A lesson on how to use other people’s money to make money. Another tips and tricks on leveraging money to make money fast. If you want to get rich quick, use financial leveraging when investing and setting up your own business.
What is a financial leverage all about? It is a process of borrowing money from other people and used the borrowed money as your investment capital or business start-up capital. When you borrow money from other people and use it to your advantage especially in your business, you can get rich quick. OPM means other people’s money. OPT means other people’s time. Use both and make yourself get rich faster.
Steps in Using Other People’s Money to Make Money
Follow this step by step procedures so that you can easily understand what is a financial leverage all about.
Step 1. Borrow money from other people. You can apply for a loan in the bank or to any lending companies. Some companies are looking for collateral such as cars or lot title and some lending companies allows you to borrow money from them without any collateral.
Step 2. Use the borrowed money as your investment capital. There are many rich and successful investors who knows how to use other people’s money to buy real estate. Learn from them. You can read any book of Robert T. Kiyosaki like cashflow quadrant if you want to learn how to use other people’s money to buy real estate properties.
Step 3. Pay the loan and get the profits. Example, if you buy a piece of land amounting to $20,000 and you borrowed $20,000 with an interest 8 percent per year, if within a year you sold the land amounting to $30,000, that means you are in profit.
- Borrowed Money + Interest: $20,000 + $1,600 = $21,600
- Profit: $9,400
That is only an example of financial leveraging. If you want to know more about how to use other people’s money to make money, always visit the investing tips section of InvestmentTotal.com. Start using financial leverage now. Let me know what you think about using OPM and OPT. Use the comment box to share your opinion.