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 why Millionaires borrow against their own Assets.

Name: This is why Millionaires borrow against their own Assets.
Uploaded: 2026-06-22T00:17:43+00:00
Duration: 28 s
Channel: Hannah Hammond
Description: Hannah Hammond explains how wealthy people borrow against appreciating assets like real estate instead of selling them. They avoid capital gains tax, use…

22 Jun 2026 · 0 min

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Hannah Hammond explains how wealthy people borrow against appreciating assets like real estate instead of selling them. They avoid capital gains tax, use the borrowed money as tax-free income, and let tenant rent payments cover the loan. This strategy lets them extract profit without triggering taxes.

You buy assets and you never sell them. You just borrow against them. So let's say you own a million-dollar piece of real estate. If you were to sell that real estate and you had a capital gain, a profit on that asset, then you would have to pay taxes on that gain. But instead, if you keep it and you just borrow against it and pull the equity out, pull the profit out, then you don't pay any taxes on that. And your tenant pays that loan back and you get to go spend that money tax-free as income. So this is how the rich get wealthy and actually keep their money.