All Forum Posts by: Carlos Santiago

Thank you all for the great responses. I think that it does make sense to be free and clear of all debt before beginning the process of investing. I hope to be able to regain the money I'll need to get started quickly! Thanks again! Nik Parks Ned Carey ANISH TOLIA Lucas Smith Mary Joe

Hi Bill. Thank you for taking the time out to provide such valuable advice. I have some rather good news. Looks like the seller has decided to come down drastically off of what they were asking for and accept $100,000 as the price. Obviously, this changes the deal drastically and I think it's something that I may bite.

I don't think that i'd be able to find a better deal than that. Let me know what you think if you have a second.

Thanks!

I've also been practicing for over 20 years. As I mentioned, I have an established and loyal patient base. The location of this facility is 3 blocks from where I began my career, so I have a lot of old patients in the area that would be coming back. It's also near a community that I have a cultural connection with. I'm currently renting a small office that's charging me almost $2000 in rent so I can transition those patients over to the new site and get it generating revenue quite quickly.

The site i'm interested in is asking for $5100 a month in rent for the entire facility. In an NYC market, $5100 a month for 2000 usable square ft along with a 4 car parking garage is very reasonable in my opinion.

Thanks for the replies!

It is indeed generating profit, however, what is truly drawing me in is the ability to pretty much start fresh. I don't really need to purchase any additional supplies other than what would be needed to perform my basic duties (I'm an oncologist so wherever I go i'll need to buy supplies specific to my practice). To me, it's like purchasing the property at a fraction of the price because i'm getting the long term lease, the ability to generate revenue from whoever else I rent out to, and the ability to implement and build my own business.

The property owner has specified that I do need to buy out the current business and those will be the lease terms I receive. To give you an idea of the market i'm in, another piece of real estate which included a cardiology business along with the purchase of the property is asking 1.7 million. In this deal, I pay 260k, get a 20 year lease, ability to resale business down the line and the right to basically start fresh, along with the many additonal intangibles that it's offering.

I suppose what i'm looking for is guidance to determine whether or not it makes sense to buy out a business to receive that type of lease. This is in NYC just to give you a better idea of the market.

Thanks again!

Hello.

I'm a board certified doctor in the NY area looking to open up another location.

I found a place that seems to be offering a good deal, but I would like the help of others to help me analyze the specifics and provide their opinion.

So, the place i'm interested in is a doctors office in great condition, a great location, 2000 usable square feet, 3 additional doctors offices not including mine, 4 car private parking lot, and is near a community that I want to specifically cater to. It also offers a lot of intangible benifits.

The owner of the property is willing to give me a long-term lease (20 years) with a 4% increase on rent that is substantially below market price. Also, I get the ability to sub-lease and with the extra space, I have the potential to work there rent free. I've given the lease to my lawyer and all seems to be quite fair.

Now, here's the issue. This is the purchase of a business. The current business owners were running some medical practices I do not wish to continue. The contract of sale will give me the right to determine who can continue to work there. I do not wish to continue running the type of medical business that's currently in place and instead wish to implement and build my own business and rent out the facility to my own colleagues. I have a dedicated patient base and I currently rent out a small office not too far from the location so I don't doubt that I can get patients in there quickly and start generating revenue. The issue lies in the fact that in order to get the rights to use the property, I need to purchase the business from the current business owners. However, with no intent to continue running that type of business, I would essentially be buying something that will not be generating any sort of revenue, atleast to begin with. On top of that, I don't expect to be up and running right off the bat, so there will be atleast a few months where i'll be paying rent as well.

The price the business owners are asking for is below market. I also get the right to implement whatever type of business I want with the ability to sell it down the line when I near my retirement. Knowing the market, i'm sure that I can sell my business for substantially more than what I'd be paying to purchase the current business. However, I just don't know if I can justify paying 250k+ for a business that will not be generating me any sort of revenue to begin. There's so much potential here, and the property offers A LOT of intangibles, but I would really appreciate some advice on whether or not this sounds like a good deal to you guys.

Thanks!