Debt-Free Living with HELOC Strategy

pay off your mortgage in five to seven years with your current income. Today I am talking with Michael Lush. He is the owner and co-founder of Replace Your University. I have been hearing so much about how you can replace your mortgage, how you could be debt-free, how you could actually use a home that you have to get more rental properties and do this with zero percent interest. Literally in this video I caught up with a top mortgage expert. He used to work in the business. He's been doing this for over 20 years and he has been teaching people how to replace their mortgage in five to seven years. You could be debt-free. He's even had people that has paid it off in 11 months. In this video, I'm going to be asking him all of the tough questions, finding out exactly how we get this done so that we can do it too. Let's go. Okay, so I'm so happy to have been able to catch up with you, Michael Lush. I know that you have been in the industry over 20 years and had this replace your university for over 10 years. So. I'm just going to get right into it. I have some real direct questions for you because I have to know the truth about this and we're just going to get right into it. You ready? Awesome. Awesome. Well, first just tell me, you know, a little bit about RYM, RYU. Tell me about how you replace your mortgage, how this whole thing works. I got to know. Yeah. So our bread and butter is replace your mortgage, which is where we show people. Really the modern day scam and the modern day mortgage and what it looks like. Replacement University is another level up where we teach a litany of other things, whether it's real estate investing, day trading, mindset coaching, infinite banking concepts with Replace Your Banker. So our bread and butter being Replacement Mortgage was what we'll talk about today. Something I discovered back in 2009. You know, I was a veteran of the mortgage industry and thought I was really doing God's work. I'm like, I'm helping people get into homes. And I had a mentor who was a hedge fund. manager at the time. He actually owned the hedge fund at the time worth several hundred million dollars. Now he's a billionaire and he was the one that kind of pledged his capital to help us resurrect after the meltdown. So he had $25 million into this venture that I was director of operations in his, he was out of Connecticut, but would fly into Nashville from time to time to visit his parents. And so when he was in town visiting his parents, he'd come in town to check up on his money, right. Making sure he's getting a good rate of return. Yeah. And I knew he was wealthy guy and, you know, I've always had an aspiration to just be in the right rooms and, you know, I'm in the right room with this guy and I wanted to get in his sphere of influence. So you know what I do and we do it really well. And it would behoove you not to introduce me to your sphere of influence and I could do their mortgages. And if I'm doing their mortgages, you and I both know that mortgages have big commissions, big profits, you'll get your money back faster. And that's when he took about 15 minutes to explain this to me at a very high level. He said, look, Okay. rich people don't use mortgages. And here's what he phrased that will stick with me for the rest of my life was mortgages are financial crack to the middle class. The poor can't afford them and the rich don't use them. The whole poor part, because, you know, I couldn't get poor people qualified for mortgages. They didn't qualify. So what really interested me was the rich people, rich people don't use mortgages. So I was like, yeah, you pay cash for everything. He's like, no, we still use OPM, other people's money. Right. Use different tools, for instance, a simple interest line of credit, like, for example, a home equity line of credit. He said, my sphere of influence, we will finance no different than our businesses. We will finance our homes on home equity lines of credit. And he took 15 minutes to explain how it works. And again, the whole phrase, this is a financial crack to middle America. He basically called me a financial dope dealer. It didn't sit well with me because here I am doing thousands of applications. Right, right. Now, you know, I used to be in the mortgage business too, and I'm not a fan of mortgages per se, but let's go into this about this home equity line of credit. Like, like, give me more on that because I, that's a mortgage essentially. So let's kind of talk about that. Yeah, I think we need to have a real quick history lesson on it too, because I didn't realize because first gig right out of college was in subprime mortgage industry. So I didn't know what a mortgage was. I'm being indoctrinated. Here's what a mortgage is. Here's how it works. Here's how you sell it. Here's how you benefit people. And after he told me this, I had to do a deep dive history lesson. And if you go back prior to 1913, the mortgage then, it's why I call it the modern day mortgage, because the mortgage today looks a lot different than it used to look prior to 1913. So prior to 1913, a mortgage was a two-way street, meaning money can move in and out freely. So let me give you an example. Let's say you have a $200,000 farm and you only owe a hundred grand on it and you need some farm equipment. Today, you could walk down to the bank and say, I need 10 grand. I'm going to pledge this $200,000 farm. They give you the 10 grand right there, change the deed. And then you go sell your crops. So you got 20 grand. What do you do with 20 grand? You dump it right back into the mortgage. So the mortgage was fairly liquid, not nearly as liquid as a home equity line of credit, but it was a two-way street. Money could move in and out quickly. We've always heard the stories of my father, my great-grandfather. Back in my day, we paid our house off in 10 years. There's a couple of reasons for it. In my opinion, it was just a better generation. They didn't have TV, Netflix, and all this other stuff to distract you from. They were more educated and more disciplined, but they also had better financing tools. They were developing their cash and storing it in a mortgage because it was liquid. It was a two-way street. What do you think happened in 1913 that kind of changed that game forever? the Federal Reserve. The Federal Reserve comes along and says, hey, we'll be the backstop to these banks and we'll allow you to execute what's called fractional reserve lending. So what that means is, is every time you put a dollar in the bank, they've got $10 to lend out. It's just a simple keystroke. That's right. That's a powerful magic trick. You give them 10 grand, they got 100. You give them 100 grand, they got a million. Yeah. So shortly after this magic trick was invented by the Federal Reserve, the banks get together and say, we need more deposits because obviously that's extremely valuable. The more deposits you have, all they're doing, just like you flip houses, they flip money. So how do we get access to more core deposits? And that's when they ganged together and said, let's change the way a mortgage works. One, let's extend it out to a 30-year term to make it seem more affordable, which it is on a monthly basis. But long term, you're actually buying two houses, one for you and one for the bank. The first one you pay off is their house, not yours. That's right. The biggest thing they did is they made it a closed-end product, meaning money goes in freely, but it doesn't come out freely. Imagine parking your money into a mortgage. Now you've got to pay your bills. You can't. It's stuck in the bank's treasure chest. By doing that, what they did is they segregated us from our cash. They separated us from our cash. So cash can go in, but now you have to separate it and store it somewhere else for your utilities, gas, groceries, eating out, vacations. So where were most Americans storing their cash? In the welcoming hands of a check and savings account in the banks where they get the extra tax and reserve lending. Yeah, yeah. What we're doing with home equity lines of credit is really nothing new. It's been practiced for hundreds of years. We're going back to basics. We're using bank tools that are readily available to every American, and we're just playing the game. So it's like Harvey Specter on... suit says don't don't play the game play the man right so that's right we're just learning the game and we're using these tools to our advantage because the home equity line of credit is no different than a credit card or a checking account that's the way we view it we view it as a checking account it's a great place to store cash because it's yeah yeah really yeah so if i make 10 20 30 40 50 000 a month i can put a hundred percent of it into the home equity line of credit knowing that instantaneously five minutes later i can take it all back out Right. Paycheck market in the home equity line of credit. It computes interest differently than a mortgage does, too, because it's simple interest, meaning it's based on that day's actual balance. That's how the interest calculates. So let's say you have a hundred thousand dollar balance. And then tomorrow you're going to pay interest on 90, not 100. So your mortgage is an amortization schedule. So it's already predetermined how much of your payment is going to go towards principal and how much is going to go towards interest. Yeah. Y'all know. despite it being a 10 or 15, 20 or 30 year mortgage, they're front loaded with interest because the banks know most Americans are going to refinance or sell every five to seven years. That's right. Double up our profits on the front end where you can, when you put money in money goes to principal first in interest last on a mortgage, it goes to interest first and then principal last. So we just flip that on its head and it's liquid. So instead of using a checking account, We can actually use the HELOC as our checking account. It comes with ATM capabilities. You can get cash, online bill payment capabilities. Now we're using the math to our advantage. So we get what's called 100% income utilization because we can put 100% of our income into it. And every dollar we make gets used to suppress the balance, which thus suppresses the interest. We're in a mortgage. You can't do that. So if you put 100% of your money into a mortgage and it's time to pay the bills, uh-oh. Can't pay the bills now because I have to refinance or sell to get equity out of the mortgage. Or the HELOC, it's a two-way street. Right. So that's what we're doing with people that are cash flow positive, meaning they make more money than they spend. Yeah. Perfect formula for them to store their cash in their capital. It suppresses the balance. Thus, they pay a fraction of the interest over time. Okay, so this is really interesting. And obviously, you had a billionaire mentor. I had just had some multimillionaire mentors. So why is this the first time that I am hearing that you can use a home equity line of credit as your primary mortgage? Money. It's not profitable. Oh, let's talk about it. Okay. You were in the mortgage industry. I was too, especially in the subprime days. That's right. Yeah, me too. 2013 or 2012 in the mortgage industry. So if you did a $400,000 mortgage, you can make anywhere from four to eight grand. Now in the subprime days, you can make 20, 30, 40 grand, right? That's right. Profitable. Well, where do profits come from? Profits come from consumers overspending. It doesn't matter what the product is. That's where profits come from. Now let's take a look at the banking industry with HELOCs. how much commissions are paid out on HELOCs? Zero. What they're used as is a tripwire to get people in the banking door so that they can get their checking accounts, their savings accounts, their business credit cards, maybe some insurance products. Yeah. So tell me this. So why are banks pushing the 15 and the 30 year mortgage then? Is this why? Because they're not getting any commissions or origination fees? They push the 15 and 30 because of the commissions, because of the high profit, and because of consumers overspending on the mortgages. That's why banks have mortgages. That's why you don't hear about them pushing home equity lines of credit unless it's a second lien position where you want to get a loan on top of a loan. Yeah. It's on top of the mortgage. In that sense, it is profitable for them, but the bankers, by and large, don't earn a commission. They are paid a salary to do checking accounts, savings accounts, HELOCs. So we're just instead of going to the mortgage lender, go to your local community bank and credit union and ask for a home equity line of credit that replaces your existing mortgage. Wow. OK, so this is how. OK, so now we're talking. Now we're kind of getting to the meat of things. So you are the expert on how to pay off mortgages in five to seven years. OK, you like which is to me. Explain that to me because I get the home equity line of credit. So I'm getting some of that stuff. Put it all together for me. How is this helping me pay off my mortgage faster? Yeah, well, there's a couple of ways to do it. Let's go with the most popular way, especially right now in this economy. In this economy, people, you know, everyone has limiting beliefs. The interest rates are going up, right? Yeah, yeah, yeah. You get a home equity line of credit that is variable and people don't realize you got to know where it's a look. There are lots of banks offering what's called promo rates, introductory offers. Now, keep in mind, HELOCs are very low in closing costs, if any. Most HELOCs, there are no closing costs. Wow. You can't close a table with nothing. And I don't mean it's closing costs rolled into it. They just don't have them. Yeah. The ones that do have closing costs, they're a fraction of what you would pay in closing costs on a mortgage. Very true. bank has, and now the bankers are flooding the market with what we call promo rates, where it's like 1.99 for 12 months or 2.99 for 24 months. Nothing to prevent you from flipping those. So me personally, I've had 1.99% for three years on my home equity line of credit. So at the 11 month mark, all I do is call the bank up and say, you can either keep my business and renew my 1.99, or I'm just going to a different bank that has a 1.99, which is what I've done for three years. So I keep my rate low, but I do want you to understand that interest rate only dictates your monthly payment. It does not dictate how much interest you actually pay to a certain degree. Right. Time and balance are far more important. So the quicker you pay off things in time, the less interest you pay. So for example, if you had a 30 year mortgage versus a 15, the 30 years at 3%, the 15s at 5%, which one do you think you're going to pay more interest on? The lower rate? Hmm. Most people would say the higher rate. That is correct. You would actually say, yeah, less interest on the higher rate. Yeah, you would. Because of the terms, only 15 years. Yeah. Let's take another scenario. Let's say you have a $300,000 mortgage and a $200,000 mortgage at 4%. Because the balance is lower, you're actually going to pay less interest on the higher rate mortgage than you would on the lower rate. So we now know that time and balance is far more important than interest rate. And that's where the HELOC comes in. We are attacking the balance every single day with our monthly cash flow. And it's still liquid should we ever need it for opportunities or life events. And the amount that we typically save instead of putting in a savings account, a CD or a money market, it's sitting in the home equity line of credit suppressing the balance. And then next month, we got another round of income. And that's why on average, we've got a little over 8,000 clients. On average, our clients pay their home off in five to seven years without changing their existing budget. Wow. Okay. Okay. So tell me, I already know about sending in extra payments. That's usually what I've done to pay my mortgage off faster. Tell me kind of the difference between sending in extra payments and then these HELOC payments that go towards the principal. Yeah. So with a mortgage, sending in an extra payment is a good idea. You can accelerate the payoff of your mortgage because you're sending in extra money above and beyond what is expected. But are you sending in everything you make? The answer is no. So it is going to be slower because you're only utilizing some of your income as opposed to 100% of your income. See, with a HELOC, we're sending in all of our cash flow. In a mortgage strategy, you have to adopt what's called a payment strategy, where with a HELOC, it's a cash flow strategy. So it's not a payment strategy. Now you're just changing where your cash goes and where it sits. So instead of a P-Lock, now you get 100% income utilization. We're in a mortgage, sending in an extra payment will speed it up, but you're only utilizing a fraction of your full potential, which is the greatest asset, which is your cash flow. So you can't put 100% of it into a mortgage. Here's the other thing. As you're accelerating it, let's say you have an opportunity that pops up. you know, 30 days from now. And you've got four days to capitalize on that opportunity. Let's call it a flip or a foreclosure. Yes, let's talk about that. Because those, you know, those are our next questions. You got a foreclosure and you've got four days. This is real world example. My business partner was facing foreclosure and he had four days to prevent it from going into foreclosure. If you're in a mortgage and you've got equity and you just now found out about this opportunity, it's going to take you 30 to 45 days and thousands of dollars to get access to that equity. That's right. With a home equity line of credit, because he was storing all of his cash and suppressing the balance of his home equity line of credit. He's got access to it 24-7. Yeah. He was able to pay cash for that property, utilizing his property, and then rented it back to the person who was facing foreclosure, and then gave him a little bit more cash to clean up the yard, fix it up. Now he owns the asset. He created a cash flowing asset, and he was able to do so because he was liquid. That's the issue. There's a couple issues with paying extra on your mortgage. One, it's a slower process. Two, which I think is far more important, is liquidity. Yes, that's a big deal. That's a big deal. So I'm hearing a really, you just went off for a second there. So how can we use heat locks to grow our real estate portfolio? Obviously, I'm all about real estate, growing your wealth, you know, using real estate to get to that next level and get a portfolio. So how could how could someone use this to for real estate investing? Yeah, here's a couple of benefits about it, especially when it comes to real estate investing. Let's say you've got access to, it doesn't cost you anything to have access to this equity. All right, let's say I have a home free and clear, $300,000 property, and I don't owe anything on it. And in the hip hop world, it's costing you $0, right? But you still have access to the equity. So as soon as you swipe the card, you can have access to however much you want. Right. In the mortgage world, you have to predetermine how much you're going to use and then start paying all of the interest on the front end. With a HELOC, you have access to $300,000, but let's say you only wanted to use $100,000 of it for right now. Maybe another month from now or a year from now, you're only going to pay interest on what you've used, not what you have access to. In the mortgage world, again, you've got to predetermine, well, I may need $300,000, but I don't know. I don't really have a plan for all of it just yet. Right. access to it. You've started the mortgage process all over and the amortization schedule, not so much the HELOC. But let's use real estate investing for an example. Let's say, and these are terrible numbers, but it's easy math for people to follow along with. You typically invest in $100,000 properties, right? And you've got $100,000 of equity. How many properties do you think you can buy with $100,000? Well, there will be one based on those numbers. Yeah. And here's how. So I've got access to it. We're always using other people's money. That's right. On investment properties, you can actually get a HELOC for a purchase, meaning you buy the property. And at the closing table, it actually closes as a HELOC. It does not close as a mortgage. Okay. I mean, it could be a purchase. So if I'm buying $100,000 properties, all I got to do is come up with the 20 grand. Right. If I have $100,000 of equity, I'm buying five doors instead of one. That's right. financing the other 80%. And now if I've got vacancies or anything else, I've also increased the cash flow. So instead of exhausting 100,000 of your equity for one property, exhaust all of your equity for five properties. I love it. I love it. So essentially you can do a hundred percent financing by using your HELOCs and equities and other properties. So you could grow your portfolio a lot faster this way. Correct. Yep. Yeah. I love it. I love it. Okay. So who's qualified, you know, what, what are some of the qualifications for a home equity line of credit? So HELOC. I'm glad you brought that up because this is not perfect for everybody. You have to be positive is number one. Cashflow positivity means you make more money than you spend. Unfortunately, most Americans are living paycheck to paycheck. A potential client called last week. She's making three grand. Guess what she spends? Three grand on a weekly basis. Unfortunately, you need a conversation with Dave Ramsey. And I say unfortunately, because he's a financial entertainer, not a financial guru. So you need to go talk to him about budgeting because there's no sidestepping of budgeting. That's true. You cannot spend more than you make. That just is what it is. Or you'll never be rich, no matter how much money they give you. If you always spend more, you could make $100,000 in a month. If you spend $100,000, you're just as broke as someone making two grand a month. Unfortunately, we see more at the upper end than we do at the lower end when it comes to budget. It's not about how much you make. It's how much you keep, right? Right. So you've got to be cash flow positive. And number two, we ideally like to see somebody with 10% down or 10% in equity. So let's say it's a $300,000 property. You owe no more than $270,000. So you've got 30,000 of equity there that we can work with. So that's enough because most banks guidelines, they'll do 90% financing. There are a few that will do 95, even a hundred percent financing, but their terms and conditions change dramatically because the risk is a lot higher. Right. Another thing is a HELOC not only doesn't have closing costs by and large, but it never has mortgage insurance. There's only one product out in the marketplace. That's a HELOC and it's really via mortgage lender. that has mortgage insurance. Of the other 11,000 banks and credit unions out there, they don't have mortgage insurance, even if you're borrowing well over 80% financing. So we like to see 10% equity. We also like to see decent credit, not perfect credit, but 680 plus credit score. So if you've got a 680 plus credit score, cashflow positive 10% equity, we can work with that. Really? Okay. So So What does working with you kind of look like? Obviously, this is the replace your mortgage strategy. So this is big. You've helped like so many people. Seriously, like this is how I even got like I have to talk to Michael Lush. Like so many people are telling me about this strategy. So kind of tell me about some of the students and what their experience has been like. How's this working out for people? Yeah, it's really cool to watch because some people get in and only want to be debt free in the initial stages of it. it, right? Really? Okay. I can see so much more, but I get that. That's an easy goal. Yeah. Me and you think a lot alike. So I'm 44 years old. I think I still knock on wood, got plenty of life left in me. Same here. Once. And that was when I first paid my house off with a HELOC. It took me three and a half years. I got the t-shirt and that was it. And I'm like, okay, but now I've got all this equity. That's not doing anything for me. Right. So I don't technically want to be debt free. So They get into this. If they want to be debt free, I don't know a better strategy of getting your home paid off free and clear as fast as possible without changing your budget than this. Yeah. And with the income you already have. Exactly. But now that they have access to capital and liquidity, we help them spot opportunities. And what you'll notice is that when you have capital and liquidity, opportunities are in your face every single week. Right. No, you wouldn't spot one if it smacks you in the face. Right. usually about six months to a year in. They're like, okay, yeah, now I've kind of mastered this. Shouldn't I leverage this? I'm like, yeah, yeah, yeah. If you're my age, 44, 55, heck, if you're 75 and still hustling, absolutely, it's cheap. If I've got investments that I can make 20, 30, 50% ROI year on, why not leverage my 1.99 to go get something that's going to earn me 10, 15, 20%? I've got it. maybe 15% a month. So that's cheap cost of funds. So I'm going to leverage debt to buy more cashflow assets. And guess what happens when I earn those cashflow assets? Guess what happens to my HELOC? It goes down even faster because my-Yes, that's what we see by and large is a lot of our clients do end up getting into real estate investing because now they've got access to capital, access to down payments. Yeah, I can see that. And that's definitely something that I'm interested in doing as well. So I started- getting into this and learning what you're doing. Cause I was so impressed at the, that I had never even thought about this. Like you said, this was your billionaire mentor that taught you this. And so I'm sure within that bit in those billions, there were some real estate investments. Yeah. Yeah, they're always diversified and looking for tax deductions. And real estate is just one of the best. I mean, heck, it's produced more millionaires than any other industry known to man. So again, it's not what you make, it's what you keep. And real estate investing has massive, massive tax implications. Yeah, that's a great other benefit. So tell me about some of the other business benefits of the RIM strategy. Well, here's the other thing is misconceptions or limiting beliefs is people think that HELOCs are not tax deductible, and they are. So if you get with the right CPA, actually, the latest tax law change in 2018 actually enhanced the deductibility of home equity lines of credit. Okay. Imagine a corporation ran by a real estate developing billionaire. He's not going to limit deductions on real estate. Right. But the limiting beliefs were because I. the headlines were the HELOCs are no longer tax deductible and they're not. Yeah, no way. They're called acquisition indebtedness. So let's say you bought a house on a mortgage and then you refinance that mortgage into a home equity line of credit. Debt was acquired via purchasing or improving that home. So you actually kept the same tax deduction. So HELOCs in the 2018 tax law change deductibility went up to 750 grand, where it was limited to 100 grand prior to the tax law change. So there's still a lot of tax deductions available in a home equity line of credit. In fact, every year the bank is going to send you what's called a 1098 mortgage interest deduction statement, whether it's a HELOC or a mortgage. So that's between you and your CPA to tell the IRS what it is. Now, if you used a HELOC to buy a car, that's not done unless it's a business car. There are ways to buy cars via businesses and the car can be a tax deduction. So you can... that you lock and lend it to your LLC. And now you have unlimited tax deductibility. So you could do a capital injection from your home to your business and increase the tax deduction. So I'm not a CPA, but you know, there's a lot of things that my CPA has shown me to do inside of the HELOC world. Wow. That is amazing, Michael. I didn't even think about that. You're right. I've done refinances on properties instead of selling them, my investment property. So I don't have to pay all those capital gains taxes. Obviously, if I do the cash out refi, I get the cash that's not tax deductible. But this whole thing with the HELOC, you have really sold me. So how can others reach out to you? Like, because like I said, it was amazing for me to get into your course and start looking at it. I've already started implementing things. I know people are going to want to know how can we, how can they get involved in this? Yeah, all they got to do is go to replaceyouruniversity.com and nowhere on our site do you have the ability to just pay us. Everyone gets a free consultation, so everyone is vetted because it is not the right fit for everybody. So we want to make sure that it is the right fit for you before you start handing over money and start getting consulting and coaching packages. We want to make sure this makes sense for you, but we also want to, you know, take away any of those objections that you may have because we haven't answered them all today. So any objections you have, bring it to the table. We're going to spend 45 minutes to an hour on the phone. going through your scenario, going through the numbers and see if it makes sense for you. And if it does, then yeah, absolutely. It's a no brainer. You know, the other thing we didn't talk about that you asked me that I think is important for folks to know is some of the other benefits of a HELOC. And we always think because you and I are optimistic and we have an abundance mindset, but you know, there are some people out there that have a scarcity mindset. That's true. We saw this in COVID where, you know, people had loss of income, income reduction, furloughed. what have you. Heck, we even had a couple of clients where their spouse has passed away. Yeah. So a HELOC, if you mechanize it the right way, you don't even have to make a payment to it. So let's say you were in, I had a couple of clients, about a handful of clients that were in my class for three years and they have a massive income reduction. And so they've paid, you know, half their home off, but they still have access to that, that limit, right? So our home, they paid it down to 150. They got access to 150. Yeah. We showed them how to mechanize the home equity line of credit. So instead of feeding it, it started feeding them for a short period of time. So they were never late. They never had to foreclose. They never had to move out. And when they got back on their feet, they just went back to the strategy and started paying it off. So it's not just something that you can use in moments that you're thriving, but you can also use it in moments that you need to survive as well. And that's kind of where it led me down this hedge fund path. Now. I've got some associates and I even have my own private equity fund where hedge funds are actually looking for first lien position paper right now. They're trying to buy up as much of that paper as possible. And here's what we've learned. In 2008, 2009, folks that had a first lien position HELOC had zero defaults. It was a default rate 115 times lower than people with a mortgage. I bet. Let's try missing a couple of payments on your mortgage. Yeah. Time to pack up and go. But your HELOC. It can pay you. It can pay you. And you can, yeah. Oh, my gosh. I don't want to say it out loud, but almost like, right. You can use that cash if you need to, to pay for the payments. Not just a payment. Yeah. For your life. If you need to. Right. To support. Yeah. Wow. Michael. Oh, my gosh. Yeah. Oh, my gosh. Oh, my gosh. And then even just the thing that you said, what really got me interested, of course, is using equity to build my portfolio. You know what I mean? That was the first thing that got me where I'm like, all right, I'm not sure about this. But then immediately thinking, wait a minute, I have a rental property. I have two hundred thousand dollars worth of equity in it. Instead of selling it and no longer having that asset, I could get a HELOC on it and easily get 10 more properties easily. Yeah. Yeah, absolutely. That's 10 more doors. 10 more doors. 100 bucks a month. Yeah, yeah. All going up in value. Because remember, each of them are their own entities appreciating in value. With real estate, I always go for the three things. Equity, appreciation, and cash flow. Obviously, cash flow being actually the lowest in my trinity. And so, because I know more importantly. the equity and the appreciation. Okay, so I buy this property now in three years when I'm selling it, it's already gone up in value, especially if I pick some highly appreciating areas like around Disney World, around Charlotte, some of these areas that I absolutely love in Atlanta. Long story short, and to be able to do that, take one property and easily turn that into 10 is actually a really, really smart idea. And then to even hear that, wait a minute, if times got hard and you needed it, that's... You want to use it. And that's the thing. You don't want to wait till you need money to borrow money. You want to do it while you're in it. Like you said, your cash flowing positive. Everything is great. This is the perfect time. This is the perfect year to do this. Yeah. It's you know, you were in the mortgage industry. So, you know, what a heckum is a home equity conversion mortgage. Yeah. Yeah. Reverse mortgage. Yeah. I'll sell it. You know, beautiful mustache. Exactly. Exactly. But you and I both know that reverse mortgages are the most. profitable mortgages out there. They pay the hugest commissions. I mean, you could do a $200,000 reverse mortgage and make 20 grand. And today we're talking about self-taught. What's the one component that makes a reverse mortgage work? The HELOC. It's a home equity conversion mortgage. The one tool that's inside of a reverse mortgage that makes it what it is and why seniors are getting extorted for all these closing costs is a home equity line of credit. So I just shared today how all of these seniors could go set up their own reverse mortgage for free. Right, right, right. Without the hassle. And two, what happens too with the heckum sometimes is, you know, when the person dies and then trying to get the property back for the family. But if you just have the HELOC going, someone could take over those payments and keep it moving, refinance the property. It's a lot easier to get that property and keep it. Oh my gosh. Wow. Great point. into a trust. You can roll it up into a revocable trust. Right. Right. Great point. Great point. So this is definitely, I get a lot of students that come by and they've inherited a property, for example, you know, or something, you know, and they're in a situation and this home equity line of credit could really be the great way to monetize that property and get some properties that they really want. Because a lot of times it'll be, you know, mom and dad's house or grandma's house and they don't necessarily. see it as an investment property. But if they were able to tap into that equity and get some rental properties and have a whole portfolio, now they're really doing something. That's the abundance mindset, right? We call it the treasure detection system. People think that there's only a limited amount of capital out there. You just got to know where to look. There's a ton of capital, whether it's in your own backyard or somebody else's backyard. All you got to know is where to look. And there's plenty of capital to do as many bills as you can set your mind to. I agree. I agree. So when we're talking about the replacing your mortgage, one of the another question that just really comes to me, you mentioned some great benefits, so many great benefits that you mentioned. I mean, I'm not going to lie. I was like super skeptical. Like, what are you talking about? But when I really look into this, it's easy to see why rich people don't use mortgages. Yeah. Yeah. They don't want to segregate their income. They want all of their money. Instead of having money sleeping in a mortgage, you've got money sleeping. Whether it be in equity, here's an example. Let's say you have $100,000 in a tin can buried in the backyard. No, I'm sorry, $300,000 in a tin can buried in the backyard. Three years from now, how much is that tin can worth? Most people would say $300,000 because that's what you put in the tin can. Yeah. Yeah. Because of inflation, right? That's right. A lot of people are looking at equity as, well, I need to hang on to it. I'm trying to store up as much of the equity. The home appreciates. The home is a valuable asset. The home is not appreciating, right? Or I'm sorry, the cash isn't appreciating. The home is appreciating, but the cash is not appreciating. Is not, right. I want the home to appreciate, but then wake up that dormant money. Yeah. It's not appreciating. It's actually going backwards because of inflation. Right. Let's extract it from the property and let's put it into something where it does appreciate. wake up that money. And that's what millionaires and billionaires understand is, I need my money to work for me. And sitting in your home doing nothing for you, it's not working for you. You got to wake up those dollars and get them pregnant. Right. And you can't get rich just sitting on cash. Like that's never going to get you to wealthy. You know what I mean? It's like, you can't save your way to rich. You really got to get that money, earning money and put it into some vehicles, especially like you said. Put it into a business, for example. Put it where you're reducing your tax liability, for example. So that's more money for yourself. Get it into more real estate. Get it into other investments. Like you said, wake that equity up. Wake that cash up. And a HELOC, it's so funny because you're right. They're not advertised as this great vehicle that they could be. Why do you think that is, Michael? Lack of money, lack of profits. Yeah. Make money based on profits. And so does every other business. And HELOCs are just not nearly as profitable to a bank or mortgage lender. Mortgage lenders don't offer HELOCs. That's true. Don't call up your mortgage lender and ask for a home equity line of credit. If they have one, it's going to be a really crappy product that they're also going to charge closing costs for. Again, it's all community banks and credit unions you need to start partnering with. Those are the ones that have really good products. And, you know, those bankers are paid a salary. So even at a branch manager level, they're paid a salary. So. Yeah, they'll give you a HELOC. You're not going to have closing costs, especially compared to a mortgage. But you may get a checking account. You may get a savings account. And they're based on a point system. So mortgages, again, you and I both know. You do one, you can make two to four grand. You do five of them a month, you've got a pretty good living because of what's called a yield spread premium. Mortgages have huge yield spread premium. They get sold on the secondary market. That's where the money is made. There's huge profits. Why? Because... You're not just buying one home, you're buying two. And the home that's paid off is the lender's home, not yours. So think about that. You buy a $300,000 property, you're really buying a $600,000 property because of the way that you financed it. However, with an equity line of credit, you're still going to pay interest because interest comes along with the debt, but you're going to pay instead of $300,000 of interest, maybe $75,000, right? So that act of profit is why it's not advertised. So let's kind of get to that for a second. So there's some really great things, but I know the question that's in everyone's mind right now is how could this mess up for me? What could go wrong with using a HELOC? Yeah, easy. One, not being disciplined. So if you tap into the equity to go buy your S-class Mercedes as opposed to a cash one, and that's, you know, I've got some-It's with anything, I got you. They'll put their business logo on the side. It's a deduction. They can make money. I get it. But by and large, you know, car to liability. So don't use your equity to buy liabilities. Use your equity to buy assets. So discipline. And some people think, well, this requires a lot of discipline to do this strategy. It actually requires less. Because with the mortgage system, you have what's called a segregation income approach, where money comes into the checking account, then it goes to the checking, I'm sorry, checking account, then it goes to the mortgage, savings, car payment. you know, whatever motorcycle loan, what all this, you know, then I've got this savings fund over here for potential utilities or a vacation down the road. So all you're doing is constantly splitting up your income. And when you split up your income, it has less focus and less ability to pay down debt. So with your HELOC, it's one account that is not only your mortgage, it is also your checking account and all of your money goes into it. And then from there, you can pay your utilities and bills out of that. So now you've got a much more laser approach of what we call a streamlined income approach. And you speed up the process because you're far more efficient. So in the first couple of months, you're not seeing a lot of traction. But because of the simple interest nature of it and the balance constantly going down, this thing is like a snowball rolling downhill. It speeds up momentum over time. And that's why we see our average client paying their home off an average of five to seven years. Okay. So we'll replace your mortgage. Most people are paying it off in five to seven years total. Total without changing their existing budget. Wow. That is incredible. That is so incredible. OK, so one more time. How how can people get more info on this? Because you mentioned free consultation that you're going to talk to people like I'm excited. I already know a few people that are already like, OK, well, how do I get this? Yeah. So if you go to replace your university dot com or replace your mortgage, it redirect you to the same spot. And we'll put a link below. Yeah, on there is replace your mortgage. And what I would encourage people to do is there's tons of free content, more than what we've shared today. So just go through all the free content and when you feel like you're comfortable, like, you know what? I want to reach out to these guys. I'm not scared. I want to find out more. Yeah. Then there'll be a button to schedule your discovery call. And that's where we'll spend 45 minutes to an hour answering all the tough questions and plugging in your numbers to determine, you know, is it going to be five years for you? Some people it's three. The fastest is 11 months. Wow. 11 months. Okay. Michael, you can't just brush over that 11 months. Yeah. Now that was their income was not normal. It wasn't the average American, but maybe you know, like for instance, I paid my house off once. Now I'm at a pace where I could pay my house off every 17 months, but I don't want to because it doesn't take me 17 months to spot an opportunity. So I've leveraged my equity to buy. I have businesses. I've leveraged my equity to invest in other businesses. I do day trading. We do real estate investing. So you're spotting opportunities more frequently because you have access to capital. That's right. I love it. I love it because I always have this saying, what is luck? Luck is when preparation meets opportunity. Because so many people say, they call me lucky. And well, there's two things I'm often called, lucky and childish. Are two of my... Biggest compliment. So one luck because I'm always kind of prepared. I'm always ready to listen. I'm always ready to learn. You know what I mean? I'm not a skeptical person. I'm not. That's where the childish comes in. I will listen to you tell me about magic beans. I will listen to you tell me about magic crystals, like whatever it is that's working. I want to know I'm ready to learn. And I'm not saying that I'm, you know, but I am I'm childlike in that I want to hear more. I want to learn more. I don't know anything. You know what I mean? I thought. I was so smart and I ended up in my parents'basement, bankrupt, bad credit, multiple foreclosures. And it was when I realized how dumb I was and just opened up my ears and closed my mouth, I was able to get to this multimillionaire status. So I absolutely love what you were talking about, Michael. I love the replace your mortgage philosophy. Like I said, I did start off a little skeptical. I really wasn't sure, but as I delved into it and kind of looked at what you were saying and the different loans and you're right, the closing cost, that's a big one. working in the mortgage industry, because I went to go do a refinance of my primary residence. And it's like a $2 million house or whatever. And they were trying to charge me $42,000 in closing costs to refinance. And I was like, heck no, you know what I could do with $42,000 and, you know, and I'd just not pay you. And so I'm going to do it on HELOC. And I have another rental property. And I'm like, I know this is, I'm working with you guys. This is going to work. So I'm so excited, Michael, so excited. What's more criminal than the closing costs is look at the loan estimate. I know. Loan estimate is going to tell you what tip is, total interest percentage. Yeah. What you're paying in interest. Oh, my gosh. You remember those truth in lendings when you would see that statement and it would say you're borrowing $300,000. And then after that 360th payment, you went from well over almost $2 million, $1.6 million or whatever if you paid it out all 30 years. And. Then everyone starts talking about, okay, pay the mortgage off faster by sending in an extra payment. And that's something I always have done. But now to take this to the next level, like I said, this is billionaire status type thinking. Like, wait a minute, a HELOC as your primary mortgage and no more primary mortgages, no more of those 30-year mortgages. No. I mean, heck, as a business, we operate on business lines of credit. We don't operate on loans. You're right. You're right. Absolutely right. We don't get a mortgage for our business. Exactly. Wow. There's actually a way to couple your business line of credit with your HELOC to speed up the process even faster. Tell me. A business line of credit, you know, you can get 0% business line of credit. That's right. So, money going into the HELOC suppresses the balance and suppresses the interest and speeds up the time, right? Then we also know diversely taking money out. increases the balance, increases the interest, increases the time. Well, what if there was a way where you have the HELOC that only used your income, but you never had to pay your expenses out? I would say never. Periodically had to pay your expenses out of it. Now you use your business line of credit at 0% for all of your other expenditures. And it's called offset accounting. And the longer you stretch that out, the faster you speed up the process. Not to mention a lot of free cash. I'm going to Florida, the panhandle of Florida in two months. Got a house on the beach and guess how much it costs? Zero. There's nothing but points that paid for it. Wow. Wow. Okay, Michael, my mind is blown. One more time. How can people find Replace Your Mortgage? Yep. ReplaceYourMortgage.com or ReplaceYourUniversity.com. It'll take you to the same spot. Click. There's a carousel there of all the different verticals that we have. Click on Replace Your Mortgage. Watch. I've got a book. You can read the book for free. You can watch a lot of the material for free. And when you're ready for some coaching, just click the button for a call and we'll call you and set you up. Well, this has been amazing, Michael. I'm also going to put a link below. Like I said, I am a fan. My team is a fan. Like I said, we saw this stuff coming up in the feeds. We love doing our research and you really checked out. So I absolutely love that you were able to come here today and I was able to catch up with you. And again, it was awesome. This is great information. Use the link below to get in touch with replaceyourmortgage.com or replaceyouruniversity. They are helping people replace that income and get that good business going. Okay, Michael, so you've told us about an amazing offer with Replace Your Mortgage and I want to give this code to my audience. Yeah. So I want to make sure that your audience is using your link because we love working real estate investors. They already get it. They get it a lot quicker. So because they get it quicker, there's less effort from us. So we want to pass on that discount to your audience. So they get $500 off of our coaching if they use your link. So in the description below, make sure you're using Noelle's link and that way you get $500 off. Awesome. Thanks, Michael.

Literally in this video I caught up with a top mortgage expert. He used to work in the business. He's been doing this for over 20 years and he has been teaching people how to replace their mortgage in five to seven years.

You could be debt-free. He's even had people that has paid it off in 11 months. In this video, I'm going to be asking him all of the tough questions, finding out exactly how we get this done so that we can do it too.

Let's go. Okay, so I'm so happy to have been able to catch up with you, Michael Lush. I know that you have been in the industry over 20 years and had this replace your university for over 10 years. So.

I'm just going to get right into it. I have some real direct questions for you because I have to know the truth about this and we're just going to get right into it. You ready?

Awesome. Awesome. Well, first just tell me, you know, a little bit about RYM, RYU.

Tell me about how you replace your mortgage, how this whole thing works. I got to know. Yeah. So our bread and butter is replace your mortgage, which is where we show people.

Really the modern day scam and the modern day mortgage and what it looks like. Replacement University is another level up where we teach a litany of other things, whether it's real estate investing, day trading, mindset coaching, infinite banking concepts with Replace Your Banker. So our bread and butter being Replacement Mortgage was what we'll talk about today.

Something I discovered back in 2009. You know, I was a veteran of the mortgage industry and thought I was really doing God's work. I'm like, I'm helping people get into homes. And I had a mentor who was a hedge fund. manager at the time. He actually owned the hedge fund at the time worth several hundred million dollars.

Now he's a billionaire and he was the one that kind of pledged his capital to help us resurrect after the meltdown. So he had $25 million into this venture that I was director of operations in his, he was out of Connecticut, but would fly into Nashville from time to time to visit his parents. And so when he was in town visiting his parents, he'd come in town to check up on his money, right.

Making sure he's getting a good rate of return. Yeah. And I knew he was wealthy guy and, you know, I've always had an aspiration to just be in the right rooms and, you know, I'm in the right room with this guy and I wanted to get in his sphere of influence.

So you know what I do and we do it really well. And it would behoove you not to introduce me to your sphere of influence and I could do their mortgages. And if I'm doing their mortgages, you and I both know that mortgages have big commissions, big profits, you'll get your money back faster. And that's when he took about 15 minutes to explain this to me at a very high level.

He said, look, Okay. rich people don't use mortgages. And here's what he phrased that will stick with me for the rest of my life was mortgages are financial crack to the middle class. The poor can't afford them and the rich don't use them.

The whole poor part, because, you know, I couldn't get poor people qualified for mortgages. They didn't qualify. So what really interested me was the rich people, rich people don't use mortgages.

So I was like, yeah, you pay cash for everything. He's like, no, we still use OPM, other people's money. Right. Use different tools, for instance, a simple interest line of credit, like, for example, a home equity line of credit. He said, my sphere of influence, we will finance no different than our businesses.

We will finance our homes on home equity lines of credit. And he took 15 minutes to explain how it works. And again, the whole phrase, this is a financial crack to middle America.

He basically called me a financial dope dealer. It didn't sit well with me because here I am doing thousands of applications. Right, right.

Now, you know, I used to be in the mortgage business too, and I'm not a fan of mortgages per se, but let's go into this about this home equity line of credit. Like, like, give me more on that because I, that's a mortgage essentially. So let's kind of talk about that. Yeah, I think we need to have a real quick history lesson on it too, because I didn't realize because first gig right out of college was in subprime mortgage industry. So I didn't know what a mortgage was.

I'm being indoctrinated. Here's what a mortgage is. Here's how it works.

Here's how you sell it. Here's how you benefit people. And after he told me this, I had to do a deep dive history lesson.

And if you go back prior to 1913, the mortgage then, it's why I call it the modern day mortgage, because the mortgage today looks a lot different than it used to look prior to 1913. So prior to 1913, a mortgage was a two-way street, meaning money can move in and out freely. So let me give you an example. Let's say you have a $200,000 farm and you only owe a hundred grand on it and you need some farm equipment. Today, you could walk down to the bank and say, I need 10 grand.

I'm going to pledge this $200,000 farm. They give you the 10 grand right there, change the deed. And then you go sell your crops.

So you got 20 grand. What do you do with 20 grand? You dump it right back into the mortgage.

So the mortgage was fairly liquid, not nearly as liquid as a home equity line of credit, but it was a two-way street. Money could move in and out quickly. We've always heard the stories of my father, my great-grandfather. Back in my day, we paid our house off in 10 years.

There's a couple of reasons for it. In my opinion, it was just a better generation. They didn't have TV, Netflix, and all this other stuff to distract you from.

They were more educated and more disciplined, but they also had better financing tools. They were developing their cash and storing it in a mortgage because it was liquid. It was a two-way street. What do you think happened in 1913 that kind of changed that game forever? the Federal Reserve.

The Federal Reserve comes along and says, hey, we'll be the backstop to these banks and we'll allow you to execute what's called fractional reserve lending. So what that means is, is every time you put a dollar in the bank, they've got $10 to lend out. It's just a simple keystroke. That's right. That's a powerful magic trick.

You give them 10 grand, they got 100. You give them 100 grand, they got a million. Yeah. So shortly after this magic trick was invented by the Federal Reserve, the banks get together and say, we need more deposits because obviously that's extremely valuable. The more deposits you have, all they're doing, just like you flip houses, they flip money.

So how do we get access to more core deposits? And that's when they ganged together and said, let's change the way a mortgage works. One, let's extend it out to a 30-year term to make it seem more affordable, which it is on a monthly basis.

But long term, you're actually buying two houses, one for you and one for the bank. The first one you pay off is their house, not yours. That's right.

The biggest thing they did is they made it a closed-end product, meaning money goes in freely, but it doesn't come out freely. Imagine parking your money into a mortgage. Now you've got to pay your bills.

You can't. It's stuck in the bank's treasure chest. By doing that, what they did is they segregated us from our cash.

They separated us from our cash. So cash can go in, but now you have to separate it and store it somewhere else for your utilities, gas, groceries, eating out, vacations. So where were most Americans storing their cash?

In the welcoming hands of a check and savings account in the banks where they get the extra tax and reserve lending. Yeah, yeah. What we're doing with home equity lines of credit is really nothing new.

It's been practiced for hundreds of years. We're going back to basics. We're using bank tools that are readily available to every American, and we're just playing the game. So it's like Harvey Specter on...

suit says don't don't play the game play the man right so that's right we're just learning the game and we're using these tools to our advantage because the home equity line of credit is no different than a credit card or a checking account that's the way we view it we view it as a checking account it's a great place to store cash because it's yeah yeah really yeah so if i make 10 20 30 40 50 000 a month i can put a hundred percent of it into the home equity line of credit knowing that instantaneously five minutes later i can take it all back out Right. Paycheck market in the home equity line of credit. It computes interest differently than a mortgage does, too, because it's simple interest, meaning it's based on that day's actual balance. That's how the interest calculates.

So let's say you have a hundred thousand dollar balance. And then tomorrow you're going to pay interest on 90, not 100. So your mortgage is an amortization schedule. So it's already predetermined how much of your payment is going to go towards principal and how much is going to go towards interest. Yeah.

Y'all know. despite it being a 10 or 15, 20 or 30 year mortgage, they're front loaded with interest because the banks know most Americans are going to refinance or sell every five to seven years. That's right.

Double up our profits on the front end where you can, when you put money in money goes to principal first in interest last on a mortgage, it goes to interest first and then principal last. So we just flip that on its head and it's liquid. So instead of using a checking account, We can actually use the HELOC as our checking account. It comes with ATM capabilities.

You can get cash, online bill payment capabilities. Now we're using the math to our advantage. So we get what's called 100% income utilization because we can put 100% of our income into it.

And every dollar we make gets used to suppress the balance, which thus suppresses the interest. We're in a mortgage. You can't do that.

So if you put 100% of your money into a mortgage and it's time to pay the bills, uh-oh. Can't pay the bills now because I have to refinance or sell to get equity out of the mortgage. Or the HELOC, it's a two-way street. Right. So that's what we're doing with people that are cash flow positive, meaning they make more money than they spend.

Yeah. Perfect formula for them to store their cash in their capital. It suppresses the balance. Thus, they pay a fraction of the interest over time. Okay, so this is really interesting.

And obviously, you had a billionaire mentor. I had just had some multimillionaire mentors. So why is this the first time that I am hearing that you can use a home equity line of credit as your primary mortgage? Money. It's not profitable.

Oh, let's talk about it. Okay. You were in the mortgage industry.

I was too, especially in the subprime days. That's right. Yeah, me too.

2013 or 2012 in the mortgage industry. So if you did a $400,000 mortgage, you can make anywhere from four to eight grand. Now in the subprime days, you can make 20, 30, 40 grand, right? That's right.

Profitable. Well, where do profits come from? Profits come from consumers overspending. It doesn't matter what the product is. That's where profits come from.

Now let's take a look at the banking industry with HELOCs. how much commissions are paid out on HELOCs? Zero. What they're used as is a tripwire to get people in the banking door so that they can get their checking accounts, their savings accounts, their business credit cards, maybe some insurance products.

Yeah. So tell me this. So why are banks pushing the 15 and the 30 year mortgage then?

Is this why? Because they're not getting any commissions or origination fees? They push the 15 and 30 because of the commissions, because of the high profit, and because of consumers overspending on the mortgages.

That's why banks have mortgages. That's why you don't hear about them pushing home equity lines of credit unless it's a second lien position where you want to get a loan on top of a loan. Yeah. It's on top of the mortgage.

In that sense, it is profitable for them, but the bankers, by and large, don't earn a commission. They are paid a salary to do checking accounts, savings accounts, HELOCs. So we're just instead of going to the mortgage lender, go to your local community bank and credit union and ask for a home equity line of credit that replaces your existing mortgage. Wow.

OK, so this is how. OK, so now we're talking. Now we're kind of getting to the meat of things.

So you are the expert on how to pay off mortgages in five to seven years. OK, you like which is to me. Explain that to me because I get the home equity line of credit. So I'm getting some of that stuff.

Put it all together for me. How is this helping me pay off my mortgage faster? Yeah, well, there's a couple of ways to do it. Let's go with the most popular way, especially right now in this economy. In this economy, people, you know, everyone has limiting beliefs.

The interest rates are going up, right? Yeah, yeah, yeah. You get a home equity line of credit that is variable and people don't realize you got to know where it's a look. There are lots of banks offering what's called promo rates, introductory offers. Now, keep in mind, HELOCs are very low in closing costs, if any.

Most HELOCs, there are no closing costs. Wow. You can't close a table with nothing. And I don't mean it's closing costs rolled into it.

They just don't have them. Yeah. The ones that do have closing costs, they're a fraction of what you would pay in closing costs on a mortgage. Very true. bank has, and now the bankers are flooding the market with what we call promo rates, where it's like 1.99 for 12 months or 2.99 for 24 months.

Nothing to prevent you from flipping those. So me personally, I've had 1.99% for three years on my home equity line of credit. So at the 11 month mark, all I do is call the bank up and say, you can either keep my business and renew my 1.99, or I'm just going to a different bank that has a 1.99, which is what I've done for three years. So I keep my rate low, but I do want you to understand that interest rate only dictates your monthly payment. It does not dictate how much interest you actually pay to a certain degree.

Right. Time and balance are far more important. So the quicker you pay off things in time, the less interest you pay. So for example, if you had a 30 year mortgage versus a 15, the 30 years at 3%, the 15s at 5%, which one do you think you're going to pay more interest on?

The lower rate? Hmm. Most people would say the higher rate. That is correct. You would actually say, yeah, less interest on the higher rate.

Yeah, you would. Because of the terms, only 15 years. Yeah. Let's take another scenario. Let's say you have a $300,000 mortgage and a $200,000 mortgage at 4%.

Because the balance is lower, you're actually going to pay less interest on the higher rate mortgage than you would on the lower rate. So we now know that time and balance is far more important than interest rate. And that's where the HELOC comes in.

We are attacking the balance every single day with our monthly cash flow. And it's still liquid should we ever need it for opportunities or life events. And the amount that we typically save instead of putting in a savings account, a CD or a money market, it's sitting in the home equity line of credit suppressing the balance.

And then next month, we got another round of income. And that's why on average, we've got a little over 8,000 clients. On average, our clients pay their home off in five to seven years without changing their existing budget. Wow.

Okay. Okay. So tell me, I already know about sending in extra payments.

That's usually what I've done to pay my mortgage off faster. Tell me kind of the difference between sending in extra payments and then these HELOC payments that go towards the principal. Yeah.

So with a mortgage, sending in an extra payment is a good idea. You can accelerate the payoff of your mortgage because you're sending in extra money above and beyond what is expected. But are you sending in everything you make? The answer is no.

So it is going to be slower because you're only utilizing some of your income as opposed to 100% of your income. See, with a HELOC, we're sending in all of our cash flow. In a mortgage strategy, you have to adopt what's called a payment strategy, where with a HELOC, it's a cash flow strategy. So it's not a payment strategy. Now you're just changing where your cash goes and where it sits.

So instead of a P-Lock, now you get 100% income utilization. We're in a mortgage, sending in an extra payment will speed it up, but you're only utilizing a fraction of your full potential, which is the greatest asset, which is your cash flow. So you can't put 100% of it into a mortgage.

Here's the other thing. As you're accelerating it, let's say you have an opportunity that pops up. you know, 30 days from now.

And you've got four days to capitalize on that opportunity. Let's call it a flip or a foreclosure. Yes, let's talk about that. Because those, you know, those are our next questions. You got a foreclosure and you've got four days.

This is real world example. My business partner was facing foreclosure and he had four days to prevent it from going into foreclosure. If you're in a mortgage and you've got equity and you just now found out about this opportunity, it's going to take you 30 to 45 days and thousands of dollars to get access to that equity. That's right.

With a home equity line of credit, because he was storing all of his cash and suppressing the balance of his home equity line of credit. He's got access to it 24-7. Yeah. He was able to pay cash for that property, utilizing his property, and then rented it back to the person who was facing foreclosure, and then gave him a little bit more cash to clean up the yard, fix it up. Now he owns the asset.

He created a cash flowing asset, and he was able to do so because he was liquid. That's the issue. There's a couple issues with paying extra on your mortgage. One, it's a slower process.

Two, which I think is far more important, is liquidity. Yes, that's a big deal. That's a big deal.

So I'm hearing a really, you just went off for a second there. So how can we use heat locks to grow our real estate portfolio? Obviously, I'm all about real estate, growing your wealth, you know, using real estate to get to that next level and get a portfolio. So how could how could someone use this to for real estate investing?

Yeah, here's a couple of benefits about it, especially when it comes to real estate investing. Let's say you've got access to, it doesn't cost you anything to have access to this equity. All right, let's say I have a home free and clear, $300,000 property, and I don't owe anything on it.

And in the hip hop world, it's costing you $0, right? But you still have access to the equity. So as soon as you swipe the card, you can have access to however much you want.

Right. In the mortgage world, you have to predetermine how much you're going to use and then start paying all of the interest on the front end. With a HELOC, you have access to $300,000, but let's say you only wanted to use $100,000 of it for right now. Maybe another month from now or a year from now, you're only going to pay interest on what you've used, not what you have access to.

In the mortgage world, again, you've got to predetermine, well, I may need $300,000, but I don't know. I don't really have a plan for all of it just yet. Right. access to it. You've started the mortgage process all over and the amortization schedule, not so much the HELOC.

But let's use real estate investing for an example. Let's say, and these are terrible numbers, but it's easy math for people to follow along with. You typically invest in $100,000 properties, right? And you've got $100,000 of equity. How many properties do you think you can buy with $100,000?

Well, there will be one based on those numbers. Yeah. And here's how. So I've got access to it.

We're always using other people's money. That's right. On investment properties, you can actually get a HELOC for a purchase, meaning you buy the property. And at the closing table, it actually closes as a HELOC. It does not close as a mortgage.

Okay. I mean, it could be a purchase. So if I'm buying $100,000 properties, all I got to do is come up with the 20 grand.

Right. If I have $100,000 of equity, I'm buying five doors instead of one. That's right. financing the other 80%. And now if I've got vacancies or anything else, I've also increased the cash flow.

So instead of exhausting 100,000 of your equity for one property, exhaust all of your equity for five properties. I love it. I love it.

So essentially you can do a hundred percent financing by using your HELOCs and equities and other properties. So you could grow your portfolio a lot faster this way. Correct. Yep.

Yeah. I love it. I love it. Okay. So who's qualified, you know, what, what are some of the qualifications for a home equity line of credit?

So HELOC. I'm glad you brought that up because this is not perfect for everybody. You have to be positive is number one.

Cashflow positivity means you make more money than you spend. Unfortunately, most Americans are living paycheck to paycheck. A potential client called last week. She's making three grand.

Guess what she spends? Three grand on a weekly basis. Unfortunately, you need a conversation with Dave Ramsey. And I say unfortunately, because he's a financial entertainer, not a financial guru.

So you need to go talk to him about budgeting because there's no sidestepping of budgeting. That's true. You cannot spend more than you make. That just is what it is.

Or you'll never be rich, no matter how much money they give you. If you always spend more, you could make $100,000 in a month. If you spend $100,000, you're just as broke as someone making two grand a month.

Unfortunately, we see more at the upper end than we do at the lower end when it comes to budget. It's not about how much you make. It's how much you keep, right? Right.

So you've got to be cash flow positive. And number two, we ideally like to see somebody with 10% down or 10% in equity. So let's say it's a $300,000 property.

You owe no more than $270,000. So you've got 30,000 of equity there that we can work with. So that's enough because most banks guidelines, they'll do 90% financing.

There are a few that will do 95, even a hundred percent financing, but their terms and conditions change dramatically because the risk is a lot higher. Right. Another thing is a HELOC not only doesn't have closing costs by and large, but it never has mortgage insurance.

There's only one product out in the marketplace. That's a HELOC and it's really via mortgage lender. that has mortgage insurance. Of the other 11,000 banks and credit unions out there, they don't have mortgage insurance, even if you're borrowing well over 80% financing. So we like to see 10% equity.

We also like to see decent credit, not perfect credit, but 680 plus credit score. So if you've got a 680 plus credit score, cashflow positive 10% equity, we can work with that. Really?

Okay. So So What does working with you kind of look like? Obviously, this is the replace your mortgage strategy. So this is big. You've helped like so many people.

Seriously, like this is how I even got like I have to talk to Michael Lush. Like so many people are telling me about this strategy. So kind of tell me about some of the students and what their experience has been like. How's this working out for people?

Yeah, it's really cool to watch because some people get in and only want to be debt free in the initial stages of it. it, right? Really?

Okay. I can see so much more, but I get that. That's an easy goal. Yeah.

Me and you think a lot alike. So I'm 44 years old. I think I still knock on wood, got plenty of life left in me. Same here.

Once. And that was when I first paid my house off with a HELOC. It took me three and a half years.

I got the t-shirt and that was it. And I'm like, okay, but now I've got all this equity. That's not doing anything for me. Right.

So I don't technically want to be debt free. So They get into this. If they want to be debt free, I don't know a better strategy of getting your home paid off free and clear as fast as possible without changing your budget than this. Yeah. And with the income you already have.

Exactly. But now that they have access to capital and liquidity, we help them spot opportunities. And what you'll notice is that when you have capital and liquidity, opportunities are in your face every single week.

Right. No, you wouldn't spot one if it smacks you in the face. Right. usually about six months to a year in. They're like, okay, yeah, now I've kind of mastered this.

Shouldn't I leverage this? I'm like, yeah, yeah, yeah. If you're my age, 44, 55, heck, if you're 75 and still hustling, absolutely, it's cheap.

If I've got investments that I can make 20, 30, 50% ROI year on, why not leverage my 1.99 to go get something that's going to earn me 10, 15, 20%? I've got it. maybe 15% a month. So that's cheap cost of funds. So I'm going to leverage debt to buy more cashflow assets.

And guess what happens when I earn those cashflow assets? Guess what happens to my HELOC? It goes down even faster because my-Yes, that's what we see by and large is a lot of our clients do end up getting into real estate investing because now they've got access to capital, access to down payments.

Yeah, I can see that. And that's definitely something that I'm interested in doing as well. So I started- getting into this and learning what you're doing. Cause I was so impressed at the, that I had never even thought about this. Like you said, this was your billionaire mentor that taught you this.

And so I'm sure within that bit in those billions, there were some real estate investments. Yeah. Yeah, they're always diversified and looking for tax deductions. And real estate is just one of the best. I mean, heck, it's produced more millionaires than any other industry known to man.

So again, it's not what you make, it's what you keep. And real estate investing has massive, massive tax implications. Yeah, that's a great other benefit.

So tell me about some of the other business benefits of the RIM strategy. Well, here's the other thing is misconceptions or limiting beliefs is people think that HELOCs are not tax deductible, and they are. So if you get with the right CPA, actually, the latest tax law change in 2018 actually enhanced the deductibility of home equity lines of credit.

Okay. Imagine a corporation ran by a real estate developing billionaire. He's not going to limit deductions on real estate.

Right. But the limiting beliefs were because I. the headlines were the HELOCs are no longer tax deductible and they're not.

Yeah, no way. They're called acquisition indebtedness. So let's say you bought a house on a mortgage and then you refinance that mortgage into a home equity line of credit.

Debt was acquired via purchasing or improving that home. So you actually kept the same tax deduction. So HELOCs in the 2018 tax law change deductibility went up to 750 grand, where it was limited to 100 grand prior to the tax law change.

So there's still a lot of tax deductions available in a home equity line of credit. In fact, every year the bank is going to send you what's called a 1098 mortgage interest deduction statement, whether it's a HELOC or a mortgage. So that's between you and your CPA to tell the IRS what it is.

Now, if you used a HELOC to buy a car, that's not done unless it's a business car. There are ways to buy cars via businesses and the car can be a tax deduction. So you can...

that you lock and lend it to your LLC. And now you have unlimited tax deductibility. So you could do a capital injection from your home to your business and increase the tax deduction.

So I'm not a CPA, but you know, there's a lot of things that my CPA has shown me to do inside of the HELOC world. Wow. That is amazing, Michael.

I didn't even think about that. You're right. I've done refinances on properties instead of selling them, my investment property. So I don't have to pay all those capital gains taxes. Obviously, if I do the cash out refi, I get the cash that's not tax deductible.

But this whole thing with the HELOC, you have really sold me. So how can others reach out to you? Like, because like I said, it was amazing for me to get into your course and start looking at it.

I've already started implementing things. I know people are going to want to know how can we, how can they get involved in this? Yeah, all they got to do is go to replaceyouruniversity.com and nowhere on our site do you have the ability to just pay us. Everyone gets a free consultation, so everyone is vetted because it is not the right fit for everybody. So we want to make sure that it is the right fit for you before you start handing over money and start getting consulting and coaching packages.

We want to make sure this makes sense for you, but we also want to, you know, take away any of those objections that you may have because we haven't answered them all today. So any objections you have, bring it to the table. We're going to spend 45 minutes to an hour on the phone. going through your scenario, going through the numbers and see if it makes sense for you.

And if it does, then yeah, absolutely. It's a no brainer. You know, the other thing we didn't talk about that you asked me that I think is important for folks to know is some of the other benefits of a HELOC. And we always think because you and I are optimistic and we have an abundance mindset, but you know, there are some people out there that have a scarcity mindset.

That's true. We saw this in COVID where, you know, people had loss of income, income reduction, furloughed. what have you.

Heck, we even had a couple of clients where their spouse has passed away. Yeah. So a HELOC, if you mechanize it the right way, you don't even have to make a payment to it.

So let's say you were in, I had a couple of clients, about a handful of clients that were in my class for three years and they have a massive income reduction. And so they've paid, you know, half their home off, but they still have access to that, that limit, right? So our home, they paid it down to 150. They got access to 150. Yeah.

We showed them how to mechanize the home equity line of credit. So instead of feeding it, it started feeding them for a short period of time. So they were never late.

They never had to foreclose. They never had to move out. And when they got back on their feet, they just went back to the strategy and started paying it off. So it's not just something that you can use in moments that you're thriving, but you can also use it in moments that you need to survive as well.

And that's kind of where it led me down this hedge fund path. Now. I've got some associates and I even have my own private equity fund where hedge funds are actually looking for first lien position paper right now.

They're trying to buy up as much of that paper as possible. And here's what we've learned. In 2008, 2009, folks that had a first lien position HELOC had zero defaults. It was a default rate 115 times lower than people with a mortgage.

I bet. Let's try missing a couple of payments on your mortgage. Yeah.

Time to pack up and go. But your HELOC. It can pay you.

It can pay you. And you can, yeah. Oh, my gosh. I don't want to say it out loud, but almost like, right. You can use that cash if you need to, to pay for the payments.

Not just a payment. Yeah. For your life. If you need to.

Right. To support. Yeah.

Wow. Michael. Oh, my gosh. Yeah. Oh, my gosh.

Oh, my gosh. And then even just the thing that you said, what really got me interested, of course, is using equity to build my portfolio. You know what I mean? That was the first thing that got me where I'm like, all right, I'm not sure about this. But then immediately thinking, wait a minute, I have a rental property.

I have two hundred thousand dollars worth of equity in it. Instead of selling it and no longer having that asset, I could get a HELOC on it and easily get 10 more properties easily. Yeah.

Yeah, absolutely. That's 10 more doors. 10 more doors.

100 bucks a month. Yeah, yeah. All going up in value.

Because remember, each of them are their own entities appreciating in value. With real estate, I always go for the three things. Equity, appreciation, and cash flow.

Obviously, cash flow being actually the lowest in my trinity. And so, because I know more importantly. the equity and the appreciation. Okay, so I buy this property now in three years when I'm selling it, it's already gone up in value, especially if I pick some highly appreciating areas like around Disney World, around Charlotte, some of these areas that I absolutely love in Atlanta.

Long story short, and to be able to do that, take one property and easily turn that into 10 is actually a really, really smart idea. And then to even hear that, wait a minute, if times got hard and you needed it, that's... You want to use it. And that's the thing. You don't want to wait till you need money to borrow money.

You want to do it while you're in it. Like you said, your cash flowing positive. Everything is great.

This is the perfect time. This is the perfect year to do this. Yeah. It's you know, you were in the mortgage industry.

So, you know, what a heckum is a home equity conversion mortgage. Yeah. Yeah. Reverse mortgage. Yeah.

I'll sell it. You know, beautiful mustache. Exactly. Exactly. But you and I both know that reverse mortgages are the most.

profitable mortgages out there. They pay the hugest commissions. I mean, you could do a $200,000 reverse mortgage and make 20 grand.

And today we're talking about self-taught. What's the one component that makes a reverse mortgage work? The HELOC. It's a home equity conversion mortgage. The one tool that's inside of a reverse mortgage that makes it what it is and why seniors are getting extorted for all these closing costs is a home equity line of credit.

So I just shared today how all of these seniors could go set up their own reverse mortgage for free. Right, right, right. Without the hassle.

And two, what happens too with the heckum sometimes is, you know, when the person dies and then trying to get the property back for the family. But if you just have the HELOC going, someone could take over those payments and keep it moving, refinance the property. It's a lot easier to get that property and keep it. Oh my gosh.

Wow. Great point. into a trust.

You can roll it up into a revocable trust. Right. Right. Great point.

Great point. So this is definitely, I get a lot of students that come by and they've inherited a property, for example, you know, or something, you know, and they're in a situation and this home equity line of credit could really be the great way to monetize that property and get some properties that they really want. Because a lot of times it'll be, you know, mom and dad's house or grandma's house and they don't necessarily.

see it as an investment property. But if they were able to tap into that equity and get some rental properties and have a whole portfolio, now they're really doing something. That's the abundance mindset, right?

We call it the treasure detection system. People think that there's only a limited amount of capital out there. You just got to know where to look.

There's a ton of capital, whether it's in your own backyard or somebody else's backyard. All you got to know is where to look. And there's plenty of capital to do as many bills as you can set your mind to. I agree. I agree.

So when we're talking about the replacing your mortgage, one of the another question that just really comes to me, you mentioned some great benefits, so many great benefits that you mentioned. I mean, I'm not going to lie. I was like super skeptical.

Like, what are you talking about? But when I really look into this, it's easy to see why rich people don't use mortgages. Yeah.

Yeah. They don't want to segregate their income. They want all of their money.

Instead of having money sleeping in a mortgage, you've got money sleeping. Whether it be in equity, here's an example. Let's say you have $100,000 in a tin can buried in the backyard.

No, I'm sorry, $300,000 in a tin can buried in the backyard. Three years from now, how much is that tin can worth? Most people would say $300,000 because that's what you put in the tin can. Yeah.

Yeah. Because of inflation, right? That's right.

A lot of people are looking at equity as, well, I need to hang on to it. I'm trying to store up as much of the equity. The home appreciates. The home is a valuable asset.

The home is not appreciating, right? Or I'm sorry, the cash isn't appreciating. The home is appreciating, but the cash is not appreciating.

Is not, right. I want the home to appreciate, but then wake up that dormant money. Yeah.

It's not appreciating. It's actually going backwards because of inflation. Right.

Let's extract it from the property and let's put it into something where it does appreciate. wake up that money. And that's what millionaires and billionaires understand is, I need my money to work for me. And sitting in your home doing nothing for you, it's not working for you.

You got to wake up those dollars and get them pregnant. Right. And you can't get rich just sitting on cash.

Like that's never going to get you to wealthy. You know what I mean? It's like, you can't save your way to rich.

You really got to get that money, earning money and put it into some vehicles, especially like you said. Put it into a business, for example. Put it where you're reducing your tax liability, for example.

So that's more money for yourself. Get it into more real estate. Get it into other investments. Like you said, wake that equity up. Wake that cash up.

And a HELOC, it's so funny because you're right. They're not advertised as this great vehicle that they could be. Why do you think that is, Michael?

Lack of money, lack of profits. Yeah. Make money based on profits.

And so does every other business. And HELOCs are just not nearly as profitable to a bank or mortgage lender. Mortgage lenders don't offer HELOCs.

That's true. Don't call up your mortgage lender and ask for a home equity line of credit. If they have one, it's going to be a really crappy product that they're also going to charge closing costs for.

Again, it's all community banks and credit unions you need to start partnering with. Those are the ones that have really good products. And, you know, those bankers are paid a salary. So even at a branch manager level, they're paid a salary. So.

Yeah, they'll give you a HELOC. You're not going to have closing costs, especially compared to a mortgage. But you may get a checking account. You may get a savings account. And they're based on a point system.

So mortgages, again, you and I both know. You do one, you can make two to four grand. You do five of them a month, you've got a pretty good living because of what's called a yield spread premium.

Mortgages have huge yield spread premium. They get sold on the secondary market. That's where the money is made. There's huge profits.

Why? Because... You're not just buying one home, you're buying two.

And the home that's paid off is the lender's home, not yours. So think about that. You buy a $300,000 property, you're really buying a $600,000 property because of the way that you financed it.

However, with an equity line of credit, you're still going to pay interest because interest comes along with the debt, but you're going to pay instead of $300,000 of interest, maybe $75,000, right? So that act of profit is why it's not advertised. So let's kind of get to that for a second.

So there's some really great things, but I know the question that's in everyone's mind right now is how could this mess up for me? What could go wrong with using a HELOC? Yeah, easy.

One, not being disciplined. So if you tap into the equity to go buy your S-class Mercedes as opposed to a cash one, and that's, you know, I've got some-It's with anything, I got you. They'll put their business logo on the side.

It's a deduction. They can make money. I get it. But by and large, you know, car to liability. So don't use your equity to buy liabilities.

Use your equity to buy assets. So discipline. And some people think, well, this requires a lot of discipline to do this strategy. It actually requires less. Because with the mortgage system, you have what's called a segregation income approach, where money comes into the checking account, then it goes to the checking, I'm sorry, checking account, then it goes to the mortgage, savings, car payment.

you know, whatever motorcycle loan, what all this, you know, then I've got this savings fund over here for potential utilities or a vacation down the road. So all you're doing is constantly splitting up your income. And when you split up your income, it has less focus and less ability to pay down debt.

So with your HELOC, it's one account that is not only your mortgage, it is also your checking account and all of your money goes into it. And then from there, you can pay your utilities and bills out of that. So now you've got a much more laser approach of what we call a streamlined income approach.

And you speed up the process because you're far more efficient. So in the first couple of months, you're not seeing a lot of traction. But because of the simple interest nature of it and the balance constantly going down, this thing is like a snowball rolling downhill. It speeds up momentum over time. And that's why we see our average client paying their home off an average of five to seven years.

Okay. So we'll replace your mortgage. Most people are paying it off in five to seven years total. Total without changing their existing budget. Wow.

That is incredible. That is so incredible. OK, so one more time.

How how can people get more info on this? Because you mentioned free consultation that you're going to talk to people like I'm excited. I already know a few people that are already like, OK, well, how do I get this? Yeah.

So if you go to replace your university dot com or replace your mortgage, it redirect you to the same spot. And we'll put a link below. Yeah, on there is replace your mortgage. And what I would encourage people to do is there's tons of free content, more than what we've shared today. So just go through all the free content and when you feel like you're comfortable, like, you know what?

I want to reach out to these guys. I'm not scared. I want to find out more. Yeah.

Then there'll be a button to schedule your discovery call. And that's where we'll spend 45 minutes to an hour answering all the tough questions and plugging in your numbers to determine, you know, is it going to be five years for you? Some people it's three.

The fastest is 11 months. Wow. 11 months. Okay. Michael, you can't just brush over that 11 months.

Yeah. Now that was their income was not normal. It wasn't the average American, but maybe you know, like for instance, I paid my house off once. Now I'm at a pace where I could pay my house off every 17 months, but I don't want to because it doesn't take me 17 months to spot an opportunity. So I've leveraged my equity to buy.

I have businesses. I've leveraged my equity to invest in other businesses. I do day trading. We do real estate investing. So you're spotting opportunities more frequently because you have access to capital.

That's right. I love it. I love it because I always have this saying, what is luck? Luck is when preparation meets opportunity.

Because so many people say, they call me lucky. And well, there's two things I'm often called, lucky and childish. Are two of my...

Biggest compliment. So one luck because I'm always kind of prepared. I'm always ready to listen.

I'm always ready to learn. You know what I mean? I'm not a skeptical person.

I'm not. That's where the childish comes in. I will listen to you tell me about magic beans.

I will listen to you tell me about magic crystals, like whatever it is that's working. I want to know I'm ready to learn. And I'm not saying that I'm, you know, but I am I'm childlike in that I want to hear more. I want to learn more. I don't know anything.

You know what I mean? I thought. I was so smart and I ended up in my parents'basement, bankrupt, bad credit, multiple foreclosures. And it was when I realized how dumb I was and just opened up my ears and closed my mouth, I was able to get to this multimillionaire status. So I absolutely love what you were talking about, Michael.

I love the replace your mortgage philosophy. Like I said, I did start off a little skeptical. I really wasn't sure, but as I delved into it and kind of looked at what you were saying and the different loans and you're right, the closing cost, that's a big one.

working in the mortgage industry, because I went to go do a refinance of my primary residence. And it's like a $2 million house or whatever. And they were trying to charge me $42,000 in closing costs to refinance.

And I was like, heck no, you know what I could do with $42,000 and, you know, and I'd just not pay you. And so I'm going to do it on HELOC. And I have another rental property.

And I'm like, I know this is, I'm working with you guys. This is going to work. So I'm so excited, Michael, so excited.

What's more criminal than the closing costs is look at the loan estimate. I know. Loan estimate is going to tell you what tip is, total interest percentage.

Yeah. What you're paying in interest. Oh, my gosh.

You remember those truth in lendings when you would see that statement and it would say you're borrowing $300,000. And then after that 360th payment, you went from well over almost $2 million, $1.6 million or whatever if you paid it out all 30 years. And.

Then everyone starts talking about, okay, pay the mortgage off faster by sending in an extra payment. And that's something I always have done. But now to take this to the next level, like I said, this is billionaire status type thinking. Like, wait a minute, a HELOC as your primary mortgage and no more primary mortgages, no more of those 30-year mortgages.

No. I mean, heck, as a business, we operate on business lines of credit. We don't operate on loans. You're right. You're right.

Absolutely right. We don't get a mortgage for our business. Exactly.

Wow. There's actually a way to couple your business line of credit with your HELOC to speed up the process even faster. Tell me. A business line of credit, you know, you can get 0% business line of credit. That's right.

So, money going into the HELOC suppresses the balance and suppresses the interest and speeds up the time, right? Then we also know diversely taking money out. increases the balance, increases the interest, increases the time.

Well, what if there was a way where you have the HELOC that only used your income, but you never had to pay your expenses out? I would say never. Periodically had to pay your expenses out of it. Now you use your business line of credit at 0% for all of your other expenditures. And it's called offset accounting.

And the longer you stretch that out, the faster you speed up the process. Not to mention a lot of free cash. I'm going to Florida, the panhandle of Florida in two months.

Got a house on the beach and guess how much it costs? Zero. There's nothing but points that paid for it.

Wow. Wow. Okay, Michael, my mind is blown. One more time.

How can people find Replace Your Mortgage? Yep. ReplaceYourMortgage.com or ReplaceYourUniversity.com. It'll take you to the same spot. Click.

There's a carousel there of all the different verticals that we have. Click on Replace Your Mortgage. Watch. I've got a book. You can read the book for free.

You can watch a lot of the material for free. And when you're ready for some coaching, just click the button for a call and we'll call you and set you up. Well, this has been amazing, Michael.

I'm also going to put a link below. Like I said, I am a fan. My team is a fan.

Like I said, we saw this stuff coming up in the feeds. We love doing our research and you really checked out. So I absolutely love that you were able to come here today and I was able to catch up with you.

And again, it was awesome. This is great information. Use the link below to get in touch with replaceyourmortgage.com or replaceyouruniversity.

They are helping people replace that income and get that good business going. Okay, Michael, so you've told us about an amazing offer with Replace Your Mortgage and I want to give this code to my audience. Yeah. So I want to make sure that your audience is using your link because we love working real estate investors.

They already get it. They get it a lot quicker. So because they get it quicker, there's less effort from us. So we want to pass on that discount to your audience.

So they get $500 off of our coaching if they use your link. So in the description below, make sure you're using Noelle's link and that way you get $500 off. Awesome. Thanks, Michael.

Transcript for:Debt-Free Living with HELOC Strategy

Transcript for:
Debt-Free Living with HELOC Strategy