Why paying off a mortgage was a MISTAKE! Today's Dion Talk

[@SilverStacker56]

I paid off my mortgage, and I love it! I sleep better at night and the grass below my feet just feels better knowing that I own.

[@DionTalkFinancialFreedom]

It’s a good feeling. But so are the benefits of another rental lol. Hard choice.

[@danielliao8729]

Thank you for being vulnerable and sharing your social history as well as your financial history to teach us lessons. I appreciate you trying help the rest of us learn from your hard knocks of life.

[@DionTalkFinancialFreedom]

Thank you so much. 😀

[@cityparkproperties7001]

Cash flow from rentals are like dividends but with tax advantages. The appreciation for me is icing on top of the cake.

[@DionTalkFinancialFreedom]

Totally agree 😀

[@laurasamaniego5937]

Thank you for sharing and the reminder. It is so easy to look back later and say " I should of". We need to remind ourselves that we did the best under the circumstances and with the knowledge that we had at the time.

[@DionTalkFinancialFreedom]

Thank you. Totally agree.

[@waynemiller6070]

Thanks for taking the time. And thanks for disclosing. I understand. I sleep pretty easily being debt-free, but I sure hate writing a check to the government. Lol

[@DionTalkFinancialFreedom]

Haha me too.

[@MaxPower72]

This is true for now and the past, but coming soon is a very real scenario when all "ownership" based on loans and credit will be seized. Choose wisely and owe nothing.

[@DionTalkFinancialFreedom]

When that happens we will have more to worry about than money.

[@justintylus4205]

“But not today” had me dying!

[@DionTalkFinancialFreedom]

🤣 thank you.

[@reza2251]

Financially perhaps it’s a mistake. But the freedom from the stress of payments must be amazing! 🎉

[@DionTalkFinancialFreedom]

Totally agree.

[@Derekhedgespeth]

Enjoy your cruise! We paid cash for our most recent rental purchase and I go back and forth as to if we made the right choice. Our cash flow is definitely higher and it’s a good feeling knowing I have several options to pull money from it should something catastrophic happen. Thanks for all you do Dion!

[@DionTalkFinancialFreedom]

Good perspective 😀

[@hustlenation4779]

great perspective so true !!! paid off is nice and buying another to cashflow is much nicer !!!

[@DionTalkFinancialFreedom]

Haha. Totally agree 😀

[@Hankpatriot]

Great perspective Dion, I think you just helped me decide to not pay extra towards equity on one of my properties.

[@DionTalkFinancialFreedom]

Thank you so much. 😀

[@Emmanuel-so9eo]

Thanks for answering my question Dion!

[@DionTalkFinancialFreedom]

Thank you so much for asking it. 😀. I hope the answer helped.

[@brookenigh]

I like your perspective. I also like the perspective of the folks in the comments who enjoy their financial freedom from paying off their mortgages. It's like you said; there's really no 'wrong' way to do it so long as the needle on financial independence keeps moving in the forward direction. Great video! New sub and I'm enjoying your content. :)

[@DionTalkFinancialFreedom]

Totally agree. You’ll hear me say this often: “It’s important you choose a strategy that excites you. We are more likely to stick to a plan we are emotionally invested in.” Could be stocks. Growing a business or real estate. The core principles are similar. Spend less than we make. Save and invest the difference.

[@jod5834]

have fun on the trip!

[@DionTalkFinancialFreedom]

So far tons of fun. 😀

[@buzztune-ft6lc]

Thanks Dion! Hope you’re having a great time! Buying down the rate. I’m glad you talked about it. It’s a must have conversation now when shopping. Especially with the buy n hold strategy.

[@DionTalkFinancialFreedom]

Thank you. 😀

[@acer4237]

Living debt free no regret !!

[@DionTalkFinancialFreedom]

Love it.

[@briankeith1007]

Hello Dion!!

[@DionTalkFinancialFreedom]

Howdy. 😀

[@billoconnell6464]

thank you

[@DionTalkFinancialFreedom]

Thank you. 😀

[@hustlenation4779]

it does not suck !!!!

[@DionTalkFinancialFreedom]

So true. 😀

[@donaldricher8815]

How about using a HELOC using simple interest to pay off a mortgage which is amoritized and then use it for investments.

[@DionTalkFinancialFreedom]

Heloc has adjustable rate. Can you pay it off before the rate changes? Can you me dti handle the heloc payment and the rental purchase? Are you ok with the heloc lowering cash flow on the asset it’s on? This is why I’ve never taken out a heloc.

[@donaldricher8815]

@DionTalkFinancialFreedom I would use HELOC as checking account and deposit my military retirement and current pay into it and pay bills and keep repeating this until HELOC is paid off as HELOC would pay off current mortgage. I have about 4K cash flow every month to pay down principle. Can pay off home in 5 years or less. Thoughts.

[@edz1564]

Thanks!

[@DionTalkFinancialFreedom]

You’re too awesome. Thank you.

[@fpm8338]

I see where you’re coming from. Would you advise against making an additional payment per year on your mortgage to curtail the length of the mortgage? I’m still in acquiring phase so I’d like to get some more rentals. Thank you.

[@DionTalkFinancialFreedom]

Depends on your goal. Want it paid off early? I prefer to invest in the next rental. I would do 1000 year mortgages if I could. Having a paid off mortgage doesn’t benefit me. But it does help people who don’t invest.

[@fpm8338]

@@DionTalkFinancialFreedom thank you! Do you have a copy of your lease that I can see? I would be happy to pay for it as well. Thanks in advance!

[@wilsonrealty1]

I’m so bipolar on the issue of paying down/off real estate debt or not. Its like having Dave Ramsey on one shoulder whispering in my ear and Robert Kiyosaki on the other.

[@DionTalkFinancialFreedom]

Exactly. Totally agree

[@dougkratz5269]

Dion is their lovechild😂😂😂😂

[@hotelcalifornia715]

@Diontalks still can't understand how many multiplexes (duplex/triplex) one needs to buy and rent to make 200k income a year. Atleast 20 homes that bring a min.$1000 rent even with all the costs such as repair, maintenance, insurance, property taxes, vacancies etc.

[@DionTalkFinancialFreedom]

With 16 units I had 17k a month in cash flow (profit) Here is why: kzbin.info/www/bejne/emrSoJ-Dg7CokLcsi=aD4bwagleyYjZfs6

[@calvin.miller]

There is another benefit to paying off a property........ if you have a property that is completely paid for, and you went and got a mortgage on it again for let's say, 200k. You get to put all that cash in the bank completely tax free because we don't pay taxes on borrowed money. Also, the payment on 200k is reasonable enough to get good cash flow when renting out the property, and the tenants begin paying down the mortgage..... 200k cash in the bank. All tax free. Extra cash flow, and someone else is paying for all of it. It's a triple win! Lol

[@DionTalkFinancialFreedom]

This is true of your “equity position” and doesn’t require it being paid off. And you paid taxes on the money you used to pay it down. So it really isn’t a benefit. When you buy more rentals. They appreciate at 4 times what you invested. Giving you much more you can borrow.

[@eugenberzani1216]

Are you back in europe? :)

[@DionTalkFinancialFreedom]

In Istanbul today.

[@eugenberzani1216]

If you have a trip planned for near Belgium, let me know. Perhaps I can drive and meet you. @@DionTalkFinancialFreedom

[@betitos11]

This plan only works until tenants stop paying, file for bk and you cant evict them for six months

[@porcudracului]

Exactly. That's exactly what these people don't get. Huge exposure to huge risks. Especially these days

[@DionTalkFinancialFreedom]

Not having a mortgage doesn’t help that. Try not paying your taxes. More rentals means more cash flow.

[@DionTalkFinancialFreedom]

Save by for years or paying off the debt doesn’t make you any safer.

[@betitos11]

@@DionTalkFinancialFreedom - Of course paying off debt is less risk. If a tenant doesnt pay you dont have a mortgage to worry about.

[@JamieOBrien-bc6ov]

So basically to be financially stable you need to pass your problems onto other people, seems like everything in this country is a scam

[@DionTalkFinancialFreedom]

I feel your pain. I know you want to insult people. But maybe you can learn something. Capitalism isn’t going anywhere. You can keep bitching or you can get good. Name the thing that someone else worked for, took the risk to buy, maintains. That you expect to get for free?

[@robtoyer6188]

Oh come on devil dog you don’t want to fund a war in Ukraine with our hard working tax dollars?! 😂😂

[@DionTalkFinancialFreedom]

Hahaha. Hmmmm lemme think about it. 🤣