Earn from bank loan
16.12.2009
Author: Christian from France Category: Investments
A friend of mine developed a highly successful business. He took a loan for an apartment and he rent it later. The payment rate for the apartment was almost 100 Euros less than he got from renting it. The idea was to earn a bit every month, and after the payment to the bank is over, he will own the flat.
Later he convinced the bank to give him bigger loan, so he bought 6 apartments in one building. I think that he has the whole building for himself. So counting a 100 Euros profit per apartment, he has 700 Euros profit per month, 8400 Euros per year. Considering that this is extra money besides his regular work, I think that this is a great opportunity to become rich. And the best part is that after 20 or 30 years he will experience tremendous wealth when he pays off the loans.
Of course, somebody would say that it is not normal to be so much in debt. After all, he took a loan for seven apartments. Is it brave or crazy? I think it is very risky, but smart thing to do.
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