Just a quick question.

I'm guessing this is the case, but just to check.

 

Money you borrow from duke doesn't account towards your networth? Seeing as technically it isn't actually yours lol.

Loans and unpaid property upkeep decrease your net worth. :)

Thanks stewie, I thought as much. 

 

Good to know lol, I did think renting PI's and money owed to duke was the problem. 

What he said it's true enough, but curiously the only point in loans that decrease your networth is actually the interest/ fees. Reason being you get cash added into your account. Presumably you'd be able to get a benefit that outweighs the 2.5% fee by  earning money on it or some other benefit that outweighs the cost.

wrong u dumb shit

if you lose the money duke loans you, it is still deducted from your networth

stop trying to be a smartass

Wait so  spending the money drops your net worth too, Even tho it doesn't increase it?

If I was trying to be smart how would you know?[:smiley:]  You clearly missed the point.

Wrong, a crafty player can increase their networth using the loan. But it requires effort and not everyone can, and for those who can there becomes a point that they may decode they're better off not using the loan. Say you borrow 500 million to conduct a few trades that you make a total 50 million on in profit, boom you've used it to gain net worth, 50 million minus the fees and any applicable interest payments. Due to the fees, it's often best for traders to keep a loan as high as they can utilize for trading volume that can cover the interest payments.

Okay so say I buy property does that then account for networth? Or not until duke is paid off?

It would, but I would not advise that sort of transaction since best case is that you have the money less than a week later. The interest in that sort of loan would be toxic to get rid of to keep at an indefinite basis. Renting a property would probably prove cheaper.

Say I decided to give away everything I own, minus the max loan I have. How I would use it is: rent a pi for a prolonged period of time, buy a large suitcase, and fly around grabbing plushies/ flowers at close locations.  I would then use the money to cut down on the loan. Eventually, I would hey to a point that the loan is paid off, but I may struggle with paying for another rental, so I would then take more out, to cover renting again. 

But, if I really was dedicated I would spend a few days trading hard at it to earn enough to get rid of the loan. And the reason I said plushies or flowers is because of the profit %, not the profit margin. Drugs can yield a much higher margin, but flowers and plushies are a much higher profit %.

When you owe money, it can be better to not have as much of a liability. If you get mugged dealing with Xanax, you may lose money, with flowers or plushies you just won't make as much. Xanax also needs a larger cash wad than plushies/ flowers and so you would need to borrow more. Sure the amount you make can outweigh the risk, if you don't get mugged, but it is just a liability and I rather not have a long flight waste any energy or nerve.

The Duke loan will count as negative networth, and the cash you get is counted as any other cash you might have. So the immediate effect is that you lose a tiny amount of networth equaling the the interest charged for the first week.

To be clear, the property would give you networth, but the reason I would not recommend it is because you are comparing the cost of the loan, vs the cost of renting the property.So if you have to rent a private island, let's say you need 100 million more to outright buy one that is mostly upgraded (no Yatch), a loan of 100 million, is 2.5 million a week. 

That allows us to know that if rent is greater than that per week, you are better off buying the Private Island. It gives us about 360K a day as the price point for you to find a Private island at.  But to compare that against a loan of 200 million, it would be double that, or about 720k a day.

Gauging from your account's net worth, there are numerous other things you would benefit from investing in before buying a private island. Why I say that, is because there are better investments than owning the private island.  It isn't a "bad" investment, it's just there are better investments. 

It does increase it. Taking a loan from Duke provides you with an asset of 1x, while also assigning you a liability of 1.025x. That is a net decrease in networth. If you spend that actual cash on items, your networth will only fluctuate between what you paid, and what the item is worth. If you lose the cash in the casino, all of that money lost would be further deducted from your networth .