Is it possible for a dentist to have another career?

[exderwall]

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Out of curiosity,
Can a dentist run his or her own practice at the same time own and operate another professional office for example, engineering consulting firm?
Anyone knows?

 

[dentalprodigy]

Ummmm why? I don't think so because managing a dental practice is not easy as it is.

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[Ostracized]

I know of a dentist lawyer who maintains his licensing in both professions. No reason why not, but little reason to do so.

 

[HBaller]

I know a few dentists that are heavy into real estate. Actually, pre-recession many dentists and dental specialists were big into real estate... I know an orthodontist that is also a stock broker. I have seen a trend that dentists have a love for entrepreneurship and open businesses of all sorts! I would love to own other business' as well. 🙂 People can certainly have more than one passion.

 

[DrDDSman]

I know a few dentists that are heavy into real estate. Actually, pre-recession many dentists and dental specialists were big into real estate... I know an orthodontist that is also a stock broker. I have seen a trend that dentists have a love for entrepreneurship and open businesses of all sorts! I would love to own other business' as well. 🙂 People can certainly have more than one passion.

This is true. True because experienced dentists generally have the capital to be able to invest in these markets. Tough to see a recent grad be able to flip houses in this market with 250+k in student loans.

Some dentists also own the building where they practice and lease out the other office space. Not a bad way get some passive income, but I wouldnt call it second career.

There are dentists that work in private practice and do consulting for dental device comapanies, but thats within the same field. I personally dont know any one with a concurrent second career.

 

[Daurang]

This is true. True because experienced dentists generally have the capital to be able to invest in these markets. Tough to see a recent grad be able to flip houses in this market with 250+k in student loans.

The days of flipping houses are long gone. Some of us are buying shortsale/foreclosed properties for 30 cents on the dollar and then renting them out for 20% return. I'm up to 14 properties and trying desperately but having difficulty finding more to boost it up to 20. Once I reach my goal of 20, it'll be an very early and comfortable retirement.

 

[El Salvaje]

Assuming that you are a dentist who owns his/her practice where did you find the capital to buy 14 houses and rent them out given the loans on your business and schooling that needed to be paid back? How do you find time to manage your properties and you business simultaneously? How long did it take for you to break even to where the rent your tenents are paying stopped going towards the house payments and started going into your pocket?

Sorry for all the questions but I didn't think this would feasible given the immense time requirements it takes to not only run a business but actually practice in it as well.

 

[yappy]

Why flip houses? The rental market is really good now as home loans have tightened up. I think it would be cool to have a couple of duplexes with positive cash flow (even if it was modest) as a real estate investment.

 

[Daurang]

Assuming that you are a dentist who owns his/her practice where did you find the capital to buy 14 houses and rent them out given the loans on your business and schooling that needed to be paid back? How do you find time to manage your properties and you business simultaneously? How long did it take for you to break even to where the rent your tenents are paying stopped going towards the house payments and started going into your pocket?

Sorry for all the questions but I didn't think this would feasible given the immense time requirements it takes to not only run a business but actually practice in it as well.

I built my practice straight out of school twelve ago with $80k loan at 14% interest from Schein. The practice was profitable from day one so I paid off all business debts and school loans in five years. After that it's pure profit and wealth accumulation. At the peak of the housing bubble, I bought four properties (with 20% down) that are now worth 30%-40% less if I sell; so I rent them out and pay $700 monthly to make up for mortgage shortfall. But there is a huge upside to this housing collapse. I was able to buy with cash a whole bunch of foreclosed properties at 70% off to rent out for huge profits, which more than make up for the other shortfalls. The management company take care of the properties and deal with the tenants. I have never even seen most of my homes since they're all out of state.

 

[A6project]

#winning

 

[Sublimazing]

I built my practice straight out of school twelve ago with $80k loan at 14% interest from Schein. The practice was profitable from day one so I paid off all business debts and school loans in five years. After that it's pure profit and wealth accumulation. At the peak of the housing bubble, I bought four properties (with 20% down) that are now worth 30%-40% less if I sell; so I rent them out and pay $700 monthly to make up for mortgage shortfall. But there is a huge upside to this housing collapse. I was able to buy with cash a whole bunch of foreclosed properties at 70% off to rent out for huge profits, which more than make up for the other shortfalls. The management company take care of the properties and deal with the tenants. I have never even seen most of my homes since they're all out of state.

I'm in no position to do this, but did you buy properties and then find a management company? Or did you buy them from a management company that just took your capital and pay you a portion of the rent?

 

[wired202808]

I'm in no position to do this, but did you buy properties and then find a management company? Or did you buy them from a management company that just took your capital and pay you a portion of the rent?

Mgmt companies have been around forever. You dont use them to buy a house, you use them to maintain the property and collect rent. They're essentially the middlemen and they collect around 5 to 10% of the monthly rent as fees. In return they offer landlord like qualities i.e. maintenance, upkeep, etc. They make your life easy, but I wouldnt trust them 100% to do a good job. After all they have tons of units and its a matter of time before something can go wrong. Plus its not their property and as a matter of fact most people take care of their property in a more efficient way when they own it. But if you can do the research and find a good company that has a solid background and history it would be beneficial.

 

[HBaller]

The days of flipping houses are long gone. Some of us are buying shortsale/foreclosed properties for 30 cents on the dollar and then renting them out for 20% return. I'm up to 14 properties and trying desperately but having difficulty finding more to boost it up to 20. Once I reach my goal of 20, it'll be an very early and comfortable retirement.

I completely disagree with you. More millionaires have been made in bad economies than any other time in history and majority of them are through real estate investments. It also depends on where you are trying to flip houses... There are many contributing factors that make this successful - knowledge of real estate inside and outs, motivation, know how to wholesale real estate, find the right investors, finding the right property, etc... Most importantly, you need to be super saavy😎

 

[HBaller]

Mgmt companies have been around forever. You dont use them to buy a house, you use them to maintain the property and collect rent. They're essentially the middlemen and they collect around 5 to 10% of the monthly rent as fees. In return they offer landlord like qualities i.e. maintenance, upkeep, etc. They make your life easy, but I wouldnt trust them 100% to do a good job. After all they have tons of units and its a matter of time before something can go wrong. Plus its not their property and as a matter of fact most people take care of their property in a more efficient way when they own it. But if you can do the research and find a good company that has a solid background and history it would be beneficial.

From my experience, I would never use a management company unless you have over 20 properties or you have no organizational qualities...

My hubby is an amazing handy man. He has a natural ability to fix things even if he has never fixed them before. If he can't, then we have a handyman that we have to do things we can't. Many management companies use extremely overpriced people to do repairs and sometimes without your knowledge. Just make sure it's in your contract that you have to consent to any repairs before they are done if you use a company.

Also, the fees that they charge take away from your profit. Many companies also charge one months rent up front in addition to the percentage the charge per month. Totally not worth it, in my opinion.🙂

 

[ortho lurker]

Management companies are great when you don't live in the same state as the real estate property.

 

[wired202808]

From my experience, I would never use a management company unless you have over 20 properties or you have no organizational qualities...

My hubby is an amazing handy man. He has a natural ability to fix things even if he has never fixed them before. If he can't, then we have a handyman that we have to do things we can't. Many management companies use extremely overpriced people to do repairs and sometimes without your knowledge. Just make sure it's in your contract that you have to consent to any repairs before they are done if you use a company.

Also, the fees that they charge take away from your profit. Many companies also charge one months rent up front in addition to the percentage the charge per month. Totally not worth it, in my opinion.🙂

opportunity cost... why would I spend time fixing sinks to save $200 bucks and spend 5 hours doing it vs. working as a dentist making $100 an hour and thus earning $500 for 5 hours and still have $300 to mess around with. DYI is fun on TV, in real life its a huge waste of time.

 

[Daurang]

opportunity cost... why would I spend time fixing sinks to save $200 bucks and spend 5 hours doing it vs. working as a dentist making $100 an hour and thus earning $500 for 5 hours and still have $300 to mess around with. DYI is fun on TV, in real life its a huge waste of time.

Exactly. You will never make as much money fixing houses as fixing teeth. You can do a root canal in half an hour for $600...how much can you save in half an hour mowing grass?

 

[wired202808]

Exactly. You will never make as much money fixing houses as fixing teeth. You can do a root canal in half an hour for $600...how much can you save in half an hour mowing grass?

👍 So lets say you charge $2k a month for rent that means you earn 24K after a year and the company gets 2.4K + 2K as its fees = 4.4K. So you take an 18% haircut, but that saves you the time and stress of doing anything. You're basically earning 82% while doing nothing, you can use that time to spend with family or go on vacation. I wouldnt want to mess around with stuff I have no knowledge about anyway i.e. plumbing or hardcore repairs. Also repairs tend to happen during the day on weekdays, why would I give up working on patients to run and fix a sink? Of course I'm overpaying for the mgmt company (otherwise they wouldnt make money) but I get the peace and mind to know that I dont expect any phone calls from them regarding stuff that I have to fix 🙂

 

[Dgeorg6]

👍 So lets say you charge $2k a month for rent that means you earn 24K after a year and the company gets 2.4K + 2K as its fees = 4.4K. So you take an 18% haircut, but that saves you the time and stress of doing anything. You're basically earning 82% while doing nothing, you can use that time to spend with family or go on vacation. I wouldnt want to mess around with stuff I have no knowledge about anyway i.e. plumbing or hardcore repairs. Also repairs tend to happen during the day on weekdays, why would I give up working on patients to run and fix a sink? Of course I'm overpaying for the mgmt company (otherwise they wouldnt make money) but I get the peace and mind to know that I dont expect any phone calls from them regarding stuff that I have to fix 🙂

more than half of that 24k would go to the mortgage on the house you rented out though correct?

I too am interested in making some real estate investments later on in life.. My dad owns 5 other houses besides his home and he is making an alright profit from it.. Any profit is better than no profit, ay?

 

[Daurang]

more than half of that 24k would go to the mortgage on the house you rented out though correct?

I too am interested in making some real estate investments later on in life.. My dad owns 5 other houses besides his home and he is making an alright profit from it.. Any profit is better than no profit, ay?

Yes, if you bought at height of bubble like I did and only downed very little. You may end up having to pay a lot extra out of pocket every month to make up for shortfall. Most flippers and small wannabe investors can't handle that long term cost so they dump it, especially in a nonrecourse state like Cali where the banks cannot go after them for the difference.

But if you bought cheap bankowned properties with cash, your return is 20% even after management fees. That's what I'm trying to load up on before the party end. The news out today is promising...foreclosures in 2012 is gonna be 15 % higher this year than last year.

 

[DrDDSman]

Yes, if you bought at height of bubble like I did and only downed very little. You may end up having to pay a lot extra out of pocket every month to make up for shortfall. Most flippers and small wannabeinvestors can't handle that long term cost so they dump it, especially in a nonrecourse state like Cali where the banks cannot go after them for the difference.

But if you bought cheap bankowned properties with cash, your return is 20% even after management fees. That's what I'm trying to load up on before the party end. The news out today is promising...foreclosures in 1012 is gonna be 15 % higher this year than last year.

Daurang, 20% after taxes, fees and insurance and other misc expenses? Beats the return of the avg 401k any day.

 

[yappy]

I like this conversation. I love the idea of owning some properties that have a positive cash flow. If some of the established guys dont mind sharing - for those who own alot of property - how much does the rental property income (rent) match up against your dental practice's income?

20% of it? 50&?!! 100%!!!!!??????😱

 

[dent2015]

delete

 

[Daurang]

how does one go about finding foreclosed properties, in another state, having never seen the property in person?

There's already a huge thread in dentaltowndotcom and fatwalletdotcom on real estate investment.

 

[Wakaaa]

I'm pretty sure there are dentists that still run their family business such as a restaurant or gas station, but usually they just lease it out instead because it takes a lot of time, unless we're talking about laundromats.