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Updated almost 3 years ago on . Most recent reply

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Anthony Cole
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Earning 100k vs borrowing 100k?

Anthony Cole
Posted

I'd like to propose a simple question. If you have the ability to source investment capital regularly at a realistic interest rate, let's say 7% APR. Is it wiser to borrow the money rather than 'earn' the money traditionally in which you pay 30% income, federal, state, etc. tax on? I realize this is a loaded question and want to keep it fairly surface level to invite as many opinions on this as possible!

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Anthony Cole
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Anthony Cole
Replied

Hey @David Garner thanks for the advice, appreciate you weighing in. So you're actually supporting the borrow rather than earn model. 

You're right about the assets providing enough profit to repay the debts along with the need to cover your day to day expenses.  

We currently have 6 doors, they pay for the borrowed money along with generating about 1/8 of our day to day expenses. At this rate we'll need about 48 doors to cover the debt and our personal lifestyle. 

Thanks and congrats on all your success!

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