I must set up this article with a short preface. Those of you that know me know that I have been an investor in multi-unit residential mortgage refinancing (apartment buildings) since 1997. I have been focused on that type of rental real estate primarily because, in Southern California, I have never been able to locate a single family property that the numbers would work on. I am totally a positive cash flow kind of guy refinancing mortgage have never purchased a property that did not generate a positive cash flow-I think that would just be rude.
Having said that, over the years, I have had many people ask me how I do what I do and I have always shared everything with them. Several years ago, one of my friends asked and I shared. He promptly went out and purchased 5 single family homes in various states around the country. Oh No! I never said anything about doing that; it goes against my basic tenet. Now I do understand that many people have a different vision of real estate and I honor that. Here was his vision: He was 35 years old and was willing to pay the negative cash flow on these properties for the next 3 decades because he wanted them to be mortgage free in 30 years when he would be 65 years old and they would all be positive cash flow at his retirement.
What happened next? Approximately 6 months after he purchased those properties, he and I were speaking about what I do in my active business...I have a passion for helping people get out of debt. I shared with him that it may be possible for him to have all of those properties paid off faster than the 30 year time frame...I also let him know that it may not be possible, and the only way to know for sure would be to do an analysis of his particular situation...I had no idea what to expect, I just know that I wanted to help if I could. He was skeptical.
As it turned out, he is able to have all 5 of his rental properties paid off in approximately 7 years! In his specific situation, the mortgage acceleration software saved him 23 years of time and many thousands of dollars of mortgage interest, without refinancing or changing his budget.
His experience has also inspired me to open my mind. I had always known that I could use the concept on my large properties to take them from being positive cashflow to being more positive cashflow...I now am looking for some single family properties that I can purchase. By using mortgage acceleration on them, the may be negative cashflow for a while, but at least I don't have to wait 30 years.
James Oates III is a former Captain in the United States Marine Corps, an entrepreneur, a Harley rider, and investor, who has a passion for helping people get out of debt. Learn more about James at http://www.FinanciaLiberty.com and http://www.JamesOatesIII.com Save Time; Save Money!
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