The video (by Jayson Lowe) advises that a person should only take a $70,000 bank loan if there is a clear investment purpose—such as buying new real estate or paying down mortgages on existing rental properties. The speaker warns against borrowing without purpose and introduces that interest on borrowing has specific tax treatment when used to invest.
$70,000
Well, the only reason that she's going to take 70,000 in the form of a bank loan is because she's got an investment purpose for it. That investment purpose could be either buying new real estate or it's continuing to pay down the real estate or the mortgage on existing real estate rental properties. I tell people, please do not borrow that money if you don't have a purpose for it. Borrow the money if you're going to use it to continue to invest, to continue to do good things with it. Because when we borrow to invest, what happens to the interest on that borrowing? Well, the interest on the borrowing becomes taxed at.
