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Dental Real Estate Advisory
Dental Real Estate Advisory
Provide content to help dentist make real estate decisions based that are financially sound for the future of their practice
Practice Real Estate

How Facility Equity Offsets Higher Payments

How Facility Equity Offsets Higher Payments

2/16/2026 10:54:30 AM   |   Comments: 0   |   Views: 30

Forced Savings Over Time

Across ten years, many owners repay 25–35 percent of their loan balance. That equity offsets the higher early payments displayed in most ownership models.

How It Appears in Accounting

Interest is deductible; principal reduces debt on the balance sheet. For pass-through entities (LLC or S-Corp), that equity contributes directly to the owner’s net worth.

Appreciation Multiplies the Return

A property appreciating 2–3 percent annually compounds this effect. Amortization and appreciation together often outperform investment alternatives of similar risk.

Advisor Collaboration

NextSite’s valuation modeling shows how equity growth changes net cost and long-term return for owner-occupied buildings.

Feel Free to brainstorm your scenario in this free tool - Lease vs Purchase Calculator created specifically for owner occupied medical properties: https://nextsiteconsulting.com/lease-vs-purchase-calculator


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