| Medical financing continues to enjoy the best loan | | | | Medical Financing |
| options in the business. Lenders continue to "salivate" | | | | We are currently working with a doctor in Georgia, on |
| over doctors, dentist, and veterinarians. For example, | | | | a ground up construction project which is a very good |
| 90% financing on purchases or construction | | | | example of this. He purchased the land for $300,000 |
| transactions still exists. | | | | and the cost for construction is $500,000. For most |
| A lot of borrowers are surprised to hear this, especially | | | | non medical borrowers they would only be able to |
| in regards to construction financing, as most banks are | | | | have the 80% of the $800,000 financed. However |
| currently no longer considering construction loans. | | | | with this doctor, he added $150,000 of equipment and |
| However, there still are a hand full of national, non | | | | a $250,000 line of credit. He received 90% financing of |
| depository banks and lenders that continue to lend. | | | | the $950,000 and still had the line of top of that... With |
| One of the interesting things about both purchase or | | | | this particular lender they will go up to 133% of the real |
| construction financing for medical practitioners is the | | | | estate/equipment value (only for medical financing |
| ability to roll in other non real estate components into | | | | transactions). |
| the loan. For example, say you where considering | | | | Medical practitioners should take some time or work |
| purchasing an office condo, which only currently had | | | | with a seasoned third party provider to produce |
| the outer shell complete. The cost to build out of the | | | | options beyond what the local banks provide. There |
| space can easily be included. In addition, cost of | | | | can be huge differences, again like higher leverage, |
| medical equipment can be rolled into and often | | | | longer fixed rates (like 10 years) and amortization |
| amortized over a 25 year schedule, unlike most | | | | schedules to 30 years. As a comparison, most local |
| equipment lenders that normally only offer 5 - 7 year | | | | banks only offer 20 year amortization schedules with |
| schedules. Also lines of credit/working capital can be | | | | 5 year fixed rates, and they expect side business, like |
| factored in, beyond the value of the real estate. | | | | your checking, saving, etc if you work with them. |