Dr. Jill Green, a family practice and emergency medicine physician, faced a staggering financial reality after completing her medical education: approximately $1 million in student loan debt. Today, she is debt-free and has a net worth of $3 million, a transformation she credits to a disciplined real estate investment strategy that began with an unconventional source of funding.
Starting with a net worth she described as "negative $1 million," Dr. Green leveraged an educational course and a loan from her own retirement account to purchase her first investment property. This initial step launched a journey that has seen her add one property to her portfolio each year, systematically building wealth and achieving financial independence.
Key Takeaways
- Dr. Jill Green transformed her financial standing from a negative $1 million net worth to a positive $3 million net worth since 2019.
- She initiated her real estate portfolio by taking a loan from her 401(k) to fund the down payment on her first property.
- Her strategy involved adding one rental property per year, steadily building passive income and equity.
- An initial investment in a real estate course led to a $40,000 tax return, which funded her subsequent investment.
Facing a Mountain of Debt
Upon finishing medical school, Dr. Green's financial position was precarious. The immense weight of student loans left her with virtually no assets besides her primary residence. "My net worth was negative $1 million," she explained, a common situation for many highly educated professionals who start their careers with significant educational debt.
The turning point came after she attended a virtual entrepreneurship event for doctors. A physician couple, Kenji and Leti Asakura, shared how they used real estate investing to create additional revenue streams, enabling them to reduce their clinical hours and travel extensively. Inspired by their story, Dr. Green decided to invest in her financial education.
She enrolled in their real estate course, which cost approximately $2,500. Despite her negative net worth, she viewed it as a calculated investment. "I was like, if we even get $10,000 back in our taxes next year, the course will have paid for itself four times. It seemed like a no-brainer," she said. The investment paid off quickly; the tax strategies she learned resulted in a $40,000 tax return the following year.
The Power of Financial Education
Dr. Green's story highlights the impact of targeted education. By investing in a specialized course, she gained knowledge on tax efficiencies and investment strategies specifically for physicians, which provided the seed capital for her first major real estate purchase.
The First Unconventional Investment
With the knowledge from the course and a significant tax return, Dr. Green was ready to buy. However, she still faced a common hurdle for new investors: the down payment. "We didn't have $200,000 sitting in a savings account," she noted.
The solution came from a place many consider untouchable: her 401(k) retirement account. Initially, she was hesitant. "I had heard of people taking money out of their 401(k) as loans before, and my thought was, 'Those people are irresponsible. You don't touch your retirement account,'" she recalled.
Understanding the 401(k) Loan
The course had clarified a crucial distinction between a withdrawal and a loan. A loan from a 401(k) does not trigger the early withdrawal penalties and taxes associated with cashing out retirement funds. Instead, the account holder borrows from themselves and pays the interest back into their own account.
"It's essentially taking a loan from yourself, and you're paying the interest back to yourself. Your retirement account doesn't get touched, and there are no tax implications."
Dr. Green and her husband took a loan from their 401(k) to help fund the down payment on their first investment property, a medical office building. They secured favorable terms with an SBA loan, locking in a 4% interest rate with a small down payment requirement. The loan repayment was structured over five years and automatically deducted from her paycheck, amounting to about $200 per pay period. "It wasn't anything that we felt as a family," she said.
A $4 Million Swing: Since beginning her real estate journey in 2019, Dr. Green's net worth has increased by approximately $4 million, moving from negative $1 million to a positive $3 million.
Building a Portfolio One Step at a Time
The first property was the crucial first step. Overcoming the mental barrier of using retirement funds was significant. Dr. Green noted that even now, other physicians question her decision. "I've used that strategy more than once, and I've now become quite comfortable with it," she stated.
Her approach has been consistent and methodical: add one rental property per year. This gradual scaling has allowed her to build a robust portfolio without overextending her finances. The strategy has proven powerful enough to completely eliminate her student debt and build substantial wealth in just a few years.
Dr. Green believes this path is more accessible than many professionals realize. "Most people have a 401(k) because we've all been told to save for that, so most people have access to some capital that they can borrow from," she explained. She argues that real estate has a unique power to amplify one's financial position and create security.
Advice for Aspiring Investors
For those starting from a position of financial scarcity, Dr. Green advises that the most difficult part is taking the first action. She encourages people to start small to build momentum and knowledge.
- Start with free resources: Watch YouTube videos or listen to podcasts about real estate investing.
- Explore the market: Browse property listings on sites like Zillow in your area to understand prices and opportunities.
- Consider formal education: A course or workshop can provide structured knowledge and actionable strategies.
Her core message is about the importance of getting started, no matter how small the step. "Just start somewhere," she advised. "The difference between 0 and 1 is infinite... if you can just start somewhere, it literally doesn't even matter where, then you're already infinitely farther ahead than someone who never starts at all."
