Real Estate Investing for Dentists (2022)

Table of Contents

Real estate investing is a good option for anyone who wants to make their money work for them. This also applies to people in the dental industry. Dentists who invest in real estate can potentially create a new revenue stream, grow their net worth, and enjoy a tax shelter.

Considering that real estate can offer numerous tax advantages, real estate targets to be one of the best forms of investment for dentists. It should allow you to generate passive income.

It can even give dentists some peace of mind in terms of job security because they no longer have to worry about the number of clients coming through the door. This also relieves some of their stress and allows them to focus on doing their job. They can just worry about their dental practice, their clinic, their patients, and nothing else.

So, for dentists who are considering real estate investing, this is meant to serve as a guide for one particular type of investment that you should know about: multifamily syndication. Here we will discuss what it is and how it works, including its benefits for those in the dental industry.

(Video) Real Estate Investing for Dentists

Make no mistake: there are other traditional methods you can consider such as investing in the stock market. But since dentists are busy professionals, multifamily syndication may be a better fit overall. With all investment opportunities, you should consult your CPA for your specific situation.

Multifamily Real Estate Syndication for Dentists

Real Estate Investing for Dentists (1)Syndication is when a group of investors pool their money in order to purchase a real estate property. Multifamily syndication refers to a group of investors who pool their money to buy a single multifamily asset, such as an apartment complex. [1]

Since dentists are usually busy in the dental clinic working on their patients, they don’t have the time to actively get involved in real estate. They are not necessarily looking for another job. They are too busy to handle the responsibilities of being a landlord, which comes with owning a rental property. With syndication, this is no longer a problem.

For dentists investing in real estate, the primary goal is to have their money work for them without having to exert as much effort as they are already putting into their day job. This can be tricky unless you can find a passive investment to put your money into.

Not only is multifamily syndication a passive type of real estate investment, but it also allows investors to purchase properties that they may not be able to afford on their own. From duplexes to condominiums, there are many different types of multifamily properties to invest in—but they are generally more expensive than single-unit properties. This is where multifamily syndication comes in.

In a syndication deal, multiple investors pool their resources together in order to buy a single commercial property. And because tenants pay rent on a regular basis, these multifamily properties can generate a continuous cash flow for their investors.

In multifamily syndication, a sponsor—also known as a syndicator—puts the deal together. They will look for an existing commercial or multifamily property to buy and then locate investors to participate in the deal. Most of the capital will come from the investors. The investors then earn money from the cash flow and the equity upon resale. [2]

The sponsor is in charge of finding a suitable property, putting the deal together, and also managing the property on behalf of the investors. This is critical for investors like dentists who are too busy to manage tenants and handle emergencies. It is one of the biggest benefits of syndication.

With the responsibility of managing the property given to the syndicator, investors no longer have to worry about the asset once they have purchased it. The sponsor will manage it for them. Some sponsors secure a third-party organization for property management. [3] Others, such as BAM Capital, have an in-house property management arm of their vertically integrated business model.

Because of the part that they play in the deal, the syndicator typically receives fees and/or “distributable cash” that are left once all the expenses and loan obligations have been paid. [3]

For dentists, this takes a lot of weight off their shoulders. They can freely invest their money and enjoy passive income without worrying about the property itself.

Passive Real Estate Income for Dentists

The greatest benefit of real estate investing is that you get to choose how you spend your time since you are already enjoying some financial freedom. Without a passive source of revenue, you constantly have to worry about the next paycheck and the number of clients you are bringing in.

Real estate investing, particularly multifamily real estate, creates a positive cash flow which allows you to build your wealth over time.

The beauty of multifamily syndication is that investors get to enjoy the benefits that are usually afforded to the actual owner. This includes tax benefits and appreciation. Most income coming from multifamily syndication is tax-free, particularly when they are offset by depreciation. This means syndication can serve as a form of tax shelter. Investors get a check either on a monthly or a quarterly basis for the duration of the deal. [4]

Multifamily syndication targets to allow dentists to make money while they sleep. The investment can grow even without much action on the part of the dentists. Dentists can enjoy a steady income and property tax benefits on their multifamily investment property while building wealth.

(Video) Doctors and Dentists investing in real estate

Why Work with BAM Capital for Multifamily Syndication

For dentists who want to try multifamily syndication, BAM Capital is the best option because of its vertical integration model that mitigates risk for investors.

BAM Capital prioritizes Class A multifamily properties because it values low-risk investments for passive investors. It also has a strong Midwest focus, prioritizing Class A, A-, and B++ multifamily real estate properties in that area. [5]

BAM Capital will arrange the syndication deal so there is no need to purchase an asset on your own. BAM Capital will also handle property management.

BAM Capital works with accredited investors and negotiates the purchasing and financing of high quality multifamily real estate properties on their behalf. This Indianapolis-based company currently has $700M AUM and 5,000 units. Schedule a call with BAM Capital and invest today.

BAM Multifamily Growth & Income Fund II

BAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.

  • Consistent passive income
    Lower-risk assets with in-place cash flows with the ability to distribute preferred return after acquisition.
  • Significant tax benefits
    A cost segregation analysis allows for accelerated deprecation to years of ownership. This large passive loss gets passed onto investors through a K1.
  • Vertically integrated company
    In-house property management and construction allow for predictable cost reduction and value add.
(Video) Secondary Revenue Streams for Dentists using Real Estate
(Video) Why would dentists want to invest real estate?

The above link will take you to the free Investor Portal to view all current offerings. If you do not have an account already, please create one to view the information.

The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.

(Video) How A Dental Practice Owner Became A Real Estate Investor feat. Roshan Kalra / Debt Free Doctor

FAQs

What is the typical profit margin for a dentist office? ›

The average dental practice has a gross profit margin of 40%. While there are several circumstances that could affect your margins, this figure should give you a benchmark. It can also be helpful to know your profit margin for each procedure.

How can dentists increase profitability? ›

  1. 25 Strategies to Make Your Dental Practice More Profitable. ...
  2. Educate Yourself and Your Team on Better Business Practices. ...
  3. Create an Organized Marketing Plan. ...
  4. Establish Goals. ...
  5. Utilize Understandable Incentives. ...
  6. Learn the Value of Good Presentation. ...
  7. Revamp Your Patient Experience. ...
  8. Improve How You Receive Calls.
2 Oct 2021

How can I expand my dental business? ›

Here are nine strategies to help grow your practice.
  1. Build a strong web presence. ...
  2. Invest in SEO. ...
  3. Don't underestimate the power of online reviews. ...
  4. Understand customer communication preferences. ...
  5. Consider automated technology. ...
  6. Count on referrals. ...
  7. Expand your services. ...
  8. Offer flexible financial options.
20 Mar 2021

Which state is best to work as a dentist? ›

Projected Job Demand for Dentists (2018-2028): State by State
Overall RankStateJob Growth Percentage (2018-2028)
1California11.4%
2Texas31.7%
3New York21%
4Florida12.8%
8 more rows
4 Jun 2021

Can a dentist Be A Millionaire? ›

The typical millionaire

The average dentists' remuneration was $204,710 for generalists and $343,410 for specialists. Of the existing 128.45 million American households, 13.5 million (a bit more than 10%) have a net worth greater than $1 million.

Which dental specialty makes the most money? ›

The Highest Paying Dental Jobs for 2020
  • ORAL AND MAXILLOFACIAL SURGEON: $307,999 (according to ZipRecruiter)
  • ENDODONTIST: $287,937 average annual salary (according to ZipRecruiter)
  • ORTHODONTIST: $284,763 average annual salary (according to ZipRecruiter)
2 Jan 2020

How often do dental practices fail? ›

Dentists should feel confident that they are poised to be successful in a great profession in which there is a failure rate of less than 1% because they have invested several hundred thousand dollars in themselves-the wisest investment they could make.

Is a dental clinic profitable? ›

On average, general practices are bringing in $771,000 in annual revenue and specialists are bringing in $1.1 million. So why aren't dentists making more money? The answer is simple: overhead. Both GPs and specialists are spending 75% of their annual revenues on overhead costs, leaving only a 25% profit margin.

How do you negotiate a dentist salary? ›

Negotiating your salary, benefits and contract
  1. Know your value. ...
  2. Say as little as possible. ...
  3. Sell your skills. ...
  4. Establish your target salary and absolute bottom line. ...
  5. Take into account the whole package. ...
  6. Make the negotiation a friendly experience. ...
  7. Never agree straight away.
7 Mar 2022

Are dentists entrepreneurs? ›

SUMMARY. Although dentists may have an entrepreneurial spirit, they are not true entrepreneurs. Simply by selecting dentistry as a profession, dentists have engaged in a business that has a high level of success and limited growth potential.

How do I market myself as a dentist? ›

8 Dental Marketing Ideas Guaranteed to Attract New Patients
  1. Update and Optimize Your Google My Business Page. ...
  2. Upgrade Your Website Design. ...
  3. Start Blogging. ...
  4. Optimize Your Blog and Website Pages for SEO. ...
  5. Go All-In on Video Marketing. ...
  6. Ask Your Patients for Reviews. ...
  7. Connect With Patients Using Email Marketing.
12 May 2020

How can I make my dental clinic attractive? ›

Modern Expectations: 8 Tips to Make Your Dental Office Attractive to Millennial Patients
  1. Don't Neglect Social Media. ...
  2. Check Your Online Reviews. ...
  3. Embrace Sustainability in Your Office Design. ...
  4. Implement a Flexible Booking Schedule. ...
  5. Offer Digital Services. ...
  6. Increase Digital Communication Too. ...
  7. Get Involved in Your Local Community.
2 Oct 2020

Where is the best place to live as a dentist? ›

Top 50 cities for dentists
RankCityLocation Quotient
1Port St. Lucie, FL2.47
2Colorado Springs, CO1.60
3Prescott, AZ1.59
4Lake County, IL1.14
8 more rows
2 Dec 2015

Is there a shortage of dentist in the US? ›

The excess growth in demand compared to dentist supply, combined with the existing shortages in DHPSAs, results in a projected national shortage of approximately 15,600 FTE dentists in 2025.

Are dentists high in demand? ›

Overall employment of dentists is projected to grow 6 percent from 2021 to 2031, about as fast as the average for all occupations.

Are dentists richer than doctors? ›

The median salary for dentists is $156,000 annually and $208,000 annually for doctors. These salaries are much higher than the average US salary of $957 weekly, or approximately $49,764.

At what age do dentists usually retire? ›

The average American retires at age 62, but the average retirement age for dentists is 69.

Are dentists considered rich? ›

"Statistics show that dentists average about $180,000 per year, putting them in the top 5% of earners in America.

Do dentists make 6 figures? ›

According to PayScale, the average salary for a dentist is $123,206 per year, with a reported salary range of $75,090 to $237,055.

Where are dentist paid the most? ›

New study reveals the countries paying the highest salaries for dentists
RankCountryDentist yearly salary (£)
1United States£179,267
2Belgium£149,773
3Denmark£146,021
4Norway£126,460
6 more rows
9 Feb 2021

What is a squat dental practice? ›

A squat dental practice is essentially a practice started from scratch, usually with a single surgery to begin with and aspirations to be a highly profitable business. There are many aspects to building a successful squat practice and the most important from the start is to focus on a clear plan.

How many patients should a dental hygienist see per day? ›

In a typical practice, a full-time hygienist sees between 8-10 patients per day. In a practice with accelerated or assisted hygiene, that number may be around 16.

How many square feet is a dental office? ›

Restrooms require approximately 50 square feet.
...
Floor Space.
Type of SpaceSquare feet (sq. ft.)
Reception Area (5 to 8 operatory clinic)120 sq. ft.
Reception Area (9 to 16 operatory clinic)240 sq. ft.
Dental Director's Office120 sq. ft.
Dental Office Manager's or Dental Assistant Supervisor's Office100 sq. ft.
20 more rows

How much does a dentist make a year? ›

Dentists made a median salary of $158,940 in 2020. The best-paid 25 percent made $208,000 that year, while the lowest-paid 25 percent made $115,290.

Do most dentists own their own practice? ›

Although a Non-Dentist May Be Prohibited from Owning a Dental Practice, There Is a Way for Financial Participation. The majority of dental practices are either owned by solo practitioners or a collective of dentists that can operate out of a single office or from a number of individual sites.

How many patients does a dentist see in a year? ›

Average number of yearly patient visits per U.S. dentist from 1990 to 2018
CharacteristicAverage number of patients per year
20183,566.4
20173,707.1
20163,686.7
20153,690.2
9 more rows

How do I ask a dental assistant for a raise? ›

Many dental assistants want to ask for a raise and earn more money, but this can be a difficult conversation to have with your employer.
...
5 steps to asking for a raise
  1. Know your state requirements. ...
  2. Earn credentials. ...
  3. Demonstrate your value. ...
  4. Do your salary research. ...
  5. Don't be afraid to ask.
9 Aug 2017

Are dentists small business owners? ›

Although dentists may have an entrepreneurial spirit, they are not true entrepreneurs. Simply by selecting dentistry as a profession, dentists have engaged in a business that has a high level of success and limited growth potential.

How do I start a dental business? ›

10 Steps to Starting a New Dental Practice
  1. Create a business plan.
  2. Consider a partner.
  3. Find a location for your dental practice.
  4. Decide what equipment you need and how much it will cost to buy or lease it.
  5. Determine your space requirements.
  6. Obtain financing.
  7. Sign a lease.
  8. Determine personnel needs.
24 Mar 2021

Are dentists allowed to advertise? ›

According to the Dental Council of India, the dental surgeon is permitted to make a formal announcement in the press release of his ethically permitted practice in the following cases: On starting practice. On change of type of practice. On changing address.

How can I market my dental clinic online? ›

Digital Marketing for Dental Clinics: 7 Strategies for Success
  1. Local SEO.
  2. Business Directories, Listings, and Maps.
  3. Organic Social Media.
  4. Paid Social Media.
  5. Display Advertising.
  6. PPC Advertising.
  7. Email Marketing and Marketing Automation.
  8. Work with us.

How can social media promote dental clinic? ›

11 quick tips to encourage potential patients with your social media
  1. Use Facebook as a marketing tool. ...
  2. Use Instagram as a marketing tool. ...
  3. Use Youtube as a marketing tool. ...
  4. Create and post relevant infographics. ...
  5. Share patient testimonials. ...
  6. Post before and after photo results. ...
  7. Share valuable information about your team.

Can you be friends with your dentist? ›

G, Personal Relationships With Patients, explains, “Dentists should avoid interpersonal relationships that could impair their professional judgment or risk the possibility of exploiting the confidence placed in them by a patient.”1 This section certainly seems to apply here.

Do dentists have patients or clients? ›

Most modern dentistry will require an out-of-pocket expense, requiring discretionary decisions about time and money. That means the people you diagnose are clients when they make those decisions. They become patients when you perform the dentistry.

Which country has shortage of dentists? ›

1. Plenty of vacancies and a big shortage of dentists. The Netherlands has been dealing with a shortage of dentists for years, and the end is not in sight. Many dentists are expected to retire in the coming few years, and there simply are not enough fresh graduates to fill their shoes.

Which country is easiest to work as a dentist? ›

Switzerland has topped the polls as the best place to live and work for dentists, according to Totally Money. The poll ranks countries and various job types based on salary, hours worked, paid leave, cost of living and happiness.

What country is best for dentists? ›

Denmark. Denmark has been at the top of the list of countries with the best dentists for years now. And even with the ongoing pandemic and other obstacles, the dental care in this country has remained one of the best in the world.

What will Dentistry be like in the future? ›

The authors surmise that: Total dental visits will increase from 294 million in 2017 to 319 million in 2040. Dental visits per person will decrease from 0.92 in 2017 to 0.84 in 2040. The percentage of the population with a dental visit will rise from 41.9% in 2015 to 44.2% in 2040.

Are dentists over saturated? ›

It's called oversaturation, and it's a major frustration to dentists who see it happening in their respective geographic communities. Part of the problem, Christensen says, stems from a proliferation of new dental schools. Of the 12 new dental schools that have started since 1997, eight of them are private.

Will Dentistry become automated? ›

Dentistry. Dental practitioners are among the least likely to be replaced by robots, according to a 2015 study by researchers at Oxford University and Deloitte on the risk of computerisation of current jobs in the next 20 years.

Are dentists happy? ›

Conclusion: Although dentistry has been recognized as a stressful profession, majority of the dentists under study had a happiness score above the mean, and the level of satisfaction was influenced by various sociodemographic factors.

Are dentists low stress? ›

Dental professionals perceive dentistry to be more stressful than other occupations. This is consistent with their experiences of moderate to severe stress at work, where they endure an average of five to seven significant stress triggers each day.

What is the ideal gross profit margin? ›

What is a good gross profit margin ratio? On the face of it, a gross profit margin ratio of 50 to 70% would be considered healthy, and it would be for many types of businesses, like retailers, restaurants, manufacturers and other producers of goods.

Do dentists make a lot of money? ›

The average salary for dentists is $182,110 per year . Dentistry is one of the highest-paying medical professions. Dental specialists and those who own their practice can make significantly more money than the average. Oral surgeons and endodontists earn the highest salaries in the field of dentistry.

How is Ebitda calculated in dental practice? ›

How to Calculate Your Dental Practice's EBITDA. It's simple really. Go to your income statement and balance sheet to find all the numbers you need. Take your total revenue, subtract all of your operating expenses but not your depreciation, amortization, interest, or taxes, and you've got your EBITDA.

How much can you make on a crown? ›

A single-unit crown gives us an 86% gross profit margin. Put another way, 86% of our crown fee is our profit after paying for our assistant's time and our crown materials.

What business makes the most money? ›

Profitability of the Largest Companies
CompanyProfit per Day
1Apple$151,386,301
2Microsoft$107,506,849
3Alphabet (Google)$94,090,411
4Bank of America$75,150,685
46 more rows

What business has the highest profit margin? ›

The 10 Industries with the Highest Profit Margin in the US
  • Trusts & Estates in the US. ...
  • Tax Preparation Software Developers. ...
  • Maids, Nannies & Gardeners in the US. ...
  • Land Leasing in the US. ...
  • Industrial Banks in the US. ...
  • Stock & Commodity Exchanges in the US. ...
  • Cigarette & Tobacco Manufacturing in the US. ...
  • Commercial Leasing in the US.

Are dentists richer than doctors? ›

The median salary for dentists is $156,000 annually and $208,000 annually for doctors. These salaries are much higher than the average US salary of $957 weekly, or approximately $49,764.

What is the highest paying occupation? ›

The highest-paying job in the world, in a traditional sense, holds the number one spot in this article: anesthesiologist. They are also the only job listed above $300,000 a year.

Are dentists respected? ›

A Respected Profession

Even though many people will tell you “they hate going to the dentist” and joke about their fear of the dental chair, a 2019 poll from MoneyWise lists dentists as among the most respected professionals in the U.S.2 That is an important point to let sink in.

Is a 20% EBITDA good? ›

EBITDA margin = EBITDA / Total Revenue

The margin can then be compared with another similar business in the same industry. An EBITDA margin of 10% or more is considered good.

How many times EBITDA is a dental practice worth? ›

Dental practices and DSOs are commonly sold for a multiple of EBITDA that ranges from 4 times EBITDA, to (in some rare cases) 15 times EBITDA or more. Based on today's dental practice and DSO valuation multiples, every $1 saved on procurement can add $5 - $15 to your practice's value.

How do you value a dental practice? ›

In this method, you must divide your net present value by a capitalization rate to determine your total dental practice valuation. This capitalization rate can range between 15% and 30% depending on your specific dental practice type and size. For example, smaller businesses typically use rates between 20% and 25%.

How much is a dental crown 2022? ›

Dental Crown Cost. As of 2022, over 90% percent of porcelain dental crowns cost between $850-1,750 per tooth, not including dental procedures that may be required before they are applied. There are a few factors that play a role in the wide range in costs. These include issues inside your mouth as well as location.

How much gold is in a dental crown? ›

An average full “gold” crown might weigh between two to three grams.

Is dental gold worth anything? ›

Assuming a gold crown weighs one-tenth of an ounce, it can be worth as little as $40 if the alloy is 10 karat (40% gold) or more than $90 if the alloy is 22 karat (92% gold) based on a gold price of $1,000 per ounce. On average, a gold crown will be worth about $57 at this spot price.

Videos

1. The WHY & HOW of Real Estate Investing For Dentists
(Skyler Martinson)
2. Why Dentists and Doctors Invest in Real Estate with Keyrenter
(Keyrenter Salt Lake Property Management)
3. Is Real Estate the Best Investment For Dentists? | Episode#15
(Levine Capital)
4. Multifamily Real Estate vs REITs: Which is the Smarter Investment for Dentists?
(Walk of Wealth)
5. How can I utilize a dental practice to invest in real estate?
(America's Commercial Real Estate Show)
6. #175: Passive Real Estate Income for Doctors, Dentists, & Lawyers
(Accelerated Real Estate Investor - Josh Cantwell)

Top Articles

You might also like

Latest Posts

Article information

Author: Francesca Jacobs Ret

Last Updated: 09/25/2022

Views: 6152

Rating: 4.8 / 5 (68 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Francesca Jacobs Ret

Birthday: 1996-12-09

Address: Apt. 141 1406 Mitch Summit, New Teganshire, UT 82655-0699

Phone: +2296092334654

Job: Technology Architect

Hobby: Snowboarding, Scouting, Foreign language learning, Dowsing, Baton twirling, Sculpting, Cabaret

Introduction: My name is Francesca Jacobs Ret, I am a innocent, super, beautiful, charming, lucky, gentle, clever person who loves writing and wants to share my knowledge and understanding with you.