You know, having done 4,000 real-estate investments, I should know a thing or 2
about the best way to pay a house off. And in fac,t I do. And what I'm actually
going to be doing today is I am going to be sharing with you my hack on how to
help you get your house paid off in 10 years. And not only that, I'm actually
going to show you how to pay it off in 10 years and leave you something a
little extra that you could use to keep on investing and growing and actually
creating a residual income with. Enjoy.
So, you might be watching this video because you've never heard of the 10-year
method. You've heard of the 30-year method. You've heard of the 15-year
method. Let's start there, makes you understand that and then I'm going to give
you my hack which you probably have never heard before. So check this out.
When you buy real estate, you need to understand that if you're going to do
option 1 which is what's called the 30-year mortgage, that there are 2
components of every payments. You have what's called P and I which stands for
principle and interest. But i want you to understand that on a 30-year mortgage,
let's just say for a moment that this represents principal and this represents
interest. And combined, there your total payment. So, let's say my payment as $500
a month. Well, if this is a 30-year timeline then what's going to happen is my
in my first year, my first payment out of 360. My first payment is probably going
to be majority interest and very little principal. And the next payment... In the
next payment the next payment will be the same. But after 10 years, I start
paying a little less in interest and more in principle. And what it'll mean is
by the time I get to my 30 years, I'm done paying interest and I'm only paying
principal. This means because all the interest is front-loaded that you're
going to actually pay for this house 2 and a half maybe 3 times. Which is
crazy when you think about it. My house is 100,000-dollar
house, I'm going to pay 260,000 for it. My house is a
400,000-dollar house, I'm going to pay over a million bucks for it. And
that's because the banks understand that you're not gonna stick with it for
30 years and they want their money up front. The principal moves in a very
similar format. And by the time you get to the end of the 30 years, almost
the entire payment is going to where its principal and very little interest. So, if
you've ever wondered why like, "Hey, I'm ten years into my mortgage and I can
lower my interest rate just a little bit. I'm going to do a refinance." People get
suckered into that all day long. They don't realize that they're resetting
this entire schedule. It's called amortization schedule. And they're going tO
start by paying a front load of interest all over again. So, people aren't
actually looking at the math the right way. So, problem with the 30 or mortgages
you're going to pay for your home 2 or 3 times. And that's why the second
more known option before we get to my 10-year plan (I got a 5-year one too.)
Is what's called a 15-year mortgage. And in the 15 year mortgage, what they're
basically saying is you're going to make a higher payment. But guess what? You're
only going to have to do it for 15 years as opposed to 30 years. So,
you're gonna pay way less interest. And true, you are going to
pay a lot less interest. But guess what? You have a much higher payment. And you
know what I hate about that? Is that makes sense under your life
circumstances today. Dude, but what happens if you lose a job? What happens if
something goes south? I know people all day long that would love to have that
extra cash flow back in their monthly pocket but they can't. It's forced into
the house payment. So, even though this gets you paid off in half the time, you
might have a 20 or 30 percent higher payment. And so you pay less interest but it's
going to cost you every single month. So, what I want to do today is I want to
give you a third option. And this third option you know for all intents and
purposes is going to be the 10-year option. You probably haven't seen this
anywhere else because I've been doing this a long time and I've just never
seen anyone else share it. So, let me help you understand what the 10-year option
is. We are not going to say, "Let's get a new mortgage and try to figure out a
paid off sooner." Because I don't like the bank's winning at that game of paying
all that interest money. I also don't want to do like the, "Let's get creative
and like make double payments a month. And that'll like cut down some interest."
Like... Okay, great. I'm not playing the banking role. I want to actually show you
how to get your house paid off in the next 10 years and in style. Here's what
that looks like. Let's just say for all intents and purposes that we have a
house here. And let's just say that it's valued at 150,000.
Let's also say that what's owed on it is $100,000. So, we're
talking about a very basic modest home. And you're basically saying, "Dude, I want
to get this paid off in 10 years. Not 15, not 30. I have a reason for doing it
sooner. "Kris, how would
you do that?" You have a little bit of equity. Meaning that home is currently
worth about $50,000 more than you owe. And that's important for what I'm about
to show you. If your house has a little bit of equity into it, check this out.
Number 1, we're going to get what's called a home equity line of credit. This is
where we go to the banks. A bank, I got equity. So, I want you to give me a
line of credit like a revolving credit card. And the bank says, "Sure, here's
$30,000." And they're basically saying, "Now, if you use that, there will be a payment."
You're like, "I get it. We're good." And what you do is you find an investment
property. Now, if you've already gotten a copy of my book Straight Path To Real
Estate Wealth. This book's been around for 15 years. Just got updated. This book
is what... It was the basis that has led to 4000 deals that I've been able to do
myself and help other people do. And in that book, what we talked about is
targeting properties where you can essentially hone in on a 20%
annual ROI. Now, this is important. Most people don't know how to get a 20%
ROI but my students that work with me get it all day long. A 20%
ROI means if I were to take $30,000 out of my home equity
line and put it into this property as a 20% down payment, then I would now have a
rental property. And if that rental properties earning me 20% a year on my
30 grand, then how long does it take for me to double my money? 20%, 20%
20%, 20, 20. All out up to 100%. In five years, I've turned
$30,000 into what? $60,000. And what can I do with
that 60,000? Well, instead of just buying one home, I can use it as a down
payment on what? On 2 properties. And over the next 5 years, that would
double again and give me about $120,000. Now, let's
just pause. We took some equity out of the property and bought an investment
property. It meant that this had a payment but the cash flow from this
cancelled it out because we got a great ROI. I took this home in 5 years and I
turned it into 2. And in five more years, I could have turned it into 4
homes. But instead, I now have the option of saying, "No. I'm
going to take 120,000." And what am I going to do, I'm going to pay back my home equity
line and I'm also gonna pay off the rest of my mortgage. And guess what how you
got that really paid off without doing 15-year mortgage of increasing payments,
not doing the 30-year mortgage and given the bank's their money 3 times over.
What you did was you said, I accelerated the process myself. Now, there is some
risk in doing this. As others would call it. But for me, the greatest risk is
putting your yourself and your family and financial harm's way. Because you're
following such a conservative system that your plan is broken and it doesn't
have the ability to create the financial freedom that you're looking for. That's
the real concern. So, you have to weigh out which of the 2 is a greater risk.
I've been doing this with people for the last 15 years. And if you have confidence
in your strategy and you know what you're doing, you're going to crush it. Which
is why... If you don't have a copy of this book, I just ordered a truckload. They go
really faster on YouTube. But while supplies last, if you click the link
below, I'll get you a free copy of this. It's on me. I am going to ask that you
covers us the the cheap shipping on it. I got my daughter in the basement who's
having an entrepreneurial experience with that who like everyday like loads
up all these things and then takes them over to the post office and it's kind of
like a little fun daddy-daughter project. But yeah. Cover the shipping for the
postal and this this is yours. And this book will go into greater
detail of exactly how you find these homes, how you do this. Even comes with a
free consultation to talk to my team and see if we can help you strategize
something more customized. Because you look at this and one shoe does not fit
all but the principle is true, it's tried and it works. And so, my friends, that is
how you get your house paid off in 10 years. Barring that you have a little bit
of equity in your home. And that's if you don't, we've got other things that we can
do. In fact, in your private consultation, I want you to say, "How can it happen at
home in 5 years instead of 10 years?" And we have a game plan for that as well.
So, listen. Thanks for watching today. If you're not a subscriber, make sure you
take care of that. Links below for getting your free copy of the book. Talk
with a member of my team or learn all the other ways to engage with me.
Take care of my friend. This is your mentor signing out.
I see you tomorrow.