This 5 part educational series will begin with the advantages of owning commercial property. Please follow us in the coming weeks to learn about the additional benefits of being a property owner.
Most business owners eventually confront the question of whether to purchase or lease their office space. There are many factors to consider in making this important decision. For new dental practitioners who are uncertain of future space needs and want to ensure maximum cash flow as they grow their business, leasing may be a wise option. But for new or seasoned practice owners with a strong financial profile, a clear picture of future growth, and the ability to take advantage of the tax benefits of ownership, a commercial real estate purchase can provide a solid foundation for growing the business.
Cash Flow Opportunities
If you purchase commercial property that has space for tenants, you have opportunities for additional cash flow through rental income. You might use tenant income to help pay down the property purchase, thus offsetting the cost of your investment. It’s important to remember, though, that having tenants entails property management responsibilities that may detract from attending to your practice’s core business of treating patients.