A dentist explains how buying an existing practice beats starting from scratch, even with student debt. He borrowed $2.8 million to acquire multiple clinics while putting down just $50,000, because banks finance profitable practices, not personal balance sheets. A $750,000-revenue practice with $400,000 net profit attracts lenders regardless of the buyer's loans.
That's the beauty of buying a practice is immediate cash flow.
You know, most graduates like you, I mean, in Iowa coming out of school, you have $100,000 plus in student loans. Way more than that.
Yeah.
So how do you, how do you come out of school, just start a practice and, and then be able to have the money to buy other practices and get financing for that in a sense? Because I know for myself, I, It was a battle for me to get my first initial loan to just even remodel a building coming out of school to start my practice. So I'm sure the average doc listening to this is, how are you getting the financing and the money?
That's the beauty of buying a practice is immediate cash flow. You know, if you get into an office that's doing— and in my philosophy, the bigger the better. I'd rather fail bigger. So, for example, if there's a practice that is doing, you know, $750,000 revenue and the net's $400,000, the bank's going to look at that very favorably and they're going to probably give you a pretty good loan no matter what your student loan— I don't want to say it doesn't matter, but it doesn't matter that much because that practice is doing so well that they know that you'll be able to pay back their loan. So out of like the $2.8 million or so that I've borrowed, uh, to buy clinics. I've put down $50,000 cash, uh, total.
