Loan comitment!

Woohoo!! Good news. We've got a commitment letter from both banks: the local bank to fund our building purchase, and an optometric lender for the practice.

Our practice (PLLC) will lease from our building corporation (LLC).. there are several advantages to keeping the two separate, I'll go over those another day.

Timeline of events so far:

• May 30-we found our building
  
• June 4-incorporated LLC with the State
• June 12-executed contract on the building with attorney
  
• June 12-local bank gives us commitment letter for building
• June 17-hired inspector to evaluate property
  
• June 25-practice lender gives us commitment
  

Our loan

We intend on purchasing the building now and holding it, simply because the location is GREAT! The building was actually owned by an ophthalmologist 10 years ago, so remodelling it will be easier (hopefully). We dont plan on occupying the space until we've finished our contract with the seniordoc, set to expire next July. BUT, this gives us plenty of time to get everything in order.

1. I actually applied with two different SBA lenders (7a loan) to finance us for the building purchase and the practice loan. I made them compete with each other to get the best possible rate. They agreed to finance us over 25 years with Prime+2.25% as our rate. Total size of loan: $588,000
2. Then I applied with a local bank (for the building), and an optometric lending company (for the practice loan). This would be the best option for us, and would keep our business local. Total size of loan: $660,000

Favorite Optometry pertinent websites

These resources have helped me tremendously over the last several years..

www.odwire.org The holy grail of optometry websites
www.proactod.org (exclusive version of ODwire, great for discounts!)
www.optiboard.com (Join the ProForum, and learn how to make money with your optical)

There are countless individuals on both boards that share their experiences in our profession. Being an optometrist isn't easy, so I'll take as much help as I can get.

Critical updates

1. About two weeks ago we formed our first ever corporation, an LLC to "own" real estate. It Cost: $750 on mycorporation.com, pretty easy to fill out, and we also got a Tax ID with it. It should be arriving today in the mail, which includes our certificate of formation, articles of incorporation, and Federal TaxID (FEIN).
2. We executed the contract on the building we found last Friday!! There was a 3 day time limit on when we had to get the "earnest money" to the title company. Cost: $3,000. I FedEx'd it to them the same day ($21).
3. Then the same day, we got a committment letter from the local bank. They requested an $800.00 check to start the appraisal process. I FedEx'd that on Sunday night ($21)
4. I ordered an inspection of our potential building today ($480 for inspection, $120 for termite evaluation). I've gotta be comfortable knowing this property before I sink my life into it. The inspector will have our report this week.

Jeez, we're spending money like its going out of style!!

We also managed to find an attorney to represent us ($1000 retainer fee, and billing us $255 an hour. OUCH!!!). He is very quick at getting to us and always a phone call away, but to be honest.. I asked him way too many basic questions, stuff that I should've used a real estate broker for. I would reserve using the attorney ONLY for reviewing contracts. During the negotiation process attorneys should make you understand the language in your contract in plain english.

Also, we found a local CPA to use. I'll post his prices later.