Awesome right!

It can work. Yes.

Look up Denzel Rodriguez on KZfaq. He goes over velocity banking and strategies. A lot of good info.

Easy

Fractional reserve banking

This 👆

Typical Macho dudes. She needs to have her own show bottom line. 😮😊

I was trying to figure out why she was even there.

Get over yourself. Maybe you should pay attention to what the discussion is. And maybe she didn't have anything useful to add.

​@@reddup671I agree. All she could contribute is small words like wow and hmm.

Stop being a woke insane person.

You an me both as I'm also 50 and I so wish I knew this financial stuff that I've been learning over the last couple of years. I kick myself when I watch financial educational videos and I think back 20 to 30 years and all the stupid financial mistakes I've made to get me to the point I'm at today, but the good new is it's NOT too late as I've already started turning this ship around. Growing up in a middle class blue collar family I was never taught the financial principles that I have been absorbing here in recent history. My dad always instilled a really good work ethic into me and always told me "just do this as it builds character" or "someday you'll have to go to work as you'll be the breadwinner of your family someday" He was good at teaching me to trade hours for dollars, but he failed miserably at teaching me what to do with my money once I got it or how to make it with trading hours for dollars. My dad is now 77 years old and I just talked to him on the phone yesterday and I was blown away when he told he just paid off his house's home equity loan last month as I assumed that his home was paid off years ago. Things never change as I was growing up money was a taboo subject and family finances is not to be discussed in among the family. I was really good at saving money, but then what? In 1992 after a tour in the Navy I managed to save up $20,000 in 1992 dollars, but then blew it all in a couple of years, because I had no direction. Fast forward to today both my twin son and daughter are now in the Navy and they both have a good understanding of money as I do talk about money with my kids without getting too personal with my actual numbers. To this day they both individually at 19 years old have $20,000 saved up. My son plans on saving up a boat load of more money invested in his TSP account and then start investing in real estate. I stand behind him and support 100% as we talk about money almost on a daily basis at least before he left for the Navy a couple of months ago. So true when they say poverty is a generational thing, for me that is stopping now.

You have a fantastic story about paying off your car! I know a lot about VB, but haven't done it that carefully. I think saving the interest on the loans is the way to go, but Garrett doesn't have that viewpoint I guess

@@michaelb.8953 Don't fee badly, \because most everyone feels the same way! I'm 59, and a widow trying to figure out how to keep and grow my money and I also wish I had done things differently years ago. All we can do it try to tun our ships the right way and come out better on the other side!

Michael B. Being a veteran can be one of the most powerful benefits to real estate. As a Marine Corps vet, I have used my VA entitlement over and over again over 2 decades. Inevitably, it forced me into retirement from my w2. Your son is on the right track.

I just finished paying off my truck loan I wish I learned this years ago I’m 44 only debt I have left is my mortgage and there’s only 6 years left

Interesting. How long have you been doing tax liens? Did you get any properties on default to tax payment?

@GarrettGundersonTV So far, no default. All TLC's are about as individuals as DNA. They do fall into categories. I've built up something of a database categorizing properties and beat the auction list against that prior to the auction. I am a programmer and engineer now for 50± years, I started programming in the '70''s on a Boroughs 1100. I filter out commercial property and all the slivers, land locks, vacant land, etc. I try to stick to single family houses in tracts or expansion doughnuts and street grids. The typical pay-off rate is 98% with an occasional loss to a superior lien held by the government, usually a tax agency like sales tax. My score beats the average. Thus far, it is 100%! I sell my services to a very few long-term time friends. they make good money on interest rate arbitrage, and I make mine on selling the data and processing service. I'm old. The government lies, cheats, and steals. Inflation eats away at wealth at the inflation rate, about 2%. Property tax varies, but circa 1% to 3%. A random basket of TLC"s is 98% pay off. Even if it is necessary to walk away from one or lose it to the state or feds, the profit is still good. Iowa pays 2%/mo. interest rate bid down. The suckeres are cleared out early. That's the game. Once you have a bank that sees this and structures a revolving loan for you or you beat it against a HELOC, it's a cash cow. There are a few big banks with their own departments that trade directly, plus institutions. There are some big banks that will take portfolios of 2 million + as securiety aginst a face discount of about 80%. There are a few clever offshore investors who will loan against the portfolio, taking a second position in security. That loan is also deductible, and since the loan is offshore, the IRS can't bite the offshore investors. I bet that P.O.'s the IRS! Let me fetch my crying towell Once you have the big picture, you can see how to turn HELOC's and 0% intros into profit and tax deductions. For details, there are several books. I recommend used ones, they say the same thing used as new!

Would you mind sharing the titles if some of the books you mentioned? This is very interesting and makes sense basically taking advantage of the math of the money$.⁠@@ledenhimeganidleshitz144

What about the interest on a HELOC adjusting as it has the last year. Going from a few percent to 8!

Lines of credit use Compound Interest. Let’s say it doesn’t and uses Simple Interest. Even if that is the case, if the rate is higher on the line of credit, it is higher cost. Use any online calculator. Most of the time a line of credit has much higher rates than mortgages.

@@confusedzentradiI have a question, because you’d pay off your line of credit much faster so the total interest would be lower. Right?

Lines of credit do not use simple interest. They use compound interest. Of course you have to know what those terms mean. You may be falling in the trap of thinking that mortgage loans charge interest on the entire original loan for the life of the loan. I have seen people express this idea and it is simply false. Interest is always charged on the outstanding balance, regardless of whether it is calculated using simple interest method or compound interest method. That being said, the loan with lower rate always wins. Basic math and logic tell you a mortgage with a 5% rate is better than a line of credit with a 6% rate.

@@M_SC it would be better if you gave me more information. If you are responding to my comment, then, as I already stated, the lower the interest rate the lower the cost. Why would I borrow money at 6% to pay off a loan at 5%? Just an example, however, ask yourself if that makes sense.

@@confusedzentradi Here’s just one example of how this thinking is incorrect: a 30 year fixed at 4% is more expensive than a 15 year at 7%. It’s how long banks keep you in the loan that costs more, not the rate. It’s the TIP, (total interest percentage) that matters most; the amount of dollars spent in interest when compared to another loan, not the rate. Here’s another one; the 30 year fixed loan is THE most expansive loan in the market. It is also the most profitable loan for the bank.

Yeah. We do. Consumer loans that purchase moments rather than assets are dangerous.

That can definitely be a useful strategy. I am using an interest only loan on my main mortgage now, fixed for 10 years and investing the difference rather than paying it down (be careful where you invest)

Hello Garrett, really appreciate the financial education and value you provide. I’m curious which banks offer interest only loans mostly all banks don’t advertise that product. Thx

Taking out a higher interest loan to pay down a lower rate loan makes no sense.

I have a 30 year fixed at 2.75 percent. I don't want to pay it off when I can earn a better rate. And it is low and fixed.

I'll check it out!

Thank you.

I love my teacher sifu Garrett Gunderson

Great

It works.

Can you explain how you utilize them? I'm intrigued by the concepts. Thanks.

Works best with fairy dust.

With the higher interest rates?

@@GarrettGundersonTV yes, same question but with todays market. I’m actually in a similar position but my mortgages are in the 5% range.

Cool. I'll do some videos on this in a few months. If you have specific questions go to GarrettGunderson.com/wwgd

Oh, thanks for bringing it to my attention. I'll let my team know.

@@GarrettGundersonTV Can you say again what you said? “Don’t speculate in the stock market. Invest in … “ I couldn’t make out what acronyms(?) you said. Thanks.

Definitely less risk than 2nds....

I love 1st position helocs!

Ok. Fair. And you pay more interest in the first years like you say.

Compound daily vs monthly? I think that is the point on super large loans. Example bimonthly payments even helps shed years off.

Nice. Welcome.

If you can get a fixed rate that is great. HELOC can impact your credit more adversely than an installment loan BTW.

@@GarrettGundersonTV it can also help some people with their credit score, especially if they have maxed out credit cards/bad consumer debt etc... But I understand your overall point of using the cash flow to create other cash flow opportunities.

Or do a 30 and save the money and pay it off early.

Also Mike Adams.

When you use a loan to invest i something that makes more than you are paying. Gloating the banks money (30 days) and earning interest on your money before the bank charges you.

Wow I feel super dupe

Wow i feel like her this is terrible

Chunk payments. It will knock out that interest fast.

@@mostmost1 I got find a way to make extra cash without burning myself out or it will cost me my job I work 10 hours days. I want to start a successful online business but I dont have the capital and I dont want to borrow money I don't want to mess up my credit I work so hard on building. I work from home any suggestions would be grateful

Thanks

With long hair and a beard.

? Nothing?

Fixed interest rates and back up funds help.

@nate a LOC not attached to your mortgage would be best. Then use the Loc as your checking account