Thursday, November 20, 2008

Thank goodness for dumb doctor deals

Actually, that's a misnomer here. "Dumb doctor deals" are real estate transactions that make no sense but for the fact that there are doctors with plenty of money backing them.

Reading this NREI story was a welcome relief from all the gloom and doom in the news lately. The sector, while perhaps not recession-proof, is still alive:

According to the latest data from Real Capital Analytics, sales of medical office properties totaled $3.3 billion in the first nine months of 2008, a 13% drop compared with the same period a year earlier. But that dip pales in comparison to the 62% dive in property sales for the entire office market in the third quarter.
Whew! Someone's doing something! And banks are dying to lend money to doctors right now, as they think that is a good exposure for their money. Let's face it -- we all get sick. We are, however, noticing anecdotally that the ER is in more use lately. Why? People are waiting until they are really sick to see a doctor because of a lack of money or health insurance.

And on the personal front, I should add that the newest medical office building in Bourbonnais, Illinois is opening soon, probably in early to mid-January. Yes, I was the lawyer on the deal; if I hadn't been, I probably would have been kicked out of the house. Wait until they get the final bill!


Peter Wunsch said...

I follow your blog closely (and love the term "Dirt Lawyer") and was hoping that our websites can exchange links. I am the chairman of RockSolid 1031 (, as well as the CEO of a large commercial real estate company, WEA Enterprises.

To give you some background, I started RockSolid after nearly losing $6 million on a deal, because I was working with a disreputable 1031 exchange company. RockSolid’s mission is to make sure that what happened to me doesn’t have to happen to others. Working with RockSolid, real estate investors will always have a safe place to deposit their funds during a 1031 exchange. We deposit funds only in money-market accounts investing in government-backed securities, making sure that our clients’ money is safe throughout the entire exchange process.

I have also started a blog of my own at to help educate investors about abuse in the 1031 world. Feel free to take a look.

I really believe that our story and our service offering would be of great value to your readership, and I know that your site will be useful to ours. If you can return the favor, I would be happy to have our webmaster add you as a resource in our “Useful Links and Forms” section (

Please let me know if you are interested. I look forward to hearing from you.


Peter Wunsch
Chairman, RockSolid 1031