Dr. Toby PotterCEO and Founder, The Unshakable Investor · Real Estate Investor Success Coach

How Millionaires Buy Real Estate

Name: How Millionaires Buy Real Estate
Uploaded: 2025-04-07T21:49:29+00:00
Duration: 54 s
Channel: Dr. Toby Potter
Description: In this short instructional dialogue, a prospective real‑estate buyer (Speaker A) negotiates a loan with a lender/coach (Speaker B) to acquire a rental…

7 Apr 2025 · 1 min

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0:54

In this short instructional dialogue, a prospective real‑estate buyer (Speaker A) negotiates a loan with a lender/coach (Speaker B) to acquire a rental property. The conversation highlights key tactics used by wealthy investors: securing high loan‑to‑value financing (80‑90% LTV), providing a modest down payment, leveraging the mortgage interest tax deduction, and using the remaining cash to purchase additional rental units. Speaker B repeatedly stresses the principle of using other people’s money (OPM) instead of cash, arguing that debt maximizes leverage, tax write‑offs, and cash‑on‑hand, while cash purchases are portrayed as a sub‑optimal strategy. The tone is instructional and persuasive, aimed at teaching clients how to structure financing to grow a rental portfolio efficiently.

Chapters

Hey, I wanna buy that rental property. Could you gimme a loan for it? Sure, I can offer you a loan for 80% of its value, but that means I'm gonna need 20% as a down payment. Hmm, sounds fair, but how about you gimme a loan for 90% of its value and I'll give you twice as much business? Wouldn't you want to have more equity and less debt? Aren't you rich? Yeah, but with a bigger loan, I get a bigger tax deduction from the mortgage interest. Plus I get to use the other 10% to buy a second rental property. So by using our money, you get a tax deduction and make more income from a second rental property? That's smart. No wonder you're wealthy.
Very good strategy. We teach this all the time. We have so many clients that come to us and say, oh, I only pay cash for my property. That's the stupidest thing you could do. You should never use your money to buy property. Use other people's money. OPM, other people's money. Cash is what you need in the account. Utilize banks, utilize debt, maximize tax write-offs, maximize leverage, and keep your money in your account.