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RE: Is borrowing good or bad?

in #business7 years ago

Too many people are afraid of accumulating debt. In some cases, it's actually extremely beneficial. In terms of real estate investments, you can take out a loan to buy a house, fix up the house, and then sell it for markup. Use the sell earnings to pay off the loan and keep the profits. This strategy uses none of your own capital, only the lender's. So much leverage involved that more people should take advantage.