This seems like another passive income scheme. This bank he's investing with seems very fishy if it's allowing people to take out 100k loans and also have negative account balances for extended periods of time. That's a lot of risk that a bank would be willing to take on. And the end where he's talking about taking a cruise is very MLM. The whole thing just doesn't make sense to me. Can anyone explain why this makes sense?
It doesn't make sense to me, too. At least in the long run.
Yet, I can imagine that there might be some short windows of time when that will work ¯\_(ツ)_/¯.
7k per year is not worth the risk
So someone discovered "leverage", and is convinced it's free money, which it basically is until the tables turn very quickly and you lose your shirt, a story which has been repeated ad infinitum for literally thousands of years.
In the end of the day - there is no free money.
The best way to make money will always be producing some positive value to society.