How to make big money using debt
I use mountains of debt because it makes me money. My plan to use debt to grow my businesses because it makes me rich, and so can you.
Most people use debt to buy luxury
The average person uses debt to buy luxury items that don’t produce income. The Wall Street Journal states 40 million Americans will be evicted from their rental or have their homes repossessed. Debt can be a killer but it can also make you money.
Mortgage debt is the best way to make big money
Mortgage debts mortgage debt so to buy and resell real estate. I use debt for the simultaneous close because it’s fast. Buy and sell my property in minutes. Bought a $330,000 property for $227,000 then sold it and made a profit of $100,000 and so can you.
Inventory Purchases. Paid $500,000 for 50,000 pairs of Vans shoes, the California surfwear company, Needed to secure almost $450,000 in debt from a private investor. I borrowed the money to purchase the product then sold it immediately to Costco, the giant wholesale chain. If it weren’t for securing this line of credit from my private investor, I wouldn’t have been able to pocket the $100,000 profit.
Different forms of debt. There are many different forms of debt. Like secured debt (a loan against a tangible asset like real estate, or publicly traded stocks). Unsecured debt like credit cards which I do not recommend. Lines of bank credit which I only pay interest on when the money is used. Unsecured government debt like SBA (small business administration) loans with a low 3.1% interest rate and 30-year payback term.
My favorite how to make money using debt is Fintech loans like Paypal Capital. Paypal loans me money not based on my credit score but based on business income. I like these loan instruments because you only pay a percentage of your business sales per day or about 10%. If money comes in slower for any reason, then the amount of money you’re out of pocket is less. When your business is strong then you pay out more but only at the 10% rate.
Forms of debt I use to make money.
- Mortgage debt for purchasing income-producing properties.
- Mortgage debt for buying & selling called a simultaneous close.
- Use private investor debt for acquiring assets.
- Bank revolving lines of credit for buying and reselling inventory.
- Fintech debt like PayPal Capital for buying inventory.
- Bank credit card debt used to purchase inventory.
- Bank statement debt for mortgage-backed real estate purchases.
- SBA (Small Business Administration) long term loans, 30 years, with an interest rate of 3.5%.
- Government debt for PPP or Payroll Protection Program for making payroll, no payback at 1% interest.
- Manufacturer or vendor debt for inventory purchases.
My favorite form of debt
My favorite forms of debt are government long-term debt (30 years) with low paybacks at low-interest rates. So a $100,000 loan will pay $500 plus per month. I love these low rate money makers
My loans are based on business credit relationships for real estate, so I produce business income to pay off loans. My companies take on debt to establish a credit relationship. It costs me money to do this because I always make at least a 100% return, so my borrowed money produces an excess of 50% return.
I never use debt for personal buys. Only use debt to grow my business and make money.
Mike Addis, Carlsbad California, All rights reserved.