1.     Obtain a copy of your credit report from the three credit agencies and
        check for accuracy

         A.  Experian  (ph: 1-888-397-3742)
 
         B.  Trans Union  (ph: 1-800-916-8800)

         C    Equifax  (ph: 1-800-685-1111)

2.     Keep credit card debt to an absolute minimum

3.     High credit card balances and little available credit decrease your credit
        scores

4.     Consider deferment or forbearance on student loan debt to keep monthly
        obligations  low

5.    Check with student loan lenders for consolidation of loans and changes to  
       your address

6.     Be aware of credit report errors and unrecorded deferment & forbearance  requests

7.     Lenders’ down payment requirements and closing costs

        A.  Local Bank & Small Business Administration (“SBA”) require a down
             payment  of 10-20% of the loan amount and charge 2-5% of the loan amount
             in closing  (Points)

        B.  Dental funders do not require any down payment and charge $500 to
             1 1/2 points in closing costs

8.     Work experience, income and high production levels are important criteria
        to obtain a loan

9.    Can you produce enough clinically to run the practice you want to purchase?

10.   Show lenders high income and high production ASAP to qualify for financing

11.   Substantial net profits from the cash flow analysis of practice to be purchased is
        essential to borrow

        A.  Practice Gross Collections – (Practice Overhead & Debt Service) = Practice
             Net Profit

        B.  Practice Net Profit Must Exceed your Personal Financial Needs for Practice
             to Cash Flow Properly

12.    Financing Options and Terms for Financing Companies

        A.  100% Financing Available Plus Working Capital to Purchase or Start-Up a
             Practice

        B.  Straight, Deferred & Interest Only Loans Available for 5-15 Year Terms

        C.  Fixed Interest Rates for Entire Loan Term

         D.  No Money Down and Only $500 to 1 1/2 Points in Closing Costs

         E.  Loans Approved within 3-5 Business Days and Close within 2-4 Weeks

         F.  Can Also Finance the Purchase of Commercial Real Estate and Land

 13.   Lease Office Space or Purchase the Building the Practice is Located Within

        A.  Negotiate Long Term Lease (5 Yr. Term with a 5 Yr. Option to Renew) with
             Option to Purchase & Right of First Refusal

14.     Purchase the Real Estate with a 10-20% Down Payment Requirement (15-
         30 Year Loan Terms)

15.    Seller’s Transition & Compensation in New Practice

         A.  Seller to Transition the Practice for a Few Months or Become your Associate
              for Years

16.    Cash Flow and Collections of the Practice Will Dictate How Many Dr. Days
         the Practice Supports

17.    Most Sellers are Paid Like an Average Associate Would be Compensated -
        % of Collections/Production

18.    Guarantor, Co-signer & Pledging Collateral

         A.  Most Local Banks & SBA are Asset Based Lenders and Will Put Liens on
              Real Estate, Securities & Checking Accounts

         B.  Lenders Sometimes Require Guarantors for Borrowers with Credit Issues,
              Inadequate Income/Production

19.     Levels & Practice Cash Flow Inadequacies

20.   Obtain Experienced Dental Experts for: Legal, Accounting, Brokerage,
         Management and Borrowing Needs

         A.  Tax Consequences to Purchase a Practice or Start-up (Please consult
              with your CPA & Tax Advisor)

21.   Section 179 Equipment Only “Write-Offs”

22.   Supplies/Instruments are Immediately Expensed

23.   Goodwill, Patient Records & Files and Covenant Not to Compete are
         Depreciated Over 15 Years

24.   Leasehold Improvements are Depreciated Over 39 Years