Buying Product on Credit

Using Credit or a Loan Rather Than Your Money

Since I know from experience that some of you will need convincing to use credit to buy product, let me prove why it is the best way.. First, you will have available to you about ten times the money power, as usually you have far more credit than you do real money. So, you are obviously able to buy far more product. Further, this is basically what most all businesses do. Of course, you should consult a CPA or someone who is good with money before buying a lot of stuff. I am not going to be blamed, because you did not do the math before buying something or did not calculate risk into your equations. BUT THE FACT OF THE MATTER IS, using your real money can really drain you. I have used $10,000 one time, of my own money to buy product. I regreted it later. Why? Because I now had that much less money in my account, when I could have just used the banks money and paid it back as I was selling the stuff. So, I lost access to that money, in a sense. The fact is Donald Trump and just about every other business man out there does it this way.. Trump has TONS OF DEBT, but it is good debt as he makes money off of the debt. He obviously learned this way early on and of course knows tons we don't know.

Since some of you are likely still skeptical, I will give you a plain example that will make it very clear that it is simply the best way. Take for instance a PS2 Slimline (Playstation 2). Generally, they sell for like $150 in stores. You can sell one on eBay for about $115. You can buy it in salvage form for about $45 bucks. Now, if you buy it for $45 bucks, put it on credit at 10% apr. You buy it, get it, sell it in 1 months time. You pay back the $45 bucks on the credit and keep the $115 - $45 = $70 profit. How much APR did you pay? Here is how you calculate: $45 x 0.10 APR x 1/12 months = $0.38 cents APR. So, for $70 profit, you spent $0.38 cents APR.

It should be obvious to you here that IF you do it right, you will make good money on the loan. So, where do people go wrong.. Well, I can tell you from experience, most of the time it has something to do with not paying back the loan after getting the money, or buying the wrong product that takes you 2 years to sell, or buying product from a bad source which makes you little profit, etc. So, in other words, if you cover ALL YOUR BASES BEFORE making a purchase, you will likely make very good money. The main problem, though, is most people can't even identify the bases. Ignorance is costly. I am saying this, as I have myself been ignorant on these very things I listed. I let $25,000 in debt from buying stuff rack up, because I was not faithful in paying back my loan when the sale went through. Or, I would buy product, a long time ago, from a bad source, which would not make me a lot of money.. SO, I have learned these lessons and NOW I am faithful to pay back the loan, buy from good sources, etc. Now, if I knew all that I know now, back then, I would likely have $25,000 less in debt. THE GOOD NEWS is I am here now telling you all this, so you don't have to make the same mistakes. If you listen, I might just save you $25,000 dollars. Do you see my point now?
So, what am I trying to get across here. If you use credit to buy salvage/overstock/estate auction product and you do it correctly, you will be able to make far more money than trying to use your real money to buy it. You will likely be able to make 5 to 10 times more using credit. But, you need to make sure you cover all your bases and respect the loan/credit.

Robert Sanchez <armtcheez@hotmail.com> wrote:

I really looked at all of the sites that you sent. Although, my pockets are no where as deep as they need to be. Is there a more beginner approach? Those sites are for well set businesses, I assume? Anyway, what else can we see in the immediate future? Thanks, Robert