Why Real Estate is Best Alternate Income Source for Dentists

Dentists all over the world are aware that both dental school as well as private dental practice are expensive investments. You require a large capital to avoid drowning in debt. Most of the earnings from the clinic go towards loans.

A solution to financial woes is investing in real estate. Real estate investments for a dentist are exceptionally beneficial. The primary reason is that if you lease your office from someone, you’re paying them rent. Along with that, you’ll make modifications to the space according to your requirements which usually cost a lot. These modifications will be a waste of money for you if you decide to close or shift your practice.

The first step to investing in real estate as a dentist is to purchase or mortgage your clinic. The mortgage that you owe will be almost equivalent to the rent you would pay for leasing. Paying off the mortgage also allows you to build your equity in your property. Another benefit of owning the property of your private practice is that, when you retire you can easily sell it to the highest bidder and build a great retirement nest egg.

If you have a larger property, you can divide it into parts and lease them off to tenants.

There are many benefits to real estate for dentists, some are given below –

Cash In-flow

If you’re able to rent out the property, even a small section, it will ultimately lead to a boost in your finances allowing you to live a comfortable life.

Equity

As you continue to pay off the mortgage, you gain more equity on your property and will eventually own it.

Profit

Real estate investment is usually a profit building machine, specially if your property is in the busy part of the city or an expensive area of the city. As the prices of real estate go up, you’ll be able to enjoy a larger profit.

Invest small, gain more

Even if you pay only 10% of your initial price for the property while the bank pays the rest, real estate prices usually experience a steep incline. Even as the market value of the property rises, your mortgage remains the same.

It isn’t necessary to just invest in commercial real estate. A dentist can invest in residential areas that see an influx of tenants like area near college campuses. For the sake of convenience, safety and comfort, students and their parents are willing to pay a lot of rent. This will result in a very profitable investment.

However, there are certain things that must be kept in kind before investing in real estate, some are given below –

1. Choose a good location. Ensure that the area where you are investing in has been profiting in the last few years. Dentists tend to not focus on the business aspect and incorrect investment in real estate for a dentist could lead to major losses.
2. Financing the property is a crucial step. Do substantial research before choosing a lender. As each lender, both private and banks have varying interest rates, choose the one that fits your budget.
3. Plan the property space well. It could be planning your clinic or diving the property into pieces for leasing. Ensure that your floor planning will profit you.

Freedom Founders offers help with retirement for dentists, orthodontists, doctors, physicians, and other practice professionals. David Phelps helps medical professionals creating passive income through investing in real estate (freedomfounders.com/Dentist-Real-Estate). To know more, visit https://www.freedomfounders.com/blog/.

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