet broke down, for example, and I’ll get it fixed,” he said. The second contractor should be able to handle larger renovations, such as roofing or adding extra walls and rooms. “The guy who put up walls on my very first house is the same guy who put up walls on my other houses,” he said. After establishing a good working relationship with these contractors, Chaw said he didn’t have to oversee projects and spend time researching people to hire.

‘I’ stands for locals

“Your tenants are part of your team,” Chaw said. It begins by carefully vetting potential tenants to make sure they will respect the home and pay the rent in a timely manner. Chaw primarily rents out his properties to students and said, “I generally look for students who demonstrate professionalism.”

While it’s important to ensure tenants will be responsible and respectful of the property, Chaw also has systems in place that allow its residents to resolve certain issues on their own. For example, in the event of an internet outage, tenants know exactly what number to call, what name to give, what the account number is and any other relevant information. “It basically allows them to resolve issues with the agent online rather than calling me and I have to be the middleman,” Chaw said.

‘E’ means tax specialist

“I think it’s really important, especially if you have two or more properties, to get a tax accountant as soon as possible,” Chaw said. Not only does this mean spending less time this tax season filling out and sorting through paperwork, but it also means the adjuster can help them find any tax-deductible expenses. “Tax law is very complicated,” he said. “Rather than trying to learn everything myself, I want to go see someone who has studied it all their life.”

‘S’ means supervisor

The final piece of the puzzle, according to Chaw, is the property supervisor. “That can mean either self-managing or hiring a property manager,” he said. Either way, there must be someone who can oversee day-to-day operations.

While a property manager would make the operation even more self-sufficient, Chaw prefers to do this job himself. He enjoys promoting properties and speaking with potential tenants, so for now it’s a responsibility he’s happy to take on. “It would definitely be harder to do if I didn’t have these other systems in place,” he added.

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