February 24, 2020
What Do I Do If I Also Own the Building?
As if dealing with the transition of your dental practice isn’t enough, but what if you also own the building under which your business operates? The good news is there is no right answer. Here’s how to decide what’s best for you and your dental practice.
Know your options
Because some buyers will not want to add the cost of purchasing a building along with a dental practice, this could increase the timeline of your sale. But, many buyers like the idea of owning their own real estate and will try to accomplish both sales at the same time. When real estate and professional practices are combined in a single transaction, the values of both can be maximized using a couple of different strategies.
One option to consider is to keep the building and have the buyer sign a long-term lease that you collect on for years to come. This works if the seller is looking to retire but also collect extra income. The buyer can also have the first right of refusal on the building in which they have the option to buy it in the long run rather than right away with the purchase of the practice.
Put it on the market
If a sale of the property is in your future, you have the option to sell the building at the same time as the practice transition. Or, the seller may choose to market the property to an institutional buyer and have their buying power as a large organization to build the value of the building to be sold on the open market to another investor.
Contact the experts at Professional Transition Strategies to decide whether it’s in your best interest to love it or list it.