Everyone has heard that it takes money to make money. If you have $10,000 you
can turn it into much more with time and know-how by investing in stocks, real
estate and other business ventures. The problem is that it's finite. You only
have $10,000. If you had double or triple that amount, you could double or
triple your profits.
There's a way you can multiply your profits even if you have a limited amount to invest. Business owners call it OPM or Other People's Money. If you have a plan to turn some money into much more money, you can borrow money to invest as long as the profits will be enough to cover the interest and then some. There's never been a better time to do exactly that than right now because interest rates are unbelievably low. What's more, these great rates are available to regular people. Home mortgage loans and equity lines of credit are available at less than 5%. Other types of loans can be obtained at rock bottom prices too.
In order to make money rather than lose it, you need to fully research your making money plan. The thing that you're bringing to the money-owner is expertise. Whether you plan to buy an investment property, start a business or invest in some other scheme, you need to do your homework. Figure out how much you expect to make, when you will receive the profits, what risk is involved and more. Do all the research and work that you would do if you were investing your own hard-earned dollars because you are. If it takes longer than you expect to see results, the interest costs will increase. If your venture fails, you'll have to pay back the loan out of your own pocket. That could be very painful.
Be especially careful with variable rate loans. They're ideal for shorter-term investments when rates are low. As the timeframe rises, so does the interest expense. The unknown factor of what the interest rate will be next year or the year after that increases your risk significantly for a long-term venture.
Once you get proficient at using other people's money to earn profits, your earning potential is almost unlimited! Take the money you earn on your first venture and invest it in more ventures. Each time you successfully invest you'll have more capital to use on your next venture.
There's a way you can multiply your profits even if you have a limited amount to invest. Business owners call it OPM or Other People's Money. If you have a plan to turn some money into much more money, you can borrow money to invest as long as the profits will be enough to cover the interest and then some. There's never been a better time to do exactly that than right now because interest rates are unbelievably low. What's more, these great rates are available to regular people. Home mortgage loans and equity lines of credit are available at less than 5%. Other types of loans can be obtained at rock bottom prices too.
In order to make money rather than lose it, you need to fully research your making money plan. The thing that you're bringing to the money-owner is expertise. Whether you plan to buy an investment property, start a business or invest in some other scheme, you need to do your homework. Figure out how much you expect to make, when you will receive the profits, what risk is involved and more. Do all the research and work that you would do if you were investing your own hard-earned dollars because you are. If it takes longer than you expect to see results, the interest costs will increase. If your venture fails, you'll have to pay back the loan out of your own pocket. That could be very painful.
Be especially careful with variable rate loans. They're ideal for shorter-term investments when rates are low. As the timeframe rises, so does the interest expense. The unknown factor of what the interest rate will be next year or the year after that increases your risk significantly for a long-term venture.
Once you get proficient at using other people's money to earn profits, your earning potential is almost unlimited! Take the money you earn on your first venture and invest it in more ventures. Each time you successfully invest you'll have more capital to use on your next venture.
Investing in real estate is a tried and true way to
earn money in the long run. Mortgage loans are readily available to people with
good credit histories, and you won't have to prove that you have successfully
invested before. If you buy something like residential real estate, lenders
already know that it's a good investment. Just stick with properties that are
likely to appeal to large numbers of buyers, like these San
Diego homes.
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