I am so depressed after i have learned how i was getting paid as a dentist...

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Daurang said:
Obama yesterday announced spending $2.3 billion to create 17,000 new "green jobs." That's $135,000 per job! Maybe mrlantern can apply for this well paying job. Which union do I join if I want this job?
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ah yes. everything was great before Obama was elected. what was this thread about again? :hijacked:
 
Oracle DMD said:
ah yes. everything was great before Obama was elected. what was this thread about again? :hijacked:
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Obama was the one that announced it on Friday; would it make you happier if I lied and said Geithner or Bush or OracleDMD or my mother announced it instead? Quite a few students here already feel ripped off by the private sector so they should go chill in the government sector ripping off others instead. Honestly, I wouldn't mind spending the rest of my life doing just that.
 
NOsaintsfan said:
I agree with your sentiments however I take exception with your idea that if a business is operated with the idea of making profit this means they will "cut corners and screw patients".

Dentistry and medicine is already not like any regular business. Have you ever heard of malpractice? Its there as one form of protection for consumers (patients) from the evil greedy care giver that cuts corners to only make a profit.

There is another concept in health care that your missing that applies to most business as well. Its the force of competition. For example why do some people buy one car brand over another? Perceived difference in quality? Preference? Style? These are factors that work in the business of dentistry as well. Believe me word of mouth accounts for alot. Just as no one is forced to work anywhere in this country, consumers (patients) are not forced to go to any specific health care provider.

If your a good dentist and do quality work word will spread. By the same token if your a shotty dentist and "cut corners and screw patients" then word will spread of this as well. This is no different than most businesses. However since dentistry is not like most businesses you also can/will get sued. This can lead to higher practice costs (increased malpractice premiums) or possible revoke of your liscense.

Bringing this full circle back to the OP and the origional track of the thread. You didn't take the DAT or the step exams without studying did you? When you take a job make sure you study the pay averages for the region and have a good idea of what your worth before you agree to an employment contract. Once you agree to work for someone don't be upset when you find out how much you "could have got" or how much your boss is making off of you. YOU HAD A CHOICE.
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I agree with you. I didn't say making profit means you automatically cut corners and screw patients. I said when that becomes your sole interest and you go to an extreme (which we are all well aware, there are dentists that do that) then you begin to hurt people.

Actually being business minded is good -- makes you efficient.

I'm more worried about these EXTREME business minded folks who treat everything as dollars and cents. A lot of medicine is screwed because of doctors with this mentality. A mentality where one will order unnecessary tests and therapies that are questionable in their effectiveness. So the treatment methodology is technically legal and free of lawsuits, but it can indeed be seen as too much. See this article for what I'm talking about, http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande

I'm not saying lets all go back to the "old way" but surely there should be ethical way of doing business, right?
 
DentStudent2010 said:
NO!

We are not talking about if this person owned his own practice and made 400k.

Were discussing that this person went and worked for another dentist who already had a business.

Adding an additional dental associate does not add ass this enormous overhead that you are referring to. The overhead was already there!!!
the new dental associate is adding value and dollars that were not present before.

dont be ignorant!
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How many associates have you had exactly? Have you actually owned a practice yet? I've had 3 associates and 2 practices and I can tell you that bringing in an associate does increase your overhead. At $400,000 per year with an average overhead of 65% even if the OP owned the practice he would only be making $140,000 pre-tax. Unless you have some real experience in this why don't you sit back and have a nice tall glass of shut the **** up and learn something
 
I graduated 2002 from NYU. I did 1 year residency from VA hospital (NJ) and I was working at this one office. they were paying me 35% collection with $400 guarantee per day. I would prep 3 crowns for PFM on Friday. since I worked at other office on sat.day, I would return following week. then I would never see that patient again. I asked the front girl where this patient was, and she said, oh Dr. XXXX( which is the owner) cemented those crown for you.
Then I didn't get pay for the 3 crowns. It turned out that he only paid me $400
guarantees. this is the reality. Then I was so upset and came out and took over practice by using the broker. I think that was the best thing ever happen to me. I took over 3 chair office, old Dr. position at the hospital, and over 90% of his patient. he was nice enough to stick with me for 6 months. he introduced me to all of his patients, and wrote letter and hand signed over 1000 letters. ever since then its been all good. I have been in that practice since 2003, my loan is almost over since business loan is all 7 years. I would love to help everyone who needs help making that first step. you may e-mail me here or at [email protected]
but never open new practice from scratch. I would never recommend that to anyone.
 
scapleman said:
I started a job as a General Dentist for this practice, where the owner of the practice doesn't practice but collects the money from all 7 of his practices.

When I was interviewed, I was told I would get paid, $450/ day and 35% of collections at the end of each month....so I thought, I would get what I was told, but after working for three weeks, I was told by the office manager my collections were around $30,000.00, so I assumed I would get 35% after lab fees, etc. Meaning I work 4days/ week/4weeks/month=$7200/month.

So, after lab fees 7% was taken from the $30,000, it leaves the collection amount to $27,900 so they took 35% of that which came out to $9765. So, my 35% collection for the month was determined by subtracting the daily $450/day salary($7200/month).....$9765-$7200=($2565 is my 35% monthly collection)....CAN YOU BELIEVE THAT?...I just finished residency this year and this is what I am getting paid, by assuming so much RISK.

Do you see how much money I have to make this guy to get my salary. If I can make my monthly salary in a couple of days based on cash payments(credit cards, cash, etc. by patients), then I could make some okay money?....besides, i just wanted to share this to students and to get some up lifting spirit from some specialist or dentist.

I am so depressed, and I can use a word of encouragement.

Thank You, and Happy New Year Guys!
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I graduated 2002 from NYU. I did 1 year residency from VA hospital (NJ) and I was working at this one office. they were paying me 35% collection with $400 guarantee per day. I would prep 3 crowns for PFM on Friday. since I worked at other office on sat.day, I would return following week. then I would never see that patient again. I asked the front girl where this patient was, and she said, oh Dr. XXXX( which is the owner) cemented those crown for you.
Then I didn't get pay for the 3 crowns. It turned out that he only paid me $400
guarantees. this is the reality. Then I was so upset and came out and took over practice by using the broker. I think that was the best thing ever happen to me. I took over 3 chair office, old Dr. position at the hospital, and over 90% of his patient. he was nice enough to stick with me for 6 months. he introduced me to all of his patients, and wrote letter and hand signed over 1000 letters. ever since then its been all good. I have been in that practice since 2003, my loan is almost over since business loan is all 7 years. I would love to help everyone who needs help making that first step. you may e-mail me here or at [email protected]
but never open new practice from scratch. I would never recommend that to anyone.
 
mike3kgt said:
40,000 a month x 12 months = 420,000

420,000 * 30% production/collection = $126,000 gross (assuming you worked every week and only took vacation on weekends)

Sorry man, if you think you should be taking home 300k just because you produce 400k for your senior doc, then you are in for a very very hard reality when you graduate and start looking to get a job (or purchase a practice).
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I was reading through the posts and was surprised no one pointed this out...

40,000/month x 12months/year = 480,000 a year!!

* 30% = 144,000 gross!

yipee!
 
Simiam said:
I was reading through the posts and was surprised no one pointed this out...

40,000/month x 12months/year = 480,000 a year!!

* 30% = 144,000 gross!

yipee!
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$400,000 is a pretty low gross for a general dental practice.
 
The Hammer said:
$400,000 is a pretty low gross for a general dental practice.
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Levin practice survey 2009 average gross production(not including hygiene department) in most demographics for GP is $600,000/year. This is a number based on most out 5 or more years(only around 12% of the dentist surveyed had been practicing less than 5 years). If you can produce 400k your first or second year out you are doing OK.

Now this number is based on a 1 doc practice. You bring in a second doc you see his/her production average anywhere from 50-200k less.
 
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The Hammer said:
The last 7 years of my practice I did nothing but full mouth restoration, fixed and removable. Insurance wasn't an issue because at a $1000 limit the treatment usually ran pass that at exam phase.

My patients were a mix of about 50% blue collar workers and 50% professionals (lawyers, accountants, other dentists and their wives etc). Of all of those my favorites were the "blue collar" workers. The always showed up early, paid promptly in cash and were super appreciative for what you were doing.

To add a little more fuel to the fire did you know that the ADA reports that only about 6% of dentists have enough money to retire when they reach retirement age?
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I thought you are applying to dental school as we speak???
 
Seems like all you guys have good working experience, which state would you suggest for a new grad person?? California or texas or arizona?? Due to the bad economy, all states are looking the same😡 Don't now where to apply for jobs !!
 
NEWDDS said:
Seems like all you guys have good working experience, which state would you suggest for a new grad person?? California or texas or arizona?? Due to the bad economy, all states are looking the same😡 Don't now where to apply for jobs !!
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From what I hear, Texas. But then again, you go where you (and more importantly, your wife/husband/family) will be happy.
 
NEWDDS said:
Seems like all you guys have good working experience, which state would you suggest for a new grad person?? California or texas or arizona?? Due to the bad economy, all states are looking the same😡 Don't now where to apply for jobs !!
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Haven't had a chance to look at it myself, but I understand that the ADA has some survey data on dentists per capita etc. which would give you an idea of where there is the least competition. You balance this with lifestyle (e.g. northern alaska vs nyc) and maybe this would be a starting point?

I'm a first year so this is a little beyond me at the moment...
 
Based on the salary ranges given, what is retirement like for general dentists and specialists???

Like what age do they generally retire, what amount in the bank, what other benefits are possible, etc? Any ballpark figures and ideas would help.

Cheers.
 
Also, the ADA and dentist retirement article...is that the one from 1995?

If so, does anyone know if the wealth calculation includes the price of the home they live in, and most likely continue to live in after retirement?

Thanks.
 
It's all relative to your speed, skill, williness, and patient flow!! 40K per month is not outrageously high or low but most likely average for starting dentists. It's not everyday you'll be preping crowns, cementing them, doing endo/implants, etc.

A typical day is 3-4 exams, 2-3 restorative, 1-3 recall, 1-2 cleanings...lol
 
xhamburgersamx said:
It's all relative to your speed, skill, williness, and patient flow!! 40K per month is not outrageously high or low but most likely average for starting dentists. It's not everyday you'll be preping crowns, cementing them, doing endo/implants, etc.

A typical day is 3-4 exams, 2-3 restorative, 1-3 recall, 1-2 cleanings...lol
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How do you know this? What makes you think 40k/month is normal for a starting dentist?
 
Does anyone here from southern california know about the associate market situation in southern california? According to my researches, almost all the practices that are offering a position have the same problem-high turn over rate. In today's economy, most practices are saturated with their own existing labor and do not need to share the profit with other associates. So, it has to do with the ****ty position that nobody wants to be a part in. Especially in southern california, most offices hiring are the ones who need associates to be doing medicaid, or HMO's. Seems to me that the owners want to hire an "outstanding" dentist and pay him/her really cheap. Basically you have to be good enough for them to ripe you off and exploitate you.

Most offices are offering around 25% based on production or about $400 a day. How possibly can you afford to pay your student loan off with this kinda of salary?

Anyone has different or similar opinions?
 
okay, I didn't read all the posts, just the first few...

Omg he makes close to 10k a month and he isn't happy? LMAO I WANNA BE A DENTIST SO BAD. this thread inspires me !!!! STICKYYYYYY THISSSSS
 
psiyung said:
ur depressed making a six figure salary and working 4 days a week? What's the world coming to?
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LOL the OP is such a tool. You work FOUR days a week. You have none of the stress and hassle of running and managing your own practice. All you have to do is go to work, do your job, and come home... and you are STILL pulling in 6 figures. You are ONE year removed from school.

Grow up and enter the real world will you.
 
I love how every "why do you want to go into dentistry" thread in this forum bashes anyone who mentions doing dentistry for money. Everyone always mentions how they loooove to help people and teeth and to work with their hands, and money plays no factor whatsoever.

yet 4 years later, when a thread about money pops up, everyone cries about how theyre only making 100k+ and how horrible that is.
 
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americanpierg said:
I love how every "why do you want to go into dentistry" thread in this forum bashes anyone who mentions doing dentistry for money. Everyone always mentions how they loooove to help people and teeth and to work with their hands, and money plays no factor whatsoever.

yet 4 years later, when a thread about money pops up, everyone cries about how theyre only making 100k+ and how horrible that is.
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all the complaining and frustration probably stems from having unrealistic salary expectations when we were predents or even dental students. There are few classmates of mine who pictures making 150K right out of school, then buying nice cars, etc...in california 😱 Adding to that they think their monthly loan repayment will be only around 1K coming from one of the most expensive schools in NY. This type of mentality will drive nearly anyone to complain and fuss about their income once they are out in the real world.
 
zriceman said:
all the complaining and frustration probably stems from having unrealistic salary expectations when we were predents or even dental students. There are few classmates of mine who pictures making 150K right out of school, then buying nice cars, etc...in california 😱 Adding to that they think their monthly loan repayment will be only around 1K coming from one of the most expensive schools in NY. This type of mentality will drive nearly anyone to complain and fuss about their income once they are out in the real world.
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USC and NYU are two ripe-off type of school anyways. I think, another factor is that, a lot of predent or even dental students were brain washed by their schools how rich they will be. Guess what? Schools are not goona lose their ferking money because of the economy. another thing is, if you went to one of those cheap state funded schools, you should be ok. On the other hand, if you came out of dent school with 300000 in debt, you are FXXKED.
Botton line, you ought to invest money if you goona be rich, dentistry will not do it.
 
beijingdds said:
USC and NYU are two ripe-off type of school anyways. I think, another factor is that, a lot of predent or even dental students were brain washed by their schools how rich they will be. Guess what? Schools are not goona lose their ferking money because of the economy. another thing is, if you went to one of those cheap state funded schools, you should be ok. On the other hand, if you came out of dent school with 300000 in debt, you are FXXKED.
Botton line, you ought to invest money if you goona be rich, dentistry will not do it.
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Wow, 300k and you're ****ed? Not by a long shot there chief. Two years out of school I went close to 500k in debt and pulled it out in 3 years. In 2003 I went a whopping 915K in debt to open a new office. My monthly note on was a little less than 15k a month and I turned that trick in about 4 years. If you want it you can do it but if you are content to whine and bitch then I hope you enjoy being poor.

And goddamnit if you are a DDS learn how to spell! Goona? Ripe-off? WTF?
 
The Hammer said:
Wow, 300k and you're ****ed? Not by a long shot there chief. Two years out of school I went close to 500k in debt and pulled it out in 3 years. In 2003 I went a whopping 915K in debt to open a new office. My monthly note on was a little less than 15k a month and I turned that trick in about 4 years. If you want it you can do it but if you are content to whine and bitch then I hope you enjoy being poor.

And goddamnit if you are a DDS learn how to spell! Goona? Ripe-off? WTF?
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Can we say ownage?
 
Hm.

It is all relative.

I find it odd that the OP is upset about his or her current salary.
Ask the internist down the street if he/she would like a 6 digit salary working 4 days a week, with your minimal to nonexistent call and minimal malpractice insurance costs.

I don't know your student loan status, but even that can be mitigated thru creative refinancing.

I doubt you'll find many sympathetic ears.

If this isn't your dream, fine. Get back in the game. Remember what got you this far. Hard work.

Hm. My first post and I'm on the soapbox. :laugh:
 
Primary said:
Hm.

It is all relative.

I find it odd that the OP is upset about his or her current salary.
Ask the internist down the street if he/she would like a 6 digit salary working 4 days a week, with your minimal to nonexistent call and minimal malpractice insurance costs.

I don't know your student loan status, but even that can be mitigated thru creative refinancing.

I doubt you'll find many sympathetic ears.

If this isn't your dream, fine. Get back in the game. Remember what got you this far. Hard work.

Hm. My first post and I'm on the soapbox. :laugh:
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Good post, no doubt forged through experience. In the United states only 1.93% of all households have an income that exceeds $250,000. That means that if your office produces $675,675 a year then you are in the top 2% incomes of the RICHEST COUNTRY IN THE HISTORY OF THE WORLD. Pretty sweet ride if you ask me
 
The Hammer said:
Good post, no doubt forged through experience. In the United states only 1.93% of all households have an income that exceeds $250,000. That means that if your office produces $675,675 a year then you are in the top 2% incomes of the RICHEST COUNTRY IN THE HISTORY OF THE WORLD. Pretty sweet ride if you ask me
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Heck yeah! I'll take that any day.
 
The Hammer said:
Wow, 300k and you're ****ed? Not by a long shot there chief. Two years out of school I went close to 500k in debt and pulled it out in 3 years. In 2003 I went a whopping 915K in debt to open a new office. My monthly note on was a little less than 15k a month and I turned that trick in about 4 years. If you want it you can do it but if you are content to whine and bitch then I hope you enjoy being poor.

And goddamnit if you are a DDS learn how to spell! Goona? Ripe-off? WTF?
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How did you pull off to pay your debt in three years?
 
dentheartthrob said:
How did you pull off to pay your debt in three years?
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I worked my ass off. The practice I bought was grossing a little over 400K a year. The doctor I bought from would buy a years worth of supplies at the end of every year so my first year I really didn't buy any supplies so that reduced my overhead by about 8% right off the bat. I raised the fees which were ridiculously low and I hired an associate. The office also had no computers so I set up a network and was one of the first dentists in the country to use Dentrix which at that time had just been released (1995). I was able to raise collections to 98% and increase the gross to about 650k in 1996 and then somewhere in the 700 to 750 for 97-98. I basically used my take home to reinvest in the practice and to pay off my debt. We lived off my wife's salary during those 3 years which was about $65,000. Once I paid off the office debt I went out and bought a new Cobra 👍

Oh and to be completely honest, I was able to pay off about $450-460K in those 3 years. In 1996 my dad died and left me about $160K. I had borrowed about $80k from my mom to get computers and make a down payment on the office so I paid her back. Then I took the other $80k and bought a piece of lake property with $60K of it and the other $20k I invested in my retirement
 
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The Hammer said:
I worked my ass off. The practice I bought was grossing a little over 400K a year. The doctor I bought from would buy a years worth of supplies at the end of every year so my first year I really didn't buy any supplies so that reduced my overhead by about 8% right off the bat. I raised the fees which were ridiculously low and I hired an associate. The office also had no computers so I set up a network and was one of the first dentists in the country to use Dentrix which at that time had just been released (1995). I was able to raise collections to 98% and increase the gross to about 650k in 1996 and then somewhere in the 700 to 750 for 97-98. I basically used my take home to reinvest in the practice and to pay off my debt. We lived off my wife's salary during those 3 years which was about $65,000. Once I paid off the office debt I went out and bought a new Cobra 👍

Oh and to be completely honest, I was able to pay off about $450-460K in those 3 years. In 1996 my dad died and left me about $160K. I had borrowed about $80k from my mom to get computers and make a down payment on the office so I paid her back. Then I took the other $80k and bought a piece of lake property with $60K of it and the other $20k I invested in my retirement
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Great story but not many of us will be able to practice in the state called cusp of carabelli - must be a gold mine..lol :laugh:
 
The Hammer said:
I worked my ass off. The practice I bought was grossing a little over 400K a year. The doctor I bought from would buy a years worth of supplies at the end of every year so my first year I really didn't buy any supplies so that reduced my overhead by about 8% right off the bat. I raised the fees which were ridiculously low and I hired an associate. The office also had no computers so I set up a network and was one of the first dentists in the country to use Dentrix which at that time had just been released (1995). I was able to raise collections to 98% and increase the gross to about 650k in 1996 and then somewhere in the 700 to 750 for 97-98. I basically used my take home to reinvest in the practice and to pay off my debt. We lived off my wife's salary during those 3 years which was about $65,000. Once I paid off the office debt I went out and bought a new Cobra 👍

Oh and to be completely honest, I was able to pay off about $450-460K in those 3 years. In 1996 my dad died and left me about $160K. I had borrowed about $80k from my mom to get computers and make a down payment on the office so I paid her back. Then I took the other $80k and bought a piece of lake property with $60K of it and the other $20k I invested in my retirement
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your story is great, but times are different now, so your definitely not the norm. i just recently bought a practice, and owning a practice is definitely much more rewarding that being an associate; but there is also more stress. i have about ~400K in debt between dental school debt and private loan (from parents, so luckily no interest) for the practice. my goal/budgeting is to try to pay it off within 5 years (or even quicker, depending on how the practice does). the part that worries me is that there is an aspen dental opening up next door, and the slow economy can definitely affect business. however, even in the slowest of times i still make more than i did as an associate; and i'm my own boss and dont have to share with anybody 🙂 the moral of the story; the real money and happiness is in owning your own place

omar
 
Nothing like those low interest/no interest mom dad loans....😉

I think I pissed my parents off too many times growing up.
 
The Hammer said:
I worked my ass off. The practice I bought was grossing a little over 400K a year. The doctor I bought from would buy a years worth of supplies at the end of every year so my first year I really didn't buy any supplies so that reduced my overhead by about 8% right off the bat. I raised the fees which were ridiculously low and I hired an associate. The office also had no computers so I set up a network and was one of the first dentists in the country to use Dentrix which at that time had just been released (1995). I was able to raise collections to 98% and increase the gross to about 650k in 1996 and then somewhere in the 700 to 750 for 97-98. I basically used my take home to reinvest in the practice and to pay off my debt. We lived off my wife's salary during those 3 years which was about $65,000. Once I paid off the office debt I went out and bought a new Cobra 👍

Oh and to be completely honest, I was able to pay off about $450-460K in those 3 years. In 1996 my dad died and left me about $160K. I had borrowed about $80k from my mom to get computers and make a down payment on the office so I paid her back. Then I took the other $80k and bought a piece of lake property with $60K of it and the other $20k I invested in my retirement
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Well done.
We have remarkably similar stories.
My dad passed a month before I graduated dental school.
Helped some with co-signed loans, but still was in the hole with loans and a buy-in.
Wife was a resident, so we lived poor for my 2 year residency and her 6 years.
I drove a POS with no AC and a window that wouldn't roll down for those years and lived in a little apartment, paid off everything in under 5.

The advice that they give you in school, I think it was in the first week, the "don't live like a dentist until you ARE a dentist" should be amended to "don't live like a dentist until you can manage your debt and/or pay it off".

Amazing how our bretheren so often forget the fundamentals!
 
OceanDMD said:
Nothing like those low interest/no interest mom dad loans....😉

I think I pissed my parents off too many times growing up.
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:laugh: yeah, hammer's story just isnt the norm anymore, getting your education paid for you is the norm right? hahaha good for dr. omar tho, i'm not hating on it! if happiness is owning your own practice, then being born well off must be euphoria! 🤣
 
Hey Hammer I had a couple of questions about your practice. Ok a quite a few. How long after school did you start your own practice? What were some of the fundamental questions you asked when looking? Dentist/patient ratio? Income of demographic? rural? urban? your own happiness in the location? Do you think you were lucky or was it a competitive advantage you had over your competitors? I am interested in your chain of logic that led you to the purchase of your successful practice and what you think were the important contributing factors to your success. I understand this is a lot of questions but I like your story but I am interested in being a success and will absorb any helpful info. you have to offer. Grazi and have a good one.
 
Oracle DMD said:
:laugh: yeah, hammer's story just isnt the norm anymore, getting your education paid for you is the norm right? hahaha good for dr. omar tho, i'm not hating on it! if happiness is owning your own practice, then being born well off must be euphoria! 🤣
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I have no idea what ur saying but I took out loans for dental school. I only borrowed from my dad to buy into a practice. So ya that helps out with the interest and everything, but at the end of the day I could have taken out a bank of America loan. Either way, you will see that most dentists do not own a million dollar practice after a few years (most never do). So my story is much closer to the norm. Just trying to set everybodys expectations to realistic. Hammers story is great and I don't doubt it's validity, but it's not the norm.
 
omaralt said:
I have no idea what ur saying but I took out loans for dental school. I only borrowed from my dad to buy into a practice. So ya that helps out with the interest and everything, but at the end of the day I could have taken out a bank of America loan. Either way, you will see that most dentists do not own a million dollar practice after a few years (most never do). So my story is much closer to the norm. Just trying to set everybodys expectations to realistic. Hammers story is great and I don't doubt it's validity, but it's not the norm.
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What exactly about my practice falls outside of the norm? That I took out a bank loan for $420K that was due in 5 years? The $80K I borrowed from my parents was to set up computers, buy my wife a new car (a Nissan Sentra that cost $11,500) and to get some operatory lights, a new compressor and a new autoclave. That still left me with the $420K I had to pay back to the bank and believe it or not my parents were charging me prime at the time on my loan. My wife and I had to sign a standard loan agreement with my parents. If my dad hadn't died I would have had to pay them back the entire amount in 7 years with the interest and believe me I would have rather had my father alive than the money I got from his life insurance policy. The only thing about my practice that falls outside the norm is that I worked my ass off and lived well within my means (e.g. my wife's salary) until I had paid off my debt. There isn't anything that I did that anyone on this board can't do as well.
 
Not to de-rail this thread, but since we have (atleast) 2 practicing dentists posting in it, I was wondering how exactly the loan process works for financing a new practice or a buy in.

Do you put 20% down like on a mortgage? Or is it 10% down? I have also seen advertisements from places such as Bank of America who offer 0 down financing for dentists and physicans. Or do you have the dentist you are buying into or from finance you and you pay him/her directly?

I was just wondering your views on this
 
The Hammer said:
What exactly about my practice falls outside of the norm? That I took out a bank loan for $420K that was due in 5 years? The $80K I borrowed from my parents was to set up computers, buy my wife a new car (a Nissan Sentra that cost $11,500) and to get some operatory lights, a new compressor and a new autoclave. That still left me with the $420K I had to pay back to the bank and believe it or not my parents were charging me prime at the time on my loan. My wife and I had to sign a standard loan agreement with my parents. If my dad hadn't died I would have had to pay them back the entire amount in 7 years with the interest and believe me I would have rather had my father alive than the money I got from his life insurance policy. The only thing about my practice that falls outside the norm is that I worked my ass off and lived well within my means (e.g. my wife's salary) until I had paid off my debt. There isn't anything that I did that anyone on this board can't do as well.
Click to expand...

whats outside of the norm is you. you were smart with your money (half my class bought new cars as soon as they graduated, because they're "doctors now"; all on credit of course). most people will not live within their means, and you also seem to be a good business man (most dentists are horrible at business). those factors combined lead to your success, and honestly with a little hard work and LIVING WITHIN YOUR MEANS, anybody can do the same.

to the above poster; it's always been that banks will finance you 100% and give you some working capital (usually no payments for a few months as well). however i've been hearing that a lot more are requiring some money down nowadays

omar
 
The Hammer said:
There isn't anything that I did that anyone on this board can't do as well.
Click to expand...

Not entirely true...I couldn't borrow $80K from my mom, as she has hardly enough to make ends meet. And we aren't in the mid-90's anymore...times are most definitely different. And I'm pretty sure finding a current dental practice without computers is about as easy as finding a unicorn.
 
Palmetto914 said:
Not entirely true...I couldn't borrow $80K from my mom, as she has hardly enough to make ends meet. And we aren't in the mid-90's anymore...times are most definitely different. And I'm pretty sure finding a current dental practice without computers is about as easy as finding a unicorn.
Click to expand...

I think what he means is that anyone can live below their means, pay off their debt as quickly as possible, and then buy a practice and make it productive.
 
BiomajorPreDent said:
I think what he means is that anyone can live below their means, pay off their debt as quickly as possible, and then buy a practice and make it productive.
Click to expand...

Exactly! Always remember your practice is your money machine. it is the one thing that should come first when it comes to your time and money.
 
omaralt said:
whats outside of the norm is you. you were smart with your money (half my class bought new cars as soon as they graduated, because they're "doctors now"; all on credit of course). most people will not live within their means, and you also seem to be a good business man (most dentists are horrible at business). those factors combined lead to your success, and honestly with a little hard work and LIVING WITHIN YOUR MEANS, anybody can do the same.

to the above poster; it's always been that banks will finance you 100% and give you some working capital (usually no payments for a few months as well). however i've been hearing that a lot more are requiring some money down nowadays

omar
Click to expand...

OK I understand what you are saying👍
 
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