How to calculate your debt to asset ratio (+ check if it’s good)

How to calculate your debt to asset ratio (+ check if it’s good)

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How to calculate your debt to asset ratio (+ check if it’s good)
Here’s what debt to asset ratio means: When you’re a business (i.e. you have your own business or side hustle), your debt to asset ratio represents the total amount of debt you owe compared to your total amount of assets. This determines how much lenders will be willing to give you AND helps you be aware of how much you owe to creditors. If you’re an individual, the debt to asset ratio won’t be as relevant to you…but your debt to INCOME ratio will be. That’s the number representing the total amount of debt you owe compared to your income. Mortgage lenders, bank loans, and anyone giving you credit will take a look at your debt to asset/income ratio in order to determine how much they’re willing to lend to you. Your debt to asset ratio (or debt to income ratio) could mean the difference between securing a loan for your business or home, and not getting a single dime from a lender. To help you get a better understanding of it, let’s break down what debt to asset ratio might look like in real life. Explain Like I’m 5: Debt to asset ratio Let’s say an unemployed acquaintance of yours, [...]
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Graham Duncan — Talent Is The Best Asset Class (#362)

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Graham Duncan — Talent Is The Best Asset Class (#362)
Photo by Heidi Gutman/CNBC “Everyone’s genius is right next to their dysfunction.” — Graham Duncan Graham Duncan (@GrahamDuncanNYC) is the co-founder of East Rock Capital, a multi- [...]
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How to get out of debt fast (…even if you’re dead broke)

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How to get out of debt fast (…even if you’re dead broke)
Getting out of debt isn’t easy — but it is possible, even if you have no money, no assets, and no idea how to start. Check out these tweets from people who followed my advice and got rid of th [...]
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Chasing The Deal For A Buyer—Determining When It’s Worth Your While

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Chasing The Deal For A Buyer—Determining When It’s Worth Your While
How far should you chase a deal for a buyer? Join Mark and this week’s cast of geeks as they help to determine if your time is worth the buyers demands. This week’s cast includes: Aaron W [...]
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Do You Have What It Takes To Be A Good Leader?

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Do You Have What It Takes To Be A Good Leader?
In today’s episode of The Art of Passive Income, Mark and Scott talk with Andy Storch—a performance coach, a sales leader, and international speaker who has worked with big companies such as Sale [...]
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159 It’s All About Mind Over Matter in 2019 with Rod Khleif

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159 It’s All About Mind Over Matter in 2019 with Rod Khleif
It's All About Mind Over Matter in 2019 with Rod Khleif   Rod Khlief is a man that needs little to no introduction, he is the host of the #1 Real Estate Podcast “Lifetime Cashflow Through Real Esta [...]
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Is There Ever A Good Reason To Stop Mailing?

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Is There Ever A Good Reason To Stop Mailing?
In today’s episode of The Art of Passive Income—Round Table edition, Mark is joined by: Tate Litchfield Aaron Williams Erik Peterson Mike Zaino Scott Todd Mailing is one of the most important p [...]
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Is Real Estate A Good Investment?

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Is Real Estate A Good Investment?
Real estate has proven over time to be a great inflation hedge. Investopedia says, “An inflation hedge is an investment that is considered to provide protection against the decreased purchasing powe [...]
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148 Crushing Debt

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148 Crushing Debt
Crushing Debt On today’s episode, Attorney Shawn Yesner and I talk about strategies for crushing debt. We also discuss “subject to” deals and other legal topics that real estate investors should [...]
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