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
