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The word "debt" often carries a negative connotation, but as you know, not all debt is created equal. We're excited to share that when used strategically, debt can be one of the most powerful tools for building long-term wealth. The key is to borrow smartly to invest in assets that appreciate in value over time.
We're thrilled to explore the concept of using leverage to acquire appreciating assets and show you how this advanced strategy can accelerate your path to financial freedom.
Good Debt vs. Bad Debt: A Quick Refresher
You're likely familiar with the difference between good and bad debt. Bad debt is typically used to finance depreciating assets—things that lose value, like a new car. Good debt, on the other hand, is used to purchase appreciating assets—investments with the potential to increase in value, like real estate or a diversified stock portfolio.
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We think of it this way: bad debt costs you money, while good debt is a strategic tool to make you money.
The Power of Strategic Leverage
When you borrow to invest in an appreciating asset, you're using leverage. You're controlling a large asset with a relatively small amount of your own capital. We're confident that this can dramatically amplify your returns.
Here are the exciting benefits:
Accelerated Wealth Creation: Leverage allows you to grow your asset base much faster than if you were only using your own cash. For example, you can acquire a $300,000 rental property with a $60,000 down payment, allowing you to benefit from the appreciation of the entire property value.
Potential for Positive Cash Flow: In real estate, rental income can cover your mortgage and other expenses, potentially generating positive cash flow each month. We see this as an amazing way for your investment to pay for itself while it appreciates in value.
Inflation Works in Your Favor: With a fixed-rate mortgage, your payment remains constant. As inflation causes rents and property values to rise, your debt becomes relatively cheaper, and your returns can increase.
Investors see ANOTHER return on Masterworks (!!!)
That’s 3 sales this quarter. 26 sales total.
And the performance?
14.6%, 17.6%, and 17.8% → The three most representative annualized net returns.
(See all 26 at Masterworks.com)
Masterworks is the biggest platform for investing in an asset class that hasn’t moved in lockstep with the S&P 500 since ‘95.
In fact, the market segment they target outpaced the S&P overall in that time frame.*
Not private equity or real estate… It’s contemporary and post war art. Crazy, right?
Masterworks investors are typically high net worth, but the point is that you don’t need to be a capital-B BILLIONAIRE to invest in high-caliber art anymore.
Banksy. Basquiat. Picasso and more.
80+ of the world’s most attractive artists have been featured.
511+ artworks offered
$67.5mm paid out as of December 2025
$2.3mm+ average offering size
Looking to update your investment portfolio before 2026?
*Masterworks data. Investing involves risk. Past performance not indicative of future returns. Reg A disclosures at masterworks.com/cd
How to Approach This Strategy Wisely
Borrowing to invest involves risk, and it's a strategy that requires careful planning. We believe that a smart, educated approach is essential for your success.
Here's some actionable advice to help you get started:
Invest in What You Understand: We encourage you to only use leverage for assets you've thoroughly researched and understand. Whether it's real estate in a specific market or a diversified portfolio of stocks, knowledge is your best tool for risk management.
Maintain a Cash Cushion: When using leverage, it's crucial to have cash reserves. An emergency fund can help you cover unexpected expenses (like a vacancy or a major repair on a rental property) without being forced to liquidate your investment at an inopportune time.
Focus on Long-Term Growth: This isn't a get-rich-quick scheme. The most successful investors who use leverage have a long-term perspective. They're prepared to hold their assets through market cycles.
Using debt to invest can be a powerful wealth-building engine. By understanding the principles and approaching it with a clear strategy, you can make leverage work for you on your journey to financial freedom.
If you're ready to learn more about how to use smart debt to build your portfolio, we encourage you to explore your options and take that exciting next step.
Quick Poll (Your Turn!)
Before you go, I’d love to hear from you!
Which financial fear do you relate to the most?
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