I’ve been sitting on this blog for a few weeks. With everything going on in the economy, I wasn’t sure if the timing was right. But then a respected investor and attorney in one of our local real estate investment groups posted something that echoed exactly what I’d been thinking: most people were never taught the truth about debt.
Good Debt vs. Bad Debt
Bad debt? That’s the kind that drains your wallet, credit cards used for fast food, payday loans, financing things that lose value the second you walk out of the store.
Good debt? That’s a strategic tool.
That’s leverage.
It’s using other people’s money to invest in something that generates income, like a cash-flowing rental property. It’s structuring debt to build equity and buy time.
This is one of the key mindset shifts we walk through with our investors at RPM Regions. Our role isn’t just to manage your property. It’s to help you move with strategy and build something real.
The Four Pillars of Real Estate Investment
Used the right way, debt can unlock all four:
- Cash Flow
- Appreciation
- Depreciation
- Amortization
Debt gets your foot in the door on appreciating assets.
It gives you access to tax benefits through depreciation.
It builds wealth through monthly principal paydown via amortization.
And when the numbers are right, it cash flows.
A Quick Example
Let’s say you buy a duplex with a smart loan. One unit pays the mortgage, the other generates cash flow. Over time, the property appreciates. You depreciate the asset come tax season. And each month, that loan gets paid down.
That’s good debt in motion.
Common Mistakes We See
- Paying off low-interest mortgages early instead of reinvesting
- Avoiding leverage completely out of fear
- Treating rental properties like side hustles instead of real investments
These are mindset traps that can keep you from scaling wealth.
Here’s the Real Takeaway
Avoiding debt out of fear is not the same as being smart about it.
The wealthy don’t run from debt.
They master it.
They use it to acquire assets and scale legacy.
You don’t need to have it all figured out. You just need the right partner.
At RPM Regions, we help you evaluate every move through the lens of strategy, performance, and long-term impact.
Debt will either keep you stuck, or set you free. The difference is strategy. Choose wisely.
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