WEBVTT

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against the stock, they buy stuff, and the amount that this stock goes up year over year

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exceeds what they borrow. They can borrow more and they keep doing that until they die and never

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pay taxes. Alright, that's how this works. Welcome to the game where we talk about how to get

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more customers, how to make more customers, how to keep them longer, and the many failures and

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lessons we have learned along the way. I hope you enjoy and subscribe. I'm going to talk

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about the number one strategy of the ultra wealthy to avoid taxes and get the lowest interest rate

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loans humanly possible or even imaginable or fathomable to humans. Alright, if you don't know

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how I am, my name is Oxymozzi, I own acquisition.com. It's a portfolio of companies that have

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over a hundred million dollars here. I make these because a lot of people are broken. I don't want to

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complain on them. I too was broke for a very long period of time and it sucked. And so

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I hope that we can at least attenuate that situation so that you can then ask the large

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questions of what is even worth it to begin with, and you can come to those conclusions on your own.

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That being said, how do I get one to two percent loans, or as they call them, margin,

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right, loans on margin, to buy shit, right, or buy more assets, or whatever. Alright,

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so quick overview of what this topic is. You've heard me maybe talk about this in other videos,

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which is like, if you have, let's say, $100,000 in stocks, okay, you have $100,000 in stocks.

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Depending on who you work with, if you work with a more established bank and you have a longer

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relationship with them, let's say you, you know, banker, you do wealth management with Merrill Lynch,

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you will have a banker and they will tell you how to do this. But I'm guessing that if you ask

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the question you're curious, you click on this video, you don't have that. Alright, so those banks

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will typically give 50, 60, sometimes 65% of the total assets in your portfolio as an asset

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backed loan, which is a margin-based loan. Alright, and so that means that if I had $100,000

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and I had 65% that I could take as a loan, then I could get an additional $65,000 at one to two

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percent, which is crazy. Mind you, the interest rates can change over time, but for the, you know,

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for a very long period of time, it's been one to two percent. Alright, which is very, very, very,

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low. Alright, and the nice thing about this is that there's no closing costs, there's no fees,

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there's no startups, there's no nothing. You just pay the interest while you hold the money,

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and all you have to do is pay back, and then your interest payments stop. Alright, so it's nice

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as a revolving credit line for stuff that you want to make a quick purchase and then give it back,

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right? That is how it's you do buying on margin. Alright, that's where the term comes from. Now,

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many of you guys have asked, how do I actually do this? Great question. Alright, so what we're going

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to do is we're going to travel together through the realms of time and we're going to use this new

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mystical, mystical thing. And I want to, I want to teach this process to you because I think that

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it's very, very valuable. It also serve you for answering any of the questions that you have in

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your life. Google. Alright, so take loans against stocks. Let's see here. Oh, look, it looks

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like there's a lot of people who are willing to do this for us. Let's see if Alex did something

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ahead of time. He sure did. We clicked this guy and let's see what it says. They explain a little

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bit more how useful. And if I wanted to borrow on margin that apply for margin, that's all you

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have to do. And if you're like, well, I don't bank with fidelity. Well, I'll bet you that wherever

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you bank, they do this. Now, let's say Robinhood margin margin loans. There we go. Let's look here.

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What is margin investing? Let's click. They give us an answer. Unlike it's a deposit, blah, blah,

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you can upgrade to Mar Robinhood gold. That's how we have to do it. And that will allow you to then

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borrow on margin. And so all you have to do is sign up upgrade to Robinhood gold. Let's see what it

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does. And so a reason I do this is because sometimes I get questions that have answers that are

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Googleable. And so please for the love of God, one of the best ways to stay poor is to have a question

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and then not Google the answer. Post a comment in something and then say, well, I guess I scratch my

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inch. I asked the question. No, find the answer. And so the reason that this by margin based loans,

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things like that are useful is that they are tax-free. All right. So if you wanted to pay for

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stuff, and this is what the ultra wealthy do, when they go IPO and they've got a billion dollars

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of the stock and something, they just take loans against those stocks. They don't have to pay

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income tax. They take loans against the stock. They buy stuff. And the amount that the stock goes

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up year over year exceeds what they borrowed. And they can borrow more and they keep doing that

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until they die and never pay taxes. All right. That's how this works. Now, the risks. So the risks

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of doing this are that let's say for some reason, you borrowed at, and I think there's other ones,

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there's like M1 finance, I think is one that I heard of that does up to 35%. And the percentages

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will vary based on the size of your portfolio, how long you been doing business, blah, blah, blah, blah.

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And so it's usually 30 to 60% ish. All right. And so let's say that you took out a 60%, you max

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this puppy out right on your hundred thousand dollars. Hey guys, real quick, if you're new to the

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podcast, I have a book on Amazon called 100 million dollar offers that over 8,000 five star

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reviews has almost a perfect score. You can get it for 99 cents on Kindle. The reason I bring it up

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is that I put over a thousand hours into writing that book. And it's my biggest gift to our

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community. So it's my very shameless way of trying to get you to like me more and ultimately make

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more dollars so that later on in your business career, I can push the part with you. So that's my

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gift. Go check it out. Amazon and back to the show. Let's say that your portfolio because of

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crashing the marketplace drops to 50,000 dollars. So you took 60, right? And now your portfolio is

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worth 50. Well, to to to be in accordance with the risk of tolerance that they have, you need to be

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60% of the new 50,000 dollar value, which means that's 30,000 dollars is what you're allowed to borrow,

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which means you have to pay back the 30 of the 60 that you borrowed originally. And if you don't

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have the money, they sell your shit. Crazy. I know. It sucks. That being said, that is the risk.

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And that is why people lose their asses on margin. Now, as a quick transition to this,

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and you might ask Alex, do you borrow on margin? I have in the past, I have also repaid it back quickly.

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I tend to use margin for very short term type things. So like six months, 12 months, transaction

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stuff. So like if I do like private lending for hard money loans, things like that,

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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

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money loan, I can borrow right one to two. And I know I'm going to get paid back in the money that

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I'm lending out. I'm securing against another asset. So if they don't pay me back, I get the asset.

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And then I can sell the asset and pay back, right? That's how I do it. That being said, like at this

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current moment, this current juncture and time, I have zero debt, not even a mortgage. And you

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would be like, Alex, you're crazy, probably, probably. But for me, I sleep really well at night

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knowing that I just don't own anything. And for me, the objective of money was freedom, not more

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money, just a side note. Now, I do subscribe to something that Dave Ramsey said that really resonates

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with me. He said, I'm paraphrasing, that debt is a version of risk. And risk, if extended over

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a long enough time horizon, exposes you to zero, meaning you could lose it all. And since life is

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long, that means that there is a high possibility between now and the time you die that you do have

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one of these situations where you could get exposed to zero. And for me, I would rather not sacrifice

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what I do have than I do want and need for more of something that I don't want or necessarily don't

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need. Because me doubling my money makes no difference in my life, but me losing all my money makes

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a very big difference. And so for me, why risk something that I don't want to lose for something

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that I don't need? Right? And so for that reason, I have been not a big leverage proponent in general.

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I am very, very underlevered in general. All right? And so I have run my life that way and I focused

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my life on increasing the value of the assets that I have. I'm just continuing to do that rather

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than juice everything through debt. And that's just not my game personally. And we still built a

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non-figure net worth without any of that. And so I think you can do it. And maybe I'm silly,

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which is very possible. And maybe when I'm 60, I'll think that I was an absolute idiot for thinking

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that way. It's very possible. Because you know what? We learn things and we grow. But as current

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states in 2022, I don't think that. So anyways, keep being awesome. Keep crushing,

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bozination. I hope they give you some illumination to like, how do you do margin loans?

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My recommendation to you as a final parting words and disclaimer around this is that if you

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were going to partake in this in this risk, okay? Because it is risk. Barrow significantly less

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than the limit. All right? So if you want to use the your you know, bar on margin,

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around 10%, bar 20% tops, keep it way underneath so that there's literally no way that a margin

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call would come up. We'd actually have to sell some of your stuff. Because the thing is is the moment

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when they get you to sell it is the moment when it's worth the least. All right? So you get double

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host. All right? So you lose the power of the money that you had and then you have to sell stuff

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at a massive loss. All right? So that's when you want to be buying and instead you're selling.

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And that's what crashes markets. A lot of people borrow that way. And that's when they ride the

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bull and bear cycles. And we want to be a little smarter and try not to do what everyone else is doing

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so that we can have what no one else has. All right? So mozination, keep being awesome. I make

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these because I enjoy it. Apparently. And I do this because you know, maybe some of you guys will

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crush it and cross three million or 10 million and and want to work with this at acquisition.com

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so we can get you to 50 and beyond. So keeping awesome. Love you all. See you next vid. Bye.