Are you thinking about starting your own veterinary hospital? If so, have you considered purchasing the commercial real estate (CRE) that underlies the hospital?

While starting your own hospital enables you to create a hospital environment that reflects your personal vision and goals, purchasing the underlying commercial real estate gives you ultimate control of your hospital space. It's a long-term investment that can form the foundation for your future success.

Here are five reasons why purchasing commercial real estate may be beneficial.*

  1. Good property values. CRE values are still below their peak in 2008, but are gradually rising. Purchasing now likely means you can lock in a lower purchase price and gain more hospital for your investment than if you wait.
  2. Preferential tax treatment. Commercial property ownership permits 100 percent commercial mortgage interest deductions, depreciation of building expenses, and additional tax advantages, making the actual cost of ownership more manageable than you may realize.
  3. Secure cash flow. By locking in monthly mortgage payments at today's favorable rates, you can secure your cash flow for future planning. And, if your CRE space is larger than your current needs, you can lease to tenants to generate additional cash flow and expand into the extra space as your hospital grows.
  4. Retirement options. When it's time to retire, you can sell both the hospital and real estate to help fund your retirement, or sell the hospital only and keep the real estate, generating monthly rental income.
  5. Favorable rates. Financing rates for commercial property remain at historic lows. It's not uncommon today for a monthly payment on a 25-year commercial mortgage to be the same or lower than lease payments for a similar space.

If you're thinking about purchasing the real estate that underlies your hospital, talk to us at Wells Fargo Practice Finance about our commercial real estate financing. Our loans are designed to meet your business needs and budget--and, as a member of AAHA, you automatically qualify for preferred rates on competitive fixed rate loans.

To learn more, call your Wells Fargo financing specialist at 866-4MY-PAWS (866-469-7297) or visit us online.


*We strongly recommend that you consult with your accounting and/or legal advisors as to the full range of issues involved in real estate ownership.


All financing is subject to credit approval. Commercial real estate financing is provided by Wells Fargo SBA Lending, subject to credit approval and SBA eligibility. 

© 2014 Wells Fargo Bank, N.A. All rights reserved. Wells Fargo Practice Finance is a division of Wells Fargo Bank, N.A.



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