Full transcript
0:00I've made millions of dollars by paying
0:01off my house and I like to call the
0:03triple dip what I've done is I've always
0:05tried to pay off my house as soon as
0:07possible I use the word pay off your
0:09house there's a lot of people out there
0:10with a lot of equity in their house
0:12could be as little as 50,000 could be
0:13500,000 depending on the price of your
0:15house you don't have to have it paid off
0:17to go get a home equity loan I go get a
0:19HELOC loan against it which is an
0:21interest only loan Once you pull the
0:23money out of your house so if it's
0:25sitting there and you're not using it it
0:27doesn't cost you anything it's just a
0:28checkbook sitting there with a lot of
0:30money there that you can go get anytime
0:32you want if you use your HELOC very
0:34strategically it can make you a lot of
0:36money in a short period of time if
0:38you've got equity in your house and
0:39you've got a plan and you've identified
0:41a piece of property that's undervalued
0:43and you've already got the money
0:44available it's easy to close people like
0:46knowing that you're going to be able to
0:47close a deal and when you have that
0:49money just sitting there when you pull
0:50it out it doesn't cost you nothing to
0:52have a home equity loan as long as
0:54you're not using it and when you do pull
0:55it then the clock starts and it's
0:57interest only here's what you don't want
0:59to do you do not want to take that money
1:02and buy anything that is not going to
1:04make you money cuz once you pull that
1:06money out the inra starts and if you
1:09aren't buying something that's cash
1:11flowing you're going to get upside down
1:13and you can get yourself in a lot of
1:14trouble so be very careful here this is
1:16notth for the faint of heart you need to
1:19have a plan and stick to the plan that's
1:21the procedure have a plan stick to the
1:23plan my plan is to loan the money to my
1:26other companies as a hard money loan
1:28I'll loan it as a hard money Lo loan 10
1:30to 12% interest that is paying meat that
1:33company goes and has a deal already that
1:36we buy an undervalued piece of real
1:38estate that is Cash flowing and is going
1:40to appreciate they've identified a piece
1:42of property that's undervalued we buy
1:44that piece of property it's cash flowing
1:46in 6 months sometimes we got to keep a
1:48property a year to get it to add value
1:50but once we do the company goes back to
1:52the bank borrows the money to pay back
1:53the hard money guy oh it happens to be
1:55me I get the money back I give it back
1:57to the bank to pay off my home equity
1:59loan I'm back to were exactly where I
2:00was I got my money back plus I made
2:02interest on that hard money oh and by
2:04the way I own 50% 25% of a piece of
2:07property now that's exactly what I do I
2:09go loan the money I'm getting a hard
2:11money loan I'm being charged a small
2:12amount of interest from the HELOC people
2:14I'm charging much more interest to my
2:16partners they're happy because they have
2:18access to Capital to go out and buy
2:19these pieces of property we buy those
2:21pieces of property add value to them go
2:23back to the bank get a loan pay off the
2:26property I get my money back I put it
2:28back to where I got it the interest
2:29stock I paid it back it's not costing me
2:31anything but now I'm either a 50%
2:34partner a 3% partner a 25% partner in a
2:37piece of property that was bought
2:39probably 30% undervalued we brought it
2:41up it added value raised the rates on
2:43whatever piece of property is and now
2:45it's cash flowing how can I lose once I
2:47take the money out of my heot and loan
2:49it to my company I'm making money on a
2:51hard money loan I'm making money on the
2:53cash flow from the property we bought
2:55and I'm making money from the equity cuz
2:57we brought it undervalued in the first
2:59place and it continues to Rise 3 or 4% a
3:02year right making money three different
3:03ways feels pretty good and it's all
3:04because I paid off my house
3:09[Music]
3:12[Applause]
3:14[Music]