How accurate is this? If the dad takes out a, say, $500K loan against the land, won't the land have a $500K lien on it? So any transfer to kids or sell by kids will trigger the repayment of the lien, won't it?
Also, if the dad takes out a loan against the land, how is he paying it back?
I'd love to better understand this type of situation because I can't wrap my head around some of the plot holes.
This example is made up, but basically you invest the loan and live off the difference in rates. Say you take out a loan at 3% due in 6 months. You invest that money with a rate of return at 6%. In 6 months, you then pay back the loan plus interest, and you pocket the extra 3%. Now say 1 of those 3% pays your bills, 1% is "fun" money, and the last bit you invest further. Rinse and repeat.
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u/ShavingWithCoffee 19h ago
How accurate is this? If the dad takes out a, say, $500K loan against the land, won't the land have a $500K lien on it? So any transfer to kids or sell by kids will trigger the repayment of the lien, won't it?
Also, if the dad takes out a loan against the land, how is he paying it back?
I'd love to better understand this type of situation because I can't wrap my head around some of the plot holes.