Posted by Vincent on February 14, 2002 at 01:53:35:
Angel,
Thank you for your recommendation. I will let you know the result. Any further suggestions you could give me, I’d appreciate it.
buying a practice - Posted by Vince
Posted by Vince on February 07, 2002 at 16:53:32:
I am a new optometrist looking to buy a practice. The owning optometrist owns the building and the land. He says whoever purchases his practice has to also buy the building, but he will not sell the land. I am new to all these real estate. Why would he not sell the land? What is the advantage or disadvantage for someone to buy the building from him? I would highly appreciate comments/suggestions.
Re: buying a practice - Posted by Angel Gutierrez
Posted by Angel Gutierrez on February 07, 2002 at 23:00:28:
This one Vince, is a slam dunk.
First, we have no info on your deal. So…why keep the land? Simple. Princeton University is on leased land. Harvard is on leased land. Stanford…I think you get the picture. He wants to keep it for balance sheet purposes, it looks good and doesn’t carry maintenance. It also appreciates. Has residual income…how about asking him why? Your lease has to be longer than the mortgage term, or no bank will finance. You don’t really want the land anyway, cuz you can’t depreciate it…only improvements. Go ahead and lease…with the option to buy. Read A.D. Kesslers book on this in “Fortune At Your Feet.” You’ll learn a lot.
Hope this helps. Let me know what happens.
Angel
Dallas, Tx