Ep 136 - Why Rich People Love Debt?

Freedom Through Passive Income

A lot of people have this misconception that having debt is a bad thing. In my opinion, good debt is just anything with low interest rates. Most of the richest people in the world leverage good debt, and they don't want to pay it down to zero. In fact, we'll mention interest only loans in this episode as well as a part of that example.

Download your Free Private Lending Report here: www.freedomcapitalinvestments.com/lending

Download your Freedom # worksheet here: www.freedomcapitalinvestments.com/worksheet

Click on the Social Media links below and listen in on our Private Group Conversations about how to achieve Financial Freedom through a consistent pipeline of passive income investments:

https://www.facebook.com/groups/freedomthroughpassiveincome

https://www.linkedin.com/groups/14048250

—————————————————————————

Good debt is just anything with low interest rates. Better debt is debt that somebody else is paying down. Yes, that's alright, because the tenants are paying us rent that's covering our low interest debt plus we're getting some cash flow from it. When you're getting a bank loan, typically, especially commercial real estate, you're paying 20 to 25% down anyway, that's enough equity for me. Give me an interest only loan so that I can keep my cash flow as high as possible.

People want to pay down their debt but in reality, if you have an interest only loan, you've got higher cash flow. Who does the equity really protect when you have a mortgage? It protects the bank. We're not saying go out there and get a bunch of debt. That's not what we're saying. You have to be a disciplined person, and know how to evaluate the deal and know how leveraged low interest debt is going to help you achieve your financial goals. So, don't be stupid. The moral of the story is there is bad debt, but the majority of time there's good debt and better debt.

Join our groups on Facebook and LinkedIn.

https://www.facebook.com/groups/freedomthroughpassiveincome

https://www.linkedin.com/groups/14048250

www.FreedomCapitalInvestments.com

Invest Smart. Live Happy.

—————————————————————————
Connect with us here:

FB personal pages
https://www.facebook.com/Flipster
https://www.facebook.com/dani.lynn.robison

LinkedIn personal page
https://www.linkedin.com/in/fliprobison
https://www.linkedin.com/in/danilynnrobison

Instagram personal pages
https://www.instagram.com/fliprobison
https://www.instagram.com/danilynn23

TikTok personal pages
https://www.tiktok.com/@danilynnrobison
https://www.tiktok.com/@fliprobison