This thread is incredible. Thank you!
I'm a 4th year DS whose eventual goal is to own a practice (I'm considering after 2 yrs depending on the market and my preparedness) and wanted to get some feedback on what I had in mind. Although I'd like to work as an associate under a senior dentist after graduation, as a newbie, I know I need to build up speed to match the level of the real world clinic demands, so joining corporate dentistry initially doesn't seem like a bad idea.
Here's some background and dilemma...
Ideally after 2 yrs, I would like to buy an existing practice. Financially, I pay off my CCs every month, no car loan, the last I checked, my FICO was in the upper 700s, and the only debts (albeit massive) are my student loans and my home, which I have some equity in. And before DS, I was disciplined in saving and investing, so once I rejoin the workforce, I know I can show the banks cash reserves. Here's my dilemma...
There is a piece of commercial real estate, about ~1400 sf, that used to be a restaurant that may be a good prospect for a dental practice. It's right in front of a busy highway for visibility and in a good location. Drawbacks: no parking/street parking only, plumbing and electricals will likely need to be redone, and a complete interior remodel is needed to remove the kitchen, the bar, and tear down some walls to make room for operatories, front desk, waiting area, small office, and maybe even a mini-lab if sf and the layout permits. Another drawback is that there are a couple of dental clinics within a few mile radius from the spot. And I'm not sure if there are any legal limitations, but I don't believe there are any as far as I know now.
It seems like more trouble than necessary given there are other alternatives available, and if I'm not looking to buy for another 2 yrs, why am I racking my brain over it now? Well, the property has value to me and my family. My parents spent over a decade before I was even born making payments to buy that restaurant before we immigrated to the U.S. My first job technically was at the restaurant when I was 13
. The restaurant helped my parents buy our first home, send my eldest brother to college (1st in the family), buy our first "luxury car" which my dad has been driving for well over 2o yrs and we've made a lot of memories there. I have 2 older brothers. My parents never wanted any of us to enter the restaurant business...they didn't want us to work as hard as they had to. The only person who was remotely interested in the restaurant was me. They have since retired and the building had been leased out, until recently.
About 15 yrs ago, I made a deal with my dad. I asked him to sell me the property 10 yrs down the road. He laughed at me, but agreed as long as it was at fair market value and that all tax obligations are paid for by me. There's no free ride with my father
. So I wrote a contract, both of us signed, and my mom signed as a witness. Well, it's been 5 year past the contract deadline and I obviously wasn't able to follow through on the deal because my income now is $0 the last I checked...well, $negative.
I recently learned that my parents have been having challenges in managing the properties (there are small attachments to it). They speak very little English and so my eldest brother has been helping them but he's getting busier with work that my parents rather not bother him with it any more. So they told me they're considering selling it soon. But I know deep down, they know they'll regret it. My parents are attached to the restaurant and as am I for aforementioned reasons. So I started thinking...wouldn't it be great to have the youngest, whom my parents didn't really expect to even go to college, become a dentist and purchase what her father started? After all, we sort of have a contract
. Why not build a dental practice on it? And perhaps convince them to postpone the sale and I'll take over managing the properties/tenants for 2 yrs until I'm ready.
But this is a huge decision that if I choose to go down that path, it'll require massive planning. How much will all the renovations cost? Is the layout even viable to serve as a dental clinic? Any permitting concerns? Will the bank loan me to buy the real estate AND money to build a practice with only 2 yrs under my belt? What's the potential patient population given the other nearby dental clinics? Will the limited parking be a major deterrent for potential patients? Will the layout allow for 3 operatories (I was thinking 1 dedicated to hygiene and another for potential associate or myself)? Will I generate enough revenue starting out to keep up with the bills? Do I need to go door to door to build my patient pool? These thoughts took seed very recently so I know I have a lot of research to do, but I thought I'd start here. I know there's a wealth of knowledge here, and I welcome all!
Has anyone started their own practice from ground up? Or know of someone who has? What was your or their experience? Major considerations? I know I'm lacking relevant data but overall, does this like a terrible idea at face value? I know times have changed and the variables may not be comparable today, but would like to get some feedback.