Someone owes the bank $1B but holds $2B in assets. They're $1B in debt but also $1B richer on paper. This is OPM (Other People's Money) in action.
Example: You want a $10M apartment building. Put down $2M of your own cash, borrow $8M from the bank. Now you control a $10M asset.
If the rent covers mortgage + operating costs, the building pays for itself. Property appreciates to $13M? You just gained $3M in equity without saving $13M upfront.
That's leverage.
Kiyosaki's been preaching this for decades. He deliberately uses debt to acquire cash-flowing assets. Good debt funds good business.
Same logic applies in crypto: Use stables as collateral, borrow against your $BTC or $ETH, deploy into yield or new positions. Let the asset work while you stay liquid. Risk management is key, but the framework is identical.
Debt isn't the enemy. Unproductive debt is.
Example: You want a $10M apartment building. Put down $2M of your own cash, borrow $8M from the bank. Now you control a $10M asset.
If the rent covers mortgage + operating costs, the building pays for itself. Property appreciates to $13M? You just gained $3M in equity without saving $13M upfront.
That's leverage.
Kiyosaki's been preaching this for decades. He deliberately uses debt to acquire cash-flowing assets. Good debt funds good business.
Same logic applies in crypto: Use stables as collateral, borrow against your $BTC or $ETH, deploy into yield or new positions. Let the asset work while you stay liquid. Risk management is key, but the framework is identical.
Debt isn't the enemy. Unproductive debt is.