Buying in to medical practice real estate Buying in to medical practice real estate By Jeffrey B. Sansweet, Esq. React to this article in the Discussion Forum. Most young doctors who join a private practice after completing residency or fellowship expect to become partners. After working as an employee for two to three years, the young doctor will often become a partner while buying in to the practice over another three to five years. The practice buy-in may be based upon the value of the equipment, furniture supplies, accounts receivable and goodwill.
Some practices lease their office space, so no value is attributable to the bricks and mortar.
However, with some practices, the partners own the real estate and the issue arises as to whether the young doctor will become an owner of the real estate as well, and if so, how. This article will explore the issues relating to buying in to practice real estate. Most medical practices are structured as professional corporations. Typically, if practice real estate is not leased, it will not be owned by the practice corporation itself for both liability and tax reasons. Rather, the building or condominium unit will be owned by a separate entity.