Other People's Money: How to Use Leverage to Build Wealth Without Going Broke in 2026

There is a principle the wealthy understand that most families never grasp: you don't need all your own money to build wealth. In fact, trying to build a real estate portfolio, a business, or an investment empire using only your own savings is the slowest path to wealth that exists. The wealthy use leverage — the strategic use of borrowed capital to control assets far larger than they could purchase with cash alone. Used wisely, leverage multiplies your returns, accelerates your timeline, and lets you acquire income-producing assets that pay back the borrowed money while you keep the asset. Used recklessly, it's the fastest way to lose everything you've built.

I'm Damon Boswell, and leverage is one of the most misunderstood tools in the wealth-building work I do with families alongside my wife, Lady Ashley Boswell. Most people carry a healthy fear of debt — and rightly so. Consumer debt, the kind that funds lifestyles instead of assets, is a trap. But strategic leverage, the kind that acquires income-producing real estate or scales a profitable business, is one of the most powerful tools a Kingdom builder can steward. In this guide, I'll walk you through what other people's money (OPM) actually means, the sources you can tap, the metrics that keep you safe, and the Kingdom mindset that turns borrowed capital into a tool for legacy rather than a trap for ruin.

What Other People's Money Actually Means

Other people's money — OPM — is exactly what it sounds like: using capital that belongs to someone else to acquire an asset that benefits you. That 'someone else' might be a bank, a credit union, a private lender, a partner, a seller, or even an institutional investor. The principle is simple. Instead of saving for twenty years to buy a $400,000 rental property in cash, you put down $100,000 and borrow the remaining $300,000. The tenant's rent pays the mortgage, taxes, insurance, and expenses — and what's left over is your cash flow. When the property appreciates, it appreciates on the full $400,000 value, not just your $100,000 investment. That's leverage in action.

Lady Ashley often tells the families we mentor, 'The wealthy don't avoid debt — they master it.' The difference between debt that destroys and debt that builds comes down to one question I ask every mentee: does this borrowed capital acquire or produce an asset that earns more than it costs? If the answer is yes, you're investing. If the answer is uncertain, you're gambling. Damon Boswell teaches that leverage is a tool, and like every tool, its value depends entirely on the hand and the heart of the one who wields it.

The Sources of OPM Every Investor Should Know

The funding landscape in 2026 is broader than most people realize, and understanding the menu of OPM sources is the first step to choosing wisely. Lady Ashley and I walk every client through these core categories before recommending a path, because the source of your capital shapes the terms, the risk, and the relationship.

• Conventional Bank Loans — Traditional mortgages and commercial loans from banks and credit unions. Lowest rates, longest terms, but the strictest qualification requirements and the most documentation.
• DSCR Loans — Qualify based on the property's cash flow rather than your personal income. Ideal for full-time investors building a portfolio. Lenders want a debt service coverage ratio of 1.25 or higher.
• Private Money — Loans from individuals — family, friends, or private investors — secured by real estate. More flexible terms and faster closings than banks, but typically higher interest rates.
• Hard Money — Short-term, asset-based loans from specialized lenders. Fast funding for fix-and-flip or bridge deals, but rates of 10–15% and short terms mean they're a tool, not a long-term hold.
• Seller Financing — The seller acts as the bank, carrying a note on the property. More common in slower markets and a powerful tool Damon calls 'the hidden leverage of a balanced market.'
• Equity Partnerships — You bring the deal and the management; a partner brings the capital. You split cash flow and equity. Ideal when you have skill but limited cash.
• Home Equity Lines of Credit (HELOC) — Borrowing against the equity in your primary residence to fund investments. Powerful, but Damon cautions families to use it only with a clear, conservative repayment plan.

The Math of Leverage: Why It Multiplies Returns

Let me show you the numbers, because Damon Boswell believes numbers tell the truth that emotion hides. Imagine a $400,000 rental property that appreciates 4% per year and generates $2,000 monthly in rent. If you buy it in cash, your $400,000 investment grows by $16,000 in appreciation the first year — a 4% return on your cash, plus the rental income. Now imagine you put 25% down — $100,000 — and borrow $300,000 at 7% interest. The property still appreciates $16,000, but that return is measured against your $100,000 cash investment. That's a 16% return on your cash from appreciation alone, before cash flow, tax benefits, and loan paydown.

That's the power of leverage. The same asset, the same appreciation, but a dramatically higher return on the capital you actually deployed. And here's the deeper magic: the tenant's rent is paying down your mortgage every month, building your equity in an asset you didn't fully pay for. Lady Ashley puts it beautifully: 'Real estate is one of the few investments where someone else — your tenant — is literally buying the asset for you.' That's why Damon Boswell considers leverage the engine that turns a single rental into a portfolio over time.

Leverage doesn't create wealth — it accelerates it. The wealthy use borrowed capital to control assets that appreciate, cash flow, and pay back the debt while they keep the equity. — Damon Boswell

The Debt Service Coverage Ratio: Your Safety Gauge

Here's where most over-leveraged investors get into trouble. They fall in love with the math of leverage and forget the math of survival. The single most important metric I teach every mentee is the Debt Service Coverage Ratio, or DSCR. It measures whether a property's income can actually cover its debt payments — and it's the difference between a sustainable portfolio and a house of cards. DSCR is calculated by dividing the property's net operating income by its annual debt service. A DSCR of 1.0 means the property's income exactly covers its debt — nothing left for reserves, vacancies, or life. A DSCR below 1.0 means the property loses money every month and you're feeding it from your own pocket.

Most lenders require a minimum DSCR of 1.25, meaning the property's income exceeds its debt payments by 25%. Damon Boswell recommends 1.4 or higher for safety, because real life includes vacancies, repairs, and market downturns that the optimistic projections never account for. If a deal only works at a DSCR of 1.1, it's not a deal — it's a hope. Lady Ashley tells families, 'A property that barely cash flows today will bleed you dry tomorrow. Buy deals that work with room to spare, or don't buy them at all.'

• DSCR = Net Operating Income ÷ Annual Debt Service.
• Lenders typically require a minimum DSCR of 1.25.
• Damon Boswell recommends 1.4 or higher for a safety margin.
• A DSCR below 1.0 means the property loses money every month.
• Always stress-test your deal at higher vacancy and expense assumptions before you buy.
• Conservative DSCR is what separates investors who survive a downturn from those who don't.

The Risks Every Leveraged Investor Must Respect

For all its power, leverage is a two-edged sword, and Damon Boswell refuses to teach it without teaching the risks. The same mechanism that multiplies your returns on the way up multiplies your losses on the way down. If that $400,000 property drops 10% in value, your $100,000 equity investment loses $40,000 — a 40% loss on your cash, not 10%. That's the dark side of leverage, and it's the reason over-leveraged investors lose everything in a downturn while conservative investors survive and buy the discounted deals the desperate are forced to sell.

The second risk is cash flow failure. If rents drop, vacancies spike, or expenses surge — and insurance costs have risen sharply in markets like Florida — a property that was comfortably cash-flowing can turn negative overnight. If you don't have reserves to carry it, you're forced into a fire sale at the worst possible time. The third risk is interest rate exposure. If you're relying on short-term or adjustable-rate debt, rising rates can push your payments beyond what the property's income can support. Damon and Lady Ashley both stress this: fixed-rate, long-term debt on cash-flowing assets is the safest form of leverage. Variable-rate debt on speculative deals is the most dangerous.

Leverage is a magnifying glass. It magnifies your wisdom and it magnifies your foolishness. The same tool that builds a fortune can erase one. — Lady Ashley Boswell

The Disciplines That Keep Leverage Safe

So how does a Kingdom builder use leverage without falling into its traps? Damon Boswell teaches four non-negotiable disciplines to every mentee before they sign a single loan. First, buy only properties that cash flow from day one at conservative assumptions. If a deal only works under the most optimistic scenario, it's not a deal — it's a gamble. Second, maintain reserves. Lady Ashley coaches every family to keep 3–6 months of operating expenses in reserve per property, so a bad month never forces a fire sale. Third, prefer fixed-rate, long-term debt that locks in your costs and protects you from rising rates. Fourth, never over-leverage — keep your overall loan-to-value conservative enough that a market downturn doesn't wipe out your equity.

Beyond the numbers, there's a discipline of character. Leverage tempts investors to grow faster than their wisdom can support. Damon Boswell has watched talented entrepreneurs over-leverage into portfolios they couldn't manage, then lose it all when life happened. The disciplined investor grows at a pace their reserves, their team, and their temperament can sustain. Lady Ashley frames it simply: 'Patience is a form of leverage too. The investor who grows wisely over twenty years often ends up wealthier than the one who grew recklessly in two.'

• Buy only properties that cash flow from day one at conservative assumptions.
• Maintain 3–6 months of operating reserves per property.
• Prefer fixed-rate, long-term debt to protect against rising interest rates.
• Keep overall loan-to-value conservative — don't over-leverage for short-term gains.
• Grow at a pace your reserves, team, and temperament can sustain.
• Stress-test every deal at higher vacancy, expense, and rate assumptions before buying.

The Kingdom Dimension: Stewardship of Borrowed Capital

For Lady Ashley and me, leverage is ultimately a stewardship conversation. The Parable of the Talents in Matthew 25 tells of servants entrusted with their master's money, expected to multiply it. The faithful servants invested and doubled what was given them; the fearful servant buried it and returned exactly what he'd received — and was rebuked for it. Damon Boswell teaches that capital — including borrowed capital — is a resource entrusted to us to be deployed, multiplied, and put to work for purposes bigger than ourselves. The goal was never to die with the most money. The goal is to be found faithful with what was placed in our hands.

When a family uses leverage to acquire a rental property that provides safe housing, creates jobs, and produces income that funds a ministry or a child's education, that borrowed capital becomes a tool for Kingdom impact. That's the heart of what Damon Boswell teaches — leverage in the hands of a Kingdom builder becomes an engine for legacy, not a trap for debt. But it requires the wisdom to use it well, the discipline to use it safely, and the character to use it for purposes beyond personal gain. Proverbs 21:5 reminds us that the plans of the diligent lead surely to abundance. Diligent, strategic leverage is part of that diligence.

Your Next Step: Leverage Wisely, Build Legacy

If you've been trying to build wealth using only your own savings, you're walking when you could be running — and the families who learn to use leverage wisely will always outpace those who don't. But leverage without wisdom is ruin, which is why Damon Boswell teaches it hand-in-hand with the metrics, the reserves, and the disciplines that keep it safe. Start by repairing your credit so you qualify for the best terms, build your reserves, learn to run the DSCR on every deal, and begin with one conservative, cash-flowing property you can manage well before you scale.

Through Express DIY Credit Repair, ASAP Capital Solutions, and the mentorship Lady Ashley Boswell and I provide together, Damon Boswell helps families position for leverage, structure their financing wisely, and build a portfolio that becomes a legacy. If you're ready to stop building wealth one dollar at a time and start using leverage the way the wealthy do — with strategy, with stewardship, and with a guide who's walked this road — we'd be honored to help. Book a call and let's build your leverage roadmap together. Because the assets God entrusted to you deserve to be multiplied, not buried — and wise leverage is one of the most powerful ways to multiply them.