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

This is how the rich invest to become wealthy 🔥

Name: This is how the rich invest to become wealthy 🔥
Uploaded: 2026-04-20T18:14:42+00:00
Duration: 34 s
Channel: Hannah Hammond
Description: In this brief monologue, Hannah Hammond explains how wealthy investors use financial leverage and other people's money (OPM) to magnify returns in real…

20 Apr 2026 · 1 min

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In this brief monologue, Hannah Hammond explains how wealthy investors use financial leverage and other people's money (OPM) to magnify returns in real estate. She illustrates the concept with a $100 million property purchased with $30 million equity and $70 million bank financing. By raising the property's value to $120 million, the investor achieves a 66 % return on the original $30 million cash outlay. The example demonstrates the core strategy wealthy investors employ: using debt and capital raising to earn returns on the full asset value while only committing a fraction of their own capital.

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You can buy a $100 million building with only $30 million of equity, and the bank will finance the other $70 million. And so you get to make returns on the full $100 million, even though you only invested $30 million. And of course, you can raise capital and use OPM to raise this $30 million as well. And then let's say you take that $30 million investment to buy the $100 million building and you increase the value to $120 million. Well, now your return on your cash, on your $30 million investment is 66%. And this is what the rich and the wealthy people do.