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Get A $100K Loan And Pay Only 2.25% Interest First 2 Years To #YOLO Into TSLA Stock

Xepa777

Member
Aug 1, 2017
232
1,190
California
Don't have enough money to buy the TSLA $575 dip?

Well say no more LOL.

Me and my friends have been taking advantage of a $100k line of credit from First Republic Bank. You only have to pay interest payments the first two years. And at 2.25% interest, it's basically lower than inflation. Free money basically.

If you DM me I can connect you with the loan officer directly and bypass the internet application.

Does anyone else know any other sources of cheap debt? Because when I heard about this it blew my friggen mind LOL. Also, I got Schwab to lower my margin rate to 2.95% for a year, so that was pretty sweet. I'm becoming a total degenerate over here.
 

PKEllefsen

Member
Apr 28, 2021
8
6
Norway
Damn, 2,25% percentage huh. Tried to find some good sources for borrowing money in Norway and couldn't find a place that would give me better interest than 8% (Already maxed out my limit on my mortgage).
 

Xepa777

Member
Aug 1, 2017
232
1,190
California
Damn, 2,25% percentage huh. Tried to find some good sources for borrowing money in Norway and couldn't find a place that would give me better interest than 8% (Already maxed out my limit on my mortgage).

Yah it's a great deal. Honestly (click baity title aside), this allows me to not have to sell any shares to pay taxes from all the gains last year. Can easily see it help others with mortgage payments. I thought it was too good to be true until my friend got a loan for himself.

This thread was partially inspired by another one somewhere in TMC around people getting really low interest rate loans secured against their Tesla shares? And IMO this is a better deal because I don't have to give them ANY collateral at all.

Sad about the downvotes lol. Yes obvious shilling but it's nice that you can bypass the online screen by being directly connected with someone and getting a $300 bonus when your loan gets approved. IDK, should I omit that detail and the money you'd get by getting one via referral?
 

jeewee3000

Active Member
Sep 1, 2015
1,167
6,348
Belgium
Sad about the downvotes lol.
That's just because your plan carries a great amount of risk. If the market crashes in 2021/2022 and only recovers fully by 2024 you will have to sell your TSLA stock at a loss to pay off the loan and you'll still be in the hole.

So the end result could easily be: no TSLA stock, huge debt.

The downvotes are trying to protect you from yourself, lol. They share my viewpoint: don't invest money you can't afford to lose.

Either way: good luck. But I wouldn't try it even with a loan at 1%. Family to feed and all that, you know?
 

Xepa777

Member
Aug 1, 2017
232
1,190
California
That's just because your plan carries a great amount of risk. If the market crashes in 2021/2022 and only recovers fully by 2024 you will have to sell your TSLA stock at a loss to pay off the loan and you'll still be in the hole.

So the end result could easily be: no TSLA stock, huge debt.

The downvotes are trying to protect you from yourself, lol. They share my viewpoint: don't invest money you can't afford to lose.

Either way: good luck. But I wouldn't try it even with a loan at 1%. Family to feed and all that, you know?

In mid-2023 Berlin and Austin will be up and the Cybertruck will be the biggest wave of PR / free marketing in car history lol. You think Tesla's not going to be at least $1000 by then? And Tesla's internal target for 2022 is 200gwh vs. 100 public forecast. And that's two full years for FSD to do something. Too many tailwinds.

Maybe I shoulda brought this to the megabulls thread. IDK this is free money to me!!! LOL

Legal disclaimer: I am purely using this money to cover my $80k tax bill so I can use my margin-secured 2023 put sales to fund 2023 leaps like a total degenerate.
 

jeewee3000

Active Member
Sep 1, 2015
1,167
6,348
Belgium
In mid-2023 Berlin and Austin will be up and the Cybertruck will be the biggest wave of PR / free marketing in car history lol. You think Tesla's not going to be at least $1000 by then? And Tesla's internal target for 2022 is 200gwh vs. 100 public forecast. And that's two full years for FSD to do something. Too many tailwinds.

Maybe I shoulda brought this to the megabulls thread. IDK this is free money to me!!! LOL

Legal disclaimer: I am purely using this money to cover my $80k tax bill so I can use my margin-secured 2023 put sales to fund 2023 leaps like a total degenerate.
Of course I think TSLA will be >$1000 by then, but I can't say more than that outcome to be highly likely.

Am I sure of it? No. I can envision other scenarios. If such a scenario would occur, I wouldn't want to be in the position you're putting yourself in.

I'm not attacking you by any means. You do you. I do me. I'm just saying your bet is too risky for my taste.
 

Xepa777

Member
Aug 1, 2017
232
1,190
California
Totally understand, $100k is only like 3% of my portfolio so I can take the hit. I'm not a total degen like Michael Burry having 40% of his portfolio on Tesla puts over here lol.
 
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PKEllefsen

Member
Apr 28, 2021
8
6
Norway
That's just because your plan carries a great amount of risk. If the market crashes in 2021/2022 and only recovers fully by 2024 you will have to sell your TSLA stock at a loss to pay off the loan and you'll still be in the hole.

So the end result could easily be: no TSLA stock, huge debt.

The downvotes are trying to protect you from yourself, lol. They share my viewpoint: don't invest money you can't afford to lose.

Either way: good luck. But I wouldn't try it even with a loan at 1%. Family to feed and all that, you know?

If this is a loan without collateral then Tesla's short term volatility wouldn't really matter. The only thing you would need would be a stable income and stable expenses so you know you can cover the monthly payments. Higher risk, but not high risk, depending on the individuals situation of course. Personally i would consider anything below 3-4% a bargain - especially now with the price dropping below 600$.
 

CybertruckDuck

New Member
Jul 13, 2020
4
8
TN
Don't have enough money to buy the TSLA $575 dip?

Well say no more LOL.

Me and my friends have been taking advantage of a $100k line of credit from First Republic Bank. You only have to pay interest payments the first two years. And at 2.25% interest, it's basically lower than inflation. Free money basically.

If you DM me I can connect you with the loan officer directly and bypass the internet application.

Does anyone else know any other sources of cheap debt? Because when I heard about this it blew my friggen mind LOL. Also, I got Schwab to lower my margin rate to 2.95% for a year, so that was pretty sweet. I'm becoming a total degenerate over here.

Hi Xepa777, I don't have a lot of posts here so I don't think I can DM yet. If you can DM me I'd be interested in the info. :)
 

Xepa777

Member
Aug 1, 2017
232
1,190
California
If this is a loan without collateral then Tesla's short term volatility wouldn't really matter. The only thing you would need would be a stable income and stable expenses so you know you can cover the monthly payments. Higher risk, but not high risk, depending on the individuals situation of course. Personally i would consider anything below 3-4% a bargain - especially now with the price dropping below 600$.

Exactly, no collateral lol.

And okay this may be degenerate, but since Schwab lowered my margin rate to 2.95% I took $50k out of there for a private investment hahaha. You bet I'm gonna take advantage of low interest rate money in a high inflation environment, this accelerates my wealth accumulation by potentially a decade+.
 
Sep 4, 2018
1,047
12,962
This is a REALLY BAD IDEA.
I used to think I was good at investing too and Im a dude who has made million from tsla stock (on paper...not sold yet)... and I used to think I could leverage my l33t skillz to day-trade tesla on margin and make even more.
I think my peak was over 100 consecutive profitable day trades on margin with tesla. Woohoo. I was unstoppable.
Then the stock dived BADLY and one day, after shovelling more and more cash to maintain my leveraged position, I made myself stop out of sanity... and I lost about $65,000 in ten minutes.
That was NOT fun.
I have not traded tesla since then, except to buy outright shares with spare cash i KNOW I don't need for a decade.

It cost me $65k to learn this lesson, but its yours for free. Do NOT do this.

I also used to think the stock could never drop, and yet...it happened, badly. Its since recovered, but it took way too long...

Imagine these scenarios:
1) Some psychopath kills elon musk.
2) The tesla network gets hacked, and 1,000 teslas on autopilot kill their drivers in a single day
3) An amazing nobel-prize worthy breakthrough is made on battery tech by some rival company.
4) Earthquake literally reduces Fremont to rubble.

None of these are likely. All are possible. All would destroy the stock price for long enough to ruin your finances. Dont trade a stock like tesla with money you cant afford to lose, and do NOT borrow money to buy stocks. Never.
 
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PKEllefsen

Member
Apr 28, 2021
8
6
Norway
This is a REALLY BAD IDEA.
I used to think I was good at investing too and Im a dude who has made million from tsla stock (on paper...not sold yet)... and I used to think I could leverage my l33t skillz to day-trade tesla on margin and make even more.
I think my peak was over 100 consecutive profitable day trades on margin with tesla. Woohoo. I was unstoppable.
Then the stock dived BADLY and one day, after shovelling more and more cash to maintain my leveraged position, I made myself stop out of sanity... and I lost about $65,000 in ten minutes.
That was NOT fun.
I have not traded tesla since then, except to buy outright shares with spare cash i KNOW I don't need for a decade.

It cost me $65k to learn this lesson, but its yours for free. Do NOT do this.

I also used to think the stock could never drop, and yet...it happened, badly. Its since recovered, but it took way too long...

Imagine these scenarios:
1) Some psychopath kills elon musk.
2) The tesla network gets hacked, and 1,000 teslas on autopilot kill their drivers in a single day
3) An amazing nobel-prize worthy breakthrough is made on battery tech by some rival company.
4) Earthquake literally reduces Fremont to rubble.

None of these are likely. All are possible. All would destroy the stock price for long enough to ruin your finances. Dont trade a stock like tesla with money you cant afford to lose, and do NOT borrow money to buy stocks. Never.

This is not trading, it's still investing. The entire point of this compared to regular margin is that it doesn't matter if the stock price falls in the short term. Even if a black swan event occurred which made Tesla stock price stay relatively flat the next 3-5 years (which is very hard to imagine) you would only have lost money on the interest you have payed down. This would be largely dependent on your own conviction of the company succeeding of course. Personally I'd say the the chance of Tesla stock covering the interest (from a stock price <600$) is >90% for the 3-5 years ahead, with a >60% chance of it providing solid returns and a <10% chance of it not covering the interest. The risk reward ratio should be exceptionally high if you took a loan that you knew you could handle to pay down on a monthly basis.

Of course everyone has to be aware of their own economy to know if they can handle the loan or not, but besides from that I'm not sure why people are so negative to this in general. The arguments right now are about as worrisome as "Tesla's not profitable".


On a side note - When buying with margin you should account for the price dropping by a huge amount from ATH. Probably somewhere around 50-75% based on your risk tolerance. You really shouldn't be in a position where you have to keep adding to your position to cover the margin (unless you're playing with fire and have only accounted for a small drop, or have been extremely unlucky with your timing and the stock price fell by 50-75% after you bought in).
 

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