... there is not enough juice even on the best day to justify the debt for many of us.
. . . or the added risk, which is an added factor many people don't consider.
The risk is there you know....no matter where the funds come from.. . . or the added risk, which is an added factor many people don't consider.
The risk is there you know....no matter where the funds come from.
Then don't. I really don't understand your fascination with this thread. If you don't want a loan; don't go get one. You've not added a single piece of usable advice for those of us that are comfortable using loans for expansion.We know the difference. We would rather own 20 cows free and clear than 2000 with debt on them. We purposely choose to grow off cash flow or what we have saved even if it means slower growth. Especially on cattle... there is not enough juice even on the best day to justify the debt for many of us.
I was responding to some of the stupid remarks. Nothing to do with you any more. You made it clear you want a govt loan, my tax dollars, to fund your business expansion.Then don't. I really don't understand your fascination with this thread. If you don't want a loan; don't go get one. You've not added a single piece of usable advice for those of us that are comfortable using loans for expansion.
I could work the math for you why it's a great tool if used properly but something tells me I'd be wasting my time. Enjoy your Thanksgiving.
I suspect you don't pay enough in federal taxes to accuse anyone of using your money to fund their expansion.I was responding to some of the stupid remarks. Nothing to do with you any more. You made it clear you want a govt loan, my tax dollars, to fund your business expansion.
Conventional thinking is you need to rent land till you own the cattle outright, then it is OK to borrow for land.
But interest rates are crazy low. So is it different this time?
Conventional thinking is you need to rent land till you own the cattle outright, then it is OK to borrow for land.
But interest rates are crazy low. So is it different this time?
Realize that there is always some negativity that arises here. Especially when the idea is contrary to what some people do. Suggesting going full time into cattle will really bring that out. Just manage the credit correctly and don't get extended too far out where a crash will take you down. A crash will hurt but if you are not over extended you will survive. Strangely I know two different men who got over extended. The market took a down turn and both went bankrupt. However both of them learned from this painful experience and have both come back and are doing very well. And they were back up and running quicker than one would think.Then don't. I really don't understand your fascination with this thread. If you don't want a loan; don't go get one. You've not added a single piece of usable advice for those of us that are comfortable using loans for expansion.
I could work the math for you why it's a great tool if used properly but something tells me I'd be wasting my time. Enjoy your Thanksgiving.
This is pretty much advice for everything in life. Having a drink is fine. Having twenty isn't. I think when people hear loan they instantly associate it with overextending oneself.Realize that there is always some negativity that arises here. Especially when the idea is contrary to what some people do. Suggesting going full time into cattle will really bring that out. Just manage the credit correctly and don't get extended too far out where a crash will take you down. A crash will hurt but if you are not over extended you will survive. Strangely I know two different men who got over extended. The market took a down turn and both went bankrupt. However both of them learned from this painful experience and have both come back and are doing very well. And they were back up and running quicker than one would think.
Yep, at 1.75%, I'd borrow every dime I could. A man would be crazy not to. @TTBHG, you are right about the fact that there are many on here that will holler "fake", and say you are lying, if you post anything that they know nothing about, or is contrary to the way they have always done things.If you can borrow money for your operation at 1.75%, like a previous poster claimed, you'd be insane not to take every cent you could get. Inflation alone is rising faster than that so your own money is costing you more to use over a five year period versus that loan.
That doesn't even account for the opportunity loss cost of waiting to expand versus doing it now. Again, the math is quite simple but I suspect even if it was laid out in simple terms it would be labeled as fake news.
Again, if folks don't want loans then they should absolutely not get one but these folks commenting about how loans are worse than the devil are completely uniformed.
If your health is good AND you can cash flow it AND there is no immediate value trap AND you enjoy it - - then why not.If you can borrow money for your operation at 1.75%, like a previous poster claimed, you'd be insane not to take every cent you could get. Inflation alone is rising faster than that so your own money is costing you more to use over a five year period versus that loan.
That doesn't even account for the opportunity loss cost of waiting to expand versus doing it now. Again, the math is quite simple but I suspect even if it was laid out in simple terms it would be labeled as fake news.
Again, if folks don't want loans then they should absolutely not get one but these folks commenting about how loans are worse than the devil are completely uniformed.
There's a big difference in using credit to run your outfit correctly and efficient and using it to buy a boat or even a house.
Lots of folks don't see the difference because they've never had to. Trying to sit back and save for something that can earn you way more income than the interest cost you can really hold you back. Not just lost income but being able to operate correctly.
Your outfit needs to be paying the loan. It shouldn't be coming out of your paycheck.