https://www.youtube.com/watch?v=yr1DrcPCKEg

1 00:00:00.000 --\> 00:01:00.000 in this video i'm going to talk to you
about the number one strategy of the ultra wealthy to avoid taxes and
get the lowest interest rate loans humanly possible or even imaginable
or fathomable to humans if you don't know hi my name is oxfosi i own
acquisitions.com it's a portfolio of companies over 100 million dollars
here i have nothing to sell you i make these videos because i'm insane
and i like being in wife beaters in a closet i'm kidding i make these
because a lot of people are broke and i don't want you one of them i too
was broke for a very long period of time and it sucked and so i hope
that we can at least attenuate that situation so that you can then ask
the larger questions of what is even worth it to begin with and you can
come to those conclusions on your own that being said how do i get one
to two percent loans or as they call them margin right loans on margin
uh to buy right or buy more assets or whatever all right so quick
overview of what this topic is you've heard me maybe talk about this in
other videos which is like if you have let's say 100 000 in stocks okay
you have 100 000 in stocks depending on who you work with if you work
with a more established bank and you have a longer relationship with
them let's say you you know bank or you do wealth management with
merrill lynch you will have a banker and they will tell you how to do
this but i'm guessing that

2 00:01:00.000 --\> 00:02:00.000 if you ask the question to your courage
you click on this video you don't have that all right so those banks
will typically give 50 60 sometimes 65 of the total assets in your
portfolio as a asset-backed loan which is a margin based loan right and
so that means that if i had a hundred thousand dollars and i had 65 that
i could take as a loan then i could get an additional 65 000 at one to
two percent which is crazy mind you the interest rates can't change over
time but for the you know for a very long period of time it's been one
to two percent all right which is very very very very low and the nice
thing about this is that there's no closing costs there's no fees
there's no startups there's no nothing you just pay the interest while
you hold the money and all you have to do is pay back and then your
interest payments stop all right so it's nice as a revolving credit line
for stuff that you want to make a quick purchase and then give it back
right that is how it's you do buying on margin alright that's that's
where the term comes from many of you guys have asked how do i actually
do this great question so what we're going to do is we're going to
travel together through the the realms of time and we're going to use
this new mystical mystical thing and i want to i want to teach this
process to you because i think that it's very very valuable it also
serve you for answering any of the questions that you have in your life
google all right so take loans

3 00:02:00.000 --\> 00:03:00.000 against stocks let's see here oh look
it looks like there's a lot of people who are willing to do this for us
let's see if alex did something ahead of time he sure did we clicked
this guy and let's see what it says they explained a little bit more how
useful and if i wanted to borrow on margin apply for margin that's all
you have to do and if you're like well i don't bank with fidelity well
i'll bet you that wherever you bank they do this now let's say uh robin
hood margin margin oops margin loans there we go let's look here what is
margin investing let's click they give us an answer unless it deposits
blah blah blah you can upgrade to robin hood gold that's how we have to
do it and that will allow you to then borrow on margin and so all you
have to do is sign up upgrade to robinhood gold and see what it does all
right and so the reason i do this is because sometimes i get questions
that have answers that are googleable and so please for the love of god
one of the best ways to stay poor is to have a question and then not
google the answer post a comment in something and then say well i guess
i scratched my itch i asked

4 00:03:00.000 --\> 00:04:00.000 the question no find the answer right
and so the reason that this by margin-based loans things like that are
useful is that they are tax-free all right so if you wanted to pay for
stuff and this is what the ultra wealthy do when they go ipo and they've
got a billion dollars worth of stock in something they just take loans
against those stocks they don't have to pay income tax they take loans
against the stock they buy stuff and the amount that the stock goes up
year over year exceeds what they borrow they can borrow more and then
keep doing that until they die and never pay taxes all right that's how
this works now the risks so the risks of doing this are that let's say
for some reason you borrowed at and i think uh there's other ones
there's like m1 finance i think is one that i that i heard of that does
up to 35 and the percentages will vary based on the size of your
portfolio how long you've been doing business blah blah blah right and
so it's usually 30 to 60 ish all right and so let's say that you took
out a 60 you maxed this puppy out right on your hundred thousand dollars
let's say that your portfolio because of a crash in the marketplace
drops to 50 000 so you took 60 right and now your portfolio is worth 50.
well

5 00:04:00.000 --\> 00:05:00.000 to to to be in accordance with the the
risk tolerance that they have you need to be 60 of the new 50 000 value
which means that's 30 000 is what you're allowed to borrow which means
you have to pay back the 30 of the 60 that you borrowed originally and
if you don't have the money they sell your crazy i know it sucks that
being said that is the risk and that is why people lose their asses on
margin now as a quick transition to this the reason um and you might ask
alex do you borrow a margin i have in the past i have also repaid it
back quickly i tend to use margin for very short term type things so
like six months 12 months transaction stuff so like if i do like private
lending for hard money loans things like that 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
money loan i can borrow at one to two and i know i'm gonna get paid back
and the money that i'm lending out i'm securing against another asset so
if they don't pay me back i get the asset and then i can sell the asset
and pay back right that's how i do it that being said i am not a huge
like at this

6 00:05:00.000 --\> 00:06:00.000 current moment this current juncture in
time i have zero debt not even a mortgage and you may be like alex
you're crazy probably probably but for me i sleep really well at night
knowing that i just don't own anyone anything and for me the objective
of money was freedom not more money just a side note now i do subscribe
to something dave ramsey said that really resonates with me he said i'm
paraphrasing that debt is a version of risk and risk if extended over a
long enough time horizon exposes you to zero meaning you could lose it
all and since life is long that means that there is a high possibility
between now and the time you die that you do have one of these
situations where you could get exposed to zero and for me i would rather
not sacrifice what i do have and that i do want and need for more of
something that i don't want or necessarily don't need because me
doubling my money makes no difference in my life but me losing all my
money makes a very big difference and so for me why risk something that
i don't want to lose for something that i don't need and so for that
reason i have been not a big leverage proponent in general i am very
very under levered in general all right and so i have run my life that
way and i've focused my life on increasing the value of the assets that
i have i mean

7 00:06:00.000 --\> 00:07:00.000 just continuing to do that rather than
juice everything through debt and that's just not my game personally and
we still built a nine figure net worth without any of that and so i
think you can do it and maybe i'm selling which is very possible and
maybe when i'm 60 i'll think that i was an absolute idiot for thinking
that way it's very possible because you know what we learn things and we
grow but as current state alex in 2022 uh april i uh i don't think that
so anyways keep being awesome keep crushing mozination i hope they give
you some illumination to like how do you do margin loans um my
recommendation to you as a final parting words and disclaimer around
this is that if you were going to partake in this in this risk okay
because it is risk borrow significantly less than the limit all right so
if you want to use the your you know borrow on margin probably 10 bar 20
tops keep it way underneath so that there's literally no way that a
margin call would come up where you'd actually have to sell some of your
stuff because the thing is is the moment when they get you to sell it is
the moment when it's worth the least all right so you get double hosed
all right so you lose the power of the money that you had and then you
have to sell stuff at a

8 00:07:00.000 --\> 00:08:00.000 massive loss all right so that's when
you want to be buying and instead you're selling and that's what crashes
markets a lot of people borrow that way and that's when they ride the
bull and bear cycles and we want to be a little smarter and try not to
do what everyone else is doing so that we can have what no one else has
all right so mosey nation keep being awesome i make these videos because
i enjoy it apparently and uh i do this because you know maybe some of
you guys will crush it and cross 3 million or 10 million and uh want to
work with us at acquisition.com so we can get you to 50 and beyond so
keeping awesome love you all see you next vid bye
