Apr 27, 2022·edited·1 reply
MidnightOVOHigh net worth individuals usually take out the loans during times of economic downturns so they don’t need to realize losses on their other investments. Once the market improves, they can sell investments then pay off the mortgage in cash. It’s leveraging their money as debt doesn’t always mean someone is broke
Source: I’m a retirement planner for high net worth individuals/families
Or we can just put as what it is. Most people don't have half the networth in cash. Whatever loan he gets from that bank is likely next to nothing in interest rates
Someone like him likely isn't looking to sell investments to cover this as the house will likely pay for itself.
- Apr 27, 2022·1 reply
thegreatdivineSays a lot that you think my post was directed at you.
I agree with you on it though based on your 2nd post lol you just didn’t explain in the original post so it could’ve been directed at anyone
- Apr 27, 2022bigbelts
Or we can just put as what it is. Most people don't have half the networth in cash. Whatever loan he gets from that bank is likely next to nothing in interest rates
Someone like him likely isn't looking to sell investments to cover this as the house will likely pay for itself.
Same idea.
The point is that HNW people leverage their money by using debt
- Apr 27, 2022·1 replyMidnightOVO
I agree with you on it though based on your 2nd post lol you just didn’t explain in the original post so it could’ve been directed at anyone
Yeah, my first post wasn't a shot at you.
Apr 27, 2022MidnightOVOHigh net worth individuals usually take out the loans during times of economic downturns so they don’t need to realize losses on their other investments. Once the market improves, they can sell investments then pay off the mortgage in cash. It’s leveraging their money as debt doesn’t always mean someone is broke
Source: I’m a retirement planner for high net worth individuals/families
Simply put,
OPM
This is the entire concept of OPM. Dom K explained this to me once
- Apr 27, 2022
Do you know how much money and assets you have to have to be approved for a 53M loan hahahaha
- Apr 27, 2022·1 reply
Good debt is absolutely a thing and the concept not being understood by a lot of people (no shots to anyone in here) shows why financial literacy is a thing that needs to be taught
Apr 27, 2022Alot of pocket watching going on. How bout y'all worry about your pockets first.
Apr 27, 2022Why would he spend 53m outright when he can get a loan and pay that s*** off overtime yall slow in the f***in head
- Apr 27, 2022thegreatdivine
Yeah, my first post wasn't a shot at you.
- Apr 27, 2022ClanWay
Good debt is absolutely a thing and the concept not being understood by a lot of people (no shots to anyone in here) shows why financial literacy is a thing that needs to be taught
Exactly. People don't realize that most rich people are always looking to get richer and avoid having to spend any of their money unless they absolutely have to. Most of them have their money tied up in assets/investments for good reason (they're getting their money to make them even more money). The goal is always to avoid spending your own money if an opportunity to do so presents itself.
Apr 27, 2022Only 52.5m
