EP336: CAUTION: Debt-Free Might Be Keeping You Broke
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CAUTION: Debt-Free Might Be Keeping You Broke
Everybody out here is chasing debt freedom like it’s the finish line.
👉 Dave Ramsey built a fortune by telling people to stay out of debt.
👉 Meanwhile, every billionaire you know? They’re buried in it—by choice.
One of them is lying to you… And if you don’t know which, you’ll never get rich.
Today, we’re going to expose exactly who is lying…
We’re the Kitti Sisters. We went from zero to $400 million in multifamily real estate, while helping thousands break free from poverty programming.
Now, here’s what people tell me all the time:
“Kitti Sisters, I don’t want to borrow money because I’m almost debt-free.”
And our response? Debt-free still equals zero.
In this video, we’ll show you why that one decision—whether you use debt or not—is the dividing line between people who stay at zero… and people who multiply wealth again and again.
By the end, you’ll never look at debt—or wealth—the same way.
Today, we’re going to expose the reverse wealth trap. We’re going to show you why getting rich the so-called right way is actually keeping you poor forever. And we’re going to reveal the exact strategies the wealthy use to do the complete opposite of what they tell you to do.
Because once you understand what we’re about to share with you, you’ll never look at money, debt, or wealth building the same way again.”
Let me start by asking you a question that’s going to make you uncomfortable.
If Dave Ramsey’s debt-free philosophy is so effective at building wealth, why isn’t Dave Ramsey the richest man in America? 😬😬
Why is Elon Musk, who’s borrowed billions of dollars, worth over two hundred billion while Dave Ramsey is worth maybe fifty million?
And mega celebrities do this too.
Check this out, recently, Beyoncé and Jay-Z took out several mortgages on their Bel Air mansion, including a recent second mortgage of $57.75 million in 2025, bringing their total loan on the property to over $110 million, despite purchasing the $88 million home in cash in 2017.
This is a common strategy for the ultra-wealthy to maintain liquidity, allow for other investments, and benefit from potential tax advantages, rather than a sign of financial need.
Here’s the truth they don’t want you to know.
There are two completely different financial systems operating in this country. There’s the system they teach you, which is designed to keep you as a productive worker bee. And there’s the system the wealthy actually use, which is designed to multiply money exponentially.
The system they teach you goes like this: Get a good job, work hard, save money, avoid debt, invest in mutual funds, and retire at sixty-five with hopefully enough money to survive.
This is what we call the hamster wheel of financial mediocrity.
But the system the wealthy actually use is completely different.
They acquire income-producing assets, they use other people’s money to multiply their purchasing power, they structure their finances to minimize taxes, and they never retire because their money works harder than they do.
The question you need to ask yourself is this: Which system do you want to be part of?
The system that keeps you working until you die, or the system that makes your money work so hard that you never have to work again?
Because we’re about to show you that everything you’ve been taught about money is not just wrong, it’s deliberately designed to keep you in financial bondage while the wealthy get richer off your labor and your savings.
The Debt Deception Exposed
Let’s start with the biggest lie they’ve ever told you about debt.
They say there’s good debt and bad debt, but that’s peasant thinking designed to keep you small.
The wealthy don’t think about good debt versus bad debt. They think about slave debt versus master debt.
Slave debt is debt that makes you poorer. This is credit card debt to buy consumer goods. This is a car loan for depreciating vehicles.
These are student loans for degrees that don’t increase your earning capacity. Slave debt takes money out of your pocket every month and gives you nothing in return except the privilege of being in bondage to the lender.
But master debt is completely different. Master debt is debt that makes you richer.
This is debt secured by income-producing appreciating assets that other people pay back for you while you get tax deductions and build equity. This is the debt that billionaires use to multiply their wealth exponentially.
What do we mean by this?
Think of income-producing appreciating assets as hoisting a sail on a strong wind.
Once set, the wind (market forces, appreciation, compounding) does most of the work, carrying you forward faster and farther with relatively little extra effort.
Depreciating assets are like rowing against the current. Every stroke drains your energy, and the moment you stop rowing, you drift backward.
But master debt is like catching a powerful ocean current beneath your sail.
You’re not only propelled by the wind of appreciation, but the current itself (tenants paying your mortgage, tax advantages, equity build-up) multiplies your speed.
The wealthy don’t just row harder; they align their sails and harness the currents—turning debt from dead weight into a force that carries them exponentially farther.
Let us give you a syndicated multifamily property – a 120-unit multifamily complex example.
Assume the purchase price of this multifamily complex is twelve million dollars. As a limited partner, we invested one hundred thousand dollars into this deal alongside other passive investors.
According to Dave Ramsey, we should be terrified because this deal used $8.4 million in debt financing. He would say we’re overleveraged and taking unnecessary risks. But here’s what actually happened over five years.
Our $100,000 investment generated:
- Cash distributions: $50,000 in quarterly checks.
- Equity growth: $116,000 as the property appreciated.
- Tax savings: $100,000 through depreciation benefits
- Debt paydown: $20,000 as tenants paid down our mortgage
Total return: Over $200,000 on my original $100,000 investment, and we still own the asset.
But here’s the beautiful part – we didn’t have to become a landlord, deal with tenant calls at midnight, or learn property management.
We invested passively and collected checks while professionals handled everything.
According to the debt-free philosophy, we should have saved twelve million dollars in cash to buy this property outright.
Do you know how much longer that would take?
The deal would never happen. By the time we saved that much cash, the same property would cost eighteen million dollars due to appreciation.
This is why the wealthy use leverage in multifamily syndications.
We control large income-producing assets with small amounts of capital while our tenants literally pay off the debt for us while the poor avoid it.
Take a look at this loan statement from one of our properties.
For this month alone, the debt service is $250,390.
That breaks down to $122,525.28 in interest and $9,486.43 in principal.
Now, here’s the question: do you think our investors are pulling that money out of their own pockets?
Absolutely not!
That bill is being paid—every single month—by the tenants who love living in our apartments.
Leverage allows you to control large income-producing appreciating assets with small amounts of capital.
Without leverage, you’re limited to what you can save, which in an inflationary environment means you’re always chasing a moving target that’s getting further away.
The wealthy understand that debt is not the enemy. Ignorance about how to use debt properly is the enemy. We use debt as a tool to multiply our purchasing power and accelerate our wealth building. The poor avoid debt and stay poor forever.
The Cashflow Conspiracy
Now let us expose the second part of this conspiracy—and this one is going to make you angry when you realize how you’ve been played.
➡️ Imagine this: you’ve been told to pour your hard-earned money into a bucket for safekeeping.
You feel responsible, even proud, for keeping it there.
But what you don’t see is that the bucket has tiny leaks—slowly draining your wealth.
Meanwhile, someone else has quietly attached a pipe to your bucket, diverting that same water to irrigate their own fields, growing harvest after harvest while yours evaporates.
That’s exactly what happens with what I call the cash flow conspiracy.
They tell you to save money in the bank for emergencies and future purchases.
They make you feel responsible and conservative for having money in savings accounts earning half a percent interest.
When you put fifty thousand dollars in a savings account earning point five percent, you’re making twenty-five dollars per month.
But that same bank is taking your fifty thousand dollars and lending it out to real estate investors at seven percent interest, making two hundred and ninety-two dollars per month.
They’re making over ten times more money with your money than you are.
But it gets worse.
While your fifty thousand dollars sits in the bank losing purchasing power to inflation, that same fifty thousand dollars could be used as a down payment to control two hundred and fifty thousand dollars worth of real estate that generates two thousand dollars per month in cash flow.
That’s the difference between $25,000 per month and $2,000 per month.
That’s the difference between getting poorer and getting richer. That’s the difference between being a victim of the financial system and being a master of the financial system.
But here’s the part that’s really going to blow your mind.
The banks don’t just profit from the spread between what they pay you and what they charge borrowers.
They also create money out of thin air through fractional reserve banking.
When they lend out your $50,000, they’re actually creating new money in the system, which causes inflation, which makes your savings worth less over time.
So not only are they paying you almost nothing for your money, not only are they making ten times more with your money than you are, but they’re also devaluing your money through the inflationary process of money creation.
You’re being robbed in three different ways simultaneously, and they’ve convinced you that this is the responsible thing to do.
The wealthy understand this game, which is why we never keep large amounts of cash in savings accounts.
We immediately deploy their cash into appreciating assets that generate cash flow and provide tax benefits.
We use the banking system as a tool, not as a master.
The Tax Code Truth
Now let’s talk about the third part of this conspiracy, and this is the most sophisticated part of how they keep you poor while making themselves rich.
It’s the tax code manipulation.
They tell you that the tax code is complicated and that you should just pay your fair share and not try to avoid taxes.
They make you feel guilty for wanting to minimize your tax burden.
They convince you that tax avoidance is somehow unpatriotic or immoral.
But here’s the truth they don’t want you to know.
The tax code has seventy-seven thousand pages not to confuse you, but to give the wealthy seventy-seven thousand different ways to legally pay less in taxes.
Every deduction, every credit, every loophole was written by wealthy people for wealthy people.
The simplified tax advice you get is designed to keep you paying the maximum amount of taxes possible while the wealthy pay the minimum amount of taxes possible. This is not an accident. This is by design.
Let us give you some examples that will make your blood boil.
- Warren Buffett, one of the richest men in the world, pays a lower tax rate than his secretary.
- Jeff Bezos, worth over $100 billion, paid zero federal income taxes in 2018.
- Elon Musk, once the richest man in the world, has paid zero salary from Tesla for multiple years.
How is this possible?
Because they understand the difference between earned income and portfolio income.
Earned income, which is what you get from your job, is taxed at the highest rates.
But portfolio income, which is what you get from investments, is taxed at much lower rates.
But it gets even better for us, the wealthy.
When we own appreciating assets like stocks or real estate, we don’t pay any taxes on the appreciation until we sell.
This is called unrealized capital gains, and it’s completely tax-free.
So a billionaire can see their net worth increase by ten billion dollars in a year and pay zero taxes on that increase.
But if you get a ten-thousand-dollar raise at your job, you’ll pay over three thousand dollars in taxes on that increase.
But here’s where it gets really sophisticated.
The wealthy aim to never sell our income-producing appreciating assets. Instead, we borrow against them.
When you borrow money, it’s not considered income, so it’s not taxed. This means we can access the value of our appreciating assets without ever paying taxes on the appreciation.
This is called the buy, borrow, die strategy, and it’s how generational wealth is built and preserved. ✨
We buy appreciating assets, we borrow against those assets to fund our lifestyle, and when we die, our heirs receive a stepped-up basis, which means all the appreciation transfers tax-free.
Meanwhile, you’re working a job, paying the highest tax rates, and being told that this is the responsible way to build wealth.
You’re being systematically impoverished by a tax system that’s designed to extract maximum wealth from workers while protecting the wealth of asset owners.
The Inflation Arbitrage Secret
Now let us reveal the fourth part of this wealth transfer mechanism, and this is the most insidious part because it’s invisible to most people.
It’s what we call inflation arbitrage, and it’s how the wealthy get richer during inflationary periods while the poor get poorer.
They tell you that inflation is bad for everyone and that you should protect yourself by saving money and avoiding debt.
But this is exactly backwards.
Inflation is terrible for savers and fantastic for borrowers, especially borrowers who own income producing appreciating assets.
Here’s how this works.
When you have money in a savings account earning two percent interest and inflation is running at eight percent, you’re losing six percent of your purchasing power every year.
Your money is literally becoming worth less every day you hold it.
But when you have fixed-rate debt secured by income producting appreciating assets, inflation becomes your employee.
Let us give you a real example from my own portfolio that will illustrate this principle.
In 2023, we borrowed around forty-four million dollars at three point four nine percent interest to acquire a commercial property.
At that time, inflation was running at eight percent over the past three years, and we were essentially being paid 3.49% per year to hold that debt. 🤓🤓
The bank is losing money in real terms, and we and our investors are getting richer just by waiting.
But it gets even better.
That property we bought for $77 million is now worth close to $83 million due to inflation and market appreciation.
So not only are we being paid to hold the debt, but the underlying asset has appreciated by millions of dollars.
This is why the wealthy love inflation and the poor fear it.
The wealthy own appreciating assets financed with fixed-rate debt.
When inflation occurs, our assets appreciate in nominal terms while their debt becomes cheaper to service in real terms.
But the poor and middle class hold their wealth in cash and cash equivalents, which lose purchasing power during inflationary periods.
They also tend to have variable-rate debt like credit cards and adjustable-rate mortgages, which become more expensive to service during inflationary periods.
This creates a massive wealth transfer from the poor and middle class to the wealthy during every inflationary cycle.
The wealthy get richer, and the poor get poorer, and most people don’t even understand why it’s happening.
The Federal Reserve, which controls monetary policy, is essentially a wealth transfer mechanism that benefits asset owners at the expense of wage earners and savers. Every time they print money, they’re devaluing the currency and transferring wealth from people who hold cash to people who own assets.
This is why financial education is so important. If you don’t understand how the monetary system works, you’ll be a victim of it.
But if you do understand how it works, you can position yourself to benefit from it instead of being harmed by it.
The Velocity of Money Secret
Now let us share with you one of the most powerful wealth-building concepts that the wealthy use but never talk about publicly.
It’s called the velocity of money, and it’s how the same dollar can work in multiple places simultaneously to multiply your wealth exponentially. 🚀
Think of it like the multi-verse in the Marvel’s universe.
Poor people think about money like a lake – still, stagnant, and limited.
They save money in one account, spend it on one thing, and that’s the end of the story. But wealthy people think about money like a river – always flowing, always moving, always working.
Here’s how this works in practice.
We buy a property for $500,000 with one hundred thousand dollars down.
That property appreciates to $700,000 over three years.
Now I have $200,000 in equity that we can access without selling the property.
We go to the bank and refinance the property, pulling out $140,000 in tax-free cash.
Now we have my original property still appreciating, still generating cash flow, still providing tax deductions, plus we have $140,000 in cash to deploy into another investment.
We use that $140,000 as a down payment on another property worth seven hundred thousand dollars.
Now we control $1.4 million worth of real estate with my original $100,000 investment.
But we’re not done.
Both properties continue to appreciate.
Both properties generate cash flow. Both properties provide tax deductions. And in a few years, we can refinance both properties and pull out more cash to buy more properties.
This is how $1 becomes $5 of working capital.
This is how wealthy people multiply our money exponentially while poor people struggle to save their first hundred thousand dollars.
The key insight here is that the wealthy never think in terms of spending money.
We think in terms of deploying capital. Every dollar we deploy must generate more dollars. Every investment must create multiple streams of value – cash flow, appreciation, tax benefits, and the ability to leverage into more investments.
This is why we, the wealthy get richer faster over time.
It’s not just compound interest. It’s compound leverage. We’re compounding our returns on an ever-increasing base of assets, all financed with other people’s money.
Meanwhile, the poor and middle class are told to save money in low-yield accounts and invest in diversified mutual funds that generate mediocre returns. They’re playing a completely different game with completely different rules, and they wonder why they can’t keep up with the wealthy.
The velocity of money is the difference between linear wealth building and exponential wealth building. It’s the difference between saving your way to wealth over forty years and leveraging your way to wealth in ten years.
But here’s what they don’t want you to understand.
The banking system is designed to facilitate this velocity of money for the wealthy while restricting it for everyone else.
When a wealthy person wants to borrow against their assets, banks compete to give them the best rates and terms. When a poor person wants to borrow money, they get high interest rates and restrictive terms that keep them trapped in debt.
This is why building your first asset is so critical. Once you own appreciating assets that banks will lend against, you gain access to the same financial tools that the wealthy use. You can start playing by their rules instead of the rules they created to keep you poor.
The System Exposure
Now let us expose the final piece of this conspiracy, and this is the part that’s going to make you the angriest because it reveals how the entire financial services industry profits from keeping you poor.
Every piece of mainstream financial advice is designed to generate fees and commissions for the financial services industry while keeping you dependent on their services forever.
Financial advisors want you to invest in mutual funds because they collect management fees every year whether the funds perform well or not.
They don’t want you to own real estate directly because they can’t charge you ongoing fees for property you own outright.
Banks want you to keep money in savings accounts because they can lend it out at much higher rates.
They don’t want you to understand how to use debt strategically because then you’d be competing with them instead of funding them.
Insurance companies want you to buy whole life insurance as an investment because they can invest your premiums at higher returns while paying you lower returns.
They don’t want you to understand that term life insurance plus real estate investing would give you better results at lower costs.
The government wants you as a W-2 employee because your taxes are automatically withheld and you have limited deductions.
They don’t want you to become a business owner or real estate investor because then you’d have access to the same tax strategies that the wealthy use.
Even the debt-free gurus are part of this system.
They make money selling books and courses that teach you to avoid the very tools that could make you wealthy.
They keep you scared of leverage so you never compete with the people who are actually building wealth.
This is why financial education is not taught in schools. This is why the media focuses on stock picking instead of wealth-building strategies.
This is why you’re told to diversify instead of concentrate.
They want you confused, scared, and dependent so you’ll keep feeding the system that makes them rich.
Reversing Engineering Wealth
So what’s the solution?
How do you escape this trap and start building real wealth?
You reverse-engineer everything you’ve been taught and start doing what the wealthy actually do.
✔️ Instead of saving for a house to live in, you save for a down payment on an investment property that generates cash flow.
✔️ Instead of paying off debt as quickly as possible, you acquire appreciating debt that makes you richer over time.
✔️ Instead of trying to avoid taxes, you learn to legally minimize them through business ownership and real estate investing.
✔️ Instead of diversifying your investments across mutual funds, you concentrate your capital in assets you understand and can control.
✔️ Instead of working harder for money, you make your money work harder for you through leverage and cash flow.
This isn’t about getting rich quick.
This is about getting rich correctly using the same strategies that have created generational wealth for centuries.
The wealthy have been using these strategies since the beginning of capitalism.
The only difference is that now you know their playbook.
As immigrants who came to this country with nothing and built over four hundred million dollars in real estate using these exact principles, we can tell you that the American Dream is not dead.
It’s just been hidden from you by people who profit from your ignorance.
But here’s what we need you to understand.
Knowledge without action is worthless.
The wealthy don’t just know these strategies – they implement them.
The choice is yours.
You can keep following the financial advice that’s designed to keep you poor, or you can start thinking and acting like someone who’s actually built wealth.
You can keep being a victim of the financial system, or you can learn to master it.
Your ancestors didn’t sacrifice everything they had to come to this country so you could live paycheck to paycheck and retire broke.
They came here so you could build generational wealth and create a legacy that lasts for centuries.
It’s time to honor their sacrifice by breaking free from the poverty programming that’s kept your family trapped.
It’s time to start playing by the rules that actually create wealth instead of the rules that keep you poor.
If you’re ready to learn exactly how to implement these strategies, if you’re ready to acquire your first income-producing asset using other people’s money, if you’re ready to start building real wealth instead of just dreaming about it, then we’ve created a free training that will show you exactly how to do it.
But we’re warning you – once you see how the game is really played, you can never unsee it.
You’ll recognize just how much wealth you’ve been leaving on the table.
You’ll understand why, no matter how hard you’ve worked or how closely you’ve followed conventional advice, financial freedom has still felt out of reach.
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