My wife is a Dermatology NP with her own practice (been in business for 9 months) at a suite where she's paying $2100 monthly in rents.
She's already outgrowing the location and is looking to expand. I've told her that we should purchase vs rent a new location.
We are currently looking at a commercial space that we'd like to purchase.
$230K property asking. 1100sqft in the heart of our downtown. While we could pay for the property cash, we'd like financing so we can renovate the property (mostly cosmetic)
Bobbie, this is exactly the sort of deal I’d take to a few local banks and start building a relationship with a commercial lender.
Here in Louisville, we have several smaller banks that keep loans in-house. In my experience, they have much more flexibility to look at the whole picture rather than trying to fit every borrower into the same box.
You’ve got an owner-occupied building for your wife’s practice, strong credit, and enough cash to purchase outright—you’re looking to preserve some of that cash for renovations. That’s a story I’d want to sit down and explain to a local lender.
The practice being only nine months old is something I’d bring up immediately so you can find out how each bank would approach it. But I wouldn’t rule yourselves out before having those conversations.
I’d call a few community banks, ask for someone who handles owner-occupied commercial real estate, and explain both the purchase and renovation plans. This is where having a relationship with a banker—not just filling out an online application—can really help.
As a lender who does a lot of these owner-occupied deals, you’re in a great spot.
At $230k / 1100 sq ft and 100% owner-occupied for her Derm practice, you should be looking at SBA 7(a) all day.
Here’s how we’d structure it for you: • Purchase + Renovation in one loan - no need to use your own cash for the cosmetic work
• 25 year fully amortized, fixed - keeps payment way under that $2100/mo you’re paying now • Business being 9 months old is not a dealbreaker for SBA with strong personal credit - we just PG it
If you wanted to avoid SBA paperwork/fees, a conventional owner-occupied commercial loan is plan B:
With your credit profile and ability to pay cash, you’ll get approved either way - it’s just about keeping capital for the business.
If you want, I lend in FL and can run numbers for you.
Buying once she's outgrowing a suite at $2100 a month is a sound instinct, and being able to close in cash if you had to gives you real room. Your credit gets you a fair hearing, but with a practice this young the lenders I shop usually lean harder on the practice's own numbers. So have a year-to-date P&L, her business bank statements and the renovation bid ready before the first call. A lot of medical owners also buy the building in a separate LLC that leases it to the practice, which keeps the real estate apart from the business. And some commercial lenders set loan minimums above a deal this size, so ask that early. What does the practice net per month so far? That's what has to carry the payment.
We can help, Bobbie. Please feel free to reach out directly at any time. Based on your plans, I would recommend a commercial owner-occupied financing option, as it is likely the most efficient solution. Thanks!
We’d be happy to help, Bobbie! Feel free to reach out to us directly anytime. Based on your plans, I’d recommend https://nextdealfunded.com/ she has the best plan for you