![]() |
|
| *Home>>>Equity Investment |
Would an "Investment of twenty thousand dollars" be the same as "Increase in Owner's Equity?" |
Would an "Investment of twenty thousand dollars" be the same as "Increase in Owner's Equity?" Not really. Are we talking real estate? If so, then yes, adding $20k to your down payment will have the effect of adding $20k to your equity. If you're referring to real estate, and all $20k goes towards the PRINCIPLE (not interest), then yes - it is an increase in owner's equity - of course, contingent upon your ability to sell the property at or above what you purchased it for. if you sell it for a loss, you could lose all or part of the $20k. For example - you buy a property for $100k. You pay $20k towards the principle... now you owe $80k. You then turn around and sell the place for $50k... In essence, you'd have lost $50k (of which $20k was your initial payment towards the principle). If you sold for $100k... (assuming no closing costs to make things simple), you would just make a wash sale... no profit... no loss... you get your $20k back, in essence. perhaps you can try forex. which is also excellent way for you to invest. |
| Tags |
| Fidelity Investment Fidelity Fund Exchange Traded Funds Equity Investment E-gold Ebullion Easy Money Easy Investing |
| Related information |
No, it isn't. Matter of fact, if the brokerage you bought through knows you took out a loan in order to invest, they can be prosecuted and lose their license. Don't ask me what the mo... Required rate of return=r_f+(R-m-r_f)*b= 6.5+8.4*.95=14.48% ...... wait till you get some time in at this componey befor you invest in it cuse you may not want it as part of your potfolio or you may get downsize,d as i did with avied thermaloy $950 investement goi... You really cannot offer equity in a product. You can sell portions of a license; or create a subsidiary that handles the product and then offer shares in the subsidiary. If you do offer shares,... Legally, if you live in the U.S. more than 183 days during a calendar year, you are considered a U.S. resident for tax purposes. Your employment and citizenship are irrelevant. So the only thing ... Bad idea! ...Yes as long as you understand the risk and the return from the investment is greater than the interest cost of the loan. Because the home equity loan is tax deductible, its cost is less that the st... |
Categories--Copyright/IP Policy--Contact Webmaster |