All In One Loan Breakdown 2024

Foreign.

Hello and welcome everyone. How we doing this morning? I have a special treat for you all and that is I have my good friend here, Harrison George with us. Back again. It's been over a year since we've done some really good quality work together. And just to remind folks, I'll even have it tagged below in the descriptions in the comments. But we did a video, I'm actually going to pull it up. It was the all in one loan explained back in this must have been 2020 I want to say. Yeah, so about two years has passed, the product is still active. Lots of people have signed up, you know, for the product that that video has almost 10,000 views and then we had a couple of short clips that came out of that and a lot of people have been really enjoying the product. If you're here tuning in live and you have the all in One loan comment below, let me know how long you've had the product for. What have you used it for? How's it been benefiting you? Just, you know, share that. Would love to see if there's anyone in the house that actually has the all in One loan product. I know I have quite a few of my clients going all the way back to, to even I want to say before COVID but definitely after Covid it was a very, very popular product. Rates were really attractive. It's a different environment today and I still think the product has a ton of value as we continue to progress in this high interest rate environment that we're in today. So with that being said, we're going to do an all in one loan breakdown again. Just updated in 2024. We're going to look at what's changed, what's, what's in the pipeline, what people should be aware of and just really break this down for you all. And the difference between the video we did last time was pre recorded. So now we're going to be live doing the lesson and then going to answer your questions. So if you got questions about the all in One, how to qualify, what are the fees different, you know, how to use the thing. We're going to break all that down here and then just dialogue with you guys.

All right.

So with that being said, Harrison, I want to give you the floor to just reintroduce yourself again and your, your position with all in One. You know the history of the all in One loan product I think would be great just to get a little recap on the history of this product, how it was formed and maybe what was the original sort of purpose for the product, for the company rolling this kind of a product out and maybe what has it evolved into? If it's changed or if it's been the same, I think that'd be great. Take over.

Yeah.

Well, pleasure to. Pleasure to be on here so much. Denzel, thank you so much for giving me the opportunity to talk about the story of the all in One. You know, it all starts back in 20 BC. Oh, sorry, that's too far back. Essentially, the all in One kind of was brought to the United States from Europe, Australia. Out there, they had programs that were called offset or sweep accounts, and it was actually a product brought by the CEO and founder of CMG to the United States 2006. It was under a different name back then. It was called the Homeownership Accelerator.

They.

They did change the name to the all in One. Little different functionality, but the premise of the product has essentially stayed the same since it's really been brought out here in the United States. As for. As for kind of, you know, a little bit of a breakdown on us or the CMG as an entity, the intention kind of to bring this product here and to utilize it is to provide obviously something different that's not being offered anywhere else. Or if there are other programs that are being offered similar to this. It's not like it's the majority. I mean, when you talk to somebody, you go, okay, you know, what are. What loan are you in? Or what are you trying to buy a home? What product are you using? It's, you know, it's one of the standard FHA, VA, conventional, you know, USDA, etc. You obviously have the outliers that are doing different financing tools like portfolio loans and bank statement and so on. But for the most part, the people that are coming to us for this loan realize that they're in a different financial position than perhaps they were when they first bought their home. And this is a way for them to essentially actually be treating themselves like a business. They get to take ownership of their money and how much they get to use towards their home, principal balance. And then they're rewarded for it by having the money put into their bank account that is their mortgage, so that they spend less in interest, helps them pay their home off faster. Obviously. It gives them access to, you know, additional funds for additional investments or even pay off other debts that they have. You know, so many times is that, hey, I have this car that has a $600 a month payment, but we owe 20 grand. Does it? How do I know if it makes sense. Well, we just run a simple little math problem and in that example, obviously I skewed the favor on that one. But that's probably very similar to many people that have gotten into this loan. Essentially they pay off that credit or the car or the credit card. Their payment on their home goes up slightly, but they're saving drastically more in monthly cash flow.

Gotcha.

Cool.

Anything else in regards to. So you mentioned Australia.

Right.

Like, so I've always told my audience and this is based off of my experience just coming across the concept, actually I don't have the book with me. Terrible. So there's a book that I read is called how to retire, you know, your home, how to pay off your debt years sooner by a guy named Harsh Gill. And he who I think is probably either either he was the first one or one of the first people in Australia to introduce the. Actually design the offset account, the heloc.

Right.

Really?

So yeah, this guy named Harsh Gill. So he's I think based out of Australia. I don't know if he's originally from there. And then I think at some point in time came to the US Right and, and rolled out his, his system. He's got a software that he sells.

And yeah, there was a software many years ago.

Right.

So you mentioned the, the owner.

Right.

Of or the founder of the all in One loan product.

Right.

Also out of Australia. Did I hear that correctly?

No.

So the CEO of CMG went down to Australia and learned about the product that they were offering there and said there's nothing really similar to this in the United States. So it came here and went through the process of building those relationships about, you know, creating the banking relationships to be able to actually offer this program.

Gotcha. And do you know roughly the what, what time that was? What, what year?

Around 2006.

Around 2006.

So this product's been, been here for a while, but obviously been overseas for much longer now. It's the, the all in One is like the, the Tesla of loan programs if you will. Whereas the 30 year mortgage is like the Model T because that was the, you know, it was created after the Great Depression to incentivize home ownership. You know, we need to start updating the industry and it's, you know, we don't do the big large billboards. You know, there's no stadiums named after cmg all in one stadium or something like that. It's like this talking to people one on one and just correct. Having people brag about their amazing all in One at the dinner table on Thanksgiving as opposed to their 30 year mortgage.

Yeah. Which, which brings up for a majority of people the, the validity of the product. And then there's a strategy that's attached to this specific product. So there's two worlds that's going on.

Right.

And the world that I'm in is the velocity banking world.

Right.

Which is just a marketing term to define a strategy that a lot of my audience is, is, is practicing. So this velocity banking strategy also originates from Australia and Australia they were naming it Mortgage Acceleration System.

Right?

Yeah.

Or Debt acceleration Program System. It just whatever the name was, it had to do with basically using a banking product so debt to eliminate and accelerate other debts. So it's like when I'm talking to someone brand new, I'm like, this is basically debt consolidation, but with more control, more flexibility, more liquidity, better terms on the agreement of the product that's being offered to you.

Right.

So I kind of start them there.

Right.

And then I want to say, oh, over the years, especially in the last maybe five to 10, the amount of steam that has picked up in this concept, velocity banking, some call it accelerated banking, some call it paycheck, parking, some call it mortgage acceleration, accelerated velocity banking, all different kinds of terms, marketing terms to define a strategy. And then there's a product from banks, not every bank, certain banks that I've spent the last six years educating my audience on what types of banks to look at, how to qualify the different options. You have, you got credit cards, you got personal lines of credits and you got HELOCs and you have all in one.

Right.

And all in One is very, you could say it's, it's basically a type of HELOC product.

Right.

Very, very, very similar. So that's what's kind of happening. And then when people get on the Internet and they see my videos, maybe other people's videos on how they could be using debt to pay off debt faster immediately it's met with some resistance and even has gone as, as far to the, the big, big YouTubers, the big content creators in the finance industry that have just flat out called this world, this space, a total scam.

Right.

So whether they say, whether they say velocity banking is a scam, leveraging debt to pay off debt is a scam.

Right? Right.

Like the strategy of being able to park all your income into this tool and, and pay your bills out of it and increase cash flow and reduce your interest costs.

Right.

Has, has been viewed by, by very, very smart, intelligent financial advisors, other financial content creators as A as a total scam.

Yeah.

And so you have that resistance just on social media, on the Internet. And what's interesting for my audience to really build their confidence, especially for those listening that are already not just bought in to the strategies, to the concept, to the products, but you're also living it, doing it, you've experienced results. So again, if you're someone that has the all in one loan product, let us know in the comments how long you've had it. If you've been practicing the velocity banking strategy with another product, another type of HELOC P lock, put that in the comments as well. Let me know your, you know, put your results, success, all of that in there because I think it's super important that more people need to see this.

Right.

And hear about it. And so in addition to financial influencers, gurus, content creators like myself that don't necessarily have a whole lot of credibility. I did not go to college, I did not get a degree in mathematics, I did not work in the banks.

Right.

I'm a 28 year old kid.

Right.

So you've got people like me and others with that low credibility talking about an already foreign, not so heard of, not on the billboards type of strategy. And now we've got a couple of banks, a couple of institutions that are fully supporting the strategy itself and providing product, a product and a service to complement this particular strategy that on my channel we call it Velocity Banking. So all in one loan is the product, CMG Financial is the company institution and the all in one loan product is provided by certain banks. One in particular, North Point, which is one, one bank in particular that I know quite a few of my clients have went with out of out of California area. I want to say a few in a couple in New Orleans even I want to say I have one in Florida, definitely up north. Like the products available pretty much all across the United states. Nationwide.

Exactly. 100%. Yeah. I mean kind of to a little topic you were just discussing a second ago. You know, people were saying, oh, this far out concept, this velocity banking, I.

Mean.

It'S not like we're pulling something out of thin air. You're truly just doing a math problem and we're not, it's not magic. I mean that used to be, you know what we would say it's not magic, it's just math. So if a debt's only costing you so much dollars a month and we're able to reduce that by 50, 75%, you're saving more money, you're effectively Applying more in principle through this velocity banking concept than you would in your current trajectory. And you know, there's so many ways to make that determination by just looking at the math. Now, kind of to touch base on your most recent item. Yes, there are a couple banking institutions that we partner with, Northpoint being one of them. Another one that we are partnered with is Merchants bank of Indiana. Essentially both major, major institutions, you know, fdic, the whole nine yards. I mean, at the end of the day, whomever you bank with now is likely the user interface is all you're really noticing. Oh, it's easy for me to pay my credit card. Oh, I can direct deposit this and that. It's not really providing you any other benefit. I mean, you're maybe if you have your money sitting in a money market, great. Or maybe you're in four, four and a half, 5%. Obviously there's so much in the way of money market accounts. If it's just sitting in your checking and savings account, you're effectively earning $0. A lot of people have their money sitting in a checking account or they go, oh, it's so great. It's in a money market, it's earning 5%. Yeah, okay, well there's some other expenses associated with that. You know, comparatively, would you rather be, you know, it's like this, the saying a penny saved is a penny earned. And I say that all the time when I talk to clients is would you rather earn five, which again, you're earning money on it, so you're going to pay taxes on that. Or would you rather save seven or eight and actually expedite your mortgage payoff and save thousands and thousands of dollars in interest? And you know, more often than not people go, well, you know, I have such a low interest rate. Yeah, but low interest rate doesn't mean low interest cost. So if we take the next 10, 20, 15 years of your life, however long it takes for this individual to pay off their home, what is the total expenses you're going to spend during that time in the fixed expense world? Obviously, you know, vacations are going to be come and go, but you have your mortgage interest expense. How can we reduce that and have that money that would have been paid to the bank go to you to help them pay off other debts, build an investment portfolio or obviously build your retirement?

Yeah.

And to even simplify that even further for the average American out there, that's saving money in a savings account while operating with a 30 year full amortized mortgage, if we're talking on a month to month basis, you saving $500 a month into a savings account, high Yield savings, earning 5%. So you're going to earn 5% on $500 over the course of 12 months times 12.

Right.

So 500 times 12 at 5%. If it stays at 5%, mind you, there's no guarantee that that will stay at that amount. Let's say it did. So that money will grow month by month and there's going to be taxes associated with that. Versus what if you had the ability to do the same exact thing but simply redirect where you were saving those $500 and for the person that again, in this example here, this is a person, average American, that has a mortgage, has a payment and they're trying to save $500 and they're paying off debt. So we're putting $500 to the side. It's going to earn some interest, but we're going to pay taxes on that. So you're going to net a percentage of the 5% on what you earned.

Right.

When you ultimately pay taxes on it versus taking those same $500. What if you can park it in your home which pays down the principal balance by $500 per month additional to your mortgage payment, you're saving one whole dollar tax free, however many dollars that is off of the mortgage that. So that's interest costs you will never see again and that's tax free savings.

Exactly.

And what if you had the same liquidity that that savings account was providing you? Why do we save money? We save money for a future unknown expense, typically.

Exactly.

Whether that be an emergency and unexpected expense or we're saving for an intended purchase, an intended expense at a later point in time. Well, what if you could do the same thing in your home? So you're not only paying down your home, you're saving money. And the value of your home continues to increase because it's a real asset. Your home is a real, it's a real thing, it's tangible, it's an asset, it grows in value over time regardless of how much is owed on it.

Right.

So very, very interesting there. So that's like, yeah, what would you rather do? Now it's just a matter of, well, how do I put myself in a position to experience that? And so for today, what I want to do is dive into what the all in loan, what the all in one loan product is. Let's break down the components of it and let's start with the terms.

Right, right.

How did you know? Give us that summary. There And I'm gonna put everything on the whiteboard for you all to take notes. And we're also gonna provide resources as well. There's a link already in the chat going where you can jump on a phone call with Harrison and his team to discuss this product, see if it works for you according to your personal finance. So again, it's running a math problem that we're trying to figure out. That's all we're doing.

Right. So go ahead.

Yeah. So right now the all in one has, it's a variable interest rate. It is an interest only product. So at the end of the day it is going to be based off of something called the one year CMT. And today that interest rate on the CMT is 4.78. Now that interest rate does fluctuate. And to be more specifically, that interest rate is actually based off of last month's ending interest rate. So as we move forward into the following months, the beginning of next month's interest rate is going to be based off of the end of this month and so on. We're actually seeing that interest rate about 20 to 30 basis points lower coming into this upcoming month. So we're slowly seeing that arc downwards. He said 4.75, 4.78 is the index, but that is not the fully amortized rate. Correct, it's just the index. And so the other portion of the interest rate is going to be your margin. And you can choose between a margin of two and a half all the way down to four percent in increments of a quarter. So two and a half, 275, 3, all the way down to 4.

Got it. Okay.

Each one of those, that's total. That's what gives you total rate depending on where you from, as low as 2.5 or as high as 4.

Okay.

Yeah. So you would, if let's say you chose the two and a half margin, you would take two and a half plus four, seven, eight and that would be your interest rate.

Got it.

Each one of those margins and it looks like someone had a question about what is the cost associated with this?

And we'll get there.

Yep. Each one of those margins have a cost associated with it. Obviously, the lower the margin, the more expensive the cost. But over time you'll likely in most people's scenarios spend less in interest because it's based off of a lower number. And when rates come down, you're already taking advantage of that lower rate. So it actually feels a little more powering for the individual. There are some strategies to picking A high margin and a low margin. But that's essentially the breakdown of the interest rate.

Correct, Got it. So that's the breakdown of the interest rate. It's an interest only product. And so now looking at the all in one. Why do they call it that? And let's break down the components of the product. Now that we know it's interestoni and now that we understand how the rate comes to be. It's a variable. Let me put that as well. It's an interest only product.

Variable.

So the rate will change month to month.

Exactly.

Or can has the ability to change. You know, sometimes it might stay the same.

Exactly.

If there was no change.

Right? Yeah. Yeah. Okay.

So the all in one terminology really is trying to say, hey, we're taking your checking savings and we're combining it with your mortgage account. We're creating kind of all in one encompassing location for cash deposits, checks from grandma, bonuses, savings, the whole nine yards. And we're pairing it with your mortgage. Most people's largest debt when they own a home is usually their home. And so by combining the checking savings, and again I'm kind of using checking savings as just one entity itself. But in reality as an individual earns their money, it's automatically being deposited against their mortgage balance, which is where you see the reduced interest only payment calculation being made. And obviously that's where you really get into the kind of the infinite banking, pay down debt with debt process.

Yeah.

So checking account. So when I get this all in one loan product, I'm going to be able to go on the computer or on my phone, log in, I'm going to see a checking account and I'm also going to see the, the mortgage which, which will tell me how much I owe at any given time. And within that mortgage is this line of credit function.

Right.

Have that right so far.

Yep. So you know physically when you log in, you're going to see your checking account. Your checking account more often than not is going to show a balance of zero. Don't be worried about seeing a balance of zero. It means that the all in one's working. As you earn your money, it goes into the checking account 11:59 every night it sweeps from your checking into your mortgage balance. So if you owe 300,000 in your mortgage and you had a $10,000 deposit, your balance of your checking will go from 10,000 to 0 and your mortgage balance will go from 300,000 to 290. Let's just say that you only had a $300,000 line of credit. Your line of credit now opened up from $0 in access to a $10,000 in access. You have access to every single dollar you just deposited in there.

Got it.

Awesome. So as it relates to the all in one loan product, the terms, so far, we've got everything covered on this side. Okay, so now how do we qualify for this particular product? What are some of the most important things that my audience needs to know or needs to prepare themselves as it relates to their own finances, their credit score, to position themselves correctly and efficiently for this type of product?

Yeah. I'm going to kind of give you a breakdown of two paths. You have primary residence and non primary residence investment property.

Got it.

So we can get this product on our primary home. That's what it's available for. And an investment property.

And second home, obviously. But primary and second homes are essentially going to be treated similar, but there are some many nuances with it.

Got it.

The reason why I bring up kind of the two separations is that for primary residence and, you know, to a degree, obviously a second home, we want to see credit scores at 700, 700 or above, whereas an investment property, you're going to be seeing it at 720 and above. That's kind of one of the major distinctions between those two.

Okay. So it's just a. Okay, credit score difference. So for the primary, we've got 700 or higher.

Yes, sir.

And for the investment property, 720 or higher.

Exactly. Now, the primary allows for 10% down. There is a mortgage insurance component.

Okay.

Until you get to 20%.

Got it.

Very similar to your traditional FHA mortgage.

Yeah.

Conventional. Yeah. I mean, FHA has mortgage insurance kind of regardless. But conventional is going to have mortgage insurance fall off at that 20% down.

Right.

So here's, here's something interesting. I don't know if I'm wrong for saying this. When it comes to your traditional FHA mortgage that comes with private mortgage insurance.

Right.

Even when you get to 20%, it doesn't necessarily just fall off. You yourself have to make the phone call and request, and it might take some time and then it's eventually gone, right?

Yeah, I guess. Yeah. So FHA is a little more tricky in the mortgage insurance world. But in a conventional loan, essentially at 80% loan to value, it would be based off of the original value of the property when you did your loan. Now you could potentially request for the servicer to order an appraiser and have it go out there on the cost of the individual. But if you're at 80% from your original purchase price, then yes, you can request it'll automatically fall off at 78% from your original purchase price. But most people aren't going to be going through that, you know, eight some odd years until it falls off. Time frame.

Yeah, yeah, yeah. So, so with all in one, is there that automatic, you know, great question.

It's actually a one time cost at closing mortgage insurance, not a monthly recurring cost. So it's just one upfront mortgage insurance premium for one time for the first year or for just at closing. Here's your cost for prepaying the mortgage insurance cost. Just a one time.

One time.

Gotcha.

So 10% down and we have a one time.

Cost and that varies based off of credit score like almost every other loan program does as well. And we can kind of dive into that here shortly.

Yeah. So one time cost of mortgage insurance upfront, so it's paid up front or is it paid by us, the buyer or the person has refinancing or is it put into the loan itself?

So also great question, as the buyer, you would pay it up front from your individual pocket. Now in the form of a refinance, it could potentially be wrapped into the product, just depending on how much available equity they have.

Got it, Got it. Yeah. Okay, very cool.

That's for primary residences, 10% down. For second homes it's 20% down. And for an investment property it's 25.

Second home, 20%. So that would mean no mortgage insurance on the second. Same with 25% down on the investment.

No more.

Correct.

Okay.

Like that, 25% down. Okay, interesting. Now give us an example here. Let's say I have a property that is worth 500k. I got a $300,000 mortgage on it. If I refinance. Well, no, let's do one where all I have is roughly, you know, close to that 10% available.

450.

Yeah, yeah. So 500k, I owe 450 or say slightly less to refinance into AN all in one mortgage insurance would be required until I reach the 20% guide.

Well, I mean, yeah, at closing you'd pay your mortgage insurance and you would never need to pay it again.

Right.

And so how is that mortgage insurance fee calculated? Is it based off of the amount I'm refinancing or the value of the property?

Great question. So there are a couple components are going to be based off that. Obviously it's going to be based off of the loan amount and we're going to base it off their credit score. And what their final loan to value is going to be. So there's a matrix that we have that depending on if Your score is 720 and above. And one thing to note, that if you are between 80 to 90%, you do need a 720 credit score. That is the only time that we're going to need to see that on a primary residence.

Got it. If you have only 10% correct available equity. So that's required.

Got it. All right, correct.

So if you take 500,000 and you multiply it by 90%, essentially you're going to be at a $450,000 loan amount. And depending on what that individual's credit score is, if it's kind of on that higher tiered end, then their one time mortgage insurance cost is going to be slightly higher than a half a percent one time fee of 450. 4 50. And that's.

Pardon me, that'd be like for 4,500.

Bucks, roughly a half a percent of 450 would be like 2250.

Yeah, my bad.

Half.

Half of that. So y. Yeah, yeah. So 2250. If we were comparing that to someone getting a regular mortgage, paying a monthly mortgage insurance payment in just one year, it'd be way more than that number.

Yeah, I mean it's possible, it's certainly possible that it could be more than that. But I mean at a 10% down, it's possible. It'd be pretty, pretty dang close. I mean that's the hard part that sometimes people get lost in when thinking about this product is what is this looking at physically right now? But what does it do over the life of the loan compared to what I may already be in that person and that loan may be in a six and a quarter percent interest rate.

Great.

They're going to spend 100% of what they borrow in interest. A little more actually. And in just the first five years, they're going to spend something like 27 total percent. So in the first five years of that loan, they're going to spend about $121,000 in interest. If we're able to have that person pay their home off in five to eight years and they only spend $150,000 in interest now.

Great.

More than in the first five years? Much less than in the life of the loan. What is an extra $2,200? Okay, great. I was going to spend 450 grand. I'm now going to spend 165,000.

Great.

Like I would pay $2,000 to save 140, $240,000 every, you know, over that time frame.

Got it.

And there's more benefits we're not discussing in terms of being in that liquid position for the unexpected. If my goal is to pay my home off and say five to eight years, right. Let's just say that's, you know, I know there's disagreements on whether you should or whether you shouldn't pay off your home sooner. What's nice with the all in one is let's say you weren't necessarily bought on paying off your home faster. You could be doing it automatically, then pulling the money out to say, do another project. So it's like even if you didn't want to pay off your home fast, it's going to get paid off faster just because of how you've unlocked the equity in that, in that home while making your investments or making other moves with the money that's in there. So instead of having your income come into a checking account and service a mortgage payment and then your cash flow is going to investments, right? That's the camp that says don't pay your mortgage off because it's at this low interest rate, we can go earn a higher rate of return over here with your cash flow. What we're discussing here is the opportunity of being able to do both. Let's say you don't desire to pay off your home faster, but by simply getting the all in one, you replaced the mortgage, the mortgage obligation, the payment itself, you servicing the payment has now been removed because your income is automatically going into the product. So it's satisfying the payment each and every month before it's even due. So you're not even really thinking about having a payment because it's automatically getting solved by the function of the product itself. And then because you're not intending to necessarily pay down the home quote unquote faster, you take your same cash flow, it got parked in there, you save some money and interest, you are paying down your home faster whether you like it or not. It's so it's going down faster and you're remaining liquid to take those funds out and go buy that other investment property that you wanted to buy for cash flow deployment. And then when that cash flows, guess where you can park it? Right in the HELOC until that money's ready to be deployed.

Right.

So you're getting the best of both worlds in that example there. So that's just another benefit. But we're still, you know, just focusing here on the terms, how to qualify. Is there Anything else we've missed so far on how to qualify for this particular product? We talked about primary residence, second homes or investment properties. Is there a limitation on investment properties, like how many units?

Everything's one to four units.

One to four.

Got it. Yep.

So two of the major components on qualification is going to be your debt to income ratio and the amount of reserves outside of the transaction you're going to need to have.

Got it.

So DTI, what do we like to see?

If your DTI is between 43 and 40%, we would like to see 15% of your line of credit in reserves.

So you're, you're okay. So if I have a DTI between 40 and 43% after getting the all in one, you as part of being.

Approved to get the all in.

Okay, okay, okay, got it.

Okay, understood.

That would be between those two numbers is 15% in reserve. So let's just simple math. $500,000 value, $400,000 line of credit. You would need 15% of the $400,000 line of credit regardless of what you owe on the home, as long as you're below 400,000. So you would need $60,000 in checking, savings, stocks, bonds, 401k, some sort of liquid asset that you have access to.

Also you consider a 401k to be liquid because you could borrow from it.

Yes. Now there are some nuances with some 401ks I would assume.

Yeah, yeah, yeah.

If you've taken a loan against it, you can't take a second alone. I can't use those as reserves and that's kind of come up quite often. But that reserve requirement decreases. When your debt to income ratio goes below 40% it actually only decreases to 10 total percent. So it does have a massive change when your debt to income ratio is more attractive.

Got it.

So we can pay between 10 to 15% in reserves based on. Based on the line of credit amount.

And your debt to income and your dti. Yes, got it.

All right, what else?

That is one of the major components, kind of one of the other ones that a lot of people don't really that it's not a requirement to qualify, but it's. We're not going to let someone come into this product because they meet all that criteria. We also need to make sure that that individual is showing that they can save money, which we like to see them save. 15 or more depending on your interest rate you're being offered or the interest rate you're already in every single month. That's kind of why we like to see the reserves. Hey, can you show us that you've been able to save money? Yes. Great. Now we understand that this product is going to be a valid product for you.

Got it.

But just as much as people want to get into this product, we are simultaneously saying, okay, this product isn't probably the best product for you right now. It may be, but here's some certain things that you're going needed to do and we'll guide them and we'll direct them down the path to say it's not for you right now, but here's how you can get into it. Yeah, there's a lot of.

I think that's very healthy.

Yeah, there's a lot of times that people say, oh, I have all this debt, I need to pay it off before I get into the all in one. Well, what's your scenario? Could we pay it off as part of the process? Do it all at once and let's see what that looks like and we'll run the numbers for them as well.

Okay, very cool. So not just what's on paper, we're also looking at the character and behavior of the person, of the individual applying.

Not, not the, not the character by any means. Okay. More so along the lines their behavior. Yeah. I mean, do they understand the product? Are these, these the kind of people, like there's people out there that the second they have an extra dollar in their account, that dollar is being spent on something probably not the right product for you. I'd never want you to get into this product. Because we want. That's why the qualifications are so specific on this loan. Yeah, it's because we only want the people that are going to be overly.

Qualified for this product, which again, going back to the credibility and reputation of this particular company. It's not like you're writing this to subpar lenders.

Correct.

Like we're looking for qualified folks who have solid income, solid savings, solid reserves. You have a behavior of saving money according to the amount of reserves you've been able to build up 10 to 15% based off of the line of credit amount. So if you're trying to get a, you know, you got a million dollar home, you're that person requires a bigger savings.

Right.

In reserves as opposed to someone just getting a 3, $400,000 all in one.

Right.

Is there a range, minimum and max on the amount of an all in one loan?

Honestly, the answer is no, there isn't. I mean, there are plenty of times where I've talked to people that are they own a home that's in the middle of nowhere and a state that you didn't even realize was still a state or a city that you didn't even realize was actually a city in the country. And it's a hundred thousand dollar property and it works for that person's scenario. And again, we run the math. Perfect. Move forward with it. Now obviously, as you start to get into that higher end range, 700,750 million purchase price, loan amount, individual, you likely see that they have the additional savings. You likely see that they have the requisites to be able to qualify or exceed and excel with this program.

Got it.

Is there any incentive for having a all in one loan in terms of the margin or if there's a discount at all provided for someone that has a million 1.5 million or higher dollar home, or is everyone kind of equal in that?

I mean, at the end of the day there is no actually it's all based off of these loan level pricing adjustments. What's your loan to value? What's your credit score? What's your loan amount? There's all these different spreadsheets and charts. Okay, this is where you're at. Here's the cost associated with it. You know, for the most part, the more you're lending, typically the more expensive it ends up getting because there's quote unquote, more risk involved with that. But that's where again we have a conversation with the individual. And that's kind of all it is on what it takes to qualify. Everything else now is just going to be what are the costs associated with this product? If everything's good with understanding the product, great then. Now let's talk about what does it cost to get into this product?

Okay, so there was one more thing I think we forgot as it relates to the terms and this is common in the space we're talking about with, with HELOCs or all in ones or first lien. HELOCs is the interest only period.

Right, great.

What is the draw period on the all in one loan product?

You're right, my apologies for that. So you actually have access to drawing funds throughout the life of the loan. But the way that it works is different in 10 years when you're 10 years into the loan. So again, let's say that this person has a $500,000 mortgage or, sorry, $500,000 valued home and they are at 80% loan to value. They're at a $400,000 line of credit. They have access to the difference between $400,000 and what they owe whenever, whatever point of time that they're in, in the 11th year, after 10 years, their line of credit decreases by a fraction of 1, 240th. And the reason why we got to that number is for the first 10 years or the first 120 months, you have access to the full line of credit. For the remaining 20 years, it's a 30 year product. You have access to a slight and gradual decrease in your available line of credit over the 240 months that are left. So if I take 400,000 or whatever my line of credit is and I divide it by 240, that is how much my line of credit will decrease from $400,000 on a monthly basis, which in this instance would be about sixteen hundred and sixty dollars.

Got it.

Okay, so percent of having access to.

Is there a question to that? Is that like a point something percent per month that it's decreasing by? Is there a way to.

It's no, just take your line of credit and divide by 240 and that's what it'll slowly decrease over that over the rest of the 240 months.

So I could say after 10 years the line of credit reduces by 1, 240th. Yeah, got it. Okay, that is very, very helpful. And can the individual simply restart the all in one?

Yeah, they certainly could.

After 10 years, like what I want to, you know, yeah. 10 years from now, my property doubled in value, let's say.

Right.

And they want to unlock that new equity to maybe go do some, some work with it. So the first five to seven years they paid off all their debt, so now they're debt free. I have a client right now, they had the all in one loan product that they acquired it back in 2022 or 2021. It's completely paid off, it's at zero. And in fact it's like a couple thousand owed on it, but it's basically zeroed out. And so their property, I'm sure has increased over the years. They're still in that first 10 year phase. But when they get to 10 years and their property doubles, you're saying we could go ahead and just renew that for them. That's.

Yeah, it would be the full blown refinance process. There are some hurdles when the property is free and clear. But if they're going to be going, hey, we're going to refinance, we're going to buy a new property, we're going to maybe buy a new vehicle, great, let's just do that. Keep it small. All of the costs associated with the all in one are going to be based off of what you are withdrawing at close, not what your line of credit is going to be.

Got it.

So if you have a million dollar home and you owe 100 grand, all your fees are based off 100 grand. So your cost of your interest rate is based off 100 grand. Your line of credit is all going to be left for you to have access to once the loan closes.

Okay, very, that's, that ends up reducing the cost. Because if my cost is based on line of credit, you know, it's almost not worth it if someone said I don't know if I should even let me just stick with my 10 year and let it, you know, decrease over time if I'm not even planning on using more than 500K. Okay. So that, you know, that's again case by case. Okay. So that's all the terms, these are the main points of how to qualify. Let's get into the nitty gritty part on the fees, right? The fees. This is what everyone concerns themselves with. And I think it's super important that when we're looking at the fees of the product, right? And there's you know, competitors out there as different banks doing different things. At the end of the day, no matter how much this is, you know what, I shouldn't say that, I shouldn't say that. I'm gonna take that back. When you're looking at the fees, how I've kind of processed this for myself, right. And, and I myself do have a, a first lien heloc, right, that I acquired last year. And when I looked at the amount I paid in fees versus all the other benefits I get with having this product, it's as if the, the fees totally offset itself. Not upfront, but over time I recapture that if I would have bought and went the conventional route, right, because my particular strategy was I put 10% down. I had a total of 20% and I'm pretty sure we can, there's, you know, strategy mentioned earlier with the all in one. Whether, whether you do 10 down, have the mortgage insurance, pay that little fee and then dump your other 10 in there. You've, you've now freed up the line. So you know, I definitely want to address that real quick. So there's you know, a couple different options here as it relates to how you put money down on a home. When you put 10%, 20% down on a conventional mortgage, you lose access to all of that 10, 20%, right? That you, you cannot re access that unless you took out a second loan on the property versus in an all in one.

Right.

You could put 10% down, but let's say you had 20. You put 10 down, you pay the little mortgage, insurance fee and all the other fees that we're gonna dive into. And then once the line of credit is active, dump your other 10% in there. Even though you might be at a higher rate, you now have liquid access to that other 10.

Yeah.

I mean, the rate wouldn't change realistically.

Right.

And the line of credit is bigger. The line of credit bigger now.

Exactly.

Because when you do 500,000 times 20%, your line of credit is based off of that 80% mark versus a 90% line of credit. And then put 10% down, you now have an additional reserve that you automatically built in to the line.

Yeah, yeah, yeah, yeah.

Real cool stuff. All right, so let's do, let's do fees. Let's break this down in detail. And I know there's nuances, but you can give us like the, the general.

Like so you have the, the first and foremost is going to be the discount points. If you're buying your rate down, it's more expensive. If you're picking the highest margin option, it's cheaper. So just cost for the margin.

Discount fees or margin.

Okay.

That's buying the rate down. And again, this is a, a way of thinking that is, is going to require education because oftentimes we're always so focused on the rate, which it does matter. It has some importance to it. But when you start getting into, well, what is the value of me keeping more of my capital even though I'm at a higher interest rate? So at 8.78%.

Right.

The margin saying, going with the highest. So 4% would be the highest, which is also the cheapest cost. And then say 4.78. So now you're at a total of 8.78 as opposed to 8 point, let's see, 4 minus 2.5. So minus a point and a half off of that. So 7.28. So you have an option either I give myself a 7.28 right now on my all in one one. But I have to pay these additional fees to get there or go with the 8.78. Lesser fees, lesser costs up front. That money that you were already gonna pay. Stick it in the all in one.

Exactly. You're saving more money and you're paying your home off faster. Exactly. I mean, and that's the part where, which makes sense for Me, it's the philosophy of the individual. What are you trying to accomplish? Do you want to leverage yourself or do you want to eliminate debt? Sometimes that flip flops between days, weeks, months, decades. Right. If the person comes to me and says, hey, I got a bunch of equity in my home, I'm 35 years old and I'm trying to buy rentals, he's trying to leverage himself. That person is now not 35, but 58 years old. Okay. Maybe they owe some money on their home, they're trying to pay it off before their wife or they retire.

Great.

Now we're focusing on something else. In argument's sake, you could say it probably makes sense to, depending on your scenario, to buy the margin down. But we, we just run a math problem. We look at what your cost is, we look at how much it ends up saving you. Based off your scenario, does it make sense to save 30 grand extra if it only cost you 9 grand? Yes, I would say yes. That's a big enough gap.

Yeah. And it's. And it's in. You said 2.5 increments. And so is there a rough estimate on how much every 0.25 would cost that individual? You have to do that six times to get to two and a half.

Yeah. So it's not perfect every way, but you know, 4% depending on obviously the credit. There's this just base pricing, people's credit scores and multimillion dollar homes. Change this a little bit.

Let's face, let's do the, let's do a 700 credit score, 500k home. And I'm deciding with Harrison between 8.78 or if I want to buy it down 1.5% by 2.5.

Right.

So it's six, six times.

Yeah.

So roughly what would that.

So I mean, the, and I think that, that, that's kind of the hard part is I think that the, the best way to go about it really is to say depending on the lowest margin, you could be spending between a 0.25 in cost all the way up. Sorry, my apologies. The, the Highest margin, the 4% margin could be a 0.25% in cost. So a quarter of a cost, the two and a half margin could be 2.75 in cost. It's between a point five and.

Yeah, okay, so, so five, 2.75 on that margin of 2.5%. So you're going to pay 2.75% on what the loan amount.

The. Yeah, whatever your initial draw is on the loan. So if you owe 500,000 on a million dollar home. It's going to be based off 500,000.

Got it clear?

Not off the $800,000 line of credit. Now when you start getting into credit scores, you know, again there's the tiered adjustment. So in the higher eight hundreds you're going to have little to no pricing adjustments and potentially even rebates. And the closer you get to 700, you're going to have increased costs. So at a 700 credit score on, you know, an 80% loan to value, you could see an increased cost for that individual because they're kind of right there on the threshold of being the right candidate versus not being the right candidate. And as you get further away from that line, you're going to be put into a much better position.

So I'm calculating like 13 grand, almost 14 grand. Is that right on the, so on the 500k, I times it by 2.75.

13 750. That's just for the margin if you bought your rate down.

Yes, guys, like I don't know how. Like that 13, 750 for me is more valuable in a higher rate line of credit. And we're only talking a point and a half difference right now. Yeah, if it was a four point difference, maybe it gets a little interesting there to run some math. But for me to save that 13, 750 in fee and me just say I'm gonna have that 13, 750 in reserve in the line of credit and just that's gonna help me accelerate the line down faster. For me that's more valuable. So here's even.

Sorry, my apologies. There's actually a really unique math problem you can run is let's compare it one to the other. So the difference in cost from a 4% margin versus a 2 1/2% margin is 2.5 in cost. So that individual is going to spend 12,500 to get the lowest margin. They're going to spend that much more as opposed to getting the, the highest margin. But you're saving one and a half every single year. So it's going to cost you 12,500 to get the lowest margin. But on a $500,000 balance, it's going to cost, it's going to save you $7,500 in interest each year. So you're going to break even in about 1.6 years. So mathematically you will be in the black as soon as you finish the second year. As long as nothing else changes or if you continue to pay your balance down, then obviously it mathematically makes more sense for you.

Okay, got it. So we got, we got fees for the margin between 2.75%.

Right.

I could write that. And what is the cost for the four again?

0.25.

0.25. Got it.

So it's.

Did I write it correctly like that? 2.5% is the difference.

The, the cost for 2.75 is 2 point. Sorry. Oh, yes. Okay. Yes, I see what you're saying. That's the cost, correct? Yep, you're right.

Got it. Okay.

So that means on a $500,000 line of credit, at 4% margin, CMT, 4.78. I'm at an 8.78 rate. I paid 0.25% on 500K.

Exactly.

I see. And so that.

Is.

12 $50. That is a massive savings up front.

Right.

And if we incorporate the strategy of velocity banking now, because there's. Here's the other thing. There's a lot of people, I shouldn't say a lot, but there's a good percentage amount of people who acquire the all in one loan production and still not necessarily know how to do the strategy of where. Where I come in.

Right.

And how I teach how you can strategically use this thing. And yes, there's some automation to it, but there's still the nuances that people aren't fully aware of of how they could be paying this down even faster. And so when you combine that with the product, because now we're just comparing product to product, 2.75 costs versus 2.5 costs versus the payment over a period of time, 1.6 years, there's a break even. Okay, well, what if we now incorporate the strategy, what I'm teaching? Dumping all your income in. We're funneling savings through here. We're using credit cards and cash back rewards and points and miles and da da, da, and the whole 0% cards and balance transferring and all these different things, 0.25 starts to look really attractive because again, it's less capital up front and I get to recapture all that here right now. So, yeah, a lot, A lot of cool things that are just going in my head here. So 0.25 to 2.7. That's the margin. What are some other fees?

Yep. You have the CMG fees. Our fees.

Right.

That is the underwriting fee.

Right?

That's the underwriting fee.

Right.

Processing, underwriting. Correct. Setup, admin, all those things. Yeah, about $1,500. Then you have appraisal. You know, the cheapest appraisal I've Seen in recent months has been about 500. $500 to you know, in certain areas where we needed to maybe order two appraisals, maybe up to twelve hundred dollars. Where values are, you know, multi million dollar properties really just depends on where the property is. That's kind of a very broad range. You know, I'd easily say 750 bucks is kind of you is right there dead in the middle.

Got it.

Title fees again all it's going to be based off of what that loan amount ends up being. Could be 2200 to 3500. That's the part where it really is just going to depend on where that property is located.

Yeah, 2200 to. To. What did you say about it?

3, 500. 3500.

Yeah.

And then you've got title fees is also with the state.

Right.

Like there's also these other state fees.

That's all. Yep. That's going to be all dialed in with the title company.

Okay, got it.

And then. And then lastly, if you're buying a home, you're going to need one year's worth of homeowners insurance. And if you're refinancing, which we've seen a lot of people right now get out of their low, you know, their three, two and a half, three and a quarter interest rate loans because they bought it when the value was here, over the last few years it's gone up to here. They don't owe all too much and they are able to just save, save, save and really leverage themselves. So most of the transactions we've seen recently actually have been people refinancing into this product, which is awesome because at the end of the day they needed to buy the home. Maybe they bought it with 3% down and the values have gone up drastically and now they're at an 80% loan to value. They've been able to take advantage of their equity growth while also saving money. Over here it's kind of been a powerhouse for them to kind of go down the path of savings and building equity without changing anything and contributing a boatload of their own money.

We're gonna have to spend more time on that. That's interesting. So are you saying the homeowner's insurance goes down?

No, no. What I'm saying is, I'm talking about. I'm just saying that's not the. If they're buying a home, they need to just pay that full year's worth of homeowners insurance. But if they're refinancing, they probably have Already made that payment on their homeowners insurance.

Oh, okay, okay, Got it.

I'm just talking about costs, but got it. But yeah, I mean that's been a lot of the strategies that we've helped people get into is it's not good for you. Now let's get you into a home. You're in an area that you can actually build equity and save money based off your scenario scores aren't in the greatest spot, X, Y and Z. You're able to essentially get into the property, take care of the things that you need to be, that need to be taken care of. And then maybe six, 12, 18 months down the road, that individual is able to get into this all in one and didn't have to come out of pocket with any more money. They only needed to go in with 10% on a conventional loan. 12, 18 months later, maybe they built up equity, refinanced, had the all in one and then really went after it.

Got it. So the homeowner's insurance, that's on the buy, correct? Not necessarily the refi.

No, but I mean it's. Yeah. Now you get into the specifics and nitty gritty. That's where each person's scenario is going to be different. I mean I could, I could argue with myself on a bunch of these different items already, but kind of just the generic individual gonna be pretty much pretty standard.

Okay, so margin fees, CMG's underwriting costs, this is something also very unique. You go with a mortgage lender, it's usually what, 1% of how much you're applying for. And that can be a much higher number, you know.

Correct. Yeah, they call them origination fees.

Yeah, this is more of a flat number, flat fee, regardless of how big you're applying. So this becomes even more attractive for the person that has a much more valuable property.

Right.

A higher valuable Property is only 1500 bucks to underwrite, to, to unlock the equity in there. That's huge. And then you got appraisal. I know I spent, I think mine was like nine something, 900 something for appraisal. I'm in South Florida. I know in Florida there is a stamp fee or something on lines of credits. I don't know if it applies in other states, but that could be a couple grand additional. So it doesn't.

Yeah, I mean that's not state specific. I mean Texas has its own nuances, you know, Massachusetts has this. This is just kind of a generic breakdown. Yeah.

Right.

So in the generics, are we missing anything else here?

No, in the Generic fees. We're not missing anything. I mean there is no daily interest. You don't build an escrow account. I mean that's, that's all, that's all there is. In fact, in many instances, comparing apples to apples, it would, it's actually a cheaper than a conventional loan in terms of costs.

Agree wholeheartedly because I witnessed it myself. I evaluated, I said, oh yeah, I'm already, even though I was looking at, I want to say homes between 7 and 8% was what I was being quoted at different mortgage companies. HELOCs I was looking at were at 9 and a half, 9.3. Nothing really above under, under 8. Now I did have a little intro rate to start but just from looking at the cost to close on my first link, heloc as opposed to a traditional mortgage out the gate, I'm already ahead, right? So I'm already ahead of the person that's trying to make extra payments even though they're at a lesser rate than me. And because I have liquidity when, when unexpected stuff happens, I don't have to think where to borrow from and how I'm going to pay that back. I've got this automated system here.

Right.

And so coming back to the terms, now that we've covered the general freeze, there might be some nuances in here, but that's the general. We covered how to qualify. Coming back to the terms. Another thing I forgot is the. You know what, I'll put it over here because it's more of a function more than it is a term. And this will get into the case use of this. So function, case use of the. All in one.

Right.

So this is a product that has automation in it.

Right.

You mentioned it earlier, you touched on it, but probably some people missed it. But basically when your income flows into the checking account that's being provided, that's attached to the line of credit at 11:59.

Yeah.

PM every night, your checking account will go to zero and it'll get automatically swept into the line of credit. That's every day.

Right.

And so what that does is essentially before the day is over, right. Let's say you're at an 8.78 rate.

Right.

Let's do some real math on that. I think that'd be super cool for people to kind of understand what I'm getting at here. So say you owe 400,000 on your line of credit and you're at a 8.78% interest rate and we're going to divide that by 365 so you're looking at $96.21 for that day. For that one day, you'll pay $96.21, but you won't get charged $96.21 until the due date itself. So.

Correct.

Yeah.

It's an additive, so.

Right.

Day one plus day two plus day three.

Correct.

But compounded.

Correct. So it's not, it doesn't get pulled out that day. So at 11:59, that money moves over and actually at midnight, your payment is now calculated off of your new balance. So if you owe 300 today and you made 10 grand, your balance goes down to 290. At 11:59, at midnight, your payment is calculated off of your balance. So it actually allows for you to take advantage physically on that day of your reduced balance that day.

Yeah.

So let's say using my same number, 400K minus, minus $10,000 deposit, now you retime that again by the 8.78 rate, divide by 365. Now you're at $93.

Correct. So you just saved $3 and, you know, $2 and.

Right.

And. And again, that's, that's just one day. How many more days is that? 10,000 staying in the line of credit. So that's $3, $6, $9, $12, $15. 21.

Right.

It just keeps going up and up and up. And, and that's essentially you're compounding the savings per day for sure.

Correct.

You're.

You're offsetting that, that cost. So you're not ever really paying 8.78%. And when you really look at 8.78% divided by 12, your interest rate is actually 0.73% per month on what you owe. So then the goal is becoming. Okay, how do we reduce 0.73 to 0.5 to 0.3? And so if you're able to reduce 0.73, cut that in in half.

Right.

So say you bring it down to 0.36 times 12. So you took a 8.78 and brought it down to 4.39 in the first year compared to your average mortgage rate today, which is in the 6. 7% range.

Right.

Even high, say high fives, high six, high sevens.

Right. Yeah.

And again, these are people who already locked in their mortgages in 2023.

Right.

In early 2024, where we saw rates go as high as like seven, seven and a half, even upwards of eight. I'm over here. I'm. We're creating insane amount of speed and velocity on a month to Month basis. So even though my rate is higher, my cost is different. This is where a lot of people get, get caught up, right? They get a difficult time seeing that. And so just showing you the math on the day to day deposits coming in and then when the expense, your expenses, your living expenses eventually come out. What I have noticed, having a first lien HELOC that has been to my advantage is when it comes to paying bills that are ached, right? Like it requires a checking and account number to pay the bill, right. I notice it takes two, three business days before it actually ever leaves my line of credit. So that's an additional two, three more days before the money actually came out of my line. That's even more dollars I'm saving per day, every single day.

Correct.

Right.

Like this blew my mind because I was like, that's another like value add. Where most people, the way they operate today is we make money. It lands in a checking account and you're, you're separating the money savings here, investing here, tithing there, giving here. And then money sits parked in the checking account waiting to pay an expense within the all in one. I never have to wait. I don't have to have money sitting outside of the checking account because by automation 1159, every single night, even if I left 500 bucks and I forgot about it by midnight, it's already in my line of credit. And if I have a bill four days from now, I don't have to worry about manually transferring the money back out of my line of credit to the checking account to pay the expense. It's going to automatically draw from the line and again it might take a day or two for that bill to actually hit. So I know when it comes to my car insurance, when it comes to when I pay my credit cards, right? My, my water bill, my sewer, like all electric, right. All of it. My FPL bill, like it takes multiple days for it to actually leave the account so it'll say pending. But I noticed how my line of credit still stays the same and then I've even like ran the math. I was like oh yeah, look, it only charged me that amount. That's really cool.

Well you can get even more tactical on it by actually paying those bills if you're able to on a credit card. Card, correct credit card, you can even pull it out, make sure you don't pay that credit card late so you don't accrue that interest. But actually am I able to share screen because I created kind of a, an even more in depth version of what you just wrote so people can really get a visualization.

Oh yeah, yeah, let's, let's do that. So sticking on the all in one loan, the function itself, just understand that it has automation. You're able to automate your paychecks. So those of you who are married, right, husband and wife, husband, wife, and maybe young adult in the house, Husband, wife and parents living with you that get Social Security checks, you guys could be combining all those incomes into one central location being your all in one loan product. Let's say in this example where you could have two, three, four different incomes going to one place, then everyone's bills being paid out of that account, right? Over, over time. That is, that's what I'm doing, right? So like in my own household, I've got myself, I make money, my fiance makes money, my mom makes money. Each of them are sending their paychecks into my line of credit. I myself sending money into the line of credit. Then we just agreed that, okay, for the bills that fiance has, when it comes to certain things, my bills and my mom's bills, let's just all have it come out of the heloc, right? Rather than having money sit in your checking account waiting for that bill to be paid, I could be saving 3, 4, 6, 8, $9 per day just by having money that's already going to leave our economy saving. So I'm technically reducing my cost of living and my savings rate is performing much higher than if I were to have that money in a high yield savings account earning 4 or 5% right now. Insane, right? Because I'm saving a whole dollar where it takes them. You're owning, you're earning 5% on $1. That's all you're getting. I'm getting a whole dollar in savings for every interest dollar I save. And that's tax free and it's liquid and available to use again for later future expense. Again, same stuff. So let me share the screen here.

So this is kind of what you were just doing, but I'm just having it broken down on a quote unquote monthly basis. So this person, let's just say they earn 7, $500. I'm going to put it on the second day just so we can see the difference in payment between the two. Yeah, so family earns it on the 1st and they earn 7, $500 on the 15th. Again, that's compounding. They go from 96.21 to 94.4 and then additionally they go down to 92.6. They're saving a boatload of money without paying any bills. This person's just saving $81 this month in interest. That's dinner with your wife, that's dinner with your fiance. That's, you know, taking a night off and going and enjoying yourself with your friends. Right. Now, if you paid your bills off, let's say this person right here pays $9,000 in credit card and all the other housing bills, they pay it on the 16th, earlier in the month. Their difference or what they're saving, this is the difference right here, is they're saving goes down pretty drastically. But if that same person was to wait to the end of the month to pay their credit card off and all of their other bills, then their savings is going to increase. It's really the time value of money. It's better to hold your money into your account as long as possible until you need to pay it off.

Yeah.

And you know what, we could even run, okay, how much money do I need to store in a high yield savings account to earn $74 in one month?

Month. Right.

Like when we look at that, like, understand, like, there's a huge value in terms of how we're saving money versus how a majority of other people are saving money.

Right.

And then again, taking a look at the escrow, there's no escrow. No escrow in the function of this product. So again, there's dollars that are waiting to be spent on an annual basis that, oh, my goodness, could be saving you hundreds of dollars just by having that annual expense sit in the all in one for 364 days until there's. Until the one day out of the year that that payment's due.

Yeah.

And here's a few other times, say $2 in savings, that's $728 in savings.

Yeah.

That's a boatload of money. More than you have in here.

Yeah. That's insane.

So two things that I did kind of gloss over earlier is that, that I think are going to be important is that there is a ceiling on this loan which is 6%. Your interest rate ceiling is 6% above where you start at.

Okay.

And there is a floor on the loan that is at 3.75. So if rates go to 375 or lower, your loans at 375.

Yeah.

Now, on a purchase transaction only, there is something called an initial draw adjustment. And I'm going to stop sharing my screen so you guys could see myself. So essentially these, this initial draw adjustment is go to Wells Fargo, go to Chase, go to whomever and you want to open up a bank account and they say, hey, give us 100 bucks, give us $5,000. Here's our initial opening balance requirement. The All In One has that same concept. It's just 1% of your loan amount at closing. So it is not a cost by any means. It is you taking money from your bank and making that your first deposit into the new bank. It goes from your left pocket, it gets put into your right pocket as part of the transaction.

Yeah.

To basically not be maxed out, out the gate on the line.

Because what happens if you got your documentation and you forgot to fill it and get it all set up and your payment comes out? Well, there's the least funds in there for that additional.

Got it.

Yeah, I like that. Again, another kind of behavioral built in thing that we want to see that people are getting this product for two reasons. Either you're trying to unlock equity to use it or, or you're trying to unlock equity to accelerate other debts that you're trying to park in here. So we need space to do that.

Exactly.

And so when you on, on the buy of a property, when you initially buy it, your line of credit is maxed out.

Right.

So you're saying 1% needs to initially go in there in addition to our down payment.

Exactly.

Money that's going to go into the line and that's going to start the process of you automating your paychecks, bills, all that, all that flow in and out. Super, super important. So when it comes to just kind of wrapping up on the function and use of the all in one.

Right.

The automation part, the, the checking line of credit sweep function. By 11:59, all dollars go into the line.

Right.

And then there's say two primary uses. We can either use the all in one to pay off debt.

Yep. Right.

Or we're basically consolidating.

Right.

And then. Or to create income. So invest.

Right.

So basically unlocking the equity in your property, be able to acquire more properties. And because you have the ability to attach the strategy of velocity banking, dumping your income in, you're basically reducing your cost to borrow dramatically compared to if you were to get a second loan on your property at a fixed rate at a fixed payment.

Right.

And it costs way less to unlock that money when compared to other, you know, loan options or mortgages.

Right.

So that's, that's huge stuff here. What I want to do now take a look at some of the questions.

Yeah.

That a ton of engagement I've really Been liking it. So I'm going to start at the top, everyone. So you're still with us. We have 47 people in the house. So PBD says looking to get into all in one pretty soon. You both rocked it last webinar. Got so much clarity. Can't wait for this one.

Awesome.

Hopefully he's got a ton of value and just unlocked a bunch. Here is this is the all in One a heloc. So we can say yes, like it's a, it's a line of credit. They call it the all in One. That's sort of the brand.

Right?

It's the, the brand name product that gives you Kleenex. You will Marketplace.

Right.

I was looking into the Money Max account. I'm glad I'm getting a chance to get some insight on this. On this all in One first. So if you're not familiar, Harrison, there is a product out there in the marketplace called the Money Max Account. The company is United Financial Freedom and they basically sell a software that helps people get out of debt mathematically the fastest way possible.

Right.

And there's a component of you being able to put your all in one or your first lien HELOC product into the software and then the software tells you how to basically consolidate pay off your different debts. Now my argument, and I'm someone that actually sells the Money Max when it makes sense for folks, but I tell people like if you have an all in One loan product, you've at that point you've created the automation that the software would give you. So the only additional value that the software would be able to provide is maybe run some scenarios on true on opportunity costs, maybe hit milestones, maybe some additional accountability. But if you wanted to save the 3 to 5k that it would probably cost to get that product, you just have the automation with all in One and then having someone like a Harrison or his team the brand name product that gives you Kleenex in the marketplace. Right. I was looking into the Money Max account. I'm glad I'm getting a chance to get some insight on this. On this all in One first. So if you're not familiar, Harrison, there is a product out there in the marketplace called the Money Max account. The company is United Financial Freedom and they basically sell a software that helps people get out of debt mathematically the fastest way possible.

Right.

And there's a component of you being able to put your all in One or your first Lien Heloc product into the software and then the software tells you how to Basically consolidate, pay off your different debts. Now my argument, and I'm someone that actually sells the money max when it makes sense for folks. But I tell people like if you have an all in one loan product, you've at that point you've created the automation that the software would give you. So the only additional value that the software would be able to provide is, is maybe run some scenarios on true on opportunity costs, maybe hit milestones, maybe some additional accountability. But if you wanted to save the 3 to 5k that it would probably cost to get that product, you just have the automation with all in one and then having someone like a Harrison or his team provide that additional support, that's another value add that this institution is providing is that servicing the product and again working with someone like myself where you get that additional accountability and support. You may not need to buy the software if you have this kind of product. There are other products in the marketplace that are similar to the all in one. So just focusing in this video on the all in one loan product itself, you've got that automation. Automatic deposits, automatically debits, cash flow stays, interest is saved. Live your life intentionally, right? You're on your way to living a very rich, intentional life. So Tony says I got the all in one four years ago, refinanced my rental with it. Also eliminated $89,000 of debt. Use it to buy another rental. It allowed me to retire two years ago at age 58. Everyone should.

Probably do this.

I went through CMG Financial by the way. Awesome. Great. Yeah, yeah, that is super cool. This is the link guys for you to book a call with Harrison and his team, see if you qualify, go through the works, evaluate the costs. It really might make sense for a lot of folks especially, especially in this environment. So that was one. Another thing here is I would say that first lien helocs become even more attractive in a high interest rate environment. But it's not noticed versus in a very, very low interest rate environment. It becomes extremely attractive because people are already at a higher interest rate mortgage. So I would say between 2020 to like 2022, I had a ton of clients getting first lien HELOCs all in ones, right? Like it, like it was nothing. Like it was just, it made total sense because yeah, go back, say I had clients that had 4 and a half, 5 and a half 5% mortgage rates and when they saw the all in one, we have to go back but I think the all in one was as low as 4. 3.75.

I, I mean back during COVID it was 375 for, yeah, for a while.

It was extremely low and, and people had equity and people needed that equity. And I was showing them how they can not only use that equity but, but use it efficiently and effectively. And so it was very, very easy to have the conversation today. People locked in super low mortgages between 2020, 2022. So they have twos, they've got threes, they've got three fives, they got fours, right? So those people are very hesitant to get into a 8, 9, almost 9 and a half first lien HELOC. I totally agree with that. I get it. I said, you know, if you're already five, ten years into that mortgage, it probably won't make sense, right? We'd have to run the math. But it, it probably won't make sense to, to take that fixed payment and put it into a variable product unless you have a ton of equity and you're trying to do something with it like create income and cash flow. Totally different story. That's going to be a total win. So I think what's going to happen is if rates stay the way they are and they continue to stay the way they are, we're going to get this new batch of people that have these 6, 7, 8% mortgages that are only 1, 2, 3 years in and then when we start to see rates come down and the first lien helocs, all in one loans are the first, first to adjust the rate, that's the benefit. So the con is it adjusts, right? It can go up. The pro is it adjusts, it can go down quite fast, month to month. So we start seeing all in ones, start giving sixes out and fives and fours again and you have a 7, 7 and a half, 8% mortgage, they're going to be coming because they're always looking at rate. Whereas I would, I would make an argument that there's a lot of scenarios, there's a lot of instance, not 100% across the board. And even Harrison, you know, made that clear and it's not right for everyone. But there is a lot of case use here for getting into one of these products to not just eliminate debt, right, because that's just a portion of the time that we're eliminating debt. But this could also be a means of a capital tool for you to leverage like Tony did and retired himself two years ago. But I wonder how many years Tony thought it would take him to retire. So maybe he sped it up by five years, by three years, whatever the case may be. So that's huge, right? Boom. Please compare money Max account. Just did that. All right, awesome. Is origination charge on line of credit or initial draw amount? That's regarding the, the underwriting fee. And it's a flat fee, right?

Well, no, the origination. So the, the discount points for the margin. Oh, and it's on based off of the initial draw amount, so not of the line of credit. So boom, you got a hundred thousand dollar balance, million dollar home, $800,000 line of credit. Your cost is going to be based off the $100,000 you're pulling out.

That's sick.

Love it.

Because everything else is sitting in the bank at that point. But here's the cool thing. If you owe $100,000 and you refi and you get that $800,000 line of credit and you're okay waiting three, three or so weeks to get access to your banking institution.

Great.

Now you can pull that money out without any additional cost other than the interest cost associated with.

I'm betting there's an initial draw amount.

Right.

Required on something of that scale.

Right.

I mean, if they owe nothing, that's where we have to get a little creative. They can't owe nothing and refinance into nothing. But if they have some debts or they have the ability to, you know, hey, we're pulling cash out. We're going to go buy another property.

Great.

Let's pull it out. Let's get you taken care of.

I think I had a client do that. They had, they had paid off home, I believe, and they refinanced and they said, oh yeah, I had to do like a hundred and something to get it. And I didn't know that at the time, so. Okay, cool.

All right.

Okay. Ron, Ron Bork. I know that name.

Yep. He works with, he works over here at cmg.

Okay.

Yeah. Did you guys go way back? Does anyone have an interest only. Does anyone here have an interest only loan?

Right.

Those do exist with car loans and that's typically with credit unions.

There are, there are IO loans. I mean, the all in one is technically an IO loan, but the benefit is that any extra dollar you earn is actually going against your home. So it's IO on outstanding balance.

Ah, got it. Maximal software.

Right.

Let's run. All in one is much more. Yeah, there we go.

Okay.

Yeah, he's hyping you up. Can I get multiple all in one loans? Yes.

You can't have multiple AIOs.

Nice. North Point Services. But it is a CMG loan, right?

Correct.

Because you are the guys created it.

Recreated it, gave them access to having access to it. Because we are also partnering with the banking institution. But when you call in, we don't have access. We're not a bank. We don't have access to seeing your login and whatnot. So when you call in, you're calling the bank. There's specified people over there that the all in one teams over there so that they can answer your questions and they're as familiar with the product as you and I.

Why would someone need multiple all in one loans? Would, would origination charges not multiply? Sometimes I make an argument with, for and against. I would say a majority of the clients that I personally work with, I let them know, you know, once you have your main debt tool, let's not create distraction. You may not need to get a whole new another all in one. If we could borrow from here to buy out that other thing or at least just put the down payment on. Here's where would say a conventional traditional mortgage comes into play, especially with investments, is I've got the all in one and I can go ahead and extract a certain dollar amount just to put a down payment on because I'm only interested in cash flow, not necessarily paying it off and I can have a fixed payment for a fixed period of time. Then why would I, why would I expose myself to an entire interest only where interest could be essentially higher in that case, because I'm not splitting my income now, sending some there, sending some here, it creates inefficiency.

So it does make sense in some instances. So I actually personally have two all in ones. I have one on an investment and one on a primary. Yeah. And the way that I'm able to justify it is that I have my wife and I have eight different rental properties which we've been able to acquire by having this all in one in the first place. And essentially all of the rental properties and some of my investments get put into one all in one. All of my and my wife's income get put into this all in one. So essentially personal and business, correct? Yeah, I'm keeping them separate. So I'm allowing to keep it separate.

Yep, yep, yep.

I know there are some entrepreneurs listening that come combine their personal income and business income into the all in one. I think there is some nuance there. Definitely going to have to talk with an accountant on that. But I see what you're saying and that's a scenario where I would say yes, that's where I'd argue for it. Where it's like have that investment income go there, separate and do its thing. And then, and the value of that is instead of. Traditionally when I work with clients, they have their personal income, they have a rental and they have a checking account attached to the rental. That checking account is a business account which pays the mortgage. And then the cash flow from it sits in that account, does nothing. That cash flow could have been going into the property with, in the form of an all in one. And it's boom, boom, boom. It's bringing it down. It's bringing down the average daily cost of borrowing consistently over time. And you remain liquid in case you got to make repairs or anything like that. So I see what you.

Well, even cooler is depending on that level of cash flow, you could be renting that property out. Let's just say for conversation purposes, for 1500 bucks. And your interest only payment could be 1500 bucks. But if you have other sources of income coming into that account, paying that balance down, you are now opening up additional cash flow. That payment could work its way down to a thousand, 750, 500. And now you're building up that growth of cash flow on that property. And then great, over time and inflation, that payment goes higher for that individual. You could pull that money out, go buy a new property and just rinse and repeat. Once you have enough of them coming in, you can start thinking about, okay, this is bringing me a thousand dollars in every month. All my properties are covering themselves. I have three properties bringing in three grand. Well, that pays for my current mortgage or that pays for my groceries, that pays for childcare, that pays for gas and so on. And you can start thinking, what am I replacing expenses in my fixed life, my fixed expenses in my life and go through one at a time. And until you go, instead of saying, oh, I want $10,000, well, why, why don't we go through the things that you need first and then we can start working. That's the best way.

Like it. Which is better to go with North Point bank or cmg. I mean, I would assume cmg, you're the ones that are actually underwriting, you know, providing, going through the whole qualification process. The bank is just the bank that's servicing the product. But I'm calling CMG for all the support and the servicing.

Yeah, you'll call me and we'll be able to assist and we'll get you in contact with the banking side of things. I mean, we're the, you know, we're kind of the workforce behind providing that product to them. Now, obviously I can't speak on behalf of North Point or any of the other banking institutions we partner with, but, you know, at the end of the day, going with us is we're the ones that kind of created and founded this product, so we're going to be able to have that additional layers of insight.

Gotcha.

Yeah.

I'm loving the, the comments. We know who's really engaged this Mr. PBD. Well, let's see if we go directly because. Okay. Okay, Ron. And then we're going back and forth.

We actually.

Andre is. It's a win. Win.

Yeah, I love Andre.

Andre as well.

Yeah. In some instances, CMG may actually have some reduced guidelines around certain individuals, whereas perhaps the banking route may actually have a little more additional guidelines from my understanding.

Okay, Stephanie says, what if you lose your job? I guess that would not matter. You will be in a financial crisis either way. So let's talk about that. This is interesting. Let's assume I already have the all in one loan product and I'm doing it. My income's going in, expenses are coming out, cash flow staying. I'm doing it and doing it, doing it. Boom. I lose my job. The difference between the person that has an all in one and the person that does not is the minute that person loses their job, they were sending their cash flow pretty much 100% of it to the debt pay down of their mortgage. They're now jobless and to now go and apply for a second loan on their property to unlock the equity that they had in there because they were trying to pay their debt off faster. And now they have the risk of no income coming in. And however much they had in reserves is only going to get them a couple months. Average American doesn't even have and have a full month month's worth of expenses saved. Whereas the person with the all in one that loses their job, they might have bought themselves nine months, six months of a run rate before their line of credit even maxes out.

And again, they don't late payments on their mortgage or their credit cards or their car payments.

Nothing's late.

You don't have to have a deposit in the all in one to still maintain its movement forward.

Forward.

That's the best party. Gives you that little bit of time to go. I All right, here's the hurdle. This is what I need to do to overcome it. And now I'm on it.

You lose your job depending on why you qualify for unemployment benefits. You go from velocity banking to pay off debt to stop velocity bank and keep head above water. Parking, unemployment benefits on the line. Very smart. That's what I tell my clients is there's a season where we're doing velocity banking with our all in one. Let's say for this, for the sake here, what we're discussing. And then I've had clients lose their job or lose a significant amount of income. So then I say pause, pump the brakes on consolidating any more new debt into the all in one. Our all in one is now going to be purposed for the time being as simply a tool that we extract money out of so slowly over time. And even before we extract that, we're using your credit card first to keep running your bills and then we're pulling from the all in one to pay the credit card off. So we just might have bought ourselves an additional six more months. And if you did have any money in cash reserves anywhere, because still I have clients that do that, I'm telling them, okay, now's the time to bring those monies back, back into the all in one, because you're going to spend that money anyways. We're out of a job. We don't have income coming in. So if you have five grand over there and seven grand over here and two grand on the mattress, let's stick all that money in the all in one and slowly extract the money and any benefits we can get in the meantime to create that gap, any side work that we can do until we've replenished that loss of income. You are buying yourself a lot of time that the person that was dedicating extra payments to pay down their car, student loans, credit cards, that money's gone. They cannot re access it.

Right.

The only thing they get as a result would be the cash flow, but that's not paid off. So they still have a payment. So that puts you in a really, really good, healthy position. And for the clients that have lost income or lost job, their stress levels did not increase nearly as much.

Right.

Like their. The way they were talking to me over the phone, they were actually, you know what? I just got my severance package. I actually have another client that happened to them got a severance package, that means a lump sum of money. And they just dumped it right into their all in one. Dumped it all in there. And we just mathematically said, look, you got nine months pretty much, you could take a whole year sabbatical. Yes, your line of credit would be increasing in the process, but very slowly compared to other means.

Right.

Your money runs out slower than if it was just sitting parked in a checking or savings, right? So that's huge. Huge, huge. So this guy's on a sabbatical and he's, you know, planning on maybe diving into a new industry. Right. This gives you time to like sit with yourself, process. What do I want in life? What's my purpose, what's my next stage in life, what's my next career? Allows you to look and not be stressed about how am I going to pay for this, how am I going to pay for that, how am I going to pay for this? Now it's just a matter of servicing debt. Not necessarily paying down, just servicing debt, servicing your expenses. Your credit doesn't tank, everything stays normal. You're looking good. Is it possible to go from an interest only loan to all in one? Yes. So, so, well, you can, you can refinance.

Yeah, yeah.

You can only refinance into an all in one, right. Granted there's a property, right. If you don't have a property, right. Or home, that's the only time we're not getting an all in one because it has to be attached to a home.

You can purchase one in with one. But yeah, that's if they are, if they have an interest only loan, they can go to an all in one. 100%.

All right, awesome. I think we ran through all the questions. I don't see anything else. So action steps are get on a call with Harrison and his team, let's run the numbers, right? If you have to go back, watch this video again. We broke down the terms of the product, how to qualify, the fees involved, the function and use of the all in one. And I'll break this up into multiple clips that it's a little bit easier for you guys to watch later on. And I just want to thank you again, Harrison. This has been awesome doing updated, you know, a master class here on the all in one loan product. And I'm just excited for just the industry because you're what you're doing what the all in one loan product is, aside from all these benefits here, it's also a disruptor in the banking industry as a whole.

Right.

Mortgages are archaic.

Right.

Inefficient. But an all in one is an efficient product.

Right.

And very unique in terms of how the marketing might change over the next 10, 20 years. We'll, we'll see. You know, I'm excited to see how much more activity before this becomes critical mass like a known product for people to get right now it's just looked at as foreign, maybe an alternative. And really the conversation is always around refinancing or paying down. And I think there's a whole lot to be said on just the purchasing of a new home with an all in one out the gate. Almost no one talks about that. And then the part about being able to use the all in one to create income. So I'm going to be, you know, focusing on some content on that as the years progress and go from there. I think I missed a question.

Yeah, it looks like the have an investment property family our renters need home needs updates. Equity available approximately. Does rental income help with qualifications? Yes, 100% actually of to talk about that. There's really cool ways that you can qualify with the all in one loan. Yes, you can use rental income. Yes, you can use any other types of standard W2 or self employed income. But there's, there's a special function called asset depletion where we're able to do on paper forms of income if an individual has excess assets. I got a million dollars in my 401k. Great. We only need 20 grand for 150 grand, what have you, whatever the difference is, we can run a calculation on that remaining balance and give people on paper income for having good savings. So it can help those people that have a lot of assets but maybe don't claim as much money on their business returns. It's really creative. We can really kind of get with this product.

Yeah, that's very helpful for a guy like me that is, you know, S Corp, you know, I pay myself a much lower salary, right. Because I'm paying what's necessary and I'm taking all these deductions. So it looks like I make, I make a lot of money on the business but it doesn't show as actual income because when you net minus expenses and stuff like that and all the deductions then it looks like I'm only making 150 grand a year, you know, 180. I'm trying to get a, you know, $600,000 property or whatever the case may be. It's harder to qualify. But to your point I could use say cash value life insurance that I have my whole life as.

So that's the one that we can't use it. We can use it as reserves. Can't use that as income. So yeah, we can use it as reserves. We can't, can't use that as income. We won't fight for you on it. I mean my favorite thing to tell people is listen, I'm never going to tell you. No, I'm going to say going to find out. We're going to figure out a way and we'll build a game plan.

Okay, awesome, awesome.

Thanks, Jay.

Hopefully I didn't, you know, mess up any compliance here with the CMG team there, but that's, that's very helpful. So 401ks IRAs, brokerages accounts could be used as a rental income, as income onto the, onto a person's overall to get them approved. That's what you're saying? Okay, understood.

Got it, Got it.

And then only cash value life insurance used as reserves.

Yeah.

Awesome. Awesome. Well, I think that is everything. I don't think I missed anyone.

We're good.

All right, Beautiful. All right, you all enjoy the rest of your day. God bless. And we'll be talking soon.

Thanks, guys. Appreciate you.