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How To Unleash Your Cashflow Through Smarter Investing | Cashflow Hacking Ep #30 Jordan Goodman

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How To Unleash Your Cashflow Through Smarter Investing | Cashflow Hacking Ep #30 Jordan Goodman

Jordan Goodman, CEO and Founder of Money Answers, joins us on the podcast to discuss how intuitive investing can unleash your cashflow and propel you into a healthy retirement. As host of the Money Show podcast, Jordan has interviewed and educated thousands of investors on topics ranging from cryptocurrency to infinite banking, and how shares his strategies with Casey in order to help our audience achieve a life of abundance all the same.

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Podcast Transcript 

Intro: 00:07

Welcome to the Cashflow Hacking Podcast. We’re on a mission to help people increase their cash flow. Well the steady paycheck of a nine to five job may provide you a sense of security, it will never bring you true financial freedom and abundance. We will teach you the tips, tricks, and strategies behind increasing your cash flow. We connect with the experts who have defied conventional finance wisdom, who now earn more than they ever once thought possible. For those of you that are not yet at your full potential, are underemployed or simply looking to grow their cash flow, then this podcast is for you. Welcome to the Finance and Markets Cashflow Hacking Podcast, and now to your host Casey Stubbs.

Casey Stubbs: 01:03

This is Casey Stubbs for the Cashflow Hacking Podcast and were very excited today we have Jordan Goodman, who is America’s money answer man, and he will have some great cash flow hacking tips for us today on how we can get some extra sources of revenue and he has written many books. He’s always answering people’s questions with money and helping them make great financial decisions. Thanks for being on the show today, Jordan.

Jordan Goodman: 01:31

Great to be with you Casey, I appreciate it.

Casey Stubbs: 01:33

Excellent. So you are the money answer man for America. You’re always helping people out and today you’ve got some great cash flow hacking tips and the first one was about real estate index funds and I would like you just to jump right in and tell us how we can get involved in that type of investment because I’ve always looked at doing real estate myself, but it seems so difficult, scary complex. It seems like there’s a lot of nightmares and it seems like you might have a solution for that.

Jordan Goodman: 02:03

This is the passive way to do. It’s not index funds. These are income funds. Secured real estate income funds. So it’s a way for the average person who’s not an expert in real estate. It doesn’t want to get their hands dirty at all. To earn an 8% yield over one year time frame in monthly checks or if you want to reinvest it, you can have your money compounding at 8%+.

Jordan Goodman: 02:24

So what they’re doing is they’re lending money to high quality commercial real estate projects all in the US, things like apartment buildings, medical offices, system, living, student housing, parking lots, just all kinds of different projects and the reason that they take these loans as they have a really hard time getting loans on their own, Casey. Banks are really difficult to deal with these days. It could take you a year to get a commercial mortgage, something like that. So typically people want to move ahead faster than that and these projects tend to be smaller than the banks. The banks want to do a 25 million or 50 million or $100 million project. Well there’s lots of people’s projects and not that big. It might be a half million, a million and a relatively small project. So that kind of left behind. So it’s kind of filling a void out there and so they’re going to charge maybe 10% something like that to the borrower.

Jordan Goodman: 03:21

And then you, the shareholder get 8% passed to you and on top of that you get a profit sharing. So if they actually sell the building at a profit within whatever a year or so, they’re going to share that profit with the fund and the fund distributes 80% of that profit to you, the shareholder. So for example, from last year, the specific fund I’m talking about, it’s called the Secured Real Estate Fund. He had an 8.7% return. 8% for the interest .7 from the profit sharing. So, and then the price of the shares, let’s not change, it stays up $10 a share net asset value. So it’s not affected by the stock market or the bond market or interest rates really, or foreign currency and in like that. So there’s a way of earning 8%+ in a kind of consistent way. There’s a website related to that secured real estate funds that we could find out more detail about that.

Casey Stubbs: 04:15

And we’ll definitely post that link on the show notes and on the website. So with this 8%, that’s an annual return on that?

Jordan Goodman: 04:26

Right.

Casey Stubbs: 04:26

Okay and is there any risk involved? Should the borrower not return or pay the loan? Does that get kicked back? And I could lose my entire investment?

Jordan Goodman: 04:36

Well first of all, it’s a diversified portfolio. So if one loan goes bad, it’s not going to hurt the whole portfolio. They may be 30 loans and they’re at a particular time. So it’s not as though all your eggs are in one basket. Your eggs are in many baskets, I guess you might say. And yes, real estate has risk to it, but they mitigate the risk in various ways. For example, the maximum they’re going to lend on any individual property is 70% of the value of the property going to loan to value 70% max, meaning the borrower or developer has always at least 30% plus what I call skin in the game. You know, they’re not going to walk away from something they got a lot of money in and they’re going to profit when the project is complete. But you know, there’s always that possibility.

Jordan Goodman: 05:19

If that were to happen, they would basically take over the project, complete it, and then actually get a bigger profit from the fund because they bought the land at 70% and they would sell it at 100%. So it actually have a bigger profit sharing in case like that, but it’s very, very rare that there are any kind of thoughts. But yes, it is possible. This is not guaranteed. This is not FTIC territory, but return for taking a slight amount of rest, you’re getting an 8% return. If you keep an FDI sealand, you’re getting well below 1% these days, Casey.

Casey Stubbs: 05:50

Okay and when you’re investing the money, since it’s a fund, you really don’t have any say over what’s actually happening. You’re just, it’s just a straight up investment. You don’t like pick which property that you want to invest in or what would venture or anything like that.

Jordan Goodman: 06:04

That’s what the fund managers do and they bring this for 30 years consistently and they actually use 2 strategies which may be helpful. The first one is what’s called forced appreciation. Being there doing something to the building that’s increasing the value of the building, which means that the developer has every reason in the world to get the thing done. And the other strategy they use is what’s called collaborative lending. Meaning they’re like a partner with the builder developer to get the deal done. And return for that, they got a piece of the profits. Some building developer’s not going to share a piece of his profits with a bank. The bank is like the enemy. Here, it’s like a partnership relationship and therefore that’s how they get that profit sharing to shareholders.

Casey Stubbs: 06:46

All right. Now, since you’re America’s answer man with money, I want to ask you a question because I’ve personally been looking into doing some real estate investing and one of the options that I was looking at was kind of a turnkey company where I would buy the property myself, but then they would manage everything. Where they’d have the property management they would handle getting the tenants in and then all of that. It seems like this thing that you’re offering is a little easier than that, but the potential reward might be a little bit less because the other one I’m actually owning the property. I’m building equity and I’m also getting the the monthly cash flow as well. So it seems like if I was to make a decision on which one I wanted to do, how would you recommend a guy like me would look at those two scenarios and decide which one would be the right one for me to do?

Jordan Goodman: 07:40

There are two kinds of different things. The one you’re talking about is an equity play. So say you get into a place and then they fix it up and add the value. New solid eventually you can get an equity appreciation or could go down. The real estate fund is not an equity play. It’s a depth plate. The primary way you’re earning from it, is getting a mortgage. Firstly mortgage position on these commercial properties. And then you get the kicker of the profit sharing. The other one talking about, you are on the title. I mean, you actually own the property. You’re going to pay some pretty hefty fees for them managing it. Both finding the tenants and collecting rent and making sure everything, maintenance and all that. I mean, it may be worth it, but it’s two different animals. The one I’m talking about is a pure debt play where the value of it doesn’t go up and down. The one you’re talking about the value will go up and down and you have all kinds of fees involved in magic. So just understand there are two different structures there.

Casey Stubbs: 08:41

Yeah and I did realize that I’m just trying to, you know, decision making process because whenever we’re going to make an investment, there’s always so many different ones that we can choose. And I was wondering if you had a specific formula and you know, how does an individual find the right investment? How do they know what would be the best one to pick for them when there’s so many choices out there?

Jordan Goodman: 09:03

It’s a $5,000 minimum, so it’s a lot less of a commitment. If you’re gonna buy a house, it’s going to be whatever, 100,000 plus to go by physical real estate and you’re part of a pool, diversified pool as opposed to having it on a specific property. So it depends (PLEASE CHECK). You can also put this inside an IRA, either Roth IRA or traditional IRA, which makes sense because if you have that money compounding, your money is now compounding a 8%+ over a long period of time. Tax free inside of Roth IRA, tax deferred in traditional. That’s a pretty good return. Compounding for a long period of time. Completely passively.

Casey Stubbs: 09:42

Right and is it difficult to get a Roth IRA set up a with real estate because I know you can do it with your 401k or with a brokerage, but this is a little different. With the actual loan.

Jordan Goodman: 09:53

They use What’s called a folio. It is a self directed IRA Custodian. It is designed to handle this exact thing. This is technically what’s called a Regulation A+ fund or commonly known as crowd funding fund. And this started in 2012, Congress passed a law called the jobs act of 2012, which authorized reggae plus funds from starting. So this is one of the first ones that came out basically in 2016 because they didn’t exist before that. So it’s got all kinds of STC regulations to make sure, but what it’s allowing people to do, the average person can invest $5,000 and get 8% plus as opposed to in the past it might’ve been like $100 million dollar pension fund would do this kind of thing. So it’s allowing the average person to get returns I couldn’t get otherwise and it’s allowing people to get their projects financed that couldn’t get done in the past as well.

Casey Stubbs: 10:49

And it’s a win win situation. It sure beats putting your money in the bank.

Jordan Goodman: 10:54

Exactly. It’s a win win for everybody and that’s a piece of legislation is actually working. So that’s a good thing for both sides.

Casey Stubbs: 11:00

Yeah, that is good. So what else did you have for us as for tips that people can use to increase their cash flow?

Jordan Goodman: 11:08

Well, here’s a dramatic one. There’s a strategy called Mortgage Equity Optimization, which allows you literally to pay off a 30 year mortgage in about five to seven years on your existing level of income Case. You don’t need extra income. It’s the way you flow it that makes a difference. That will increase your cash flow right there if you have your mortgage paid off.

Casey Stubbs: 11:29

That’s insane I’ve owned my house for five years why couldn’t I have talked to you five years ago?

Jordan Goodman: 11:32

Well, a lot of people, they have no idea this is a possible strategy and by the way, I’m always going to get a website to help people implement that. The website, and this is called truthinequity.com. So let me just do a very simple explaination of how this thing works because you’ve got to have an open mind, Casey. It’s a different way of thinking about things. The end result is I’m going to save you tens of thousands of dollars in needless interest and pay your mortgage off 25 years faster than you ever thought possible. So hopefully that that opens your mind.

Casey Stubbs: 12:06

Yeah I like it. I’m ready to go.

Jordan Goodman: 12:08

Alright, so the traditional system is you have say a 30 year mortgage. Will you make the same payment every month for 30 years? The first 10 to 15 years, pretty much paying all interest, paying very, very little principle on that mortgage, right? And meanwhile, you’re keeping your income, whatever, where it’s from, in a checking account, sitting there earning zero. You see how this works well for the bank, they get your money for free back, they charge you fees to get your own money sometimes and then they collect interest from you for 30 years. And if you refinance a mortgage, you start a new 30th clock all over again. Even though your rate and payment may be down, all the interest you paid for the last 10 to 15 years, you just throw away to start a new 30 year clock all over again. You see how the current system works.

Casey Stubbs: 12:54

That’s a really bad decision. I can think in most cases, which I have, I’m guilty of doing by the way.

Jordan Goodman: 13:00

People do it all the time. I want to get a lower payment, lower rate, but what they forget about is they’re restarting the clock and all that interest you’ve been paying for many, many, many years. You just threw away. Okay? So the banks are realy happy to have you refinanced because even though the rate may be a little bit less and they liked that clock to begin.

Casey Stubbs: 13:19

Well that’s free money for them.

Jordan Goodman: 13:20

Exactly, exactly. Okay, so that’s the current system. How it works so well for the bank. Now we’re going to flip the whole system and make your money actually work for you instead of the bank. So what you’d do is you’d get a Home Equity Line of Credit (HELOC) what’s called the HELOC which is a liquid line against your house. You can take money in, you can take it out completely liquid. You link it to your checking account. You keep your income, which is normally sitting in your checking account, earning nothing in the HELOC and it’s pushing down your balance every day. He locks them based on what’s called average daily balance. How much do I owe today? So say you have a $50,000, HELOC and you got a paycheck for thousand dollars. Instead of keeping your checking account, you put on the HELOC. Iinstead of going $50,000, now 49,000. So you’re paying interest on 49,000, now you pay your bills on the HELOC as well, but over time, every day you’re making progress on that principle as opposed to making almost no progress with the traditional system. Everyday you’re making a little bit of progress as opposed to once a month you make almost no progress for the traditional system.

Jordan Goodman: 14:27

So let me just go through a simple example. This might help Casey to kind of bring it home as to how it would work, okay. So say you have a house worth $300,000 and you bought it and you have a $200,000 first mortgage at a good rate, 4%, something like that, alright and for 30 years. You would take out a HELOC for maybe 50,000 that you’ve got plenty of equity in that house and you were to write a check on that HELOC with 50,000 towards the first, okay. So now on the first, instead of oweing $200,000, you owe 150,000 and you owe $50,000 HELOC. okay? Now you use a technique we just talked about. You keep your income going in that HELOC all the time making progress and after say a year, something like that, you pay that $50,000 HELOC off because you’ve got that income all the time. And you do it again. You had another $50,000 check on the HELOC towards the first a year later and now instead of having 150 or 100, you pay that off over a year. You do it twice more. So within four years you paid off the first mortgage and the fifth year you pay off the HELOC. You are now mortgage free after five years. That’s a simplified example of how it works. Does that make sense to you?

Casey Stubbs: 15:39

Yeah, it actually makes a lot of sense and it’s funny because those numbers are pretty similar to what my house is and I do have a home equity line which is right around the $50,000 level. And I’m just..so once you pay that $50,000, I’m like take it from $200 or $150. How much of that first payment is interest? Isn’t that like right away? Most of that’s probably going to interest

Jordan Goodman: 16:03

It is now when the HELOC typically there is a minimum payment, which is interest only for the first, so you’re going to have the whole thing paid off in five years, okay. So absolutely and noticed by the way, on the first when you go from 200 to 150, you keep making the same payments you’ve been making before, but much more that’s going towards the principal because you owe $150 instead of $200, so you’re making progress against the principal on both sides. The first is being paid off faster and the HELOC is being paid off faster. Okay? Now there are three things you need to make the strategy work. First thing, you’ve got to have a decent credit score. 680 or higher to qualify for the HELOC, you got to have home equity. If you’re underwater in your house, there’s nothing to bargain so you can’t make that work. And the third thing, you need positive cash flow during the month, more money coming in than going out because that positive cash flow is what’s pushing that balance down everyday.

Jordan Goodman: 16:57

The more positive cash flow you have, a faster it gets paid off. Now that website I gave you truthinequity.com. It’s a free website. You go in and fill in what’s called the personal profile and you put in your income and your expenses on your house value when your mortgage, all these things, and it’s going to say instantly based on what you’re doing today, it’s going to take you 28 and a half years to pay off your mortgage with the numbers you just gave us. It’s going to be 5.6 years or whatever it comes out to be, and they show you step by step how to do it. So I’m oversimplifying, but the idea is you see how your money is not working for you instead of the bank. All that income that was sitting there in the checking account, doing nothing is pushing your balance down every day on that HELOC. Imagine a couple who’s 30, who’s mortgages paid off at 35 instead of 60. What kind of difference is that going to make in their life?

Casey Stubbs: 17:45

The only part of this that I don’t understand is is using your HELOC as your checking account. I don’t quite understand how that part works like you.

Jordan Goodman: 17:55

It’s legal, you can write checks on the HELOC and you can even do it electronically, in my case. The best way to do it Casey is to have all your bills on one credit card every month. Okay? Hopefully something you’d get frequent flyer miles or rebate. So you have your electric bill and your food bill and whatever. All these things are on one bill. So basically you pay one bill a month. So every day during the month your balance is going down as you get income in there and one day a month your balance is going to go up when you pay your bill, but the rest of the time you’re making progress on your principal because your money is pushing it down everyday. So basically that’s how it works. You usually like to pay your bills as linked to your checking account when you’re typically going to get your paycheck deposited into your checking account. And then you move money electronically from the checking account into the HELOC, pushing your balance down.

Casey Stubbs: 18:54

You have to have a monthly positive cash flow in order to make this work. So if you’re not..if your paycheck to paycheck, you don’t have a monthly positive cash flow, then that won’t work.

Jordan Goodman: 19:04

Right, because you have to have that positive cash flow. That’s what’s pushing down the principal all the time. As majority of your listeners have equity of their home, decent credit score and positive cash flow and so for them, this is an absolute godsend.

Casey Stubbs: 19:18

I think that a good percentage of the people that are listening to this right now could probably just go ahead and take advantage of this and I think I’m going to really consider doing that as well. So this is a great, great advice. So thank you Jordan.

Casey Stubbs: 19:37

Yeah, that was the winning tip right there, but we still got a bunch more to go. Okay, so let’s go to the next one.

Jordan Goodman: 19:43

So the next one is people don’t realize they can sell their life insurance policy for tens or possibly hundreds of thousands of dollars when most people do is they let their life insurance policy lapse because they can’t either, they can’t afford it anymore. The premiums have gone up too much or they don’t need it anymore. Say they have kids, they had young kids. Now the kids are self supporting, so if they die they don’t need to support the kids. So that’s kind of..but what they don’t realize is there’s a whole market for life insurance policies, which is what’s called the life settlement market where you can sell your policy to somebody who buys it, becomes the owner and the beneficiary and then get your death benefit. But meanwhile you get hundreds of thousands of dollars right now, okay. Talking about cashflow, I mean it’s an asset you have and the insurance company is never going to tell you you have this. They want you to have the thing lapse, right. Now, typically you have to be older, I would say, you have maybe I’m 65 to 70, something like that because people don’t want to buy an insurance policy and wait 50 years, they may wait 15, 20 years, something like that, and actually if you have any kind of health issues that’s even better. The sicker you are and the older you are, the more money you’re going to get your insurance policy because they don’t particularly want to stick around too long.

Casey Stubbs: 21:01

It’s more expensive to buy it an insurance if you’re older and if you have health problems.

Jordan Goodman: 21:06

In many cases you might not be able to get it at all. I’m saying say you bought a policy in your younger years. I’m just gonna make up a number. Say about a million dollar death benefit policy, okay and you bought it when you were in your twenties and now it’s gone up and you know it’s, it’s just unaffordable for you and say you’re 75 and let’s give you a heart condition. You might be able to sell that million dollar policy for like 300,000. You get $300,000 cash. Now the people who buy the policy pay the premiums and then when you die they get the million, so they tripled their money. They don’t know exactly when, but that’s why they do a medical underwriting to see, you know, how long are you going to last? That’s basically what it kind of comes down to.

Jordan Goodman: 21:51

So this is something that’s literally hundreds of thousands of dollars people could have, may not be here, might be your parents, but they don’t even know this exists and this is what’s called the life settlement market and there’s a website to find out more, which is fundinglife.com. Findinglife.com puts buyers and sellers together. So you will be the seller of the policy. They have more buyers than they have sellers. It’s a competitive market. You’re going to have people, if you fit the right criteria, you’re going to have people competing to give you more and more money for that life insurance policy. It’s quite an amazing thing.

Casey Stubbs: 22:23

Yeah, and now my listeners come from a lot of different backgrounds and different age ranges. Me Personally, I’m 41 and I have had my life insurance policy. It doesn’t matter what kind because I think I got a term life. I did a 10 year term and I’m paying like $35 a month for a year I was in or for a million I was in pretty good shape. Still in pretty good shape, young. But at this point I may not need that million dollars anymore because I’ve built up a good cashflow so I might not need the policy. So if there’s a guy like me, I’m running towards the end of it and I don’t really need the money then would that be an option for me to go ahead and try to see if I could sell it?

Jordan Goodman: 23:07

Not by now because you’re too young and healthy.

Casey Stubbs: 23:09

Okay.

Jordan Goodman: 23:10

At 41 and healthy, people aren’t gonna want to buy it. That’s why I said you need to be like 65 plus and have some health conditions, but you can buy a term policy. Many term policies are what are called convertible, meaning they can be converted from term two or cash value or permanent policy because people aren’t going to buy a term policy that expires. They get nothing for it, but if you have a convertible term policy, yes, you convert it and then you bought, but before you convert it, you know what you’re going to get for roughly so you convert it for a relatively short period of time, but young and healthy. If I be able to sell a policy, but you may have some older followers or their parents have insurance policies and they’re going to let them lapse and this literally can allow the parents to stay in their home and live a decent life.

Jordan Goodman: 24:01

Say they get that 300,000 and they invested in security, real estate. I just found their retirement issue right there.

Casey Stubbs: 24:11

That does it matter how much time is left on your policy? Do you have to be close to lapse to do this?

Jordan Goodman: 24:17

No, you can sell it at anytime. It has to be at least two years after you bought the policy. You can’t like buy and sell it immediately. You can’t buy some called in anticipation of selling it, but if you’ve had a policy for more than two years, you can sell it anytime you like whenever you need the money and you’re going to get more if you wait until you’re older because the price is gonna go up, but (PLEASE CHECK) with life insurance policies that have no clue, this is even a possibility and it’s literally finance their retirements and medications, so again, fundinglife.com is a free website together. Check out what might make sense for you.

Casey Stubbs: 24:55

I’ll just hang onto that one until I get a little older, but hoping to be able to take advantage of it now but that’s alright.

Jordan Goodman: 25:00

You have a diverse group of listeners. I mean they may have an insurance policy that I realized is worth it.

Casey Stubbs: 25:10

Yeah and this show isn’t about me anyways, but I do, I do cheat and I steal all the tips that I learned and I use it for myself.

Jordan Goodman: 25:17

Good.

Casey Stubbs: 25:18

Okay. The next one that you had on the agenda…

Jordan Goodman: 25:22

What’s called verifying loan payments. Now this is with mortgages. A lot of people who have adjustable rate mortgages do not realize that they’ve been making the wrong payments. Too high payments for many, many years. Adjustable rate mortgages is typically are linked to some kind of index, maybe the prime rate, it could be live more as well, different things it could be potentially linked to.

Jordan Goodman: 25:43

And often these mortgages are sold for one servicing company to another to another and they make all kinds of mistakes and these things. So what ends up happening is you can audit your mortgage payment if they’ve been paying, if you’ve been paying too much, you can get a rebate that can literally be thousands of dollars and get your payment set to a better level that’s more accurate, in many cases. There’s a free website called verifymymortgage.com that actually does this for you and they, you get your original mortgage payment statement, they see what payments you’ve been making. They see what the index is and they say, Oh, you paid $8,000 too much mortgage on the last five years. She has a letter giving the great details about it. You send that to the bank. They send her a rebate for $8,000 and adjust your payments to a more accurate level, but 40 to 50 percent of the mortgages that they audit they find are wrong. So there’s another few thousand dollars…

Casey Stubbs: 26:41

Is there a cost on the audit?

Jordan Goodman: 26:43

They do charge, I think it’s about $300 to do the audit.

Casey Stubbs: 26:47

And do you recommend that people have been on their loans for a while? Like they’ve maybe 10 years into it because if it’s just a new loan it probably won’t save much.

Jordan Goodman: 26:56

Well that’s correct. I mean if it’s just a new loan, you wouldn’t have had a mistake for very long time. Yeah, I’d say at least five years, you should be into the loan and it has to be a just rate. Fxed rate isn’t going to have that but anything that’s going up and down based on what’s next there were just massive mistakes being made and note, people have no clue, you know, doing that. And by the way, related to that is escrow. A lot of people are over escrow on their mortgages. Escrow is how the side, we’re paying property taxes and home insurance. Many times they withhold more than they really need to and you can, this is the same website, verifymyescrow.com to receive your overage. Same thing, you get a rebate and adjust the escrow down to a more accurate level.

Casey Stubbs: 27:43

Excellent. Well that’s good. I’m definitely look into that one too. All right. Now let’s go ahead and move onto the next tip. What do you got for us?

Jordan Goodman: 27:52

Refinancing your car payments. A lot of people took on cars and payments much bigger than they could really afford it and they don’t realize you can refinance your car payment to both of interest rate and a payment that’s more affordable for you. Again, that’s a free website for this called myloangen.com, and you go in there and you put in your existing car payment, how many more months you have to go, interest rate once you bought the car for and then gives you a little dial that you can choose what your car payment’s going to be and what interest rate you’re paying and what the maturity it may be. So I’m making this up. Say you had a $500 a month car payment and you have three years ago. When you’re finding out $500 a little more than you can really handle.

Jordan Goodman: 28:38

If you move your payment for three years out here, your payment might go from 500 to 250 as if the car’s going to last anyway. Then you’ve made something more affordable for yourself, allowing people took on bigger car payments they could really afford, and what you don’t want to do is have the repo man coming in the middle of the night with a hook and you go out and your car’s gone, okay, which is what happens. And the loan companies have now made it easier to track where you are. They have a device you’ll put in your car called the defeat device and literally if you don’t make your car payment, you’re driving along the highway and they can disable your car. You’re in the middle of and all of a sudden dies and they know not only where to go pick you up because they’ve got the GPS, but you’re stuck, they’re going to come with a hook and take you away. So because of those devices, they’ve made more loans in the past that would have because the repo man chase you (PLEASE CHECK)

Casey Stubbs: 29:32

Because they know that they can get their asset back really easy.

Jordan Goodman: 29:34

Easy with GPS defeat device, they know exactly where to get you. As a result of that they’ve made a lot of loans they did in the past because they don’t have to chase people around as much. So that can save you a lot of money and give you control. So what happens is when you picked a maturity and the interest rate and the payment you want, you then click submit and then it goes out to a bunch of credit unions around the country who then compete for your business to give you the best deal. So in about two minutes. You can refinance your car loan and save yourself a ton of money and improve your cash flow.

Casey Stubbs: 30:07

Yeah, and that’s a little different than refinancing a house, right? You’re not, given up all that interest or you are. It’s the same concept.

Jordan Goodman: 30:19

Choose. I mean it gives you a choice It gives you a choice at different levels. It’s gonna have different interest rates. It may be more important for you to get the payment down and therefore increase the maturity of the loan, or you may want a lower interest rate and pay up car payment. You have a choice of exactly what came up, what interest rate and what maturity you are, based on your budget. It’s giving you control. When you go to a car dealer, they’re not going to give you a bunch of choices. They’re gonna say, based on your credit, here’s the interest rate. You get them. Here’s the term. This now allows you to refinance that give you all kinds of choices you didn’t have before.

Casey Stubbs: 30:52

Well, that’s really good, Jordan. We got time for one more tip.

Jordan Goodman: 30:59

A big one. Refinancing student loans. Okay. Now this may be more relevant for you in the audience because this is the monster these days. The average person is graduating with 39,000 in student loan debt is the average. Many people with $50,000, $100,000 undergraduate. Graduate school, $200, $300, $400,000 in dental school business school, law school. It’s just staggering the amount of student loan debt people are in and you can’t get out of it Casey that you can’t even go bankrupt and get out of. It’s not even in bankruptcy. So what you’re gonna do is there’s two things, consolidate it. If you have a whole bunch of different federal loans at different places, consolidated it into 1 at the lowest possible interest rate. A website for that, consolidatecollege.com or sometimes even better, refinance it to about 2 to 3 percent. That was a place called Credible that will help you do that and the website is credible.com and then do forward slash money answers.

Jordan Goodman: 31:59

Cause they know it’s (PLEASE CHECK) that way. You get 200 bucks off your first payment when you refinance it. So you take private loans, parent loans, federal loans, all of them combine it into the 2 to 3 percent interest rate and save yourself a lot of money because typically an allowance are at 4 or 5. Private loans, 10, 11 percent and I have one payment to make. I’m not making my mom’s disappear, but I’m getting the interest rate down and you’ll have one to pay instead of many and that will save you a good amount of money. So again, that website credible.com, backslash money answers. Credible itself isn’t the lender. It is a platform that has about 10 different lenders and you figure out which is best for your situation, apply online and that just takes care of your student loans. That is the burden of this generation.

Casey Stubbs: 32:44

It really is. It’s so tough with just starting out, you know, the younger you are, the harder it is to make it and you got this big burden right from the beginning. It makes it really tough. So that’s a great tip. Thank you.

Jordan Goodman: 32:56

In many cases people have degrees and they don’t have a job in that area. I think only about 40% of the people graduating from law school end up in the law one way or the other.

Casey Stubbs: 33:05

Just getting the degree is not the guarantee of the revenue that they’re expecting.

Jordan Goodman: 33:10

People don’t even graduate or they take 5 years to graduate or they don’t know what they’re doing. I get emails from people all the time when I go out to get them. I got one from a guy working at Walmart making $10 an hour. He had $110,000 in student loans and they said, how long is it going to take to pay me off? I say, pay this off. I said, how many grandchildren or you’re going to have because it’s going to be them paying this thing off.

Casey Stubbs: 33:32

Yeah. Well hopefully you were able to help them out. That’s some good resources. So, Jordan, thanks for being on the show today. Your tips have been incredible. The HELOC tip is for me is the is the gold star. I’m gonna follow up with that. How can people get in contact with you if they want to find out more about what you’re doing?

Jordan Goodman: 33:53

So my website is moneyanswers.com. I’ve got loads of resources and links. I’ve got a youtube channel just like you do. I’ve got blog. I do a monthly newsletter that they can sign up for for free. I’ve been doing this for a long time. We’ve just scratched the surface of the kind of resources I’ve offered people. Investing in credit cards, in mortgages and insurance. I love doing this stuff. I was at money magazine for many years covering these things, so I love to help people and I’m glad to take emails for listeners as well at moneyanswers.com.

Casey Stubbs: 34:24

Okay, well for everybody that’s listening this. I recommend that you guys go ahead and go to that website and just take advantage of everything that’s Jordan is putting out there because, if you don’t take action, you’re not going to be able to reap the results and Jordan’s given us a great bunch of free tips and he’s got a lot more so everybody that’s listening should really go to moneyanswers.com and check out what Jordan Goodman has to offer and I want to thank you for sharing that information with my listeners today. Thanks for being on the show, Jordan.

Jordan Goodman:34:54

Thanks so much Casey. Appreciate it. I hope we’ve changed some lives.

Outro: 35:10

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