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Greg O'Brien, CPA, CTS
June 26, 2023

The Ultimate Guide for Real Estate Investors: Using the Buy, Borrow, Die Strategy to Build Tax-Free Wealth

This guide explores the Buy, Borrow, Die strategy for real estate investors to build tax-free wealth. The three-pronged approach involves buying appreciating assets, borrowing against their value instead of selling, and passing on the estate to heirs with a stepped-up basis. Working with a tax strategist can optimize this strategy for tax efficiency and wealth accumulation. Anomaly CPA offers tailored tax planning, portfolio analysis, estate planning, and risk management services to help clients implement this strategy successfully. Contact them today to schedule a consultation.

The Buy, Borrow, Die Strategy: A Tax Strategist’s Secret to Building Tax-Free Wealth in Real Estate

Introduction: For years, real estate investors have sought the expertise of tax strategists to maximize wealth and minimize tax liabilities. One strategy gaining momentum is "Buy, Borrow, Die." This tax-efficient method helps investors grow their estate significantly. In this guide, we delve into how this strategy works and how employing a tax strategist can help in achieving tax-free wealth.

Understanding the Buy, Borrow, Die Strategy

Paragraph 1: The Buy, Borrow, Die strategy is a three-pronged approach. First, you "buy" or invest in appreciating assets like real estate. Second, instead of selling and incurring capital gains tax, you "borrow" against the asset’s value. Finally, upon your passing, the estate is often received by heirs at a “stepped-up” basis, bypassing capital gains tax, hence the term “die”.

The Role of a Tax Strategist

Paragraph 2: Tax strategists are invaluable when it comes to maximizing the benefits of this strategy. They analyze your investment portfolio and tailor strategies that cater to your financial objectives. By working with a tax strategist, you can ensure your investments are structured optimally for tax efficiency and wealth accumulation.

How Real Estate Investors Can Apply the Buy, Borrow, Die Strategy

Real estate is an ideal asset class for the Buy, Borrow, Die strategy due to its potential for appreciation. Here’s how you can implement this approach:

1. Purchase Property Purchase real estate that’s likely to appreciate. Focus on locations with promising growth prospects and ensure your investment is financed with the long-term in mind.

2. Leverage Equity As the property appreciates, you can borrow against the equity through loans or lines of credit. The borrowed money can be used for further investments or other purposes. Since it’s a loan, it's not considered taxable income.

3. Plan Estate Succession Engage a tax strategist to devise an estate plan. This will ensure your heirs inherit the property with a stepped-up basis, avoiding the capital gains tax that would have been incurred if the property was sold.

Advantages of Buy, Borrow, Die in Real Estate

  1. Tax Efficiency: By borrowing against your property instead of selling, you defer capital gains tax.
  2. Liquidity: Access to capital through loans provides liquidity without selling the asset.
  3. Wealth Transfer: Your heirs can inherit assets with minimal tax implications.

Potential Risks and Considerations

Paragraph 5: While the Buy, Borrow, Die strategy can be lucrative, it's essential to be cognizant of potential risks. Market fluctuations, interest rate changes, and regulatory shifts are factors that can affect your investments. Consulting a tax strategist can help in assessing these risks and ensuring your assets are well-protected.


Paragraph 6: The Buy, Borrow, Die strategy can be a powerful tool for real estate investors aiming for tax-free wealth. A tax strategist can be an invaluable ally in ensuring the approach is optimized for your financial goals. However, with Anomaly CPA by your side, you can confidently navigate through this strategy with expert guidance and support.

Partnering with Anomaly CPA for Tailored Tax Strategies

At Anomaly CPA, we specialize in providing sophisticated tax strategies for real estate investors. Our experienced tax strategists are adept at helping clients unlock the full potential of the Buy, Borrow, Die strategy. From asset acquisition to estate planning, we offer a holistic approach to wealth management.

Anomaly CPA’s Services for Real Estate Investors

1. Tax Planning: Our tax strategists will work with you to develop a comprehensive tax plan that integrates the Buy, Borrow, Die strategy seamlessly.

2. Portfolio Analysis: We analyze your existing real estate portfolio and provide insights on potential opportunities for tax savings and wealth growth.

3. Estate Planning: Estate planning is a critical aspect of the Buy, Borrow, Die strategy. We’ll help you ensure that your wealth is transferred to your heirs efficiently and in a tax-advantaged manner.

4. Risk Management: Our team at Anomaly CPA understands the risks associated with real estate investments. We’ll help you manage these risks while optimizing your portfolio for long-term success.

Client Success Stories

Anomaly CPA has assisted numerous clients in successfully implementing the Buy, Borrow, Die strategy. For instance, one of our clients, a seasoned real estate investor, was able to substantially grow his estate through strategic acquisitions and well-planned equity loans. Through our collaborative estate planning, his heirs are now well-positioned to inherit a considerable estate with minimal tax implications.

Taking the Next Steps with Anomaly CPA

To fully leverage the Buy, Borrow, Die strategy, it is crucial to partner with a seasoned tax strategist. At Anomaly CPA, we are committed to guiding our clients through this powerful wealth-building process. Our tailored strategies and expert insights ensure that your real estate investments are optimized for both wealth accumulation and tax efficiency.

Reach out to Anomaly CPA today to schedule a consultation with our tax strategists. Whether you are a seasoned real estate investor or just starting, let Anomaly CPA be your partner in building and preserving tax-free wealth through the Buy, Borrow, Die strategy to build tax-free wealth.

Take Action Using the Buy, Borrow, Die Strategy to Build Tax-Free Wealth!

The Buy, Borrow, Die strategy offers real estate investors an ingenious avenue to build tax-free wealth. However, to navigate the complexities and potential risks, it's imperative to have a knowledgeable tax strategist by your side. Anomaly CPA’s specialized services are designed to make this strategy work optimally for your specific needs. Don’t leave your wealth to chance; take control with Anomaly CPA and watch your estate flourish.


Ready to unlock the full potential of your real estate investments? Contact Anomaly CPA today and let our tax strategists guide you on the path to tax-free wealth.

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