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Copyright © 2019 by Novo Elite, Inc. DBA: The Kwak

Brothers

All Rights Reserved. No part of this book may be

reproduced or used in any manner without written
permission of the Kwak Brothers except for the use of
quotations in a book review.

First Edition February 2019

Published by The Kwak Brothers

Thekwakbrothers.com

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Disclaimer & Disclosure

The following book is only a representation of a

potential outcome and/or result. The Kwak Brothers
do not warrant, promise, and/or guarantee any
specific results, outcomes, profit, earnings and/or
income. Readers are advised to consult with licensed
professionals at all times before engaging in any
financial strategies or business transactions. This book
does not offer any investments nor does it offer any
tax, legal, and financial advice. This book is written
with an educational purpose only. Readers and those
that have this book in possession is solely responsible
for the outcomes, results, or the lack thereof when
using the strategies, tactics, and ideas represented in
this book.

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Introduction
What is the accelerated debt reduction strategy? If
you have any debt whether it’s a mortgage, student
loan, credit card debt, or even business loans, this
strategy can help you pay it off much quicker and with
less interest without having to scrimp and save. Now,
don’t get me wrong here. This strategy does require
discipline and focus. But it’s not based on sheer effort
alone, it’s also based on mathematics and strategy It’s
not necessarily about working hard but working
smart, right?

This strategy has helped countless individuals pay off

their debt and live a free life.
Let me ask you this – what’s your personal goal?
Paying off your debt is great but it may mean different
things for you. Perhaps, it’s about living a life full of
freedom, being able to experience more of life,
traveling, living a lifestyle you desire to create or it’s
about being pushing your “financial walls” out of the
way.

Perhaps, it’s about creating a legacy for your family.

Maybe you want to pay off your debt to strengthen

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your family finances – to be able to create wealth for
your family so that they can be secured.

Another reason might be for you to gain control over

your finances – to establish financial security and to
be able to provide for you and your family.

Whatever the reason may be, you want to eliminate

your debt completely and stay free from debt. And
that’s exactly what we’re here to do. I encourage you
to read this book over and over.
When I first came across this strategy, it was such a
foreign concept that I didn’t get it for 3 months!

I had ton of objections and skepticism as to why this

strategy worked. I had doubts and I had questions.
Questions like “How does this strategy work if the
Line of Credit has a higher interest rate?” and “How is
this every safe when the interest rate is variable?”

Some of you will never get this strategy. Why? It’s

because you think you know it all. I’m going to keep
this “real”. Some of you have too much preconceived
notion and you’re stuck with it. What I ask is that you
keep an open mind. This is going to be new and scary.
When scientists proposed that the Earth was not flat
but rather round and spherical hundreds of years ago,
people thought that they were crazy!

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Well, you may feel the same way about this strategy.
“Pay off my debt with a line of credit? what?! Are you
crazy?!”
I’ll tell you that this strategy is the ONLY way to pay
off your debt. If I can get you to believe that, you will
begin to see the possibilities beyond just paying off
your debt, but to build wealth and cash-flow.
The first half of this book is going to be about the
“defense”. We’re going to go over how this strategy
works and why it works. We’re going to go over some
of the misconceptions and objections about this
strategy. We’re going to bust through the fears and
“what-ifs”.
The second half of this book is going to be about the
“offense”. How do we start building wealth and
cashflow! Some of you know that we, the Kwak
Brothers, are a HUGE fan of real estate investing. Real
Estate Investing has brought us many opportunities
through being able to create passive income. Passive
income is income generated by not working. It’s the
whole “make money while you sleep” idea. By holding
onto a piece of real estate and having others pay you
rent to live on that real estate, we get to create
income with very little effort if done right.
Not only this book is about “stopping the bleeding”,
it’s also about “creating financial muscles”. It’s about
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maximizing what we have so we can keep you out of
debt and ultimately create enough passive income to
be able to fire your boss.
Now, I know most of you won’t opt-in to the idea of
real estate investing and that’s okay. Some people just
like working until they’re 70 years old doing the same
thing over and over for the money. But if you’re
someone who prefers to work to build a system that
pays you over and over without having to trade your
time and energy, real estate investing is certainly one
of the best vehicles to get you there.

This is a really quick read. I sparred you from any

boring stories and did my best to stick to the point.
This entire book is less than 50 pages! And I get it!
We’re all busy adults with really important things to
do. So I’m going to keep this really short and sweet!

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Ch 1. What’s So Bad about Debt?

Hold on, if you have to ask this question, I really need

you to pay attention to this chapter. It’s time to pull
up our sleeves and really show you why debt is killing
your finances.

If you already hate debt as much as I do and you know

why you need to pay it off, you have my permission to
skip this chapter.

Chances are, most of you have what’s called an

amortized loan. Your student loan, car loan and your
mortgage are what’s considered an amortized loan.
According to Investopedia, an amortized loan is
defined as:
“An amortized loan is a loan with scheduled periodic
payments that are applied to both principal and
interest. An amortized loan payment first pays off the
relevant interest expense for the period, after which
the remainder of the payment reduces the principal.
Common amortized loans include auto loans, home
loans and personal loans from a bank for small
projects or debt consolidation.”
Now here’s something that I want you to pay
attention to. This statement right here:

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“An amortized loan payment first pays off the
relevant interest expense for the period”

That basically means that when you first start paying

off your loan, you pay a greater amount in interest
FIRST and THEN you start to pay off your actual loan
amount which is called the “principal”.
But wait… That’s not fair, right? How come the banks
get paid first?

If you don’t realize how bad this is… let me illustrate

this to you.
Let’s say you have a starting mortgage balance of
$250,000 (little above the national average) at 5%
interest and 30-year amortization loan. If you have a
30-year mortgage, this applies to you so listen up.

I’m going to calculate the interest for you using THIS

calculator found online: https://www.amortization-
calc.com/
If you steadily paid the mortgage down for the entire
30 years, you would have paid $233,139 in JUST
interest alone. So, if you combine the actual loan
balance of $250,000 with the interest you’re paying,
you are going to end up paying a grand total of
$483,139! THAT’S MONEY OUT OF YOUR POCKET!
WHAT?!

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Some of you might be saying, “Well, but that’s how
things are…”

No, it’s not…

It wasn’t always like this until the last 30 years when
the banks started to introduce the idea of the 30-year
amortization.
Just take a look at this… (United States)

Do you notice how we have MORE consumer debt

now than ever? Mind you that the most recent data
this graph shows is 2018. The trend for this graph is
showing that we are on a rise to more debt.
This is NOT looking good.

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Remember how we talked about the amount of
interest you would be paying on a 30-year mortgage?
Well look at all those people with ever more debt…
Looks like the real winners here are the banks!
Now, here’s the REAL problem with an amortized
loan.

This is a typical amortization chart that shows the

relationship between the amount of principal you’re
paying versus the interest. Remember, the “principal”
is the actual loan balance that you need to pay off.
The yellow highlighted line is the amount of interest
you are paying. The blue highlighted line is the
principal.

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Notice how the bulk of your payment is going towards
the interest in the earlier part of the mortgage
payment timeline?
The problem I have with this is this ONE thing.
Usually between the 8th year and the 12th year into
your mortgage, what typically happens? Either you
bought a new house and moved OR you would have
refinanced because your banker may have convinced
you that the interest rates are down or that you can
save money on the monthly payments.
The truth is…

Whenever you refinance or buy another home to

move, you reset the clock all over again - sending you
back to year one where bulk of your payments are
going towards the interest, not the principal.
It doesn’t matter if you have a student loan or an
auto-loan. The amortization effects are still the same.
This is why most people are perpetually stuck in
paying their debt. They never get to finish it. Instead,
they start over and over again. Kind of like
Groundhogs day! (like the movie).
This is why being in debt is dangerous.

You’re stuck!

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The banks got you where they want you to be.
Ignorant and trapped…

This system only feeds the banks more money.

Luckily, there’s another way! A NEW Opportunity!
Introducing the Accelerated Debt Reduction Strategy!

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Ch 2. Origin Story

For those that don’t know who I am, my name is Sam

Kwak. I am joined by my brother, Daniel Kwak, who is
also a huge contributor to this book. Together, we are
known as the Kwak Brothers.

At the time of this book was written, I’m 26 years old

and Daniel is 24 years old.
We began our journey into the financial and real
estate business about 5 years ago when we were still
back in college.
To go back even further, my brother and I immigrated
to the United States from South Korea with my
parents in 1999 – or I should say that my parents
immigrated here and we just happened to be part of
their decision. Our father is a church pastor who was
asked to take over a church in Chicago.
Scared, afraid and alone, our family came to the
United States with no more than $2000 in cash, little
to no English speaking and comprehension and little
to no network to ask for help.

I remember one time our family couldn’t pay the bills

in middle of Chicago’s January. If you ever been to
Chicago in January, the temperatures can easily drop
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below into the negatives. Without heat, our family
had to jump into our family van to sleep while the
engine was running to keep us warm. To make things
even more “real”, I remember our mom went out to
our local park and picked dandelion leaves so she can
make salad. Which by the way, it’s healthy for you?
That’s how poor we were when we first came to the
United States.

I also remember our family having to face a near

deportation from the United States because our
immigration attorney didn’t properly follow through
the procedures of applying for a permanent residency
status. Ultimately, our visa expired and we were due
for deportation. We ended up going to court and
through God’s blessing and grace, the judge granted
us a path to citizenship and we ended up staying here
in the United States. This was 2008 when the
economy was falling apart.
We grew up with this “poor” mentality that the only
way to live in the U.S. is to get into debt, go get a job,
and work for 40 years to retire with a fraction of the
income that you were used to.

As we grew into our college years, we realized that we

have to make a decision. We were in a fork road to
choose the status quo (working for a job, getting in
debt, retiring late) OR we can choose to challenge the

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status quo by doing what the 99% of the people aren’t
doing.

We came across a book called Rich Dad Poor Dad that

changed EVERYTHING for us. We were introduced to
this concept of real estate investing which also
opened the door of financial literacy. We realized that
if we can buy houses to where people can pay us rent
to live in, we wouldn’t have to “slave away” at a
corporate job for the rest of our lives. If we can just
have enough people paying us rent, we knew we
would become financially free. I remember feeling
excited by this new “enlightenment” that I had. I just
had this rush of wanting to take action and start
buying properties.

But… we had a problem.

I had neither money or the credit to start buying
houses.
I felt stuck, frustrated, and annoyed by the fact that
things weren’t moving fast enough for me.

We began exploring ways to invest in real estate. We

took courses, attended seminars, listened to podcasts
and spent whatever money we had (very little) in
learning as much as we can. After a long journey of
searching, we finally found a mentor who took us
under his wings to teach everything we know.

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Today, my brother and I have over 75 rentals with few
more under way as we write this book.

In the journey, we came across this one little “secret”

strategy. It’s called the Accelerated Debt Reduction
strategy. Chances are, you bought this book because
you want to get familiar with this strategy and apply it
to your situation.
Before our real estate successes, I remember having a
critical moment in my life. I was still back in college. I
walked out of my apartment to check for mail. It was
a normal day and nothing special was going on other
than the smell of pizza that the other college kids
ordered. I opened my mailbox and stacks of envelopes
came in the mail. Curious, I started walking back to my
apartment door while examining the mails that I was
holding.

I opened them. One by one. I can still remember the

crisp sound of the envelopes being torn open.
As I opened the folded pieces of paper, I remember
this sick feeling in my stomach that came as I read
through the pieces of paper.
They were my credit card statements.

This sick feeling in my stomach became a silent panic.

It was almost as if I was screaming in my head.

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At that moment, I realized that my debt spun out of
control. I was only in college and yet I was getting
buried in debt. Credit cards, student loans, and
getting more credit cards. I was barely making money
for DJ-ing for weddings and birthday parties.

My minimum payments started to go up and I knew I

couldn’t handle this. I had to figure it out…
No more partying… No more hiding or pretending that
the debt isn’t there. I had to take the responsibility for
my actions.
Thankfully, through my hard work in real estate
investing and building my businesses - things became
easier. Especially when I started to implement the
Accelerated Debt Reduction strategy.

My debt started to wither away. One by one… One

credit card after another.

It WORKED! I couldn’t believe it!!!

I started to realize with a self-dialogue in my head.
‘Wait, if this worked for me… How many people out
there could benefit from this?!’
That’s why I began my journey to help others find the
same solution and help like I did. I want to help
transform YOU to become free from debt.

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My transformation wasn’t just about getting rid of my
debt. It was an epiphany that people need this. My
mission is to help people grasp this concept and even
more - help them build an empire where you don’t
HAVE to work for the rest of your life. Instead, create
a source of passive income so that you can spend
more time with your family, connect with more
people, travel more, experience life and provide for
those that you love!
Whether you have a large mortgage, auto loan,
student loan or credit cards, this strategy is the
PERFECT way to pay off your debt to live free!
Now, when we were introduced to this strategy, we
were beyond skeptical. Chances are, you are too! We
thought ‘How could this strategy work when the
interest rate on the Line of Credit is HIGHER than the
mortgage or the student loan?!’ OR ‘The math just
doesn’t make sense… How does the strategy work?!’.
Chances are, you have questions right now like we did
when we first came across this strategy.
The good news is…
We have the answers!

My goal for you reading this is to believe that the

accelerated debt reduction strategy (Debt
Acceleration) is the ONLY way to pay off debt. I don’t

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care what other strategy or fairy tales you’ve been
told. I believe that this is the ONLY way to accomplish
the debt free life that you’ve been wanting so badly.
I remember sitting through a video presentation of
this strategy. Half-way through the video, I felt
confused, lost, and skeptical. Before I could fully
understand this strategy, I thought having debt was
the normal thing to do. I’m going to share my
epiphanies with you in this book and what journey
I’ve gone through to realize how POWERFUL this
strategy really is.

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Ch 3. Is it Really for Me?

Now, some of you are saying:

• “This strategy won’t work for me… I have WAY

too much debt”
• “I already have a HELOC, it’s not working for
me”
• “I have a unique mortgage situation, this won’t
work for me…”
• “I don’t know if this strategy is the right fit for
me, I just don’t see how the math works”
• “I don’t have a consistent income like everyone
else… so this strategy won’t work for me”
• “I live in (XXX) state and here, the price of our
homes is way too high so this strategy just
won’t work”
• “I live in Canada, U.K., Australia… does this
strategy work for me?”
• “I have terrible credit; therefore, I cannot get a
HELOC”

Honestly, we’ve heard it all… Time and time again,

people disqualify this strategy because they believe
that they’re in a super special situation where nothing
will work. Let me tell you right now that the only
reason why this strategy won’t work for you is: (A)

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You don’t have any debt (surprise!) - but there’s
another way you can use this strategy to build more
income! (B) You don’t believe in this strategy (C) You
don’t believe me.
That’s it!

I’m willing to bet that this strategy will work

regardless of your situation. Aside from minor
tweaking and customization, there’s really nothing
that will stop you from using the strategy. Like I said,
the only person that’s stopping you is you!
If you’re currently paying TON of interest, this
strategy IS for you!
So then, what’s required to use this strategy?
So, here’s ALL you need for this strategy to work for
you
1. Little bit of Faith & Open Mind
2. Debt (duh!)
3. A Debt Acceleration Tool (HELOC, BLOC, PLOC,
Credit Card) - We’ll show you how to work with
a bad credit situation
4. SOME equity on your property (if you’re paying
down a mortgage) - There’s a way without
having to touch your equity.

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Notice I didn’t ask for your arm and a leg... or your
soul… That would be terrible…

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Ch 4. Debt Acceleration Is the Only Way

So, let’s get to the bottom of this strategy. In this

chapter, I’m going to talk about WHY this strategy
works the way it does and give you some concrete
example.

But first, we have to understand the difference

between an amortized debt versus a line of credit.
An amortized loan is closed ended. It’s kind of like a
one-way street. Once you make a payment into your
loan, you can’t get it back. But with a line of credit, it’s
open ended. You can make payments on it and use
that money again. The most common example of this
is your credit card. With your credit card, you have a
“line” in which you have certain limits as to how much
you can spend on it.

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This is a slide from our training presentation that we
do. You can see the differences between your
amortized loan (mortgage) versus a line of credit.

By the way, if you want to check out the training

presentation video, here it is:
https://learn.thekwakbrothers.com/webinar/nomore
debt
You can watch it for free at any time!
The main takeaway that I want you guys to really
grasp is the ability to pay back and re-use with a line
of credit. This is super-duper important and I’m going
to come back to this concept in the next few pages.

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Average Daily Balance & Average Daily Interest
Now this is the “heart” of this strategy. Without
understanding this concept, you will not get the
strategy.
Average Daily Balance (ADB) and Average Daily
Interest (ADI) talks about the math behind how loans
are charged with interest.

Let’s say you have a line of credit balance of $10,000

with a 6% interest rate. The math behind the average
daily interest is this. You take the interest rate divide
it by 360 days. Now, I know there are 365 days in a
year but the banks often times use 360 days which is
known as the “Commercial lending year”. Once you
have that number (really small number), you multiply
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that by the balance you have on your line of credit for
THAT day.

The illustration above shows that the average daily

interest is $1.67.
Again, that’s the interest that you pay for THAT day
for the balance you have.
But what if the balance changes the next day? Would
that affect the interest amount?

It sure would!
What if the balance went from $10,000 to $5,000?
Wouldn’t that cut the interest amount in half, also?

So, here’s the pinnacle question for you…

What if we can take our entire income and pay the
balance on the line of credit, thus keeping the interest
amount low WHILE still being able to use the income
to pay OUR expenses?

I’m starting to hear the explosions in your head! :)

If you don’t get it quite yet, don’t worry. Here’s
another illustration:

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In this illustration, I’m showing you an example
scenario of using this strategy for 6 days.

On Day 1, we start with the $10,000 line of credit

balance with a 6% interest rate.
On Day 2, we deposit our income of $5,000 into the
line of credit which brings down the line of credit
balance to $5,000. If you notice, the interest that we
are getting charged now is only $0.83 for that day.

On Day 3, we have to spend some money, right? Let’s

say we went out and spent $1,000 out of our line of
credit. Now, we have a new balance of $6,000 for that
day which also means that we are getting charged $1
of interest for that day.

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So, if we continue this pattern, we are only getting
charged $6.01 of interest for the 6 days. Had we kept
the balance at $10,000 at 6%, we would have paid
$10.02. That’s close to $4 of difference. Percentage
wise, that’s 40% of savings!

Woah!
Now, I know that doesn’t seem like a big number but
if you would apply this scenario to a $250,000
mortgage, it would make a difference, wouldn’t it?

Now compare that to a mortgage. Let’s say we have a

very small mortgage balance of $10,000 at 5%
interest. The interest we would pay on the mortgage
is $42 for that month. With a line of credit, we would

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only pay $30.05 of interest if we take the average of
the 6 days. That’s $12 in difference!

But do you notice something?

The interest rate on the line of credit is 6% and the
mortgage was 5%...

Do you see why the interest rate doesn’t matter as

much if you focus on paying down the average daily
balance?!

This is why the strategy is SUPER effective even when

your interest rate on your line of credit is much
higher.

So, let’s put it all together…

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Here’s ONE way of using this strategy. There are
different variations of this and it depends on your
situation.
In this example, we have a $25,000 limit on a line of
credit. That could be a Home Equity Line of Credit
(HELOC), a Personal Line of Credit (PLOC) or a
Business Line of Credit (BLOC). Let’s say your
mortgage balance is $100,000.

What we’re doing is taking that $25,000 Line of Credit

and making a principal payment against the mortgage.
Now, we have a balance $25,000 in your line of credit.
Your mortgage balance has reduced to $75,000. By
doing this, you just saved THOUSANDS of dollars on
interest on your mortgage side which also means that
you’ve saved time as well.
Now, we have to tackle the Line of Credit. Remember
how taking the entire income and putting in your
HELOC lowers the average daily balance which lowers
the interest amount? That’s what we’re doing here.
But we still have to spend our money on bills,
groceries and other life expenses, right?
You can still spend that money out of line of credit!
Ideally, you want there to be sometime between your
income deposited into the line of credit and when you
spend the money out of the line of credit so that you

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can keep the average daily balance on the line of
credit low.

If you want to check out the video training

presentation that I did to illustrate this in a visual
format, go to
https://learn.thekwakbrothers.com/webinar/nomore
debt

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Ch 5. Tools for the Strategy

Let’s talk about how to get your HELOCs, BLOCs,

PLOCs and Door Locks. Lots of locks!
In all seriousness, we need a line of credit tool to
accomplish this strategy.

Now, I know some of you guys may not have the best
credit to do this. But if you have at least the credit
card, you can do it too. After all, your credit card IS
considered to be a type of a line of credit.
If you do not have a credit card or have no credit at
all, it best to start building your credit now than not
doing this strategy at all. It’s not about how you start.
It’s about how you finish. If you need to set aside
couple of months to build your credit, I highly
recommend that you do so.
If you have damaged or poor credit, consider working
with a credit repair company. I know there’s a lot
“dirt” in the credit repair industry, but I’ve seen more
companies that actually help people repair their
credit. I’m not opposed to working with a credit repair
company as long as they are ethical, legal and moral.

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HELOC - Home Equity Line of Credit

This is the most popular method if you’re dealing with

your mortgage. If all you have is your student loan or
your auto-loan, a HELOC will not work for you. A
HELOC is a line of credit that uses your home equity as
a collateral. It’s kind of like your home becoming a
bank. Whatever money you paid into paying off your
mortgage, you can draw that amount out as long as it
fits inside the Loan-To-Value percentage.
Loan-To-Value (LTV) is expressed in a percentage form
and it has to do with how much you can borrow in
related to the amount of equity you have or the value
of your home.

For example, let’s say you have a $100,000 house and

you don’t owe anything on it. You go to the bank and
they are offering you a 90% LTV loan which means
they are willing to lend you $90,000. If you have an
existing mortgage of say $60,000, the bank will only
give you another $30,000. Does that make sense?
Most HELOCs are within the 80-90% LTV range. Some
banks may require you to be at 65-75% LTV.

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In order for you to qualify for a HELOC, you need
couple of things.

• 680 FICO credit score or higher. Preferably 700

or higher.
• Your Current Mortgage Statement
• 2 Years of Your Federal Tax Return
If you are self-employed or you have a business, a
BLOC may work better which is what we’ll talk about
next.

BLOC - Business Line of Credit

A business line of credit is best if you are either self-
employed or you have a business. Business owners
don’t get paid as employees do so sometimes, it may
be hard to prove your income. That’s where a BLOC
comes in handy. A BLOC is an unsecured line of credit
meaning there are no collateral attached to the line of
credit. You may see a high interest rate since its
unsecured but it’s not significantly higher.

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In order for you to qualify for a BLOC, you have to
have the following:

• 640 FICO Credit Score or Higher. Preferably 680

or higher.
• 2-3 Years of Business History
• Your Business Income Tax (Some banks don’t
need it)
Usually, most banks will offer a BLOC without any
verification of income if you need less than $100,000
of limit. This is great for self-employed individuals.
There are issues with co-mingling funds but there are
ways around it so that you’re doing things legally and
ethically.

PLOC - Personal Line of Credit

A PLOC is better suited if you are paying off your

student loans or auto-loans. This is the next best thing
to a HELOC. Typically, you’ll get a smaller limit with a
PLOC. The highest I’ve personally seen is a $20,000
limit. That’s because most PLOCs are used for
personal items and unlike businesses, people usually
spend on frivolous things.

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The PLOC qualification process is similar to that of a
BLOC minus the need for a business. You do need to
have a certain credit score and verification of income
may be needed to prove that you can pay it back.

Credit Cards

Credit cards are the last option but it will still work
with the strategy! While there’s a lot of hoops you got
to jump through, the long-term interest savings is well
worth it.
Since you can’t pay your mortgage out of a credit card
directly, you can set up what’s called an Overdraft
Protection Account. Here’s how that works. You can
set up your checking account where anytime it hits
$0, you can have your bank automatically pull the
money out of your credit card as a cash advance if
you’re spending out of your checking account.
Typically, the bank would charge you an overdraft fee
but if you set up an overdraft protection where you
connect your credit card with your checking account,
the money will come from the credit card.
Now, there ARE fees associated with doing it this way.
Banks can charge 1-3% transfer fee or they may
charge you a flat $10-$20 fee every time there’s an
overdraft.

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What you can do is use your credit card to pay for
whatever bills or expenses but only allow your
mortgage payment out of the credit card be subject to
the overdraft fee. That way, you’re not having pay 1-
3% fee for every little thing. Keep in mind, most credit
cards have a grace period of 21 days in average.
Meaning, you do not have to pay interest on your
credit card spending during those 21 days.

Ideally you want to graduate to having a PLOC, BLOC,

or a HELOC which makes it a lot easier to do this
strategy.

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Ch. 6 - Thinking Offense

So, we talked about paying off your debt using the

accelerated debt reduction strategy. Awesome! But…
we don’t want to stop there. Now that we stopped
your financial “bleeding”, we want to start growing
financial “muscle”.
If you are not interested in making more money,
working less, and retiring early - you can skip this
chapter.
I want to talk about my favorite subject other than
God. And that’s real estate investing.

I know some of you guys have zero interest in this but

hear me out. Once you are debt free and you’re
armed with a line of credit, you now have some
“EXPLOSIVE” tools in hand to start creating passive
income.
Passive income is income that you didn’t have to
actively work for. Just imagine as you sit back and
relax. On the 1st of every month, you open your
mailbox and you see envelopes filled with rent checks
and they are written out to you! Since we live in a
digital age, all you have to do is login to your online
banking site and see all the online payments that
came in.
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While you’re on a vacation, enjoying your freedom
and the time with your family, your tenants are busy
at work. They are fighting traffic, dealing with the
work politics and putting 50-70 hours a week just so
that they can write the most important check: Their
rent payment!
It’s kind of like being the queen bee. You got your
worker bees that fly out there to collect nectar from
flowers. They fly back to your nest so that you they
can make honey.
If you’re not convinced yet, check out this really fun 6-
minute animation video that I made:
https://youtu.be/sZ9nn4U_baE

So, let’s say that you paid off your debt completely.
You have your Line of Credit that’s also free and clear.
In this scenario, you have a $50,000 line of credit that
you can access for pretty much anything.
One of the things that we teach is the ability to buy
houses and apartment buildings using owner
financing.
Owner financing is a concept where you negotiate an
arrangement with a seller of a property where you
make monthly financing payments to the seller as if
they are the bank. So instead of going to the banks to
39
get a loan for a house, you can arrange a banking
relationship with your seller.

If you can find the right property with the numbers

support the fact that it has some great cash flow
potential, you can buy the property for owner
financing, use your line of credit to make the down
payment and cover the cost for repairs.
Now, the assumption here is that the rent you’re
collecting also covers taxes, insurance, management
fee, ongoing maintenance and the minimum payment
for your line of credit.

But, now that we’re armed with this knowledge of

accelerated debt reduction strategy, we can start
paying off the line of credit like we did with our
original debt we started off with. Not only that, you
can use the strategy on the owner financing
arrangement so you can pay off the seller early.
Imagine repeating this process over and over to
where you have 10 fully paid off houses that generate
$1,000 of cash flow to you each month? That’s
$10,000 a month of cash flow you’re generating
because you’ve been able to pay off your debt. The
same way we talked about earlier in this book!

40
Now is it possible that we can buy multiple properties
at once instead of waiting for the one house to be
paid off?
Absolutely!
Now, depending on your situation and your
circumstances, your journey may look different.
Again, it’s not about how you start but it’s about how
you finish!

If you can generate an additional $10,000 month in

cash flow, will that make a difference in your life?
Some of you may choose to retire early.

Maybe it can supplement your current income or your

job.
Maybe you can take more frequent vacations and
explore around the world.
Or maybe, you can help your parents retire.

Whatever it means to you, it can make a world of

difference in helping you provide security and the
freedom.

You may be saying, “But don’t I have to manage the

houses and the tenants? What if the toilets break or
something goes wrong?!”
41
I won’t lie to you by saying that everything will be
perfect with unicorns and rainbows. Sometimes bad
things can happen.
I remember one time I had to spend $3,000 to fix up a
house because the tenants had left it completely
trashed and destroyed. However, if you set aside a
reserve for maintenance expense, you’ll be covered.
What you also want to have is a professional property
manager to handle the daily operations. Instead of
YOU taking all the phone calls and emails, you can
have a dedicated professional deal with the problems
instead.
The bottom line is this. Get educated and know what
you’re doing.

If you asked me to fly an airplane, it’s like asking me

to partake on a suicide mission because I don’t know
how to fly an airplane. It would not only put me in risk
but put others in the plane at risk. But if I go through
classes and learn how, I may just well be able to fly
the plane.
It’s all about the knowledge. At anything, you reduce
your risk of facing bad things if you have the
knowledge to prevent bad things from happening.
And when the bad things do happen, you’ll have the

42
knowledge to respond quickly without costing you a
whole lot.

It’s like driving. At first, you were a huge risk driving

on the road because you didn’t know what you were
doing. But after a series of lessons and supervised
training, you got the hang of it. Soon, you’re driving
and texting at the same time like a pro! (Just kidding,
don’t do this… It’s dangerous!)

In all seriousness, anything can be mastered. You just

have to practice, learn, and hone in on the new skills
of becoming a real estate investor.

43
Ch 7. Additional Resources

When you downloaded this eBook, it should have

come with a calculator that will show you a rough
estimate of just how much money and time you can
save using this strategy!

If you did not see it, go back to chopmymortgage.com

and submit another request for the download!
We also created a Webinar presentation for those
that are visual learners.

Go to
https://learn.thekwakbrothers.com/webinar/nomor
edebt

This webinar is about an hour to hour and a half long.

It will talk about everything we discussed in the last
several pages of this book.

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