Can Debt Be a Good Thang?
Saying debt can be a good thing is like saying you have “good” cancer, or at least it seems.
You’re probably painfully aware of what bad debt is, but it’s not often you hear about “good” debt, probably because people avoid the word like the names of STDs, afraid if they say it, they’ll get it. As a devotee’ of my dear friend and Mentor; Steve Cook, I became a debt vigilante a few years ago. Believe it or not, I decided not to use any of my own money for deals. The results: well they speak for themselves don’t they? Investing with no debt can be done. You just have to ask yourself (especially if you’re a newbie real estate investor) how much of the deal are you willing to give up for NOT having to put up any of your own ching.
Personally, my wife and I have erased a ton of debt in just a couple years. Nothing (well with the exception of one or two things) feels more amazing.
Ever heard of leveraged debt, debt used to your advantage to make money? Some consider positive cash flow earned from leveraged debt, “good debt”. The Gurus love to talk about “good debt.” These are the same people cursed with Star Jones syndrome who say they are comfortable being grotesquely “big boned” (then they drop 367 lbs.), and these are the same people who tell you to go out and buy rentals using more-and-more debt that you damn well know you couldn’t possibly pay off if you got even one vacancy. You gotta ask yourself – would you rather be ridin’ high debt free or rollin’ in the dough with debt up to your silver dollar areolas? I believe it was the great prophet P-Diddy who said, “mo’ money, mo’ problems”…do you agree?