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3 miles away from facebooks headquarter with a 30-year mortgage. the question is, why would you get into debt if he wanted, he could easily buy a dozen sounds ridiculous, who would give you free let me explain, it all has to do with interest rates. zuckerburgers mortgage rate is just a little that, base on the circumstances the rate could if you do the math, the bank is the
Loser for the sake of example, let’s say you borrow the average rate of return on the savings account is 2.4 percent. $24 000 dollars a year while you only have imagine if you do that with a hundred million when you can borrow for free, there’s no of course, when we are talking about small because the difference isn’t that big, however, with 1, 2 or half a percent could
Potential let’s say you are a businessman, and you can buy a house when you can finance it for 1 that money in your business that could potentially even if you are lazy to find a more profitable especially when we are talking about 20 or 30 years. if you take a mortgage and invest your money economically, it wouldn’t make sense for take elon musk for example, most of his
Wealth for 20 million dollars, he probably might pay taxes and incur other expenses, however, he took out a 61 million dollar mortgage for that’s not unique to billionaires, its also they took a mortgage to buy their 88 million dollar house. that leaves the couple with a 149,600 dollars monthly payment. instead of tidying 53 million dollars in a it, to maximize his profit,
At the end of the richer you get, the better ways to find to make more money. 3 percent, but even at that rate, it still but let’s get this clear first! why do the first of all, when you are a billionaire, worried that you might default on your loan easily sell part of your business to pay back compare that to an average employee who could secondly, paying your mortgage
On time every credit score, so when you are in trouble next you are basically building trust between you and the financial institutions. people so that when their companies would but these low mortgage rates are adjustable go up! but no one is worried because if it stops making sense economically to these ultra-rich we can’t afford for entertainment and end up paying a
Lot more back. and once you calculate how many years you create a perception that- debt is bad. playing around with debt is not easy, you miscalculation can lead to disastrous consequences. 500 dollar bill because we have to make all of these monthly payments. debt can ruin your life, make you homeless but it can also make unbelievable rich if leverage is a superpower
That can make you rich instantly. the market and sell for it 11 thousand dollars, but what if you use leverage, you go the bank additional 10 thousand dollars, that’s going to be a million dollars. but you still owe the bank, so you go back thousand dollars that you borrowed and another 10 thousand dollars in interest. that’s how you make money when you don’t have money.
Of course, when you take this formula to the and practiced by everyone in the wall street, remember when home prices crushed?! and then well, its because the investment banks used because they began giving mortgage to people score and weren’t financially prepared to make the monthly payments. for the last 40 years, home prices were rising well, we are not going to get
Into the details for another video but in any ways it’s still of course, it’s risky and you can end up losing i hope you guys have enjoyed this video and most importantly found it helpful. considering subscribing and clicking on the bell besides it.