In this episode of The Wisdom, Lifestyle, Money Show, host Scott Dillingham explores the power of calculated leverage to build wealth, contrasting it with traditional leverage by emphasizing smart, data-driven decisions. He stresses the importance of a growth mindset for overcoming fear in investing, relationships, and personal development—drawing from books like Think and Grow Rich to illustrate how visualizing success attracts opportunities. Scott breaks down good debt (e.g., borrowing to acquire income-generating assets like rental properties or dividend stocks) versus bad debt (e.g., financing a car without offsetting income), using real-world examples to show how leveraging can create positive cash flow without out-of-pocket costs.
He shares a personal case: borrowing $200,000 at 2.5% interest from a rental property to invest in a high-performing asset (details in his investing club), yielding an average annual return of 26.62% since 1999, with a total return of 585%. This highlights tax deductions on investment-related interest under CRA rules and the long-term upward trend of markets despite downturns like the dot-com crash, 2008 recession, and COVID. Scott warns against emotional reactions to market volatility, advocating for historical analysis and professional advice. The episode ties mindset, leverage forms (time, mind, money), and strategies together to help listeners grow financially. Ideal for Canadian investors, aspiring entrepreneurs, and those seeking mortgage advice for real estate or stock investing in Ontario.
Host Bio
Scott Dillingham is the founder and CEO of LendCity Mortgages, a leading online mortgage brokerage helping real estate investors secure financing across Canada. As host of The Wisdom, Lifestyle, Money Show, he shares insights from his sales-to-entrepreneur journey, including building a portfolio of 8 properties with 12 units. Based in Windsor, Ontario, Scott focuses on creative lending, personal growth, and calculated strategies to achieve financial independence.
Scott Dillingham is the founder and CEO of LendCity Mortgages, a leading online mortgage brokerage helping real estate investors secure financing across Canada. As host of The Wisdom, Lifestyle, Money Show, he shares insights from his sales-to-entrepreneur journey, including building a portfolio of 8 properties with 12 units. Based in Windsor, Ontario, Scott focuses on creative lending, personal growth, and calculated strategies to achieve financial independence.
Key Takeaways
- Adopt a growth mindset to eliminate fear in investing and life—visualize success as if it's already achieved, as per Think and Grow Rich, to attract opportunities.
- Understand leverage beyond finances: Use it in daily scenarios like trading chores for rewards, or leveraging your mind for personal growth and goal attainment.
- Differentiate good debt (income-producing, e.g., borrowing for a rental property that covers a car payment) from bad debt (pure liabilities, e.g., financing luxuries without offsets).
- Employ calculated leverage: Analyze expenses and returns before borrowing, like Scott's $200,000 loan at 2.5% for an investment averaging 26.62% annual returns since 1999.
- Benefit from CRA tax deductions on interest when borrowing for qualifying investments—consult an accountant to maximize savings.
- Ignore short-term market dips (e.g., dot-com, 2008, COVID); focus on long-term trends where investments generally rise, outperforming 90% of professional stock pickers.
- Avoid bank-pushed products like GICs that benefit institutions; prioritize investor-friendly options for higher personal gains.
- Join communities like Scott's club for specific investment details, charts, and expert advice on beating market averages.
- (00:06) - Introduction to Calculated Leverage
- (03:14) - Mindset Matters in Investing
- (05:21) - Understanding Good Debt vs. Bad Debt
- (08:14) - Examples of Using Debt Wisely
- (09:57) - Real-Life Investment Strategies
- (14:57) - The Power of Calculated Leverage
- (15:55) - Upcoming Topics and Conclusion
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