Here is an example of a Landlord who wanted to achieve MORTGAGE FREEDOM BUT they were in negative cash flow on their rental property by $1130/month
They implemented cash damming and turned their $585k mortgage from a non-deductible mortgage to a tax-efficient money-making machine!
The client has a $585k mortgage in which they have committed 31 years to pay down the mortgage. (𝐵𝑙𝑢𝑒 𝑙𝑖𝑛𝑒 𝑜𝑛 𝑡ℎ𝑒 𝑑𝑖𝑎𝑔𝑟𝑎𝑚 𝑏𝑒𝑙𝑜𝑤)
𝐁𝐔𝐓 𝐭𝐡𝐞𝐲 𝐢𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐞𝐝 𝐜𝐚𝐬𝐡 𝐝𝐚𝐦𝐦𝐢𝐧𝐠! 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐞𝐝 𝐚𝐟𝐭𝐞𝐫 𝐭𝐡𝐢𝐬 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧
In just 9 years, Debt Conversion is achieved, resulting in the attainment of a maximum tax-efficient mortgage. By converting bad debt into good debt, they now enjoy the greatest tax refunds. (𝑅𝑒𝑑 𝑙𝑖𝑛𝑒 𝑜𝑛 𝑡ℎ𝑒 𝑑𝑖𝑎𝑔𝑟𝑎𝑚 𝑏𝑒𝑙𝑜𝑤)
The client will receive $179k 𝐢𝐧 𝐭𝐨𝐭𝐚𝐥 𝐭𝐚𝐱 𝐫𝐞𝐟𝐮𝐧𝐝𝐬 over the life of the mortgage.
They will pay off their mortgage approx. 10 y𝐞𝐚𝐫𝐬 𝐞𝐚𝐫𝐥𝐢𝐞𝐫 𝐭𝐡𝐚𝐧 𝐩𝐥𝐚𝐧𝐧𝐞𝐝. MORTGAGE FREEDOM! (Yellow 𝑙𝑖𝑛𝑒 𝑜𝑛 𝑡ℎ𝑒 𝑑𝑖𝑎𝑔𝑟𝑎𝑚 𝑏𝑒𝑙𝑜𝑤)
𝐈𝐧 𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧 𝐭𝐨 𝐭𝐡𝐞 𝐬𝐚𝐯𝐢𝐧𝐠𝐬 𝐚𝐛𝐨𝐯𝐞, Since the clients are paying off their moqrtgage 10 years earlier, they will have future payment savings of $391k! This equates to a Pre-Tax Income savings of $745k.
By having a rental property, their net wealth improvement is $1.384M