The Simple 'Borrow til you Die' Tax Strategy

The quickest and easiest way to avoid payroll taxes is through buying investment properties. We call it the "borrow until you die" tax strategy. Virtually anyone with a W2, or steady taxable income, can take advantage of it and it allows you to avoid paying the IRS and build out your real estate portfolio. It personally has saved me millions and allowed me to acquire more properties. Real estate pros use this on EVERY deal, but novices are missing out simply because they don't know about it.

In today's video I take you through the 'borrow until you die' tax strategy and give you an example of how I'm doing it with my most recent project.

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Credit:
Ayush Rai

[Martinezrodi]

For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2023 with $10k and I'm up with $132k in a short period of time

[AGNESCHANG-uh]

I am impressed with your update with these strategies, I am looking for tax efficient way to rebalance my $800k portfolio without triggering capital gain tax. what asset location strategies should i use?

[KarlMiller]

Don't forget the attorneys, property managers, creating & maintaining corporate entities, diligence to make sure all yearly sales tax and meeting notes are filed, banking, accounting, taking tenant phone calls, fixing problems, carrying insurance, ... Not for the lazy.

[BridgetMiller-]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[dq]

What caught my eye was the video title ""Borrow til you Die". For some reason, I thought about what's happening with America and our national debt.

[gingerkilkus]

These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?

[AlecMuller]

Debt is LEVERAGE, and getting caught on the wrong side of a market downturn can easily wipe you out. The quirk of leveraged traditional home mortgages is that borrowers don't get wiped out by 'margin calls' the moment they're under water.

[sarawilliam]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[MickAlister]

FYI as a Financial Planner I thought I would correct this - Capital Gains are not capped at 15-10%. There is the Net Investment Tax. The net investment income tax (NIIT) is a 3.8% tax that kicks in if you have investment income and your income exceeds $200, 000 for single filers, $250, 000 for those married filing jointly or $125, 000 for those married filing separately.

[Timothy]

I've been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?

[markbrzezinski]

This is exactly what "experts" were saying just before the GFC.
The problem is when the asset goes down and the so-called "return" disappears and the call comes from the bank.
The properties are sold and you still owe the difference and you end up on the street, literally. I watched this happen to multiple people.
Go for it. Pay this guy a fee!!!

[drd]

This guy makes used car salesmen look respectable.

[almantasj]

Nobody seems to mention that they need to pay interest on the loan which effectively negates all Tax savings and instead of paying the Tax man, you pay the same or more to the bank.

[lookslikeme]

We pay 20% interest on debt. Then you pay it off with income that's taxed at up to 45%.

[danielayalajr]

Great video, but who really wants to pour so much time and effort into something as two-dimensional as money? There are easier and more effective ways to earn without the headaches and endless commitment. Many people suffer from greed, always chasing more when, in reality, you don’t need much to live comfortably. The world is what you make of it—everyone lives in their own reality and creates their own suffering. That’s why greed is one of the seven deadly sins. Warren Buffett one of the most successful investors does not mind paying taxes because making money is so easy for him. Good for thought. Give to Cesar what is Caesar’s.

[jojosim]

Bros just giving out gems for free... I had to pay for some of this info

[mantralife]

Flip side is RE market values and rent tanks and down you go.

[davidhughes]

If an investor of leveraged short term rental property does not have enough money in case tenants trash the rental. Then the investor might not have enough cash flow to repair walls, doors, repaint, replace plumbing fixtures after a big party.
The down time during repairs, can put the investor in a serious cash flow bind.
To avoid foreclosure, the investor might sell damaged short term rental property for less than original purchase price.
I don’t know….
Would the investor still owe the difference? Or can he declare bankruptcy?
Again I don’t know.

Anyone who is successful as a property investor is highly skilled and blessed with good luck.

To avoid these possible problems, an investor should have considerable cash or liquid savings to smooth out possible future snags.

Cash flow can be tricky
Good luck

[justgotdoozd]

I guess you are in fact borrowing to buy the assets, but the clear differentiator here is the cost segregation. You almost breeze over the interest expense which is the benefit of borrowing. At some point as rates creep up it gets at least challenging, at most damning.

[rayne]

In Singapore you cannot borrow till you die. There is a limit to how much you can borrow across all agencies. Govt will ensure no one run into huge debts