The Death Of The HELOC? (NEW) - YouTube

Can this be the death of the HELOC in this video we're gonna talk about a new

banking product that it's coming out in the horizon that may completely change

the game on the heel out strategy aka the debt acceleration strategy

hey what's going on everyone this is San Kwok one of the Kwok mothers and welcome

back to one of our videos in this video we're gonna talk about this new banking

product that it that is coming out of the horizon that is fairly new to me and

I'm just getting introduced to this and I've been doing some research for the

past couple days about this new banking product that is out there

it's called all-in-one loan now some of you guys may have heard about this

already I actually heard about him back in

December but I didn't really spend much time researching it because I was kind

of that mode of like we have a heel out we don't have to worry about this you

know something that I didn't quite understood when I first did my research

back in December so I you know pays to learn it pays to have some understanding

about this banking product but I recently heard it again from someone

that I trust dearly and and I see this person as an expert and this person

mentioned it to me again and I'm like you know what I really should look back

and go back and really see what this all one loan thing is so this all one loan

essentially what it is is if this is your key lock okay and this is your

checking account essentially what it is it's a merge of the two so that your

checking account in your key lock are no longer two independent accounts

it is now one banking product where if you follow let's say you are your two

hundred thousand dollars in debt okay and let's say you have you bring in you

know eight thousand dollars a month in income so basically what that happens is

that eight thousand dollars of income that you bring in gets buried and pays

off the principal balance of this this heal off this debt that you have your

your your aka mortgage your home loan and it pays off automatically and when

you need that money again instead of having to move money back and forth from

a keylock to a checking account or doing overdraft protection type of thing you

can literally take your debit debit card that's attached your checking account

draw the money out whenever you need to and essentially the money gets thrown

out of the home equity so this makes this super duper easy when trying to

implement the HELOC strategy aka the debt acceleration strategy so for those

who are students of our co course actually

going through some some changes right now because of this all-in-one loan

product and we're going to be doing some research and how to really modifying

what this what will the strategy look like if we completely got rid of helix

and just focused on this all-in-one loan product will it make it easier

absolutely now does that mean that HELOC is going away completely in this

strategy well not necessarily I think we can still use he locks to do this

strategy and I think there's there's definitely money and time savings there

but with this all one loan product it makes it easier it just makes it

efficient with less steps and less of a headache so let me highlight some of the

things that I'm really excited about this all-in-one loan thing and I'm

reading this off of a specific financial institution which I'm not gonna share

this just yet because I want to make sure that everything checks out I don't

want to necessarily throw out a name of a financial institution because it puts

you puts you guys in danger number two there's a there's serious liability for

naming specific financial institutions so when when everything's said already

we are going to disclose it eventually but I want to give you guys some of the

features of this and how this translates to the HELOC strategy and better using

it okay so the first thing that I see in this specific website I'm reading off

here is that the all one loan can be up to

two million dollars for this specific institution now I haven't researched any

other institutions just yet that's why I'm not giving you any sort of specific

financial institution name but this institution says they can loan up to two

million dollars with geographical limitations applying so what that means

is that there's a limit of up to two million dollars of loan that they're

willing to give you this is especially useful if useful if you live in

California in New York some of these extreme coastal states that tend to have

higher prices for home value what I don't see here which is good and this is

something I haven't confirmed just yet but there's no floor limit meaning

certain banks have a specific limit min of

as far as how much they want to London so I actually know of a bank in this

area in my own area that will not lend their HELOC on a home valley that's less

than hundred thousand dollars okay I also know another bank that wouldn't

lend would not lend on a home value of $250,000 or less so this is nice if if

there are no floor amendments this means that pretty much a lot of people can

participate especially because a lot of the homes especially here in the Midwest

falls between anywhere between 50,000 to like $400,000 so it's nice to see that

there isn't a floor limit if again I've yet to confirm that for sure but it's

not listed here in the site the next thing I see that is super duper exciting

is the 30-year draw access remember how I talked about there's a HELOC component

and a checking account component it sits into one well this only one loan allows

you to draw out of your home equity for 30 years there's I don't see a repayment

period where traditionally if you go to a bank their traditional pay repayment

and draw period is 10-year droll and 20-year repayment some things I've seen

10-year draw ten-year repayment or Teddy or draw with 15-year repayment this all

in one loan this institution is saying that they're willing to allow their

consumers access to home equity for 30 years which gives you a lot of

flexibility especially if you're looking to take your home equity and and move

forward to buying things like rental properties or your second property my

suggestion my my my recommendation is to buy rental properties by cash flowing

assets okay the third thing I see here is in better swoop checking account with

24/7 banking access to a line of credit so if that basically means is that what

I've talked about is so he lock in checking Callum mixed embedded embedded

sweep checking account is basically that what it does is it's it takes your money

from your checking account and sweeps it into the home equity line of credit thus

reducing the principal balance and the home equity line of credit and you know

reducing the time and the interest of your pain pretty cool right

this concept by the way guys they're all on loan concepts is isn't new I know

there's a product like this in Australia and New Zealand and it's actually quite

common over there in fact it's reported one out of four

Australians use some sort of a cash sweep account or checking account that

allows them to do this of the all one loan functions the next feature I see is

the ATM deposit cards on limited check writing an online bill pay and statement

are included so what that means is you actually get a physical card that's

attached to this all-in-one loan account pretty darn cool 20% down required for

purchases so pretty standard if you are using this on one loan to buy a property

they're asking you to do 20% down pretty pretty typical I can't complain about

that I think that's totally fair and also protects you as a consumer so that

when the it wouldn't if the market crashes you're not gonna be underwater

okay purchase and refinance transactions

allowed which means that you can use the all one loan to buy property with

whether it's rental which I'm gonna get to that next rental primary or secondary

home and you can refine refinance your current mortgage or HELOC into the all

one loan pretty darn cool primaries second homes and non-owner occupied

homes that's pretty darn cool code right because the most banks that I'm from

what I understand it you they will do he locks on rental properties but it is

incredibly hard to go through the underwriting process the qualification

process is very rigorous this all will no product is basically saying that you

can get this on a rental property which is pretty darn cool because a once you

pay off your rental property now you can see you use that same equity to kind of

divide and conquer right you can go and buy to three other properties to

increase your cash flow grow your roast investing empire and this is the perfect

tool for because you got thirty years of a drawl to do this and then the one

drawback is that the product availability availability may be

geographically limited meaning this isn't going to be available for all 50

states I've yet

you confirm which states are qualified or not the states that I see time and

time again is Texas Texas has a special rule when it comes to home equity line

of credit and home equity loans so I'm gonna do some more research guys in fact

I may actually have a banker a trusted banker come on board on our on our

youtube channel to do some more information sharing about this and if

you guys have any questions go and leave them down below the only thing that

matter at this time is the name of the company that's offering this I'm not

gonna name any specific institutions and I'm not gonna confirm or deny that this

is gonna work for the HELOC strategy but I think 80% of me says that this is

gonna be work this is gonna be great this is gonna make our job and using the

HELOC strategy much much easier for the long term and I know for you guys if

strata if the implemented implementing of any strategy is hard not going to do

it so if this allows us to a make this strategy easier B gives us more option

and C allows us to grow into buying rental properties in building cash flow

I think this is a home run you know home run product that we're seeing here so

I'll go and do some more follow-up podcasts follow-up videos about this

loan product that we're seeing this is just to kind of introduce you to this

concept of all-in-one loan as always make sure you consult with licensed

professionals before engaging in any sort of financial decisions cool

alright guys again if you have any questions go ahead looming down below

subscribe to our YouTube channel if you guys want to see more videos about this

all-in-one loan there's gonna be a whole segment we're gonna have a whole series

about this that's just my gut feeling so go ahead and subscribe to our youtube

channel guys hit like on our video and I'll see you guys in the next video

coming up take care hey guys it's Daniel and this is Sam we are the quad brothers

I hope you guys enjoyed that video if you want to see more content value that

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