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  • Sylvia Ho

Cash Damming: A Landlord's Success Story



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!


ย The client has a $585k mortgage in which they have committed 31 years to pay down the mortgage. (๐ต๐‘™๐‘ข๐‘’ ๐‘™๐‘–๐‘›๐‘’ ๐‘œ๐‘› ๐‘กโ„Ž๐‘’ ๐‘‘๐‘–๐‘Ž๐‘”๐‘Ÿ๐‘Ž๐‘š ๐‘๐‘’๐‘™๐‘œ๐‘ค)


๐๐”๐“ ๐ญ๐ก๐ž๐ฒ ๐ข๐ฆ๐ฉ๐ฅ๐ž๐ฆ๐ž๐ง๐ญ๐ž๐ ๐œ๐š๐ฌ๐ก ๐๐š๐ฆ๐ฆ๐ข๐ง๐ ! ๐‡๐ž๐ซ๐žโ€™๐ฌ ๐ฐ๐ก๐š๐ญ ๐ก๐š๐ฉ๐ฉ๐ž๐ง๐ž๐ ๐š๐Ÿ๐ญ๐ž๐ซ ๐ญ๐ก๐ข๐ฌ ๐๐ž๐œ๐ข๐ฌ๐ข๐จ๐ง


  1. 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. (๐‘…๐‘’๐‘‘ ๐‘™๐‘–๐‘›๐‘’ ๐‘œ๐‘› ๐‘กโ„Ž๐‘’ ๐‘‘๐‘–๐‘Ž๐‘”๐‘Ÿ๐‘Ž๐‘š ๐‘๐‘’๐‘™๐‘œ๐‘ค)

  2. The client will receive $179k ๐ข๐ง ๐ญ๐จ๐ญ๐š๐ฅ ๐ญ๐š๐ฑ ๐ซ๐ž๐Ÿ๐ฎ๐ง๐๐ฌ over the life of the mortgage.

  3. They will pay off their mortgage approx. 10 y๐ž๐š๐ซ๐ฌ ๐ž๐š๐ซ๐ฅ๐ข๐ž๐ซ ๐ญ๐ก๐š๐ง ๐ฉ๐ฅ๐š๐ง๐ง๐ž๐. MORTGAGE FREEDOM! ย (Yellow ๐‘™๐‘–๐‘›๐‘’ ๐‘œ๐‘› ๐‘กโ„Ž๐‘’ ๐‘‘๐‘–๐‘Ž๐‘”๐‘Ÿ๐‘Ž๐‘š ๐‘๐‘’๐‘™๐‘œ๐‘ค)

  4. ๐ˆ๐ง ๐€๐๐๐ข๐ญ๐ข๐จ๐ง ๐ญ๐จ ๐ญ๐ก๐ž ๐ฌ๐š๐ฏ๐ข๐ง๐ ๐ฌ ๐š๐›๐จ๐ฏ๐ž,ย 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.

  5. By having a rental property, their net wealth improvement is $1.384M



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