So a home loan is a no go, because the money is consumed and it doesn't generate a cash flow. A business loan where you expect to receive equity/cash flow is OK. I listened to saifadeans take and was having trouble understanding his point, but this makes a bit of sense.
Discussion
Exactly, when I invest in you, I may require equity in your business, but that's basically me buying my share of your success, or your failure. Risk is factured in, and if you generate cash flow, I take a percentage of it. But you're not in debt to me.
And curiously, when you take a loan to buy a house. The house doesn't really appreciate in value. The house's dollar value rises as much as the dollar itself depreciates through inflation. Houses don't generate value.
That's why I laugh at boomers who think themselves major investors for owning homes valued at millions of dollars today, but having bought them for a couple of $1000s in the 1960s.
It doesn't add value, but to be fair, it was a good tool to save their purchasing power.