I'm Zach Oehlman, and I’m giving away all my knowledge for free. No paid masterclasses-ever!
Why?
After 20+ years and $1,000,000+ invested in my education, I know that real success requires more than just courses. Too many people get sold expensive programs that don't deliver. I’m here to change that.
What You’ll Learn:
Start, scale, and sell businesses Invest profits in real estate Reduce taxes Set and achieve goals Create effective budgets Remove yourself from your business Quit your job/get promoted Learn faster and retain more Travel the world Live a happy, fulfilled life Join our free Skool Masterclasses today!
Click Here to Join 👉🏼 learnandgrowrich.net/
Let me know what you want to learn, and I’ll create the training.
I’m happy to bring you on my channel and discuss the good, bad, and ugly on velocity banking. Your $500 offer is impossible based on the standards you set as a velocity banking expert there isn’t a difference in the math. Same principle amount amortized loan or simple interest loan over the same time period the math is the same
Hello my friend! Huge fan and I knew I would get your attention :) I would love to hop on a call and dig into the numbers with you and have an amazing conversation to get people on the right track. There is a lot of wrong information around it. How do we connect?
Bro, I’m 13 minutes in. Bro saying velocity banking won’t save you money, is like saying paying off your home early won’t save you money. You’re not accurately modeling the way to use a line of credit in vb.
I would love for you to show me how to do it correctly then my friend :) I provided you all of the spreadsheets for free. What you aren't considering is the Opportunity Cost of paying off your debt. If your mortgage is 5% but you can earn 6% or more on an investment such as rental real estate you (which is easy to do once you are educated) you would be better off buying the rental real estate. This is not black and white like they make it seem.
Yes it would be cheaper to use cash to pay off your house and chunk away at the mortgage like that. But the benefit of velocity is you are still able to maintain your current life style. But let’s look at an example. My own previous situation. I bought a house for 209k with 6% interest. If I made minimum payments. Monthly payment : 1253 Total payments: 451,101.82 Total interest: 242,101.82 If I paid it with extra cash payments, and not line of credit (3000$ was my monthly cash flow) Monthly payment: 1253.06 +3000 =4253 Total payments: 240,450 Total interest: 31,450$ Payed off in 4 years and 9 months Using line of credit( accounting for average daily balance at 3000$ at worst case scenario) and 15% apr = 450$ per year in interest x4.75 years = 2,137 Monthly payment: 1253.06 + 3000 =4253.06 Total payments: 240,450 + 2,137=33,587 Interest saved: 242,101.82-33,587=208,514 Now, did velocity banking charge me more than if I used my cash flow and no line of credit? Yes it did cost me more, but what are the chances you actually stick to putting all of your extra cash towards your debt for 4 years and 9 months while supressing your current lifestyle? That is the advantage of velocity banking. The costs to maintain my current lifestyle and pay off my mortgage fast af was 2,137$ approximately.
@@Beyond_bank_notes I love your passion and we are talking about two different things. I am talking about finance and you are talking about lack of discipline. Instead of "chunking" you can just pay the extra money down on your mortage and then use the credit card as a safety net. I would love for you to attend my free Friday Mastermind and I will show you where what you can't see because this math is so complex you can't do it in your head. Join my Free Skool Community at LearnAndGrowRich.net to get access to my free Zoom on Fridays.
@Triaxx2 that isn't necessarily true on all aspects 😉 I'm simply saying that of you do spend money on a coach then it would be wise to hire a coach that realizes we all have limitations and has a coach themselves. Have an amazing day!
Your premise on amort vs simple in velocity banking is wrong. No one saying under same principal amounts they are the same. What they saying is the principal pay down is faster under velocity so in the end the total simple interest paid for the same debt is lower than the amort interest over that period. In general paying interest at higher rate can be lower than amort interest if the balance is low enough to do it.
Please help me understand where you think I am wrong. The idea of borrowing money from a line of credit to pay down a mortgage only works if the line of credit has a lower interest than the underlying mortgage you are chunking. There also is no such thing as amortized interest. You have to look at the cost of debt not just the dollar value of interest when comparing all of these. I provide access to these spreadsheets if you want to use them at: LearnAndGrowRich.net.
@learnandgrowrichnow I'm only saying you were wrong about what velocity banking advocates say is there advantages. They completely acknowledge that locs have higher interest rate. But because the locs is a revolving instant cash line they can move cash in and out at such a rate that the principal goes down so fast the interest you pay ends up being less because the principal is less.
@@bubblewrap4793 interest is calculated on the current balance of the loan using either method. Do the actual math and stop listening to the VB advocates who won’t do an honest apples to apples comparison. There is no such thing as “amortized interest”. There is an amortization chart that shows the interest “IF” only the regular payment is made. Paying more towards principal reduces the interest amount. It’s basic math.
The people that tell you that the people telling you that the banks are lieing to you and are actually the ones lieing to you are actually lieing to you
Thank you for your comment! I'm always open to discussion and different viewpoints. If you have any specific points you'd like to discuss or believe need clarification, please share them. Let's learn and grow together.
Exactly right. Another thing is most lines of credit have higher interest rates than mortgages so that makes less sense to use them. Cristy Vann and others are straight up lying to people and won’t do an apples to apples comparison like you have. She blocks you when you try to show honest comparison in the comments. Paying extra towards mortgage principal beats VB every time. The only situation where it wouldn’t is if the method used to chunk had a lower interest rate. That is never the case. She and others are going to cause people to lose their homes by getting a heloc AND worsening their financial situation. Everyone wants some magic method to get out of debt. There is none, it’s just math.
Absolutely, that's spot on! Higher interest rates on lines of credit versus mortgages often make the argument for VB weaker. It's critical to do honest, apples-to-apples comparisons. My goal is to provide clear, accurate information to help people make informed decisions. Thanks for your support!
Velocity bank is legit but you got to know what your doing. It doesn’t work for every situation. In some situations, it will beat the snowball strategy, etc.
@mikeg3810 I absolutely agree with you from a cash management standpoint. The point I'm trying to prove is that there is no such thing as ammortized interest and it actually costs you more money if you chunk a mortgage with a higher interest line of credit.
The line of credit payment is made up of Principal and interest so if you’re putting in your income every month into the line of credit, the principal payment is made automatically because you’re paying back you’re paying back the line of credit and then you’re reusing it so really the only thing you’re paying on is the interest charged to the lot of credit
If I am chunking a low interest piece of debt with a high interest piece of debt, but I pay off the low interest faster by chunking with the higher interest debt. I still pay less in interest.
Ok, I'll rewatch and see how it's applied. How do you feel about front loaded interest? A bank is designed to front load interest, knowing the likelihood of refinancing. Wouldn't your argument be better if all loans weren't based on a 30 year payoff?
@@coreyjones3898 there is no such thing as front loaded interest. This is what my entire training is based on. Watch it a couple times and let me know if you have any questions.
@@learnandgrowrichnow funny how gullible some people are when the VB advocates say things like front loaded interest and amortized interest. Catchy terms that are both total BS.
So I have seen plenty of evidence in both camps; VB and extra payments/debt snowball. The main question I have, WHERE do you think extra principle payments get fit in, in terms of the payment schedule? Is it extra principle gets slotted where your currently at, in the schedule or at the end of the loan? That might be the answer your seeking. Also I have seen plenty of videos that have VB stopping when the amount of interest is less or similar to a normal pay of the schedule and swap to snowball.
Thanks for commenting and taking the time to ask questions! Help me understand your question as I don't completly understand what you are trying to get at. The key here is to understand that there is no "right way" to do any of this as it all depends on your 1). Income / Expenses 2). Cash reserves 3). Cost of capital 4). Opportunity costs 5). Knowledge / Skillsets 6). Intenion / Goals. I could have the exact same person with the exact same financial situation and we could create a different strategy based on the previous items. This is why it is so hard to tell you "the way". I highly recomend you get into our free Skool Community at: LearnAndGrowRich.net and get access to all of our education.
hey hey my friend! I took them down as they didn't have all of the context people needed. I have learned a lot since I first made those and am redoing them all. I am also giving people the software they need to help them understand it better and how to maximize everything.
You should do a summary because quite frankly the video will be too long and too complex for most people prone to believing in the Voodoo Banking magic. It would help to do shorter videos on concrete cases with concrete numbers. I'll add that the situation is worse than what you show here because you took the same base interest rate. In most cases VB proponents actually advocate using a HIGHER interest rate LOC or HELOC to allegedly pay down a mortgage (or car loan) faster The thing is they do the switch and bait. That is they INCREASE payments (on the mortgage or car loan via the LOC) by throwing all available cash at the debt which over time of course saves interest by decreasing the principal faster (at the cost of losing one's cash) ... Then they claim that it is the LOC that achieved this reduction.
Great suggestion! I'll work on creating shorter, more digestible videos with concrete examples to help clarify these concepts. It's all about making this information accessible and understandable. Thanks for your feedback!
Seems like chunking payments from LOC only works if you deposit your paychecks into LOC and pay expenses from LOC. Obviously income needs to be higher than expenses so you can pay that LOC off and then chunk again.
Chunking never "works" (i.e. is never cost efficient) with VB because VB proponents are always using a higher interest rate (higher than the original mortgage) LOC or HELOC to allegedly accelerate mortgage repayment...... they just end up paying more interest
Great observation, and there is so much that goes into this. The key is to understand the math and the math says any form of chunking dereases cash flow and is only a benefit if the cost of debt is lower. This does not take into account cash managment which is a great use of the LOC. Hop into our Skool community and get access to all of our classes and software at: LearnAndGrowRich.net
Just because a person has been divorced several times doesn't mean he doesn't have something valuable to offer even if it's opposite of what he says you should do😂
