Description: The article is about chase auto-servicing. The author gives us ideas on how to double a business on debt weapon. It is a growth strategies for credit, capital and cash flow. People will have the opportunity to achieve their life goals when they realize the benefits of using debt weapon.
I was back from Moab Utah. If you’ve never been there I must say it is stunning. Living the life of your dreams is what my article all about. Today’s conversation is extremely exciting. I didn’t plan on sharing this with you but I got off the phone with JP Morgan. But let me clarify it is not JP himself but Catherine with JP Morgan Chase Bank. Chase has some great news for me in that we have now locked down another debt weapon.
I want to share this with you because this story is worthy talking. This is going to be very useful for you as you grow your portfolio. Now to start things off,if you’re new to the article I want to tell you that we use tools that we call debt weapons to grow our cash flow. Virtually any tool that allows us to modify how we handle our finances in order to have more money left over at the end of every month. That is what we can call it a debt weapon. Today’s debt weapon is an unsecured business line of credit.
Now we got this $50,000 by putting in a lot of forethought and we’ve been planning it now for almost 15 months. Let’s walk you through that process. I think it’s going to be interesting for you to see how strategic we’ve been with this and why we now ended up with a tool that we expect it will make us millions of dollars. In December of 2000,we began to recognize that there was some success taking place with one of the projects that we had been working on.
We believed that with some attention such as making some investments into staff into some systems into technology,we would be able to to grow the the project and the results will be significantly. So we made nerve-wracking decision to invest around a $10,000 each month. Sometimes it was more and sometimes it was less. But it came out to about $120,000 over the course of 2017 into this project. We knew that we want to use debt weapons to do it.
The idea of using debt weapons to grow wealth is same to what you can learn through the philosophies taught by Robert Kiyosaki in the Rich Dad Poor Dad series. It is a belief that you can use these various tools to leverage yourself into a more efficient outcome. We like using other people’s money to create wealth. It creates a infinite return on investment when you do it that way.
When it’s not your own money but you’re creating huge growth then that ROI is considered infinite. Throughout the year we’re spending money and managing our cash flow,we’re borrowing through the debt weapons,we’re paying them off as we’re growing our income in a short period of time. In the summer,we stumbled into an opportunity to grow access to two new credit card accounts which would provide a 0% introductory period for a period of 15 months.
That sounded appealing. Now most of the 0% credit card accounts that are offered have a balance transfer fee associated with them. It can be as much as 5% most commonly it’s three. When we stumbled into these two accounts,one was a Bank of America credit card the other was a Barclays account,we realized that we could get these accounts with $0 balance transfer costs. It meant that we could take virtually the entire amount that was offered to us at the time when it was $35,000 and we could basically max these accounts out and it would be the same as getting free money. So we went ahead and did that.
Now making that decision took a lot of strategy. It took a lot of sets of eyes. It took mentors of mine to help make that decision because we knew it was going to be extremely costly from a credit scoring standpoint. And we got what we expected. Let’s take a look at a quick graph from my Credit Karma account. Credit Karma is a free service that provides you access to your credit data. They rely on what’s called the Vantage 3.0. Vantage score 3.0 formula is an algorithm that nobody cares about. 90% of banks will look at your FICO scores so your vantage score 3.0. in some ways is considered useless but it will at least give you an idea about where your scores are.
If we’re sitting with a vantage score of 817,that is what they would consider to be excellent. A FICO credit score is likely going to be excellent too. They’re not going to be so far different even if it was 50 points for instance. We’d still be at a 767 FICO credit score. When anything above a 740 and you will be considered as the best type of borrower that exists. You can see here based on the pattern of activity that back in August of 2017, the scores dropped by roughly 100 points by simply making that one decision to put the $35,000 on those.
For personal credit cards versus business credit cards,the business credit cards have provided me the same 0% benefit but for a shorter period of time. Although they don’t report to my personal credit report,I have a balance transfer fee associated with that. A 5% balance transfer fee on $35,000 will come out to over $1,700 which I am interested in avoiding. If we’re worried about our credit being optimized I can give you an example. I wasn’t using my credit for that five or six month period of time.
The strategy was to get this 50 thousand dollar business line of credit starting q1 of 2018 which meant I had five six seven months where I could take advantage of this great interest rate and basically free money. It is what we did. We allowed that payment to stay but remain at the minimum every month. We paid it off very slowly and then come to the December. As we were planning to get access to this new tool and wrap up our taxes for 2017,we went ahead and through the paycheck parking and cash flow stacking techniques we paid these two accounts off in full which is Zero.
Once they got paid in full,you can see according to the graph we’ve got a jump from even the February of 18-point. February 1st of 2018, the scores had increased back from a 702,in January to a 732 and then by February 8th one week later all the way back up to an 807. Today in March at an 817. This was all strategically done. We managed this proactively by this way.
We come into 2018 and walk into Chase Bank and we learn that they’re only willing to lend a hundred and ten thousand dollars total to the specific business. It meant that of 69 thousand dollars of credit cards we would only be able to access a $41,000 sum from the total of fifty thousand that they max out on this specific product. We didn’t want to shortchange ourselves nine thousand dollars if we could avoid it. So we made one quick phone call.
We huddled up and we created a game plan. After that call we had reduced our sixty nine thousand dollars worth of credit card availability through that business through chase down to sixty thousand. We called and made them reduce the limit on those accounts.
Now that wouldn’t be recommended because having access to more credit is always favorable. But having access to the best types of credit is even better. So instead of wasting availability on sixty nine thousand dollars worth of credit card limits that we don’t need,we’re all using maybe as much as fifteen thousand dollars of one of those credit cards at any given month and it’s getting paid to zero before the due date every single month. So there’s no purpose in having that large amount available to us. It would be better for us to have total liquidity through a different type of debt weapon account in this unsecured business line of credit account.
We go ahead and we reduce the availability on those credit cards and then we submit the application. I got my phone call. It’s been only one week since we have a firm clear to close. They mailing us over the forms and we’ll sign them send them back in. Next week we should have all the cash available to us,it means that for this particular type of account I can take all fifty thousand dollars and put it into a checking or savings account and that can use it for any reason at all. That transfer can happen instantaneously. I can go onto my mobile device and make the transfer myself at any point in time which means that if an opportunity comes up such as buying an inexpensive house,I could go out and buy a house with cash for fifty thousand dollars.
Another example is if I want to buy a two hundred and fifty thousand dollar investment property but I need 20% down,I have fifty thousand dollars available tonight or for instance I want to buy a hundred and fifty thousand dollar rental property and it needs $20,000 worth of work,I can take thirty thousand from the account to use as a downpayment and I still have twenty thousand dollars left over to make the repairs.
For instance that I have another opportunity to grow my business. Perhaps I can do that. My friend takes a look at these results. In the last year we managed to grow our business by a two hundred and six percent increase. This particular business where we were doing affiliate marketing and the one that we chose to invest one hundred and twenty thousand dollars into last year is now producing for us over a hundred thousand dollars each and every month. We’ve got a three hundred and two thousand dollar total revenue generated on this business of which has almost 75% profit. You can see here that’s in this year alone.
With a two hundred and six percent increase perhaps that $50,000 will give me the opportunity to do the same thing over again. In 2019 we’re seeing these numbers at twice and the size once again. Will I spend another hundred and twenty thousand dollars this year on people who know more things than me on technology who helps me streamline on products or systems or processes that will allow me to to implement something such as recreating the wheel so that I could earn six hundred thousand dollars in three months? I am sure I will. This is why debt weapons are so incredibly important. At this particular time that $50,000 has no purpose. It will sit and wait for a job.
We know that there are changes on the horizon. We know that the economy is going to fluctuate. We know that there will be many new opportunities that open up. So we’re not interested in sitting on the sidelines and not having access to the tools necessary to take advantage of that when it happens. That’s the purpose of this article.
If you’re new here my name is Matthew Pilum or I’m the president of a company that helps people one on one by coaching them on how to achieve these steps. it’s a slow gradual process. The first year of this specific business,we didn’t make any money. Are you committed to doing something for an entire year and not making any money so that you can eventually earn 1.2 even 1.3 million dollars a year？What if you could earn five million dollars a year？Will you be willing to commit a year upfront without making money？
Not everybody is. So this article is not going to be for everybody. If it’s not for you,that’s fine we will still wish you the best of success. But for those of you that like the idea of using other people’s money of optimizing your credit of being proactive about your decisions, then please consider do this.
We’re also going to do some upcoming articles that talk more in detail about these debt weapons for we’re doing here today and even beyond so that you can figure out how to not increase your cash flow exponentially but how to live your ideal lifestyle. I can go anywhere at any time and stay as long as I want. I can go with anyone I want. Most people don’t have that freedom so that’s why I can take off and I can go to Utah that’s why I can go to North Carolina next week.
Most of them are working while we’re there. We love to work. An interesting thing happens when you don’t need the money. You will fall in love with your work more than you ever have before. So I want to invite you to check out all the articles I have written. The debt weapons are the vehicles or the tools that we use to fast-track ourselves from point A and get to our desired destination of point B.
Make sure you’re seeing that math for yourself firsthand. As you may have picked up on in this conversation,there are a lot of ins and outs to every single decision that you’re making. By connecting all the necessary dots you’re always going to do better by having a qualified set of eyes from an expert. So make sure if you haven’t done,you can visit the description and schedule a free coaching session by clicking the link free. It’ll walk you through the two options that are available today in which you can take advantage of for a free coaching session.
I want to thank you in advance for your patience on those free coaching sessions as we are currently scheduling out a distance for six or seven months at this point into October. Whether you’re starting in October or you’re starting tomorrow is better than doing nothing. If you are anxious to get going and you don’t want to wait,then snag one of the QuickStart vacancies that we have. We only have a limited supply each week. When they’re gone,there is no way to fail with that. You can check out the information in the link,all of that will be available to you when prompted.
If you want us to continue to make more of these episodes regarding debt weapons and how they can serve you and you can get results by yourself. It takes time,it takes patience and it takes consistency. If you believe that you have all those things or you can have all those things with the coach standing next to you,then we can’t fail together. We are looking forward to be a part of your success.