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/biz/ - Business & Finance

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18944892 No.18944892 [Reply] [Original]

what if you had 5k in collateral and you used it to get a loan and then you used it to get a loan at another bank and repeated until you had a really high dollar amount of credit to your name? you could close the loop and then settle all the debts to appear very credit worthy, granted you could come up with the interest. this would be best done when interest rates were at the bottom. could you effectively get use a small amount of collateral to eventually build up a huge credit limit that would make it possible for you to invest in medium to large scale business operations suitable to legitimately pay down such a large loan?

>> No.18944934

>>18944892

No more loans. Bank lending is super tight now.

I'm a finance lawyer for a mega bank.

>> No.18944961

Literally what every overly leveraged company that needed a bailout 1 week into a pandemic does. Same with every """"tech"""" start-up that's valued at 500 million dollars despite not actually producing or doing anything

>> No.18945070
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18945070

Not worth the risk.

It’s not that easy, Banks ask additional information like income.

And even if you build a self-made ponzi pyramid to obtain a high amount of loan; its still your own money. You are just tricking yourself.

If you fail, you are responsible for that. All your hard earned money would go into debt. But since you cannot afford to pay the monthly fee; you will sink in bankrupt due to interest. Any savings you have would get fucked.

Avoid this. Its pretty simple; just create a company , ask for funding and your assets wont be compromised.

>> No.18945483

>>18944892
that's a man

>> No.18945746

>>18945070
This. It's all about creating a company to do it for you.

>> No.18945815

>>18945070
This.

Create own company

>> No.18945874

>>18944892
A bank checks to see whether the asset it will lend against is already secured by another party. If the asset is already secured, the bank would require the other party to sign a subordination agreement or it won’t make the loan.

Source: my job.

>> No.18946058

>>18945070
Please walk me through this red pill
I am a bit of a brainlet but I am smart enough to have a bag of ARPA though

>> No.18946092

>>18944892
The wild west of pre 08' is long gone.
I was fresh out of high school in 06' and everyone I knew including myself had lines of credit over $50k each - in Australia where regulations were always a lot stronger than the US for example. If you were smart you bought land before the housing market blew up and sold it for massive profit and paid everything else off with it. Myself and a mate did just that with land in Batemans Bay (A holiday coastal town 3 hours south of Sydney). We bought multiple empty lots for at the time $10-15k then around 2014-2015 sold them to developers for an average of $200k each. Everyone else I knew bought cars, went out every weekend, went on holidays and went into enormous debt. Multiple credit cards all maxed out for 10's of thousands - all fresh out of Uni with shit degrees or blue collar non trade jobs.

All I am saying is I saw the writing on the wall and was lucky enough to have a mate who pointed me in the right direction just as the SHTF.

>> No.18946445

>>18945070
how do you cook the books to make it look like the business is legitimate and not a patchy beard for your personal racket

>> No.18947163

>>18944892
debt to income ratio newfag

>> No.18947271

>>18944892
index toe longer than thumb toe and weird thumb toe nail, who would bang this man really?