DEBT IS NEVER TAXED #shorts

Debt is never taxed. You’ve heard people say this before, but there are a couple of things you should know. First, you need to be careful using debt.

You can become over-leveraged and lose your assets. Second, paying interest is not the same as paying taxes.

Last, there is a tax when you sell, but most investors exchange their gains into another property and kick the tax can down the road.

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#investing #debt #howto

[etm]

Interest rate rises, and bad tenants entered the chat.

[TheGuider]

Thanks for confusing me even further now.

[janetyao]

In theory it works, until the moment, your tenants screwing you up by not paying the rent and you can’t evict them as the government protects them. 😂

[justind]

All I heard was, ”instead of paying taxes once, you can pay interest for the rest of your life”

[dimitryunrain]

"Simple" - this was probably the most complicated explanation I've ever heard!

[bonniebonnie]

This feels like a 2008 financial move, terrible idea in these times too lol

[randycline]

You pay tax on the rental income, you pay property taxes, and you pay interest on the loan which may as well be a tax.

[jontanneguy]

And expecting everything to keep going up is the real problem.

[brianbailey]

im far more confused after watching that than i was before hand

[miracleman]

Me personally I like to pay down the loans. That frees up money to buy more property instead of going into more debt on one property.
More properties and diversified properties are safer than huge debt on one property.
Once I got to the point that the rent from one property covered the mortgage on two properties I slept better at night.
Now I’ve got four properties and any one of them can cover the mortgage for all the properties.

[jimda]

Did anybody else notice that if you get out of calculator and quote this video the numbers don't add up, well I noticed.

[vickiecannon]

I did this. I will never do it again. Cash is king. I'll pay the dang taxes.

[mtnmann]

Let’s not forget interest rates paid back on borrowed money.

[KlinikXOfficial]

I love how they forget you have to pay interest on the loan. They make it seem you get 100k you payback only 100k forgetting there's 20k+ extra you need to payback

[cult_of_odin]

Debt is antithetical to a free society. For 90% of our nation's history we were a wealth based economy with a Constitutionally sound currency

[akwa]

Step 1. Find the extremely hot property that will always have tenant, will always go up in value, and will always only need 300 usd for maintenance and try to buy it with only 20k capital invested.

[kentlane]

You better have cash flow cause if tenant doesn’t pay you owe that money still

[dog_city]

You still owe the 30k from the refinance. Yes you can make it back but your adding risk and in a recession (like we are in now) it is alot more risky

[tpolutts]

"Daddy, how did every bubble burst in history happen?"
"Mary, just watch this video and pet me drink away my tears."

[brucedraper]

it's taxed later. you are just deferring it. explain that so people understand that also..