Using Credit Cards to Fund Real Estate Deals (The BRRRR Strategy)

0:03 Can you explain to the listeners what the birth strategy is? Yeah, of course. So the birth strategy, it's B and then four Rs. The acronym basically just stands for a value add proposition to your real estate. So it's buy, renovate, rent, refinance, repeat. So the whole goal is kind of like a fix and flip, except instead of selling it for a one time profit, you're actually just taking it back to the bank with that new value and refinancing, getting all your money back and then paying off the credit cards that what we use, right? Or private money loans or your own capital that you put into it, paying that off and then repeat the process. So you have a small mortgage on it, but a cash flows brings in more than that per month. So explain the utilization of credit cards, because credit cards are a fascinating thing that can go very, very wrong. Sure if.

0:56 Utilized improperly. Yeah, unfortunately they're not teaching it in school. So I figured if it was up to me type of approach and I had to figure out how to utilize this credit to be able to get credit cards, liquidate it in the cash and then actually use it for real estate. But intelligently have it have backup plans. And I was very cheap for the longest time, so I was desperately looking for those 0% interest introductories so that I could take advantage of it and not pay a premium. Wow. OK. So the strategy is to get a 0% APR credit card with a high limit. And So what do you do from there? So at Credit Counsel Elite, we teach business owners nationwide how to be able to get up to $500,000 in new capital. And in many cases it's 0% interest, as low as 0% interest. This is 234 or even $500,000.

1:55 We've had people get $600,000 and you could do this every six months. The 0% interest is anywhere from six months to 24 months, but on average typically it's about 18 months. So every six months you have the ability to go out there and get more funding. But you know these are opportunities that you get this new capital 0% interest and then you can put it to work in your own business, grow, scale or diversify. We're doing a fix and flip right now like couple houses down the street. I was just visiting and it's going to take 9 days to be able to complete within 90 days. If I have a 0% interest credit card similar to these that I could actually just liquidate and I have 0% interest for 18 months. That gives me a lot of time with a lot of backup plans that I can knockout in that 90 days to remodel, get great return and then do it again.

2:50 How do you mitigate your risk when doing this? Yeah. So I don't look at it as a risk. When you get properly educated on the actual difference between good debt and bad debt, I rather borrow from myself, from the banks, from my credit, versus borrowing from grandma or raising hard money like good money from people that work their butt off for it. You know that to me that sounds risky. But again, people do it all the time and I do it as well. As a real estate investor, it's very common to raise capital. I've raised millions. It comes down to looking at the deal itself and, and having backup plans, having like I only go after real estate deals that I'm, you know, it would be a very, it would be catastrophic if something happened that I didn't make a quarter million off of it. So this deal in particular a lot of upside will probably make at least half a million off of it.

3:49 Our last one that we did, we netted $475,000. So I don't do this all the time. I cherry pick one or two of these deals throughout the year that are going to be just a home run. Yeah, I think in real estate, people think finding that deal is easy. I don't think people realize how much work and effort it takes to find that killer deal. You're probably underwriting dozens, if not more hundreds of properties to find the deal that pencils properly for your strategy. So for me personally, I would say yes and no. I worked hard to get to where I'm at, but I also understand I do have a lot of favor in my life where I live in California.

4:34 I don't think making a half, $1,000,000 on a deal would necessarily work in some other parts of the country. I do pay higher taxes over here. I have a crazy political stuff over here. We have some other wild things going on. So you know, pros and cons. But within this area that I live, I do have the opportunity that if I can get a off market deal and it really just comes down to my brand, like the deals that I get it, it kind of like people brought them to me because they know what I do. I've build up my personal brand and so people are sending me opportunities regularly and then I just cherry pick like this was an off market deal. Same thing with the one previously. I know what it takes to close a deal and get the the seller on my side.

5:22 So how did you build your personal brand up? Yeah, I think consistency is really the name of the game on social media. It's one of those things like I'm not a huge fan of social media at all. But then again, it's a love hate relationship because I get a lot of money from social media. I get the exposure needed to be impactful and I get a lot of fulfillment by having that opportunity to bless other people with the knowledge that I have now. But what I would say is there's a lot of nasty stuff on social media. There's a lot of hate. You know, everybody's shouting out scam or not getting therapy like they need and they they jump on social media and do it there. But what it, what it has taken is really just being like showing up, being consistent and doing it regularly.

6:05 People will naturally give you respect. And then if you can get in front of a million people at which we pay ads, you know, I pay $50,000 a month on ads and so forth. I speak on stages. We have a book podcast ourselves, things like that. Over time, I've been doing this for 10 plus years, But over time it adds value. And when you get in front of a million people, for example, say 100,000 of that million actually likes you, you know, you get a a million to know you 100,000 that like you. And then you get 10,000 out of that that actually trust you. Now you got 10,000 people that are willing to pay you money for whatever your services are. And so that know like and trust factor, it really does people give it to you over time, people are naturally just going to like you or or not, and that's just what it is. But you got to, you got to give them that opportunity by showing up, being consistent and doing the things that most other people will make excuses for.

7:03 Yeah, I like to draw a parallel between creating a brand and real estate in that they're both long games, and it's that consistency over a long period of time is when you can extract the most value. But this isn't rocket science. That's literally how to build a business, how to become successful, how to build wealth. It's the same play, yeah. Just. A different field. And so many of us, unfortunately, we get spoiled or like we have that millennial mentality and it's like we want something yesterday or we're looking on social media and we see somebody just made all this success.

7:43 It's like as if it's overnight. If you are just starting to follow me today, trust me, it might look like an overnight success, which looks cool, but I've been doing this for a very long time and there was nothing easy about it so. So tell me about Credit Council Elite, what it is, what it looks like. Yeah, yeah, and some. Yeah. The the best thing that I could explain is it's really the financial literacy that our school system should have been teaching for a very long time. We teach basically how the banks and lenders are judging you so you know how to play the game. At the end of the day, we are literally teaching business owners nationwide how to be able to flip the script on the banks and get massive amounts of funding, 234, even $500,000 every six months at within 30 to 90 days you can implement these strategies.

8:32 And so we want to get people the 90% approval odds and actually the highest limits with the best terms and conditions possible. I could talk all day about how ridiculous it is that the school systems don't teach financial literacy, but I would bore everybody because we all know it's. We all know. We all know. It's a broken system. It takes somebody to step up and actually put that stuff into place. And so I'm very blessed. Like I look at flipping the script on the banks. It just like this. At the end of the day, we we give all of our money to the banks, right? We have all of our money there. They give us .00% back, literally nothing basically.

9:16 And then they put it to work 9 times over and they're averaging anywhere from 500 to 3000%. This is what people don't realize. And because they're lending it out back to us and other individuals on personal loans, auto loans, mortgages, credit cards, they get a huge ROI off this stuff. And so I look at it is it's time to flip the script on the banks. Let's get the OPM, other people's money from the banks at 0% interest for 1824 months and let's put it to work and make those infinite returns just like they do. It's like the banks take advantage of us. You can educate yourself and work the system in the same way that they, yeah, just work society. They've already.

10:02 Interesting. They've already given us the road map. It's what they do. Wow, they've. Already given us the road map, we just need to acknowledge that is the road map. And then how do we flip the script? How do we start taking small little chunks of that and doing it to our ourselves and giving us the alley oop? And so this has allowed me to start and scale multiple businesses and to be able to really make the impact that I have, but also get the financial freedom that I've always desired and then be able to buy homes for my family members and like really start setting up ourselves for generational wealth. Unlocking literally the door to real estate is very, very, very impactful and very powerful when it comes to creating legacy, like you said, generational wealth and financial freedom.