Hannah HammondFounder & CEO, HB Capital & The Firm RE · CEO of HB Capital | Helping CRE Developers & Investors Fund Deals Nationwide | Host of The Hannah Hammond Show

Rich people use debt to become more wealthy.

Name: Rich people use debt to become more wealthy.
Uploaded: 2026-06-07T00:50:55+00:00
Duration: 36 s
Channel: Hannah Hammond
Description: In this brief video, Hannah Hammond argues that wealthy individuals do not shun debt; instead, they treat it as a strategic tool for building wealth. She…

7 Jun 2026 · 1 min

Watch on YouTube

0:36

In this brief video, Hannah Hammond argues that wealthy individuals do not shun debt; instead, they treat it as a strategic tool for building wealth. She explains that when debt is used responsibly, it can amplify returns, especially in real estate. Using a $1,000,000 property as an example, she shows that an investor can purchase the asset with a $200,000 down payment, leveraging the remaining $800,000 through debt while still capturing appreciation and profit. For those lacking the down‑payment, she suggests negotiating seller financing or raising capital from other investors as alternative ways to secure the required cash.

Chapters

Rich people don't avoid debt. They use it as a weapon, and it is a loaded gun, and used irresponsibly, it can kill you. However, when used responsibly, this is how you become truly wealthy. For example, in real estate, you can go buy a million-dollar building using debt, so you don't actually have to go pay a million dollars of cash for that building. You could put down $200,000 of cash for that building instead, but you still get the appreciation and the profit off of that million-dollar value. If you don't have $200,000, you could even try to negotiate for the seller to be the bank and carry that $200,000, or you can raise the $200,000 from someone else.