/biz/ - Business & Finance

Dumb frog poster.

>>12352727

I've taken out over $300,000 in loans under 4.5% for multifamily rental properties. I have a 30% or bigger equity possition on each property. Explain to me why my debt is bad.

>>12352836
>>12352836

1 quadrillion in derivatives to be connected into crypto.

>>12352836
You're on 4channel nobody here knows anything about business or finance they are all retarded zoomers and basement dwellers

>>12352848

Yeah? I'm hoping this Ponzi scheme collapses before my loans are paid off. I'd love for my fixed rate debt to be payable with worthless monopoly money.

"""Clean""" coal

>>12352866

>Check
I'm here to reveal people as retards, it is an addictive hobby I can't seem to stop.

>>12352870

>>12352836

Should have paid for them in cash so you don't have to lose money to interest payment you poorfag retard

>>12353050
Case in point

>>12353050

>You should make less money and risk only your own money instead of making 3x and risking mostly Jew bank money
Classic biz, buy high sell low fren

>>12353110
>taking out loans

POORFAG
O
O
R

F
A
G

good debt is called leverage

>>12353050

Retard. It's called leveraging the banks money and having the tenants pay off the property. Go back to your shit coins and let the big boys talk actual business.

>>12353439

or you can buy the property outright, not pay interest to the bank and collect rent.

kys retard

>faggots defending debt
good goys

>>12352836
sounds chill

>>12352727
the only really "good" debt is debt at less than inflation. my car loan for example is .99%

>>12353459
because we can all go in our back pocket and pull out a $300,000 bill and buy a multi family property outright.

kys.

>>12353459
>>12353439
you both have points. paying interest can get you ahead if you don't have enough capital or if you are going to pull out more $ leveraging your properties.

personally, i'd rather buy in cash or mostly cash such that the mortgage payment is still helping me tax-wise but i'm not getting assraped by the bank.

>>12352727
>Mortgage at 2.95%
>Credit line at 5.45%.
>Using C/C to not pay for 30 days and rack up points.
>Building a credit score.

If you aren't doing something similar you are retarded.

>>12353050
t. Brainlet

>>12353514
>>12353459

There is no discussion. When the market nets you a higher return than interest rates its moronic to spend 100's of thousands up front for a property.

do people not realize that a mortage leverages the property you purchased so the worst case scenario is that you lose the property you wouldn't have had anyways if you didn't take out the loan and potentially hurt the credit score that would only be used for taking out other loans anyways? meanwhile so long as the housing market hasn't crashed and you had a reasonable down payment you can sell the property anytime and make the money you've paid towards the mortgage back - interest + rise in value of the home. people who are like "fuck debt, I'm gonna rent so I'm free" are the biggest fucking retards on the planet. Rent is almost as big of a retard tax on modern society as the lottery. You're just throwing money away because you're too much of a pussy to actually do something with your money beyond buying some pot and the latest call of duty. it's pathetic.

>>12353459
there's this thing called opportunity cost. What other investments could you make with that money?

>>12353538
oh absolutely but when you want to retire and sit on your ass you'd rather own the property outright than be paying a mortgage. if you have the cash why not put more down and it's like a guaranteed return of whatever your interest rate is.

I don't understand how people are either too stupid to understand leverage or too risk adverse to use it.

These is literally a crypto-currency board, the riskiest asset possible to own and you fucks are leveraging 100:1.

This must be some next level LARP

>>12353543
You forget the part where you pay 80k more then the property is worth in intrests.

>>12353563
Please leave. You should stick to T-Bills from now on.

>>12353583
lol i think these idiots don't realize that when they're trading on margins they're taking on debt.

>>12353459
>>12353563
it's really no different than gambling on bitmex, nothing wrong with going 5x or 1x

>ameriloans

>>12353583
Because this is a risky asset I can prove that I own, with math. I don't trade on leverage. Enjoy being owned by jews.

>>12353588
i'm retiring at 40 so ¯\_(ツ)_/¯

>>12353613
>"Asset I can prove I own"

I don't think you know what ownership means. If you owe money on an asset it doesn't mean your creditor owns said asset. You should also learn about secured vs unsecured debt.

(Excluding ABL ie leasing)

>>12352727

you'd be dumb not to borrow a billion dollars with 0-1% interest right now

>>12353629
That doesn't mean you have a clue what you are doing financially. You don't understand personal finance or capital markets. Maybe stick to something else

>>12352836
Imagine having to sleep.

>>12353585
yeah except you're not paying all of that if you're not keeping the mortgage the full term, only the interest incurred for however long you had the property. That's also why you need a decent down payment, usually 20%. At a 4%(non-nigger tier credit) you'd have 4 years before the interest would exceed the value of the home. Reasonably the home value would increase in that time, but even if not the risk is marginal.

>>12353641
no need to be so aggressive, fren

>>12353641
I understand ownership quite well, I think it is you who should look what it means to own a cryptocurrency. Start with 1+1 and work up to axioms and maybe you'll get there one day sport. Or you could learn to talk like an adult instead of an insufferable jew owned faggot and people on this board might respect you more.

>>12353543
ausfag reporting, goys who bought the top have literally lost all of their money. because there isn't instant liquefication like on mexican bit coin exchanges what happens now is they are getting levered into the negative. if this year is as bad as last (highly likely) they will be in the hole for an amount that was their life savings, at least. at that point nearly half of borrowers will be at, at least zero equity.

>muh you don't lose if you don't sell

this cope is already becoming popular with real estate geniuses. the problem is obviously getting forced out, the goys who literally went all in will cease being able cope with the increased cost of their debt going bad and fall over, it is like dominoes and we can only watch to see how retarded it really was. the most interesting will come from the ability to leverage unrealized capital gains, literally with a multiplier effect, a speculator whos real leverage is in the region of 20x should not be uncommon.

unironically people being kicked out of family homes is not something the government wants to happen, like with the farmers the banks will literally be pressured into allowing them to sink into a deeper and a deeper hole.

sentiment is still this can only be a temporary dip because real estate always increases in value, maybe they will be right.

>>12352836
For the average joe who owns a credit card to pay off the loan for his car then forgets about it it's bad, people don't have scripts memorized and multiple monitors tracking interest rates and office spreadsheets tracking outgoings every month, I mean I do but I'm fucking autistic like that.

>>12353993
>For the average joe who owns a credit card to pay off the loan for his car then forgets about it it's bad,
People need to budget and set up auto pay so they don't have to worry about paying off c/c early or being late.

>people don't have scripts memorized and multiple monitors tracking interest rates and office spreadsheets tracking outgoings every month, I mean I do but I'm fucking autistic like that.

Wut?

JUST

>>12352727
>mfw I can borrow money for 2,8% a year incl all fees. Interest rate fixed for 30 years


>mfw I'm currently borrowing money for 0,8% a year 1y fixed

Stay poor

Rome was built on debt

>>12355002
How can money be so cheap to borrow?

I don't want to do business with the kike banks.

>>12353682
Hey ausfag, you old enough to remember the radiators, "Lifes a gamble, yeah yeah yeah".

God bless the 80's. That's where all the wisdom resides.