Should you pay off your house? Man, this
is a question that people are asking themselves all the time. And going to
tell you right now that if you do, everything in your power to get your
house paid off. It might be the worst financial decision you ever make. So, check it out. I mean, hey, getting out
of debt is a good thing, right? If you want to get out of debt,
why would Kris Krohn argue with you that you shouldn’t get out of debt? That’s
actually not what I’m saying. I actually want you to get your house paid off. But
I want you to understand that there is a proper order to things. You see, you look
at history and you take a look at the Great Depression. And what you have is
individuals that have been trained. And by the way, you are a byproduct of the
Great Depression because you know, a couple of generations ago, you had family
that actually went through that and here’s what they learned. Squirrel away
your nuts, hide money under the mattress, do things different, get out of debt, debt
is evil, debt is bad. The problem is, is that if you live your entire life
according to get out of debt, there’s an energy of fear and scarcity. And it means
that you’re not going to invest and grow. You’re actually just gonna try to stay
out of debt. Now, is it a good idea to get out of debt? Heck, yeah. It’s a good idea
to get out of debt. But you need to understand something. You can’t at the
point of retirement, if you got no debt, that doesn’t mean you can retire. You
can’t retire on no debt because let’s say everything’s paid off, does that mean
that you can’t eat food? No, you need money to buy food. And no debt can’t buy you
money, no debt can’t send you on trips, no debt can’t buy you a nice car. So no debt,
you need to understand is a level of financial freedom but it should not be
the goal. You need to elevate yourself beyond that. Let’s do a quick little test
here. I’m going to give you two choices. Let’s just say for a moment that you had
$500,000 of debt. It could be house, car, student loans. That
is a lot of money. That is a half a million dollars. And you know, there’s a
lot of people that are going to struggle inside and say, “Oh, my gosh! Kris, I can’t
live with that debt. I need to aim my entire life on getting out of debt.” But I
want to give you an alternative. Let me give you a second choice. What if you
could either have your $500,000 of debt paid off
right now, Or you had $100,000
residual income each year. Which would you take?
It’s like, “Do I want to make a hundred grand a year or do I want all my debt
eliminated?” Now, you might be thinking, “Kris and one
fell swoop, snap of the fingers, my debt is gone, I should do that.” There’s a
problem. You’re going to start all over and then
guess what you got to do? You got to go produce income again. However, you take
this hundred thousand dollars of income. This residual income. Guess what that’s
enough to do. It’s enough to service the debt and have a whole lot left over. For
many of you, it’s enough left over that you actually don’t have to have a job.
Servicing this debt might cost you… Let’s call it $4,000 a month. But this is
$8,000 a month of residual income. So it’s like, “Well, I can service all my debt.
I got 4,000 leftover. What can I do with that?”
Well, maybe I’m that’s supplementing a job. Maybe I don’t need a job. Maybe I can
go do something different. Make even more money. So what I want to do in this video
is I actually want to share with you how you get your house paid off. But how you
can do it 3 times faster than the 30-year plan. Now, I say 30-year plan and
you’re thinking, “What’s Kris talking about? There’s a 30-year plan?” Yeah, it’s
called a 30-year mortgage. This is what people do. You get yourself a 30-year
mortgage. And let’s say that it is to pay off a $250,000 entry-level
modest home. And so on this side, in 30 years, your house is going to be paid off.
First of all, question for you. Do you really think you’re going to live there for
30 years? An entry-level. I’m… You know, modest home like that? You can think you
will all you want but most of us, were changing jobs every few years, we’re
changing careers, we’re changing houses. Technology is speeding up the world in
incredible ways. The likelihood of you living in this house for 30 years is not
very likely. But you need to understand that for the first 15 years of the 30,
you’re going to be paying mostly interest on the home. You’re actually not going to
hardly pay the house down. That’s a problem. You’re actually going to pay for
this house two and a half times based on the interest over a 30-year period of
time. So, it will be paid off in 30 years. But I want to ask you. I don’t care what
age you are. Do you really want a 30 year plan to get out of debt? Problem is that
is you’re not going to leave enough money to what? Invest and grow and have
money for what you need to produce a residual income. We need an alternative
plan. I’m going to give you a second option. On a fairly
consistent basis, I meet individuals that have a home. They’ve had it for enough
years that they have now put a little you know, built up a little bit of equity
in the home. And they’re still on the 30-year plan and they got maybe 20 more
years left or maybe 30 more years. And this is what I share with them. Let’s say
this person actually owes on their $250,000 home.
Let’s say they actually owe 150,000. it’s not that they
paid it off, it’s that the house also went up in value. And so now there’s $100,000 of equity. I can show you how to go to the bank and pull
out $50,000 of cash. Now, if you take out this 50,000, your
mortgage is going to go from 150 up to $200,000.
So, it’s like, “Kris, you’re getting me and more debt?” Here, I have a 30 year plan
to get out of debt and here you want me to take on more debt? Yeah, because this
is going to be a business debt. This is going to be taking money to make money.
In my most conservative real estate system that I do with people, basically I
take $50,000. I deposit that into a home that is going to be
making you another $50,000. In 5 years, the goal is
minimally to double your money. So in 5 years, if you go from 50,000
plus 50,000, that’s a hundred thousand dollars. Would you say that was
a good move? Yeah. Way faster than what’s happening over here. Let’s say that you
add in 5 more years for a total of ten, right? We got 10 years happening on
this side. And what’s happening is we’re doubling that hundred thousand again/ Now,
we’re doubling it to $200,000. Guess what? You now have
after 10 years. You have enough money to pay off that $200,000
house and in 10 years not 30. You got your house paid off. You paid off your
house two, three times faster. On my conservative game plan. But you know what?
Amp it up one more level. What if you then said, “But Kris, I got 200 grand. Do I
really want to pay off my house and then be even? I mean we totally shaved off 15
20 years here. But what if I took the 200 and doubled it again in 5
years to 400 grand? And what if 5 years later, I doubled
it again to $800,000? What if by the time this 30
years rolled around. Instead of having a paid off
house, what if I had one and a half million dollars?” Do you see this smile?
Friends, that’s… That’s what I did when I got in the game of real estate is I just
got learnt good at learning how to double money and how to make money. And
so, if you really want to get out of debt, what I’m saying is investing the right
way is a better way of attempting to do that. Now there’s a risk to investing
because guess what? You could lose your money, you could make a bad investment.
That’s why you need a mentor. And that’s why I always encourage people to find
someone that can show you the ropes tee at the deals or make this thing
happen for you. And in many cases, I am that mentor. If you didn’t know that
actually did that, you could click the link in the description below and you
could talk to my team about me mentoring you and actually helping you learn how
to do this. Listen, whether you have a house, whether you’re starting from
scratch, whether you’ve built some assets, bottom
line I guess that I’m sharing today is that this goes beyond a bigger
philosophy of should I pay off my house? The answer is, “Yes pay off your house.” But
here I’m talking about timing and what you do with your assets in the meantime.
And I want you to understand, you have alternatives that are significantly
better than borrowing money from a bank and over 30 years, giving them their
money back two and a half times. So that 30 years from now all you have is a
debt-free home. That’s better than where a lot of people might be but you could
be 10 times further along. Hey, thank you so much for watching this video. I hope
it was useful for you and I hope it helped you understand some ideas here of
how to get out of debt significantly faster than the 30 year plan. If you’re
interested in beating the financial system because it is a game and money is
a game. If you want to learn how to make money 10 times faster than what society
is teaching you, click the link in the description below and my team and I will
share with you exactly how we’re doing it. We’ll show you how we’re doing it
through our lease option strategy and through a number of other ways to most
importantly, get on the phone with my team and they’ll actually put themselves
in your financial shoes. Break it down and show you exactly what it would look
like for you. you