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

How Millionaires Buy Real Estate Without Using Banks

Name: How Millionaires Buy Real Estate Without Using Banks
Uploaded: 2026-05-09T13:01:09+00:00
Duration: 54 s
Channel: Dr. Toby Potter
Description: In this short dialogue, Speaker A and Speaker B discuss a high‑leverage approach to buying rental properties. They illustrate how an investor can secure…

9 May 2026 · 1 min

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In this short dialogue, Speaker A and Speaker B discuss a high‑leverage approach to buying rental properties. They illustrate how an investor can secure a loan covering 80‑90% of a property's value, keep a small down payment, and use the remaining cash to acquire additional rentals. The conversation emphasizes the tax benefits of mortgage‑interest deductions, the importance of preserving cash liquidity, and the broader philosophy of using other people’s money (OPM) rather than paying cash. Speaker B reinforces that paying cash is sub‑optimal for wealth building, urging investors to maximize leverage, tax write‑offs, and keep cash on hand for further investments.

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.