Real Estate vs. Private Practice

[bite]

As a current MS4, I don’t know the first thing about either — but, I wanted to gain insight on the advantages and disadvantages of owning several private medical practices vs. traditional real estate.

I was curious about things such as appreciation/depreciation, tax benefits, cash flow and general financial security.

I understand this is a broad question, but I would appreciate any bits of information and discussion.

[CordMcNally]

It’s so broad that I’m not sure you’ll get much in the way of responses. Check out the Bigger Pockets forum if you want to learn more about real estate.

[dennis]

Both can be quite advantageous and a good path to wealth creation. Both use leverage. With the practice ownership you are leveraging other people's time - the employed Drs/nurses. With the real estate you are leveraging other people's money. You could combine both and own the buildings that house the practices.

[bite]

Both can be quite advantageous and a good path to wealth creation. Both use leverage. With the practice ownership you are leveraging other people's time - the employed Drs/nurses. With the real estate you are leveraging other people's money. You could combine both and own the buildings that house the practices.

Thanks for this information. Do you have any resources you would suggest a newby use to learn more about this?

[abds]

As a current MS4, I don’t know the first thing about either — but, I wanted to gain insight on the advantages and disadvantages of owning several private medical practices vs. traditional real estate.

By "owning several private medical practices" do you mean owning a business that employs doctors and other providers? Or do you mean owning office buildings that medical practices lease from you? The former is a business. The latter is commercial real estate with hopefully reliable renters, and potentially the benefits of depreciation (possibly huge tax savings), and other people building equity/paying off your loans.