EP329: 99% of People Are Literally Paying the Bank to Make Them Poorer

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We’ve accumulated $400 million in a real estate portfolio, yet we own absolutely nothing.

And before you think we’re crazy, this is exactly how the ultra-wealthy stay rich while the 99% stay broke. 

You see, there’s a financial war happening right now, and most people don’t even know they’re losing. Every single day, the banking system is legally stealing your wealth, transferring it from your pocket to the pockets of people who understand the real rules of money.

What do we mean by this?

What if we told you that everything you’ve been taught about building wealth is not just wrong – it’s designed to keep you poor? What if the very strategies that financial advisors recommend are actually the biggest wealth destroyers in history?

👉 We’re Palmy ➕ Nancy, we’ve built a $400 million multifamily real estate empire in just 6 years.

We’ve helped thousands of investors generate over $93 million in tax savings.

But here’s what’s going to blow your mind – we don’t actually “own” any of it. And that’s precisely why we’re rich.

See, most people think wealth is about accumulation. Get a good job, save money, buy a house, invest in your 401k, and hope for the best. But that’s the middle-class trap that keeps 99% of people financially imprisoned their entire lives.

The wealthy play by completely different rules. Rules that aren’t taught in schools, aren’t discussed by financial advisors, and definitely aren’t promoted by the banking system. 

Because if everyone knew these rules, the entire financial system would collapse overnight.

Today, we’re going to pull back the curtain and reveal the three secrets that separate the wealthy from everyone else. 

But before we dive in, let us show you exactly how your bank is using YOUR money to make themselves rich while keeping you poor… 😢😢

The Banking Deception:  What They Don’t Want You to Know About Your Money

Let’s talk about something that might make your jaw drop:

We’ve all been told to “save money” because it’s safe and smart… right? You get your paycheck, slide a chunk into your savings account, and feel like you’re being a responsible adult.

But here’s what they didn’t tell you:

The moment you deposit your money into a bank, they don’t keep it safe and sound. Nope. They turn around and lend out 80% of your money at way higher interest rates to people who know how to make money work for them.

This system is called fractional reserve banking, and it’s one of the biggest (legal!) scams in history.

Let’s break it down:

📉 You earn 1% on your $100,000 savings → that’s $1,000 a year.

📈 The bank lends out your money at 7% → they earn $7,000.

They pocket the $6,000 difference—and you don’t even get a thank-you note.

And it gets worse…

While you’re earning pennies, you’re probably using their credit card at 29.99% interest—on the same pool of money you deposited. Yep, you’re literally borrowing your own money back at 30x the rate they paid you for it.

Let that sink in.

Oh, and that 1% interest you’re earning? It’s not even keeping up with inflation. So you’re actually losing money every year by saving. 🙃

And if you think, “Well, at least my money is safe…”

Think again. If your bank fails and you have over $250K deposited? Only the first $250K is insured by the FDIC. The rest? Poof. It’s a gamble.

Here’s what the wealthy know that most people don’t:

💡 Savers lose. Borrowers win.

Since 1971, the U.S. dollar has lost 85% of its purchasing power. That means if you just held onto cash, you’ve been quietly robbed by inflation.

But if you borrowed money in 1971 to buy an income-producing asset like real estate? You paid back that loan with dollars that were worth less and less every year. Translation: your debt got cheaper. Your asset got richer.

So no, the wealthy don’t hoard cash.

They move it. They deploy it. They partner with banks—they don’t let banks profit off of them.

When we walk into a bank, we’re not there to open a savings account. We’re asking for millions to fund deals that generate cash flow, appreciation, tax benefits—and real wealth. And the bank says yes, because they know we’ll turn their money into more money.

Here’s the takeaway:

🔁 Don’t just save money. Use it.
🧠 Don’t fear debt. Understand it.
🏦 Stop being the bank’s customer—start being its partner.

And please, for the love of your financial future:  Don’t let the system profit off your fear.

This leads us to why the rich own nothing.

Why the Rich “Own Nothing”… and Why That’s the Smartest Thing They Ever Did

Okay, let’s flip everything you thought you knew about building wealth.

Most of us grow up thinking that owning things—a home, a car, a business—is the ultimate goal. But the truth? The ultra-wealthy do the exact opposite.

Here’s the thing:

We don’t own anything. But we control everything.

And no, it’s not shady or sneaky—it’s smart. It’s protective. And once you understand it, you’ll never look at “ownership” the same way again.

The Hard Truth: Ownership Can Make You a Target

Let’s get real for a second.

A good friend of ours once made a simple mistake: he ran a red light while driving his family. People got hurt. Lawsuits followed. His insurance didn’t cover everything—and because everything he personally owned was fair game, he lost almost everything.
💔 His house. His retirement. His kids’ college fund. Gone.

All because he owned things in his own name.

The Wealthy Protect What They Build

So what do we do differently?

We don’t own our assets personally.

Instead, every apartment, every business, every investment we control is held inside an LLC, trust, or entity.

If someone sues us, what do they find?

👉 Nothing to take. Because we don’t own it.

This is called asset protection, and it’s like putting a legal moat around everything you’ve built.

How It Works: Layers of Legal Protection

Let’s say we buy a $20 million apartment complex.  We don’t put it in our personal name—we create a brand-new LLC just for that property.

That LLC owns the building.

Another LLC might manage the operations.  A trust could hold ownership shares.

Why all the layers?

Because if anything goes wrong—like a tenant slips and falls—the lawsuit stops at the LLC. They can’t touch us or any of our other properties. That’s compartmentalized risk—and it’s how wealthy people avoid financial ruin.

And Here’s the Bonus: Huge Tax Advantages

This isn’t just about lawsuits.  It’s also about keeping more of what you earn.

When entities own assets, you can access tax strategies that individuals can’t. We’re talking:

• Lower corporate tax rates
• Smart deductions
• Tax deferral through trusts
• Even passing on wealth tax-free through estate planning

The tax code wants you to structure your finances this way. It’s not a loophole—it’s a blueprint.

But Isn’t That Complicated?

A little, yes. But worth it? 1000%.

Setting up your legal and financial structure might cost $10k–$50k. But not having it? That can cost you everything.

Our friend could’ve protected his entire net worth for less than $20k. Instead, he lost millions. That’s the price of not knowing.

It’s Not About Hiding—It’s About Being Smart

Let’s clear something up.  This isn’t about avoiding responsibility. It’s not unethical.  It’s the same structure used by every major corporation.

Apple doesn’t personally own its factories—Apple Inc. does.  This is just smart, proactive planning. And it’s available to you, too.

Here’s What This Changes

Once you protect your downside, you’re free to go all-in on the upside.

You’re less afraid to:

• Start a business
• Buy an investment property
• Take a leap that could change your life

Because your personal assets are safe, you can finally stop playing defense and start building real wealth.

Once you’ve set yourself up with the right legal structures to protect yourself against the litigious nature of our society – that’s the defensive play – now it’s time to go on the offense with your money. And what I’ll share with you next is what we consider the best asset class to do exactly that.

🏢 Why Multifamily Real Estate Is Our Favorite Money Machine

You’ve probably heard “real estate builds wealth,” right? But we’re not talking about buying a single rental house and crossing your fingers. We’re talking about multifamily—think apartment buildings with 100+ units. And it’s our favorite way to grow wealth without “owning” a thing in our personal name.

Here’s the why behind the what:

It Pays You Monthly/Quarterly (Like Clockwork)

Multifamily isn’t a “maybe it’ll go up someday” type of investment.  It pays real cash every single month from tenants who need a place to live.

200 units = 200 rent checks.  Even if 10 people move out? You still have 190 people paying you. Predictable. Scalable. Stable.

You Can Force It to Be Worth More

Here’s the wild part:
When we renovate units or improve operations, we can raise rents and literally increase the building’s value on purpose.

💡 Add $200k in annual income? At a 5% cap rate, we just created $4 million in value.
(It’s like printing money legally… but prettier.)

You Don’t Need Millions to Start

We use leverage—aka the bank’s money.
We might put in $5M, borrow $15M, and buy a $20M asset that pays us income and appreciates in value.
And bonus? Our tenants help pay down that $15M loan.

Tax Perks Galore

Because of how these deals are structured, we get access to tax benefits most people never hear about.
Think: depreciation, deductions, and strategies that can legally reduce your tax bill to zero.

It’s the Ultimate Wealth Vehicle

Multifamily gives us:
✔ Monthly income
✔ Long-term appreciation
✔ Tax advantages
✔ Asset protection
✔ The ability to scale

The Secret the Wealthy Use to Pay Zero in Taxes (Legally)

Okay, deep breath—because this next part might blow your mind.  Yes, it’s totally possible to make millions… and pay almost nothing in taxes. And it’s 100% legal.

Here’s the magic behind how it works (and how we helped our investors save $93 million in taxes).

The IRS’s Favorite Gift: Depreciation

Multifamily real estate comes with a built-in tax superpower called depreciation.

You get to “pretend” the building is losing value over time (even while it’s actually appreciating and cash flowing).

📊 So we can earn $500K in profit… and report a $400K loss on our taxes.

Yep—make money, pay nothing.

Cost Seg = Mega Deductions

We use something called a cost segregation study.  It’s like Marie Kondo-ing a building—breaking out parts (like flooring and appliances) so we can deduct them faster.

On one deal, we got over $19M in depreciation—more than we even paid for the property. (Wild, right?)

Bonus Depreciation = First-Year Wins

Thanks to recent tax law (hello, Trump’s “Big Beautiful Bill”), we can now write off improvements immediately.
Spend $2M on renovations? We deduct it now, not over 27 years.

Sell… Without Taxes?

Enter the 1031 Exchange.

We sell a property, roll the gains into a bigger deal—and skip the tax bill.

Repeat this over and over, and you defer taxes forever. And when we pass it on to our kids? They inherit it tax-free at today’s value. Talk about generational wealth.

Real Estate Pro Status = Tax Ninja Mode

If you or your spouse qualifies as a real estate professional, those paper losses can wipe out taxes on any income. Even your W-2 paycheck.

This Isn’t a Loophole—It’s a Strategy

The government wants investors to provide housing, so they’ve baked incentives into the tax code.  Multifamily real estate isn’t just an investment—it’s a wealth and tax elimination strategy.

Most people pay 35-50% in taxes.  We pay close to zero, and still grow our net worth.

So… Will You Keep Playing the Old Game?

You could:

✔ Keep saving, hoping for a 1% return,
✔ Keep paying half your income in taxes,
✔ Keep playing it “safe” while losing wealth quietly…

Or… you could flip the script.

Start thinking like the wealthy.  Structure like the wealthy.  Invest like the wealthy. 🙂🙂

The system isn’t broken—it’s just not designed for savers.  It’s designed for smart investors.

If you’re ready to learn exactly how to implement these strategies and start building real wealth through multifamily real estate, go watch this video where we breakdown the steps to buy a $10 million without using your own money.  We’ll see you there.