Chris Larsen (speaker/uploaded) explains a personal-finance strategy of leveraging stock-market returns with borrowed funds to increase overall gains. In the excerpt he outlines taking a securities-backed loan at ~7% while earning ~10% in the stock market and reinvesting borrowed funds into higher-yield short-term private lending (~12%), producing a positive spread and amplified returns.
More money on that first dollar you put into the stock market. So you're making, let's just say 10% on that money in the stock market. You take a securities back loan that might charge like 7%, but you take and you put it into like a 12% return of like a short term loan, like private lending or hard money lending or something like that. Well, you're making that, that spread. So you're making 5% plus you make, you're actually making 15% on that, that money. Right. So I think you, you might love this idea too, but being your own bank, right. So it's basically kind of.
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