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Cash Flow Dad Life

So the big question is this, what would you do if money didn’t matter? So you had millions in your bank account, what would you focus on? Would you spend more time with your family, with your wife, with your kids? Take family vacations.


Would you pursue your gifts and talents and dreams? Serve your local community, teach others, serve your church. You see if what you would do if money didn’t matter, it was pursuing your gifts and talents and dreams to serve others, and that is probably what you should be doing.


The problem is most people are in the rat race, living five inches in front of their face with no time to pursue what they were born to do. That is the problem, and the solution is to develop enough passive income to replace your working income so you can quit your job and be free to live your life the way you were created to.


That is a solution and this podcast will show you how…


What’s up guys? Welcome to another awesome episode of Cash Flow Dad Life I’m your host, Ryan ANC and today we’re going to be talking about an awesome, awesome strategy called debt hacking. With real estate is what I call dead hacking with real estate.


Now this, if you know anyone that’s in debt, if you’re in debt, share this episode with them because it will really help them put things into perspective…


So many people need to know this and so many people don’t know this. So if you get a lot of value out of this episode, please share it with someone else that can benefit from it. All right.


So just to tell you where my mind is, I was thinking about…just yesterday I had to go to this parent teacher conference and I was thinking in my head about how much bullcrap is out there as far as systems that we still subscribe to ways of life that we subscribe to, ways of thinking that we still subscribe to that just don’t make any sense.

Some of them never made sense in the first place and some of them definitely don’t make sense in this day and age and how I was thinking this because for some reason, for the past five years of my kids being at this school, which we love the school, by the way, I just don’t agree with the, uh, just just structural educational systems here in the United States.


But for some reason for the past five years I was able to weasel out of going to these parent teacher conferences. I’m not sure what I did in the past, but I’d like to review it and go back to it so I can implement that strategy again. But this year, uh, I ended up getting suckered into going into these parent teacher conferences, like [inaudible] with a bunch of kids.


It was a cup a couple of hours long and my wife told me, “You know, make sure that you understand everything that the teacher is saying…”

You know, a lot of people are taking notes and, and you know, just so you know, what the expectations are of the school year and what we have to do. And I’m sitting here and I see I go and sit in the back of the class and, and there’s parents in the front that have no pets and they’re taking vigorous notes, vigorous notes at this beginning of the year, parent teacher conference, and I’m listening to the first five minutes of this teacher and she is saying nothing that I would ever want to take a note a four.


did not pay attention education system bullcrap


And at that point I decided I’m not going to pay attention for the rest of the time. It was like the good old days back in grade school where if the first five minutes didn’t engage me, I was like, all right, if this doesn’t apply to me, 15 minutes from now doesn’t affect my life, I’m going to zone out and think about soccer or football or whatever else, you know.

So I can just tell you, and I’m not ashamed to say this, I didn’t pay attention at all during this parent teacher conference because I’m sitting here thinking if my son’s grade who’s in fifth grade or I’ve got one in second grade and I’ve got another one in seventh grade, if their grade and their success in life depends on me paying attention in a parent teacher conference and me taking notes in a parent teacher conference that there is something fundamentally flawed and something fundamentally wrong with the system and, and, and what’s worse than that.


And I know I’m the minority here. Maybe I’m not. Maybe you guys agree with me, but homework is absolute bullshit. Why do kids after six hours being in the classroom a day, why do they come home with more to do at home? What is the point of that?

I understand math. I understand you’ve got to practice math, but even then you could probably practice it in school to put in perspective. I took this class one time on creative financing. It was one hour and a half and this class, one hour and a half changed my life to where I could basically I learned a skill that would allow me to create wealth and create money at will and I’m going to show you guys just how powerful this is later on in this, uh, in this podcast, but that was one hour and a half.


Now our kids are in school and entire day for six hours, that’s 30 hours a week. You can’t tell me that you can’t teach that kid life changing a fundamentals in 30 hours per week and then they’ve got to come home and do it. I’m not a big fan of Finland or Iceland or Switzerland or wherever it is where I’m a big fan of their government system and their politics, but they do have something right with education…


I think it’s like the, the number one highest test scores in the world. They all speak like three different languages and they only have like 30 minutes to an hour of actual classroom time per day. The rest is on the playground playing and learning through playing and stuff like that. At any rate, that’s just a. that’s an irrelevant rant.


Where I’m going with this is we’ve got this system set up and it’s broken fundamentally in my opinion, um, where these kids are going to 30 hours of education per week and then after they’re done, after twelfth grade, we tell them, all right, if you really want to be successful in life, you’ve got to go to college and get a degree and this degree will get you a job that pays you.

Which isn’t entirely true. Right? So I got a degree. Mine was in theology and economics and I taught religion for a couple years and coached soccer and then I did nothing with the degree after that. My wife got a degree as a nurse, which was a good investment, but still what she was making, what I was making combined was just not enough to pay the bills.


So the average American and we were about average, but the average American graduates with about $30,000 of college debt, what that translates to is about $280 per month in monthly payments. So right out the gate when you’re starting in life, you’re starting at a disadvantage because not only do you have not a high paying job, you’ve got a lower under $50,000 job, but you’ve also got to spend a good chunk of that paying off that education, that debt.

And not only that, but the average American has about $15,000 of credit card debt. Now, a lot of people, you know, they’ll, they’ll talk bad about the American consumer and that you know, that they live beyond their means. That’s not entirely true and it wasn’t entirely true for my family and probably not your family either, but we.


We wouldn’t live beyond our means and we weren’t going out to these extravagant restaurants and whatnot. But at the end of the day, it used to be that one spouse could work and adequately provide for the family.


But now our debt structures are so high that you have to have two people providing for the family and even that isn’t enough. So sometimes you have to use credit card debt just to get by. We had to use it just to pay for gas and to pay the grocery bills and to um, and to pay medical bills for the kids.

So we had credit card debt as well. So all together you’re looking at if you only have college debt and credit card debt, and now there’s other debt as well that’s out there. You’re looking at the average American right out of college, paying $472 per month in debt. Now that may be up or down from where you are, but it’s about where we were. We were, uh, we were actually more like $500 per month just in paying down debt.


Okay…So there are two things you can do with this problem. And you could say, all right, this debt is a huge problem. What do I do? And you could go. What we did is I was just looking for different ways to get out of debt. I read Mary Hunt book is like that proof your marriage is really great book and then I got into Dave Ramsey about debt, but the problem was not that what they’re teaching is bad.

Actually. I really love both Mary and Dave Ramsey and how they teach about getting out of debt. The problem is if you’re only focused on getting out of debt, then you’re developing this scarcity mindset…


So I could, and in every marriage there’s a saber and there’s a spender that’s typically the way it is there. One of the spouse wants to save the money. The other is just spending edit an unstoppable force and unstoppable rate. And my wife was a spender and I was a saver and this was causing marital issues.


scarcity mindset

Because if she’s so much is bought M&M’s at the store for the kids, then I would go ballistic because we can afford that because we needed that extra $2 to put towards our debt to chunk that down and pay it off as soon as possible. And then I would, uh, take all of our stuff and I have these garage sales.

And what ended up happening is I realized that I was living in such a scarcity mindset where I was making my wife cut coupons where we always felt like what we had was never enough where I was selling our stuff in a garage sale and we were still poor.

We weren’t really accelerating this debt pay down…


So there is a, another alternative to this and that’s basically to raise your income level. And a lot of people are like, well, that requires me to work more. Well know you can actually debt hack with real estate. Basically, if you are able to acquire a cash flowing real estate asset, not only can you do it in a way that will cover your monthly debt, but you can do it in a way that grows your net worth every single month and provides you additional cash on top of that.

So in order to understand how that works, you need to understand the difference between good debt and bad debt. The problem is that a lot of people, because they have such pain in debt, they just think all debt equals bad. Well, really there’s, there’s bad debt, there’s neutral debt, and there’s good debt and obviously you want to be on the good debt side. Here’s an example of what bad debt is.


Bad debt is what poor people get…


They basically use a credit card to buy something that they don’t need because they don’t have the money for it and they just want it, in which case it makes their bank account go down. So for example, I had a buddy in college, they sent me a picture, a, it was like a group of buddies and this, this one buddy sent us a picture and he was like, “Hey, look at my new investment.”

It was a picture of a Samurai sword that he bought on Ebay with, uh, with his new credit card. And I was like, that is not an investment. That Samurai sword is not going to produce you any cash, right? Uh, that Samurai Sword, it costs you $300.


You didn’t have $300. So you put it on a credit card that’s going to cost you 15 percent interest, so you’re not only paying that $300, but you’re paying more than that because you’re paying the 15 percent interest on that credit card.


And so that is what poor people do is that they acquire unnecessary things and that makes their bank account go down and they use credit card debt in order to do that. That is how you get crushed by debt. There’s neutral debt as well.


Education is one of those things that’s neutral that it could be good or it could be bad if you invested in your college education and with that education you were able to make over six figures a year and pay that debt down really fast, like in the first year or this or the second year, then that is probably good debt.

But if you invested a lot of money in your college education, you’re doing nothing with your degree. Guess what? Now that is bad debt, okay? That’s something that you spent money on that you aren’t even using to get your, uh, to, to grow your bank account. Right? And so there’s a lot of courses out there, uh, in, in different site, especially in real estate where you can actually, uh, if you pay the money today, you will get that back in a month from now.


You know, that’s what that creative financing a course was for me when I first started with real estate and I took that one course, I immediately got that money back because that was a good investment. Okay, alright, so good debt is what rich people use. That’s basically where they use other people’s money.


You’ve heard of the term OPM and they get a regular loan structure where you’re paying every month a certain amount to pay the loan down in a certain amount to interest because the person who’s giving the loan wants to make the interest.

loan structure debtThat’s how they make their money. And you use that loan, that debt to buy real estate, a cash flowing asset. Now a cash flowing asset is something where after you’ve paid all the expenses, you’re actually making money and when you do that not only grows your net worth but it grows your bank account. So let me explain how it worked in my situation.


So I had, um, I had about $500 worth of debt that I was trying to pay down. That was between college debt and credit card debt. Instead of going the Dave Ramsey way and making my wife cut coupons and counting the amount of toilet paper that I did, I use to wipe to try to stretch everything that I have.


Instead of living that scarcity mindset, I could go out and say, all right, I’m going to create money out of nothing…

I’m going to create a cash flowing assets. So what I did is I lined up a credit lines and at the time I actually had a home equity line as well. And then I learned creative financing so I could. I learned how to make the owner of a house become the bank to me. So I didn’t need to go to the bank for the financing. So utilizing all of this together was other people’s money, right? I didn’t use any of my own cash.


And what I did is I went and found a piece of real estate that was undervalue. Well, after all was said and done, this piece of real estate costs $240,000. I bought it with other people’s money is really worth 265. But I got it at a deal. So it’s $240,000 and it cash flowed $750 a month.


All right, so if you can follow me on the math on this, that means that after I was done paying off other people, I was done paying down the loan after I was done with the insurance, after I was done paying the taxes and all the utilities and everything else, I was making $750 a month with this asset.

So $750 a month. I immediately took 500 of that and put it towards my, my debt. So now my monthly not only was my monthly debt covered, but I was making $250 a month. Now here’s where it gets incredible. This is why real estate, uh, creates so many millionaires and the difference between rich people and poor people is that rich people acquired debts and they get other people to pay them down.


And that is what a renter is called, someone who basically pays down your debt on something. So I had a renter in this first piece of real estate and every month that he would pay my, uh, he would pay the rent. My mortgage would. The first month I got paid down, let’s see, let me take out my amortization calculator.


The first month my mortgage got paid down by. Let me pull this up…

Okay. Got paid down by $346. So my net worth was growing that month. It grew by $346. So not only was I covering my debt of $500, but making $250 in cash flow that I could use to spend. But I also was making $346 in getting that loan paid down.


Now the way that alone works, a standard amortization is that you have a principal and you have interest. The principal is what the loan is being paid down on, and the interest is what the actual person giving the loan is making by lending you that money…


So the first month I was paying $346 in principle and $1,200 in interest. So if you can follow me on this every single month, your principal payment is what you’re paying per month is more. So every month your net worth is not only growing, but it grows by more. So, uh, just to give you an example of this loan, the first month of rent or paid 346 towards my net worth, the next month was 348.

The next month, 349. The next month, 351 a couple years from now, it’s going to be $710 per month. So that principal payment just keeps on increasing as the interest keeps on decreasing every single month. So after 25 years, this was a 25 year loan I had made over $525,000 plus the increased value of the house.


This house is now worth over $300,000 and I got it for 240. So just so we’re clear, not only did I not use any mime own money to buy this asset, but this asset completely a covered all of my monthly debts, but also gave me $250 a month, but also grew my net worth to over half a million dollars over the course of 25 years. Okay…


Plus it’s increased value. So that is why the world’s millionaires all own real estate because it really would only take me buying four of those cash flowing assets to after a for those cash flowing assets to become a millionaire after 20, 25 years.

There is no limitBut really it doesn’t even take as long as that. Once you know how to buy real estate with other people’s money, you can do it over and over and over and over again. There is no limit, so you can very quickly not only get out of debt, but use that debt and get renters to basically accelerate your net worth really fast.


Okay, so that’s it guys. I mean, and you compare that to a 401k…


You know, if you’re going to put $300 a month into a 401k at seven percent interest, which is standard after 25 years, you’re going to have $196,000. That’s how much your your net worth will have increased. But if you purchase a cash flowing asset and get other people to pay it down, your net worth is going to be over $525,000 plus whatever the increased value of the real estate is.

All right? So that just shows you how powerful real estate is. So hopefully you guys got a lot out of this. Not all debt is created equal. You have good debt and bad debt, but if you are able to use good debt to buy a cash flowing asset, that is the smartest thing you could do to get out of the rat race so that you don’t.


If you’ve got that right now and you’re wondering, do I pay this off or do I invest in real estate? You invest in real estate because not only will you grow your net worth and make a little extra money per month, but you can use some of that cash flow to cover all your other debt as well and pay it down.


So at the end of the day, I went from making my wife cut coupons, having marital arguments and fights. I’m talking, uh, you know, constantly trying to figure out, you know, things to sell around my house, to just being smart about it and without using any own money, acquiring an asset that paid off my monthly payments of debt and provided an extra cashflow and grew my net worth and my retirement at the same time.

And you guys can do the same thing to hope you found this helpful. Please share this episode for anybody who needs a or is struggling with that because this will definitely help them at least get their mind in the right direction of creating an abundance instead of scarcity and finding out ways to create income to pay off the debt instead of just cutting coupons every single month to live more scarcely.


Alright guys, take care.


Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode as soon as it comes out. It hasn’t been an idea or strategy that can literally change your life.


Listen, don’t miss out on the free investor pools that I have on my website So go to gets a free swag and lists and hit me up. If you want to talk about how we can get you out of the rat race as soon as possible. Until next time. My name is Ryan Enk and this was Cash Flow Dad Life!


  • Rochelle
    12:37 AM, 23 August 2018

    My husband just sent me a link to a podcast you were speaking on … We are very interested in your help. What specific steps do we take to replicate you success (or similar success)?

  • Rochelle
    12:38 AM, 23 August 2018

    My husband just sent me a link to a podcast you were speaking on … We are very interested in your help. What specific steps do we take to replicate you success (or similar success)?

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