And get 42 rentals in 10 years....PAID FOR FREE AND CLEAR!
S1 00:02 All right, everybody. So in under 20 minutes, I'm going to be showing you how to get 42 rental properties in 10 years, free and clear, all paid for, as well as lower your mortgage dramatically. Ready, set, go. All right. So when we get paid, the average American salary-- a husband for the wife is $30,000 a year, we're going to go ahead and add that together. That's $60,000 a year. Then we're going to do it in monthly increments, which is $5,000 a month. And when they get paid that $5,000 a month, where do they put it? Inside of the checking account, right? So we have a checking account on this side, the savings account on this side, right? Okay. Well, since that's the case, what happens when we live like that? Do we not have a cash basis that we're living on? And so that's what we're living by. We're living by the cash basis. Now this is what I mean.
S1 01:10 When you have a mortgage payment of $1200, you can't touch that mortgage payment for that month. So I mean, if you do, you're not going to be able to pay the mortgage. All right? So let's go over here where the loans are. You have mortgage payment of $1200 a month. You got a $200,000 mortgage at 6%. You also got a couple cars, right? And you're paying $600 a month on them. So we're going to put that right there. We're also going to have the national average credit card liability is $600 a month, and you have $600 a month right there. And you also have some expenses because you have a cell phone, you got that major data plan, you've got food that you got to take care of, maybe want to do some little dining out and all that. So you got $1200 in expenses right here. You have $1400 left. Where do they teach you to put it? Into the savings account, right?
S1 02:18 Okay. So you have $1400 into your "savings" account. Now the reason I put that in quotations is because the bank can call it whatever they want. It's just an account where you put your money and you feel good about it because they call it savings. But really, it's a lending pool [laughter]. Because if you saved up $10,000 and you want a nice, used minivan, you're not going to touch the $10,000 that you saved up. You're going to go get a loan at 6%. And guess what the bank is going to do. Because all of your savings account, like everybody that's contributed to the savings account, that's part of the lending pool. So your $10,000, they're going to take your $10,000, give it to you, and say, "That'll be 6% interest." That sounds scammy to me. So that's what the savings account is all about. Let's go ahead and give you the $600 a month. We're going to show you what that looks like on the credit card side. So we're going to label this side lines. So lines over on this side, and loans are over on this side. It's going to be very important, all right?
S1 03:27 Say you've got a credit line of $15,000, you've got a balance of $12,000 on the card, and your $600 a month monthly payment at 21%. Now there's a lot of people that are like, "You know what? 6% is better than 21%." But I'm going to show you how 6% over here on this side is actually greater than the 21% by a lot. So anyway, so we have this model right here. This is called the employee mindset model. Because $5000 is going into your bank account, and $5000 is coming out of your bank account. That equals a cash flow of-- what's 5000 minus 5000, guys? Zero. So you have a cash flow of zero right now. Many of us were brought up with the employee mindset, and that employee mindset says, "Well, how much do I make?" And we look at that top number right here, the $5000. While the wealthy mindset is, "Well, how much do I cash flow?" And that's what they're concerned about.
S1 04:35 So we're going to take a look at what the wealthy do in order to utilize their finances and have their money work for them. So instead of using a checking and savings account - that's not what the wealth do - they actually bypass the checking and savings account, and they put all their money into the lines of credit. Now why would they do that? Well, first of all, you see this $600 a month minimum payment that you're making? Well, you no longer have to do that because all the $5000 is going into your line. So you no longer have this payment right here, which means this payment is going to go down here. $600. And because we're not chumps, we're not going to have savings accounts anymore. We're actually going to focus on cash flow, and so now we are up already to $2000 a month in cash flow. So now that we have that, let's graph this whole concept so that we can get a better picture of what we're doing. Let's graph it.
S1 05:42 We got $12,000 a balance. 15K is the limit. What happens when we put $5000 into our line of credit? Because no longer are we spending $5000. We're now spending just $3000. The rest is actually a cash flow. So let's do this. Let's graph it out. $5000 in, $3000 expenses..