Show notes
"You can never have enough cash.” Connect With Our SponsorsSolventum - https://go.solventum.com/clarityGreyFinch - https://greyfinch.com/jillallen/A-Dec - https://www.a-dec.com/orthodonticsSmileSuite - https://getsmilesuite.com/ Summary In this episode of Hey Docs!, Jill chats with Chandler Wrightenberry from Live Oak Bank to discuss the intricacies of healthcare lending, particularly focusing on practice purchases and real estate investments. Chandler shares insights from his extensive experience at Live Oak Bank, emphasizing the importance of understanding costs, building a supportive team, and maintaining transparency in banking conversations. They explore the current market conditions, project timelines, and the significance of long-term investments in healthcare real estate. Jill and Chandler also touch on the complexities of construction timelines, the importance of zoning, and the necessity of having the right team when expanding an orthodontic practice. They emphasize the need for realistic expectations regarding project durations and financial preparedness, including cash management strategies. Connect With Our Guest Live Oak Bank - https://www.liveoak.bank/Chandler’s Phone Number: (828) 337-1374 Takeaways Chandler Wrightenberry has over 12 years of experience in healthcare lending.Live Oak Bank is the largest SBA lender in the country by volume.Building a supportive team is crucial for successful real estate projects.Transparency in financial discussions leads to better outcomes.Interest rates are currently stable and reasonable for borrowing.It's important to have early conversations with lenders about financing.Investing in real estate is a long-term commitment that can yield significant returns.Doctors often experience growth after relocating to new facilities. You should have an expectation of working with a city to get everything finalized in about six months.Ground-up construction typically takes nine to twelve months for planning and an additional 18 to 24 months for completion.Zoning issues can significantly delay project timelines, so it's crucial to ensure proper zoning before purchasing a property.Having a specialized commercial real estate agent is essential for navigating zoning and permits.Expect projects to take longer and be more expensive than initially anticipated.Financial preparedness is key; saving cash and having a safety net is crucial for large projects.A good rule of thumb is to have at least 10% of the project cost in cash reserves.Investing in liquid assets can provide quick access to cash when needed for projects.Chapters 00:00 Introduction04:35 Market Reality Check07:16 Costs and Rates Today11:25 Build Your Project Team15:04 Be Candid With Lenders19:21 Realistic Project Timelines22:23 Remodel vs Ground Up Schedule23:29 Zoning Pitfalls and Team26:08 Lease Timing and Overlap28:03 Cash Reserves and Liquidity32:00 How to Contact Chandler Episode Credits: Hosted by Jill AllenProduced by Jordann KillionAudio Engineering by Garrett LuceroAre you ready to start a...
