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Originally Posted by VillaRicaGA911
Only debt is mortgage on a 15 year fixed that I throw extra at, should have house paid off in about 2-3 years (have only been in the house 1 year). So well before I am 50 will be debt free. I don't understand the concept of using debt to fund investments.
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You buy a house for $200k. Borrow as much as you can on it. Invest $50k of your cash to rehab it, sell it for $300k. How long would you have to work at your W2 job to make $50k?
Quote:
Originally Posted by VillaRicaGA911
What if as mentioned earlier in this thread your health turns, you become unemployed or something else happens? How clever was your investment plan then?
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I borrowed to invest in my business specifically so I could become "unemployed." I was tired of working for people who weren't as smart or ambitious as I am. Ten years after I created my first company a publisher offered me $2.2 million for part of it. I think my investment plan was pretty damn clever.