How Real Estate Debt Will Make You Rich

Real estate debt, also known as leverage, can be a foreign concept to many financial freedom-chasing investors. For so long, you’ve been told to stay out of debt, keep your cash, and pay off your loans as fast as possible. When you enter into the world of real estate investing, it can seem like you’ve been sent to another reality where debt is your friend. Ashley and Tony both had to learn this early on, and they benefited greatly thanks to their new best friend: good debt!

This week’s question comes from Jessica through Tony’s Instagram direct messages. Jessica has seen what Tony and his wife Sara have been doing while building their short-term rental empire. But, Jessica is having some doubts. She’s asking: How do you invest in real estate when the idea of debt scares you?

What are your thoughts on real estate debt? Would you leverage debt to build wealth? Do you think it makes more sense to take on debt while interest rates rise? Let us know in the comments below.

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Episode #178

Show notes at:


  1. Well said and understandable given what all have been taught growing up. "save your money", "don't take risks", get a good job and then die shortly after retiring, Those that you were working for took risks, they didn't "save" their money. They invested their money as best they could.

  2. Student loan debt just hit $1.5 trillion. Women hold 2/3 almost One Trillion. Modern Strong Independent Women are Smart with THEIR Money but not with Logic or Reason or Science or Technology or Engineering or Maths

  3. I have been trying to make my wife understand "creative debt". She insist we have to do it the "Dave Ramsey" way. We have no debt except our mortgage which we are well on our way to paying off. But she wants to buy properties and pay them off as we go. We'll see how this goes….

  4. Everyone is a real estate investor until they are not. You need to know how to be a property manager, electrician, plumber, hvac repairmen, etc. You need to be able to float your mortgages with no tenants in them. I know so many that got destroyed in 2008 and it haunted them for many years especially come tax time when their short sales were looked at as income.

  5. Fantastic way to put it. It's much easier to get startup funding for real estate than other asset classes. Also, you don't need any education, etc.

  6. I think the ability to leverage debt is a big reason why real estate is so awesome compared to other investing classes. If I wasn’t comfortable being in debt on rental properties I’d probably just have kept playing in stocks. But keeping in mind that even if I get a higher return elsewhere, it will in actuality be no where near the return I get from real estate because that return will only be based on my personal cash instead of the banks cash.

  7. Every financial goal requires patience, dedication and consistent spirit knowing that investment is currently the most lucrative business in the world, both NFT, real estate and Crypto shares are really positively changing people's lives.

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