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Nirmaldeep Brar
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How do you plan for ground up construction

Nirmaldeep Brar
Posted Feb 19 2024, 10:34

Hi, I am a healthcare professional with currently renting office space. My rent is $1000/month. My revenue for last year was $1M. I have land that I purchased last year and would like to build a 6000 sq ft building for my dental practice. I have limited space to grow at my current location so I would like little bigger space (3000 sq ft ) foe me as well as 3000 sq ft space to rent someone.  The land is approved for ~7300 sq ft space. My enquires are:-

1. Should I go with 7300 sq ft and try to get as many tenants as possible or stay within my comfortable financial position.

2. How do I calculate the monthly mortgage+ interest+ insurance+ tax that I should be able to comfortably able to take care.

3. My home mortgage is 4500/month, practice loan 4000/month, Student loan 1000/month.

4. My credit score is really good and I have around $450000 mortgage  on 2.75  rate for 18 more years.

Thank you

N. B

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Staci Rogers
  • Lender
  • Indiana
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Staci Rogers
  • Lender
  • Indiana
Replied Feb 20 2024, 06:44

Hi Nirmaldeep,

As a lender, I would suggest you stay within your comfort zone. Most lenders will require that you occupy a minimum 51% of the building in order for it to classify as owner occupied. 

I am happy to connect and schedule a time to chat.

Staci

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Robert Ellis
Pro Member
  • Developer
  • Columbus, OH
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Robert Ellis
Pro Member
  • Developer
  • Columbus, OH
Replied Feb 20 2024, 19:12
Quote from @Nirmaldeep Brar:

Hi, I am a healthcare professional with currently renting office space. My rent is $1000/month. My revenue for last year was $1M. I have land that I purchased last year and would like to build a 6000 sq ft building for my dental practice. I have limited space to grow at my current location so I would like little bigger space (3000 sq ft ) foe me as well as 3000 sq ft space to rent someone.  The land is approved for ~7300 sq ft space. My enquires are:-

1. Should I go with 7300 sq ft and try to get as many tenants as possible or stay within my comfortable financial position.

2. How do I calculate the monthly mortgage+ interest+ insurance+ tax that I should be able to comfortably able to take care.

3. My home mortgage is 4500/month, practice loan 4000/month, Student loan 1000/month.

4. My credit score is really good and I have around $450000 mortgage  on 2.75  rate for 18 more years.

Thank you

N. B


 buy a building with your credit, get a mixed use approved. don't improve 7000 sq ft as a tenant. all the rich guys are owning real estate. negotiate with yourself market rent and multiple tenants. occupy less than 25%. look at land. don't do this. 7300 sq ft is crazy to build out for a dental practice. get a few other dentists to split the cost with you and do a sale leaseback, you can probably sell the building and roll the business up to a private reit attach real estate to it. 

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