Why do you want to buy a medical building? Do you have any experience in the field or are you planning on being solely a property manager? If you don't have a medical background yourself, do you have anyone on your team who knows the ins and outs of how to run a medical facility? Even if you just own and manage the property, you'll still need to know something about the industry. Medical real estate is a good investment, but it's important to understand what the medical community needs to function at the highest possible level. Some of that the tenants can handle themselves; other amenities and comforts you as the building owner will need to provide for them.

 

Evaluate your investment. Have the building inspected and appraised, then have a study done on vacancy rates and average rental and lease prices in the neighborhood you're buying in. You don't want to price yourself out of the market and you don't want to undercharge either. Is the demand there? Will the industry be able to sustain another medical building in that community? Are there any medical industry changes on the horizon that could affect your business? Issues like health insurance reform and FDA regulations can change the landscape quickly and dramatically. Have you taken those into account and thought about more diversity in your tenant base?

 

These are all questions you should ask yourself when you're creating a business plan for the bank or mortgage broker that will provide you the financing you need to buy a medical building. They're the "what-ifs" that you can use to stimulate ideas when you're planning your venture. It's not as simple as buying a building and renting out space. The bank will want to know how you're going to fill the space and why you think it will be in demand in that community. Most importantly, they'll want to know how you plan to pay your mortgage. Be thorough when you outline that part of the plan and have a back-up plan to show there will be stability and cash flow to cover the investment.

 

Here at iBank, we find you the lender. Fill out our application form for a commercial mortgage and we'll take care of the rest. Give it a few days and you'll start to see responses from banks, mortgage brokers, and private investors. If you need a development or construction loan, you can apply for those here. The bank that approves your commercial mortgage will probably offer those loans too, but you can still shop your request around through iBank. Why not field as many offers as possible?