I LOVE Debt!

[Shiloh Lundahl]

I hear a lot of people who hate debt. But I love to use debt to build wealth!  I view debt the same as I view a fire. Fire can burn down your house, but it can also heat your water, cook your food, heat your home, and propel you car. Fire is not the problem. Uncontrolled fire can become a big problem. And just like controlled fire is not a problem, debt, when it is under control, can be really helpful for growth.

Here are some of the reasons I love debt:

1. I can lock in debt at today’s dollars on assets that go up in value.

2. I can take out debt at 4 - 12% and I can arbitrage into returns of 10%, 20%, 100% or even higher returns.

3. Debt makes my assets less attractive to lawsuits.

4. Debt makes it easier to get higher loans when banks don’t want to do cash out refinances.

5. Other people pay off my debts while I get to keep the assets.

6. Getting money while incurring debt is a non-taxable event.

7. By paying debts on time, it tells people that I am worthy of their trust.

Do you love debt or hate debt? Why?