When would borrowing be considered smart?
Imagine to be able to become owner of an "Income Property" with no money down. That means the Bank provided you with 100% financing to acquire it.
On top of it, this "property" comes as a turnkey operation with
- "quality tenants" proven to have excellent "rent" paying history
- an onsite "Property Management Office" that oversees:
o "the janitor"
o "the maintenance crew"
o "security crew"
o "Gardner" etc.
The CHALLENGE? You would have to qualify. If you do, you get to be the "custodian" of the project. As the custodian, you need to oversee that all obligations are paid from "the revenues" of "the property".
Your REWARD: As the custodian of the project, at one point, you get to become owner of all the units and
- get to enjoy all future income from the property or
- sell the units for CASH if you so desire. (Words in "x" are analogical)
Intrigued? Contact an Advisor