There are a number of different options to consider when borrowing to invest.

Traditionally investors had to put up some of their own money in order to get an investment loan.

For example, if they put up $25,000 of their own money, they could borrow $50,000 (2:1 loan), $75,000 (3:1 loan), or even $100,000 (4:1 loan). These options are still available and popular.

Recently a new loan option has been gaining in popularity: 100% loans.

With a 100% loan, the investor puts up none of their own money. Instead, the financial institution lends the investor 100% of the value of the investment.

While 100% loans typically charge a slightly higher interest rate than more traditional options, they have the advantage of allowing investors to rapidly build an investment portfolio even if they have no money of their own to invest.