You Can Pay Off Your House In 3 To 7 Years — Transcript

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1. 0:00I want to talk to you today about
2. 0:01something that impacts your life in a
3. 0:03great way and it's one of your biggest
4. 0:05expenses and as a business coach who
5. 0:08teaches financial literacy and teaches
6. 0:10wealth creation, one of the things
7. 0:12that's changed my life the most is I
8. 0:14learned a long time ago that wealth is
9. 0:17easier to create if you learn how to
10. 0:18turn expenses into profit centers.
11. 0:22And today I've got a special guest with
12. 0:23me
13. 0:24and he's going to show you how he helps
14. 0:26people all day 6 days 7 days a week
15. 0:3024 hours a day turn one of their biggest
16. 0:32expenses into a profit center. I bought
17. 0:35and the expense I'm talking about is
18. 0:37your mortgage.
19. 0:38Because I bought a two and a half
20. 0:40million dollar house two years ago put
21. 0:42another half a million dollars in it
22. 0:44financed 1.7 million dollars of that.
23. 0:47And
24. 0:48what happened for me was
25. 0:51the interest rates were really high and
26. 0:53I just said well I'll get the mortgage
27. 0:54when the interest rates go down I'll
28. 0:55just refinance. So
29. 0:58the interest rate that I got when I
30. 1:00bought this house was 9.25%
31. 1:03it was crazy.
32. 1:05My mortgage payment was 17,700
33. 1:09dollars a month.
34. 1:11I bought this house 25 months ago.
35. 1:15About four or five months into paying
36. 1:19this they sold the loan to another
37. 1:22bank another
38. 1:24loan company.
39. 1:26They raised my mortgage payment to
40. 1:2921,000
41. 1:31dollars a month. Now 21,000 dollars a
42. 1:32month didn't hurt me
43. 1:34didn't even hurt my feelings
44. 1:35but I didn't I'd rather give that 21,000
45. 1:37dollars a month to me. So I thought I
46. 1:39got to do something about this. So
47. 1:40working with the gentleman I'm about to
48. 1:41introduce you to not only did when we
49. 1:44moved over to the system that he's going
50. 1:46to show you today not only did we take
51. 1:48my payment from 17,000 a month to 9,000
52. 1:52a month
53. 1:54but I paid that house off in 25 months
54. 1:58using this system.
55. 1:59So you want to lean in, grab a pen and a
56. 2:02piece of paper as I have a conversation
57. 2:04with my friend, the man, the myth, and
58. 2:06the legend, Tyler Hennessy. Tyler, good
59. 2:08to meet you, man.
60. 2:09Glad to have you. Glad to introduce you
61. 2:11to our audience.
62. 2:12So, Tyler,
63. 2:14like who are you and what do you do,
64. 2:15bro? You you you have this amazing thing
65. 2:18that you do and
66. 2:20interestingly enough,
67. 2:22my most viral video short-form video
68. 2:25that I have is about the concept
69. 2:27>> to We're about to discuss with you.
70. 2:29>> The irony of this all.
71. 2:30>> What's that?
72. 2:31>> The irony of it all.
73. 2:32>> The irony of it all. So, so what do you
74. 2:34do? Tell like like tell You can tell me.
75. 2:36Just tell me what like what do you do?
76. 2:38We'll let them watch us have a
77. 2:39conversation. What what do you
78. 2:40>> In the In the simplest form, I own a
79. 2:41company called Go Mortgage Free. Go
80. 2:43Mortgage Free. It's changed my life,
81. 2:44truly. Back in 2020,
82. 2:47if I rewind a little bit just to give
83. 2:48you a little context for it, I help
84. 2:50people pay their homes off about 80%
85. 2:51faster than a traditional mortgage.
86. 2:53>> 80%? Okay, so
87. 2:54>> On average.
88. 2:55>> Okay, on average. So, I'm just
89. 2:56>> I'm a math guy. Mortgages are 30 years.
90. 2:5980%. You help them pay it off
91. 3:01>> About 5 to 8 years on average.
92. 3:03>> Yeah, that's what Yeah,
93. 3:04>> It's paid off in full.
94. 3:05>> 5 to 8 years. Yeah.
95. 3:07>> Correct.
96. 3:07>> Yeah.
97. 3:08>> So,
98. 3:08>> That's crazy by itself.
99. 3:09>> Yeah, so you hear that and your first
100. 3:10thing is like, why don't I already know
101. 3:11about this? Or too good to be true. Or
102. 3:14if this was a thing, I already would
103. 3:15have been doing it. And I'm like, if you
104. 3:16actually just think about how the
105. 3:18banking system works, if it is true,
106. 3:20which it is true, why would the banking
107. 3:22system teach you a way to get rid of
108. 3:24your debt faster?
109. 3:25>> Right, because then you're going to end
110. 3:26up paying them less money.
111. 3:27>> Right. So, they
112. 3:28>> Of course they're not going to tell you
113. 3:29how to do it.
114. 3:29>> So, they're not educated themselves in
115. 3:30it, nor if they are would they educate
116. 3:32>> have mortgages.
117. 3:33>> That's right. That's right.
118. 3:34>> Yeah.
119. 3:35>> So, I'll just to give you a little bit
120. 3:36of context for myself. In 2020, I'd been
121. 3:38a full-time worship pastor for How long
122. 3:40was that? Probably 15 years at that
123. 3:42point. And so, W-2 salary, I knew I had
124. 3:46my business degree. I'd flipped some
125. 3:47homes and stuff like that. But my wife
126. 3:49is an
127. 3:50elementary teacher.
128. 3:52We have our, you know, paycheck every 2
129. 3:54weeks coming in and I just felt
130. 3:55strapped. We like we had flipped seven
131. 3:57homes at this point and we always rolled
132. 3:58the equity into the next home, right?
133. 4:00So, we'd would
134. 4:01$30,000 on a home, $70,000 on a home,
135. 4:03and we would roll it in. Roll it in. I
136. 4:05didn't have anything else to do.
137. 4:06>> Right.
138. 4:07>> So, what I'd been taught was you pay
139. 4:08extra towards principal, which is what
140. 4:11most Americans are taught, right? They
141. 4:12go, "If you put a little bit extra
142. 4:13towards the principal, you can pay it
143. 4:14off in 23 years instead of 30." Or, 18
144. 4:17years instead of 30 if you do bi-weekly
145. 4:19payments or one extra payment a year.
146. 4:21All these things were developed
147. 4:22>> I like 5 to 8 years better.
148. 4:23>> Yeah, I did, too, man.
149. 4:24>> [laughter]
150. 4:25>> Me Me too. I did mine in 25 months.
151. 4:26>> Exactly. You killed it. As of Monday
152. 4:28this week, right?
153. 4:29>> Yeah. I love it. So, I get into this
154. 4:32with my same salary. I did not get an
155. 4:33increase in money, but I looked at the
156. 4:35math, and I was like, "If this tool, if
157. 4:37this vehicle does what the math is
158. 4:39saying it does, this is a no-brainer."
159. 4:41But, when I went to my CPA or my
160. 4:44financial advisor,
161. 4:45>> know anything about it.
162. 4:45>> They didn't know about it, and they told
163. 4:46me it was wrong. Or, if they're they're
164. 4:48like, "Uh whoever told you that it's
165. 4:49it's a it's a variable rate, or it's a
166. 4:52risky loan, or you could lose your
167. 4:53house." Uh but, they were always talking
168. 4:55about a second position HELOC, or they
169. 4:58either had no knowledge on it.
170. 4:59>> Okay, you just threw you brought up you
171. 5:00just said the word.
172. 5:01>> I did. I'm doing it there.
173. 5:02>> You just said the word. Okay, the word
174. 5:03is HELOC. What is a he- I mean, I know
175. 5:05what a HELOC is.
176. 5:05>> Yes, sir. I know what a HELOC is.
177. 5:06>> HELOC is a home equity line of credit.
178. 5:10>> Home equity line of credit.
179. 5:12>> Correct.
180. 5:12>> Got it. Got you.
181. 5:13>> So, it's a it's a it's a line you can
182. 5:15get on your home, but traditionally, it
183. 5:16was created for your your mortgage,
184. 5:18which the word mortgage means death
185. 5:20pledge.
186. 5:21>> I promise to pay until I die.
187. 5:23>> That's what That's what That's what the
188. 5:24what the root meaning Go Google it.
189. 5:25Literally means death pledge. That's
190. 5:26what we've all kind of been bought into.
191. 5:28So, they've But, the There's a lot of
192. 5:30differences. We'll We'll get into that
193. 5:31in a moment. But, I got into this HELOC
194. 5:34in 2020, June of 2020. I had 27 years
195. 5:37left on my mortgage at the time. I'm
196. 5:38literally feeling like financially
197. 5:40stressed, paycheck to paycheck. And I'm
198. 5:41like, telling my wife, I'm like, "We
199. 5:43make our money, and we put the extra in
200. 5:46there, and nothing changes." But,
201. 5:47they're telling me 18 years from now I'm
202. 5:49going to be really happy I did this.
203. 5:51>> [laughter]
204. 5:51>> But, even
205. 5:52>> I want to be happy on the way.
206. 5:53>> I was like, "Can we Can we start now?"
207. 5:54>> Right.
208. 5:55>> Can we have some of that happiness Can
209. 5:56we speed this up a little bit? Like, I'm
210. 5:58working hard. I flipped homes last
211. 5:59night, and nothing's changing.
212. 6:00>> Right.
213. 6:01>> And so, we you know, I'm going through
214. 6:02the process, and I'm like, "Okay,
215. 6:04if this if my math is right, I'm going
216. 6:06to pay this off in 8 and 1/2 years, from
217. 6:0727 to 8 and 1/2. But, the Lord in his
218. 6:10wisdom he's given me, I realized I had
219. 6:12relationships across the country on ways
220. 6:14that you can you can perform um
221. 6:17I'm trying to make this as simple as
222. 6:18possible, but through private lending or
223. 6:19real estate, uh solar 401k's, different
224. 6:21retirement accounts that are
225. 6:22non-traditional, you can accelerate the
226. 6:24strategy. Long story short, I paid my
227. 6:26home off in 3 and 1/2 years uh from 27
228. 6:29years, and it radically changed my life.
229. 6:32And in the process, I couldn't keep from
230. 6:33telling It's like the gospel. Like if
231. 6:35you if you know something that's And I'm
232. 6:36not saying it's on the same level, it's
233. 6:38not. But if you know something that
234. 6:39changes your life that much and you
235. 6:40don't share it, how
236. 6:41>> How selfish do you have to be to not
237. 6:42share it?
238. 6:43>> Right.
239. 6:43>> So, I start sharing it, and of course
240. 6:45you the people are like, wait, what?
241. 6:46Come out of the woodwork. Uh this this
242. 6:48don't work. I'm like, come look at my
243. 6:49note, it's zero.
244. 6:50>> [laughter]
245. 6:51>> My my note is zero.
246. 6:52>> 100%.
247. 6:52>> This literally happened. And so, and I'd
248. 6:54acquired 14 rental properties in the
249. 6:55process.
250. 6:56>> Wow.
251. 6:56>> So, I went from a paid-off you know, 27
252. 6:59years left to a paid-off home and 14
253. 7:01real estate properties. Uh you know,
254. 7:03single doors that I'm owning at this
255. 7:04point. And I'm like, I got to share
256. 7:05this. So, that's that's fast-forwarded
257. 7:07to this time. It turned into Go Mortgage
258. 7:09Free, got a full-run business, and
259. 7:10helped over 500 families at this point.
260. 7:12>> you teach other people how to do that.
261. 7:14So, here's a here's a question I have
262. 7:15for you. So, you you paid off your
263. 7:17mortgage in
264. 7:193 years instead of 23.
265. 7:21>> 27.
266. 7:22>> Instead of 27 years.
267. 7:23How much
268. 7:25interest do you think or do you already
269. 7:26know that that saved
270. 7:27>> So, I I should on my own home. Uh our
271. 7:29average client saves about 140,000 in
272. 7:31interest. We see outliers over 500,000
273. 7:33people, 60,000, everywhere in between.
274. 7:35>> I'm sure with as big as my mortgage was,
275. 7:37I saved a whole lot more than
276. 7:38>> It was It's got to be insane. So, I I
277. 7:40mean, I don't know my exact number. I
278. 7:42know But for me, the time is more
279. 7:44valuable even than the money I saved.
280. 7:45>> 100%.
281. 7:45>> If you tell me I'm going to get 24 years
282. 7:47back in my life that I don't have this
283. 7:48debt, I can make way more than the
284. 7:50interest that I saved on it.
285. 7:51>> 100%. 100%.
286. 7:53>> So, that that time is so much more
287. 7:54valuable.
288. 7:55>> Especially when you take into
289. 7:56consideration that with a HELOC,
290. 7:59it is a revolving account that has a
291. 8:01checkbook attached to it. So, even when
292. 8:03you pay your mortgage off, now your
293. 8:05equity is not some vague ethereal thing
294. 8:08that you can feel good about having. If
295. 8:10you find a deal that can make you money,
296. 8:12you can actually write a check with your
297. 8:16equity
298. 8:17>> That's right.
299. 8:17>> as the money.
300. 8:19>> You can give me a check on your You
301. 8:21write a check on your equity. [laughter]
302. 8:22>> Bro.
303. 8:23>> Amen.
304. 8:24>> Do not tempt me with a good time.
305. 8:25>> So, when you pay a mortgage off, which
306. 8:27congrats to those who've done that. But,
307. 8:29if you have a traditional mortgage, do
308. 8:30you know you have no access to your
309. 8:32money still? Unless you do a second lien
310. 8:33HELOC, which you'll pay for,
311. 8:34>> Yeah.
312. 8:35>> cash out refi, which you'll pay for, or
313. 8:37you sell your home.
314. 8:37>> Exactly.
315. 8:38>> In my home right now in Texas, I got a
316. 8:39first lien HELOC and my money stays
317. 8:41available. It's I look at it like if you
318. 8:42had two closet doors and you're putting
319. 8:44all your stuff in one closet and I shut
320. 8:45the door and said, "You can't touch that
321. 8:46ever unless you sell it." Or one's open
322. 8:49available whenever you need it.
323. 8:50>> Right.
324. 8:51>> And what can you do with that?
325. 8:52>> Give me the one that I can go get
326. 8:54something done.
327. 8:54>> [laughter]
328. 8:55>> So,
329. 8:56here's what here's what I've discovered,
330. 8:57too, Tyler. I've discovered like when
331. 8:58you find a deal,
332. 9:00like wealth has a need for speed. And
333. 9:02when you find a deal, like like an
334. 9:04opportunity to change your life and all
335. 9:07you need is some money to take advantage
336. 9:10of that opportunity, access to some
337. 9:11money to take advantage of that
338. 9:12opportunity, and you got to wait two two
339. 9:14or three weeks before you get approved,
340. 9:15somebody else may already come up by and
341. 9:17snatch up the deal.
342. 9:17>> 100%. For me, you used the exact word I
343. 9:20use all the time, opportunity.
344. 9:21>> Mhm.
345. 9:22>> I didn't I couldn't even see those
346. 9:24opportunities for real estate properties
347. 9:25when I had my mortgage cuz I had no
348. 9:27access.
349. 9:28>> Right.
350. 9:28>> So, my mind was literally unable I was
351. 9:30like, "Well, one day, maybe I'm going to
352. 9:32save up my my emergency fund I'll be
353. 9:34able to put 20% down on all of these."
354. 9:35>> Yeah.
355. 9:36>> As soon as I got access, my mind opened
356. 9:38up to opportunity, opportunity,
357. 9:40opportunity. And I just stepped into
358. 9:42them.
359. 9:43>> Yeah, it's it's so interesting. Like I I
360. 9:45got my first HELOC in 2007.
361. 9:49>> I remember you telling me this.
362. 9:50>> Now, it was a second position HELOC,
363. 9:52right? It wasn't a first position HELOC.
364. 9:54It was a second position HELOC, which
365. 9:56means I had a mortgage and a home equity
366. 9:58line of credit, okay? So, that's very
367. 10:00different than what I got when I started
368. 10:02working with you. When I worked with
369. 10:04you, I got a first position HELOC, which
370. 10:06means I
371. 10:08got the home equity line of credit,
372. 10:10I owed $1.7 million on my house, right?
373. 10:13When did I do this? When did I close?
374. 10:14Back in May or June?
375. 10:15>> I thought I was going to say I thought
376. 10:15it was around May.
377. 10:16>> May. May. I closed in May. So, this is
378. 10:18So, June, July, August, September,
379. 10:19October. So,
380. 10:21it So, in 5 months from the time I
381. 10:23closed on my HELOC, my mortgage is paid
382. 10:25off.
383. 10:25>> And you have access to all of that.
384. 10:26>> access to all So, I got a $2 million
385. 10:28HELOC, paid off the $1.7 million
386. 10:31mortgage.
387. 10:31>> you they can't do, by the way.
388. 10:32>> What? They'll tell you you can't do
389. 10:33that. Paid off the $1.7 million
390. 10:36mortgage. So, now that $21,000 payment
391. 10:38is not only gone, but they sent me a
392. 10:40check for like $56,000.
393. 10:42Sent me a check for $56,000. The company
394. 10:45The The company that was charging me
395. 10:46$21,000 sent me a check for $56,000
396. 10:49just when I changed to the HELOC.
397. 10:51>> Mhm.
398. 10:52>> Then, my payment went down because the
399. 10:55first position HELOC, and this is going
400. 10:57to scare some people, but it only scares
401. 10:58you cuz you don't understand yet.
402. 11:01It's an interest-only payment. So, when
403. 11:03I make my $9,000 payment, I'm only
404. 11:04paying interest.
405. 11:06Oh my goodness, I'm only paying
406. 11:07interest. And my my But, my interest
407. 11:09rate went from 9.25% to 6.25%.
408. 11:12So, my payment went down to My payment
409. 11:14went down to um $9,300 a month or
410. 11:17something like that.
411. 11:18>> Great.
412. 11:18>> So, but because I had access to cash
413. 11:22that was making me no money.
414. 11:23>> Mhm.
415. 11:24>> So, and like I don't have time to trade
416. 11:26all day every day, trade stocks and
417. 11:28options all day every day. I do some
418. 11:30trading. I don't do a ton of it just cuz
419. 11:32I don't have time. And I don't want to
420. 11:34become a trader.
421. 11:35Like, I want to do what I'm doing.
422. 11:37Anyway, so I've got I had, you know,
423. 11:39some money sitting in the bank. So, I
424. 11:41paid my mortgage I paid my home equity
425. 11:43line of credit down. I I I think the
426. 11:44first time I paid it down, I paid it
427. 11:46down by $100,000. That made the payment
428. 11:48go down.
429. 11:48>> Just to watch what it would do.
430. 11:49>> Just to see what it would do. And I
431. 11:50said, "Okay, you know what? I think I'll
432. 11:51pay off $700,000 of this." So, I took
433. 11:53$700,000 that was sitting in the bank
434. 11:54making me nothing, and I put it on my
435. 11:56home equity line of credit. So, here's
436. 11:57what people don't get. Because my
437. 11:59interest rate is 6.25%,
438. 12:01taking my money out of the bank and
439. 12:03making me nothing and putting it on my
440. 12:05home equity line of credit, it's like
441. 12:06getting 6.25%
442. 12:09on money I had sitting there making
443. 12:11nothing.
444. 12:11>> Did.
445. 12:12>> And
446. 12:13if I need to use that money, I still
447. 12:15can. Cuz here's what happened.
448. 12:16Eventually, over that couple month time
449. 12:18period, I paid it down to only owe
450. 12:19$100,000 on this two three million
451. 12:21dollar house. I only owed $100,000 on
452. 12:23it. My mortgage payment was like
453. 12:24>> 600 bucks?
454. 12:25>> Yeah, something crazy. It was something
455. 12:26Yeah, something like that. 600 bucks.
456. 12:28Something crazy, right? And then
457. 12:31my accountant called me saying, "Well,
458. 12:32you know, we got to pay the non
459. 12:35um the non compensation pension plan,
460. 12:38whatever it's called. I forget.
461. 12:39Non-employee pension plan." So, I had to
462. 12:40pay the pension plan, which was a couple
463. 12:42hundred grand, and I had a tax bill all
464. 12:44due at the same time.
465. 12:45So, I took some of the money that I had
466. 12:46out of the bank and I said, "Well, let
467. 12:47me use some of this money in this HELOC
468. 12:49and see how it works." This is the first
469. 12:50time. So, I took 400,000 out of the
470. 12:52HELOC and paid off my taxes and paid for
471. 12:55the pension plan and paid all that stuff
472. 12:57off. Okay, now my mortgage is back up to
473. 12:59500 grand.
474. 13:01>> Cool. 5 grand?
475. 13:02>> No, 500 grand.
476. 13:03>> Oh, 500,000 for the balance?
477. 13:04>> Right. I owe 500,000. I owe 500,000 now.
478. 13:08Okay?
479. 13:09But then, you know, had a couple clients
480. 13:11buy VIP days and I'm like, "Nah, nah, I
481. 13:12got all this money sitting around again.
482. 13:13I need to get this money
483. 13:15that ain't making me no I got to get
484. 13:16that out of there. So, I just might as
485. 13:17well put it on my mortgage." Paid off
486. 13:18that 500,000 on my mortgage. Now I'm
487. 13:20getting 6.25% on that money because I'm
488. 13:23saving
489. 13:246.25 on how much I owe cuz I don't owe
490. 13:26anything.
491. 13:27>> Saving more per day than you would have
492. 13:28been making in a bank product.
493. 13:30>> Even if it was a CD.
494. 13:30>> 100%.
495. 13:31>> high yield savings, any of that stuff.
496. 13:33>> And it's so much better like having a
497. 13:35home equity line of credit at 6.25%
498. 13:38is better than having a mortgage at
499. 13:402.25%.
500. 13:41>> I would agree with you.
501. 13:42And the math will show it, too.
502. 13:43>> The math does Math don't ever lie. Math
503. 13:45always tells the truth.
504. 13:46>> Because the thing people don't see in a
505. 13:47mortgage You just mentioned this. So,
506. 13:49like let's say a 3% mortgage. That's
507. 13:51still going to be around 60% in total
508. 13:53interest percentage over the life of the
509. 13:55loan. So, if you People look at their
510. 13:56own disclosures, you go to page four or
511. 13:58five of your disclosures, it will say
512. 13:59TIP, total interest percentage. But they
513. 14:02always tell you, "Oh, you got a 3.25."
514. 14:04I'm like, "No." When It's It's all about
515. 14:06time. How long are you paying on that
516. 14:08debt is what destroys people. But and
517. 14:11not but and they're going to call you
518. 14:13every probably five to seven years to
519. 14:14refinance and reset the clock. Why do
520. 14:16they want to reset the clock? They want
521. 14:18you to be holding to the debtor for as
522. 14:19long as they they can.
523. 14:20>> 100% because during the first what 7 to
524. 14:2210 years of your mortgage most of the
525. 14:24money that you pay on that mortgage goes
526. 14:25towards interest.
527. 14:26>> That's right. That's right.
528. 14:28>> Even if it's not an interest-only loan,
529. 14:29most of the money for the first That's
530. 14:31They sell you on the idea of refinancing
531. 14:34your house, getting doing a refi
532. 14:38based on the lower payment that you'll
533. 14:39have. But their incentive is not the
534. 14:42lower payment, it's restarting the
535. 14:43clock.
536. 14:44>> And I'll mention this too so people cuz
537. 14:46some people will say a lot of I'll just
538. 14:47dump my money into my mortgage. And I'll
539. 14:48always say, please go do that. Please
540. 14:51don't. [laughter]
541. 14:52Please go do that and tell me what's
542. 14:53going to happen. Cuz you go put Let's
543. 14:54say you're taking your savings or people
544. 14:56take their emergency fund emergency fund
545. 14:58and put it onto a mortgage. It is
546. 15:00trapped, it's locked. You can't touch
547. 15:02it. You lose a job an emergency comes
548. 15:04up, you can't touch it again. And your
549. 15:06payment didn't go down. Why did the
550. 15:08payment not go down? You just paid the
551. 15:10principal down, the payment was fixed
552. 15:11cuz it was amortized.
553. 15:13>> from the beginning. So you pay no matter
554. 15:14how much you pay the principal down, the
555. 15:15payment's going to stay the same until
556. 15:17the mortgage is done.
557. 15:17>> That's exactly right.
558. 15:18>> Yeah.
559. 15:19>> And one thing I want to note on is you
560. 15:21talked about the second lien HELOC. So
561. 15:22this is not an exaggeration. 99.9%
562. 15:25of people when you
563. 15:27loan officers and I I've trained over
564. 15:2875,000 myself. When they hear about
565. 15:30this, they know about a second position
566. 15:32HELOC. The way it was created, there's a
567. 15:34mortgage
568. 15:35and a second lien HELOC, there's two
569. 15:37loans that you now have to pay for.
570. 15:39>> Yes.
571. 15:39>> We want to get people into a first
572. 15:41position HELOC where we remove it
573. 15:42completely. We eliminate it. No more
574. 15:44mortgage whatsoever.
575. 15:45>> And and by the way, second a first
576. 15:47position HELOC is better than a second
577. 15:48position HELOC. I I both I have a second
578. 15:50position HELOC on my house in
579. 15:51Pennsylvania, but it became the first
580. 15:53position HELOC cuz I used my second
581. 15:55position HELOC to pay off my loan
582. 15:56>> [laughter]
583. 15:56>> to pay off my my loan on my house. That
584. 15:57house is also like it's like mortgage
585. 16:00free. I have two mortgage free houses
586. 16:02because of HELOCs. So I used a And
587. 16:05what's interesting is the house that I
588. 16:06had in Pennsylvania when I bought it I
589. 16:07paid $178,000 for it. Um eventually the
590. 16:10appreciation gave me the ability to get
591. 16:13a $70,000 home equity line of credit on
592. 16:15it.
593. 16:15>> Okay.
594. 16:15>> Right? But it's the second it's it's the
595. 16:17second position. So usually if I max it
596. 16:19out, the payment would only be $600.
597. 16:21Right? It'd be nothing. But, when I use
598. 16:23When I use that um
599. 16:26uh second position HELOC for other
600. 16:29things, I still have access to the
601. 16:30money. The thing that people don't get
602. 16:32is a mortgage is a trapdoor that you
603. 16:35can't You put money in, you can't get
604. 16:36money out.
605. 16:37>> A mortgage is a trapdoor.
606. 16:39But, a HELOC, especially a first
607. 16:40position HELOC Well, a HELOC is a
608. 16:42revolving door.
609. 16:43>> Yeah, that's right.
610. 16:44>> some in, you can get some out.
611. 16:45>> And if you have the right tools and
612. 16:47strategies to use it, it doesn't touch a
613. 16:50more I mean, it's They're not even
614. 16:51comparable.
615. 16:51>> Right. No, like if you understood what
616. 16:53we understood
617. 16:54>> Oh, yeah.
618. 16:55>> about a HELOC
619. 16:57you would get your HELOC today,
620. 17:00regardless of what it inconveniences How
621. 17:01it inconveniences you. It gives you
622. 17:03access Think about this. So, I'm looking
623. 17:05at buying I'm looking at buying like
624. 17:09some land some mountainous land in the
625. 17:12Ozarks of Arkansas.
626. 17:13>> Oh, come on.
627. 17:14>> Okay. Um some people are like, "Well, I
628. 17:16>> I don't have my I have family there. I
629. 17:17love it. Those are nice
630. 17:19>> I don't have any family in Arkansas.
631. 17:20That's
632. 17:20>> [laughter]
633. 17:21>> That's not why. I'm just I'm like
634. 17:23based on my research, that'd be a good
635. 17:25place for me, based on my objectives, to
636. 17:27buy some land. When When I find a
637. 17:28property I like, I don't have to wait 14
638. 17:30weeks to close on something. I can just
639. 17:31write a check from my home equity line
640. 17:33of credit and pay it write a check for
641. 17:34it and pay for it. And then all I got to
642. 17:36do is
643. 17:36as I keep acquiring wealth, just keep
644. 17:39paying the HELOC back down. It's It
645. 17:41gives you instant access For my HELOC is
646. 17:43$2 million.
647. 17:44>> Mhm.
648. 17:45>> Right? And I don't owe anything on it.
649. 17:46So, literally, I could write a check on
650. 17:48my HELOC today for $2 million and it
651. 17:50would clear.
652. 17:51>> You got your own bank.
653. 17:51>> I got my own bank. I have a bank.
654. 17:53I don't need an underwriter.
655. 17:54>> Nope.
656. 17:55>> And I got my other $70,000 HELOC, plus I
657. 17:57got $30,000 line of credit with my bank,
658. 18:00plus I've got my American Express card,
659. 18:01which I can do up to $500,000. Like, I
660. 18:04have access to almost $3 million on my
661. 18:08on my signature that I don't have to
662. 18:10think about. So, if I find a deal that
663. 18:13requires speed I'm there.
664. 18:15>> Mhm.
665. 18:16I'm with you. Yeah. For the For the
666. 18:18average American, what Cuz some people
667. 18:19will go, "Oh, well, that only works for
668. 18:21a a Myron Golden or someone who has a
669. 18:23lot of capital." Understand I started as
670. 18:25a worship pastor. We together between my
671. 18:28wife and I were making about $140,000 a
672. 18:30year. Still still pretty good money, but
673. 18:32not rich money at all. And we did it
674. 18:35with that income because we learned how
675. 18:37to sit our income against the balance
676. 18:40daily.
677. 18:40>> Right. And we offset our expenses.
678. 18:43>> Yes, because that's the part people
679. 18:44don't get. When you use when you get a
680. 18:47HELOC in the first position, instead of
681. 18:49getting your direct deposit for your
682. 18:50paycheck into your bank, now you get
683. 18:52your direct deposit into your home
684. 18:53equity line of credit. So, every time
685. 18:55you get paid
686. 18:56that your paycheck is going into your
687. 18:59HELOC, and then you write checks for
688. 19:01your bills from your HELOC. You you're
689. 19:03changing your habits. Same money,
690. 19:07totally different outcome.
691. 19:08>> That's it.
692. 19:09Really, it's just like if I look at
693. 19:10money's going to be sitting here say say
694. 19:11you get paid $8,000 a month, $14,000, it
695. 19:14doesn't matter. It's going to that
696. 19:15checking account, and what's it do
697. 19:16there?
698. 19:16>> Sits.
699. 19:17>> Nothing.
700. 19:18>> Nothing. It ain't making any money. It
701. 19:19ain't
702. 19:19>> Or that exact same money can sit over
703. 19:22here and lower that daily balance and
704. 19:24save you money not monthly, save you
705. 19:26money daily. Literally every 24 hours
706. 19:29it's knocking the interest down.
707. 19:30>> Yes.
708. 19:30>> And then yes, you pay your expenses, but
709. 19:32it don't come up the full amount because
710. 19:33you're about to get paid again.
711. 19:34>> And that money that paycheck's going in
712. 19:35there.
713. 19:36>> So, I look at it as like a seesaw that
714. 19:37just kind of trends downward the whole
715. 19:38time.
716. 19:39>> That's a really good analogy.
717. 19:41>> There we go, baby.
718. 19:42>> [laughter]
719. 19:42>> You forgot to go
720. 19:44>> I don't know if I do that.
721. 19:47I don't know if I try right now.
722. 19:48>> Okay, yeah. Yeah, we we ain't going to
723. 19:50make you try that on camera. Okay. So,
724. 19:52so so [snorts] the reality is
725. 19:54like
726. 19:55this By the way,
727. 19:57this is not a strategy for dum-dums.
728. 19:59>> No, not at
729. 19:59>> This is a strategy for people who are
730. 20:01financially responsible,
731. 20:03and they have financial discipline,
732. 20:06but they want to have more access to
733. 20:09opportunity
734. 20:11as their business, their life matures.
735. 20:14They want to have more access to
736. 20:15opportunities.
737. 20:17I can think of nothing that I've ever
738. 20:19done in my life and I've done a lot of
739. 20:21things in my life
740. 20:23that has given me more access as a
741. 20:25consumer
742. 20:27to my own wealth.
743. 20:28>> Yeah.
744. 20:29I agree.
745. 20:29>> Mind-blowing.
746. 20:30>> I agree. It It It opens a few doors. It
747. 20:32gives more freedom now.
748. 20:34>> Mhm.
749. 20:35>> It helps you buy back a ton of time,
750. 20:37which a ton of time nobody's going to
751. 20:38argue time is more valuable than
752. 20:39anything we have on this earth. So, if
753. 20:41we can buy help people buy back 5 10 15
754. 20:4420 25 years of their life,
755. 20:46that's transformational in itself.
756. 20:48>> 100%.
757. 20:48>> And it's going to save them a ton of
758. 20:49money.
759. 20:50>> Indeed.
760. 20:50>> So, all three are better than a
761. 20:52mortgage.
762. 20:53>> to save them a ton of money and they
763. 20:54still have access to the money. See, the
764. 20:56I I I don't think I don't think people
765. 20:58are really wrapping their minds around
766. 21:00how valuable it is to pay bill and still
767. 21:02have access to the money you paid the
768. 21:04bill with. That's mind-blowing.
769. 21:06>> That's That's That's the What happened?
770. 21:09Mind-blowing.
771. 21:10>> there.
772. 21:10>> Yes.
773. 21:10>> So, I've had clients literally lose
774. 21:12their jobs, okay? If you lose your job
775. 21:14and you call your mortgage company and
776. 21:15go, "Hey, mortgage company, I got
777. 21:16$200,000 of equity. I need access to it.
778. 21:18I lost my job."
779. 21:19>> Mhm.
780. 21:20>> Do you think they're going to give you
781. 21:20your money?
782. 21:21>> [laughter]
783. 21:21>> They're going to laugh at you and you're
784. 21:23lost.
785. 21:23>> You better pay that payment or they're
786. 21:24foreclosing the home.
787. 21:25>> Exactly.
788. 21:26>> And a HELOC, I've had clients lose their
789. 21:28job. One came up to me after church
790. 21:29crying, and I'm like, "Oh dear lord,
791. 21:31it's going to be It's going to be a bad
792. 21:32prayer request right now." And they came
793. 21:33up and they said, "Thank you so much. We
794. 21:35maintained and saved our home and got
795. 21:37through this journey. We were able to
796. 21:39find another home because we had access
797. 21:40to the capital that we worked for."
798. 21:41>> 100%.
799. 21:42>> That is That is
800. 21:43>> That's game That's a life-changer.
801. 21:44>> That is.
802. 21:45>> That's a life-changer.
803. 21:45>> That's real. And so, it is not for every
804. 21:47single human, but if you if you can't
805. 21:49afford your mortgage and you're going
806. 21:50backwards on your mortgage,
807. 21:52>> Yeah, you got to change your strategy.
808. 21:53>> It's not It's not it either.
809. 21:54>> Change your strategy.
810. 21:54>> But if you're actually someone
811. 21:55>> Sell that house and get out from under
812. 21:56that crazy unit and go get yourself
813. 21:58figure out how to get ahead. Move in
814. 21:59with your brother and your sister-in-law
815. 22:01[laughter]
816. 22:01and y'all split the bills and y'all save
817. 22:04y'all money like people do when they
818. 22:05come here from a foreign country. And 14
819. 22:07families live in one house and each of
820. 22:08them gets rich individually.
821. 22:10>> [laughter]
822. 22:11>> But we got too much pride as Americans.
823. 22:13>> That's it.
824. 22:13>> Anyway. Anyway.
825. 22:14>> So, the discipline is required and the
826. 22:15strategy is required. That's what we
827. 22:17That's what I'm constantly trying to
828. 22:18help people with cuz I I mine was down
829. 22:19to 8 and 1/2 years. I got it down to 3
830. 22:21and 1/2 from the strategies I feel like
831. 22:22the Lord's given me. There's so many
832. 22:24ways we can maximize this.
833. 22:26>> Oh, it's it's it's mind-blowing. Like
834. 22:27for instance, one of the things I could
835. 22:29do right now, like this building I still
836. 22:31have a mortgage on. I think I probably
837. 22:33owe 500 and something thousand dollars.
838. 22:34Now, I borrow I I I bought this building
839. 22:37for $625,000 4 years ago and I still
840. 22:40probably owe 500 and something thousand
841. 22:41dollars on it.
842. 22:42>> That's a lot of money in the
843. 22:43renovations, so
844. 22:44>> Yeah. That there's that.
845. 22:45>> But I could literally pay this mortgage
846. 22:47off tomorrow
847. 22:48with my HELOC.
848. 22:50Whatever my interest rate is on this
849. 22:51building,
850. 22:52I'd be saving that much money by paying
851. 22:54it off.
852. 22:55>> You want to touch on interest arbitrage
853. 22:56on what you're talking about?
854. 22:58>> Go ahead. Let's touch on this a little
855. 22:59>> to try to use big terminology, but
856. 23:00interest arbitrage is what banks do to
857. 23:01be in business, right? They say when
858. 23:03people get a CD or a money market or
859. 23:05whatever they're going to get, normally
860. 23:06that CD, let's say the CD is paying 3
861. 23:08and 1/2%. We give them the money
862. 23:10>> Mhm.
863. 23:11>> $50,000 for 3 and 1/2%. Man, I'm making
864. 23:133 and 1/2%. What does the bank do with
865. 23:15that money?
866. 23:15>> They're loaning it to somebody else.
867. 23:17>> Fractional lending. And they're making
868. 23:18money on your money instead of you
869. 23:20learning to make money on your money.
870. 23:21>> Exactly.
871. 23:22>> money. I want to learn to make money. I
872. 23:24want to be educated properly.
873. 23:25>> Exactly.
874. 23:26>> way I look at everything in life, if
875. 23:28it's an opportunity, then it doesn't
876. 23:29have to equal my 7% to beat it. If it's
877. 23:31an emergency, I'm going to spend it no
878. 23:33matter what anyways. At least I now have
879. 23:34it. I have access to it. For
880. 23:36investments, I literally have it's it's
881. 23:38the wisdom and common sense. Use wisdom
882. 23:39and common sense and good judgment. I
883. 23:41go, is that investment going to pay me
884. 23:4213, 14%? I'm happy to loan out 7%, get
885. 23:45that delta, get that difference. And
886. 23:47that's free passive income now that I
887. 23:49have coming in that's going right back
888. 23:50to the HELOC.
889. 23:51>> Take accelerate that process. That's it.
890. 23:54>> This is This stuff is game changer, bro.
891. 23:56>> There's light bulb after light bulb,
892. 23:57too. It gets going to the weeds over
893. 23:58here.
894. 23:59>> Right. Right.
895. 23:59>> [laughter]
896. 23:59>> But But like
897. 24:01people could literally fund the rest of
898. 24:03their lives
899. 24:05just by using their money in this new
900. 24:07way even if they don't make 10 cents
901. 24:09more per year.
902. 24:10>> Exactly. It's the same money is working
903. 24:12a different My my best friend, man, he
904. 24:14paid off his his home, his lake house, a
905. 24:16vacation property, and he's using all
906. 24:18that to invest in other properties that
907. 24:19are bringing him in thousands and
908. 24:20thousands per month.
909. 24:21>> Passively.
910. 24:22>> Exactly. So, now you're the bank.
911. 24:24>> That's it.
912. 24:25>> And you're going to approve you.
913. 24:26>> That's it.
914. 24:27>> [laughter]
915. 24:29>> Be better.
916. 24:30We have an approval problem there.
917. 24:31There's an issue.
918. 24:32>> Yeah. Yeah.
919. 24:32>> [laughter]
920. 24:32>> You don't approve you. Like I I don't
921. 24:34have to worry about whether I'm going to
922. 24:35get approved.
923. 24:36>> That's it.
924. 24:37>> I mean I want you to think for up to $2
925. 24:38million.
926. 24:39I don't have to think about whether or
927. 24:40not I'm going to be approved. I know I'm
928. 24:41going to be approved.
929. 24:42>> I'll tell you like so I cuz you know you
930. 24:45have to keep up with the Joneses
931. 24:46mentality. I'm not doing that. In the
932. 24:48last 3 years, oh 4 years, I've I've
933. 24:50switched houses three times. I've built
934. 24:52the nicest home we've had. People like
935. 24:54may might be asking why you building a
936. 24:55bigger home. I'm building my line of
937. 24:57credit a free access to capital. So the
938. 24:59more my home is worth, the bigger access
939. 25:01to capital that I have whenever I need
940. 25:02it for opportunities.
941. 25:03>> 100%.
942. 25:04>> Had nothing to do with anybody else. I'm
943. 25:05like I'm building this home and I'm
944. 25:07going to try to get this as high as
945. 25:08possible. So I worked with appraisers to
946. 25:10get it as high as possible. Now I have
947. 25:11access to more line of credit.
948. 25:13>> There you go.
949. 25:15>> I do that one, right?
950. 25:17>> [laughter]
951. 25:17>> Okay.
952. 25:18>> That's it.
953. 25:18>> But because because what this is this is
954. 25:21what this is what it means to be
955. 25:23financially literate.
956. 25:24>> Mhm.
957. 25:25>> So
958. 25:26I remember the first time I went to
959. 25:27Israel.
960. 25:28>> I've been in Israel.
961. 25:29>> Oh man.
962. 25:29>> Yeah.
963. 25:30>> It's awesome.
964. 25:30>> Yeah. It is [snorts] awesome. So I
965. 25:32remember the first time I went to Israel
966. 25:34and we landed at the airport. I'm hungry
967. 25:35as can be.
968. 25:37I'm walking around. I Okay, I'm going to
969. 25:38go to this little shop.
970. 25:39>> Shawarma.
971. 25:40>> Well, I didn't get shawarma.
972. 25:41>> That's all I got.
973. 25:42>> It's shawarma. It's shawarma.
974. 25:43>> Even the hot dog is shawarma.
975. 25:45>> [laughter]
976. 25:45>> Um but I didn't get shawarma. But but I
977. 25:48bought a couple things and she told me
978. 25:49how much it was. And I went to the I
979. 25:50already got went to the currency
980. 25:52exchange and got some shekels. And so
981. 25:53I'm like
982. 25:55she gave me back some change. I don't
983. 25:56know if THEY GAVE ME BACK THE RIGHT
984. 25:57AMOUNT OF CHANGE OR NOT. WHY? BECAUSE I
985. 25:59WAS financially illiterate in that
986. 26:01country. I didn't know how to read the
987. 26:02money.
988. 26:02>> Let's go.
989. 26:03>> Here's the tragedy.
990. 26:04Most people who've been living in
991. 26:05America all their lives don't know how
992. 26:07to read the money.
993. 26:08>> Mhm.
994. 26:09>> And that's why we're making bad
995. 26:10financial decision after bad financial
996. 26:11decision after bad financial decision.
997. 26:13When you learn how to read the money,
998. 26:14you make different choices. When you
999. 26:16make those different choices, you turn
1000. 26:17your life into a premium choice life.
1001. 26:20>> Mhm.
1002. 26:21>> I would even go as far as we need to
1003. 26:22stay in the lane. We can we can shift
1004. 26:24lanes, but we there's experts in
1005. 26:26different fields, right? So it it it's
1006. 26:28mind-boggling to myself and my team when
1007. 26:30people go I'm going to go ask my CPA
1008. 26:31about this."
1009. 26:32>> Right. Like
1010. 26:32>> And
1011. 26:32>> I'm like I'm like, "Your CPA's probably
1012. 26:34brilliant on taxes.
1013. 26:35>> Right.
1014. 26:35>> Do you know he has no clue how to pay a
1015. 26:37home off faster?"
1016. 26:37>> Right.
1017. 26:38>> They were not taught that.
1018. 26:38>> going to go ask your CPA, ask him how
1019. 26:40fast he paid off his home.
1020. 26:40>> Yeah, that's not belittling. It's just a
1021. 26:42fact.
1022. 26:42>> he hasn't paid it off faster than me,
1023. 26:44>> Yeah.
1024. 26:44>> then he's not your guy.
1025. 26:45>> Or financial advisor.
1026. 26:46>> And this is the challenge you can give
1027. 26:47people. Go find somebody who's paid off
1028. 26:49their home faster than
1029. 26:50>> I like that.
1030. 26:50>> I'm I'm going to challenge everybody
1031. 26:51watching this YouTube video right now.
1032. 26:53All y'all right now watching this
1033. 26:54YouTube video. [laughter]
1034. 26:55>> And yeah.
1035. 26:55>> I don't What if Myron and Tyler don't
1036. 26:57know what they're talking about? I
1037. 26:58challenge you to find somebody who's
1038. 27:00bought a two and a half million-dollar
1039. 27:02house and paid the mortgage off in 25
1040. 27:04months.
1041. 27:05If they haven't done it that fast,
1042. 27:06there's something they don't know.
1043. 27:07>> Mhm.
1044. 27:08I'll preach.
1045. 27:09>> Yeah, that's called
1046. 27:11checkmate, your move. Oh, that's
1047. 27:12[laughter] right. There There is no move
1048. 27:13after checkmate.
1049. 27:14>> That's right. I think the game's over.
1050. 27:15>> That's called That's called game over.
1051. 27:17>> But yeah, that that that the bottom line
1052. 27:18is uh people just have to open their
1053. 27:19minds to other strategies and understand
1054. 27:21>> Exactly.
1055. 27:21>> this is not going to be taught by the
1056. 27:22bank. It's I'm I'm telling you for a
1057. 27:24fact it won't be taught by the bank.
1058. 27:26>> They'll tell you it can't work.
1059. 27:27>> That's right. Or they'll find some
1060. 27:28they'll find a bank that says something
1061. 27:30similar and they'll be paying a lot more
1062. 27:31than they're paying for what
1063. 27:33>> And I've got good relationships with my
1064. 27:34banks.
1065. 27:35>> Yeah.
1066. 27:35>> You know why? Cuz I put a whole lot of
1067. 27:36money in them. Guess what? They wouldn't
1068. 27:37give me a home first They wouldn't give
1069. 27:39me a home equity line of credit in the
1070. 27:40first position.
1071. 27:41>> That's what we talked.
1072. 27:42>> Exactly. And that's why we do what we do
1073. 27:43and that's why we're here.
1074. 27:44>> That's right.
1075. 27:45>> Right?
1076. 27:45>> [laughter]
1077. 27:45>> And so
1078. 27:46everybody needs to understand that the
1079. 27:49difference between where you are and
1080. 27:50where you'd like to be
1081. 27:52is exactly the same as the difference
1082. 27:54between what you know and what you
1083. 27:55haven't learned and implemented yet.
1084. 27:57So, the sooner you learn and implement
1085. 27:59it, the sooner you can get to where
1086. 28:00you'd like to be.
1087. 28:01>> That's good.
1088. 28:02>> Yeah.
1089. 28:02>> I agree with all that. You don't know
1090. 28:03what you don't know.
1091. 28:04>> Right.
1092. 28:05>> [laughter]
1093. 28:05>> And as I said when I was live earlier
1094. 28:08this morning on YouTube, it ain't what
1095. 28:09you know that won't that will hurt you,
1096. 28:11it's what you know that they sell. And
1097. 28:12there's so many people that you're
1098. 28:13asking advice of and they know stuff
1099. 28:15that they ain't sell. So, I'd advise
1100. 28:18listening to people who know,
1101. 28:20not people who don't know.
1102. 28:21>> Amen.
1103. 28:21>> Tyler, I would love to talk to you again
1104. 28:23and I'm sure we're going to have an
1105. 28:24opportunity to do it and I hate to cut
1106. 28:26this conversation short, but I've got a
1107. 28:27doctor's appointment.
1108. 28:28>> I get it.
1109. 28:28>> And I've got to go, but I'm telling
1110. 28:30y'all right now there's going to be a
1111. 28:32link in this video where you can get
1112. 28:33access to Tyler and his team and they
1113. 28:36can evaluate if you've got equity in a
1114. 28:38house
1115. 28:39and you're not financially like like
1116. 28:42upside down,
1117. 28:44they've got strategies that can help you
1118. 28:46pay off your mortgage in a fraction of
1119. 28:48the time and still have access to the
1120. 28:50money.
1121. 28:51So, I'm going to I'm going to highly
1122. 28:52recommend that you click the link in the
1123. 28:54description of this video and figure out
1124. 28:56how you can be mortgage free. Tyler,
1125. 28:58thank you so much.
1126. 28:59>> Appreciate you, my brother.
1127. 29:00>> Appreciate you, my brother. Let's give
1128. 29:01it up for Tyler, y'all.
1129. 29:02>> Thank you, guys. Thank you.
1130. 29:03>> [applause]