A friend told me about velocity banking and sent me this link. I have applied this method 2 years ago and have paid down 60% of my mortgage. I am about 2 yrs away from paying it off, all the while being able to paying my son's college tuition and household bills to cover a family of 6 on a single income household. I will say this takes a lot of discipline and money management but it works. I have found it very helpful to look for financial institutions that offer a introductory rate for a fixed amount of time. I was able to get a HELOC for 1.25% fixed for 2 yrs and now its variable at 7.75%. Thank you Kwak brothers!
It's wonderful to hear about your success with the strategy, and thank you for sharing your experience! Your story is an excellent example of how disciplined cash flow management can make a significant difference in paying down a mortgage while still handling other financial responsibilities. It's clear you've approached this with a smart strategy, securing a low introductory rate on your HELOC, and effectively navigating the transition to a variable rate. Your ability to balance paying your son's college tuition and managing household expenses for a family of six on a single income is indeed impressive and could serve as inspiration to many who are considering this approach. It also underscores the importance of discipline and financial planning, which are key elements of what we teach here at Accelerated Banking. Thank you and you are very welcome!
Great video! That’s exactly what we have been doing for a couple years now...... started with a ploc , graduated to second lien HELOC and currently using a first lien..... even used it to acquire additional properties.....
I have a 1st lean heloc for 3 years now. Kills your credit which hurts your DTI. Use a second lean heloc and utilize the same effective accelerated payoff. Credit score safe.
Just be careful, it does work, but your litterally putting all of your money into your mortgage payment. You home line of credit isnt a savings like they suggested. If you wanna say that so are credit cards.
Paying extra principle on my mortgage will not change the amount of my monthly mortgage payment, ONLY the ratio of principle vs interest for each of those payments. This strategy only changes my free cash AFTER my mortgage is paid off COMPLETELY ( albeit early, and with the benefit of paying signifigent less interest over the term of the mortgage), SO how would I be able to contribute more and more money to the principle of the HELOC loan over time when my bills have NOT changed? Please clarify your following statement regarding the 2nd line HELOC: "The banks are going to calculate the interest on $3000 balance instead of the $8000. That difference in the $5000 balances what's going to save you An extraordinary amount of money in terms of interest, AND ANY INTEREST THAT YOURE NOT PAYING BECAUSE OF THIS EFFECT, that money can now contribute to the principle balance of the heloc loan even more, so every month you're going to see a compounding effect" of this.
Notice there is no reply. They make their money on “courses” or “couching”. He is talking fantasy. 1. Who gets paid once per month right before your interest is calculated. 2. Who has $20,000 in savings? 3. If you are only making $5,000 per month then you can’t live on that so how are you only spending $3,000 of it and having extra $2,000 to pay your mortgage. 4. So this is all fluff and the “great” comments sound scripted. Bottom line these guys took an idea and are trying to sell corses and couching so they can pay off their mortgages early.
The problem with your program is you get rid of your saving. If you ever have an emergency(bad water heater, car problems ect.) You end up needing to go into debt(heloc debt) it is risky. I just want people to understand, not saying its not good but it took me awhile to fully understand. Now i fully get it
Sam, when you mentioned putting all of your income into the HELOC; does that include my W2, rental income, and everything I have sitting around in my checking and savings account? If I dump everything into the HELOC, what happens when I try to acquire another property and the lender is asking for 6 months reserve on my entire portfolio? Newbie here, and you've got my full attention!
Correct! But do keep in mind of accounting ramifications for your business/rental... I would consult with an accountant to make sure there's proper documentation when doing this strategy!
has anybody ever met or talked to someone who took out a heloc 7 years ago and now has paid off their mortgage. This sounds great in theory, but I have never seen anybody actually pay off the mortgage in 7 years.
I have not, although I plan to do a modified version. I can't get a heloc right now so I plan to use a different credit line. Same principle. I spoke to one of their team members several months ago and if you work with them I believe they get you set up with a first position heloc. That seems very confusing to me, but apparently they have a lot of experience with them. Let us know if you try it and how it goes along.
Sam, awesome videos. Do you have any videos that show whether HELOC can work for a 15 year mortgage? We've got 355k left to pay on the mortage (15yr fixed at 1.875%, currently have $410k in equity and dumping extra $1000 principal monthly). After playing around with your calculator, it seems like the only way to benefit from this strategy in my situation would be if I took out very small amount with a HELOC at a time (~$2500-5000). Any comments or tips would be appreciated, thanks!
At 1.875% interest why are you trying to pay off your house faster? You could put that extra $1000 a month into a 5% CD and do much much better for yourself.
The scenario you described with a Heloc and mortgage and 1 credit card i am currently at but i am not sure aboit the dates on my CC so that i don't get charged interst. I would like to know if you help consulting people?
Yeah, probably depends on the the exact calculation method of the HELOC. If it's average daily balance, if the HELOC sits at $3000 for 29 days and $8000 for 1 day, the average daily balance would be $3167 that interest is calculated off of. If you're not drawing more than $10k at a time, this probably ends up being less than $400 in interest savings in a year. Helpful for sure, but not earth shattering. I think the bigger thing is attacking the principle on your Mortgage, which gets you to pay it off sooner and save you mortgage interest payments in the long run.
in addition to paying towards the mortgage. Is it advisable to RECAST the loan. what are the potential pros and cons of recasting the loan. are there any limitations?
From the time a paycheck gets direct deposited into my checking account in the morning and the money for a bill payment goes out in the afternoon to the payee and the payment gets to the payee is a four day process and during that four day lag is a lot of interest that I'm payee to the payee because of the time delay. Anyway that we can just skip the whole checking account middle man and direct deposit a paycheck direct to the HELOC?
So you are constantly paying down the principal mortgage in $5000 dollar chunks every month and then paying the heloc down with all of your income. Does your heloc increase as you gain more equity in the home? Is the point to reduce the interest on the mortgage since it is the highest balance? Sounds like another strategy called "truth in equity"
Question...Since JP Morgan and Wells Fargo have temporarily stopped HELOC, how would I go about paying off my mortgage with two different banks? I have a money lender who uses JP Morgan to pay off the principle balance, but if I wanted to get a HELOC loan with bank of America, how do I pay off that mortgage?
What about using 80% of your emergency fund as a heloc? So, if you have 10k for emergencies, paying 8k towards principal, and then rebuilding the emergency to 10k and then repeating the process? That way you still have some in case of emergencies, and you avoid interest on the HELOC. Curious on your thoughts.
I just a Dave Ramsey video that says HELOCS are a disaster in the making, high risk because they usually have a 2 year term I believe he said and the banks can call them due or foreclose. I've seen or heard no mention of this in this video.
@@DayClanTribe there are risk but they do not have a 2 year term. Banks can call them due or freeze them or close them but it’s done in certain situations. I wouldn’t use these kinds of strategies if you don’t have a fairly high paying job and savings account cushion.
Sam, here's a scenario, a person owes 189K in a 23 year mortgage, 6.65%. The person just completed a ch. 13 bk and isn't able to secure a Heloc. He is able to secure a $5,200 line; credit card only. This borrow net's $6,100/month. He wants to pay off his home loan utilizing his only "line of credit." He was unable to obtain a PLOC. There is a 2 year waiting period after a ch. 13 bk to obtain a conventional mtg, or Heloc. The borrower is avoiding FHA refi due to the exorbitant fees. Monthly MTG paying is $1490, no car payment, no other debt other than the mtg and credit line. What advice would you give this person?
A process to help you completely automate the strategies with the right bank, an AI software that tracks every move and 1:1 on going help. First, watch out complimentary seminar: acceleratedbanking.com/webinar
Sam, Bank of America has a no fee Heloc but the payment is principal and interest payment. Can I add more every month as a payment than what the payment is? Also, does it matter that they require a principal and interest payment if the interest is still calculated on a average daily balance? Thanks.
I am building a home. Mortgage is $340,000. I have a LOC with my bank for $20,000 @10% interest rate. My plan is do do the velocity banking strategy right away. Can I do this with a LOC with 10% interest?
The Kwak Brothers I’m not sure. I don’t know how much equity I will have in the home after it is build. Would you recommend a first position HELOC instead? If so why? Less interest?
Is this faster and cheaper than an All in One loan? I did a simulator and the payments were great, but it would take about 10 years to pay off my mortgage, vs. 5-7 with this strategy.
I can tell you that I financed 337k and my principal and interest was about $1600 aprox $466 principal and almost $1200 interest and when I changed to a first lien HELOC my interest payment is between 450 and $508 so far and by using velocity banking my entire income is a principal payment,expenses go on a credit card and get paid when needed, cashflow stays in lowering my balance but there if and when I need it
He is talking fantasy. 1. Who gets paid once per month right before your interest is calculated. 2. Who has $20,000 in savings? 3. If you are only making $5,000 per month then you can’t live on that so how are you only spending $3,000 of it and having extra $2,000 to pay your mortgage. 4. So this is all fluff and the “great” comments sound scripted. Bottom line these guys took an idea and are trying to sell corses and couching so they can pay off their mortgages early.
I appreciate your skepticism and understand where you're coming from. It's important to challenge new ideas and seek clarity. To address some of your concerns: Payment Frequency: The strategy accounts for various payment frequencies, not just monthly. It's all about the effective management of cash flow, not necessarily when it comes in. Savings: Not everyone has significant savings, and the strategy does not require $20,000 in savings to get started. It's about using your regular cash flow smartly. Income and Living Expenses: The example you provided was simply that-an example. It demonstrates potential savings and cash flow but is not prescriptive. Everyone's financial situation is different, and the strategy is tailored to each individual's unique circumstances. Feedback & Courses: Feedback from those who have attended the seminars and from clients who have implemented the strategy is varied and real. As for the courses and coaching, they are part of a comprehensive approach to education and financial empowerment. If you're looking for a more in-depth explanation and real-life examples, you might find our webinar informative. You can register for it here: acceleratedbanking.com/webinar-registration-515174331635781964831?sl= Thank you for your input, and we always welcome a range of perspectives as it helps us to improve continually.
@@TheKwakBrothers I did extensive research. The issue is I paid higher interest than a fixed rate contentional mortgage but paid off more of my house. The problem is, I would have rather saved the money interest and allocated those funds in other assets that are not my primary dwelling.
1st position HELOC sounds like a horrible idea. You have a variable higher interest loan. There is no way that works out better then keeping a standard fixed rate 1st...
I understand your concern about higher variable rates. However, the key is how you manage your cash flow. By using your paycheck to manage the HELOC balance, it actually helps save on interest and payoff time, even if the rate is higher. For a detailed breakdown of this approach, check out our free webinar: acceleratedbanking.com/free-virtual-class
Link doesn't work. Your cash flow example doesn't make any sense when your loan of 200k plus is charging you monthly interest. You save on cash flow for your monthly expenses and you still pay a higher rate on the rest of the balance? This strategy will save you money on a smaller balance 2nd position with your cash flow, that little savings is gone if the entire balance of your loan is charging you a higher rate the whole time you are paying it down.
@@bens3134 Oops! Please try again! You're actually on to something. What we find to be true is that the 2nd lien HELOC often is the "go-to" choice currently due to the higher rate environment. The logic behind that is the interest accrual. A smaller balance will hit "0" more frequently which turns to decrease in total interest accrual
That makes sense in a 2nd position. But if you have a 1st position with hundreds of thousands of dollars, it's not hitting 0 every month. The only way a 1st position heloc makes any sense is if you could get one for a lower rate than a normal loan. That might happen for a 6 month promo, but not longer than that.
This is all good until your HELOC freezes like what happened in 2008/2009. I had 3 HELOCs frozen by the banks... It’s all good until this economy collapses again. And it is ready to fail.
There’s ways to leverage safely and not have that happen. The only reason banks would ever freeze it is if you stripped too much equity and actually got yourself more into debt. (Even if it was a performing Asses) Either go for a 1st position which is little to no risk or keep your utilization low on the 2nd.
Had to be using it to buy nonsense, the properties probably didn’t have equity, cuz if you use it responsible, buy right, only use half and use the half to pay down principal only and not buy bs you would be just fine and if for some reason the house drops in value you would be safe......
2 HOLES IN YOUR STRATEGY!!... I'M NOT GETTING all my 5000 income in one day.. also you paid the 5000 on the HELOC and you still have to pay on the credit card...3000 balance...CHECK ME!
A friend told me about velocity banking and sent me this link. I have applied this method 2 years ago and have paid down 60% of my mortgage. I am about 2 yrs away from paying it off, all the while being able to paying my son's college tuition and household bills to cover a family of 6 on a single income household. I will say this takes a lot of discipline and money management but it works. I have found it very helpful to look for financial institutions that offer a introductory rate for a fixed amount of time. I was able to get a HELOC for 1.25% fixed for 2 yrs and now its variable at 7.75%. Thank you Kwak brothers!
It's wonderful to hear about your success with the strategy, and thank you for sharing your experience! Your story is an excellent example of how disciplined cash flow management can make a significant difference in paying down a mortgage while still handling other financial responsibilities. It's clear you've approached this with a smart strategy, securing a low introductory rate on your HELOC, and effectively navigating the transition to a variable rate.
Your ability to balance paying your son's college tuition and managing household expenses for a family of six on a single income is indeed impressive and could serve as inspiration to many who are considering this approach. It also underscores the importance of discipline and financial planning, which are key elements of what we teach here at Accelerated Banking.
Thank you and you are very welcome!
MAKE SURE YOUR INCOME IS MORE THAN YOUR EXPENSE, EVERY MONTH. VERY IMPORTANT.
🙄
Great video! That’s exactly what we have been doing for a couple years now...... started with a ploc , graduated to second lien HELOC and currently using a first lien..... even used it to acquire additional properties.....
Niceeee!! Way to go!
I just graduated to a second lean HELOC
I have a 1st lean heloc for 3 years now. Kills your credit which hurts your DTI. Use a second lean heloc and utilize the same effective accelerated payoff. Credit score safe.
You’re awesome dude. Can’t wait to try this strategy
Thank you!
Just be careful, it does work, but your litterally putting all of your money into your mortgage payment. You home line of credit isnt a savings like they suggested. If you wanna say that so are credit cards.
@@marioeid930 that’s a fair point
I’m in the process of buying a new home, and I’m prequalified with an All In One Loan. It’s the only ‘mortgage’ I’ll ever do now.
Boom! That's what I'd like to hear!
Paying extra principle on my mortgage will not change the amount of my monthly mortgage payment, ONLY the ratio of principle vs interest for each of those payments. This strategy only changes my free cash AFTER my mortgage is paid off COMPLETELY ( albeit early, and with the benefit of paying signifigent less interest over the term of the mortgage), SO how would I be able to contribute more and more money to the principle of the HELOC loan over time when my bills have NOT changed?
Please clarify your following statement regarding the 2nd line HELOC:
"The banks are going to calculate the interest on $3000 balance instead of the $8000. That difference in the $5000 balances what's going to save you An extraordinary amount of money in terms of interest, AND ANY INTEREST THAT YOURE NOT PAYING BECAUSE OF THIS EFFECT, that money can now contribute to the principle balance of the heloc loan even more, so every month you're going to see a compounding effect" of this.
Notice there is no reply. They make their money on “courses” or “couching”. He is talking fantasy. 1. Who gets paid once per month right before your interest is calculated. 2. Who has $20,000 in savings? 3. If you are only making $5,000 per month then you can’t live on that so how are you only spending $3,000 of it and having extra $2,000 to pay your mortgage. 4. So this is all fluff and the “great” comments sound scripted. Bottom line these guys took an idea and are trying to sell corses and couching so they can pay off their mortgages early.
The problem with your program is you get rid of your saving. If you ever have an emergency(bad water heater, car problems ect.) You end up needing to go into debt(heloc debt) it is risky. I just want people to understand, not saying its not good but it took me awhile to fully understand. Now i fully get it
So that begs the question, what value does using a HELOC provide at all?
Sam, when you mentioned putting all of your income into the HELOC; does that include my W2, rental income, and everything I have sitting around in my checking and savings account? If I dump everything into the HELOC, what happens when I try to acquire another property and the lender is asking for 6 months reserve on my entire portfolio? Newbie here, and you've got my full attention!
Correct! But do keep in mind of accounting ramifications for your business/rental... I would consult with an accountant to make sure there's proper documentation when doing this strategy!
I'm planning on having my rental have its own heloc and having a separate heloc for myself. Thoughts?
has anybody ever met or talked to someone who took out a heloc 7 years ago and now has paid off their mortgage. This sounds great in theory, but I have never seen anybody actually pay off the mortgage in 7 years.
I have not, although I plan to do a modified version. I can't get a heloc right now so I plan to use a different credit line. Same principle. I spoke to one of their team members several months ago and if you work with them I believe they get you set up with a first position heloc. That seems very confusing to me, but apparently they have a lot of experience with them. Let us know if you try it and how it goes along.
I love the Kwak brothers HELOC education 👍🏼🙏🏽❤️👌🙌🏼👏
Thanks Ty!!!
Can you make another video about what to do when your 10 year draw period expires?
But how do we get a heloc big enough to pay off our mortgage to begin with?
Love it Sam! I'm on my way to get my house paid out in less than 5years
Nice!!!
Ohh that marker is making me grind my teeth!!! 😬😬 sheesh but great info tho I’m looking to set mines up as well
You should!
Sam, awesome videos. Do you have any videos that show whether HELOC can work for a 15 year mortgage? We've got 355k left to pay on the mortage (15yr fixed at 1.875%, currently have $410k in equity and dumping extra $1000 principal monthly). After playing around with your calculator, it seems like the only way to benefit from this strategy in my situation would be if I took out very small amount with a HELOC at a time (~$2500-5000). Any comments or tips would be appreciated, thanks!
At that interest rate I wouldn't make any extra payments at all
At 1.875% interest why are you trying to pay off your house faster? You could put that extra $1000 a month into a 5% CD and do much much better for yourself.
IF you paid over 15 yrs your total interest is about $40k. Any loan
The scenario you described with a Heloc and mortgage and 1 credit card i am currently at but i am not sure aboit the dates on my CC so that i don't get charged interst. I would like to know if you help consulting people?
I believe the interest on a HELOC is calculated on the daily balance, not on the 30th of the month
Yeah, probably depends on the the exact calculation method of the HELOC. If it's average daily balance, if the HELOC sits at $3000 for 29 days and $8000 for 1 day, the average daily balance would be $3167 that interest is calculated off of. If you're not drawing more than $10k at a time, this probably ends up being less than $400 in interest savings in a year. Helpful for sure, but not earth shattering. I think the bigger thing is attacking the principle on your Mortgage, which gets you to pay it off sooner and save you mortgage interest payments in the long run.
in addition to paying towards the mortgage. Is it advisable to RECAST the loan. what are the potential pros and cons of recasting the loan. are there any limitations?
What happens if you get paid bi weekly? Thank you for the great tip. 😊
From the time a paycheck gets direct deposited into my checking account in the morning and the money for a bill payment goes out in the afternoon to the payee and the payment gets to the payee is a four day process and during that four day lag is a lot of interest that I'm payee to the payee because of the time delay. Anyway that we can just skip the whole checking account middle man and direct deposit a paycheck direct to the HELOC?
So you are constantly paying down the principal mortgage in $5000 dollar chunks every month and then paying the heloc down with all of your income. Does your heloc increase as you gain more equity in the home? Is the point to reduce the interest on the mortgage since it is the highest balance? Sounds like another strategy called "truth in equity"
Question...Since JP Morgan and Wells Fargo have temporarily stopped HELOC, how would I go about paying off my mortgage with two different banks?
I have a money lender who uses JP Morgan to pay off the principle balance, but if I wanted to get a HELOC loan with bank of America, how do I pay off that mortgage?
I’m getting ready to buy a house and how can I acquire HELOC?
What about using 80% of your emergency fund as a heloc? So, if you have 10k for emergencies, paying 8k towards principal, and then rebuilding the emergency to 10k and then repeating the process? That way you still have some in case of emergencies, and you avoid interest on the HELOC. Curious on your thoughts.
OPM is better.... Imo. 🤷♂️
Assuming you follow this plan consistently and you are not irresponsible with the money, what is the worse case sernerio? Can this backfire?
How do you qualify for HELOC?
I just a Dave Ramsey video that says HELOCS are a disaster in the making, high risk because they usually have a 2 year term I believe he said and the banks can call them due or foreclose. I've seen or heard no mention of this in this video.
@@DayClanTribe there are risk but they do not have a 2 year term. Banks can call them due or freeze them or close them but it’s done in certain situations. I wouldn’t use these kinds of strategies if you don’t have a fairly high paying job and savings account cushion.
Aren’t you paying interest on the HELOC which fluctuates when the Fed adjusts the IR?
Yeah but it’s a daily rate and not amortized
wait most people get paid weekly or bi weekly, not monthly can someone explained thanks
I am closing a house in a month and want to do it immediately. Whats the cost to be your client?
Hey Andy, watch the follow-up video and let's schedule a call after: acceleratedbanking.com/webinar?sl=chopmymortgage
Does principal chunking knock off the interest from the back end of the mortgage ???
Sam, here's a scenario, a person owes 189K in a 23 year mortgage, 6.65%. The person just completed a ch. 13 bk and isn't able to secure a Heloc. He is able to secure a $5,200 line; credit card only. This borrow net's $6,100/month. He wants to pay off his home loan utilizing his only "line of credit." He was unable to obtain a PLOC. There is a 2 year waiting period after a ch. 13 bk to obtain a conventional mtg, or Heloc. The borrower is avoiding FHA refi due to the exorbitant fees. Monthly MTG paying is $1490, no car payment, no other debt other than the mtg and credit line. What advice would you give this person?
How do one becomes your client? And what incentives are offered to clients?
A process to help you completely automate the strategies with the right bank, an AI software that tracks every move and 1:1 on going help. First, watch out complimentary seminar: acceleratedbanking.com/webinar
@@TheKwakBrothers how is it not paying extra into the existing mortgage? Aren't you putting litterally all your money into your home?
Do you have a video on how to get this started the Heloc I mean
Hey Juan, go download the calculator and you'll get an invite to a free class
The Kwak Brothers thank ok i will
If you have your first mortgage paid..is there a need to use the heloc other than buying assets?
Great video, does anyone knows of a financial institution that will do Heloc on investment property in FL?
Have you had found any bank ? I would like to that bank for the HEloc for my rental property as well.
Sam, Bank of America has a no fee Heloc but the payment is principal and interest payment. Can I add more every month as a payment than what the payment is? Also, does it matter that they require a principal and interest payment if the interest is still calculated on a average daily balance? Thanks.
I would look for a heloc that requires only interest payments during a 10 year draw period, but allows additional principal payments.
I am building a home. Mortgage is $340,000. I have a LOC with my bank for $20,000 @10% interest rate. My plan is do do the velocity banking strategy right away. Can I do this with a LOC with 10% interest?
Yes! But why not get a 1st lien HELOC?
The Kwak Brothers I’m not sure. I don’t know how much equity I will have in the home after it is build. Would you recommend a first position HELOC instead? If so why? Less interest?
What banks are doing this type of loan for a Va loan?
You are the best!!
Is this faster and cheaper than an All in One loan? I did a simulator and the payments were great, but it would take about 10 years to pay off my mortgage, vs. 5-7 with this strategy.
I just did a all in one loan simulator vs my 20 yr mortgage and my 20 year loan was better.
Great video.... Not quite Mike Adams, but stellar stuff 👍🏻
Here is the big question! How much interest will the lender on the HELOC vs 5-year fixed for example will charge you?
I can tell you that I financed 337k and my principal and interest was about $1600 aprox $466 principal and almost $1200 interest and when I changed to a first lien HELOC my interest payment is between 450 and $508 so far and by using velocity banking my entire income is a principal payment,expenses go on a credit card and get paid when needed, cashflow stays in lowering my balance but there if and when I need it
I get paid weekly, so do I pay into my heloc weekly, or wait and send a lump sum payment for the entire month of income?
Pay it in weekly.
I downloaded your free calculator but it never sent to my email. I like to play around with the numbers.
Hi there!! Can I use my credit card as a HELOC? I have a $30K balance at zero right now and just apply my paycheck there?
No, because when you tap into your credit card line, that's going to be treated as cash advance. 0% APR is mostly for purchase only.
Sam? Do you recommend credit unions fir HELOC’s?
I'm finding that Credit Unions DO better when it comes to the HELOC offerings
How can I become a co-financier for property development?
Yes. You could also be the hard money lender between 8-12%. So many ways to do it. Where are you looking to deploy capital?
He is talking fantasy. 1. Who gets paid once per month right before your interest is calculated. 2. Who has $20,000 in savings? 3. If you are only making $5,000 per month then you can’t live on that so how are you only spending $3,000 of it and having extra $2,000 to pay your mortgage. 4. So this is all fluff and the “great” comments sound scripted. Bottom line these guys took an idea and are trying to sell corses and couching so they can pay off their mortgages early.
I appreciate your skepticism and understand where you're coming from. It's important to challenge new ideas and seek clarity. To address some of your concerns:
Payment Frequency: The strategy accounts for various payment frequencies, not just monthly. It's all about the effective management of cash flow, not necessarily when it comes in.
Savings: Not everyone has significant savings, and the strategy does not require $20,000 in savings to get started. It's about using your regular cash flow smartly.
Income and Living Expenses: The example you provided was simply that-an example. It demonstrates potential savings and cash flow but is not prescriptive. Everyone's financial situation is different, and the strategy is tailored to each individual's unique circumstances.
Feedback & Courses: Feedback from those who have attended the seminars and from clients who have implemented the strategy is varied and real. As for the courses and coaching, they are part of a comprehensive approach to education and financial empowerment.
If you're looking for a more in-depth explanation and real-life examples, you might find our webinar informative. You can register for it here: acceleratedbanking.com/webinar-registration-515174331635781964831?sl=
Thank you for your input, and we always welcome a range of perspectives as it helps us to improve continually.
Paying my house off in 3 years with a 2nd lien position HELOC of $100K
Nice!!!
I did this for a year. It’s a bad strategy. Don’t get scammed - stay away.
What did you do exactly? Did you do this alone and by yourself?
@@TheKwakBrothers I did extensive research. The issue is I paid higher interest than a fixed rate contentional mortgage but paid off more of my house. The problem is, I would have rather saved the money interest and allocated those funds in other assets that are not my primary dwelling.
@@brandonbrooks6780 not a scam or bad strategy. Sounds like you made a poor decision and did something that wasn’t right for your situation.
SMASHING DE LA GRAHAM
When should I even consider getting a HELOC?
A HELOC is VERY versatile. It can be used for many things. It's good to have even if you're not using our strategy
Nice to know. I'm a gospel Rapper, singer, Producer 😉
1st position HELOC sounds like a horrible idea. You have a variable higher interest loan. There is no way that works out better then keeping a standard fixed rate 1st...
I understand your concern about higher variable rates. However, the key is how you manage your cash flow. By using your paycheck to manage the HELOC balance, it actually helps save on interest and payoff time, even if the rate is higher. For a detailed breakdown of this approach, check out our free webinar: acceleratedbanking.com/free-virtual-class
Link doesn't work. Your cash flow example doesn't make any sense when your loan of 200k plus is charging you monthly interest. You save on cash flow for your monthly expenses and you still pay a higher rate on the rest of the balance? This strategy will save you money on a smaller balance 2nd position with your cash flow, that little savings is gone if the entire balance of your loan is charging you a higher rate the whole time you are paying it down.
@@bens3134 Oops! Please try again! You're actually on to something. What we find to be true is that the 2nd lien HELOC often is the "go-to" choice currently due to the higher rate environment. The logic behind that is the interest accrual. A smaller balance will hit "0" more frequently which turns to decrease in total interest accrual
That makes sense in a 2nd position. But if you have a 1st position with hundreds of thousands of dollars, it's not hitting 0 every month. The only way a 1st position heloc makes any sense is if you could get one for a lower rate than a normal loan. That might happen for a 6 month promo, but not longer than that.
This strategy is BS
Why?
Why
This is all good until your HELOC freezes like what happened in 2008/2009. I had 3 HELOCs frozen by the banks... It’s all good until this economy collapses again. And it is ready to fail.
If the anti American radical activist have their way, it could happen. Trump 🇺🇸 2020.
There’s ways to leverage safely and not have that happen. The only reason banks would ever freeze it is if you stripped too much equity and actually got yourself more into debt. (Even if it was a performing Asses) Either go for a 1st position which is little to no risk or keep your utilization low on the 2nd.
Did you use it to buy stuff?
The Kwak Brothers I was leveraging for real estate deals. Partnered up on some multi family projects and loaned out on some other grow opportunities.
Had to be using it to buy nonsense, the properties probably didn’t have equity, cuz if you use it responsible, buy right, only use half and use the half to pay down principal only and not buy bs you would be just fine and if for some reason the house drops in value you would be safe......
2 HOLES IN YOUR STRATEGY!!... I'M NOT GETTING all my 5000 income in one day.. also you paid the 5000 on the HELOC and you still have to pay on the credit card...3000 balance...CHECK ME!
You use the HELOC to pay the credit card.