How does one get the funds to buy into/own a practice when in debt?

[adamrose]

Curious pre-dent here.

Assuming I will most likely get into a private school if any and accumulate ~425k in loans before interest.. as if this isn't deterring enough.

I feel like my only hopes to a reasonably financially stable future would be opening a practice/buying into a practice right away in an unsaturated area (Is this true?)

if I was to do this, how would I accumulate the money needed to do this if I am 425k in the hole already??

thank you

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[Incis0r]

You could apply to some OOS-friendly schools; that will reduce the cost burden more. Consider the HPSP/NHSC/IHS scholarships?

425K w/ 6.9% interest...yikes...that's 4.9K/month for 10 yrs, 2.9K/month for 25 yrs, and 2.6K/month for 40 yrs. Ouch.

It can be really scary/stressful to have 425K of debt on your head, and then a practice loan on top of that. You'll be stressed and exhausted for years. Financial stability-wise....Idk, depends on how much you can live on per month.

Assume you make $10K/month (120K/yr)
10K
-2k taxes
-2k living (family, food, etc.)
-4.9k loans
= 1.1k for incidental medical expenses, discretionary income, etc. for 10 years....kind of rough.

This assumes you paid off the practice loan each month before drawing 120k for yourself. Of course, your income will increase over time as your practice goes, but I find it better to be conservative and enjoy unexpected windfalls rather than expect large financial success, bank on it, and then become stressed when things don't go your way.

You could get a little more breathing room by taking the loan out for longer, but then you'll pay more in interest and you'll be under the debt for most of your career.

Maybe consider loan repayment? They give you like $50K tax free/2 yr contract to work at a community health center. Decent salary as well.

 

[Incis0r]

Edited- Double Post Error.

 

[adamrose]

So basically... if I want to be a dentist, I have to be a peasant dentist?

 

[adamrose]

Edited- Double Post Error.

So Basically if I want to to be a dentist, I have to be a peasant dentist?

 

[Incis0r]

So basically... if I want to be a dentist, I have to be a peasant dentist?

Nope. That's not what I said. I said if you want to go to a 425K cost private dental school and insist on taking out the full cost of attendance in loans, THEN you have to tighten the belt considerably.

If you are willing to go to a state school, or try out for one of the scholarships I listed, or participate in loan repayment in conjunction with a less expensive school, then you'll be in a much better position.

 

[adamrose]

Nope. That's not what I said. I said if you want to go to a 425K cost private dental school and insist on taking out the full cost of attendance in loans, THEN you have to tighten the belt considerably.

If you are willing to go to a state school, or try out for one of the scholarships I listed, or participate in loan repayment in conjunction with a less expensive school, then you'll be in a much better position.

I am willing but I am also applying to dental schools with a 3.34cGPA and 3.15sGPA. currently studying for DAT but it makes it hard to continue motivation when I know that not getting into a NY state school is basically and getting into a private school would lead me to a bad life anyways

 

[krdeuce]

Join the military

 

[bjpenn]

This is what im doing- Find a good paying associate job until I feel knocked down debt enough and have some money saved.

Owning a practice out of school owing a mil can be done, but i bet that road would lead fast to hair loss and weight gain.

 

[oralcare123]

Add a family to that

 

[Hannah Banana]

Owning a practice out of school owing a mil can be done, but i bet that road would lead fast to hair loss and weight gain.

And debt gain, too. I wish the rate of my muscle gain can be like that.

 

[johnhancock1]

Take out another loan and use it to buy into or open a practice. Even though you have so much debt, banks will still loan to you because the percentage of dental practices that can't make their monthly payments is notoriously low. Now is not the time to be timid. You need money to make money. Or you can take the safe route and work corporate for years to pay off your loans. This is a defining moment in your life. Are you going to play it safe like so many do? Or are you going to take a logical risk and go for the top! And thus I leave you with this...

"Two roads diverged in a wood, and I...I took the one less traveled by, and that has made all the difference."

 

[DaleDoback]

Take out another loan and use it to buy into or open a practice. Even though you have so much debt, banks will still loan to you because the percentage of dental practices that can't make their monthly payments is notoriously low. Now is not the time to be timid. You need money to make money. Or you can take the safe route and work corporate for years to pay off your loans. This is a defining moment in your life. Are you going to play it safe like so many do? Or are you going to take a logical risk and go for the top! And thus I leave you with this...

"Two roads diverged in a wood, and I...I took the one less traveled by, and that has made all the difference."

I know some financial gurus (Dave Ramsey is one) who aggressively say that if you can't pay for graduate school, then you shouldn't go. I think that's ridiculous. This is an investment in your life. Make it.

I'm finishing my residency with around 350k in loans. I'll buy into my practice in 1 year that will be close to a million dollars. It would have been great if I would have done the military route, but I didn't think it was best for my family. So now I'll be paying student loans and my practice loan........and my financial advisor says we are in great shape. I'm not going to go buy the biggest house yet, but my family and I are very comfortable. We have chosen a great profession. Don't let fear prevent you from chasing it.

 

[ButlerCard]

I know some financial gurus (Dave Ramsey is one) who aggressively say that if you can't pay for graduate school, then you shouldn't go. I think that's ridiculous. This is an investment in your life. Make it.

I'm finishing my residency with around 350k in loans. I'll buy into my practice in 1 year that will be close to a million dollars. It would have been great if I would have done the military route, but I didn't think it was best for my family. So now I'll be paying student loans and my practice loan........and my financial advisor says we are in great shape. I'm not going to go buy the biggest house yet, but my family and I are very comfortable. We have chosen a great profession. Don't let fear prevent you from chasing it.

I was just curious if you would be willing to share a little bit morE about what your plans for paying everythioff off and how much your expecting to be able to pay. I'm currently a third year and will be graduating with close to 400,000 and I'm obviously anxious about it but also just curious what my life is going to be like for the first couple of years. Thanks for the input!

 

[I want to go to there]

Get loan from the bank. Heard dentists are like #2 people banks readily lend their money to because they are low risk. When you make 2-300k+ per year off your own practice, loan isn't that scary anymore.

 

[DaleDoback]

I was just curious if you would be willing to share a little bit morE about what your plans for paying everythioff off and how much your expecting to be able to pay. I'm currently a third year and will be graduating with close to 400,000 and I'm obviously anxious about it but also just curious what my life is going to be like for the first couple of years. Thanks for the input!

You just have to convince your wife that you haven't "made it" just quite yet. Live like a resident/dental student for 5 more years and really put a dent in the loans. There are still places that you can enjoy life. You can't have everything yet (house, car, vacations), but pick one that you want to spend a little more money on. For me, it's vacations with my family. I'm not going to skip a vacation to throw $5000 more at a student loan. So I choose to have at least one great vacation per year. It definitely costs me more than that $5000 after interest builds up, but that's a sacrifice I'm willing to make.

#1. Get a financial planner with a dental/doctor background that isn't terrified by your student loans. They will help you immensely. We consolidated one of mine to a 3% interest rate so we are making minimum payments on that one. A financial planner is your first step.