Medical professionals may own their own businesses, but owning the office building might be a unique challenge. Unlike traditional commercial properties, medical real estate requires specialized spaces that can only be used for specific purposes like medical offices or surgical centers.
Even successful practices generating millions in revenue can find themselves stretched thin when it comes to leasing, so buying may be a more attractive option. Financing for commercial real estate typically follows a risk-to-rate formula: the higher the perceived risk of the investment, the higher the down payment and interest rate will be. For medical real estate, lenders often require a down payment of at least 20%, though many institutions ask for a 25-30% deposit. In some cases, the down payment can be offset through forgivable second mortgages or gap funding.
If you're interested in medical real estate but want to make sure you're making the right move, having the right professional team in place is important. With more than 30 years of residential, commercial, and investment experience, EMS Commercial has the tools and reliability you need.
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