Why is Owning Your Office's Real Estate Vital to Your Financial Freedom?
Recently, we interviewed several dentists who owned their own real estate, and others who did not. The difference in their financial situation was dramatic.
One dentist partnered with a group of dentists who bought an office building 20 years ago when they started to practice together. He recently sold his practice for $3 million.
Meanwhile, the group that he was part of sold the building for $18 million!
On top of that, they made well over $2M more, for a total in excess of $20 million, after they considered the tax losses generated by depreciation and the additional income they received in rents and reimbursement for other expenses that were paid by the dentists and other tenants during the time that they owned the building.
In another example, two dentists sold their practices for the same selling price of $600,000.
The one who didn't own the building will most likely work as an employee for the rest of his life, and he will work harder than he ever had to when he owned the practice.
The other dentist sold the building he owned for an additional $600,000, then he put his cash in his own bank, where he invested it and doubled it twice over 10 years.
As a result of his wise financial planning, he now has over $4 million to live on comfortably for the rest of his life. He is financially free because he owned the real estate.
When it comes to rent money, it’s better to receive than to give.
Dentists make great tenants. They invest in equipment and all kinds of improvements to the office, which makes it highly unlikely that they’ll ever move out.
Would you rather be the dentist who gives the rent payments, or the one who receives rent payments from other dentists?
If your office is in a shopping center, as traditional DSOs often recommend or even require, you will probably not receive the rent that your office pays to the landlord.
That means the value of your practice diminishes as your real estate expenses increase and reduce your profits.
But if you’re the one who owns the office building, the value of your assets will increase as the building appreciates and you find ways to increase the profit of the practices that rent office space in your building.
This doesn’t have to involve a lot of extra work or expense.
With an Un-DSO management company, you can have the services of a property manager who will run the building for you, as well as a hedge fund that will help you to acquire more buildings and practices that will bring you more money when you sell them in 5 to 10 years.
You can also increase your profits by investing in a dentist-centric Hedge Fund, which gives you a 10-15% annual return on investment. At 15%, you can double your money every five years!
Do you want to be the dentist who sells your practice for $3 million and has to keep working, or the one who owns the building and sells it for $18 million? We’re sure you can do the math!
Are you ready to own your real estate and create your path to financial freedom?
Our Un-DSO real estate and financial freedom experts will be happy to help you. Just click the button below to access our scheduler and book your free consultation.
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