Financing a practice and its real estate together

One deal, two assets

When a seller owns both the practice and the building, you may buy both at one closing. Lenders may finance them with one loan or separate loans, often with different terms: shorter for the business, longer for the property.

Build one sources-and-uses table

List every use — practice price (goodwill, equipment, supplies), building price, working capital, closing costs, improvements — and every source: each loan, seller note and your equity. It's the single most useful page in your lender package.

Coordinate the diligence

• Practice: financials, production, staff, leases and contracts
• Property: appraisal, environmental review, title, zoning and condition
• Both: entity structure, guarantees and cross-default terms

Timing

Appraisals and environmental reviews take time. Start property diligence early so it doesn't delay the practice closing.