MI256: How to Become Your Own Bank w/ Jerry Fetta
The Intrinsic Value Podcast - The Investor’s Podcast Network
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The Pros and Cons of Taking Out a Loan to Fund an Investment Opportunity?
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.
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