How To Pay Off Your Mortgage In 5-7 Years | How To Pay Off Your Mortgage Very Fast Using Velocity Banking

How To Pay Off Your Mortgage In 5-7 Years | How To Pay Off Your Mortgage Very Fast Using Velocity Banking #howtopayoffyourmortgagein5years #howtopayoffyourmortgagefast #velocitybanking

Would you like to pay off all of your
debts and achieve financial independence
through business ownership and real
estate investing so you can leave a
legacy for your family.

Today I’m gonna show you how to go from
living paycheck to paycheck to becoming
completely debt-free and owning seven
rental properties paid off free and
clear in a decade so you can achieve
financial independence and build that
legacy for your family now I’m gonna do
this by sharing with you the number one
millionaire money secret that wealthy
families have been using for years to
pay off their debts quickly create
massive leverage and build seven-figure
real estate portfolios in record time.

Now the unfortunate truth out there is
that most people are never taught
anything about money and most people
only learn to work for money instead of
learning how to have their money work
for them I’m also gonna share with you
the number one wealthy mindset shift
that you need to make if you truly want
to take control of your finances and
navigate this rigged system and yes the
system is rigged you know do you really
think it’s by chance that most people
out there struggle with debt causing
them to pay huge amounts of interest
right over to the big banks and everyday
employees you know get raked over the
coals in w-2 taxes and most people work
their entire life just to retire broke
with nothing left to pass down most
people out there are caught in a vicious
financial cycle I’ll show you how to
break that cycle so you can eliminate
your debt and get ahead financially now
if you’re on the line and you have a
mortgage student loans or any debts that
require you to pay interest you’re gonna
want to stick around all the way until
the end of this webinar I’m gonna show
you today how you can legally morally
and ethically pay off all of your debt
even a 30-year mortgage in a fraction of
the time without refinancing or sending
in any extra payments and this will
literally save you tens even hundreds of
thousands of dollars in interest the
truth is is that most people make enough
money to become financially free they
just don’t know how to use their money
right hi I’m Mike Adams and in the next
few minutes I’m gonna show you how our
real estate investment groups proven
system
allows our students to pay off all of
their debt quickly and create massive
leverage all while they learn to invest
in real estate and acquire hands off
high cash flow investment properties
like clockwork and how you can do it –
now imagine what it would be like to be
completely debt-free to become
financially independent and truly have
the ability to fire your boss and start
living life on your terms you know
that’s what’s possible when you have the
right set of systems the right
frameworks to follow and the right team
of people around you to support you and
help you with implementation now the top
four categories of people that this will
help the most you know number one people
with a mortgage you know other loans or
debts that they would like to pay off
much faster number two those that are
looking to get out of their nine-to-five
job and build a successful business of
their own number three individuals and
business owners that want to maximize
their current income and create a cash
flow retirement and number four new and
experienced real estate investors that
are looking for the best ways to create
maximum levered so if you fit into one
of these four categories then you’re
going to love when I’m gonna share with
you today on this webinar so let’s dive
right in to the number one millionaire
money secret that wealthy families have
been using for years to pay off debt
quickly create massive leverage and
build seven-figure real estate
portfolios in record time now the secret
is actually a strategy that we call
velocity banking so what is velocity
banking well for starters it’s a more
financially efficient way for you to use
your current income to maximize your
cash flow create leverage and help you
pay off your debts in a fraction of the
time and this is gonna be using tools
available at the bank that anyone can
use you just need to know how to use
these tools properly and unfortunately
this kind of stuff isn’t taught in most
schools you know what do we learn in
school we learn about the Pythagoras
theorem and sure that might be useful to
someone out there in some way but we
never learn how to do simple basic
finance something as simple as balancing
a checkbook is not taught in schools and
there is a reason
for this you know critical point to know
is that everything that you know about
the bank you learned from the bank
through their advertisements through
their marketing materials and there is a
certain way that banks would like for
you to think and act and always remember
that they are doing this to increase
their profits banks are in business to
make money so here’s the traditional
banking model that we are taught and for
the rest of this illustration today
we’re gonna be using the numbers of the
average American household in this
country so we’re gonna use the numbers
of the average American household here
and what we know about the average
American household is the average
household brings in about sixty thousand
dollars per year so divide that by
twelve months that gives us about five
thousand dollars worth of income coming
into the household so five thousand
going in every single month to that
household and what do people do when
they get their check well of course you
know they go right to the bank you know
you got to cash that check so you know
you go to the bank and you deposit your
five thousand dollars and right away you
start breaking up that pie right you
know you’ve got a sour chopping it up
you know you got a twelve hundred dollar
mortgage payment here you have a six
hundred dollar credit card payment you
have a six hundred dollar car payment
here you know we have twelve hundred
dollars in here for your lifestyle and
obviously that numbers gonna be
different for different individuals and
as well we got that leaves us with
fourteen hundred dollars here of going
into some type of savings vehicle you
know whether that’s your 401 K at your
job maybe you have an IRA on the side or
even just being left in whatever’s left
over being left in your savings account
right there at the bank
so your money goes into the bank and you
start chopping up that pie you’re
sending out checks in different
different ways directly from your bank
account and then holding on to whatever
is left in some type of savings vehicle
that’s the average American household
and breaking this down a little bit
further you know we have this twelve
hundred other mortgage payment that
means you have a mortgage so we have a
loan on this property and this
particular property has a loan of
$200,000 there’s a two hundred thousand
dollar mortgage here and also we have
that at a six percent interest rate we
also have a car payment here so that’s
another low
one for the car with a $600 payment what
we also see here is that the average
American also here has has a credit card
right so they also have this line of
credit and this particular line of
credit has a fifteen thousand dollar
limit and we’ve racked up a little debt
here okay the average American also
racked up about twelve thousand dollars
worth of debt here so we got about a six
hundred dollar per month payment and
this particular line of credit is at
twenty one percent which is the average
credit card rate in the country twenty
one percent now what we notice here is
he got five thousand dollars worth of
income going into the household and we
essentially have five thousand dollars
worth of expenses so five thousand
dollars going out you know to the
mortgage to the car to the credit card
to the lifestyle and then whatever’s
going into the savings so five thousand
dollars is going in and five thousand
dollars is going out let’s take this a
step further now that we see that
there’s loans and lines here you know
what’s the difference you know what is
the difference between a line and a loan
and most people truly don’t know the
answer you know for starters these are
the two primary products that banks
offer to consumers so what is a loan
straightforward a loan is a one-way
lending instrument typically alone is
gonna have a fixed monthly payment and
each payment consists of principal and
interest and these loans have what we
call amortized interest and and we’re
gonna get back to that in a minute
you know this this product or the loan
this is the product of the banks most
readily offer to people and and that’s
why most of you guys you’ll probably
have one of these types of loans whether
it’s a student loan a car loan or even a
mortgage loan the general public is very
familiar with loans now the biggest
problem with loans is that your
principal is not liquid you know when
you send in that mortgage payment the
principal portion of that payment is no
longer liquid once it goes to the bank
you no longer have access to your money
and why is that because of course you
sent it to the bank
the banks have it and now they get to
leverage your money to make more money
and and so so how do they leverage it
yes and a critical point here is that
each time you pay the bank right for
your house payment or Depaz
money into your savings that money gets
turned by ten and borrowed out again to
somebody else and loaned to make more
money so that’s kind of a jingle let me
let me break this down a different way
yeah let me give you a critical example
here you know when you send in your
twelve hundred dollar mortgage payment
to the bank the bank has the ability to
go to the Federal Reserve and get a loan
for twelve thousand dollars ten times
that amount and they pay a fraction of a
point in interest to the Federal Reserve
on that loan and now you know as a
standard they must keep ten percent so
they must keep twelve hundred dollars of
that loan at the bank on their ledger on
the books but now essentially they’ve
created and they can now lend out that
other ten thousand eight hundred dollars
to somebody else at a much higher
interest rate and make money and where
did that ten thousand eight hundred
dollars come from it came from thin air
it truly it doesn’t exist it’s merely a
number on the banks ledger this number
though what it does is that it puts more
money out there in circulation and the
banks and the Federal Reserve are making
money charging us interest on nothing
but numbers you know this is why banks
always have the nicest buildings in town
you know they have everybody’s money and
they get all the leverage now why is
this a problem right why am I so fired
up about this because it’s your money
it’s your money and if anybody’s gonna
be leveraging your money shouldn’t it be
you now is it possible for you to create
leverage with your money like the banks
yes okay the answer is yes we just can’t
do it with loans so what is the line of
credit you see a line of credit is a
two-way lending instrument okay that
means it’s revolving and there’s only
gonna be a payment if there is a balance
on that line of credit so if there’s no
balance there is no payment and when you
do have a balance you do send in that
payment the payment actually reduces the
principal the whole payment reduces the
principal and then interest is going to
be charged at the end of the billing
cycle and added to that balance and with
the line of credit we get simple
interest and again we’re gonna break
this down in a minute now over the years
you know we’re all
that lines of credit are bad and you
just have to remember and understand one
thing about lines of credit a line of
credit is a tool and just like any tool
just like a hammer or nails you need to
know how to use your tools correctly and
most people use lines of credit for
liabilities they get a line of credit
and they go out there and they buy big
screen TVs and other things that they
truly don’t need and a critical point to
understand lines of credit are for
emergencies and for assets that’s it and
the great things about lines of credit
is that the principle stays liquid okay
you have access to your money when you
send in your money to the to the credit
card it hits that principal it knocks
down the balance and it creates
available credit okay so you still have
access to your money in the form of a
leverage in that line of credit and this
gives you the ability to leverage your
money instead of handing all that
leverage and giving it right to the big
banks you know the bottom line guys is
that if you’re not gonna leverage your
money for financial gain the big banks
definitely will so now that we know that
loans are a one-way lending instrument
they are amortized interest and that
principle again that principle is not
liquid you know when you send in that
12-under dollar payment you know the
principal portion of that payment you
know even though it knocked down the
mortgage a little bit you can’t take
your mortgage down to the grocery store
and swipe it to buy your grocery
principal is not liquid you know the
great thing again about the lines of
credit is number one they are simple
interest
they are revolving it’s a two-way
lending instrument and the principal
stays liquid you have access to that
capital in the form of available credit
or leverage in the line of credit
now we’re taught out there to think
about interest rates so let’s take one
more step further stay with me
let’s let’s let’s look at this interest
rate here and on our simple interest
line of credit we have a 21% interest
rate and on our our amortized loan we
have a 6% interest rate so let me ask
you this would you rather pay a 6%
interest rate or a 21% interest rate and
you know most people are gonna dive
right on the six
simply because the number is smaller but
does that mean that you actually pay
less in interest a critical point to
make here lines versus loans is that
liens have simple interest loans have
amortized interest so what is the
difference there between simple interest
and amortized interest because most
people have no clue the difference and
for starters they are two completely
different systems used to calculate
interest think about the difference here
between Fahrenheit and Celsius right
both of those are used to calculate
temperature right what they’re different
did you know that one degrees Celsius is
actually hotter than 32 degrees
Fahrenheit so even though the number is
smaller the 1:1 degrees Celsius is
actually hotter than 32 degrees
Fahrenheit understand this guy’s
amortized interest is much much more
expensive it is definitely hotter than
simple interest let me show you and
let’s take a deep look at this mortgage
so let’s break this mortgage on and when
you got this mortgage they probably gave
you an amortization table it looks
something like this where it shows you
that part of your payment is gonna be
interest and part of your payment’s
gonna be principal and then over the
course of 30 years so at the beginning
in the mortgage that very first payment
write that first $1,200 payment $1,000
of that payment is going to be interest
and then $200 of that payment is
actually going to affect the principal
and knock down the principal and then at
the end of 30 years it be the opposite
so when you make that three hundred and
sixtieth payment you know 200 of it
would be interest and one 1000 would go
to principal so it evens out over 30
years it’s amortized now the problem
with this okay is that most people never
pay off their mortgage most people never
make every single payment for 30 years
why because most people refinance their
mortgage every five to seven years okay
and what this does is is it keeps you
here right in the front side of the loan
where the highest percentage of your
payment is going directly to
Bank in interest most people stay in
this high interest owned of their
mortgage for a very very long time and
it’s very very expensive over the first
48 months of this mortgage you’re going
to literally send in fifty seven
thousand dollars worth of payments on
this mortgage and you are only gonna
reduce the principal by about thirteen
thousand dollars and you’re gonna pay
about forty four thousand dollars worth
of interest directly to the banks and if
you were one of the very few who
actually did pay this mortgage off over
thirty years you would actually end up
paying over two hundred and thirty one
thousand dollars in interest right to
the big banks on this mortgage you would
actually end up paying over four hundred
and thirty one thousand dollars for this
two hundred thousand dollar property is
this accurate right some of you guys
might be thinking well Mike that sounds
crazy all the banks is is that even
legal for them to charge people that
kind of interest you know let me show
you let me go ahead and share my screen
real quick and I want to show you an
amortization schedule okay so here we
are right here on Google and all I did
here guys that went to Google you can
double check my numbers okay I went to
Google I typed in mortgage amortization
calculator I’m using this one right here
I thought it was the easiest to use
okay so mortgage calculator org and it’s
gonna bring you to this page right here
and you can go ahead and you can punch
in my numbers and double check this for
yourself so let’s look at this mortgage
so we got a two hundred thousand dollar
mortgage here and we are at six percent
interest rate okay and we can click
calculate here and it shows us the
monthly payment right so it shows us
this eleven ninety nine and ten cents
it’s obviously in our example today I’m
rounding this to twelve hundred dollars
to make it easy and simple let’s go
ahead and click create amortization
schedule here and look at what happens
okay so this shows you what this
mortgage actually looks like it shows
you right here with payment number one
you’re gonna send in about twelve
hundred dollars worth of a payment and
just under two hundred dollars is gonna
affect the principal and one thousand
dollars is gonna go directly to interest
rate to the big banks and when you do
the math I mean twelve hundred dollars
by twelve months that’s fourteen
2,400 dollars by year one you’re gonna
send in fourteen thousand four hundred
dollars and you’re gonna knock down the
principal here by twenty four fifty six
and eleven thousand nine thirty three is
gonna go directly to the banks in
interest out of use out of the fourteen
for that you sent in eleven nine in the
first year is going directly to interest
and you can see right here after the
first year what your principal balance
is you can see it only went down by a
couple of grand okay so we can fast
forward up to your four here you can see
okay let’s keep going out your two you
know same thing fourteen four you’re
sending in you’re getting twenty six
hundred bucks worth of principal
reduction here’s another eleven seven
worth of interest your three okay
there’s another eleven six worth of
interest your four here’s another eleven
four worth of interest and you can see
after year for our principal balance is
about a hundred eighty nine thousand
dollars so we actually got about about
$11,000 worth of principal reductions I
was actually pretty generous in our
example but the bottom line here is you
can see that this amortized interest is
incredibly expensive so let’s go back to
the PowerPoint here and finish up so now
that you know the difference between a
line and a loan and how brutal amortized
interest really is let’s take the next
step here and share with you the number
one wealthy mindset shift that you need
to make if you truly want to take
control of your finances and navigate
this rigged system so who rigged the
system you ask well it’s your good
friends over at the big banks
corporations and the government of
course and and why right why would they
do this why would they ring the system
well to make money of course the
unfortunate truth here guys is that the
government and the big banks have been
grooming you since you were a kid to get
used to giving them your money think
about this you know since you were a kid
alright every teacher every adult around
you said that you know if you if you
want to be something in this world you
need to go to school get good grades get
a degree so you can get a good job and
they told you things like the only two
things in life that are certain are
death and taxes right and you know this
one here
don’t take risks you know play it safe
you know don’t spend it all in one place
kid you hear things like that and what
we call this language is old-school
mentality okay and what this language
does over time is it really starts to
force you down a certain path that you
think that you need to live your life
and we begin to develop what we call the
employee mindset now what is the problem
with the employee mindset well the the
problem is that we only learn how to
exchange time for money we only learn
how to live on a cash system we only
learn how to use cash as currency and we
relentlessly focus on accumulating cash
you end up spending your life chasing a
dollar and the critical problem with the
employee mindset here is that there is
no leverage the minute that you stop
exchanging hours for dollars or
accumulating cash the dollars are gonna
stop coming in now do wealthy folks want
to accumulate cash yes okay of course
they do right but that is not their
focus to the wealthy cash accumulation
is a byproduct of the two things that
wealthy folks focus on creating
relentlessly which is cash flow and
leverage so what is cash flow cash flow
is your income minus all of your
expenses what’s left over that is your
cash flow it’s the money that you have
left over every month after all of your
bills are paid and out there you know in
the corporate world we’re taught to
focus on what we make our annual salary
or our hourly pay not so much about how
much money we actually keep you know
this is the mindset shift that we really
need to make here you see wealthy people
think completely different they have
what we call a wealthy mindset you see
wealthy mindset individuals are not
interested in exchanging time for money
wealthy mindset individuals are not
interested in using cash as currency
they know their cash can be used in a
better way see the wealthy used cash as
velocity to pay off debts reduce
interest payments
and to create additional leverage and
they create leverage in lines of credit
they then use that leverage as currency
to pay for their lifestyle their monthly
expenses and since the lines are simple
interest the wealthy leverage those
lines to pay out their expensive
amortized loans much much quicker
you see wealthy mindset individuals are
not interested in sending extra cash to
loans they know that they’re giving away
their cash flow and they and they lose
all their leverage wealthy mindset
individuals are not interested in using
savings accounts at the bank because
they know that they’re just giving the
leverage right to the bank and savings
accounts earn very very little interest
and we see what banks are able to do
charging people in amortized interest on
loans so they’re getting all the
leverage so what do the wealthy do and
what would they do with this average
American household scenario and now that
you know the difference between a line
and a loan and the importance of cash
flow and the power of leverage let me
show you how this powerful velocity
banking strategy works so here we are
with the average American household here
and now remember the two things that
wealthy folks focus on creating
relentlessly our cash flow and leverage
so the first thing that we need to do
here is they’re gonna look at this and
they’re gonna want to apply their
wealthy mindset where they’re using cash
as velocity and then using leverage as
currency you see we need to maximize the
cash flow here so what a wealthy person
would do in this scenario is they would
take this $5,000 worth of total income
going into the household and they would
say okay where could we actually create
some leverage they already know that if
they leave it in the savings account
they’re losing all the leverage if they
send the additional money directly from
the from your bank account directly to
the loan you’re losing all of that
leverage you’re giving away all of your
cash flow the only place in this
scenario that we can create some
leverage is inside of that line of
credit so a wealthy individuals gonna
take this $5,000 worth of income and
they’re gonna send it all directly to
the line
and watch and and and stick with me
watch how this changes our numbers of
what let’s see how this plays out you
know here’s what happens when you send
the whole five thousand dollars to the
line of credit here’s what this does it
actually allows a minh right we no
longer have to account for that payment
because we’re sending all five thousand
dollars directly to the line so that
actually frees up that’s six hundred our
payment and creates six hundred dollars
that we can go ahead and add to your
cash flow also since we’re no longer
gonna be using those savings accounts
that are earning us no interest at all
and seeing how much money we’re actually
paying out an interest to the to the
amortized loans it’s it’s far more
important to get rid of those loans
before you’re leaving money in this
particular savings account
right there at the bank so we’re gonna
eliminate doing that and bottom line is
this do you need to have an emergency
fund yes okay so but wealthy folks use
different vehicles that are that are
very liquid like a cash value life
insurance policy to store their money
versus leaving it in a basic savings
account at the bank okay so no there’s
other tools out there so either way for
now the average American household we
are gonna eliminate that money just
sitting in the savings account and we’re
gonna add that directly to our cash flow
so now we have two thousand dollars with
the cash flow here and what we have left
over is we have three thousand dollars
worth of expenses we have the twelve
under dollar mortgage which we can pay
using the line of credit we have the six
hundred our car payment and then you
also have your twelve hundred dollars
for your lifestyle so we got five
thousand dollars going in and three
thousand dollars going out in expenses
now some of you guys might be thinking
about Mike if I send all my money to the
line of credit how am I gonna pay my
other bills now a critical point to make
here is that you need to think of your
line of credit as your new checkbook
again remember the line of credit is
revolving we’re gonna use that as your
new checkbook you’re gonna pay all of
your expenses using the line instead of
sending checks from your bank account so
let’s see what happens when we play this
velocity banking strategy out on this
line of credit so let’s get it up here
and we got our $15,000
credit and we’re starting off with a
$13,000 balance on this line of credit
so month one is gonna come in your
$5,000 what the income is gonna come
into the household and we’re gonna send
all 5,000 directly to the line of credit
and we’re gonna knock that balance
immediately down from 13,000 down to
8,000 and then we’re gonna use the line
to go ahead and pay your three thousand
dollars worth of expenses so it’s gonna
go back up by three thousand to eleven
thousand dollar balance so what you
notice here this would be month one and
we see that the balance here went down
by our cash flow number which is two
thousand dollars
so now month two five thousand dollars
coming in bringing the balance down to
six three thousand now we’re gonna back
up to nine we got five thousand dollars
going in three thousand out in expenses
five thousand dollars going in three
thousand l5000 in three thousand out
five thousand in three thousand out five
thousand in and boom so and it’s really
simple math here you know with a
thirteen thousand are balanced with this
going down every month by our cash flow
going down by two thousand every month
we can see that it’s good we’re gonna
pay off this balance in about six and a
half months so it took us six and a half
months to pay down the simple interest
line of credit just leveraging a
strategy just leveraging a financial
strategy in a more efficient way to use
your money it went down by the cash flow
every single month and you pay that off
within six and a half months so now that
the line of credit is paid off what’s
next
you see remember that expensive
amortized mortgage that you have you
know let’s go ahead and take a chunk of
that amortize debt from the mortgage and
move it over to the simple interest line
of credit
essentially transforming the interest
that you are paying on that debt making
it much easier for you to pay off so
here’s what we’re gonna do with this
fifteen thousand dollar line of credit
with a zero balance is we’re gonna go
ahead we’re gonna get a balance transfer
check and you’re gonna write a check for
$13,000 principal only and send it
directly to your mortgage company so
we’re essentially transforming $13,000
with a principal because the great thing
about you know
a cool thing about loans is that when
you actually prepay the principal you
don’t have to pay the interest so we’re
gonna use this line send over a 13,000
our balance transfer check and transfer
13 grand from that principal over to
this line of credit and then we are
immediately gonna start using the
velocity banking strategy where you put
your $5,000 into that line of credit and
every month pay your expenses three
thousand out five thousand in three
thousand out five thousand in three
thousand out and again it’s the same
numbers here so we’re looking at another
13 thousand dollar balance so if we know
that it’s gonna take us about six and a
half months to pay down this line of
credit simply using the velocity banking
strategy it’s going down by our cash
flow each and every month and this is
actually reducing the principal mortgage
balance by thirteen thousand dollars
okay and one thing I want to bring to
your attention is this now yes on a line
of credit with 21% interest yes there’s
gonna be some interest charges here and
and and you can do the math yourself
okay you can you can run the numbers on
that one yourself but with a thirty
thousand dollar balance over six point
five months you’re looking at about
thirteen hundred dollars worth of
interest okay and obviously and I’m
shooting that high because the balance
is actually going down every single
month here but we’re gonna call it
thirteen hundred dollars worth of
interest to get thirteen thousand
dollars with the principal reduction on
that mortgage and to bring this into
perspective you know when we were
sending the money to the amortized loan
over forty eight months four years
okay you sent in fifty seven thousand
dollars with the payments to reduce the
principal by thirteen thousand dollars
and you actually paid forty four
thousand dollars in interest to do that
by taking that same thirteen dollars a
thousand dollars in principles and and
transforming it over to a simple
interest line of credit you were able to
pay down that same balance in six and a
half months and you only paid about
thirteen hundred dollars worth of
interest this literally can save you
over forty three thousand dollars about
forty three thousand dollars in interest
over the
four years of this mortgage that would
normally just go right over to the big
bank and over the course of four years
guys that’s $11,000 per year added back
to your family’s budget instead of just
giving it to the bank
simply put guys by rinsing and repeating
this process every six months moving
13,000 transferring it over from
amortized loan to the simple interest
line you will pay off this 30-year
mortgage the car and the credit card
will be gone to within about six years
and this is without refinancing and
without increasing your income yeah we
left everything the same simply using
the velocity banking strategy and this
is gonna allow you to finally win the
banking game and start getting ahead
financially you know love this quote by
Bob Hope he says that the bank is a
place that will lend you money if you
can prove that you don’t need it and
that is so true and in our scenario now
you know the great thing about not
having a mortgage is that you no longer
have a mortgage payment so we can go
ahead and eliminate that $1,200 and add
that to our cash flow and it’s been
about six years so the vehicle payment
was made every single month leveraging
the line of credit so the car is now
paid off as well we can add that six
hundred ollars to our cash flow and this
brings us up to thirty-eight hundred
dollars worth of cash flow and the only
expenses that we have left here is your
lifestyle and as you can see we have
left that at $1,200 the whole time and
we have not changed that you also have a
property you have your own home paid off
free and clear so you got a two hundred
thousand plus dollar asset that could be
leveraged we have equity there and you
also have this line of credit with a
zero balance and the average American
household now has perfect credit okay
when you start behaving in this way
banks reward this type of behavior okay
and they normally reward it in
increasing lines of credit raising the
balance and guarantee you this if you’re
leaving money in your savings account I
guarantee the bank is never gonna call
you up and say hey you’re a really good
saver you know here’s some additional
lines of credit they don’t reward that
kind of behavior so in this scenario
it’s easy to see that the bank could
increase the limit on this credit card
by by a simple ten thousand dollars so
in
scenario we’re gonna say that the bank
is giving you an additional ten thousand
dollars on this line of credit which is
an additional ten thousand dollars with
AB leverage so here we are with our
$25,000 line of credit and we have a
zero balance on this card so for the
average American household after six
years guys life is good you know they’re
in a pretty good spot now some people
might be content to stop right here with
being debt-free but we still have a big
problem and the problem is that you are
still exchanging time for money you know
what if your hours get reduced your
bonuses get cut you get laid off or even
terminated you know what we know about
corporate America is that at any moment
for any reason the boss could let you go
so what would the wealthy do about this
situation now remember lines of credit
are for emergencies and for assets and
for our average American household they
don’t have any emergencies right now so
let’s use the leverage in the line of
credit to accumulate additional cash
flow producing assets at the beginning
of this webinar said that I would show
you how you could go from living
paycheck-to-paycheck
to becoming completely debt-free and
owning seven rental properties paid off
free and clear in a decade so you can
achieve financial independence and build
a legacy for your family so let’s
leverage this line of credit and use the
velocity banking strategy to build
financial independence okay so here we
are with our twenty five thousand dollar
line of credit and what we’re gonna do
here to start building and achieving
financial independence what we’re gonna
do is we’re gonna take this line of
credit we’re gonna write a check on this
line for $20,000 for a down payment on
one of these we’re gonna go ahead and
we’re gonna buy a single family rental
property and this particular property
has a market value of $120,000 so you
put down 20 grand on that and we have a
leftover mortgage of $100,000 and this
property here is gonna cashflow about
$400 per month now here’s the great
thing about this now we have an
additional four hundred ollars with the
cash flow and we can add that directly
to our cash flow bringing us up to forty
two hundred dollars per month in
cash flow and so now we are going to
immediately start incorporating the
velocity banking strategy on this rental
properties mortgage and immediately send
all of your income including the new
cash flow you so you’re essentially
sending fifty four hundred dollars with
your income and your four dollars of
cash flow directly to the line of credit
and then you have your twelve hundred
dollars in expenses coming out and
essentially this every month this is
gonna go down by our cash flow so every
month is twenty thousand our balance is
gonna get paid down in about five months
you know going down by forty forty two
hundred dollars per month so about five
months we’re getting twenty thousand
dollars with the principle reduction on
this mortgage on your rental property so
we already know how much interest we
just saved they’re doing it in this way
and the next thing we’re gonna do is
we’re gonna write another twenty
thousand dollar check and we’re gonna
keep rinsing and repeating this process
and we’re gonna chunk down this rental
properties mortgage the same way we did
with yours bottom line guys is if you
repeat this process you will literally
pay off your first rental property
within about two years you got to keep
in mind there’s also a renter in this
property making a payment that’s also
hitting that mortgage and knocking down
the principal so within two years we’re
gonna pay off your first rental property
using the velocity banking strategy and
that’s gonna go ahead and that’s gonna
change our numbers right because the
great thing about not having a mortgage
on that property is that you no longer
have a mortgage payment that you have to
make and the average rents in this
country are over a thousand dollars so
we’re gonna move our cash flow number
from four hundred up to up to one
thousand dollars on this particular
property and that raises our total cash
flow number up to forty eight hundred
dollars per month in cash flow so what’s
the next step here because obviously one
rental property is not gonna bring us to
financial freedom we’re gonna need some
more of those so so how can we create
some additional leverage well now we
have this property paid off free and
clear and what you’re gonna do is you’re
gonna take this property you’re gonna
bring it down to the bank and you’re
gonna ask them to give you a home equity
line of credit on this property you know
they’re gonna try to give you a mortgage
but you don’t want one of those you want
the home equity line because this is
revolving and we’re gonna get $120,000
of credit attached to the equity in this
property and now here’s my question
how many $20,000 checks can you write
with $120,000 line of credit
well you can write six of them right so
we’re gonna go ahead and pick up six
more leveraging this line of credit okay
leveraging banks money we’re gonna
leverage this line of credit to get six
more rental properties and let’s assume
the same numbers as our original rental
with the market value of one hundred
twenty thousand twenty thousand down
payment on each so leaving a hundred
thousand dollar mortgage on each of
those properties and each property will
cash for it but a renter in their
property’s gonna cashflow about four
hundred dollars per month so six of
those properties times four hundred
dollars that’s an additional twenty four
hundred dollars that we get to go ahead
and add to our cash flow bringing our
total cash flow number up to 72 hundred
dollars per month in cash flow and so
now that we have this big 120 thousand
dollar line of credit we’re gonna take
our twenty five thousand dollar line
we’re gonna put that put that in the
drawer we’re gonna hold that off to the
side because now we’re playing with this
big juicy 120 thousand dollar home
equity line of credit that has 120
thousand dollar balance on this line and
so immediately what are we going to do
we’re going to immediately start using
the velocity banking technique or all of
your income all of your cash flow is
hitting this line of credit knocking the
balance down every single month by our
cash flow number of seventy-two hundred
dollars you know bottom line guys is
this you’re gonna pay down this entire
120 thousand on this HELOC within about
16 months using the velocity banking
strategy and then you’re gonna rinse and
repeat keep in mind as well you have
renters in these properties making
payments that is also hitting the
mortgage okay but if you rinse and
repeat this process run the numbers you
will pay off these six rental properties
in about three years giving you a total
of seven rental properties paid off free
and clear in just about a decade okay we
paid out the original house and car in
about six the first rental property in
about two and these other six are going
to paid off in about three years so just
over a decade using the velocity banking
strategy without changing your spending
habits
or without earning any additional income
using the velocity banking strategy and
this beefs our cashflow number up now
that we don’t have mortgages on those
properties that beeps our cashflow
number up to ten thousand eight hundred
dollars per month in cash flow so again
for the average American household using
this velocity banking strategy we ended
up in a scenario where yes we ended up
keeping our employment but we wound up
with a ten thousand eight hundred dollar
monthly cash flow and we also ended up
with a ton of additional benefits that
we didn’t address here you know in the
scenario we end up with 1 million
dollars plus in leverageable assets
between your personal residence and also
these seven rental properties there are
incredible tax advantages to owning and
controlling real estate like
depreciation reducing the amount of
taxes that you need to pay on your money
and really building a legacy for your
family you know imagine building a
business that when you’re gone you pass
this down to your kids and and you’re
truly creating a more secure cash flow
retirement now how does that sound for a
retirement plan having those rental
properties you know compared to the cash
accumulation model that the bank’s
taught you you know at your current rate
of retirement savings you know do you
have enough time left to get to where
you want to be financially you know good
friend of mine Mitch Nelson says that
when knowledge increases behavior
changes and now that we have increased
your knowledge you can change your
financial behavior to save thousands of
dollars in interest maximize your cash
flow and create massive leverage for
yourself and your family using the
velocity banking strategy.

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