What would you spend your money on if you had an instant, infinite cash dispenser?
You’re probably unaware, but you’re actually living in what will soon become your very own money machine—and it’s such a simple process.
That’s right, following these simple steps will turn your house into that instant cash dispenser that’ll push you into financial liberation once and for all.
You’re literally sitting on a passive income machine that’ll fund your habits and luxuries for the rest of your life, and here’s how to unlock it…
You’ve probably heard the term passive income before, but you might not be too sure what it means.
Passive income is an endless source of income that streams into your bank account without you lifting a finger. Sounds great, right?
The reality is that you’re living in what could become your very own stream of passive income:
Your house.
This passive income stream, that’ll allow you to live the life of the wealthy, is unlocked through something called a Home Equity Line of Credit (HELOC).
The term HELOC might scare you off at first.
You probably associate the term with a second mortgage or debt, but it can very easily become the simple tool to unlock your passive income stream.
You see, using a HELOC in the right way will push you into a life of financial liberation.
You can quit your job, buy a Ferrari, and travel the world as much as you’d like—or you can bathe in luxury in your new mansion—it’s up to you.
So what is a HELOC, exactly?
A HELOC is a line of credit that you take from the bank by putting your home up for collateral.
But stop right there!
I know that sounds scary, but using my method turns your HELOC into an endlessly profitable stream of income.
A HELOC allows you to borrow up to 85% of your home’s value, and if you withdraw a large amount at one time (which you’ll see why we’d do this in a second) you’re eligible for a fixed rate income.
That means you’ll have the same interest rate on your HELOC regardless of what the Fed does to interest rates.
But don’t worry, these interest rates are tax deductible.
So, you’re probably still wondering why I’m recommending that you take a HELOC on your home, and you’ll also want to know where this endless source of passive income will be coming from…
Consider this scenario:
Your home is worth $450,000.
You request a HELOC which would allow you a credit line of up to $382,500.
You don’t have to take out that full amount, and you only pay the tax-deductible interest on what you withdraw.
You then find a couple of two-bedroom apartments in a popular area that you buy as investment properties for $180,000 each.
This is where your endless source of income begins.
You then rent out each property for $1,500 per month.
You can choose to pay off your HELOC over the course of the next 20 years by taking half of that $3,000 income and paying off your line of credit.
This would see you collecting a profit of $1,500 per month for the next 20 years. After that your profit would bump up to $3,000 a month.
Remember, the interest on your HELOC is tax-deductible so the only real concern is how quickly you’d like to square up with the bank so you can move onto your next pair of investment properties.
There’s no stopping how many times you can use a HELOC to unlock even more streams of passive income.
Using this tool to your advantage instantly turns your house into an infinite cash dispenser.
