We spend years searching for new ways to make money, but I recently came to the realization that I was sitting in my next passive income stream all along…
And so are you!
Instead of searching far and wide for your cash cow, I’m going to open your eyes and show you how close that repeating windfall actually is…
You may or may not be familiar with the term Passive Income.
Passive income is a source of income that streams into your bank account without you having to lift a finger.
Well, the reality is that you’re living in what could become your very own stream of passive income:
Your home.
This passive income stream, that’ll allow you to live a wealthy life, is unlocked through something called a Home Equity Line of Credit (HELOC).
The term HELOC might worry you at first.
You may 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 sportscar, and travel the world as much as you’d like—or you can bathe in luxury in your new large house—it’s up to you.
So what exactly is a HELOC?
A HELOC is a line of credit that you take from the bank by putting your home up for collateral.
But hear me out!
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 80% 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 with interest rates.
But don’t worry, these interest rates are tax deductible.
So, you’re probably still wondering why I’m recommending 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 $360,000.
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 jump 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 pay the bank back 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.
With this knowledge, do you now see how you’re sitting in your next passive income stream?
