Helping students, residents find or sell a home

Making sidelines pay

Doctors who branched out beyond running their practice tell why they did it, how they did it, and what you should know before you do it.
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Name: Rahul Gokhale, MD (link)

Specialty: Orthopedic surgery

Location: Downers Grove, Ill.

Company: Resident to Resident Real Estate, a Web-based business that helps match medical students, residents and fellows looking to sell, buy and rent real estate. The Web site is free to use and is supported by advertising (link.

Why he started the business: Dr. Gokhale completed his residency at the University of Cincinnati in June 2006 and moved to Birmingham, Ala., for a fellowship. Like many of his colleagues, he was nearing the end of his medical education with a heavy debt load, and when he prepared to leave Cincinnati, he needed to sell his condominium.

Although the new class of residents would seem to be a ready-made market, Dr. Gokhale couldn't find a buyer. After trying craigslist.com, putting up flyers around work and hiring a real estate agent, he spent 14 months paying both rent in Birmingham and a mortgage in Cincinnati.

He estimates he lost more than $40,000 from the cost of the mortgage, the difference in purchase and sale price, utility bills and real estate agent's fees.

Dr. Gokhale knows the real estate market is full of nightmare stories from people in all walks of life. But his dilemma made him wonder why there was no organized way for doctors in training to buy, sell or rent real estate to each other, considering they would have common needs.

"I just thought when you're at a medical center and there's predictable turnover every year, there should always be eager buyers," he said. "I figured setting up a Web site would be the best way to advertise the outgoing residents' real estate."

Annual revenue: Since going national in August 2008, Dr. Gokhale has made about $1,000 from the site, mostly from advertisers.

Why he continues to practice: He enjoys his work, which is focused on sports medicine, specifically knee and elbow arthroscopy. Dr. Gokhale said his goal is to help young physicians in the same situation he was in avoid losing money from unsold property.

"Residents and medical students are pretty cash-strapped," he said. "If we can even save them the real estate agent's fee, that's maybe 6%, and that's pretty hefty."

Words of wisdom: "Start-up costs can be pricey," he said. "You definitely have to clearly think it out and prepare a business plan, present the idea to others and find a mentor." Dr. Gokhale said he took advantage of resources from the Small Business Administration and SCORE, a group of retired executives who volunteer to help young entrepreneurs.