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How Real Estate Can Help You Build Long-Term Profit (and Freedom) as a Dentist

 

How Real Estate Can Help You Build Long-Term Profit (and Freedom) as a Dentist

When you're launching your dental startup, your mind is probably on collections, expenses, maybe even hiring your first associate. But if you're playing the long game—really playing it—there’s one strategy the most financially savvy dentists quietly use to build both profit and freedom: real estate.

Not the HGTV-flipping kind. We're talking about owning the ground beneath your practice—on purpose, with strategy.

Let’s unpack how real estate can be one of the most overlooked, yet powerful, tools in your financial arsenal.

Can Real Estate Really Create Freedom for Dentists?

Absolutely—if it’s done right. That’s what Dr. David Phelps, founder of Freedom Founders and longtime dental entrepreneur, shares in a recent episode of the Ideal Practices Podcast.

Dr. Phelps made his first $50,000 in real estate while still in dental school. Over time, he used that strategy to generate passive income that eventually gave him clinical freedom. But what makes his approach different is this: it’s not about hype. It’s about control.

And control, my friend, is a serious asset.

Real Estate Insights from a Dentist Who’s Actually Done It

Here are some of the powerful lessons Dr. Phelps shared in our conversation—lessons I’ve seen many Ideal Practices clients use to multiply the value of their ownership journey:

  • Grow a profitable practice first—then use it as a launch pad for real estate investments

  • Understand your market dynamics—investing in a “blue state” versus a “red state” has different implications for taxes and regulations

  • Know when to own your building—and when it’s smarter to lease

  • Avoid shiny-object properties—look for steady, boring cash flow

  • Invest with a network, not in a vacuum—because lone-wolf investing usually ends in regrets

Should You Own the Building for Your Dental Practice?

Owning your practice’s real estate can be an incredibly smart move—but only if the timing, location, and long-term plan make sense. At Ideal Practices, we’ve seen clients save hundreds of thousands and gain tax advantages simply because they made a strategic decision to own their building.

But we’ve also seen doctors get burned by rushing in without understanding zoning restrictions, future development, or the math of occupancy costs.

Rule of thumb? Make the decision with eyes wide open—and with your future business model in mind.

Top Real Estate Mistakes to Avoid

  • Buying before your practice has the cash flow to support it

  • Ignoring local market trends and economic conditions

  • Investing solo without guidance or mentorship

  • Believing real estate is “easy money” (it’s not—it’s a tool, not a lottery ticket)

Want to Go Deeper?

If you’re intrigued by the potential of practice real estate as part of your wealth-building strategy, here’s how you can explore further:

Final Thought: You Don’t Have to Do This Alone

Whether or not real estate plays a role in your journey, one thing’s for sure: the smartest owners are the ones who think beyond the operatory. The ones who ask, “What kind of life do I want this practice to help me build?”

If that’s where your head’s at—you’re already on the right track.

Let’s build something that supports your version of success.

—Stephen Trutter