Why Debt is Wonderful !

As I write this, I'm struck with an accute awareness of my audience.  I already know that most of you are reading this blog looking to prove, once and for all, that I am, in fact, nuts.  I'll concede that point streight away, so let there be no more discussion of my sanity.  Instead, let's turn our thoughts to the capitalist market in which we do business.  Our whole lives we've been taught by our parents and others that debt is bad...very bad.  And, to an extent, they were right.  We've also been taught that compound interest is good...very good.  And, in every way, this is true as well.  The question then becomes, is debt so bad that it can outweigh the good of compount interest?  You see, this is where the beauty of real estate investing truly lies.  

Historically, if a person wanted to invest their money in a market that was going to be profitable beyond a national average, they had to have capital.  High yield money market accounts had minimum balances.  Stocks, bonds, IRAs, etc, all required an investor to take money from his pocket (figuratively speaking) and put it someplace where it would appreciate by 5, 10, or 20% over a 12 month period.

No more!  Gone are the days of investing your own money.  Today we are blessed with a market where real estate can appreciate just as much as stocks, bonds, or any other investment.  And, when done right, it takes absolutely no money of your own.  We live in a world where a bank will GIVE YOU $200,000, let you invest it (in a home), and LET YOU KEEP ALL OF THE PROFIT.  Sure, you have to pay them for it, in little pieces here and there.  But if you're renting it out then it's actually your renter who is paying for the bank's loan.     

Do you know of any bank that would give you hundreds of thousands of dollars to invest in the stock market?  It would never happen.  Even day traders who trade with their company's large sums of money have to give back 50% of the profit they make.  Real estate is the only way to borrow money for investing and while keeping the appreciation.  So borrow as much as you can and be smart with it.  Let the beauty of compound interest dull the pain of debt.  The market may not always prove to be so favorable to the guys with no capital.  

(let me know what you think.  I'd love to hear from all of you)

Abe