How to Get Rich - Use Other Peoples' Money - Part Two

Do you know how to use other peoples' money to grow your wealth ?

Do you think all types of loans are created equal ?

This post is a continuation of my first post on this topic ( "How To Get Rich - Use Other Peoples Money" ) review first post before proceeding (check the side bar for link under most viewed posts)

All loans are not created equal.  Read on to find out what investment loan, if any,  may best be suited for you in your current position.

Line of Credit 

A Line of Credit is an open ended load that can be paid off at any time and quite often you can make interest only payments which keeps your investment working longer for you. This type of loan is recommended for most liquid investments such as stocks and bonds, REITs, Royalty Trusts, etc. Basically for anything that can be cashed in quickly if necessary.

If you have equity built up in your home, you should also be able to secure your line of credit with this equity in order to ensure a much lower interest rate. Secured lines of credit generally receive a much lower interest rate as there is less risk for the lenders.

Mortgage

A Mortgage is a loan on Real Estate that is secured by the actual real estate. If you own your home, you will likely already be very familiar with this form of loan. I generally only recommend this form of investment loan if you are planning to purchase revenue producing real estate as your investments. These are not well suited for liquid investments as there are too many restrictions and penalties built in should you decide to cash in your investment and pay off your loan. Good for long term revenue producing real estate only.

Margin Accounts

Margin Accounts are loans that are offered by your stock broker and are secured by the asset you are purchasing. I'm not personally comfortable with this form of loan as your broker can require partial or full repayment at any time your investment is below water (in a loosing position) You have absolutely no control over when to make repayment and you may have to sell your investment at a loss in order to repay your loan. Losing money on your investments is never a good way to get rich.

What To Choose

The line of credit, the mortgage and the margin account are basically the most widely used forms of "using other peoples' money" that investors use today. Which form you use will be determined by your type of investment, the length of time you wish to hold your investment, and last but not least, the form of loan that you will be able to qualify for.

I personally use lines of credit and mortgages for my investments and have never used a margin account. I believe in having total control over when I repay my loan amounts.

Using other peoples' money can be very rewarding, however, there is also a great deal of additional risk involved and should only be utilized by experienced investors. This is not the place for the average investor to be starting as it could lead to a total loss of the invested amount should things go wrong.

As always, I welcome your comments and suggestions for future topics.


Comments

Anonymous said…
Hey very nice web site!! Man .. Beautiful .. Amazing .
. I'll bookmark your

blog and take the feeds also…I'm happy to find numerous useful

info here in the post, we need work out more strategies in this regard, thanks
for

sharing. . . . . .
My web site ; www.thespainforum.com
Anonymous said…
Hi there, just became aware of your blog through
Google, and found that it's really

informative. I am gonna watch out for brussels. I will be grateful if you continue

this in future. A lot of people will be benefited from your writing. Cheers!
Also visit my web-site ... catralspain.net
Anonymous said…
I would like to thank you for the efforts you've put in writing this site. I

am hoping the same high-grade site post from you in the upcoming as well.

Actually your creative writing skills has inspired me to get my own web site

now. Really the blogging is spreading its wings fast. Your write up is a great

example of it.
Here is my web blog - bluewhitestudio.com
Anonymous said…
I have been absent for a while, but now I remember why I used to love this blog.


Thank you, I’ll try and check back more often.
How frequently you update your site?
Here is my blog - http://www.Elcheproperty.net
Anonymous said…
Spot on with this write-up, I really suppose this website wants

rather more consideration. I’ll most likely be once

more to read much more, thanks for that info.
Here is my website :: www.spaingolf.Us
Anonymous said…
I enjoy, result

in I discovered exactly what I was having a look for.
You have ended my four day long hunt! God Bless you man.
Have a nice day. Bye
My page ; www.alicanteproperty.net
Anonymous said…
Wow that was unusual. I just wrote an very long comment but after I clicked

submit my comment didn't show up. Grrrr... well I'm not
writing all that over again.

Anyhow, just wanted to say superb blog!
Also visit my blog :: workload
Anonymous said…
Definitely believe that which you said. Your favorite justification appeared

to be on the web the easiest thing to be aware of. I say to you, I

certainly get annoyed while people consider worries that they plainly do not know

about. You managed to hit the nail upon the top and also defined out the whole thing without having side

effect , people could take a signal. Will likely be back to get more.
Thanks
my web page - Bbc weather forecast Benidorm spain
Anonymous said…
With havin so much content and articles do you ever
run into any problems of plagorism

or copyright violation? My site has a lot of completely unique content


I've either written myself or outsourced but it looks like a lot of it is popping it up

all over the internet without my agreement. Do you know any solutions to help reduce content from being ripped off? I'd certainly appreciate it.
Here is my site www.spainweather.org
Anonymous said…
Great weblog right here! Also your web site loads up fast!
What host are you using? Can

I get your affiliate hyperlink to your host? I

wish my web site loaded up as quickly as yours lol
My weblog - Spain Articles Blanes
Anonymous said…
Once I initially commented I clicked the -Notify me when new feedback are added-

checkbox and now every time a comment is added I get four emails with the same comment.


Is there any way you'll be able to take away me

from that service? Thanks!
Visit my webpage :: http://redepv.org.br
Anonymous said…
Undeniably believe that which you stated. Your favorite reason seemed to be on the
web the simplest thing to be aware of. I say to you, I


certainly get annoyed while people consider worries that they plainly do not know

about. You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can
take a signal. Will likely be back to get more. Thanks
My web site - www.almoradi.us
Anonymous said…
you will have a great blog right

here! would you like to make some invite posts on my blog?
Feel free to visit my site :: the rain in spain is one crossword
Anonymous said…
Hi there! This is my first comment here so I just

wanted to give a quick shout out and tell you I truly enjoy reading your blog

posts. Can you suggest any other blogs/websites/forums that cover the
same

subjects? Thanks for your time!
My page > http://www.thespainforum.com/
Anonymous said…
Hello.This post was really fascinating, especially

since I was browsing for thoughts on this topic last

Sunday.
Also visit my blog post www.diysolarheatingspain.com
Anonymous said…
Hey very cool web site!! Man .. Excellent .. Amazing .. I will
bookmark your

website and take the feeds also…I am happy to find numerous useful

information here in the post, we need work out more techniques in this regard, thanks for

sharing. . . . . .
Also visit my homepage : www.nederland-mobiel.nl
Anonymous said…
Thanks for your personal marvelous posting! I genuinely enjoyed reading it,
you may be a great author.I will make sure to bookmark
your blog and definitely will come back from now on.
I want to encourage you to continue your great writing, have a nice afternoon!
My web page: www.catral.biz
Anonymous said…
Hey very nice site!! Man .. Excellent .. Amazing .. I will
bookmark your

website and take the feeds also…I am happy to find numerous useful

information here in the post, we need develop more strategies in this regard,
thanks for

sharing. . . . . .
My page : spain sovereign yields
Anonymous said…
This is very attention-grabbing, You're a

very skilled blogger. I have joined your feed and sit up

for searching for extra of your magnificent post. Additionally, I have shared your site in

my social networks!
Here is my web site : Tarifa,
Anonymous said…
You made some decent factors there. I seemed on the web for the problem and found most individuals will

go together with along with your website.
My homepage :: home mortgage loans
Anonymous said…
Thanks for the sensible critique. Me & my neighbor were just preparing to do some
research

on this. We got a grab a book from our local library but
I think I learned more clear from this post.

I'm very glad to see such fantastic info being shared freely

out there.
Here is my web blog :: http://ginecoyobstetricia.blogspot.ru
Anonymous said…
I have been exploring for a little for any high-quality articles or blog posts

on this sort of area . Exploring in Yahoo I at last stumbled
upon this site. Reading this

information So i’m happy to convey that I've a very good uncanny feeling I

discovered just what I needed. I most certainly will make sure to do not forget this site and give it a look regularly.
my web page: jaen spain news Puerto del Rosario
Anonymous said…
Please let me know if you're looking for a author for your site. You

have some really great articles and I think I would be a good asset. If you ever want to take

some of the load off, I'd love to write some articles for your blog in


exchange for a link back to mine. Please send me an email if interested.
Many thanks!
My homepage ... Earth science
Anonymous said…
Hello there, just became aware of your blog through Google, and found that it is
really

informative. I am gonna watch out for brussels. I’ll appreciate if you continue

this in future. A lot of people will be benefited from your writing.

Cheers!
Review my weblog virginia personal injury attorney
Anonymous said…
You are so awesome! I don't believe I have read through anything like this before. So great to discover someone with a few unique thoughts on this subject matter. Really.. thank you for starting this up. This site is one thing that is needed on the internet, someone with a bit of originality!
Also visit my web page barcelona box
Anonymous said…
First of all I want to say awesome blog! I had a
quick question in which I'd like to ask if you don't mind.

I was interested to find out how you center yourself and clear your thoughts before writing.

I've had a tough time clearing my mind in getting my thoughts out there. I truly do take pleasure in writing but it just seems like the first 10 to 15 minutes are generally wasted just trying to figure out how to begin. Any ideas or hints? Cheers!

Feel free to surf to my weblog - make money online opportunity
Anonymous said…
Everything is very open with a really clear description of the challenges.
It was definitely informative. Your website is very useful.
Thank you for sharing!

my webpage - http://www.fanpunt.nl/
Anonymous said…
Excellent blog! Do you have any suggestions for aspiring writers?
I'm hoping to start my own site soon but I'm a little lost on everything.
Would you suggest starting with a free platform like Wordpress or go for a paid option?
There are so many options out there that I'm completely overwhelmed .. Any suggestions? Kudos!

Also visit my blog post :: http://www.liguegay.com
Anonymous said…
It is perfect time to make some plans for the future and it is
time to be happy. I've read this post and if I could I desire to suggest you some interesting things or advice. Perhaps you can write next articles referring to this article. I want to read more things about it!

Feel free to visit my webpage; quit smoking effects
Anonymous said…
whoah this weblog is magnificent i really like
reading your articles. Keep up the great work! You understand,
many individuals are looking around for this information, you could aid them
greatly.

Feel free to surf to my webpage: Www.Revitgg.nl
Anonymous said…
Hello, i think that i saw you visited my site so i came to “return
the favor”.I'm trying to find things to improve my site!I suppose its ok to use a few of your ideas!!

my web blog :: working at home
Anonymous said…
It is appropriate time to make some plans for the future and it is time to be happy.

I've read this post and if I could I want to suggest you few interesting things or suggestions. Maybe you can write next articles referring to this article. I want to read even more things about it!

my web site ... http://lagunakdelabaguette.org
Anonymous said…
Oh my goodness! Incredible article dude! Thanks, However I am encountering issues with your
RSS. I don't understand why I cannot join it. Is there anybody else getting the same RSS problems? Anyone that knows the solution can you kindly respond? Thanx!!

Take a look at my web-site :: wiki-gratuit.com
Anonymous said…
Asking questions are truly fastidious thing if you are not understanding something totally, except this piece of writing presents pleasant understanding
yet.

my homepage :: finding business checks
Anonymous said…
Hi, I do believe this is an excellent website. I stumbledupon it ;) I may return yet again since i have bookmarked it.
Money and freedom is the greatest way to change, may you be rich and continue to help others.


my web page :: theylookalike.net
Anonymous said…
Oh my goodness! Impressive article dude! Many thanks, However I
am experiencing difficulties with your RSS. I don't understand why I am unable to subscribe to it. Is there anybody else getting similar RSS problems? Anybody who knows the solution will you kindly respond? Thanx!!

Check out my webpage :: surfpurpose.Com
Anonymous said…
Hey I know this іѕ off topіc but I waѕ ωondеring if уоu knew оf any
widgets I could аdd tо my blog that аutomatіcаlly tωeеt
my newest twitter upԁateѕ. I've been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

My blog post; raspberry ketone
Anonymous said…
Excellent beat ! I would like to apprentice

even as you amend your web site, how can i subscribe for a blog

website? The account helped me a applicable deal.
I had been a

little bit familiar of this your broadcast offered brilliant

transparent idea

my site; http://santabsocial.com
Anonymous said…
Fine way of telling, and nice paragraph to take data regarding my
presentation topic, which i am going to present in institution
of higher education.

Feel free to visit my webpage :: http://wiki.paraguayeduca.org/index.php?title=Usuario:MohammadM
Anonymous said…
We are a bunch of volunteers and opening a new scheme in our community.
Your web site offered us with helpful information to work on.

You've done a formidable job and our entire community might be thankful to you.

Review my webpage mouse click the up coming article
Anonymous said…
I don't even know how I ended up here, but I thought this post was good. I don't know who you are
but definitely you're going to a famous blogger if you are not already ;) Cheers!

Feel free to visit my web-site http://richpinhead.com
Anonymous said…
I'd like to thank you for the efforts you've put in penning this site.

I really hope to check out the same high-grade content from you in the future
as well. In truth, your creative writing abilities has motivated me to get my own, personal website now ;)

Also visit my web blog makasin.info
Anonymous said…
What's up, I log on to your blog daily. Your writing style is awesome, keep doing what you'rе doing!



my wеb-sitе ... hcg diet drops
Anonymous said…
Great work! This is the kind of info that are supposed to be shared
around the net. Disgrace on the seek engines for now not positioning this submit
higher! Come on over and visit my website
. Thank you =)

My website - Wasserdichte Kamera (http://wiki.rootcoding.com/index.php/These_Nokia_6760_Is_A_Wonderful_Impressive_Mobilephone_Packed_Who_Has_Functionality)
So beauthiful the essay, i like them very much!
Anonymous said…
magnificent post, very informative. I wonder why the other experts of

this sector don't notice this. You should continue your writing.
I'm confident,

you've a huge readers' base already!

Feel free to visit my blog: Catral Weather
Anonymous said…
Great post! We will be linking to this great post on our site.
Keep up the good writing.

my homepage :: demenagement pas cher
Anonymous said…
Hey there! I juust want to offer you a big thumbs upp
for the excellent information you've got right here on this post.
I'll be returning to your site for more soon.

My homepage; farm heroes saga hack
Anonymous said…
Just want to say your article is as amazing. The clarity in your post is simply cool and i could assume you're
an expert on this subject. Fine with your permission allow me to
grab your feed to keep updated with forthcoming post. Thanks a million and please keep up the enjoyable work.


Here is my homepage - car air conditioning troubleshooting ()

Popular posts from this blog

How to Get Rich - Use Other Peoples' Money

How to Get Rich - Know Your Housing Market

How To Get Rich - Learn These 3 Real Estate Myths