Wealthy people know how to use debt to build wealth. Because debt
is one of the most powerful wealth-building strategies known to man. Let's find out how.
In this video, I'm going to walk you through the four ways you can leverage debt to build wealth.
A lot of people say the rich get richer and the poor get poorer. Most people say that because they
don't know why the rich get richer and one of the reasons the rich get richer is because they
understand the power of leveraging. Specifically, the power of leveraging debt. So, we're going to
figure out how exactly to leverage debt so you can start cashing in on this powerful powerful entity
and leverage debt to build your personal wealth. Let's get it. First of all, you have to understand
when people say the rich get richer and the poor get poor most people say that out of bitterness
because they don't understand how to truly build wealth. The reason the rich get richer is because
money has a set of rules. In fact, money is attracted to specific mindsets actions and
strategies and the reason the rich get richer is they understand those mindset actions and
strategies and leverage them to their benefit. But one of the things I want to encourage you about.
I want to encourage you to speak very well of wealthy people if you ever want to be one. Let's
not take the idea that the wealthy people are the problem because they're not. They just understand
some strategies how to add value to people and that, of course, returns wealth. If you want to be a
wealthy person let's start seeing them as somebody to learn from not somebody who is quote-unquote
the problem. The wealthy people I know are the biggest givers in the world. They give more than
you can imagine to help people. Because you don't really get there without caring about people to
some level. Because you have to add enough value to people in order to build that kind of wealth. The
very first way to build wealth using debt is in the power of real estate. I am a huge real estate
lover and owner. If you've been on my channel or followed me for any amount of time our company
is called power-up real estate. We have the mission of helping 10,000 people build financial freedom
by buying multi-family real estate because it's such a powerful way to create cash flow and create
wealth. Every deal we do we leverage the power of debt. So, think about this when we go into a
deal. Let's say I'm going to buy a million-dollar property. That means, I need to go raise about
$300,000. So, I go get $300,000 from investors and the other 700 I go get from a bank or debt. I leverage
debt in order to get that deal and the power of debt especially right now is I can get interest
rates at three and four percent that I couldn't get anywhere else. So I can get very cheap debt
and guess what? It's gonna cost me four percent but it's gonna make me six or seven. So by leveraging
debt I'm gonna make more money. That's one of the strategies that people use to build wealth is by
leveraging cheaper money than that money will pay them once they deploy it into their investment and
that's one of the powers of debt. We use debt on every single property and I would encourage you to
as well. Now, one of the things a lot of people ask me especially in the debt category is,
"Yeah, but Mike, I don't have the power to get a loan. I don't have very good loan power", well make
sure you watch our video how to get a million dollar loan so that you can understand what do
you do if you can't get a loan? What do you do if you can't leverage this powerful asset of debt?
I don't care what your credit score is or your income is, there is a way to get a loan. You just
have to know how to strategize to get it. Once again, a strategy wealthy people know and it's
time you know that as well. Make sure you watch our video how to get a million-dollar loan and
it walks through some ways to knock down that loan. What you're gonna do and then what to do if
you can't get the loan. Make sure you do that. But real estate is a huge benefit to leveraging debt
to build wealth. You know, let me mention a couple different people just to give you the example of
the power of debt. You got a guy like Dave Ramsey who's an anti-debt guy you know he's a no debt
no debt, no debt. Now, you have to understand his clientele he's mainly going towards people where
debt would create a lot of payments and they're not using that debt to create revenue and so he's
not saying necessarily a hundred percent of debt is bad although he definitely comes off that way.
But he is saying that you don't want consumer debt and he's 100% right about that. Now, where him and
I disagree is he will also say you know save up and pay cash for a house. That takes way too long
in my opinion and sometimes he will lend himself to saying, "You know what, if you need to get a loan
on a house that's fine but you want to get that paid off as soon as possible", and I differ a little
bit on that philosophy. So, you got a guy like Dave Ramsey no debt he's worth in the 50 to 80 million
range. Now, that's a lot of money but here's what I want you to see, then you got a guy like Robert
Kiyosaki who has 700 million dollars in debt and he's worth about a half a billion dollars. So, you
have two different people one leverages that and one doesn't. Leveraging debt will build way more
wealth especially when you're leveraging it for real estate. Now, I want to make sure I back up
and qualify debt. Leveraging debt for wealth means you're only leveraging debt for things that make
cash. Let me back up and say this, I want to make sure we qualify debt and you probably know this
but there's two different kinds of debt there's consumer debt and smart debt or investment debt
and so what I want you to see is debt to just buy things is not what we're talking about. We're
talking about only debt which you deploy those funds to make you more money than the debt costs
you. It costs you four percent you're gonna make eight percent. Great, you're gonna make four percent
on that debt. The idea is that you're borrowing at a certain interest rate and you're going to make
more on that money by deploying it in some level of investment. The second way to leverage debt
for growth and wealth is by leveraging debt for businesses. In fact, there's things called SBA or
the small business administration where the government will actually loan out to
small businesses at a very low down. Sometimes you can get into these business loans for 10%
down get a million bucks for only 100 grand. You get a SBA loan and banks will help you navigate
this. You go to a bank for an SBA loan. They'll help you get an SBA loan. They'll vet the business see
if the business is making money and you can buy a business in order to build wealth. But you can
leverage debt to do that and so here's the power. Again, what am I talking about? Talking about debt
for investment not just debt for debt sake and a business is another great investment. In fact,
a business if it's the right kind of business will often make you more cash flow than real
estate. Now, it often won't appreciate as steadily and it's a lot more operational heavy. Meaning,
takes a lot more operations to run a business than it does real estate. So, again, real estate
is still my favorite investment but for cash flow businesses are awesome and so another way you can
leverage debt is by taking out loans to buy businesses or to start businesses. Before I go on
to the last two tips make sure you do us a favor and smash that thumbs up button and subscribe to
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We love to see our family grow and also let other people know about this video. We would
love to continue to help people leverage that to build wealth. Let's get back to the last two tips.
The third one is to leverage debt for freedom of capital and what this means is you can actually
borrow money to invest in certain things not just real estate or businesses. For example, you can take
on debt to free up capital like this, let's say you have a home and it's called a home equity
line of credit or HELOC... home equity line of credit. You can borrow money against your home
and you can leverage that debt and put it into something that makes more money. For example, let's
say you can take a HELOC out of your home at three and a half percent but you're gonna invest in real
estate and make seven. You're gonna double you're gonna make three and a half percent just by your
equity. If you have equity in your home right now taking that equity out and deploying that into an
investment is one of the most powerful things you can do. Because that equity is just going to waste
right now you're not using it for anything it's not giving you anything. But if you were to take
a loan against that place that into an investment that was making you money, you could leverage your
equity in order to invest in things that make money. That's called debt for freedom of capital.
It frees up capital so you can invest in things that make more money than the interest rate of the loan
on your HELOC or whatever you're loaning against and the fourth and one of my very favorite is
debt for education. Yes, a lot of people take on student debt in order to get formal education
and if you're in an industry where you need formal education a doctor, a lawyer, an engineer,
those types of things I'm absolutely pro-education. I'm not pro-college for college sake. If you're
just going to find yourself or figure out wait until you've done a little bit of that work so
you make sure you're not just churning and burning dollars. But education is a powerful
investment but I'm not just talking about formal education. I'm also talking about self-education.
The things that have changed my life more than anything are the people I've hung out in the books
I've read and the things I've learned. Well, that's all self-education and you should be investing
and take if you have to take on debt do it. But investing in coaches, mastermind,s online trainings,
live events, groups that you can invest your way into. I'll tell you this, a lot of times the gurus
that can really help you you got to invest to get to them but it's the best investment you can make.
I've invested hundreds and hundreds nearly a half a million dollars in coaches and masterminds and
trainings. Why? Because it's changed my life. In 2014 when I went to my first real estate seminar.
I remember I went up to my coach and I'm like, "Man, I wouldn't really want to buy this house",
we were going on a tour to learn my wife and I both how to buy houses off tax auction. How
to go to tax auction and buy houses on back taxes. Well my mentor knew this really well so he taught
us how to do this. So I paid my wife and I paid nine thousand dollars to go on this two-day tour.
Now that is a lot that was a ton of money for us we had to put it on a credit card. We couldn't
afford it. But by going there, I went I wanted to buy this house but I didn't have the capital and
my mentor's like, "Why don't you raise private money?", and I'm like, "That is a great idea, what's private
money?". I had no idea and then he began to explain to me what private money was. There are actually people
out there that'll lend you money and I'm like, "Are you kidding me?", well, now, because of his coaching
last year alone we raised 10 million dollars in less than a few months. Because the truth is
private money is powerful but I invested 9,000 it's made me hundreds millions of dollars back.
That's the power of investing in yourself investing in education. So, investing and taking out
debt for education is another powerful investment to make sure you're leveraging this power of debt
in order to build a real financial future. I also want to give you a free gift today. I want to give
you our free multi-family master class which goes through how to leverage debt for the power of one
of the most powerful real estate assets in the world which is multi-family apartment buildings.
I have a free 60-minute training. I want to give it to you today go to freemultifamilymasterclass.com.
We have the link in the description click on that get a free 60-minute training and at the
end of that training you can even book a call with our team and talk about your goals and
your strategies for this upcoming year. Make sure you do that, I cannot wait. i cannot wait
to talk with you and I cannot wait to see how you're leveraging that to build your future.