Perhaps you read this title and thought to yourself, “how is this
possible? Is it a trick?” Let me assure you that it is not a trick.
Indeed, it is very real. There is no scam. It’s an age-old investing
strategy called leverage. Leverage is using the right balance to use a
little force to generate a big motion. Investment gurus have been
doing it successfully for years in margin accounts to borrow stocks,
make money on them, then sell them. The difference in price is their
But this is not a crazy investment scheme. It’s a tried and true
method of investing that you’ll feel completely at ease with.
If you own a home, you can get a secured loan to help you leverage the
value of your home into a greater amount. Here’s how.
When you bought your home, you paid a certain amount for it and
although you have been enjoying it over the years, you (like many
other people) probably hope that your home will increase in value so
when you sell it you’ll make money. Who doesn’t want to do that?
So here’s where a secured loan comes in. A loan, when used to improve
your home, can help you increase the value of it. And often, the
overall value of your home increases at a greater rate than the amount
of the loan! That’s great news. And that’s leverage!
So you should get a secured loan and build that addition,put on a
roof, get new windows, or give your house a paint job. Whatever you
decide to do, you’ll be helping to increase the value of your home,
which is an investment you can enjoy until you decide to sell.
And a secured loan lets you do that inexpensively.This is because a
secured loan is a loan that uses the guarantee of an asset to help you
secure a loan. When a lending institution is deciding whether or not
to give you money, they look at the potential risk they will take. If
you have nothing to offer them but your credit rating, the risk is
higher than if you have a home, a car, some stock certificates, or
some art. Anything of value will help them reduce the perceived risk
they feel because they can potentially take the asset and earn back
their money by selling it should you not be able to make payments.