How The Ultra-Rich Use The 'Buy, Borrow, Die' Strategy

Ken McElroy reveals how the wealthy strategically use debt as a tool to build massive wealth and avoid taxes legally. Learn actionable strategies to buy appreciating assets, borrow against them tax-free, and transfer wealth to heirs while minimizing taxes, all explained step-by-step.

Ken has a real estate strategies podcast! Follow your favorite platform each week.

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ABOUT KEN:
Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.


Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.

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Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’

Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.

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[Shiibai]

This is exactly why I started reading books like The Secret Doctrine of Wealth. They teach you skills and strategies that college never will.

[onvamdimon]

“Sorry mum, but I sold you instead of your house” 😂 Truly 💯 dealer who always put money first. Not a compliment at all)

[justinmirche]

Love the clarity in explaining these complex strategies! Using leverage and cash flow for tax-free borrowing is such a smart move. Definitely motivates me to dig deeper into real estate investing.

[herbigp]

How can I get an appointment with your CPA for a few hours?

[frankshea]

I was just in Arizona, I wanted to contact you to grab lunch…next time Ken! You’re awesome !

[rmjd]

So how do you pay the loan back.. didn't say anything about it. How do you ensure that you assets grow?

[Seaward]

Sounds great but when we are seeing 5 to 7% interest rates, declining real estate values a stock market at all time highs, you dont want the risk and stress of buying/running and running a business does any kf this ma km e sense?

[swamybale]

There are two things I want to know.

Whatever you borrow, you have to pay interest. I know your tenants pay fo it, but what if the repayment is more than the income generated?

Second how do you use borrowed money to pay for your day to day living?

Thanks

[keirdoubas]

You're a living legend Ken. You've taught me so much about investing and life in general. Your 3 books are pride of place on my shelf. Thank you and happy new year.

[khanscombe]

What is the legal way to keep in the family but use its equity to invest without tax? Do you sell it to family or?

[byronrich]

@ Ken McElroy can you speak more about gold and silver in a portfolio

[juanosorno]

When you borrow from a bank, the bank will make you increase the insurance coverage to the max which increases your expenses. This happened to me. I went from paying $3, 000 per year for insurance to $35, 000 the following year. It was a bad deal.

[MinotauroTrading]

Ok but how about the interest, thats what i dont get. You still have to pay interest.
I have looked at some deals here in Brazil and they dont make any sense.

[smiley]

Interest rates are high and housing prices are high. I have real estate with low interest rates and I don’t want to refi at a higher rate. What would you suggest? Should I refi and buy more housing at peak prices and higher interest rates?
That just doesn’t make sense to me…..

[frankshea]

I have a question. I am inheriting 1/4 on two 1br condo rentals with tenants. I want to buy out the other three beneficiaries. Should I take out a mortgage or cash from inheritance IRA?

[robreke]

Yeah you don’t get taxed on loans but you gotta pay the interest payments each month and those can be as expensive as a tax

[johnbarnette]

Been doing as such for years. But there is diminished tax treatment of mortgage interest paid on investment property. Pull out $100, 000 and the mortgage goes from $500, 000 to $600, 000. If you use that $100, 000 to buy other investment real estate you can still use the interest on that additional $100, 000 as a write off. But if you use that $100, 000 to finance life or buy a business or stock or make hard money loan, the interest expense cannot be deducted. Yes the $100, 000 comes tax free, but all is not without tax implication. At least my cpa advised and real estate in personal ownership, not an LLC etc

[videodvd]

Re leaving to heirs, if the 2mil is 80% financed your heirs really only receive 40k in equity. Pls tell me otherwise

[Abemtric]

Thank you! I NEEDED this information!
I did not know that after I die I could transfer my assets (tax free) to my heirs!

[eeprimeworld]

can this be done with rental properties?