I am currently a graduating from graduate school this year and am dealing with a situation I've only heard rumors of and never thought I'd be in this place. I am currently trying to understand finances regarding this topic and I thought I'd ask this community for help.
My post-graduate plan is to start a business and my estimate to start this particular venture is about $300,000. I told my parents of this and it caught them by surprise as they expected that I'd make a six figure straight out of school. Their plan was to have me take out a loan for a $600,000 loan to buy their house they are currently paying mortgage for using my credit ~750.
I love my parents, but something about it just didn't sit well with me. Why do they tell me this now? Currently I feel as if I'm a retirement plan for them. My mom was telling me that if I take this loan out, they would get $480,000 in cash. However, I'd be stuck with the mortgage which would be about $3000 a month. Even if I take a job, I'd make about $8000 / month after taxes, if I factor in the mortgage, student loans, and retirement, I take a huge hit and can't even reap the rewards of endlessly studying and working for past 8 years.
I'm so convinced on this business plan and this opportunity to create some real net worth and forge my own future. I'm even in the works of gathering sufficient collateral to take an SBA loan with my partner. But this is really a roadblock. The vibe I feel is that they are disappointed that I'm turning down a ~$110,000 salary to follow my business passion (which I believe makes even more in the long run). My parents are saying that they could finance the first couple years of business with part of the $480,000 and cover the mortgage until I get settled, but I'm having my doubts. I'd like to do it completely on our own with me and my partner with no strings attached.
I know it most likely is a bad idea to buy a house, this quickly out of school. I told myself I wouldn't make the same mistakes as them investing capital in real estate and losing money. I'm totally comfortable renting out cheaper locations or a tiny comfortable house with me and my girlfriend. I'd just like opinions on how to handle this from someone who may understand. Thanks in advance!
Submitted April 21, 2018 at 03:13AM by SayaerM https://ift.tt/2HgFwgY
