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Old 01-08-2009, 10:34 AM   #15
Slava
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Join Date: Dec 2006
Location: Calgary, Alberta
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Quote:
Originally Posted by edn88 View Post
What I don't get is, if you are going to borrow money for an investment and you can afford to pay off your mortgage, why not buy their home for cash in the first place, then use your home for the collateral for the investment loan?
You can do that. Its referenced in the decision as the Singleton decision (aka the "Singleton Shuffle"). The difference is that these people borrowed the money against the house and invested it into a business that they also owned.
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