Explain to me in detail why a small business wouldn't want to consider debt as a tool. Explain the difference between small and large businesses that would mean small businesses shouldn't use debt. If you believe everything you said went over my head then maybe you can be kind enough to try to explain it in a way I might understand.
Why not 30 and triple your profit?
On 60 acres, I would want to be conservative while using OPM.
It doesn't get much lower than buying for interest only.Y'all way too serious...
buy low, sell high, :
borrow when you need to
Probly way off subject here.
You keep exampling inflation as though this current financial situation is the norm. The government pays off tremendous amounts of debt by using inflation to discount past dollar value and paying it with current dollar value. Betting on inflation can make money, but it can also put you in the poorhouse. A lot of people have had severe financial problems with adjustable rate loans.
Do you know the statistics on how many small businesses fail and how many succeed? Why do you think most small businesses fail? Bad debt management is number one.
It's quite the opposite here. I sell a lot of cattle from the farm. I get some cash and lots of checks but never have gotten a company check for cows.I understand what you are saying. You are not legally responsible to pay back a loan a company you own stock in secured. You may feel a personal. moral obligation to do so, you are not legally bound to do so, and creditors can not go after your personal assets. But say you did have a company that borrowed money and because of a variety of things, the company did not have the funds on hand to pay the loan off at maturity. If you wanted to pay it, and keep the company alive and viable, then what you could do is loan the company the money to pay the loan. You wouldn't want to run to the bank and get your money out, to pay that company's loan. If and when the company makes a profit use that money first to re-pay you plus interest. Or, you could just let it pay you interest only, and keep renewing the loan. If you set the interest rate at say 8%, you'd be as well off or even better than having it in a CD or any other kind of liquid account.
I don't know anyone that borrows money via a company they own, with the intention on defaulting on it. These are just legal business and tax strategies that everyone uses, and has existed as long as corporations have in the US, and it is just good business sense to make use of it. I mean, you could take out a personal loan to buy a house, if you wanted to. instead of a mortgage. Of course an honest loan officer would try to explain to you the foolishness of doing so. Interest on a personal loan is higher and is not tax deductible like a mortgage is.
I have sold someone a cow or two or maybe a bull, for cash money, but anytime someone has bought a herd, or a group, they have always paid with a certified or cashier's check from their company or LLC. I don't think I have done a very good job explaining this. Too many people are not understanding ( and of course, there is the handful that will argue with me if I post today is ground hog's day, but most people ignore them like I do. @Mountaintown Creek Ranch , @GoWyo , @Lucky ...help?
Yes, Is it a HELOC? And how long is it for? Yes, you'd get that 7k out and pay ijnterest on it til you put it back in. Or you can put part back in, etc. Or don't put the 7k in, and buy 7k more. And if is a HELOC, the interest you pay would be tax deductible. You aren't using OPM, though. You are using the equity in your house...your money.
You don't want to go cheap with yearlings. You would need to figure in some money for expenses, probably $200-$300 per calf. Not all of that would likely be cash expenses for you (commission, freight, labor, rent). The nice thing about calves is that they appreciate every day. Just make sure you get them to gain weight, and don't have a high death loss.
I'm friends with you on FB possibly... Brad Harris is me. I found you via the pictures your nephew posts to everything Simmentals.
I use inflation as example because it's typically 3% year after after year. So when you are saving cash to pay for something you need to think about that. I'm just like most people in that I might use cash, might finance, might skip the purchase altogether depending on what else We've got going. I've had adjustable rate loans and had them go both ways on me. I try to avoid them when possible and don't have any right now.
I was referencing yalls FB page. Did see your actual site too. Looked good.
15 years or so ago, when FB came about, the advice of the day was to use your FB page to drive traffic to your webpage, and has always had a place to post your link to your site. Past few years though, the reverse is happening. I see it all the time in the entertainment field especially. Lots of even big time bands and artists, will have a website, and when you go to it. It will have tabs like home, contact etc at the top, and some tabs aren't even hot. But the content on their home page will have nothing but links to their cocial media: FB Instagram, Spotify, YouTube channel, etc. There is where you find booking info, merch links, tour schedule, current photos and videos, etc. FB, and others are free, for one thing, and so much easier to load and change out, pics, calendars, merch, etc. and FB's ticket lijn is a lot easier and cheaper for the fans than eventbrite , etc. Yu no longer have to pay $100;s to someone to build a site, and hundreds of dollars a month the maintain, change, etc. You now can use a cheap, do-it-yourself website builder like GoDaddy to grab a domain, post a pic or two, and the icons for your social media spots, which you can update and change content yourself. Often if you use a search engine to find a website, their FB page will be the top result, and their webpage will be further down in the results.
No - I'm sure we don't have any Paradis' in Florida. And, nephew & I are born & raised in Rhode Island. All our relatives are in RI. Phil made the Simme Valley FB page.
