Buy, Borrow, Die: Tested Wealth Building Strategy for 2025

You know how the ultra-wealthy seem to keep getting wealthier? In 2024, the top 1% added more to their wealth than any other year in history. 

Their secret? They've upgraded their playbook to what I call Buy, Borrow, Die 2.0. And the best part? You don't need to be a millionaire to use this wealth building strategy.

I’ll break down the ideas behind the strategy, share real-life examples (including some cool numbers and calculations), and even toss in a few handy tips and tools that can help you succeed. 

Whether you’re a real estate beginner or already have some experience and want to sharpen your strategy, you’ll find something valuable here. 

The Tale of Two Investors: Jordan and Janet

Let’s start with a simple story that really sums up why this strategy works so well. Meet Jordan and Janet—two real estate investors who started off on nearly identical paths but ended up with very different outcomes.

Jordan decided to sell his rental property for $500,000. After paying taxes, he ended up with $450,000. At first glance, it looked like a solid move. 

But guess what? One year later, Jordan’s bank balance was shrinking. Meanwhile, Janet, who took a different approach, saw her net worth nearly double in the same time frame.

What did Janet do differently? Instead of selling her property, she kept it and used the strategy of Borrow Don’t Sell. By holding on to her property and borrowing against its value, Janet managed to generate extra income and keep her asset appreciating over time. 

Her smart move shows one of the coolest real estate wealth hacks: instead of cashing in on an asset and paying hefty taxes, you can Borrow Against Equity to grow your portfolio without sacrificing the asset’s potential.

Understanding the Original "Buy, Borrow, Die" Strategy

Before we get into the 2025 upgrade, let’s quickly review the original "Buy, Borrow, Die" idea. 

Think of it like this: imagine you own a massive pile of gold. Selling that gold would mean losing a chunk of its value to taxes, so instead, you borrow money against it. 

With that borrowed cash, you buy even more assets—all while your gold pile stays intact. That’s the essence of the strategy.

Step 1: Buying and Holding Appreciating Assets

The first step is simple: Buy assets that will appreciate over time. 

Let’s take Trump Tower as an example. It isn’t just a fancy building—it’s a real money machine. Over time, as the building increases in value, tenants pay rent, and tax codes give you write-offs through depreciation, your equity builds steadily. It’s a classic case of real estate cash flow working in your favor.

Step 2: Borrowing Against Your Assets

Next comes the smart move of Borrow Don’t Sell. Instead of selling your appreciating asset, you simply borrow against it. When you need cash for another project, you take a loan instead of selling your asset, meaning you never trigger a taxable event. 

With Trump Tower, when cash is needed for a new project, the owner can borrow against the property. The borrowed money isn’t taxed because it isn’t counted as income—it’s just a loan.

Step 3: The Ultimate Tax Hack—Step Up in Basis

Now, here’s where the strategy turns into a real estate wealth blueprint for preserving your fortune. When the properties are eventually passed on, they come with what’s called a “step up in basis.” 

That means the asset is revalued at its current market price, wiping out all the built-up deferred taxes. For instance, if Trump Tower was bought for $50 million and is now worth $500 million, the appreciation—$450 million—gets passed on tax-free. This is a smart way the rich use taxes to secure their legacy.

Upgrading the Strategy for 2025

The original plan worked wonders for many, but in 2025, things have evolved. With higher interest rates, persistent inflation, and new financial tools at our disposal, the rich have refined the approach into what we now call “Buy, Borrow, Die 2.0.”

 Let’s break down the four major upgrades that make this version so powerful.

1. Creative Financing

Remember Janet? While Jordan sold his property and ended up with less over time, Janet held on to hers. She had a small remaining mortgage of $50,000 at 4% interest. Instead of selling, she tapped into her property’s equity with a Home Equity Line of Credit (HELOC) for $200,000 at 7% interest.

Here’s the breakdown:

• Janet’s monthly mortgage payment on the remaining $50,000 is just $239.

• Her HELOC adds about $1,167 a month in payments.

• On the income side, her new short-term rental brought in $3,150 a month.

• That nets her a positive cash flow of about $744 per month—roughly $21,000 extra a year—all while she continues to build equity in not just one, but two properties.

This approach is a true mortgage hack that keeps your cash working for you and not sitting idle, eroding away with inflation.

2. Digital Asset Integration and New Financial Tools

The wealthy aren't just borrowing against real estate anymore – they're leveraging cryptocurrency and tokenized real estate in fascinating ways. Let me share two real examples:

Marcus's Strategy:

• Bitcoin holdings: $400,000

• Borrowed amount: $200,000 at 5.5%

• Used funds to buy: Small apartment building

• Result: Bitcoin continues growing while apartments generate cash flow

Sarah's Approach:

• Initial investment: $50,000 in tokenized real estate

• Portfolio: Owns pieces of 5 luxury properties

• Borrowed: $30,000 at 6% for e-commerce business

• Benefits: Instant access to capital, no bank applications, zero tax implications

Speaking of managing multiple properties efficiently, one rich people secret I've learned is the importance of streamlined communication. That's why I recommend Hire My Call Porter for professionally trained, U.S.-based call answering. 

It'll help scale your real estate business so you can escape being tied to your phone 24/7.

3. Inflation Protection

Inflation can be a beast, but here’s a neat trick: 

When you borrow money today, you’re paying it back in dollars that are worth less in the future due to inflation. Meanwhile, your real estate assets are likely appreciating. It’s like taking out a loan in gold and paying it back in silver.

If inflation is running at 5% annually, that $500,000 loan you took out today will feel more like $475,000 next year in terms of purchasing power. Meanwhile, your property value is likely increasing with (or above) inflation. It's like getting paid to borrow money!

4. Private Lending Networks

Instead of being at the mercy of big banks with their slow processes and high interest rates, many investors are joining private lending circles. Think of these as exclusive clubs where investors can get faster, cheaper loans based on the value of their assets rather than their credit scores.

A real-life example: One of my clients needed $400,000 for a commercial property. When he went to a traditional bank, he was quoted a 7.8% interest rate and a 45-day closing timeline. 

But by tapping into his private lending networks, he snagged a loan at just a 4.9% interest rate with a 10-day closing period, interest-only payments for the first year, and no personal guarantee required.   

Finding these networks isn't as hard as you might think. Here are three ways to get started:

1. Connect with commercial mortgage brokers in your area

2. Join your local real estate investment association (REIA)

3. Network with experienced investors who regularly lend on deals

There's also a special loophole for those just getting started. If you have:

• 680+ credit score

• No bankruptcies in the last 7 years

• No current collections You might qualify for up to $150,000 of 0% interest capital through a special bank consortium program.

   

Implementation Rules for Real Estate for Beginners

Now, you’re probably thinking: “This all sounds amazing, but what about the risks?” That’s a great question. The secret is to use the strategy wisely and follow some safety rules to keep you out of hot water.

Rule #1: The 75% Loan-to-Value Rule

For every property you own, don’t borrow more than 75% of its value. For example, if your property is worth $500,000, that means you should never borrow more than $375,000 against it. 

If you’re new to this game, aim to stay under 60% LTV—that’s about $300,000 on a $500,000 property. This cushion gives you a buffer in case the market takes a downturn.

Rule #2: The Reserves Rule

Always maintain reserves. For each property, set aside enough money to cover at least 6 months of expenses—this includes mortgage payments, property taxes, insurance, and maintenance costs. 

For a typical $500,000 property, that might mean having $15,000 to $20,000 in reserve. These reserves act like a safety net, ensuring that you’re not forced into a cash crunch even during a market dip.

Rule #3: The Cash Flow Rule

Every property you invest in should generate more income than it costs. After accounting for all expenses—mortgage payments, taxes, insurance, maintenance, management fees, and potential vacancies—you should aim for a monthly cash flow of at least $200 per unit. 

If it doesn’t, then it might not be worth the risk. This rule is essential for maintaining consistent real estate cash flow and sustaining your portfolio.

Why You Need to Act Now

So, what have we learned? “Buy, Borrow, Die” creates a real estate portfolio that works tirelessly for you. The window for taking advantage of this wealth-building strategy is closing fast. Interest rates might climb even higher, and tax laws are constantly changing. 

Think about Jordan and Janet again: while Jordan lost out on $122,000 in the first year alone from opportunities and inflation, Janet’s smart approach netted her a whopping $42,988 difference over just 365 days. 

Imagine what that kind of difference can do over several years!

Remember, you don’t have to navigate this journey alone. As you start implementing these strategies, consider partnering with experts who can help streamline the process. 

For instance, if you’re an agent or investor and tired of juggling calls and property management tasks, Hire My Call Porter can provide professionally trained, U.S.-based live call answering services. It’s a great way to keep your focus on growing your portfolio instead of being bogged down by administrative tasks.

And if you’re ready to break free from living paycheck to paycheck and finally take control of your financial destiny, check out My Escape Book. This resource offers a clear, step-by-step plan to overcome financial constraints, even if you’re just starting.