The only way to truly accelerate your wealth creation is through adding velocity to your money. The two fundamentals to velocity are leverage and tax savings. Leverage can come many ways. The most obvious is through using other people's money. They key, though, is to continue borrowing so you never have much equity in you properties. Kim asks the following question in this regard:

Q: One of your strategies involve borrowing on the appreciation of real estate property to use as down payment on the next real estate property. Is this the same as a refinance on the original property (in which case cash flow would be reduced due to higher monthly payments). Or is a loan (or line of credit) that we can request from a bank...based on a new appraisal.

A: You could do it either way. The key is to have good enough cash flow from the property that as the property appreciates in value and you borrow out the appreciation, that your rents go up in proportion to your new debt service (payments). This is why we emphasize cash flow so much. The last thing you want to do is put yourself into a negative cash flow position. That's what got so many people into trouble over the last few years. Once you go into negative cash flow, by definition you have turned your asset into a liability.

Warmest regards,

Tom