Originally Posted by Gunfighter

15% is pretty steep ask for a loan collateralized by a portfolio. 4-7% in a margin account would be a much better deal.



Fidelity Margin Rates

Tradestation Margin Rates

Tastyworks Margin Rates







Amen to that! The "not fun" aspect of investing other people's money is what kept me from accepting partners in any of my real estate deals. Explaining my decisions on distributions vs reinvested earnings didn't sound all that appealing.



At some point there may be a place for passive investors in syndications, but that day isn't here yet. If it does happen, there will be very clearly spelled out expectations about management, distributions and capital events. Aw crap, I think I just talked myself out of it again...

Originally Posted by Jiggawatt

This is the problem with historical data. You cherry picked 2009... the very bottom of the market. If you instead started just one year earlier, and bought the S and P at the start of 2008 (it was at 1447), you’d have a much more normal return of about 12% between then and now. Or if you lost your nerve and took your money out in 2012 you would have minimal profit (and you would’ve lost money if you had started in January 2007 or Jan 2008).



It’s historical market timing to compare someone’s performance to the market’s performance during one of the longest bull markets in history.