My advice is, if you can borrow, borrow.
My wife tells would-be investors that my entire portfolio is built on my comfort and know-how in navigating loans. It's true: I’m a nut for borrowing money.
I was lucky to start buying real estate when borrowing was much, much easier. I would utilize zero-money down loans and get no-interest credit cards to do the rehabs. Lather, rinse, repeat. Those specific programs are gone, but being up-to-date on the latest lending produce is how you get rich.
And these days, the windfalls are almost always in the form of government relief (COVID business loans, and now these SBA disaster relief loans). If you qualify, take advantage.
It’s almost impossible to transition from being an earner to being an owner without borrowing money. It’s just too hard to save.
There are three solutions to not having enough money: you can spend less and be miserable (Dave Ramsey et al.), you can earn more (Ramit Sethi et al.), or you can borrow (Brock Harris).
I’m not saying max out your credit cards and live above your means. If debt stresses you out, forget it. But every rich person I know has mountains of debt.
Even when Lori and I started selling houses together, we borrowed $300k to launch our business. It's true: you have to spend money to make money.
And when it’s raining, grab a bucket. Go to lending.sba.gov.
Remember, if you can borrow money below the inflation rate, you’re making money doing nothing.
By the way…borrow, but don’t lend. In every story I’ve heard about someone losing a pile of money, they gave it to someone else.
