Make Money By Owing Money

Make Money By Owing Money

Make Money By Owing Money
Most people believe that you​ should not owe money in​ order to​ make money,​ but the​ exact opposite can be true in​ a​ lot of​ cases .​
There are certain techniques that a​ person can use to​ make a​ lot of​ money even though they are up to​ their nose in​ debt .​
This sounds like it​ is​ too good to​ be true but it​ is​ not .​
This is​ not any type of​ scam nor is​ it​ illegal .​
These techniques can be used by virtually anyone who has time and a​ little patience .​
Of course,​ an​ income is​ also helpful in​ most cases,​ as​ you​ will be waiting for money to​ come in.
As you​ know,​ there are two different kinds of​ debt,​ positive and negative .​
In the​ interest of​ this discussion,​ I​ will explain the​ differences in​ simple terms .​
Positive debt is​ that which reflects well on​ your credit report .​
All loans,​ credit cards and so on​ that are paid on​ time and in​ good standing with the​ lender would be considered positive debts .​
Negative debts are those that are not in​ good standing and that drag down the​ rating of​ your credit score .​
These reflect poorly on​ you​ and there is​ little that you​ can do about that unless you​ manage to​ bring the​ negative to​ a​ positive by reaffirming with the​ lender.
Now,​ it​ is​ good to​ have some positive debt on​ your record .​
That is​ something that a​ lot of​ lenders like to​ see when they are determining whether or​ not you​ are worthy of​ receiving money from them .​
Now the​ catch 22 here is​ that you​ cannot have too much debt,​ even if​ it​ is​ all positive .​
In that case then the​ lender would have serious doubts about whether or​ not you​ would be able to​ pay for the​ loan that you​ are given .​
So,​ keep in​ mind that you​ will need a​ very good debt to​ income ratio .​
This will ensure that you​ will receive not only the​ loan,​ but also the​ best possible interest rate for the​ loan as​ well.
Now,​ on​ to​ making money .​
You need to​ invest and make some solid choices when doing so .​
The logical choice would be real estate by way of​ rental properties .​
This is​ a​ good way to​ make money even when you​ owe a​ lot of​ money .​
Here is​ what you​ do: Watch your local newspaper for a​ tax sale .​
This is​ a​ sale where the​ homes in​ the​ area are being sold to​ pay off the​ back taxes that are owed on​ them .​
It is​ also a​ great way to​ find properties that are good for rentals at​ a​ small rate .​
It is​ not uncommon for you​ to​ pick up a​ house for as​ little as​ one thousand dollars.
With this practice you​ are paying the​ taxes that are owed and then you​ own the​ home .​
Now there is​ the​ matter of​ the​ owner .​
If they can come up with the​ money within a​ certain amount of​ time,​ normally 30 days,​ then they can purchase the​ home back along with a​ fee that goes to​ you​ for paying the​ taxes .​
This rarely happens,​ so you​ will wind up with whatever homes that you​ have bid on​ in​ most cases .​
Now,​ you​ will need to​ pay for these homes .​
So go to​ the​ bank and take out a​ loan for the​ amount that you​ need .​
Get the​ best interest rate that you​ can and then pay off the​ properties.
Once you​ own the​ properties you​ can start renting them out .​
Use the​ income from the​ rent to​ pay the​ payments on​ the​ loan .​
When you​ do this,​ you​ are not paying any money out of​ pocket for the​ loan and you​ are increasing your credit rating all around .​
Not only that,​ you​ will most likely make more per month on​ the​ rentals than the​ loan payments so you​ will have an​ extra amount of​ disposable income with little effort.

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