In the last article, the many benefits of owning your practice were explained. Here, I will highlight the second and third steps in weighing the pros and cons of whether to own or lease your commercial real estate space.
Second Step: Learn About Today’s CRE Market
Since the recent real estate downturn, individuals and businesses are more cautious about real estate investments. Prudent investors are taking steps to learn about their current market climate, ensuring the best investment for the long term.
Traditionally, real estate decisions have hinged on desirable locations. In today’s CRE market, decisions should also include timing as a key ingredient. If you can secure your mortgage at historic low rates, you pay less in interest. You can search for local CRE properties online, but you should realize that not all available properties will appear. The best choice is to work with a local commercial broker who knows your area.
Third Step: Assemble the Team
⋅Navigating the labyrinth of loan options and finding the perfect building or location can be overwhelming. No matter, whether to lease or buy, is the best choice for your practice; plan to surround yourself with experts who can assist in making the right decision. The following is a list of experts who specialize in these decisions:
⋅Demographic consultant: Invest in this resource to learn the composition of the area: How many dental practices exist locally? Who is your competition? Who are your potential customers? Once armed with this information, you can embark on your search for the perfect property location.
⋅ Accountant: A certified public accountant can help determine what your practice can afford and familiarize you with tax benefits.
⋅ Commercial broker: This team member helps you locate potential properties. Find your local realtor board at www.realtor.org to choose professionals with area expertise.
⋅ Attorney: Engage your attorney if you need help with property negotiations.
⋅ Commercial lender: This team member guides you through financing options. Your best bet is to choose a lender that specializes in dental practice financing. A dental practice financing specialist will understand your specific needs and can dive deeper into your balance sheet to help find the best terms. With this type of specialty lender, you might even qualify for 100% financing, which goes a long way toward making your dream a reality.
The decision to buy or lease is one of the most vital you will make as a business owner. Arm yourself with details and expert opinions to make an informed decision and get your business off to a great start.
JP Blevins joined the Live Oak Bank team in early 2011 and initially spent much of his time educating young professionals about financing and how to best maintain and grow their business. Assisting healthcare professionals in achieving the “American Dream” of ownership, JP is a Loan Officer and General Manager working exclusively with the dental and medical community nationwide.
JP can be reached by phone at 910.796.1674, or email firstname.lastname@example.org