Loans and Junk Bonds?

[Anonymous No.8835281]

I know this dramatically differs from the usual crypto shilling, but what is there to stop someone from taking out like a home/business loan and putting it into high yield "junk" bonds to profit off the differences in interest rates?
>pretend to buy house/start business
>Go to bank take out 800k loan at current 4.3% interest right before interest rates rise
>Business "falls apart"
>fed raises interest rates
>buy high yield "junk" bonds at 8-9%
>buy municipal bonds so it is completely tax free?
>collect off 4.7% difference on interest rate on 800k ($37.5K)
>live/move to mid-west (somewhere with low cost of living)
>collect welfare/benefits for not having a job
>Literally do nothing and have the equivalent of an average US job with benefits
>trade crypto under the table for extra $$
>Profit?

Is this legitimately doable? Please explain

[Anonymous No.8835301]

>>8835281
Banks dont just give you cash for a home loan, they wire it to the other mortgage company or hit a button on their computer.

Business loan with no existing business loan is essentially just a personal loan up to the max personal loan you qualify for. They wont give you more than you qualify for because its for a business.

[Anonymous No.8835318]

>>8835281
Junk bonds yield more because of the higher risk. Hf when the bonds you bought on borrowed money default.

[Anonymous No.8835321]

>>8835281
>>8835301
Yeah dude you won't get a $800k loan without a solid business already in place(only investors will do that), and they WILL escrow that money if you pretend to buy an existing business. It will never pass your hands. Nice try 0/10

[Anonymous No.8835323]

This will not work as you can't really trick them

What your looking for is unrestricted lines of credit. Generally they have higher rates but it's no questions asked. Usually secured with collateral

[Anonymous No.8835326]

>>8835301
I thought home loans effectively got wired to your personal account if the person is selling without a real estate company

[Anonymous No.8835334]

>>8835326
LOL no. No matter how you go about it (realtor or not), it will go into a trust usually run by a lawyer, who will write a check out to the seller. Again, it never touches your hands.

[Anonymous No.8835345]

>>8835326
I went through 2 home buying experiences and the lawyers essentially contacted my bank to let them know where to send the money it seemed like. You would need to be doing tons of fraud to get it directly to you.

It makes you think tho, like if everyone just had $1 million put into a dividend/interest paying account we could all live comfy.

[Anonymous No.8835364]

>>8835334
And to add, if it was not already obvious, the situation you are describing is EXACTLY why it is that way. Don't be a derp.

[Anonymous No.8835601]

>>8835281
>Go to bank take out 800k loan at current 4.3% interest right before interest rates rise
>Business "falls apart"

Banks only give you a loan if you have collateral. They don't just give $800k to some random loser neet.

[Anonymous No.8835654]

>>8835601
To be specific.. If you were actually able to buy a home, they'll verify your income, your net wealth, and have the property you are purchasing assessed for price and condition to make sure you're actually borrowing and paying what it's worth. There's little room for error

[Anonymous No.8835675]

Get a friend to commit fraud together by faking property sell

[Anonymous No.8835695]

>>8835675
Please don't, I'm already paying enough tax money on idiots in prison