Meet the Author of ‘Why Doctors Don’t Get Rich’ – Dr. Tom Burns

At a physician real estate conference last month, I had the pleasure to have some good one-on-one time with Dr. Tom Burns.  Dr. Burns is the author of Why Doctors Don’t Get Rich, a book that was written to give hope and guidance to those who want to create the life they desire.   (which was the basis of my recent article entitled ‘Why Dentists Don’t Get Rich.

Dr. Burns is an example of someone who continued to happily practice on his own terms for many years, but was able to lead, influence, and live a fulfilling life while doing so.   He has Robert Kiyosaki and Sir Richard Branson among his personal friends. 

A former orthopedic surgeon in Austin, Texas, he has over 25 years of real estate experience, both locally and internationally, involving multiple asset classes.  He bought the very first copy of “Rich Dad, Poor Dad” at a car wash owned by the subject of ‘Rich Dad’ Keith Cunningham (whom I had the pleasure of learning from recently – the subject of a future post).  Dr. Burns also heads a peer group mastermind of high net worth investors, entrepreneurs and executives. 

His beginnings were modest. His first real estate purchase was a dilapidated home with a cell tower next to the garage. Although the rent on his first rental property wasn’t substantial, the cash he received from AT&T made the property a wise investment.   

He also acknowledges that he has made a lot of errors over the years, but he has always learned from them. He eventually worked with partners to construct a hospital as well as sizable residential complexes.  

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He outlined key principles of investments, partnerships, and life in general, broken into 5 key categories.  Here are a few valuable pearls that I learned from him. 

• When making decisions to partner or invest, always think about your FAMILY’s interests first. 

• Don’t do a good deal with bad people.   Know exactly who in the deal is doing what.  Vet the people heading the deal, and look at their ethics and capabilities.  

• Seek and surround yourself with those who lift you up and grow with you. 

• Profoundly understand exactly what you are investing in, how it works, or how it will make money and get its returns. 

• If you can’t understand it, then invest with or partner up with someone you KNOW, LIKE, and TRUST (see the section on people). 

• Know how much are you going to make, and know-how or whether it will move you forward towards your goals. 

• Rules are rules until you make a mistake, then it becomes a LESSON. 

• Like a casino that generally favors the house, investing in the stock market generally favors Wall Street more than the investors. 

• Unless you are invested in the startup or initial public offering phase of a company, most of the fortunes made on Wall Street are already made before they become publicly traded stocks. 

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We as doctors or other professionals can learn a lot from Dr. Burns, and attain the life we desire while continuing to engage in our practice or vocation on our own terms. 

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Other notes from Tom Burns 

People 

• Don’t do a good deal with bad people. 
• Vet the people heading the deal, look at their ethics and capabilities. 
• In the end, think about your FAMILY’s interests first. 
• Seek and surround yourself with those who lift you up and grow with you. 

Deals 

• Profoundly understand exactly what you are investing in, and how it works or will get its returns.   
• If you can’t understand it, then invest with or partner up with someone you KNOW, LIKE, and TRUST (see the section on people). 

Money 

• Know the equity (or ownership) structure of the deal, which is yours’ or the investors’. 
• Debt – there is always money available from sources, whether they are banks or private lenders. 
• Know how much are you going to make, and know-how or whether it will move you forward towards your goals. 

Structure 

• Who in the team is doing what in the deal? 
• Know the liability structure and whether you are protected. 
• Who gets paid first? 

Rules 

• Rules are rules until you make a mistake, then it becomes a lesson. 
• Like a casino that generally favors the house, investing in the stock market generally favors Wall Street more than the investors. 
• Unless you are invested in the startup or initial public offering phase of a company, most of the fortunes made on Wall Street are already made before they become publicly traded stocks. 
• Know the rules in the jurisdictions you are investing in.  For instance, in real estate, while Texas’ laws favor landlords over renters, California has lower property tax rates than in Texas. 

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If you want to talk about how you can build and preserve wealth and generate passive income like the ultra-rich, set up a time to talk with me.