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<blockquote data-quote="Warren Allison" data-source="post: 1715584" data-attributes="member: 40587"><p>Borrowing money is not all that bad an idea, if you are reasonably sure there could be enough profit to have some money left after the loan is paid. Back in the late 70's ( after I turned 18) and early 80's, we still had local banks around here. The one in my hometown (population 93 in 1975, and still is between 90- and 100) was owned primarily by the cotton farmers. My best friend's dad was prez, my girlfriend's mom was manager, and all of the stock holders were just about kin to everyone. I would go to horse sales on the weekends, buy horses and write a check, and call Bill's dad Sunday and tell him what I had wrote a check for. He'd tell me to come in that week and sign a note...he'd have it ready when I came by. Back then the checks were all mailed to the bank, and most of the time I would have the horse or horses sold by the time the check got there. </p><p>In the 80's my rodeo partner and I, would go by the bank and tell them we were gonna go by some cows. Ms. Sue would ask what we needed, and we'd get a line of credit for 25 to 50k. If we spent over that it wouldn't matter... she'd just up it. We would call or go by there on Monday, tell her how much we spent and how many we bought, and that was that. We were mostly buying heavy bred cows, then we'd take them back to the sale after calving and sell them as pairs bred back. Not a lot of risks, as we never paid more for the cows than they would bring at the very next sale. We did this for 6 or 8 years. Whenever we heard of a pasture for rent, we'd go get it and buy every how many cows it would hold. Back then, you could rent a lot of pastures for just repairing fences, etc. </p><p></p><p>These days, I probably wouldn't fool with any of the national banks. The last local bank I used sold out to Wells Fargo a couple of years ago. I have a couple of S Corps and 1 LLC that I could borrow money via them, and not have to guarantee loans personally with that local bank. I know I wouldn't borrow funds personally these days to buy cattle, unless I already had them sold before I bought them. But the OP, [USER=24947]@callmefence[/USER] and others are right. If you really wanna make money, use OPM, not your own if you can.</p></blockquote><p></p>
[QUOTE="Warren Allison, post: 1715584, member: 40587"] Borrowing money is not all that bad an idea, if you are reasonably sure there could be enough profit to have some money left after the loan is paid. Back in the late 70's ( after I turned 18) and early 80's, we still had local banks around here. The one in my hometown (population 93 in 1975, and still is between 90- and 100) was owned primarily by the cotton farmers. My best friend's dad was prez, my girlfriend's mom was manager, and all of the stock holders were just about kin to everyone. I would go to horse sales on the weekends, buy horses and write a check, and call Bill's dad Sunday and tell him what I had wrote a check for. He'd tell me to come in that week and sign a note...he'd have it ready when I came by. Back then the checks were all mailed to the bank, and most of the time I would have the horse or horses sold by the time the check got there. In the 80's my rodeo partner and I, would go by the bank and tell them we were gonna go by some cows. Ms. Sue would ask what we needed, and we'd get a line of credit for 25 to 50k. If we spent over that it wouldn't matter... she'd just up it. We would call or go by there on Monday, tell her how much we spent and how many we bought, and that was that. We were mostly buying heavy bred cows, then we'd take them back to the sale after calving and sell them as pairs bred back. Not a lot of risks, as we never paid more for the cows than they would bring at the very next sale. We did this for 6 or 8 years. Whenever we heard of a pasture for rent, we'd go get it and buy every how many cows it would hold. Back then, you could rent a lot of pastures for just repairing fences, etc. These days, I probably wouldn't fool with any of the national banks. The last local bank I used sold out to Wells Fargo a couple of years ago. I have a couple of S Corps and 1 LLC that I could borrow money via them, and not have to guarantee loans personally with that local bank. I know I wouldn't borrow funds personally these days to buy cattle, unless I already had them sold before I bought them. But the OP, [USER=24947]@callmefence[/USER] and others are right. If you really wanna make money, use OPM, not your own if you can. [/QUOTE]
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