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I assume if you have a loan of $100,000 secured against an asset worth $1 million that appreciates 10% each year, you can basically continue rolling over the lo
by nmfisher 5y ago
I assume if you have a loan of $100,000 secured against an asset worth $1 million that appreciates 10% each year, you can basically continue rolling over the loan.
As long as the asset value doesn’t drop, you never have to actually repay the loan with your own cash (at least, not until you die or you sell the asset).
- socialist_coder 5y agoAhh, makes sense. So they are never paying back the loan with earned income. Thank you!