Medical Office Investment Group

[Solace Medina]

Does a medical office investment mastermind/investment group exist? I want to learn how to analyze, find, acquire, and lease medical offices from investors who are in this space. I want to do this as a single investor (or with a partner) but not through joining a syndication. I'm located in Wichita, KS but location doesn't matter if there is an online group! 

Alternatively, if you are an investor who owns medical offices, I'd love to chat with you.

[Don Konipol]

Quote from @Solace Medina:

Quote from @Don Konipol:

I've owned a few medical office properties in the past. Minimum total price for a smaller, yet still "efficient" property would be in the $1,500,000 + range in the less expensive states. Financing of up to 50% at 2 or 3 % over "base rate" can be had. Any LTV over that would require hard money rates, which would make cash flow negative. So, if you are able to find a cash flowing property in a low cost area you would realistically need $750,000 plus emergency capital of your own money to do a deal that has any chance of success.

Most smaller medical office buildings were occupied by solo practitioners or small partnerships.  In the last 5 years those are gone, ALL medical practices are now part of major group practices.  As leases expire the major practice administrators either consolidate and relocate practices into large medical campuses, or negotiate leases with retail strip centers that have empty space and are willing to sign a long term lease at way below market rent to attract an “anchor”.  

I no longer invest directly in medical real estate, I invest in medical office REITs. 

The large cost to get into medical offices is very intimidating. What makes it worth it is, I do think that medical offices can be one of the safest investments. I have seen the trend of smaller practitioners moving to large medical buildings. I have also seen retail strip malls leasing to urgent cares and other medical tenants more often now.

How has medical office REITs been performing for you? What type of return are you getting? How long does your investment stay in the REIT?

The large cost to get into medical offices is very intimidating. What makes it worth it is, I do think that medical offices can be one of the safest investments. I have seen the trend of smaller practitioners moving to large medical buildings. I have also seen retail strip malls leasing to urgent cares and other medical tenants more often now.

How has medical office REITs been performing for you? What type of return are you getting? How long does your investment stay in the REIT?

SUCCESSFUL entrepreneurial real estate activity will almost always have a greater ROI than a passive interest in a large diversified portfolio of class A properties.  Here are the most important questions the investor must ask themselves BEFORE making a determination as to whether or not a direct investments in any real estate is a viable option for them

1. Do I have the expertise necessary to analyze, negotiate, and manage this investment? 
2. Do I have the experience necessary to do the same? 
3. Do I have the capital necessary to buy the property without ending up over leveraged and with having sufficient emergency capital?
4. Do I have the temperament to deal with the risk, tenants, and uncertainty of direct investment in real property?
5. Do I have the financial cushion to deal with a large loss to my capital? 
6. Do I have the time to devote to managing this investment? 
7. If my spouse/significant other turns against me as a result of the consequences of making this investment am I willing to accept this consequence?