The All-in-one loan, anyone have thoughts on this product?

Question

I’ve come across this all in one loan product and it seams too good to be true, if you don’t know about it google it or YouTube and see for yourself.  I would try to explain it but trying to wrap my head around it myself.  Any knowledgeable experience would be appreciated.

Sat Ram · Answer

I have been researching this for the last few weeks as well. @Albert Bui is very useful in giving you any info you need. It is simple math, but the main negative is you will end up paying a lot more if you are not disciplined or you lose your income stream, as the whole product relies on the difference between income and expenditure.

Albert Bui · Answer

Hey Johnny,

There’s nothing too good to be true about it however if you use its pros and minimize its con’s then it can be a highly effective wealth building vehicle for you and like a knife or weapon if you use it incorrectly it can hurt you too like @Sat Ram mentions.

The strategy in and of itself, once you shave off the fluff from the gurus, is a vehicle to get your lazy money that you have sitting around or money that flows through your accounts on a monthly basis to be better utilized when it’s parked in the line because that lowers your cost of financing. The larger the disparity between what you have coming in versus what is going out can exponentially reduce your financial leaks (loss of your money to interest etc) then you in turn take these accumulated savings (through your line of credit) and purchase more passive cashflow assets and rinse and repeat till you reach desired results.

Sat Ram · Answer

There were quite a few threads on this topic in BP:

https://www.biggerpockets.com/...

Rick Pozos · Answer

@Johnny Horner Its all bull$$it.

Some of the people who are promoting this are just that, Promoters. They are trying to make this "A Thing". Its not. Pay off your mortgage payments with bigger payments as quick as you have the money. YES, your balance will go down faster. It is not rocket science. There is only so much interest on each payment. Anything that you pay extra on your payment goes directly to your principle. The lower the principle, the lower the interest.

You are not getting anything for free or doing anything magical. You are just paying more towards your mortgage to pay it down faster. Mortgages are not front ended as I hear on these you tube videos. There is interest on the balance of your mortgage. You have a big mortgage, you pay big interest. As you pay it down, you pay less interest. Pay your mortgage down with as biggest payments that you can to pay it down faster.It has also been called a velocity loan, same thing different name. There are always new promoters trying to get money from you in different ways.

Johnny Horner · Answer

Thanks for the input, another question I have is what is the best plan of attack with other portfolio mortgages.  I have another 9 mortgages, I really like the payoff escalation with this program so do and can I do another all in one on another property and run all my rental and personal finances through the second one or what?  If I did open another all in one do I still keep the first all in one account open and have money available there?  I have downloaded a simulator and it is indicating I could pay off mortgage in less then 5 years.

Albert Bui · Answer

Very Good summary  Sat, that is the truth in a nutshell !

The All-in-one loan, anyone have thoughts on this product?

Most Popular Reply