Picture this: Dr. Garcia has spent ten years working as an associate in Orange County and is finally ready to buy his own practice. He’s heard about a dental practice for sale in a great neighborhood, but he isn’t sure how to evaluate the numbers, finance the acquisition or make sure the real estate won’t become a liability. In Spring 2026, with interest rates stabilizing and more dentists nearing retirement, opportunities abound for dentists who want to buy a dental practice. But the process is complex and the stakes are high.
Here’s a step-by-step guide to buying a dental practice in 2026 that will help you avoid common pitfalls and capitalize on the right opportunity.
Step 1: Define Your Vision and Financial Parameters
Before you start touring offices, clarify what you really want. Are you aiming for a family practice with strong hygiene revenue, or are you building a multi-specialty group? Do you plan to own the building or prefer the flexibility of leasing? Align your goals with your personal and professional timelines.
Budgeting is more than a down payment. Lenders scrutinize your personal credit, debt-to-income ratio and business plan before approving dental office financing. You’ll need a clear picture of how much you can invest, what production level you’re comfortable with and how quickly you expect to grow. Here’s what most dentists don’t realize: lenders care as much about your business plan as your personal credit, and the wrong loan structure can limit your future growth.
If you’re starting your search, the Schilling Team can help you align your vision with realistic numbers – reach out early to avoid chasing the wrong deal.
Step 2: Identify and Evaluate Dental Practices for Sale
Finding the right practice is part art, part science. Work with brokers who specialize in dental real estate and practice sales. They’ll help you source opportunities and perform initial screening. Once you’ve identified a potential practice, dig into the details:
- Financials and production: Request three years of profit-and-loss statements, production by provider, payer mix and adjusted EBITDA. Compare collections to overhead and look for consistent hygiene revenue.
- Patient base and systems: Assess the number of active patients, new patient flow and the strength of recall systems. A practice with a diversified payer mix and documented procedures commands higher value.
- Facility and equipment: Inspect the condition of operatories, technology and digital infrastructure. Deferred maintenance can become expensive fast.
- Real estate and lease: Evaluate whether the practice owns its building or leases. A favorable long-term lease can increase stability, while an overpriced or expiring lease can erode value.
This is where deals are won or lost: overpaying for goodwill or ignoring deferred maintenance can cost you hundreds of thousands. Before making an offer, get a second opinion. The Schilling Team can walk you through a detailed dental practice valuation and real estate assessment to ensure you’re not missing hidden risks.
Step 3: Secure Financing and Choose the Right Loan
Dentists are attractive borrowers, and banks compete for your business. The main options include:
- SBA 7(a) and 504 loans: These government-backed loans finance practice acquisitions and real estate with as little as 10% down. In 2026, SBA rates remain higher than pre-2023 levels, but they often include longer terms and lower fees.
- Conventional bank loans: Local banks and dental-specialty lenders may offer competitive rates and faster approvals but often require higher down payments or cross-collateralization.
- Seller financing: In some transactions, sellers carry a note to bridge the gap between the purchase price and bank financing. This can reduce your cash outlay, but you must negotiate terms carefully.
Make sure you separate financing for the dental practice from financing for the real estate. If structured incorrectly, financing can lock you into inflexible terms that restrict cash flow when you need to invest in new technology. Let’s talk financing. Burnett Facer of the Schilling Team specializes in structuring loans and sale-leasebacks for dentists — call us before you sign a term sheet.
Step 4: Negotiate Real Estate and Deal Structure
If the practice owns its building, you’ll need to decide whether to purchase the real estate, lease it from the seller, or pursue a sale ‑ leaseback. Owning the property provides long-term stability and potential appreciation, but ties up more capital. Leasing can free up cash for equipment and marketing, but you must negotiate renewal options, assignability and rent escalations to protect your exit strategy.
Beyond the real estate, pay close attention to the deal structure. Asset purchases allow you to depreciate equipment and avoid hidden liabilities; stock purchases can simplify transitions but may come with undisclosed risks. Work out the transition timeline, non ‑ compete clauses, and arrangements for staff retention. A poorly negotiated structure can complicate future refinancing or your eventual dental practice for sale when you are ready to exit.
Common Mistakes Buyers Make
From our experience advising dentists, these are the pitfalls we see most often:
- Skipping due diligence: Trusting a seller’s numbers without verifying tax returns, bank statements and production reports invites unpleasant surprises.
- Ignoring lease assignment clauses: If you’re taking over a lease, confirm that the landlord will grant an assignment and that the term extends at least seven years to secure financing.
- Overestimating your capacity: Buying a practice that requires production levels far above your comfort zone can lead to burnout and financial strain.
- Neglecting team dynamics: Patients value continuity. Replacing the entire staff or failing to understand the office culture can hurt retention and revenue.
Avoid these mistakes by working with a broker who specializes in dental real estate and understands both the clinical and financial sides of your practice acquisition.
Strategic Recommendations for 2026
- Early-career dentists: Look for practices with strong hygiene programs and room to expand. Smaller acquisitions in growth neighborhoods can offer the best balance of affordability and upside.
- Multi-location groups: Consider a hub-and-spoke model. Buy the real estate for your flagship location and lease satellite offices to maintain flexibility.
- Interest rate considerations: While rates have eased since their peak, they are still higher than they were a few years ago. Lock in fixed-rate loans where possible and build rate sensitivity into your projections.
- Preparing for future exit: Structure your purchase so it supports a profitable exit. Negotiate renewal options and assignability in your lease, and separate any real estate mortgage from practice debt.
Ready to explore your options? Contact the Schilling Team today to discuss your acquisition strategy and get an honest assessment of what your ideal practice could look like in 2026.
The Bottom Line
Buying a dental practice is one of the most important decisions you’ll make in your career. Success requires aligning your goals, performing rigorous due diligence, structuring financing properly and understanding the real estate implications. Burnett Facer of the Schilling Team, who specializes in dental real estate, can analyze your financials, compare opportunities and guide you toward a solution that maximizes your long-term wealth.
Reach out to the Schilling Team and connect with Burnett Facer at (949) 212-1346 for a confidential consultation and real numbers on your next move.