Need advice from relatively New Dentists

[dentheartthrob]

This is a question to those who've graduated recently and incurred a substantial amount of student loan debt.

So here's my situation 2.5 years out of school. Doing a standard 20 year repayment plan with my student loans (almost 300K) . I pay a little more than the usual each month (roughly 2500) . Income is stable if not great; have managed to save a good chunk in my savings. I'd like to purchase a house soon and ultimately have my own clinic. But my predicament right now is that my monthly for my student loan is like a paying a home mortgage in itself. Wife is a stay at home mom, taking care of little ones. And if I were to start the practice first, banks would require two years of income from the practice prior to purchasing a home. However, betting on the market that that house prices would increase for the next years, I could use the equity to finance a clinic of my own in the future. Renting and leasing are also options, atleast initially.

So if you were in my position what would you do?

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[kidsaremypassion]

This is a question to those who've graduated recently and incurred a substantial amount of student loan debt.

So here's my situation 2.5 years out of school. Doing a standard 20 year repayment plan with my student loans (almost 300K) . I pay a little more than the usual each month (roughly 2500) . Income is stable if not great; have managed to save a good chunk in my savings. I'd like to purchase a house soon and ultimately have my own clinic. But my predicament right now is that my monthly for my student loan is like a paying a home mortgage in itself. Wife is a stay at home mom, taking care of little ones. And if I were to start the practice first, banks would require two years of income from the practice prior to purchasing a home. However, betting on the market that that house prices would increase for the next years, I could use the equity to finance a clinic of my own in the future. Renting and leasing are also options, atleast initially.

So if you were in my position what would you do?

I am currently a resident, still a new-bie myself, so I have no advice to give, other than to try asking on DentalTown as well. Lots of seasoned docs on there who would be able to provide great insight I'm sure!

 

[charlestweed]

I am currently a resident, still a new-bie myself, so I have no advice to give, other than to try asking on DentalTown as well. Lots of seasoned docs on there who would be able to provide great insight I'm sure!

wrong quote

 

[charlestweed]

This is a question to those who've graduated recently and incurred a substantial amount of student loan debt.

So here's my situation 2.5 years out of school. Doing a standard 20 year repayment plan with my student loans (almost 300K) . I pay a little more than the usual each month (roughly 2500) . Income is stable if not great; have managed to save a good chunk in my savings. I'd like to purchase a house soon and ultimately have my own clinic. But my predicament right now is that my monthly for my student loan is like a paying a home mortgage in itself. Wife is a stay at home mom, taking care of little ones. And if I were to start the practice first, banks would require two years of income from the practice prior to purchasing a home. However, betting on the market that that house prices would increase for the next years, I could use the equity to finance a clinic of my own in the future. Renting and leasing are also options, atleast initially.

So if you were in my position what would you do?

I am not sure if the home price will increase if you buy one right now. Here in Orange County, CA, the home prices are ridiculously high….they are climbing back up to very near the 2007 (pre-housing bubble) level. I am no expert but I think the home prices are at their peak right now.

Since you’ve been out for a few years, I am sure you now realize that making $150-200k a year (while having to pay back the $300k student loan) as an associate is not very much, especially when you also have a family to support. I don’t know how much you have in your saving right now. If I were you, I would set up a low cost office from scratch without borrowing more loan from the bank. Many of my GP friends are doing very well with only 2 chairs in their offices. While your new office is still very slow, you should continue to work part time for someone else. Since you are still young and healthy, you can work 6-7 days week. The harder you work now, the less you’ll have to later. Once your own office gets busier, you can quit your associate job, and you can buy anything you want…ie a dream house, a dream car.

 

[DrFlap]

I talked with loan consultant and he advised me to finish paying off Loans and then buy a house or clinic. He advised me to be little more aggressive on paying off loans. I have seen that many GPs finish off their loans in 5-6 years after graduation. you can also get advise from finance adviser who will help you to finance your money where you will get tax benefits. Doing that, you are giving your money to your federal loan department and not to IRS.
You can still take another 2.5 years to pay off student loans and then buy house and clinic.
I have talked to many GPs who had private dental offices and they can not afford them now. All of them are talking about big corporate market and competition with corporate dental offices. I would rather advise to buy or to become partner with existing corporate office. That way, it will still be your clinic and you do what you want to do and how you want to do. You don't have to worry about any maintenance of your clinic or marketing your clinic.
Good luck.

 

[dentalbiz]

This is a question to those who've graduated recently and incurred a substantial amount of student loan debt.

So here's my situation 2.5 years out of school. Doing a standard 20 year repayment plan with my student loans (almost 300K) . I pay a little more than the usual each month (roughly 2500) . Income is stable if not great; have managed to save a good chunk in my savings. I'd like to purchase a house soon and ultimately have my own clinic. But my predicament right now is that my monthly for my student loan is like a paying a home mortgage in itself. Wife is a stay at home mom, taking care of little ones. And if I were to start the practice first, banks would require two years of income from the practice prior to purchasing a home. However, betting on the market that that house prices would increase for the next years, I could use the equity to finance a clinic of my own in the future. Renting and leasing are also options, atleast initially.

So if you were in my position what would you do?

Im interested in what you decided. My most profitable dentists do not pay off their student loans right away, do not buy a house or a fancy car right away. Instead they rented and got a practice loan and either purchased a practice or did a start up. Maybe its because of the area they are in. But getting a bank loan was super easy, actually the banks fight over dentists here. Brand new dentists! This industry is like no other. The default rate for dentists is very low I guess. My best clients actually sock as much away into retirement as they possibly can from day one instead of buying the house or paying down the student loans. I have a few who want to retire at 45 and that is what they did and they are on track. I also have a few retired dentists who are 50ish who did this as well and just work on contract whenever they feel like it.

What does dental school teach for owning your own practice? From all my current dentists they said they were taught nothing but I'm wondering if nowadays dentists actually get some schooling on this.