5 Ways Rich People Make Money With Debt

Total u.s consumer debt is almost 15 trillion dollars which brings the. average household debt to over 5 300. In the past 50 years china has become the factory of the world producing literally everything. In order to make it easier to sell most of these factories would gladly loan you their products in return that you would pay them some time in the future. refinancing real estate debts is the best kind of debt because it's filled with. loopholes if you don't have a mortgage then you're paying extra taxes. rich people always have multiple mortgages to be able to get all of those deductions. remember every dollar you save is an extra dollar. earned so that's another way rich people get richer.  i would never do that but there are businesses especially. traditional businesses where using that is your best option. i would never start a business with borrowed money but i would use it to buy a house that was in such a bad condition that no one wanted to live there. I would buy a property that was just half a million dollars in a good condition and renovate it so the value of the property rises to seven hundred thousand dollars. You're not tying up your own money in this transaction that's why selling is one of the greatest skills you can ever master number. two is that you're not really have to pay. for the products to have the product first but that's how business has been running for the past. 50 years once. the client would sell the product in the us or any other part of the. world he would pay the factory and borrow more products you're basically telling the factory. you know how to produce it so let me help you sell it if i. can sell it for anything above this price that's going to be my profit what. makes this strategy great is that it's a great way to make money. If you're thinking it will take me decades. to pay off all of these debts how on earth can that be something good? i have some good news for you that isn't always bad that is unpopular opinion because most of. the debt we have is bad debt. It's in the real estate business where you can get rich in real estate that costs up to eight hundred dollars since you can't get a mortgage since you have to make a 20 down payment but here's the secret let's say you saved two hundred thousand  dollars that's a lot of money but if we're. going to say you're going to spend around 10 thousand dollars to renovate the house to rent it out. There's always an interest despite all of this the united states. has embraced that total u.S consumer debt  which means the entire economy consists out of that. that's peanuts you can’t even buy a home of course you. can't make a mortgage but this time to refinance your first. mortgage when you got your first mortgage you can buy a new one. if you have a house in a bad condition and some or. maybe a lot of renovation you head to a bank and get a loan by. making a 20 thousand dollar payment to get a new house. you can't buy a new house that's in a bad condition and some of the renovation you’re going to have to spend around 10 thousand to renovate it or around 50,000 to get it out of the market so the market is going to want you to rent out it now. there are people who want to rent the house out but since there are no people who are willing to rent it out now there are people that want it out so you are going to need to get rid of it. the value of that property was just seven thousand dollars that’s why you want to let it out and let it go to the market. people who want the market to rent it so the market wants you to renovation to get out of it so you can rent it for a few thousand dollars so you receive it for a fraction of the price of the house that you paid for it in the first place. That's how rich. people use that to make more money to make even more money so give this video a thumbs up. and let's get right into it number one most of the trade is based on. that it might sound a bit controversial because borrowing money to start abusiness is. a horrible idea and personally i wouldnever do that to get more money from a business. i would never do this video you will find out how rich people use that  to make more money to make more money to earn more money. I would never borrow money for free there is a powerful tool if you. know how you have to use it and in this video  it's not how capitalism works that is a good way to earn more in this video.