How the ULTRA WEALTHY get loans to buy cool stuff...

In this video, I'm going to talk to you about the number one strategy of the ultra wealthy to avoid taxes and get the lowest interest rate loans humanly possible or even imaginable or fathomable to humans. If you don't know who I am, my name's Ashi. I own acquisition. com. It's a portfolio of companies over $und00 million a year. I make these videos because I'm insane and I like being in wife beers in a closet. I'm kidding. I make these cuz a lot of people are broke and I don't want you to be one of them. And I too was broke for a very long period of time and it sucked. And so I hope that we can at least attenuate that situation so that you can then ask the larger questions of what is even worth it to begin with and you can come to those conclusions on your own. That being said, how do I get 1 to 2% loans or as they call them margin, right? Loans on margin uh to buy right? Or buy more assets or whatever. All right, so quick overview of what this topic is. You've heard me maybe talk about this in other videos, which is like if you have, let's say, $100,000 in stocks, okay, you have $100,000 in stocks. depending on who you work with. If you work with them, a more established bank and you have a longer relationship with them, let's say you, you know, bank or you do wealth management with Maril Lynch, you will have a banker and they will tell you how to do this. But I'm guessing that if you ask the question or you're curious, you clicked on this video, you don't have that. All right? So those banks will typically give 50 60 sometimes 65% of the total assets in your portfolio as a assetbacked loan, which is a margin-based loan. All right? And so that means that if I had $100,000 and I had 65% that I could take as a loan, then I could get an additional $65,000 at 1 to 2%, which is crazy. Mind you, the interest rates can change over time

but for the, you know, for a very long period of time, it's been 1 to 2%. All right? Which is very, very, very low. And the nice thing about this is that there's no closing cost, there's no fees, there's no startups, there's no nothing. You just pay the interest while

you hold the money. And all you have to do is pay it back and then your interest payment stop. All right? So it's nice as a revolving credit line for stuff that you want to make a quick purchase and then give it back. All right? That is how it's you do buying on margin. All right? That's the That's where the term comes from. Many of you guys have asked, "How do I actually do this? " Great question. So, what we're going to do is we're going to travel together through the realms of time and we're going to use this new mystical thing and I want to teach this process to you because I think that it's very valuable. It also serve you for answering any of the questions that you have in your life. Google. All right. So, take loans against stocks. Let's see here. Oh, look. It looks like there's a lot of people who are willing to do this for us. Let's see if Alex did something ahead of time. He sure did. We clicked this guy and let's see what it says. They explain a little bit more how useful. And if I wanted to borrow on margin du apply for margin. That's all you have to do. And if you're like, well, I don't bank with Fidelity. Well, I'll bet you that wherever you bank, they do this. Now, let's say uh Robin Hood margin margin. Oops. Margin loans. There we go. Let's look here. What is margin investing? Let's click. They give us an answer. Unlike deposits, blah blah, you can upgrade to Robin Hood Gold. That's how we have to do it. And that will allow you to then borrow on margin. And so all you have to do is sign up, upgrade to Robin Hood Gold. Let's see what it does. D. All right. And so a reason I do this is because sometimes I get questions that have answers that are Googleable. And so please, for the love of God, one of the best ways to stay poor is to have a question and then not Google the answer. Post a comment in something and then say, "Well, I guess I scratched my itch. I asked the question. " No, find the answer. Right? And so the reason that

this by margin based loans and things like that are useful is that they are taxfree. All right? So, if you wanted to pay for stuff, and this is what the ultra wealthy do when they go IPO and they've got a billion dollars worth of stock in something, they just take loans against those stocks. They don't have to pay income tax. They take loans against the stock, they buy stuff, and the amount that the stock goes up year-over-year exceeds what they borrow. They can borrow more and they keep doing that until they die and never pay taxes. All right, that's how this works. Now, the risks. So, the risks of doing this are that let's say for some reason you borrowed at and I think uh there's other ones. There's like M1 Finance, I think, is one that I heard of that does up to 35%. And the percentages will vary based on the size of your portfolio, how long you've been doing business, blah blah blah, right? And so it's usually 30 to 60%ish. All right? And so let's say that you took out a 60%, you max this puppy out, right, on your $100,000. Let's say that your portfolio because of a crash in the marketplace drops to $50,000. So you took 60, right? And now your portfolio is worth 50. Well, to to be in accordance with the risk tolerance that they have, you need to be 60% of the new $50,000 value, which means that's $30,000 is what you're allowed to borrow, which means you have to pay back the 30 of the 60 that you borrowed originally. And if you don't have the money, they sell your Crazy, I know it sucks. That being said, that is the risk and that is why people lose their asses on margin. Now, as a quick transition to this, the reason um and you might ask, Alex, do you borrow on margin? I have in the past, I have also repaid it back quickly. I tend to use margin for very short-term type things. So, like 6 months, 12 months transaction stuff. So, like if I do like private lending for hard money loans, things like that, that's a perfect thing for me. So, it's like if I'm making 12% or 15 or 20% on the money from a hard money loan, I can borrow it one to two and I know I'm going to get paid back and the money that I'm lending out, I'm securing against another asset. So, if they don't pay me back, I get the asset and then I can sell the asset and pay it back, right? That's how I do it. That being said, I am not a hu like at this current moment, this current juncture in time, I have zero debt, not even a mortgage. And you might be like, Alex, you're crazy. Probably, probably. But for me, I sleep really well at night knowing that I just don't owe anyone anything. And for me, the objective of money was freedom, not more money. Just a side note. Now, I do subscribe to something Dave Ramsey said that really resonates with me. He said, I'm paraphrasing, that debt is a version of risk. And risk if extended over a long enough time horizon exposes you to zero. Meaning you could lose it all. And since life is long, that means that there is a high possibility between now and the time you die that you do have one of these situations where you could get exposed to zero. And for me, I would rather not sacrifice what I do have and that I do want and need for more of something that I don't want or necessarily don't need because me doubling my money makes no difference in my life, but me losing all my money

makes a very big difference. And so for me, why risk something that I don't want to lose for need? And so for that reason, I have been not a big leverage proponent in general. I am very underlevered in general. All right? And so I have run my life that way and I have focused my life on increasing the value of the assets that I have. I'm just continuing to do that rather than juice everything through debt. And that's just not my game personally. And we still built a 9 figureure net worth without any of that. And so I think you can do it. And maybe I'm silly, which is very possible. And maybe when I'm 60, I'll think that I was an absolute idiot for thinking that way. It's very possible because you know what? We learn things and we grow. But as current state, Alex, in 2022, uh, April, I, uh, I don't think that. So, anyways, keep being awesome. Keep crushing Mos Nation. I hope that gave you some illumination to like how do you do margin loans? Um, my recommendation to you as a final parting words and disclaimer around this is that if you were going to partake in this risk, okay? Because it is risk. Borrow significantly less than the limit. All

right? So, if you want to use the your, you know, borrow on margin, borrow 10%, borrow 20% tops, keep it way underneath so that there's literally no way that a margin call would come up where you'd actually have to sell some of your stuff because the thing is the moment when they get you to sell it is the moment when it's worth the least. All right? So, you get double hosed. lose the power of the money that you had and then you have to sell stuff at a massive loss. All right? So, that's when you want to be buying and instead you're selling and that's what crashes markets. A lot of people borrow that way and that's when they ride the bull and bear cycles and we want to be a little smarter and try not to do what everyone else is doing so that we can have what no one else has. All right, so Mosy Nation, keep being awesome. I make these videos because I enjoy it apparently and uh I do this because you know maybe some of you guys will crush it and cross three million or 10 million and uh want to work with us at acquisition. com so we can get you to 50 and beyond. So keeping awesome. Love you all. See you in the next vid. Back.