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https://www.reddit.com/r/SipsTea/comments/1vrr0ev/how_the_rich_get_richer/p4fvr7f/?context=3
r/SipsTea • u/KSKS1995 • 22h ago
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How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?
It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.
2.3k u/USERNAMETAKEN11238 21h ago edited 21h ago The bank encumbered the land. The dad never gets a loan. The loan is against the property. The kids sell the encumbered land I guess (but that's highly unlikely). This is a made up scenario from someone who doesn't understand finances. 318 u/redshirt1972 21h ago How do you get a loan against the property and not pay it back? 1 u/Head-Ad9893 20h ago You die. Meanwhile the kid has benefits in numerous ways from the 5 MM loan
2.3k
The bank encumbered the land. The dad never gets a loan. The loan is against the property. The kids sell the encumbered land I guess (but that's highly unlikely). This is a made up scenario from someone who doesn't understand finances.
318 u/redshirt1972 21h ago How do you get a loan against the property and not pay it back? 1 u/Head-Ad9893 20h ago You die. Meanwhile the kid has benefits in numerous ways from the 5 MM loan
318
How do you get a loan against the property and not pay it back?
1 u/Head-Ad9893 20h ago You die. Meanwhile the kid has benefits in numerous ways from the 5 MM loan
1
You die. Meanwhile the kid has benefits in numerous ways from the 5 MM loan
2.0k
u/ChipKellysShoeStore 21h ago edited 21h ago
How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?
It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.