Quote:
Originally Posted by dcdoug
Maybe after the initial deposit at the credit union just to show that he could come up with the funds, he could withdraw them and use elsewhere? Otherwise, I don't get it.  |
Right, if you were allowed to immediately pull your $100k out the next day and still keep your loan at just over one percent, that would be great... but it doesn't work like that.
The offer I outlined to RodKnock does not make financial sense for him (and he knows that... he's reasonably money savvy). Forgetting the stuff like "building my FICO score," and the like, the only reason Rod would take my offer would be if I gave him permission to treat the indebtedness as "off-the-balance-sheet-financing." He would continue to carry his original $100k on his balance sheet, but now add to it the $100k that I just loaned him, but not carry the $100k debt on his liability side. He has effectively added $100k to his apparent net worth. OTBS financing is, of course, ethically challenged.
