---
id: "action-borrow-against-assets"
type: "action-item"
source_timestamps: ["00:48:29"]
tags: ["tax-strategy", "leverage"]
related: ["framework-harvesting-appreciation", "claim-real-estate-not-cashflow"]
speakers: ["Mark Moss"]
action: "Harvest wealth by taking collateralized loans against appreciated assets rather than selling them."
outcome: "Access to tax-free liquidity while maintaining ownership of compounding assets."
sources: ["markmoss"]
sourceVaultSlug: "mark-moss-debasement-trade-bitcoin-2026Jun25"
originDay: 5
---
# Borrow Against Appreciating Assets

## Action

**Harvest wealth by taking collateralized loans against appreciated assets rather than selling them.**

## Outcome

Access to tax-free liquidity while maintaining ownership of compounding assets.

## Rationale

Instead of selling assets that have appreciated due to inflation (which triggers capital gains taxes), use those assets as collateral to secure loans. This provides tax-free liquidity while allowing the underlying asset to continue compounding.

This is the operational mechanic of [[framework-harvesting-appreciation]] and the substitute for monthly cash flow in the [[claim-real-estate-not-cashflow]] thesis.

## How To Execute

### Real Estate
- Cash-out refinance.
- HELOC (home equity line of credit).
- Commercial bridge or mezzanine debt.

### Bitcoin
- Bitcoin-collateralized loans (overcollateralized to manage volatility).
- Custodial or self-custody-based lending programs.

### Equities
- Securities-based line of credit (SBLOC).
- Portfolio margin loans.

## Risks

- **Interest cost** erodes appreciation if rates rise.
- **Margin liquidation risk** especially for Bitcoin collateral during drawdowns.
- **Refinance availability** depends on stable credit conditions.
- **Tax legislation risk** — current treatment of loan proceeds as non-taxable could change.


## Related across days
- [[framework-harvesting-appreciation]]
- [[concept-infinite-return]]
- [[contrarian-debt-is-an-asset]]