How to get paid to buy a house and use it as collateral for trading
- There are a few things you should have set up beforehand. First an LLC so you can use the house for a business loan against it. Second, actually buy a house either in cash or mortgage (ideally you will pay this off within a month or two).
- Now that you have the set up you need to sell the house to your LLC to repay your loan and make it no longer your property.
- Now use that house as collateral for a business loan to get 5x your portion of equity in the house and begin trading with that money.
- Further leverage that money with 8x margin trading with in the brokerage account
- As an individual you are now having your housing being paid by your LLC’s trades but with no risk of losing it all because if something bad happens you file for bankruptcy the bank takes your house and sells it as quick as possible you come in and buy it for less then it’s actually worth. All this with a net loss of 1/40 th of your initial buying power.
Extras: if you ever feel you want to cash out or limit risk, give yourself a position in the business like “trade analyst” and pay yourself based on performance. This is now your money as an individual and will not disappear with bankruptcy of the company.
Submitted April 02, 2022 at 08:01PM by thiccHarrison
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