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Isaac Juarez Ask a question. Can I borrow a personal loan to invest money? Yes, consumers can borrow a personal loan and invest the money. Since not everyone has the money needed to contribute to worthwhile investments, such as stocks, it seems reasonable that some prospective investors would turn to borrowing money to fund their investing plans.

But borrowing money to potentially make money is not always a wise decision, especially for the average or novice investor. Experts that spoke with loans. Thus using someone else's money for investments can be profitable and worth the risk associated.

Real Estate One investment is always on the minds of many Americans: But such potential profits also makes room for equally large potential losses. JeFreda Brown, CEO of Brown Accounting Solutions, has a lot of experience working with real estate investors and homebuyers.

She says that investing in real estate should be treated like a business, and that investors should only borrow personal loans to invest in property if they have crafted a business plan. When it comes to flipping, she said that having a solid exit strategy or a plan to rent out the home is absolutely necessary, and it that exit plan should be made before seeking financing.

The Finances of FOREX One increasingly popular investment is the foreign exchange FOREX market, which involves the trading of currencies.

Withey, Managing Director of Forex Training Worldwide, said that very few new investors borrow person loans in order to purchase currencies. This is largely due to the difficulty and risk inherent in FOREX trading. New investors tend to either self-fund or borrow small amounts of money from friends and family.

However, experience builds with time and Withey is comfortable with experienced traders that have profitable track records borrowing personal loans to fund their speculative investing. If my trading can produce X percent per annum and the interest rate and repayments on a loan are less, whatever left over is profit.

In trading, the more money one has to invest the more money one can make whilst risking less. Mike Scanlin, CEO of Born to Sell , told loans. The older ages are generally investing their retirement nest eggs and are risk-averse.

Most experienced stock investors are comfortable borrowing money. Scanlin says they know what they are doing and are able to take on the risk of investing borrowed money.

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Most of them actually go on to make money using completely borrowed funds. If everyone were experienced stock investors who could borrow money and expect a profitable return, then no one would ever need to work since everyone would be wealthy.

Even new investors in real estate — the rollercoaster of investments — are cautioned by Brown not to borrow money initially, especially personal loans. She said that new investors are still learning the market and should prioritize planning and working with real estate agents over getting into debt. Her advice extends to other investments. I advise them to be aware of what's going on around them. There are so many investing scams that happen each year.

I wouldn't want anyone to go and take out a loan to invest into something they don't know anything about. And when astute investors are faced with an investment opportunity that must be moved upon quickly, Brown said that sometimes borrowing a personal loan is faster than liquidating other assets to free up cash.

Scanlin frowns on any student loan borrowers thinking of obtaining personal loans in order to enter into investment markets.

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They should be paying off their student loan debt rather than borrowing to invest. He certainly is correct in that paying off one debt is hard enough, nevermind two. While not every investment opportunity remains open for the long term, there will always be future investment opportunities for novice investors seeking to make a profit.

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It is far better to wait and invest hard-earned money rather than to let over-eagerness take hold and poorly invest borrowed money. Even though fortune may favor the bold, when it comes to investing with personal loans, indebtedness favors the risky. Mortgage Rates Get Mortgage Payment Calculator Widget.

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