What is a GAP?

Here is a combination statement and question I hear from dentists who have already started on a building project without understanding what the entire process entails. It goes something like this:

"My bank just told me I have a GAP between what it's going to cost me to build my office and what they'll lend me to build it. A GAP - what is it!?"

Typically, due to the additional electrical, plumbing, and other build out requirements specific to the dental industry, a dental office costs significantly more to build than it will appraise. A bank will usually lend up to 80% of your project's costs or appraised value, whichever is lower. Therefore, the difference between what a building costs to build and the amount you can borrow is the GAP.

You will not know what your GAP is until you have spent thousands of dollars in the pre-design and design stages of your project.

For a new dental building you could spend $50,000 before you know what the GAP will be.

This number does not include your time or the cost of the land.

* How do you plan for the GAP?

* Can you leverage your practice to secure financing?

* Where can you find financing for the GAP?

* What are the best terms for this type of financing?

* Is 100% financing available?

How do you find answers to these questions before spending thousands of dollars moving forward on your project, only to find out you cannot finance your project?

You need to understand the GAP in your specific situation and design a strategy to bridge the GAP.

We have developed a unique process called The Financial Leadership Solution to help solve this issue of the GAP? Click here for an overview:

Schedule An Appointment on a Monday or Wednesday

I schedule initial client calls with the intent to determine if it makes any sense for us to work together. If it doesn't, I am totally okay with that. My team and I cannot help everyone. I must feel that we can add value to your life before we will accept you as a client. And you must feel the same.

To schedule a time for a 30 minutes call, please reply to this email or give Meghan a call at 317-581-5664.

Thank you and have a great day!

David Catalano

Finance Geeks

9000 Keystone Crossing, Suite 630

Indianapolis, IN 46240

317-581-5664 Office, Extension 20

317-581-1812 Fax