The pros and cons of investing in real estate, Dallas



Real estate, Dallas has long been a popular investment vehicle for medical professionals—from single practitioners to large practice groups.  These investments often have been motivated by tax savings, as well as by cash flow and asset appreciation.

1. Capital intensive

Compared with leasing the space you need for your medical practice, buying real estate, Dallas is always more capital-intensive. 

With leasing, a landlord funds part of your capital needs the infrastructure and the interior build-out. Consider which investment, real estate, Dallas or practice-specific enhancements, is likely to give you the greater return. 

2. Real estate, Dallas is not liquid, and has high transaction costs

Simply put, when you want to sell there may not be acceptable buyers.

Because each real estate, Dallas parcel is unique, it must be valued as an individual unit—not as one of many fungible stocks or bonds. 

3.  Market risk

As a real estate, Dallas investor, you will be exposed to changes in the real estate, Dallas market that affect the value of your investment.

Their assessment of what would be a good location for their practice turned out to be wrong, and while they worked through this issue, the market changed, leaving them with an asset worth far less than the amount they paid for it.

4. Management intensive

When you invest in real estate, Dallas, to assure a successful investment, you must accept complex management responsibilities— maintenance, upgrades, compliance with changing building codes, and more. 

Even if you hire a managing or leasing agent to handle these tasks, you must hire and manage these contractors, and ultimately, you are responsible for their performance—whether it’s code compliance or keeping tenants satisfied and your building full.  Be sure you are committed to the full-time responsibility this requires.

5. Conflicts of interest

In some practices, one or just a few of the partners may choose to own the real estate, Dallas the practice occupies.

Other partners preferred a move.  In any situation like this where some partners feel they are subsidizing the economic interests of others, the culture of the practice may suffer.

6. Exit strategy

For most real estate, Dallas investments, success is determined when the property is sold or refinanced.

A physician who owns an office building in an upstate Connecticut town recently approached us for advice. In the past, she was able to fill her spaces with ease. Now, her building has been vacant for several years.


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