Commercial Real Estate Financing
Is Expansion the Right Choice?
Over time, accommodating everyone who wanted to see the chiropractor became increasingly challenging. Consequently, they began to wonder if expanding their practice would be a good idea. The concept of acquiring a larger property, along with hiring additional chiropractors and staff, emerged periodically.
Simultaneously, they harbored uncertainty about proceeding solely on speculative grounds. Gradually, they dedicated time to meticulously ponder their choices and ultimately arrived at the conclusion that expansion was desirable. However, their enthusiasm hinged on obtaining suitable financing without encountering undue difficulties in loan repayment.
The Cost of the Expansion
The first step was deciding how much money they needed to expand and accommodate a larger client base. They looked into other practices that had done the same thing and came up with some numbers in terms of how much financing would be needed. The main focus would be updating the building and expanding its size, but they also hoped to add new tools and staff.
In the end, the expansion with all the trimmings would cost around $500,000. It wasn’t a small amount but it would give the owner everything he wanted. The next step would be to look into financing and decide whether this was a realistic project to take on or something that should be pushed back to a later time.