Why You Should Not Use Bank or Institutional Financing

[Jackie Lange]

The Legendary investor Jack Miller always advised that when you borrow money, even from a private lender, that you should make the property the SOLE collateral for the loan.

A Bank won't let you do that and that's one of the reason Jack always said no bank loans.

If the investment turns out to be a bad one,or the economy does a flip-flop on you, you can walk away from the property and the loan and it will not hurt your credit if you do not sign personally.

But if you guarantee the loan personally ( YOU), then you could be forced to file bankruptcy to get out of a deal gone south which will ruin your credit for many years to come.

See that happened to this guy who obviously never met Jack Miller:

http://nky.cincinnati.com/article/AB/20110802/NEWS0103/308020074/Hemmer-Jr-files-bankruptcy