Last week, I did a video talking about how I borrowed $25,000 to invest with and how this was essentially free money. I had a lot of people asking for a more detailed explanation, so here you go! This is how I am using M1 Borrow to essentially earn free money, however there are risks involved.

(FREE TRAINING) M1 Finance For Beginners:
Sign Up For M1 Finance:

$100K Dividend Stock Series:
M1 Borrow Article (My Blog):

FREE Resources From Ryan

Academy (3 Ebooks + 4 Courses)

PREMIUM Courses From Ryan

How I Make $20,000+ A Month From Affiliate Marketing

10+ Hour Stock Market Investing Course

Ready To Invest? 🤔💸

WEBULL: “Get a FREE STOCK just for signing up!”

BETTERMENT: “Passive investing, they manage everything for you.”

FUNDRISE: “Passive real estate investing, 8 to 11% returns.”

M1 FINANCE: “Invest in partial shares of stocks like Amazon.”

COINBASE: “Get $10 in free Bitcoin (when you fund $100).”

MY INVESTING BLOG: “Learn how to invest today.”

Ryan’s Favorite Books 🤔📚

My Favorite Personal Finance Book

My Favorite Investing Book

My 2nd Favorite Investing Book

My Favorite Personal Development Book

Not a fan of reading? Join Audible and get two free audio books!

My Recording Equipment (What I Use On YouTube)

DISCLAIMER: Ryan Scribner, including but not limited to any guests appearing in his videos, are not financial/investment advisors, brokers, or dealers. They are solely sharing their personal experience and opinions; therefore, all strategies, tips, suggestions, and recommendations shared are solely for entertainment purposes. There are financial risks associated with investing, and Ryan Scribner’s results are not typical; therefore, do not act or refrain from acting based on any information conveyed in this video, webpage, and/or external hyperlinks. For investment advice please seek the counsel of a financial/investment advisor(s); and conduct your own due diligence.

AFFILIATE DISCLOSURE: Some of the links on this webpage are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact our opinions and comparisons.




Robert Dunfee


  1. Ryan Scribner
    July 14, 2021 at 1:44 am

    I hope I explained this as simply as possible! Let me know down below if you want to see more videos like this 😀👍

  2. Kayla Veng
    July 14, 2021 at 1:44 am

    But I thought with security base loan your not allow to use the fund to purchase more securities or margin. Maybe m1 financial is different from other brokerage. Thanks for sharing Ryan

  3. Neat Discoveries
    July 14, 2021 at 1:44 am

    Wow horrible advice

  4. Philip M
    July 14, 2021 at 1:44 am

    You forgot that there are tax on dividend.

  5. Isaac Gaskin
    July 14, 2021 at 1:44 am

    How does this work with taxes? Its unclear to me if this would still be profitable after paying back the borrowed money with post-tax dollars.

  6. Hen Hen 601
    July 14, 2021 at 1:44 am

    Wait you pay the interest per year?
    Is this the same if you don’t have m1 plus?

  7. Money Tone
    July 14, 2021 at 1:44 am

    Pure Genuine 🧠

  8. Lewis Moten
    July 14, 2021 at 1:44 am

    Don’t forget to apply the M1 plus annual fee and taxes on dividends to that total earned. You’re coming close to zero/negative profit. Especially if you have unqualified dividends or reits

  9. Tsering Namgyal
    July 14, 2021 at 1:44 am

    I really had concerns about borrowing from your equities, this video was helpful. One question how about when you borrow against your stocks and you sell those stocks for another stocks or keep some profits in cash does m1 finance penalize for selling those stocks that you had borrows from since they use those stocks as collateral?

  10. Braden Souder
    July 14, 2021 at 1:44 am

    Great video and explanation

  11. Vince Lethal
    July 14, 2021 at 1:44 am

    Do not use your loan to buy NKLA stock

  12. Karen Berndt
    July 14, 2021 at 1:44 am

    Ryan I joined M1Finance I think through your site. I wondered if I wanted to invest in a new fund or stock, and deposit $5000.00 to buy it. how does it work.

  13. Asad Mobin
    July 14, 2021 at 1:44 am

    This just seems like a no brainer

  14. E Brown
    July 14, 2021 at 1:44 am

    Thanks for the video. Similarly, I used Borrow to 1) cross that $100k barrier and 2) buy $15k of Apple before the split. So, like you, I'm doomed because this is the internet, and people have trouble distinguishing "possible" from "probable."

  15. Michael Swaim
    July 14, 2021 at 1:44 am

    You must be getting tax free dividends then. Also, ignored the 125 you paid to get the improved rate. What you are essentially describing is trading on margin which is extremely risky. I suspect you might also be subject to a margin call if your securities decline in value. Good luck.

  16. Exia Myers
    July 14, 2021 at 1:44 am

    how long is this loan for a year or 5 ???

  17. Dee Light
    July 14, 2021 at 1:44 am

    That is amazing. Once my investments hit five digits, I am certainly considering coming back to this and consider the potential this gives me.

  18. Sonja Remmen
    July 14, 2021 at 1:44 am

    Love your videos I've learn so much from you. Going to open a M! Finance account. thank you.

  19. Vasile Stana
    July 14, 2021 at 1:44 am

    Let's say you made $800 in profit from dividend. After TAX it's about $400. You pay $500 for the interest plus another $150 for M1 Plus user. End result: You made $400 and lost $650 ($500=$150). End result: You are a LOSER that is not smart enough to realize it.

  20. Claudia Aquino
    July 14, 2021 at 1:44 am

    This is the perfect time to invest …

  21. Metal Bum
    July 14, 2021 at 1:44 am

    Seems like a lot of risk if the value of your $25k went to $15-20k in a crash

  22. Metal Bum
    July 14, 2021 at 1:44 am

    Does this work if market drops and you lose money?