How to Successfully Leverage Your Assets to Increase Your Net Worth

Building wealth isn't about owning everything outright. The wealthiest people don’t tie up all their cash paying things off—they borrow against what they already own to buy more assets. That’s how leverage works. It’s not just about avoiding taxes—it’s about accelerating growth.

As reported by The Atlantic, the "buy, borrow, die" strategy has become one of the most powerful wealth-building tools among the ultra-wealthy. Instead of selling appreciating assets and incurring capital gains, they borrow against them—tax-free—and then pass them on to heirs with a stepped-up basis, avoiding taxes altogether. This system isn’t a loophole. It’s a roadmap that’s been hiding in plain sight.

Borrowing against stocks, crypto, real estate, or any asset that typically appreciates in value is how high-net-worth individuals create liquidity, deploy capital, and build empires. And with tools like DSCR loans, crypto mortgages, and asset depletion mortgage programs, that same strategy is available to more people than ever.

Here’s how to use leverage to build wealth—and why good debt beats sitting on equity.

Why Leverage Works (And Why the Wealthy Love It)

Leverage is about turning assets into fuel. It lets you unlock capital without selling or triggering taxes. Instead of liquidating stock, selling a house, or cashing out crypto, the wealthy borrow against those holdings and use the funds to buy more income-generating assets.

The Atlantic calls this the cornerstone of modern wealth: "Buy, borrow, die" isn’t just a slogan—it’s a long-term tax strategy. Wealthy families buy appreciating assets, borrow against them tax-free, and avoid capital gains indefinitely. Upon death, the heirs inherit the assets with a stepped-up basis, essentially erasing the tax liability.

That’s how leverage helps increase your net worth without sacrificing your portfolio. And it’s not limited to brokerage accounts. Real estate is where the magic really happens.

How to Leverage Your Stock Portfolio and Bitcoin to Buy a House

If you’re holding a sizable portfolio—whether it’s in a brokerage account or a crypto wallet—you can leverage those assets to buy a house without ever selling. That means no capital gains tax, no disruption to your long-term positions, and no need to touch traditional income documentation.

Asset Depletion Mortgages

Let’s say you’ve built up $3–5 million in stocks, mutual funds, or retirement accounts—but you’re self-employed, semi-retired, or you just don’t show a high enough W-2 income to qualify for a traditional mortgage. You don’t want to sell your portfolio to buy a home in cash (and pay a massive tax bill). But you also don’t want to sit on the sidelines.

That’s where asset depletion mortgages come in. These loans allow you to qualify based on your liquid assets—not your job. Lenders calculate a usable income figure by evaluating the value of your portfolio and applying a formula that turns your assets into qualifying income. This is how wealthier buyers qualify for jumbo loans even if they’re not earning a paycheck.

If your net worth is strong but your income isn’t traditionally structured, this program is tailor-made for you. You keep your assets invested and growing, avoid selling, and still qualify for a competitive mortgage. For high-net-worth clients, it’s one of the cleanest ways to turn investment accounts into homeownership without disrupting long-term plans.

Crypto-Backed Mortgages.

Crypto investors are sitting on millions in Bitcoin, Ethereum, and other digital assets—but most banks still don’t know what to do with them. Traditional crypto lenders force you to lock up your coins or take on volatile margin loans just to get a mortgage.

At LendFriend, we’ve flipped the model. Instead of borrowing against your crypto, we treat it like any other asset and use it to qualify you through our asset-based program. Let’s say your Coinbase wallet holds $5 million in Bitcoin. Using LendFriend’s crypto asset mortgage model, that’s over $30,000 in monthly qualifying income—enough to qualify for a home loan in the $2–3 million range, even if you don’t have a job or W-2 income.

Our crypto mortgage program is built for primary residences, second homes, and even investment properties. We don’t care if your income is low or unconventional. If your wallet balance shows you’ve got the resources, we’ll find a way to help you buy a house.A nd because we’re not borrowing against the asset—just qualifying from it—your crypto stays liquid and under your control

This is real leverage—using your digital assets or stocks and retirement account to unlock real estate opportunities without giving up upside. Whether you’re long Bitcoin or Apple stock, your crypto and stocks can now qualify you for a mortgage. 

Both of these strategies allow you to put your net worth to work without disrupting your investment strategy. If you’ve been searching terms like “can I buy a house with Bitcoin” or “mortgage without income,” this is how the top 1% does it.

Using Your Real Estate Portfolio to Buy More Houses

The Refinance Loop: Buy a House, Pull Equity, Reinvest, Repeat has worked for countless real estate investors to buy new assets. You don’t have to wait until your rental properties are paid off to scale. In fact, sitting on equity is one of the most common reasons investors stall out. When you use DSCR loans and cash-out refinances strategically, your portfolio can keep working—for you.

This is how real estate portfolios grow quickly. Instead of saving $100K for every new down payment, you unlock it from your existing rentals. You can do a cash-out refinance of an existing home, accessing up to 75% of the current appraised value. Let's look at the types of cash-out refinances available.

The Rise of DSCR Loans for Real Estate Investors

Real estate investors are tapping into DSCR loans to scale faster than ever. A DSCR (Debt Service Coverage Ratio) loan qualifies you based on the property’s cash flow—not your tax returns, W-2s, or personal income. As long as the rent covers the mortgage, you're good.

That makes DSCR loans perfect for self-employed borrowers, full-time investors, and anyone using real estate to build long-term wealth. For full-time investors, DSCR is a game-changer. It eliminates the burden of proving personal income across multiple entities or side hustles, and instead focuses purely on whether your property produces enough rental income to cover the loan. That simplicity unlocks the door to rapid portfolio growth.

Most lenders offer 75–80% loan-to-value, and many allow short-term rentals, multi-units, and mixed-use properties. Full-time investors who manage several doors, operate Airbnbs, or flip mixed-use buildings find DSCR loans to be one of the only financing tools that matches their income structure and investing pace.

Google searches for “DSCR loan meaning” and “DSCR loan requirements” have exploded because more investors are realizing they don’t need traditional income to scale. They just need income-producing properties.

Conventional Cash-Out Refinances for Growing a Smaller Portfolio

You don’t need to be a full-time investor to use leverage. If you're building a portfolio of two to five homes and you have verifiable income, a traditional cash-out refinance might be a better fit than a DSCR loan.

These loans let you tap into your equity—often up to 80% loan-to-value—while still qualifying based on your personal income and the projected rental income of the property. You’ll need tax returns and a decent credit profile, but you won’t have to rely solely on property cash flow like you would with a DSCR loan.

Conventional cash-out refinances and VA cash-out loans offer significant advantages over DSCR loans: lower interest rates, no prepayment penalties, and fewer upfront costs. They’re ideal for W-2 borrowers, veterans, and small portfolio investors who want to grow efficiently without taking on non-QM rates or complex underwriting.

It’s an efficient way for smaller investors or W-2 earners to scale. You buy your first property, let it appreciate, refinance, and use the equity to buy the next one. Repeat that process a few times and suddenly you’ve got a real estate portfolio that’s compounding wealth—without having to save six figures over and over again.

The refinance model is where leverage really snowballs. Buy a property. Let it appreciate. Then refinance to pull out equity—tax-free. Use that equity as a down payment on the next one.

Timing Matters: Tax Efficiency Is Part of the Strategy

The best part? Loans don’t count as income. When you borrow against assets, you’re not triggering taxes, selling positions, or disrupting your overall plan. You’re just making your balance sheet work harder.

That’s why borrowing against stocks, real estate, and crypto is one of the smartest strategies for tax efficiency. Combine that with strategic timing—like refinancing when rates drop or when home values spike—and you’ve got a repeatable path to long-term wealth.

From crypto to conventional, the rise in search terms like “use debt to make money” and “how to leverage debt to build wealth” shows more people are embracing these playbooks.

Final Thought: Don’t Let Your Net Worth Sit Still

If you’ve worked hard to build assets, make sure those assets are working for you. Leverage isn’t about taking on risky debt—it’s about using what you have to unlock more opportunities.

Whether it’s a DSCR refinance, crypto mortgage, or asset depletion loan, the tools are out there. And with the right lender, you can tap into your net worth without compromising your future.

You don’t need a billion-dollar portfolio to borrow like the rich. You just need to start thinking like them.