Remember all those websites and advertisements that urge you to invest in business opportunities by taking out a loan for X interest rate? These investment sites are just about everywhere you look. They all have one thing in common- you can re-use that money and revolve it, then use the profits to pay the loan back, plus the cash you earn.
Now before you dismiss these financial investment sites, take a closer look. These loans can actually be used to fuel your passive income. The idea here is that you can take out investments and put them on investments on a higher interest loan.
The consumer can harness all these loan sites hanging around on the web to create a legitimate method of making money online. It’s a good financial loop if you think about it. The best thing about this type of investment is that you won’t have to do anything but start the engine by taking a loan for your next investment.
It’s simple and it can be summed up in 2 sentences. First, you call up one of these loan sites on the internet and you apply for an investment loan. Once you get the money for that first loan, use that same money and put it back into a different investment site. There’s no complicated rules, no schedule or regimen to follow.
How does this all happen? There’s one key element that you need to understand before starting this passive money making engine. The money you get from the loan should only be used on an investment that yields a higher percentage rate (or interest rate), so you can get back the difference in rate percentages. In short, you get a greater investment return than the initial loan you took out from the first loan investment company.
It all boils down to simple math. The greater the difference in interest rate between the initial loan you took out from the first loan company and the second investment you give it to, the greater the profits you will make at the end of the term. You’ll stand to get more passive income if you have a higher return rate than the interest rate of the first loan you took out.
Here’s an example. You take out a $10,000 loan on one investment site at an interest rate of 10 percent for 2 years. The $10,000 loan goes straight to an investment company that offers a higher interest rate of 15 percent for 2 years. The total payment for the first loan totals out to $12,000. In the investment loan, the total cash out for the investment totals out to $13,000. After the term of 2 years is completed, you will have earned a total passive income of $1,000. This is an extra $1,000 passive that you didn’t have to work for. The good thing here is that the more money you invest in and the higher the difference in percentage, the more passive income you stand to gain. Just keep in mind that the investment you’re putting your loan money to should have a higher interest rate, and you’re golden.