The only downside is you’re not gonna be able to tap all their equity because the banks are gonna want to sandbag you on the evaluations to cover their old buds. So again, all you guys, you’re going to get me to get a heloc first, because a lot of your equity is going to be trapped in your home equity right there. They’re going to be cash poor house rich. How are you going to spend 30, 40, 50 years paying down their house and that’s it. Not from your parents, your friends, or family. And because it goes against everything we’ve been taught, like I always say, take advice from financially independent people moving on this path. The next level of getting things like secure backline of credits, secure Line of credits on the infinite banking policies is the next step.Īnd for somebody who’s just thinking about refinancing their home, that might make their head explode. And you’ve got to get around other people, right? You have to join our mastermind group, getting around other people who are taking a huge HELOCS and then taking it.

And I think that, you know that you understand it, but you may not embody it. What I would suggest is to go to /heloc if this whole concept is new to you, I am going to suggest checking out some of the articles I wrote in Forbes at /debt. But again, a lot of you guys aren’t like that, there’s a paradigm shift here, the type of advice you’re moving away from this Dave Ramsey world, where you’re told to pay off your debt and you use debt now responsibly.Īnd this is why you listen to this channel and you are supposed to use debt to your advantage. Before you spend all your money on all these things that you can manage your money in, create a budget for. So we need you to put your money into this house and pay it down over time. Again, most people are like this, and this is why the mainstream financial advice out there on the street is buy your house to live in because y’all, can’t seem to keep your grubby hands off your money. Now again, a lot of these people were people that look like grownups, that kind of act like kids financially, nothing wrong with this. Obviously, we’re not going to go down that road. If you’re interested in learning more about that type of stuff, and it’s not the poor people. If you want to check out our tax guides, go to /tax. It’s not the wealthy people paying the taxes, that’s for sure. High contributors to society pay most of the taxes. They’re not like folks like you who listen to financial podcasts, max out your 401k, good little boys and girls work your jobs. I’m going to argue that 99% of people out there are really bad with their money. Right? There’s these two kinds of sets of paradigms out there, 99, 95, whatever. But if you’re getting started and you’ve got a lot of home equity, if you’ve got more than 20% of your property, your home paid off, dude, you guys gotta do something with that, right? You guys should not be living by the mindset of paying off your house.

Now again, might be a more advanced topic for later. Today’s going to be a little bit more of an advanced topic or for some of you guys save for the later, it’s going to be talking about what do you do to qualify for a really big mortgages when you buy these really big houses that, you shouldn’t be affording it, but Hey, you got all this cash flow because you’ve been investing the right way.

Heloc simple passive cashflow