|
Post by cadman on Aug 13, 2024 10:19:59 GMT -5
Not sure why I get these ideas 3 years too late.
Back in 2020 and 2021 during Covid, the SBA was offering low interest loans at 3.5%. I had applied and qualified for $250,000 in SBA direct loans. I took $50,000 but never used it due to selling the stores and paid it back just before I sold everything.
But it occurred to me last night, I could have taken the maximum $250,000, invested it in short term treasuries earned over 5% and kept rolling them over and taking the interest payments to pay down the interest on the loan and pocketed $200 to $300 a month in profit for a few years then paid off the loan when the rate on Treasury notes dropped.
Since the Feds was using borrowed money to finance the program, the government would have been loaning me money that I then turned around and loaned them at a higher interest rate.
They probably would have frowned on it if they found out, but it is a funny idea if you think about it. Borrowing money to loan it back to the entity that loaned it to you and make a profit. Wonder if anyone did it?
|
|
|
Post by gandy on Aug 13, 2024 10:26:14 GMT -5
To stay on topic Mr. T was brought to court and found guilty of paying back loans in full.
|
|
|
Post by richm on Aug 13, 2024 11:15:13 GMT -5
Gandy - That was just beautiful!
Cad - nothing wrong with that, what stinks is that hindsight is usually peachy.
|
|
|
Post by ferris1248 on Aug 13, 2024 11:26:02 GMT -5
Hindsight is a wonderful thing.
If my foresight was as good as my hindsight, I'd be a rich boomer.
|
|
|
Post by PolarsStepdad on Aug 13, 2024 12:36:31 GMT -5
Hindsight is a wonderful thing. If my foresight was as good as my hindsight, I'd be a rich boomer. If I didn't go completely blind every time I get a hard on I'd be wealthy too. An election blinded me to all sense and and made my pullout game week. Very very week
|
|
|
Post by ferris1248 on Aug 13, 2024 13:50:05 GMT -5
Hindsight is a wonderful thing. If my foresight was as good as my hindsight, I'd be a rich boomer. If I didn't go completely blind every time I get a hard on I'd be wealthy too. An election blinded me to all sense and and made my pullout game week. Very very week About 73 or 74 my boners kinda went away and my vision improved incredibly.
|
|
|
Post by nuevowavo on Aug 13, 2024 13:58:31 GMT -5
We did that with our business (fitness center). $200,000 was the max to borrow without a personal guaranty. When we sold the business the buyer assumed the debt and we kept the money. We knocked some of that that off the purchase price, so in essence they financed $200,000 at 3.5% for 30 years.
|
|
|
Post by bswiv on Aug 13, 2024 17:29:29 GMT -5
Not sure why I get these ideas 3 years too late. Back in 2020 and 2021 during Covid, the SBA was offering low interest loans at 3.5%. I had applied and qualified for $250,000 in SBA direct loans. I took $50,000 but never used it due to selling the stores and paid it back just before I sold everything. But it occurred to me last night, I could have taken the maximum $250,000, invested it in short term treasuries earned over 5% and kept rolling them over and taking the interest payments to pay down the interest on the loan and pocketed $200 to $300 a month in profit for a few years then paid off the loan when the rate on Treasury notes dropped. Since the Feds was using borrowed money to finance the program, the government would have been loaning me money that I then turned around and loaned them at a higher interest rate. They probably would have frowned on it if they found out, but it is a funny idea if you think about it. Borrowing money to loan it back to the entity that loaned it to you and make a profit. Wonder if anyone did it? Similar thing here........sort of......we paid off a 2.75% loan to Farm Credit......should have dumped every one of those payments into a S&P 500 fund and kept paying the loan.......
|
|
|
Post by illinoisfisherman on Aug 13, 2024 17:44:05 GMT -5
We used to borrow on our houses and use the money for building
Cheaper by 3% or more than a building loan
|
|
|
Post by johngalt on Aug 13, 2024 19:00:40 GMT -5
I took the advice of my neighbor many years ago when he told me to invest in plastics. If you know, you know 😉
|
|
|
Post by gandy on Aug 14, 2024 6:33:22 GMT -5
I took the advice of my neighbor many years ago when he told me to invest in plastics. If you know, you know 😉
|
|
|
Post by wildman on Aug 14, 2024 7:54:34 GMT -5
Went to grad school with a guy who took out the max tax deferred school loan each year even though he didn't need it all. He put what he didn't need in a fixed interest account, then paid it off as soon as he graduated with his PhD and pocketed the interest. Wish I would have thought of doing that sooner....
|
|
|
Post by cyclist on Aug 14, 2024 8:32:05 GMT -5
Not sure why I get these ideas 3 years too late. Back in 2020 and 2021 during Covid, the SBA was offering low interest loans at 3.5%. I had applied and qualified for $250,000 in SBA direct loans. I took $50,000 but never used it due to selling the stores and paid it back just before I sold everything. But it occurred to me last night, I could have taken the maximum $250,000, invested it in short term treasuries earned over 5% and kept rolling them over and taking the interest payments to pay down the interest on the loan and pocketed $200 to $300 a month in profit for a few years then paid off the loan when the rate on Treasury notes dropped. Since the Feds was using borrowed money to finance the program, the government would have been loaning me money that I then turned around and loaned them at a higher interest rate. They probably would have frowned on it if they found out, but it is a funny idea if you think about it. Borrowing money to loan it back to the entity that loaned it to you and make a profit. Wonder if anyone did it? That's what the super wealthy do to best taxes. Take out huge million dollar loans at low interest and use their multi millions or billions as collateral. Make higher interest on investments than they pay in loans and write off interest and pay no taxes.
|
|
|
Post by walkerdog on Aug 14, 2024 11:40:58 GMT -5
If you’re opposed it being possible, maybe you should spend more energy working on getting the tax code changed than you do in playing the part of a lunatic on a forum.😉
|
|
|
Post by illinoisfisherman on Aug 14, 2024 12:34:27 GMT -5
There is nothing wrong with taking advantage of the legal process to make money
Well …
I guess except when Trump does it!
😂🤣😂🤣😂🤣👍
|
|