Epic Real Estate Investing - The Government’s Quiet Move on Your Equity | 1511

Episode Date: August 29, 2025

In this episode, Matt warns that the U.S. government is preparing to monetize the asset side of the American balance sheet—specifically targeting home equity—as a way to address mounting federal debt and revenue shortfalls. He explains how new policies and financial mechanisms, such as property tax increases, second liens, and forced equity releases, are being positioned as solutions to economic challenges but ultimately extract value from homeowners. Matt outlines a five-step playbook the government may use to tap into household wealth, highlights the risks for average Americans, and offers practical advice for protecting personal assets, urging listeners to be proactive in safeguarding their home equity before these changes take full effect. BUT BEFORE THAT, learn how the rich use debt, while you're stuck using cash! Also, check out how they are resetting your home price right NOW! Useful links: https://www.notion.so/The-Epic-Funding-Playbook-2565d21d71958002afc3fae0ef869763 https://myescapebook.com/escape-2?video=0KDH7rzZZWk https://epicearnwhileyoulearn.com/yfd?video=0KDH7rzZZWk https://intensive2025.com/?video=0KDH7rzZZWk Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. The Fed flipped. Last week, Fed Chair Jerome Powell just gave us the biggest clue yet about what's happening to your home's value. And it's not what you think. Because here's the deal. There are four forces quietly resetting home prices right now. And they're pulling in completely opposite directions.

And homeowners have no idea which side is winning in their neighborhood. So let's go through all four resets. And then I'll show you which one is winning in your area and what you can do about it. Reset number one. The Federal Reserve flipped reset. So what just happened this week? Well, Jerome Powell completely flipped his messaging at Jackson Hole on August 22nd. I mean, for months, Fed officials were saying, we need more data and we're being patient.

Then Powell dropped this bombshell. The balance of risk appears to be shifting, and conditions may warrant policy changes. Translation, rate cuts are coming, and they're coming fast. And the market exploded. The Dow was up 846 points in one day. Mortgage companies started advertising, get ready for low. rates. Real estate agents began texting clients. Now's the time to buy. But here's the flip that changes everything. You see, in the same speech, Powell quietly announced they're abandoning their

let inflation run hot strategy from 2020 through 23 and returning to strict 2% inflation targeting. I mean, this is huge. It means no more money printing parties like we saw during COVID. No more transitory inflation excuses. No more letting asset bubbles inflate to help the economy. So the real Fed strategy here was revealed. Powell essentially said, we're going back to being boring, traditional central bankers who actually care about price stability. But here's what he didn't say. How do you cut rates to help the economy while also promising to fight inflation?

Because you can't have both. And here's why this creates a price support trap. You see, when the Fed cuts rates, mortgage rates might drop. More buyers can afford homes. Home prices get pushed up. This creates more inflation. Fed has to stop cutting rates. a built-in contradiction. You see, the Fed just promised to fight inflation while simultaneously

promising rate cuts that will cause inflation and housing. And with regard to this historical pattern, I mean, every time the Fed has tried this soft landing approach in the past 50 years, one of two things happen. First, they cut too little, so the economy stays weak and housing stays expensive. Or they cut too much. Asset bubbles inflate, and they have to raise rates aggressively later. See, Powell's flipped this week just guaranteed that we're heading. for one of these two scenarios. So here's what this means for you. The Fed's flip gives your home price a small temporary boost from rate cut hopes.

But don't get excited because Powell just set up a policy contradiction that will force them to either disappoint markets with small cuts or create another bubble. They'll have to pop later. Either way, this support, it won't last. Reset number two, the property tax punishment reset. You see, here's what's happening right now. 2025 is a major reassessment year. Tax assessors are using pandemic-era peak prices to calculate your new property taxes.

Washington, D.C. area, 9% assessment increases. Average residential, 13% increases in some areas. In Colorado, 6.5% assessment rates if values rose more than 5%. The twist in reality here is when we get higher tax assessments, official home values go up and your monthly costs increase. Net effect, you're poorer, even if your home is worth more. So here's what this means for you. Your home shows a higher value on paper, but you're paying hundreds more per month in taxes. It's fake wealth that costs you real money.

Reset number three, the market reality crash reset. You see, here's the current market data. 36% of America's largest housing markets, that's 109 out of 300 major metropolitan areas, are now experiencing falling home prices, concentrated in states like Florida, Texas, Arizona, Colorado, and Louisiana. And I'll scroll the top metros right here for you to read. Here, take Nashville as an example. Inventory doubles from 70 to 135 homes.

The days on market there is up from 40 days on the market to 79 days. Austin, prices are down 15% from the peak. Miami, prices are down 19% from the peak. So why is this accelerating? Well, hold prices are 80% above their 130-year average. People simply can't afford to buy at these levels. And the national costs, $2,800 a month on average to buy, $2,000 on average to rent. Nashville is 171% more expensive to buy than rent.

But here's the reality gap nobody really talks about. My good buddy, Jason, he has recently been shopping for a new home in Arizona. And he's placed over, I don't know, 10 offers or so in the last few months. All five to 10% below asking, which the data supports since Phoenix is down 3.5%. But every single offer rejected. Sellers are still mentally living in 2021, choosing not to sell rather than accept market reality. So here's what this means for you. You're caught in a perfect storm.

The market reset is happening in slow motion because stubborn sellers won't accept reality. But your tax assessor already locked in those inflated pandemic values for 2025. So while your home quietly loses value month by month in one of these 100 plus declining markets, you're still paying higher property taxes based on peak prices that no longer exist. It's the worst of both worlds. But stay with me. It's not a lost cause, not by any means. I have a practical plan for you here in a second.

But let's get to reset number four, the algorithm manipulation reset. And we're talking upward pressure on prices, but it's fake. So here's how this works. Zillow's estimate has about a 7% error rate for off-market homes, but sellers use these estimates to price their homes. And what this does is it creates a feedback loop. You got bad algorithm estimates, leads to inflated listing prices, leads to higher comparable sales, leads to even higher algorithm estimates.

So the current problem here is, the algorithmic pricing models, they're slow to recognize market corrections. They're still showing inflated values even as real buyers disappear from the market. So here's what this means for you. Online estimates might show your home gaining value, but it's digital fiction. Real buyers aren't paying those prices anymore. So of these four resets, the Fed, the tax collector, the market, or the algorithm, which reset is winning in your area?

Well, there's a simple test. You just need to look at these three numbers for your zip code. First, the inventory levels. If they've doubled, prices are probably going down. Then you need to look at the days on market. So if you're over 60 days on market, prices are probably going down. And then three, the buy-averse rent ratio. So if it's 150% or more expensive to buy on a monthly payment basis than it is to rent,

then prices are likely going down. So here's the reality check. If you're in one of those declining markets, those 109 markets, reset number three wins, the market reality. Your home value drops despite tax increases in algorithm inflate. If you're in stable markets, reset number one wins that Fed support. You've got modest price support from rate cut hopes. Now, when it comes to the everywhere, reset number two is going to hit you regardless, the property taxes.

You see, you pay more even if values stay flat. So here's what you need to do right now. If you are buying, use the market decline data to negotiate. Show sellers the inventory numbers and days on market statistics. And you can save, I mean, anywhere from $50,000 to $100,000 depending on your price point, by timing this right. If you're selling, price aggressively below online estimates. The algorithms, they haven't caught up to market reality yet. And by the way, don't confuse underpricing with underselling.

I'm not saying give your house away. No, don't do that. This is a game of exposure. That's what I'm talking about. A low price is going to get maximum eyeballs on your listing. And that type of exposure drives value and value drives price. Your house will sell for what it's worth with this approach. Now, if you're staying put, if you're not selling or buying,

appeal your property tax assessment immediately. use actual recent sale prices, not peak pandemic valuations. You know, more people win these appeals than you'd think. It's not the lesson in futility that most people anticipate. Now, for everyone, stop trusting online estimates. They're lagging indicators that don't reflect current buyer behavior. So if your market fails the zip code test, pressing pause on buying might be smart.

But don't sit it out. There are current strategies to de-risk in uncertain markets and still get paid to wait. Hope is not a financial strategy. Let's get back to work. Like the brilliant yet diabolical Amy Dunn, debt has some very redeeming qualities when executed correctly. Like you can get richer and wealthier using debt than you can if you don't. But isn't that risky?

No, debt isn't risky, but the people using it can be. Because if you mess it up, you'll struggle to get wealthy while you're still young enough to enjoy it. I mean, sure, you can always use the whole, compound interest thing to work its miracle, but 75% of your life will be behind you by the time that that magic trick pays off. But when you use debt the right way, you can compound assets. And that traditional 40-year plan your parents and grandparents followed can be collapsed into

four or five years. No fooling. I see financial freedom created here all the time at Epic. There's Parker and Corey and Ryan and McKenzie and Josh and Brad and Tony, Cindy, Enrique, to name just a few. and they all use debt to make it happen. And I'm going to show you how you can do it too. So here's the deal. When you leverage debt, you get to take a small portion of your own resources to acquire a large portion of someone else's.

It's not just about multiplying returns, of which it does, but the purpose and benefits think oh, much deeper. Here, watch this. The use of debt empowers the borrower to gain full control of an asset, of which gives the borrower the full benefits of the asset without fully owning it.

And those benefits, they can be the revenue, depreciation, depreciation, and use of the assets. As well, long-term debt positions you on the right side of the economy with regard to transferring ownership from the lender to the borrower through amortization.

And when done right, it's the asset itself that does the work to pay down the debt for you, the borrower. And then there's this. The 40-year high inflation that we're experiencing is paying down the debt for you too. You see the increased revenues, salaries, commissions, and bonuses that you receive in the future due to inflation is going to make the debt you take on today easier and easier to manage. You see, your income's going to grow, but your debt payments will not.

Governments around the world, they understand this. And then there's Apple and Microsoft. As of the recording of this, 490 of the Fortune 500 companies are leveraging debt to grow their fortunes because they understand this. Rich people understand this. And if you want to be rich, you deserve to understand it too. Watch this. Our currency. Because of inflation is a depreciating asset. So the rich borrow this depreciating asset to purchase appreciating assets,

specifically assets that they can control. And here are three controllable assets to consider using debt for first. Number one, invest in yourself, like through self-education, training, mentors, and or associations in the interest of becoming competent, in the acquisition, management, and disposition of which asset class you plan to use the debt for. Make yourself better, make your network better. You, you can control you.

Number two, invest in your business. With regard to anything that will improve directly or indirectly the revenue and value of your business, and most specifically the profit of your business. You can control your business far more easily than someone else's. And then number three, invest in real estate. It's the final frontier where the average person has a legitimate shot at creating epic wealth, and that's mostly because of the average person's ability to leverage

debt in real estate in a way that they can't in other mainstream investment options. And now I'm going to show you how this works. And I'm going to use real estate as the model, but these principles can be applied to other assets as well. So I'm going to use some simple numbers to keep the math easy and do your best to not get bogged down into the numbers. But place your focus more on the concept of how the leveraging of debt builds wealth and builds it much faster than you could without it. As long as you understand the concept, you can then later plug in your own numbers

to correlate with your own resources, your own asset class, your own market, and your own financial goals. So here, we have a house valued at $100,000, and you were able to find a motivated seller and acquire the property for $80,000. That's what we show people how to do here at Epic, by the way. And it's not terribly important right now,

but if you feel that this is impossible or really difficult to do to buy at a discount like this one, it's not. There are a few different links in the description below to some free Epic trainings that'll show you exactly how to do it. All righty so we're purchasing this $100,000 property for $80,000. We're going to place 20% down, $16,000 and leverage the rest from a bank, $64,000. Let's say 5% for a traditional 30-year loan giving us a monthly payment of $344. We now control this property without fully owning it, but the control gives us the right to any revenue the property can produce,

the right to any appreciation of the property experiences, the right to all of the tax advantages through depreciation, the interest, and business deductions, the benefit of the amortization, that's the paying down of the debt, as well as the preservation of our money's value through real estate's hedge against inflation. We get all of that.

We leverage debt here to take a small portion of our own resources to acquire a large portion of someone else's. Then next, we go find a tenant that will pay, say, $1,200 per month to live in the property, and each month will collect that rent payment, to make our mortgage payment of $344, paying down the debt. That's the amortization at work.

So to this point, we have used debt to create income. We use that income to pay off the debt, and we also get to use the tax advantages of real estate to further offset those debt payments. I mean, those tax advantages include the deductions of the cost of borrowing the money, the management costs, the depreciation, and other allowable business costs. I mean, those tax advantages, they add up pretty darn quickly, often to the point where you can show to the government a loss

on paper, yet a profit in the bank. And Uncle Sam's going to give you a big thumbs up for that too. So now, we'll sit on this property for, say, three years. Here's what happens after those three years. The national average housing appreciation since 1968 per the National Association of Realtors is 5.4%. Now I know we experienced much greater appreciation in these last couple of years,

but I'm going to keep it really conservative just to show you that the appreciation isn't what real estate is all about. Therefore, timing the market isn't as important as most people think. let's cut the appreciation down to just three percent of which would cause the property's value to jump $110,000 after three years. And when we add in the three years of debt paydown, that gives us a principal paydown of $3,000. And when you factor the original equity with the appreciation

and with the principal paydown, altogether, that gives us a new equity position of $49,000. Through leveraging debt, we have turned $16,000 into $49,000, a 300% return in three years. That's sick, right? You can now leverage that $49,000 of equity into new debt to acquire three more of these properties and repeat the process. And in three years, do it again into nine more properties, of which would give you 13 total properties in less than 10 years. So keeping the math simple, you've turned $16,000 into a small million dollar real estate empire with somewhere in the ballpark of $500,000 of equity, the type of returns that would give your financial planner an inferiority complex. and I didn't even factor in the positive cash flow from the rent yet. Now, you're probably thinking, great, Matt, I get it.

I need to use debt like the rich do. I'll just go to my bank tomorrow and get started. But here's what's about to shock you. The game just changed. The very system that you're counting on to help you borrow like the rich is about to lock you out completely. And when you understand what's really happening

behind the scenes with banks right now, you'll realize why the wealthy moved their money years ago and why you need to consider, doing the same thing. You are going to see a crack in the bond market. Think the 2008 crash was bad? This bond market bomb is 10 times bigger, and it's set to hit investors and business owners first.

It is going to happen. And it won't be a crash. It'll be a lockout. We borrowed and spent $10 trillion from 2020 to today. We also bought $4 trillion of your securities. Those numbers are true globally. The QE of us was $8 trillion. The QE of the rest of the world is another $8 trillion, something like that.

You're talking about huge something like. Jamie Diamond just told you why, but nobody's listening. Let's fix that in the next eight minutes, because here's what's happening now and why it matters for your next deal. I'm telling you what's going to happen, and you're going to panic. I'm not going to panic. We'll be fine. Jamie Diamond isn't some YouTube dumer.

He's the king of Wall Street, but his warning, it's not new. In 1994, city groups John Reed warned of irrational complacency weeks before $1.5 trillion vanished overnight. Here's why that matters to you. When Wall Street's biggest players start warning, it means the money you need for deals is about to get a lot harder to find. History doesn't repeat, but it rhymes loud. And here's what that means. I always thought that was funny, but here's what it means. The U.S. national debt, $37 trillion. That's $107,000 for every American, including your kids. You know, these are very large numbers. So translation, the government is broke. And when governments go broke, they make it harder for everyone else to borrow money.

You're talking about huge sums of money. I don't really know the full effect of that. For years, the Fed flooded banks with cheap money. That's why loans were easy to get. But since 2022, they've pulled $2.1 trillion back out of the system. Less money in the system means less money for your deals. But here's the gut punch. The warning light that's predicted every recession since 1970, flashing red for two years straight,

a record, and Diamond isn't guessing. The last bond market collapse erased $1.5 trillion. But today, the market's 24 times bigger, $37 trillion debt bomb versus $4.8 trillion in 94. So if you do the math, a $4.8 trillion problem caused chaos in 1994. What happens when a $37 trillion problem explodes? Your funding doesn't just get expensive.

It disappears. The government's response? Hmm. But hidden fact. Net interest will hit 13.55% of federal spending in 2025. We'll spend more on debt than defense. And here's the scary part, if it could get scarier. When the government is spending more on debt payments than the entire defense budget,

guess who they squeeze for tax money? And guess which loans banks stop making first, yours and yours. A 1% rate hike used to cost us $360 billion. Now, 10 times bigger powder keg. But what does this mean for you? someone actually trying to get ahead? Well, let's zoom in. Meet Leonard.

He's not new. Mid-40s closes deals, mastered off-market deal hunting with old-school hustle and new tech tools. He's hungry. He wants passive income so he can stop hustling deal-to-deal. He's a big fan of the channel. So he finds the perfect fixer-upper.

He negotiates hard, locks in a killer price. But the bank only funds the purchase. Nothing for rehab or holding costs. He tried to negotiate, but nope, that's not how these loans work, they said. Seller has other buyers. Time's up. Leonard needs funds for everything. Now, or he loses the deal. And here's where the system bites. New banking rules just made it 19% more expensive for banks to lend on real estate.

What does that mean? Banks have to set aside 19% more cash for every real estate loan they make. So they're making fewer loans. And the ones they do make have stricter rules. Guess who eats that cost? You do. Leonard loses the deal. Watches someone with faster flexible cash, snag it. He's furious. He did everything right, but the money system is built to keep you stuck. But here's Leonard's light bulb moment. He found a different way. Three months later, he closed four deals using private credit while his bank was still reviewing applications. Leonard adapted. Most don't. And Leonard's story isn't rare. It's the new normal, actually. Banks tighten, lending standards shift, opportunities slip.

And here's the connection. When the Fed warns about bond market cracks, and the government is drowning in debt. Banks get scared. Scared banks don't lend. No lending means your deals die. And if Diamond's warning is right, this only gets tougher. Look, I've seen this myself. In 2003, one of my own clients lost three deals in a row to cash buyers because his banks slowed down mid-funding. If you rely on traditional money, you're rolling the dice. Real estate works if you play the real game. Most people are stuck, chasing approvals, stacking paperwork, praying money shows before the window closes. And here's the reality. Bond markets are like the ocean. Banks are fish. When the tide-fed liquidity leaves, stranded fish die first. That's why we saw

regional banks collapse. What this means for your deals? When banks are struggling to survive, your loan application isn't their priority. Their survival is. It's not 2012, not even 2020. Banks are scared. Credit is drying up. And here's the math that kills deals. I have half a percent rate hike equals $180 billion in new interest costs for the government. And when the government pays more for money, everyone pays more for money. The Fed can't unload at $6.7 trillion in mortgage bonds without crashing the housing market. And that means they're trapped. They can't raise rates without destroying real estate, but they can't lower them without destroying the dollar. And even if you're doing creative deals, sub two seller financing, all the stuff we love here so much,

It's the gap funding, the rehab cash, the marketing costs, and the speed that separates the pros from the stuck. Feel the game's rigged? Yeah, you're right. It kind of is. But here's what most people miss. The game changed, but it didn't end. You just need to know the new rules. Is the problem real estate?

Or the way you've been told to fund it? What if the choke point isn't the market? It's the kind of money you're chasing. Stop begging banks. Follow the smart money, the ones who moved first. I mean, think about it. While you're waiting for bank approval, someone with private funding is closing your deal. If you had that type of funding, would you still be watching deals slip away? Or would you be scaling while others wait for approval? Insiders know this. Private credit jumped to $1.5 trillion. Morgan Stanley says it'll be $2.6 trillion by 2009. And here's what that means. While banks got scared and pulled back, private lenders stepped in with $1.5 trillion bucks. They're funding the deals.

banks won't touch. The smart money didn't wait for banks. They built their own system. The ones who plugged in, they thrive when markets shift. And in 60 seconds, I'll show you exactly how to tap into this. But first, you need to understand why banks can't compete anymore. They're regulated to death. Every loan they make, they have to set aside cash reserves. When rates go up, they lose money on their old loans. When the Fed pulls money out, they have less to lend. But private credit, no reserves required. No old loans dragging them down. No Fed dependents. They can move fast,

lend on deals banks won't touch, and fund the whole project, not just the purchase price. That's why Leonard's Bank said purchase only, while private credit said, here's everything you need. You don't have to play the old lending game. This isn't a secret.

It's the new institutional normal. Billion dollar deals use private credit, and it's open to you if you're moving fast. So now you know the rich used debt to build unlimited wealth. And you know why banks can't help you do it anymore? Or not like they used to. Well, great, I'm screwed.

How am I supposed to borrow like the rich if banks won't lend? I get it. But here's what most people don't realize. Banks are just a small part of a borrowing like the rich strategy. The wealthy stopped relying on banks years ago and moved to private funding sources most people have never even heard of. Now, putting together the epic funding playbook that breaks down the three types of debt every real estate investor uses. And you can grab that in the description if you want to

dive deeper into those strategies. But right now, I want to show you a completely different approach that doesn't even require private lenders. This is one the wealthy use all the time, but most people don't even know it exists. Hey, this house right here is now mine, and I used OPM, that's other people's money to buy it, and I've got no payments on it either. But how? I changed one small thing in the no payments method was born. Listen to enough, if you're serious about investing in real estate, you need to know about what's possible when it comes to seller financing. Working with banks, it takes too long, the rules are strict, you need a job, you need a credit score, you need money, and it's just so much harder than it has to be. You've got faster and easier option. For example,

I'll show you how I structured this seller finance deal right here with zero payments. Sit, hey, yeah, you ready? Let's go. What's up? It's Matt at Epic. And if you're new, here, glad you found me. If not, great to see you again. Best waste, no time. This creative financing technique, seller financing, requires no credit check, no appraisal, and no expensive lending fees either. And I'll guide you through, one, how I introduce seller financing to a seller so that they're more receptive to it. And two, how I structure the paperwork. And three, I'll walk you through step by step what I just did to get this deal seller financed with zero payments. And stay tuned until the end and I'll give you a copy of the terms that I use most of the time, the clauses for my

contract, and some nice deal structured templates to help you get started too. All right, seller financing, it's my secret sauce, but it wasn't always. Initially, I didn't know what it was, and then when I learned what it was, I still didn't know how to do it. And then I had all these other fears in my head of all the worst-case scenarios, the legalities and the legal jargon, and then mostly the fear of a seller laughing me out of the room for just suggesting it, because I just couldn't wrap my brain around why a seller would give me financing. But fast forward, I've got easy fixes for all of these now, and I'll address them all for you as soon as you click the like button. Before I walk you through the how, let's quickly answer the what. Seller financing, it's a type of real estate agreement that

allows the buyer to pay the seller in installments over time rather than using a traditional mortgage from a bank. Seller financing is like a bank loan, except that it just cuts the bank. out of the loan and allows the seller to own, oversee, and benefit from the debt. Now, you may be thinking, Matt, didn't you just say you bought this property without having to make payments? I mean, how does that work? Well, good question. I'm going to show you how work. And know that you can do it too, as long as you have these three things working for you. The first thing that you need is an understanding of the relationship between price and terms. The second thing is you need a motivated seller.

And three, you need a good presentation. So I'm going to cover all three of those. First, the price in terms of a real estate sale, it works like this. This is the deal dynamics axis. The vertical line represents the price that I pay, and the horizontal line represents how or how long I take to pay the price. If the seller wants their money now, like ASAP, controlling the time of when they get their money,

I take control of how much money they're going to get. So fast cash for the seller means low price for me, right here on the axis. Cellar says, no way, Jose, I need a higher price. Then I need a longer time to pay the price. That's the exchange, the relationship between price and terms. It's a give and take thing. And as long as you're taking control of one or the other, the price or the terms, you've got yourself a deal.

For example, on this property, the seller wanted full price way up here. So, no problem. I'm going to take control of how and how long I'm going to take to pay the seller. price. And that's the beauty of creative financing because how I pay the seller's price has an unlimited number of possibilities, as you can see here. These are just some of my options, by the way, and when you start combining them, the sky is the limit. It's by combining them that you accidentally create something called the no payment method. Now, I've done something like this before. Most of the time I do this in one of two ways by deferring. That's a postponement of an action

or an event, like deferring interest or profit, or in this case, payments. Typically, interest doesn't accrue during a deferral. The second way is via a moratorium, which is an authorized period of delay in the performance of a legal obligation or the payment of the debt. Interest generally does accrue during a moratorium period. But there's now, for me, this third way that I want to tell you about that's so much better, especially if you like cash flow. So here's the deal. I pulled a highly targeted list from deal engineer in St. Louis of vacant houses with a probate lien and delinquent tax activity, and then I cut the size of the list in half, using their AI predictive analytics, their artificial intelligence, to just 50 houses of a small list,

and then I put them in my seller-sniper campaign. Now, there's this lady, Cora, a widowed retiree in her mid-60s, she was struggling to sell her rental property. We've got a symptom of a motivated seller. We need that for this to work, right? Cora had initially hoped to sell her property for top dollar like all sellers do, but after a few months, realized that the house's condition it was driving by our away. They were passing on her. She didn't want to deal with or pay for a full-scale renovation,

though. It was becoming now a financial burden for her, but a memful one more so, because she had just sold her home and was leasing it back temporarily from the new owner while she tried to sell this rental property. Cora had the plan to sell her to St. Louis properties in order to downsize to a smaller, more manageable place closer to her daughter in Texas. And this is when she called meek. But because of the condition of the property, I couldn't give her the price that she wanted. She was at $174,000, and I was more like $85,000. The property, it needed serious work to get it to its full market value of $200,000. And once it was clear that she wasn't budging from her price, I had said, like I always do when this happens, reluctantly, of course.

And this is the good presentation needed. It's so simple a fifth grader could understand it. It's like this, I said, Cora, you know, the market may allow me to get closer to your price if you're willing to take some money now and the rest later. How much do you need right now? You see, I just asked her for seller financing without saying seller financing or using any other industry or legal jargon. You know, if I confuse them, I lose them. So I keep it super simple. So Cora and I, we went back and forth a bit and she said, I need at least $75,000. So I was like, eesh, because that's like more than 40% down. I was like, well, okay, that's much more than

I normally put down, but if I could get that for you, could I break up the balance into 300 equal monthly payments? See, that would have been like 330 bucks a month, and the market rent for the house is $1,400. So that's a pretty strong cash flow. But because she wants so much money down, it's just a hair over an 8% cash on cash return, which it doesn't suck, but it's not great. She did some quick figuring, and she was like, I'll be bed before you pay that off. And that's definitely not the first time that I ever heard that. And so I asked, how many payments would be acceptable? And she came back with 100 payments, which takes me up to $990 per month, payable to her. And that pushes the cash flow and ROI into negative territory. So that's a no go for me.

I said, Cora, I like the house and I could put some money down, but probably not more than 10%. So at $174,000, that would be $17,400. And she wasn't cool with that. She needed that $75,000. to bridge the gap between what she sold her house for and what she's buying the new one in Texas for. So here's what I proposed. Cora, I can't give you more than 10% down because I need my cash for other deals. But let's say that I agreed to the monthly payments of $990, and I went and borrowed the money for that to pay you the first five years in advance. That would give you $59,400 in upfront payments plus the $17,400 down payment for a total of

$76,800 a code. And then after five years, I'll send you $9.90 every month until paid and full. And that way, we can both get what we want. But in order for me to get that loan, my lender would need to be in first position. Would you be open to that? Now, she didn't really know what that meant, so I had to explain it to her. And I explained it like this. When a bank loans money to someone to buy a house, and we use this one as an example,

at $174,000, that loan, let's say it's 80% would be $139.9. $9,200, that gets recorded against the property as a security to the bank. Now, if the borrower fails to make their payments, the bank can foreclose and sell the property, usually at auction, to get their money back. That's how banks are protected, and you are protected in the exact same way. But when there are two loans on a property, whichever loan is recorded first against the property is considered to be in first position, which has a higher level of protection in the event of the default. It's like this. If there were a second loan used for the difference, 34,800, that loan would be in second position because it was recorded at a later date and time. That's how

the positioning is determined. And the positioning is really important because it determines the loan's priority in terms of repayment and their rights against the property. And here's how that works. If the property were to go up for sale at a foreclosure auction because the borrower stopped paying and it was to only sell for, say, $150,000, the first position loan gets paid first, or whatever is left over, $10,800, will go to the loan in the second position, which in this scenario isn't enough to cover the second loan.

So the second position lender loses $24,000 in this example, because they had a lower priority. Being in second position, it's riskier. And she understood that. Being in second position, it can be a real disadvantage under normal circumstances, but not necessarily when you're in second position to yourself. So I drew out what it would look like in our deals.

I'm buying the property from Cora for $174,000. My lender will give me $76,800 to give to Cora, and he'll be recorded in first position. Cora will then carry back a second loan for me of 97,200. That'll be recorded in second position, where I'll also give that money to Cora. You see, Cora is the beneficiary of all the money in first position and second position. She's in second position to herself.

So if the property drops below the market value or the loan amount, it's not a total loss. Likely, not a loss at all. Cora can take the property back, keep all the money that she had received since the time of the sale, including the upgrades that I had made to the house, and then she'd have the opportunity to sell it all over again, making a boatload of money. Now, yes, it would be an inconvenience for her. her maybe. That would be like the worst case scenario, but it would be a huge windfall for her at best. Being in second position is definitely a risky place to be when it comes to a loan other than yours.

But when you are in second position to yourself, not so much. And the relief, it was palpable in her voice when she agreed to move forward. For her, it wasn't just about the money, not too much about the money at all at this point. It was about having the freedom to move on to the next chapter of her life. So with creative financing, this new no payments method, I met, is to turn a roadblock into a win-win for both parties. So this is how it was written on the contract. Purchase price, $174,000. Terms of purchase, buyer to pay seller $17,400 as a down payment. Seller agrees to carry back the balance of financing for the buyer at $990 per month until paid in full. Buyer agrees to pay the first 60 payments in advance. $59,400 do a closing. Just like that, simple,

Nothing fancy. So here we've got no banks involved, no credit check, no appraisal, no expensive lending fees, and no payments to the seller for five years. And now I do have a $396 payment to the lender that I borrowed the down payment from, but it's not $990, which allows me to comfortably cash flow $444 per month for the next five years. annually, that's $5,328 of passive income. And now what's my cash on cash return? Because at 8% anymore, Now, even seller financing, it can take some time to find those types of deals and negotiate them. But what if you need to move on a deal in days, not weeks? What if you could have funding ready before you even find the deal? Ever hear someone say, I have too much money? Me neither. Let's get you some more. Back to the show.

Within the next 12 months, we're going to monetize the asset side of the U.S. balance sheet for the American people. Your home equity. The safety net you thought was untouchable. They're already mapping out how to siphon it without ever calling it a tax. The Treasury Secretary just said it out loud. That's code for turning your assets into their revenue. And he gave himself 12 months. We're already halfway through. Let me show you exactly how it works. America's tab is out of control. Roughly $36 to $37 trillion in federal debt, projected to blow past $50 trillion within a decade. Social Security's main fund is set to hit the wall in 2003. That's about 96 months from now. When the math stops working, politicians don't cut. They look for new revenue quietly. And the biggest target in plain sight is sitting under your roof. The ICE mortgage monitor

shows mortgage holders with about 17.6 to 17.8 trillion in home equity. And the paid off homes and total homeowner equity pushes into the mid-30s, roughly 34 to 35 trillion. Tapable equity. What lenders say that you can pull while keeping 20% sits around $11.5 trillion. Two-thirds of that belongs to people with 760 plus credit scores. Translation, the easiest group to squeeze first. I do believe that there is discussion to leverage the asset side of the U.S. balance sheet in favor of a fund, whether it's a sovereign wealth fund, something, as you discuss, supplemental fund. So that is very much in the mix. We always look at the debt of the United States, and we have fantastic assets that could be earning leverage. averaged or used for multiple revenue-generating opportunities.

When they say monetize the balance sheet, they don't just mean buildings and land. They mean housing, mortgages, equity. Monetize, it's a plight word for extract value from you. Is it ever passed on? Have you ever heard of this tax money being collected and passed on to the consumer to pay? Have you ever heard of that? Well, the most recent studies from... Okay, let's go on to this point.

I have a better point. And when it goes into the coffers, that money is then going to be a part of the tax dollars that can be accorded to persons in terms of a tax cut. Is this true? It's part of the overall... Yes, it is true, which means that the consumer, the person who pays that tax, this tariff tax when he makes that purchase, is going to put his money in your coffer, our coffer,

And then the president later on can say, you got a tax cut, but it's really the money that the consumer has put into your coffer. That is true. I yield back. This isn't new thinking. It's been in the plan all along. Here's the playbook. And there are five steps to this. Step three is downright dirty.

And step five is going to let you know where your place in line falls. We've had lots of banks coming through. The president is very engaged with this. The housing market is obviously very important. in the U.S. Step one, the inflation tax you never voted for. Home prices drift up. Your county reassessment lags two to three years.

Then, wham, your bill catches up and jumps 50, even 100%. Property tax collections have already surged since 2019. Not because you got more services, because your paper gains got harvested. Nevada is even floating a constitutional reset to reprice its sale. That's a stealth tax bomb waiting to go off. Step 2. The Trojan Horse Revenue Fix. This isn't the old DC wealth tax talk. Under Trump Vance, the big tax cuts were extended, which punched a multi-trillion dollar hole in revenue. So instead of saying new taxes, they'll slip in resets, fees, and levies tied to property values. They'll brand it as affordability, fair share, or service modernization. Same skim, better optics. Step 3. Forced equity release, dressed up as, help. Reverse mortgages. They already exist. Now, the government backdoor, it just got wider. The FHFA approved a second lien pilot for Freddie Mac. Two point five billion dollar cap,

18 months. Maximum loan, $78,277. That lets new government-blessed second mortgages sit directly on your equity without touching your first. The Treasury Secretary called housing his big project for the fall. It's August. The timeline, it's live. Step 4. Turn housing gains into spending and skim the flow. The Fed's own research shows, rising home prices nudge people to spend a few cents more for every dollar of paper gain.

In the 2000s, equity withdrawals hit roughly $900 billion a year. Today, extraction is only about 0.42% of equity versus a long-run average near 0.92. That's a 500 billion-plus shortfall not coursing through the system. Washington sees that as lost velocity. The fix is obvious. Open the taps. Step 5. Regional beta tests.

They won't roll this all out everywhere at once. So watch Texas. Watch Florida. Watch Louisiana. Inventories building there. Prices are softening. And officials can sell emergency measures without really saying the quiet part out loud. If you live there, you're the test.

group. And if you think this is too dark, remember 2008, homeowners lost trillions on paper. GSE's got lifelines. Families got foreclosures. The pattern was set. Protect the system. Push the cost onto the household. The stock market is now down 21%. Because we're now down 43%. It was the worst day on Wall Street since the crash of 1987. Now they're circling back with a shinier label. How they'll sell it to you is They'll say, trade a tiny piece of your house's value and will erase some of your student loans. They'll say, we already sell special visas to bring in money, so why not use the sleeping money in your house too? They'll say, our efficiency office found savings. Unlock homeowner value.

That means take cash out of your home so the government doesn't have to cut its own spending. They'll say for climate and infrastructure, stronger roofs, safer power lines, better roads, be a good American, use your home. equity to help. Different words, same idea. Your house pays. Yeah, I think you are going to see, I know you're going to see over the coming months and quarters, this administration now that, you know, we're doing peace deals, trade deals, tax deals, we are really going to work on this housing affordability crisis. That's one of my big projects for the fall, along with several other branches of government. There's three ways that this plays out from here. One, we get a boom. Deals and rate tweaks, they juice activity.

The prices pop. Your assessment catches up and your fixed bills double while nothing in your life actually changed. Or two, an inflation grind. Numbers go up, your purchasing power goes down. You pay more on values that don't buy as much. The skim keeps skimming. Or three, the equity unlock wave. We got second liens, reverse mortgages, new help programs that quietly attach themselves to your deed.

The lean stack, it grows. And your cushion, it shrinks. Government wins first. The homeowner pays. So, let's flip the game. And this is how we do this. Step one, you fight the bill. If the county says your place is worth too much, appeal it.

Bring three cheaper recent sales, photos of real condition, and any repair bids. Plenty of appeals win. That lowers your bill this year and next. Step two, put shields on your home. File your homestead. Add every cap your state offers, you know, whether you're a senior. or a veteran or you're on disability or portability. Shields don't cut services.

They cap how fast taxes can climb. Step three, use debt that age as well. Only take long-term fixed-rate loans that are paid by rent checks. Rents can rise, and they typically do. But your payment doesn't. Inflation slowly shrinks the balance. Step four, line up money before you need it. Get options in place right now.

You know, seller finance, subject two, wraps, and a small 0% business line if you qualify. These are for maneuvering on deals, not for spending. Loophole lending.com, if you're curious. Step 5, buy for cash flow today. If it pays on day one, you're safe. Refies later, those are a bonus, not the plan. The bottom line, Treasury is showing you what to do.

It's the plan they're using to save themselves. You can use it too. You monetize assets. You focus on housing. The clock's taken. Either your equity becomes their fee. fix or you set up assets that make the system pay you instead. Do you want to call? See you next time. Take care.

And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. We didn't know home for us we got to dash low This podcast is a part of the C-suite radio network For more top business podcasts, visit c-sweetradio.com