Dental Dilemmas in Real Estate

When Buying Commercial Property, Dentists Should Think Ahead

dental lease advocate Lewis GelmonSpecial Lease Feature by Lewis Gelmon

Should you lease or buy? This debate often arises from the same question that motivates people to buy a residence: “Why am I paying rent and not paying down a mortgage instead?”

The realities that drive residential property values are very different from those that create or eliminate the value of owning commercial property. Consider this: banks (being risk-averse organizations) typically won’t lend money for the purchase of commercial real estate with less than a 40% down payment. Compare that to as little as 5% for residential purchases.

The main difference is that commercial property, unlike residential property, is valued primarily on a capitalization rate of its rent-producing tenants. Despite a strong revenue stream from a building’s tenancy, there are other social, geographic, and infrastructure issues that can greatly affect a commercial property. These include:

  • construction of new roadways,
  • changes in traffic patterns,
  • opening of new commercial developments that shift retail markets,
  • access restrictions or reduced visibility to the property, and
  • changes in purchasing demographics.

There are three typical property ownership scenarios that dentists seem to purchase. They are:

  • buying into the ownership group occupying space in the same building,
  • purchasing an office condominium, or
  • purchasing a free-standing building and converting it into a dental office.

Buying into the ownership group of an office building can be problematic. Due to the split ownership, you probably won’t be able to control your investment. As a result, it will be more difficult for you to liquidate your ownership or even borrow against it.

Ownership groups of medical buildings can also be fraught with politics of the tenants. As an example, consider the dentist who became a minority owner of the building he was in. This dentist was denied dividends (and even the right to sell) because the other majority owners, who happen to be orthodontists, felt that they did not receive enough referrals from the dentist over the years.

Purchasing a dental or medical office condominium is the most risky because it is unlikely you will be able to sell the property to anyone other than a dentist or other doctor. When you are ready to sell, the volume of your potential successors is lower compared to tenants looking to lease. The outcome is that your property could be at risk of devaluation.

Purchasing a free-standing building and converting into a health care practice is the least risky route. If you buy the building in the right location, you’ll be more able to sell it to others unrelated to medicine or dentistry. Stand-alone buildings also have much greater appeal to retailers and other businesses due to visibility and parking.

If you’re truly interested in purchasing revenue-generating property, you will probably do much better owning a residential apartment, duplex, triples etc. where you receive simultaneous benefit from revenue generation and property appreciation.

Looking for more information on the topic? You can reach Lewis Gelmon at (760) 479-9704 or lewis@lewisgelmon.com. For only $495, he will personally review your lease. Plus, get a $200 discount until October 31 just for mentioning The Wealthy Dentist. All reviews are guaranteed. If you don’t feel you have received the value, he’ll give you a full refund, no questions asked.

Lewis Gelmon is a former landlord, lease negotiator, and shopping center manager. Now a dental tenant advocate, he regularly lectures for dental groups across North America and the UK. He is the most published author on the subject of dental lease negotiations. His Good Leasing Guidelines for Dentists have been critically acclaimed by numerous dental groups. His mission is to raise awareness among dentists on the risks hidden in their office leases.

The 2010 State of Dentistry Address

Jim Du Molin's 2010 State of Dentistry AddressIn Jim Du Molin’s “The 2010 State of Dentistry Address,” he discusses how the #1 problem facing President Obama is the same as that faced by dentistry.

“2010 has arrived,” Jim says. “While the president talks about the state of the union… what about the state of dentistry?

The 2010 State of Dentistry AddressIs dentistry stuck in the same hole as the rest of the country?” he asks.

Pretty much, folks,” he continues.

“Our surveys tell us that the average dental practice production is down from 15% to as much as 50%…

“But the real culprit is unemployment.

“The President tells us that unemployment is at 10% nationwide and our country’s #1 problem. But if you dig deeper, looking at all the numbers… the real unemployment number is closer to 17.5%.

How does this translate to dentistry? Roughly speaking, this 17.5% – and all their family members – are out of the dental market, unless they are in pain… at which point they turn into an emergency appointment, one that does not convert into a full treatment plan, because they don’t have the money!

“If dental implant, cosmetic dentistry and braces patients have been a little scarce lately in your practice… it’s simple. These are highly discretionary services. No one is in pain here, and money is tight.

“Now at this point, as a dental management guru, I’m supposed to kick your tush and tell you to get out there and spend some money on marketing for new patients.

“Well, I’m not going to do that.”

Want to know what Jim suggests? Just go to www.TWDU.info to view the video and learn more.

Dentists Prefer Outside Financing (video)

Dental financingThe average dentist offers patients outside dental financing options, we found in this survey of dentists.

Most dentists these days don’t offer their own dental financing, relying instead on dental credit cards and outside dental payment plans. “We’ve never offered inside financing,” said one prosthodontist. “We don’t want to deal with any problems, so we farm the financing out.”

“I wouldn’t be able to sell all the cases without dental financing,” said one dentist.

Read more: Dental Financing: Outside Is Better Than Inside

Dentures: Do General Dentists Need Prosthodontists? (video)

Dentures: Do General Dentists Need Prosthodontists?As we all know, prosthodontists specialize in making dentures, but many general dentists offer in-house dentures too.

Some dentists feel that referring denture patients out to a prosthodontist is unnecessary.

One New York dentist said, “Having made thousands of dentures over the years, I’ve never referred a denture patient to a prosthodontist. I have, however, received denture referrals from prosthodontists!”

The Wealthy Dentist conducted a survey of dentists to see if they offer in-house denture services. 94% of the dentists surveyed reported that their dental practices offer in-house denture services for prosthodontic patients.

Click on Play to watch the video and hear what dentists are saying about dentures –

Does your dental practice refer out to prosthodontists?

Cosmetic Dentistry Trends: Who Else Wants Child-like Crooked Teeth on Purpose?

Japanese Girls with Crooked Teeth as shown on YouTube

Japanese girls with crooked teeth as shown on YouTube

The Internet is abuzz with the latest apparent cosmetic dental trend in Japan called Yaeba, where teeth are purposely made crooked so women appear more child-like.

This popular Japanese cosmetic dentistry procedure involves attaching non-permanent adhesive mini-fangs to canine teeth.

Yaeba means double tooth in Japanese and is a sought-after treatment at upscale dental salons in Tokyu’s Ginza neighborhood, where women have been flocking to have this dental procedure, according to DailyMail.com.

Dentists attribute this trend to an obsession with the Twilight series — to have fang-like a vampire teeth, although others say it is an obsession to look more child-like and the sexualization of young girls.

Not everyone sees the look as bad.

A number of actors have found their “snaggletooth” look a professional advantage. Celebrity Kirsten Dunst has commented on her own “snaggleteeth” by saying, “I love my snaggle fangs. They give me character and character is sexy.”

But will this Japanese trend jump across the ocean and on to America? Will braces become a thing of the past? That seems unlikely.

Comments on websites covering this recent trend find it difficult to fathom. Melanie from the U.K. commented on The Daily Mail article, “They look awful! I can not believe people are paying to have their teeth look so bad?!!”

And the vampire culture continues to fascinate the young.

What about you? What do you think of this trend?

Read more: Japanese Cosmetic Trend for ‘Sexy’ Child-like Look Fuels Demand for Crooked Teeth

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