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Originally Posted by Sid70
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It is actually pretty simple and straight forward, people just don't understand or know how to use debt to make money. It is simply maximizing your ROI and using leverage is one of the best ways to optimize that
Everyone that is busy paying off their house is saving 2-4% interest... the stock market went up 24% last year and (other then this week) is still up considerably more then 2-4%. And that is just the stock market
Of course, the closer you are to retirement (or in retirement), the less risky you should be. But if you are taking out a home equity loan and using that to invest in other real estate, well, thats swapping equity in one building for equity in another which is pretty safe.
Just gotta hedge interest rates rising some...