Friday, August 28, 2009

Funding Investment Properties with Borrowed Money

Borrowed money is the answer to capitalism, even for stock buyers and entrepreneurs. Many entrepreneurs will bide their time and run their business, making paltry earnings, all so they don’t have to borrow. They figure that they will eventually have the budget to do bigger things. While this is true, this is progressing at a very slow pace. Sure, they get one hundred percent of the earnings that way, and perhaps they’d get as little as twenty five percent if somebody invested a large sum of money into the business. However, because the assets the entrepreneur had to work with were so much bigger, this twenty five percent will be much, much more than the one hundred percent he would have earned if he had only used his own money.

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