We’ve all heard it before. Don’t use your own money. Use other people’s money. It sounds like another catchy and overused phrase you might hear in a motivational seminar. But here’s the thing. It is not just a cliché. It is a wealth building strategy used by nearly every successful entrepreneur and investor. And guess what? You can be on either side of that equation. You can use other people’s money, and you can be the other people whose money is used.

Let’s break it all down. Because understanding this concept could completely change how you think about money, business, and investing.

Why Use Other People’s Money (OPM)

The idea is simple. Leverage. If you only use your own cash, you are limited by your bank account. But when you leverage OPM, your growth potential explodes. Instead of buying one house, you can buy five. Instead of launching one project, you can scale up immediately. OPM allows you to go further, faster.

Two Ways to Use OPM

1. Debt

Debt is the most common way to access OPM. You borrow money and pay it back with interest. Businesses do it. Banks do it. The wealthiest people in the world do it. Debt can come in many forms.

Bank Loans: Traditional and reliable. You apply, they check your credit, and if you qualify, you get the funds. That price is your interest rate.

Private or Hard Money: Less paperwork, faster access, but higher costs. This could be from friends, family, or a group of investors like the one I use to lend and borrow money in the cannabis space where banks are rarely friendly.

Government Loans: SBA, city, or state grants and loans exist to help small businesses grow. Yes, there is paperwork, but these are often the cheapest money you will find.

Crowdsourcing: The newest method, and it is hot. Use platforms like Kickstarter, Indiegogo, or others to raise funds from hundreds or thousands of people. I have even crowdsourced a farm, the fourth largest in Colorado. One of my other companies lets people invest five thousand dollars and own a piece of real estate. No bank needed.

2. Equity

Equity means selling a portion of your company in exchange for cash. I rarely recommend this, especially for new entrepreneurs. Why? Because most do not fully understand the true value of their company, and they give away too much too early. Plus, investors do not care about your sweat equity. They care about your numbers.

Why Debt is King in Business

Despite what your financial advisor might say, debt is not bad if used right. Nearly every successful business carries debt. It allows you to scale without diluting ownership.

Think of debt like fire. It can cook your dinner or burn your house down. Too little debt, and your growth stalls. Too much, and you might crash. Find the right balance.

Smart Debt in Action

Here is an example that will blow your mind.

Two investors, both with one hundred thousand dollars, eye a house worth one hundred thousand dollars generating one thousand two hundred dollars per month in rent.

Investor A buys one house in cash and nets six hundred dollars per month after expenses.

Investor B puts twenty percent down on five homes using loans for the rest. They pay one thousand nine hundred ten dollars per month in debt service but net one thousand ninety dollars per month in profit and own five properties.

When property values rise twelve percent a year, B is winning five times harder.

Real Life Pro Tips

Do not Pay Off Low Interest Debt Early: If your mortgage is at five percent, but you can invest and make ten percent, why pay it off faster? Put your money to work.

Finance Cars Instead of Paying Cash: Especially if the interest is low. Buy a ten thousand dollar car, finance it, lease it to your business, write off the payments, and reduce your tax liability.

Buy Smart Cars: Toyota or Honda retain value. Do not buy new. Buy nearly new and let someone else take that twenty percent depreciation hit.

Use Cars as Marketing: Finance a flashy car and wrap it with your business logo. Drive it to events. People will ask. Now your car is a marketing expense and a conversation starter.

Register in Montana: No sales tax there. Look into it before buying your next vehicle.

Be the Bank

You can also be on the other side of the equation. Once you make money, do not let it sit. Lend it out. Invest it. Make your money work for you. Once you earn a dollar, never work for that same dollar again. It should be working for you twenty four seven.

This is the true magic of financial independence. When you stop trading time for money and start trading money for more money.

Final Word: Millionaires Are Made by Mastering OPM

Using other people’s money is not shady. It is smart. It is how you go from a hustler to a heavyweight. It is how you scale businesses, acquire assets, and build wealth.

You do not need to be rich to start. You just need to understand how to move money, manage risk, and think like an investor.

So be bold. Be smart. And let money other people’s money work for you.

Want help setting up your LLC or understanding how to start? Message me or post in the group. Let’s get you set up to win.

Millionaires Are Made

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