Learn Velocity Banking

how would you might be different if you are able to pay down your mortgage and seven years or less using banks money without changing your spending habits and how would you like be different if you had access 24/7 to funds made available to you whenever you needed them as an example to purchase a piece of real estate what a good deal came along how would you like be different if you were able to consolidate your credit cards and your credit debt in your loans and pay them off at a very accelerated basis saving a thousands of dollars of interest how would your life be different well in a few minutes I'm going to open it up on the inside and I'm going to share with you one of the most powerful investment real estate investment tools I've ever come across my name is Gerry maseri and I have a founder make money now real estate investors and I'm gonna see you on the hey welcome to the other side let's talk about velocity banking and ye is a tool real estate investors just cling to it why is it so powerful I call it the fifth pillar of wealth creation and here's why velocity banking is all about a person being able to pay off their mortgage on an accelerated basis most of the time that's seven years or less velocity banking is also all about investing in real estate or a rainy day fund and philosophy banking is nothing more than a line of credit and what but when you use that line of credit along with your checking account it becomes a very powerful tool and you're able to capture the money that that the banks are using that you leave on deposit that they loan out and make millions of dollars on we put that money to work for you so stick around it may be a little complicated but we're gonna get clarity to this and give you understanding the power of leveraging a credit lining call velocity banking here here we go by using a personal line of credit or a home equity line of credit the borrower can accelerate the payoff of their home mortgage or any other debt that they choose now I'm going to read to this to you and I'm gonna make comments along the way so this is done by combining a normal checking account with a line of credit into one account let's look at the definition of an amortized loan and amortize loan is a loan where the principal of the loan is paid down over the life of the loan that is amortized according to the immunization schedule typically through equal payments each payment to the lender will consist of a portion of interest and a portion of principal you do not have access to an advertised loan an advertised loan simply pace your mortgage over an amortized period of time which usually is about 30 years now let's look at the definition of a credit line a credit line is an agreement to lend money up to a pacific amount in the credit limit for a stated period some credit unions allow you as long as you don't violate your good standing okay their account forever but unlike a loan the borrower can decide how much on the agreed funding if any they wish to draw down interest is only paid on the amount that is actually borrowed not on the mount that's made available this is what makes a credit line so powerful as an example you can have a hundred thousand dollar line and only draw down twenty thousand you only pay interest on that twenty thousand what makes a credit line much better than an amortized loan you have access to the funds that will keep that mine access to the funds I will let's look at the major difference here credit line gives the borrower accessed okay and will for any purpose for any reason emergencies what if you need car repairs or or dental work or something always is coming up you know that and let's look at how about paying off credit debt and getting that out of your hair okay what about maybe making a car or a boat purchase or even going on vacation we use it for purchasing of rental properties and we're gonna get more into that a little later okay an advertise law does not allow access to the borrowed well it's very simple what allows you access the other doesn't you know folks there are trillions of dollars of equity into homes that people cannot access and it's a shame because when they lose their jobs okay and they can't make their payments sometimes they're even foreclosed on or okay they have to put their home on the market and sell it with equity we see it all the time so to understand the power of having access to funds when you want it very very powerful all right so what is velocity banking when the borrower makes deposits with their line of credit the credit line records this as a payment against their loan that's right you know how to make payments your deposits become your payment that's the main thing and it's very hard sometimes when people understand that when the borrower withdraws money from their credit line is recorded as a loan and the interest is charged to that account other words when you start drawing from that line of credit what happens is they're gonna charge your account you're gonna pay interest for because it's basically alone okay the borrower's only charge for the use of the funds as they need it that's what's the cool thing and sitting there waiting for you okay it's always there for you that's better than a credit card that charges you 31 percent interest keep that in mind when the borrower makes a deposit those funds sitting there LLC account reducing the loan amount and tell the use of those funds to pay bills or make investments other words that money is sitting there in your LLC account what's different if it's in a bank account the banks have use of that in an LLC account we're going to show you how you're gonna put that money to work reducing your debt and saving you thousands and thousands and hundreds of thousands of dollars of interest costs meantime that money is working for them saving them interest cost when it's in an LLC okay history of the mortgage acceleration velocity banking is not new in fact on all stray did you know that 50% of the homeowners own their homes outright with no mortgage debt and do you realize that the average family in Australia makes less money than what they do in America so how can that be the wealthiest country in the world and most of our American families do not own their homes outright and here's a country that has lower incomes and they do why is that this is also known as a mortgage acceleration right now let's look at this very few people in America own their homes outright with no mortgage debt because the Americans have been taught to focus on their monthly payments not the cost of the loan so everybody looks at with what's it gonna cost me and they fight like crazy to refinance their homes to save a quarter on their interest rate to get their payments down by one hundred to two hundred dollars okay that this is what I call the American crazed owned a home get your payment's down right now let's go back to the history and really look at what happened and why this is so and why the Americans think this way in 1949 the rise of the mortgage market began when long-term memorization making homeownership affordable I remember prior to that time you know the banks were making loans to farmers and their homes but never with an amortization schedule schedule over 30 years so let's look at what happened homeownership ship shot up from 20% to 70% in America the first year that just came out amazing did it work absolutely was a government wrong no what went wrong in big banks friends here's what happened greed big banks saw it as money cows millions of dollars of interest poured in ninety five percent of your payment the first five years goes to interests as interest rates would drop people started to refinance for lower payments they were always MAME and conscious and never debt free concerts are paying the mortgage off as more borrowers purchased home some payments to the banks increased and they had more money to loan the banks went crazy loaning money to everyone qualified or not looks I own several mortgage companies in fact one of them I own 58 branches and 1,200 loan officers and I can tell you then I'm not going to name the name of the banks but the fraud that was going on before 207 and 208 when the bubble popped was amazing if I told you that real banks did fraudulently to's and 1090 nights I am not lying to you and I am not joking it was that bad people were getting loans that weren't even working okay the banks went crazy loaning money to everyone qualified or not to protect depositors from the bank's the Fed stepped in and required a 20% Reserve on all the deposits or payments that they took and they called deposits alright so the so if you went to the bank you can watch all your money instead of the money being alone to somebody else they had to put on they had to put a cap on it it got so bad all right so the jobs grew people started moving up to bigger homes remember coming out of World War two and the 40 in the 50s gay people started to you know we'd had a pretty good economy then okay and people started buying homes the average American family would refinance or move five to seven times in their lifetime the average life of a loan today is only seven years think about this for a minute the clock starts again you refinance or buy another home all of a sudden you got 30 years to pay it off five years later you refinancing and you got another 30 years to pay it off because you're realizing the balance that you've paid down that five year period of time over another 30 years to keep those payments down wrong dumb stupid I'm sorry we got trapped we got educated to be in a will where we never owned our own homes and bank owns our homes with the advent of the amortized loan the banks would collect 95% of the payment as interest for the first five years and did you realize that over the fifty percent or 15 years into the loaf internet life let alone that the that the interest that's charged you is more than the principle that you borrowed that's how fat the banks are now think about this how about how about 30 percent interest rates right now that's what's going on out there they start you at 1516 and they work you up to 30 with families refinancing or buying a new home every five to seven years of banks collected a whirlwind of money homeownership became such a craze that people didn't care about loan cost paying off a mortgage was never even considered it was all about the payment now let's look at the cost of money because something else happened in that time frame started in the 60s and it started to grow rapidly in the 70s and through the eighties even to now loan fee started skyrocketing and soon people were paying upfront fees to acquire these loans the mortgage brokerage came into existence the varible loans came into existence what happened here folks the junk fees that you pay for loans today are ridiculous and the title fees that you pay are ridiculous okay the government stepped in and required banks to disclose these junk fees by producing an APR what we call an annual right now let's look at the cost of your low if the cost of the loan plus interest cost in the loan so there's a difference between your note rate and your actual cost of the loan what we call an effective rate sometimes in this example of $250,000 mortgage loan a 4% note rate would cost one hundred and seventy nine thousand six hundred and seventy three of interest over the life of the loan that's a lot of money folks okay now that's that's crazy now look at this now at the junk fees of seventy five hundred you see two to three percent making the loan cost one hundred eighty seven thousand one hundred seventy three dollars now your APR is four and a quarter percent your note rates four percent that's an increase of a quarter percent I've seen junk fees even add up to a half a point on the loan so your effective rate is really for a quarter so be careful those junk fees are powerful so two things happen the banks are pulling it in loaning it out and we'll all of a sudden they started adding junk fees to your loans to collect even more money to compete with big banks the credit union stepped into the market offering LOC a personal line of credit and also what we call a HELOC a home equity lines of credit now why do the credit unions do that the credit unions did not charge large upfront fees this gave the credit you and the borrower huge advantage over the bank so let me answer the question why did the credit unions come out with credit lines to compete with the bank because they wanted to attract more deposits to their industry and they had to compete with the big banks so they did away with the charges they started offering credit lines I'm telling you the credit lines are going to be the future of advertised loans other words that's advertising loans are gonna go away I was gonna be bought on credit lines you watch it's gonna happen okay I gave you a little forecast there access to funds anytime the borrower needs that what are the advantages lower payments are required lower inches cost lower effective rate more buying power faster debt to pay off and it has access where home loan doesn't let's review how interest is computed using a credit line it's a very it's a simple interest form is on a compound formula its interest equals principal times rate times time currently charge for the amount of time that you use it example borrow $100,000 at a 4% rate over five years what would it cost you well $100,000 times point zero four times five years is twenty thousand dollars of interest box keep that in your mind now okay if you borrowed a hundred thousand you didn't pay anything back UK you would pay twenty thousand dollars over five years for that line okay now watch what happens here let's look at the same on a thousand dollar loan and retires over 30 years but borrowed for only five years the interest cost is nineteen thousand dollars in 92 the junk fees are three thousand the total cost is 22,000 zero nine two and here's a loan that's reducing in principle slightly but it still cost more to do this loan that it doesn't interest only loan with the same interest rates isn't that interesting now the principal reduction here is only nine thousand five hundred fifty two after five years of payments that's all you paid down you still owe $90,000 on that loan so after five years of using a credit line making $20,000 and extra principal payments and you late your mortgage is paid off I know what you're thinking where am I gonna get twenty thousand dollars well this is the big secret and I'm going to share with you today how cool is that okay I'm gonna show you where you can get that twenty thousand dollars it's gonna shock you you already have it you don't even know it saving the borrower thousands of dollars of needless interest costs from the banks okay let's look at it with a home loan over five years making payments you reduced your loan a measly nine thousand five hundred fifty two dollars still only ninety thousand dollars how sick is that this occurs because the interest is loaded at 95% of the payments okay ninety five percent of your payment is interest only five percent goes towards principal because why it's assuming that you're going to carry that loan over thirty years to pay it off and does anybody do that no okay this is what the bank's got you other words the bar was paying interest for the use of the funds over thirty years even though the average bar only holds the loan for what five to seven years big banks collect my interest as borrowers do this over and over and over again they never even think about paying off their loan all they think about is lower famous lower famous refinance refinance refinance credit line charges soak a credit line only charges for use of funds over the time the borrow uses it it doesn't charge of needless interest funds are not using over 30 years I hope this is getting through does not charge for the available amount approved there are no upfront fees okay great question how does the credit line get paid back alright I don't even know waiting how do i what do I do with that twenty thousand where do I get that twenty thousand dollars I borrow from the credit line okay alright by combining your new line of credit and checking account into one account okay your spread and daily average pace down the credit line what what yeah we're gonna explain it to you in a minute so imagine your checking account is you're lying a credit account the two accounts are now one account this is the power of that when I talked about spread that's the difference between your deposits and your expensive what's left over and they're going to talk about your daily balance how that's applied to your loan and reduces your interest cost how cool is that did you know that your daily average in the bank account is your money that's being used by the banks and you're not they're not paying you for but they're making a fortune on it hello your money is not working for you it's working for the banks and it's your money so look what happens your money goes in you make your deposits now this is these are deposits are sitting in your bank account until you pay your bills now the bank has used this money and you don't edit your money the banks do not want you to know what I'm teaching you right now okay I'm serious they do not as your money sits in your LLC it's reducing your LLC balance and your interest costs so we're gonna take that money away from the banks we're gonna put it into your new LLC combined account and put it to work for you alright so where's the twenty thousand come from I know you keep in asking me that well we're gonna we're getting there let's look at this checking account normal checking account here I want you to notice two things I want you to go all the way to the right and look at the daily average right here look at that daily average all that is is your balance divided by 30 days 166 190 383 258 183 50 that money is working for the banks and it's your money I hope you get this now look at the balance at the bottom here at the end of the month you put in your deposit your paid your bills and yet fifteen hundred dollars leftover sitting in your account you know what's sitting your account because you don't know one you don't want any non-sufficient funds are just okay and then the bank charges you junk fees now for what for online usage withdrawing and ATMs oh my gosh they got us coming and going right now look what happens with a criminal Lane account now this is a credit line account that's not attached to a bank account okay just a regular line of credit somebody gets but it's not attached to a checking account with cheques and debit cards so the funds are available 100 you come in and you make your mortgage payment twenty thousand transfer it over to your bank account that's one way to do it but it's not as effective as combining the accounts so keep that in mind because you're not taking advantage of the daily average and daily average balance that you have on your account yeah you still living the bank's use it now you purchase a rental property for thirty five thousand your funds available funds reduced and your Lowe's borrowed or fifty five and you start paying interest on the fifty five a dental pill comes undone expectedly boom you withdraw that from your line of credits that are charging it on your credit card at sixteen and thirty percent which is smart okay the funds are available reduces that and it increases the funds borrowed now you make your your little loan payment or your interest charge off your credit line for borrowing that money two hundred to five hundred bucks I'm worried around there okay so now your funds available 42:8 and you know your funds borrowed or fifty to I'm sorry fifty seven to now again this is just the transactions and in and out of a credit line now let's combine the two accounts and see what happens this is the magic folks this is where it happens your credit line is paid based on your deposits minus your expenses that your spread and your daily balance kicks in in this example you have 18,000 20,000 a year being repaid in your line just by combining the two accounts and not changing your spending habits how cool is that so let's look at this you got let's look at it let's start with funds available hundred thousand okay you pull down your twenty thousand principle payment you make every year to your mortgage and pay off your your mortgage or whatever mortgage you want to pay off and you can use more or less it's just an example funds available eighty thousand funds borrow twenty you're paying interest to that account on the you know on the twenty thousand a question about that you buy a piece of property for thirty five thousand dollars okay we got that and then guess what happens you make a deposit into your checking account because now it's your checking in it is also your LLC account combined that is your payment how cool is that okay now you're just gonna make your normal house payments that's not going to go away right your bills and your LLC are being paid out of your LLC accounting any investments that you make all right and you go ahead and make another deposit now think about this for a minute how is your house your combined account going to work when you start buying rental properties and you start think about this for a minute flowing the cash flow are those rental properties into your combined account okay this is your business account this is what's gonna happen you're gonna accelerate the payoff of all those mortgage loans so it's very very very powerful remember every year twenty thousand comes out of the account goes against your loan it could be thirty can be forty could be fifty and that's how it works and as you put money in and you take money out what's left over and now is applied to your loan balance and your daily averages are applied to your loan balance okay very cool deal isn't it automatically done so how does it work I combine the checking account in your new line of credit your deposits become your LLC payments your money is now reducing write your LLC and your mortgage debt saving you thousands of dollars of interest no change in your spending habits you just automatically do everything you did before but it's tied to that credit line so the money goes in and out of your line your spread is the difference of the deposits less your withdraw in our example of spread is $1,500 monthly that's $18,000 a year folks that will be applied now a lot of people spend that money okay really they do and they wonder why it's not there you won't because why because emergency comes up you have to spend of the car needs repairs you need tires are unique like our family the dental bills in the last couple of months but over $4,000 you also had a daily account average working for you instead of the bank or credit units working for you and your account alright I hope you get this oh my gosh I hope you get it both your spread and your daily average are reducing your LLC how cool is that okay the money you let hang around in your bank account it's now working for you not the bank's average big bank balance okay here it is your money while it's sitting in your bank account is now working for you reducing debt okay let's say that your spread each month is $1,500 you would can reduce your credit line by $18,000 just on your spread plus on the interest that you save because you that remember that money is reduced on your loan account because it's sitting in your LLC account that's another two or three thousand dollars a year how much was the twenty thousand dollars you've made every year to pay pay down your mortgage outside of your LLC twenty thousand where did you get the money to pay down your LLC from money that was sitting around banks were using that you weren't even using folks if you get this man you're on your way to create wealth right plus your daily average right alright so here's what happens your balance after five years on a home loan as $90,000 $448 versa credit light balance and zero because what would happen because you took that out that $20,000 out of your credit line every year you pay down your mortgage in five years out under thousand dollar mortgage to zero and then what happened after that well guess what okay you start again you start every year he rebuild in your credit line that 20,000 that you took out to pay so now you got it there next year to pay down I promise you your LLC balance will not change because you're doing this method it regenerates it regenerates it regenerates hello okay why does this work because it's simply automatic if you were to manage this it would never work I've been doing these loans for over 20 years at a top radio show built well on that radio show selling loans like this and I'm telling you I know the habits of people when I sit down with them and I had them do it from a credit line to a checking account and never worked when I combine the two it was automatic it worked the average family would spend this extra money or maybe save it and a low bearing savings account this is the problem each time you make a purchase using your credit line you automatically start paying it off with your deposits and your daily average is how cool is that you have purchasing power now as your line of credit reduces the available funds increase so once you pay off your mortgage go buy another home and pay off another mortgage pay off or five mortgages at a time by using your payments your your net cash flow from your real estate into your what LLC account and checking account I call that a power account start buying real estate and start flowing your net cash flow into your account look at this imagine your buying power with five rental properties flowing in a net cash $59 a month that's net after expenses you have to up five that's $7,500 going against that okay $7,500 a month my friends are you seeing where I'm going with this you're going to be transferring that power of that credit line into reducing the mortgage debt on one property to another property to another property I'm telling you in five to seven years you can own properties somewhere around four to five hundred thousand dollars debt-free using this technique okay I'll lay the strategies out for you all right purchase power is very powerful you are now paying down your mortgages while increasing your purchasing power how cool is that allows you to do what additional purchases see the problem in the 207 208 bubble pop the reason the the reason it hurts so many people is because they were using you know they were buying high leverage properties other words the appraised value in the loan amount were about the same some of them even bought a higher they had more mortgage on it than the appraised value of the property what I'm trying to tell you they would have kept a lousy 30% equity in that property oh my god okay that's all they needed 30% equity 70 % debt they could have out lived I'm telling ya the big pop the big bubble the big short they really could have but they didn't they didn't have you in 30 percent equity to cover market volatility this allows you to buy more in real estate and own a debt free now think about what I'm teaching you you're gonna buy real estate pay off the mortgage on a debt-free start with your own personal mortgage first let's invest in your future this is just one of the many ways that Co we're going to teach you about creating wealth and financial freedom one of the greatest quotes this is one of my personal quotes the greatest investment one can make is in oneself I'm going to give you the other pillars right now the first pillar and in sparse wealth creation goes is to find somebody that's successful in real estate investing and let them mentor you seriously mentorship is the first pillar of wealth secondly it's education education is a pillar to wealth get educated get smart don't take the risk the third one is the community the community is so powerful and the fourth one is a credit line velocity banking those are four pillars of wealth and then you gotta add yourself in there which is hard work alright so it's easy to find us contact the person contact a person who referred you and tell them hey I want to know more about make money now real estate investors I want to learn from you guys I want to create my walk and start my pillars going and build my phone Dasia okay google us for our meetup group in your area how cool is that right there fill out our questionnaire form right here alright this is coach Gary I wish you all the best I think 2018 is gonna be one of the most powerful years ever in real estate I hope you come to our community I hope you take our educational programs I hope you let us mentor you and I hope that you will create a legacy and be free financially by owning your own business and real estate god bless

Channel: Gary Massari

Views: 48,567

Rating: 4.855372 out of 5

Keywords: iMovie, refinancing, mortages, loans, realestate investing, real estate investing, real estate training, flipping houses, buying rentals, wholesaling, getting started in real estate, velocity banking, Learn Velocity banking, LOC, HELOC, velocity banking strategies

Id: -WRlPJqzqwk

Length: 29min 34sec (1774 seconds)

Published: Wed Apr 04 2018