Your Fast Track to Large Loans
Now that you know the Difference between Good Debt( Assets you own the produce cash flow and pay the debt for you) and Bed Debt( Liabilities that cost you money every Month to Pay them), we can start to figure out how you will use Good Debt in order to achieve Financial Freedom.
The Fastest way to gain access to large amounts of money in Credit from banks or other investors is to partner up with someone who already has a history of using these types of loans to produce income and pay the loans off.
Find a partner and present them with an opportunity you have found and made a proforma for, allow them to make ⅔ of the profit on the deal with no involvement(passive income for them). Once you get the deal done and you are attached to it on the loan you too will have history of this type of loan and moving forward cna do these deals yourself.
This can be an opportunity to buy anything for a large sum of money that will produce the cash flow to service the debt, along with an outside return compared to the current rate of return on traditionally “safe” investments such as Bonds, CDs, or savings accounts at a Bank.
Some investors view the stock markets as “safe” and will require a return higher than the S&P average of 7% over the last 50 years. Regardless there are always MANY opportunities like this in a free market, you just have to be willing to do the research others aren’t to find them.
A few Examples of these would be:
– a thriving business whose owner is sick or wants to retire
– a run down property in a growing area that needs renovated and relisted or rented
– a company on the edge of bankruptcy in an industry you know well , and can turn around
– Land in a Developing Area you can build on prior to the influx of greater population
– Intellectual property rights you own but to don’t have the funds to launch into mass production
Your ability to see what others do not, and then find someone who will invest with you on the loan needed to fund the project is all that matters. After your first success, this person is likely to partner with you again, and now you have a relationship and history with LARGE loan amounts, giving you the credibility you need to do more deals in the future.
Your other options are much more time consuming and an uphill battle…
To do all this alone will require you to obtain collateral large enough to cover whatever the loan amount is if you default, and risk it all yourself on your first deal with no counsel from someone else who has already done deals this large. This can and has been done successfully, but again it’s much harder to go it alone.