When I started my podiatric practice, I opened it in a strip mall within my community. I saw value in placing my business in a convenient location. The space was attractive to me and patients, who benefitted from the convenient location, yards from a major highway and the abundance of parking outside the space. Being in a strip mall attracted patients who became aware of our practice for their foot and ankle needs, and it was easy for new patients to navigate.

I rented this space for 11 years while I built this practice, adding patients I treated out of this facility. The costs associated with remaining in this space increased, and the pandemic created an environment in which my overhead increased by 40%, making it apparent that I needed to prioritize looking at other options for my practice. I quickly learned that rent may not be the best option with real estate pricing going up, and I decided to get serious about building acquisition for my podiatry practice to stabilize my monthly expenses.

Purchasing a building for your business is a big task but also gratifying!

This journey's two most challenging components are finding the right real estate and obtaining financing. Finding a trusted professional to navigate this journey can be helpful. For some, this may come from their network and referrals from other professionals. Fortunately, in my case, my husband is a Business Banker, so I started this process on the right foot!

It was evident throughout this process that having a good financial institution and the right professional in my corner improved the outcomes.

In searching for the perfect spot, I quickly learned that I might benefit from exploring options that include smaller buildings or older homes that have been turned into offices vs. focusing on a larger building and subleasing space to tenants to make the cost of entry more affordable. I found a spot in which I could walk to from my home which seemed meant to be! I hired contractors to make the updates that were needed. It was rewarding to have the opportunity to ensure that my work environment had a homey feel. I have received lots of compliments from patients who appreciate the warm, inviting environment this new space has provided. There were times throughout the process that were a little stressful, but the contractors did a great job, and the project turned out great.

In reviewing the outcomes, I'm thrilled to report that I cut my overhead by half by purchasing real estate for my practice! I am making payments to myself, instead of a property management company or a landlord, ultimately increasing my wealth. The purchase of the building stabilized one of my most significant expenses, and I have reaped the benefits available from a tax perspective. I alleviated the worry of a landlord increasing my rent or not renewing a lease which would result in business interruption. 

Having real estate as an asset on my business books will be helpful for me down the road as I approach retirement. Generally, a health care practice is considered easier to sell when real estate is included because it increases the overall value of the sale, which may attract more buyers and command a higher price. It also opens up additional options when looking at retirement options which may include the sale of the property or leasing it and generating passive income.

Podiatrists in private practice may want their own building and could do some due diligence in their early years of practice.

For podiatrists who are just starting a business, getting a line of credit may be a good idea, as banks prefer lending money to businesses with some experience. A line of credit may be a great move to help with overhead costs, and it will help develop a relationship with the bank, which could help when it is time to get a loan, such as a real estate loan for your business.

Acquiring this property has yielded so many positive gains in my life that extend beyond numbers. I can confidently continue to serve patients in a community that I love being a part of. I get to remain close to home and access my family with ease. I am able to enjoy all the rich culture Pennsylvania has to offer. This decision has been such a positive experience that I am honored to share with others that may be considering purchasing property for their podiatry practice.

Shelly Levulis, DPM, specializes in foot and ankle surgery, wound care, and diabetic foot care. She graduated from Temple University School of Podiatric Medicine and practices in Edwardsville and Dallas, Pennsylvania. Dr. Levulis serves on the Board of the Pennsylvania Podiatric Medical Association.