The Pros and Cons of Taking Out a Loan to Fund an Investment Opportunity?

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You can withdraw without tax consequences. It's just the profit. And then you mentioned one of the benefits of doing it this way and taking out a loan from yourself instead of a bank is that you typically get a lower rate. But I'm wondering what is this rate generally tied to then and has it gone up with the short term borrowing rate over the past year? So the rates are pretty stable. The rate is going to be pretty close to the dividend. If the interest rates were to come up, for example, generally the dividend paid would go up as well.

Rebecca Hotsko chats with Jerry Fetta, the Founder and CEO of Wealth DynamX. They talk about how to “become your own bank” and build wealth like the top 1%, his thoughts on how the sacred account differs from traditional forms of saving/investing/borrowing, his investment strategy for 2023, and where he sees the most opportunities, and much, much more!

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

02:44 - Learn how to “become your own bank” and build wealth like the top 1%.

05:21 - How the sacred account differs from traditional forms of saving/investing/borrowing.

07:35 - When it makes sense to use the sacred account as a savings tool.

16:43 -How this strategy holds up in down markets and particularly in this economic backdrop?

33:58 - Examples of ways Jerry has used this method to invest in 2022.

37:07 - Why Jerry likes secure private lending and seller finance real estate over stock investing.

41:06 - How you can get involved in real estate investing with no prior experience in real estate.

59:37 -What are the major mistakes people make when implementing this strategy?

61:40 - Jerry’s investment strategy for 2023 and where he sees the most opportunities.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Check out: The Sacred Account.
Related Episode: Listen to MI229: How to Build Wealth Like the Top 1% w/ Jerry Fetta, or watch the video.

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