Quote:
Originally Posted by RickyTan3
Another good example of being tied down.
Me and couple business partners needed credit for business. We tried a mass as much as possible because we need a ridiculous amount of cash flow.
I have 0 mortgage = 0 debt, the bank instantly gave me 100k limit on my credit card and thats from 1 bank.
1 guy who owns a house was only able to get a 10k limit on a card because his mortgage maxed out his lending limit.
next guy has no debt and lots of assets he was able to get 100k as well.
guess what? the guy who "owns" the mortgage doesnt really own a home.... hes in debt.... and has a lower chance of being successful in our business because his shitty cash flow now.
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Based on your logic, you don't own your business either. The bank does since that is their money you are spending on
YOUR business.
It's all semantics. Does your partner really own his own home? Well, yes and no. He's free to do what he likes with it. Paint it whatever color he wants. Decorate it however he likes. If anything happens to it, he is liable for it and the bank will get their money either way.
Do you and your partners own your own company? Yes and no. You guys can run it however you like. But if you lose all your money and the business goes tits up, you still owe the bank the money you
borrowed.