I have heard of this phrased such as "OPM" -- basically, "other people's money."
It's something said that, if you don't have the funds necessary to invest, use someone else's money.
What does this really mean though, and how does it differ from a loan or credit of some sort?
I have heard this used in real-estate infomercials, blogs/speech, business workshops, etc. I have never really understood what this means exactly, and how it would work.
I know this is not the same as short-calling, i.e., investing with "leverage" or other such means.
Leveraged investing is for a whole different question than using other people's money for investment-specific or even non-investing purposes. Does "OPM" imply a loan of some sort, and what is expected to be accomplished here? I'd imagine that, if investing with "OBM" is the same as a loan, then it would incur debt and be a new obstacle for a person. How would it be of any advantage then?
The only reason I can see where this would make sense is if the person using "OPM" to invest was intending on making big returns quickly. If the returns were slow, wouldn't they invest their own money then? It only sounds like it makes sense when one anticipates bigger returns from bigger investments.
So, to put it shortly, what are the advantages and purposes of investing using "OPM" over ... not?