Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › THE "LIVING FREE AND CLEAR PROGRAM" FOR REAL
December 13, 2007 at 12:38 am #4243
T.J. Mars, one of the nicest guys yu’ll ever meet and the president of the Portland REIA has developed a truly marvelous system for paying your mortgage off 15-20 years early without impacting your income, savings, expenditures or lifestyle.
Just go to our “Trusted Partners” link here on the site and it’ll whisk you off to T.J.’s stie.
The crux of the program is this: You either replace your current first mortgage with a HELOC, or setup your second as a HELOC (Home Equity Line of Credit). From there you pay all of your bills out of the HELOC and use it as your checking account for other purposes (purchases, entertainment, whatever). What happens is that all of your excess cash now goes to mortgage principal, tremendously lowering the interest portion of your payment and making it mostly principal pay-down saving you hundreds of thousands over the course of your loan.
you still have total control of your income and your savings and side moneys… When your income (paycheck, commissions, etc.) comes in it is simply deposited in the HELOC to pay it off every month…meaning that your interest on the HELOC itself can be held at zero (assuming a full pay down of the excess every month).
There are other companies promoting similar products and emulating TJ’s success, but after analyzing several of them and attending their seminars, I find the Living Free and Clear system to be the simplest and easiest. When you sign up you get the full software package that monitors your budget, your income and outgo, and keeps your equity-line in perfect proportion. As your bills are paid each month, you still have the entire HELOC to borrow from if you wish for unexpected expenses or opportunities.
Just go to the Trusted Partners hyper link here on the site and you’ll see the VERY few companies with whom we have consented to associate ourselves.January 9, 2008 at 5:02 pm #23901
Can this system be used for investment properties that are or will be put into a landtrust. I own the properties, and I sell to RB using the land trust. How can I incorporate this system to pay off my underlying loans earlier if they are in a land trust?
Thanks in advance. Looking forward to meeting you on the cruise.
TraceyJanuary 18, 2008 at 3:13 am #23902
Yes you can. Just make sure that your documents stipulate that all principal reduction goes to you at termination. The other details are worked out by our illustrious documenttion department (Joe, Mark and Carri).
BillJune 4, 2008 at 11:03 pm #23903
Bill, I know a few MLM companies are selling HELOC and LOC strategies and software along with non MLM companies that look like they really work…makes mathematical sense as you keep your average daily balances down, therefore greatly reduce interest costs and people actually get addicted to the “mortgage clocks” that they get to watch. My problem with the MLM versions is they charge like $3,500! Most people can do this for free, but they won’t have the nifty software to analyze and view their progress.
As a financial adviser previously, it was always hard to help people recognize that the average person never pays cash for anything…even when they hand someone cash. The reason being is because if they have any debt, they give up the opportunity to pay down debt and therefore they are technically financing what ever they just spent money on. On the flip side, they also give up the opportunity to earn a rate of return on their money and are still financing it through the loss of the ability to earn a rate of return.
The mortgage clock on some of these software programs helps people to see that. When they put deposits in…they see the clock go down – really far down…into single digit year area. As they pay bills the clock goes back up. As they spend their discretionary income, it goes up even more. They get addicted to paying off their home fast! A 30 year mortgage is so far out there, that they really don’t care, but when they see it can be done in 1/2 – 1/3 the time, they end up wanting to make it happen as quickly as possible, especially when the wife is in charge of balancing the check book. Many people are out-pacing the original estimate on pay off when they signed up.
My only concern is that many HELOC’s have been shut off or significantly reduced without warning because of the market. That could put a serious hiccup into someone’s finances especially if they have setup direct deposit, which many allow.June 4, 2008 at 11:24 pm #23904
alan dale grossMember
As a financial adviser previously, it was always hard to help people recognize that the average person never pays cash for anything…even when they hand someone cash. The reason being is because if they have any debt, they give up the opportunity to pay down debt
That’s why “paying off” an 18% Credit Card, for Example is such a Good “Investment.” ( & * )
and therefore they are technically financing what ever they just spent money on. On the flip side, they also give up the opportunity to earn a rate of return on their money and are still financing it through the loss of the ability to earn a rate of return. (*)
And, the Loss of the Ability to Earn a Rate of Return is Soooooo Important in Tax Strategies, also.July 29, 2008 at 5:21 pm #23905
I’ve attended other seminars on the subject and T.J. Mars’ program appears to be the best thought-out of them.
BillAugust 4, 2008 at 2:55 pm #23906
what if the HELOC gets Frozen?
Or if there is one in place or the sb has bad credit and once they deposit all their living money the bank decides to freeze their account?
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