woodguru wrote:
Conservatives don't invest borrowed money and lines of credit in businesses? I was selling as much as $165k a month on the internet, plus direct sales.
To a degree. Your little business finance through the bank that holds your mortgage sounds fishy, but I've never done that, so I don't know.
nwtk2007 wrote:
To a degree. Your little business finance through the bank that holds your mortgage sounds fishy, but I've never done that, so I don't know.
No, nothing fishy, it was simply a matter of the house going up in value over ten years and investing money in remodeling, and us wanting to pull money out to do more renovating and then cash it out and downsize. I pulled about $600k out of the house and used it for other things that involved buying and selling that took capital. I've bought and sold gems, coins, watches, guns, cars... it takes money to make money.
The house we have now we paid $210k for at auction, the bank had loaned and lost $850k on it, we put in about $150k remodeling it. We borrowed $300k on it and put in a big solar system and did some high end remodeling stuff like granite and new appliances to the kitchen. We're pretty happy with a low interest loan on $300k on an $850k house that has an apartment over the second garage we get $1100 a month for, the house payment is $1800 so the apartment almost pays for it. The solar saves us over $500 a month by itself.
woodguru wrote:
Conservatives don't invest borrowed money and lines of credit in businesses? I was selling as much as $165k a month on the internet, plus direct sales.
Really? Well then you had better inform EVERY conservative businessman still doing business. That is precisely the way business is typically done. Businessmen and investors use borrowed money and lines of credit INSTEAD of their own money to invest in businesses so that if things go south, they don't lose any money.
I know what you meant though, MOST won't use their own home's value against any monies borrowed to invest in business but if that is all one has and is just starting off, they have to do what they have to do.
The primary reason businessmen DON'T use personal finances/home mortgages, to levy against loans for their business is that it insulates them against potential losses or business failures, their business fails, they are insulated and not obligated to make good on their debts, in other words, being crooked. Just because EVERYONE does it, that doesn't necessarily make it legally nor ethically the right thing to do.
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