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Debt Can Be A Real Estate Investor's Best Friend
By Kalinda Rose Stevenson, PhD
The most successful real estate investors understand the difference between good and bad debt.

From a consumer perspective, no is good debt. The basic consumer goal is to be free.

In contrast, the most successful real estate investors know that is an investor's best friend. Why?

The reason for this is OPM. OPM is a short-hand way to refer to "Other People's Money." OPM is just another term for good debt.

Physics describes the concentration of power of a lever. Think about moving a rock by putting a crowbar under the rock and pushing down on it. The lever allows you to move the rock. Good debt, in the form of OPM, is a type of leverage.

Levers allow you to move something that you couldn't move if you tried to pick it up with brute strength.

When you borrow money, you create a type of leverage. You can use someone else's money as a lever to accomplish what you could not do with your own money. This type of is a powerful tool. You are using someone else's money for your own purposes.

The reality is that someone always has the money you need to buy investment property. If you don't have it, you can borrow OPM to buy property you could not afford to buy with your own money.

Good allows you create profit. It gives you a tool to buy an investment property you could not buy with your own money. Profit from the investment property turns into your wealth created by debt.

Compare good with bad debt. Consumer means going into for something that won't bring you profit. If you charge $3000 for a plasma TV, you have created bad debt. The TV is not going to bring you profit. It is going to cost you money.

Consumer often has no leverage. If the is not a tool to create wealth, it is bad debt.

When you borrow the same $3000 to invest in property that leads to profit, is a tool to create wealth. This is the definition of good debt.

Debt is the primary wealth-building tool of some of the richest people in the world. Donald Trump is an example of someone who knows



how to leverage to create even more wealth. He uses borrowed money to acquire and build even more properties.

Whether you call it leverage, or OPM, good is one of the fastest means to creating wealth.

Do you want more money to invest in real estate? Find out how to "Partner For Profits" in a nomoneylimits.com/partnerforprofitsebook.htm ">real estate investing book about partnerships with compatible investors. You can become a No Money Limits investor.

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