Real estate investors often pose this scenario to me. “I’m just 10 years from retirement, yet I wanna do better than the cash flow I’ll have by then. Is there anything I can do to make that happen?”

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Transcript:   You’re 50-55 years old. You know barring some unforeseen circumstance, you’re going to retire in about 10 years. The thing is, for whatever reason, your real estate portfolio is either mostly or completely debt free. Now, your choice is, I can just keep collecting all this income. Maybe I can buy notes with it. Maybe I can just finish paying off my primary residence. Maybe I can take a couple of years of it, 3 years, whatever. Go buy that cabin by the lake I’ve always gone to instead of renting it from Frank next door. There’s all kinds of things you can do with that cash flow if you insist on waiting to 10 years. Let me give you an alternative incumber that portfolio all over again. You’ve got 10 years to pay it off. Because if you can borrow, let’s say you can borrow 2/3 of a 3 million dollar portfolio. That’s give or take, 2 million dollars. For 2 million dollars, which by the way, is tax free. Almost every single time you do that on a pure re-finance, it’s tax free, by definition of the IRS. Now you’ve got 2 million dollar. Of course you don’t have the thousands of dollars a month to cash loan anymore. You’re back to where you were when you start a give or take. Think about it, what if you originally bought all that portfolio with a median interest grade of 4 and a half to 5 and a half. What you did this for 7, you don’t care, you just borrowed 2 million dollars, tax free, fixed rate 30 years of 7%. If you go and, say you went to the BawldGuy Note Fund. You start making 8% right away. Maybe you don’t want to buy notes. You’re making right away, $160,000. Your management is to go online and make sure the electronic deposit of the 8% hit the bank account you told them to use. But you did it to buy notes. Let’s say you are always yielding at the bottom of the range. The range is about 12 to 15%, all that’s going to change over time. I remember in San Diego, where you didn’t buy a note at a discount or you didn’t make 15 to 20. It always changes just like anything else. Now it’s 12 to 15, let’s use 12. That 2 million dollars? At 12%? You’re barely making under a quarter million dollars a year. You’re making $240,000, you’re making $20,000 a month. You think you can pay that 2 million loan off pretty quickly? Nod your head, yes, emphatically. You think you can do it in 10 years? Geez, do you think you can do it in way under 10 years? Yes, you can. You can do all kinds of thing. Maybe you don’t care, maybe you’re going to take 10 of that 20,000 or wait a minute, you’re paying taxes, don’t forget that. Let’s take that $20,000, is a whole lot of 14th, a month. At 14,000 a month, to 2 million dollars in payment, you’ll pay it off. You’ll pay it off in time because you’re also getting cash flow. You still have 30% equity. What’s going to happen is, you’re going to hit retirement, and those things are going to be free and clear again. Meanwhile, back at the ranch, it’s far more likely the not, that that new part of your portfolio of loans, of notes, was just probably at least 3 million dollars in face value, likely a little bit more has paid off probably 40 to 60% of that at least. The current numbers say, the average note for a home is paying off in about 9 years from origination, we just said 10. If you’re going to do that, you have the ability to hit retirement again with your 3 million dollars of real estate free and clear.