How I Use Credit Cards To Make Money With No Money

Summary

In this insightful video, Peace Family of Roundtree explains how leveraging credit cards and understanding different debt structures can be used to generate income without using personal funds. He distinguishes between unsecured debt, restructured debt, and structured debt, advocating for the strategic use of credit to make investments in real estate, businesses, or stocks. By utilizing credit wisely, one can access funds quickly, avoid taxes on the debt, and potentially create a positive return on investment, leading to wealth accumulation and generational prosperity.

Takeaways

• 💳 The speaker uses credit cards as a form of 'bank' to leverage debt for making money.
• 🏦 There are three types of debt structures: unsecured debt, restructured debt, and structured debt.
• 🚫 Unsecured debt, like mortgages and car loans, typically doesn't generate money.
• 📉 Restructured debt is associated with bankruptcy and is used to protect assets, not just for frivolous reasons.
• 📈 Structured debt is credit cards and lines of credit that can be used to make money through investments.
• 💼 The speaker emphasizes the importance of having a business entity, good credit, and being bank compliant to access credit.
• ⏱️ Using credit can provide quick access to funds compared to saving money, which can take years.
• 💰 The speaker advocates for using debt for investments rather than for everyday expenses.
• 🏠 An example given is using credit to cover the 'soft costs' of a real estate investment, like down payment and closing costs.
• 📊 The rental income from an investment property can cover the debt and provide a positive cash flow.
• 📈 Leveraging debt is a strategy for wealth building and can be applied across different investment scenarios.

Q & A

What is the main concept discussed in the video script?

The main concept discussed in the video script is leveraging credit cards and structured debt to make money without using one's own money.

What are the three different debt structures mentioned in the script?

The three different debt structures mentioned are unsecured debt, restructured debt, and structured debt.

Why does the speaker say that bankruptcy is not always bad?

The speaker suggests that bankruptcy is not always bad when it is used to protect assets and not filed for trivial reasons like a late credit card payment.

What is structured debt according to the speaker?

Structured debt, as per the speaker, is a type of debt that can be used to make money, such as using credit cards for investments that have the potential to generate income.

How does the speaker differentiate between using credit cards for everyday life versus for wealth-building?

The speaker differentiates by stating that most people use credit cards for everyday expenses like vacations and happy hours, whereas understanding how debt works allows one to use credit cards for investments that can generate income.

What is the difference between Person A and Person B in the script?

Person A leverages credit and debt to secure funding for investments, while Person B tries to save money for a down payment or to start a business, which is a slower and more traditional approach.

Why is having a good credit score important for Person A in the script?

Having a good credit score is important for Person A because it allows them to secure multiple lines of credit and credit cards, which can be used to invest in income-producing assets.

What is the advantage of using debt over saving money for investments according to the speaker?

The advantage of using debt over saving money for investments is that debt can be leveraged quickly to secure larger amounts of capital for investments, which can potentially generate income much faster than saving money.

How does the speaker suggest using the rental income from an investment property?

The speaker suggests that the rental income from an investment property can be used to cover the cost of the debt used for the down payment and other soft costs, and also provide a return on investment.

What is the importance of understanding the return on investment (ROI) when using debt for business or investments?

Understanding the ROI is crucial because it helps determine whether the income generated from the investment will be sufficient to cover the debt and provide a profit, ensuring a positive financial outcome.

What advice does the speaker give for those who want to learn more about credit optimization?

The speaker advises viewers to comment, share, follow, and check out other videos for more information. They can also reach out to the speaker's team or visit the link in the bio for a credit optimization program.

Outlines

00:00

💳 Leveraging Credit Cards for Investment

In this paragraph, the speaker introduces the concept of using credit cards to generate income rather than spending money. They explain the different types of debt: unsecured debt, which doesn't typically generate income (like mortgages and car loans); restructured debt, which might involve bankruptcy to protect assets; and structured debt, which can be used to make money. The speaker emphasizes the importance of understanding debt structures and leveraging credit to invest in income-generating opportunities without using personal savings. They contrast two individuals, one who builds credit and leverages debt for investment and another who saves for a down payment, highlighting the advantages of leveraging debt for faster wealth accumulation.

05:02

🏦 The Power of Structured Debt and Bank Compliance

The speaker elaborates on the benefits of structured debt and bank compliance, using the example of Person A who has no money but great credit and a compliant business. They explain how this person can quickly secure credit from multiple banks to invest in income-producing assets, such as real estate. The speaker details the process of using credit for down payments, closing costs, and other soft costs associated with purchasing an investment property. They highlight the importance of wealth-building strategies and how the rental income from the property can cover these costs, providing a net positive monthly return. The speaker also discusses the strategy's applicability to marketing campaigns and emphasizes the tax-free nature of leveraging debt for investment.

10:02

🚀 Scaling Wealth with Credit and Due Diligence

In the final paragraph, the speaker discusses scaling wealth by using credit to invest in multiple industries and assets, such as real estate, businesses, stocks, and crypto. They stress the importance of due diligence and consulting professionals before investing. The speaker shares their success in building a multi-million dollar real estate portfolio and several seven-figure businesses using credit without their own money. They encourage viewers to learn from the strategies shared, improve their credit, and apply these concepts to create generational wealth. The speaker also invites viewers to engage with their content and reach out for more information on credit optimization.

Keywords

💡Credit Cards

Credit cards are financial tools that allow cardholders to borrow money to make purchases and pay it back later, often with interest. In the video's context, the speaker uses credit cards as a means to generate income without using personal savings. The speaker refers to credit cards as part of their 'bank' and emphasizes using them for investments rather than everyday expenses.

💡Debt Structures

Debt structures refer to the different types of debt one can have. The video discusses three structures: unsecured debt (e.g., primary home, car), restructured debt (e.g., bankruptcy), and structured debt (leveraging credit for investments). The speaker explains that understanding these structures is crucial for using debt to make money, as opposed to letting it be a financial burden.

💡Structured Debt

Structured debt is a type of debt that can be leveraged to generate income. The speaker in the video explains that structured debt is used for investments that have the potential to yield returns, such as real estate or business ventures. It is contrasted with unsecured debt, which typically does not generate income.

💡Leverage

Leverage, in the context of finance, refers to using borrowed money to increase the potential return of an investment. The video's speaker advocates for leveraging credit cards and debt to invest in income-producing assets, which can then generate returns that cover the cost of the debt and provide profit.

💡Investment Property

An investment property is real estate acquired with the intention of generating income, typically through rental payments. The speaker uses the example of using credit to fund the down payment and closing costs of an investment property, which then provides a monthly income that can cover the debt and offer a profit.

💡Business Credit Cards

Business credit cards are credit cards designed for business use, offering various benefits such as rewards or cash back on business purchases. In the video, the speaker mentions using business credit cards as part of their financial strategy to build wealth without using personal funds.

💡Bank Compliance

Bank compliance refers to the adherence to the rules and regulations set by banks and financial institutions. The video speaker mentions being bank compliant as a key factor in being able to secure credit and leverage it for investments, emphasizing the importance of following banking regulations to access funds.

💡Tax-Free

In the context of the video, 'tax-free' refers to the fact that the money borrowed using credit cards and debt is not subject to income tax until it is used and the profits are realized. The speaker highlights this as an advantage of using debt to make money, as it allows for tax-deferred growth of investments.

💡Return on Investment (ROI)

Return on investment (ROI) is a metric used to evaluate the efficiency of an investment. The speaker discusses the importance of understanding ROI in the context of using debt for investments, as it helps determine whether the income generated from the investment will cover the cost of the debt and provide a profit.

💡Generational Wealth

Generational wealth refers to the accumulation of wealth that can be passed down through multiple generations of a family. The video's speaker discusses using credit and debt strategically to create wealth that can be inherited, emphasizing the long-term benefits of understanding and leveraging debt.

💡Credit Optimization Program

A credit optimization program is a service or set of strategies designed to improve an individual's credit score and financial standing. The speaker at the end of the video mentions such a program as a resource for viewers who wish to improve their credit in order to implement the wealth-building strategies discussed.

Highlights

Using credit cards to make money without having money is possible by understanding different debt structures.

There are three types of debt: unsecured, restructured, and structured debt, each with different implications for wealth creation.

Unsecured debt, such as a primary home or car, generally does not generate income.

Restructured debt is associated with bankruptcy and asset protection, not necessarily a negative thing.

Structured debt is the use of credit cards and lines of credit to invest and make money.

The speaker emphasizes the importance of leveraging debt, rather than personal savings, for investment opportunities.

Building credit and securing debt can be a faster path to wealth than saving money.

The contrast between person A, who uses debt for investment, and person B, who saves for investment, highlights different wealth-building strategies.

Using debt for investment can provide tax benefits and immediate access to funds, unlike savings.

The example of investing in a $100,000 property using only $25,000 of personal debt to cover soft costs illustrates leveraging.

Rental income from the property can cover the cost of debt and provide a positive cash flow.

Using debt for marketing campaigns can also be effective, as the return on investment can service the debt.

The importance of understanding the return on investment and multiplier effect when using debt for business growth.

The speaker shares personal success in building a multi-million dollar real estate portfolio using credit.

The power of structured debt and tax-free debt utilization are key to wealth creation.

The speaker advises consulting professionals and doing due diligence before implementing these strategies.

Improving credit and understanding credit optimization are essential for those looking to leverage debt for wealth creation.

Transcripts

peace family will roundtree here and

today i'm going to talk to you about how

i use credit cards to make money without

money

that's right you heard me correctly how

i use these

these are my credit cards this is

actually one of my books and i like to

call this my bank and in this bank are

nothing but credit cards from personal

credit cards to business credit cards to

credit cards for my business lines of

credit and etc because one of the things

that a lot of people have a hard time of

grasping the concept of as well how can

you take debt to make money most people

don't understand the different debt

structures that's right there's actually

three different debt structures you have

what's called unsecured debt this is

where you have debt that really pretty

much makes you no money this is your

primary home your car and different

things like that now those things can

make you money but for most people they

don't then you have what is called

restructured debt this is where someone

may have to file bankruptcy now i know

what you're thinking well bankruptcy is

bad bankruptcy is only bad when you're

filing it for no reason bankruptcy is

only bad when you're filing it for that

late credit card payment that's right

that actually happens bankruptcy is only

bad when you file it because you thought

you could bankrupt your student loan

debt no you can't i don't care what that

attorney told you he's just trying to

get the 1200 out of your pocket

restructured debt is when you're trying

to protect your assets and a lot of

times your assets is your income but how

debt or ie credit cards can make you

money is by understanding structured

debt me personally when i'm ready to

make an investment whether it's in

business whether it's in real estate

whether it's in stocks whether it's in

crypto anything that can potentially

make me money i'm going to use actual

debt see most people utilize credit

cards to go on vacations to go on trips

go to happy hour and basically just live

their everyday life but when you

understand how debt can actually make

you money without using any of your own

money out of your pocket or your bank

account you start to understand the

power of leveraging credit or leveraging

debt because most people don't

understand that concept they think they

have to save money now you can but i

teach a lot of the people who i work

with to utilize your cash for in case of

emergency brake glass type of situations

let's take two individuals one person

who has no money the other person who

has a good job and they're looking to

get into their first investment property

well both individuals are looking to

both invest in real estate take person a

and he's like you know what i'm gonna go

out there and i'm going to build up my

credit so we're going to build up that

person's credit we're going to help them

start set up a business and we're going

to go out there and secure them a bunch

of debts

that's right that can make you millions

and really that's i.e credit in the form

of personal credit cards business credit

cards business lines of credit

installment loans there's different

types of debt i.e credit that you can

leverage then you take the person b who

says you know what i'm gonna save

my down payment for my investment

property i'm going to save to start that

business so i'm going to save for

whatever their end goal is now here's

the difference with the person a versus

person b person a

here's some of the benefits of why

people like to use debt for one as long

as i have great credit i can show proof

of income i have my business entity

intact i'm bank compliant and all of the

other data points and metrics that is

needed to get approved from that

particular bank i can go to as many

banks in north america and apply for

credit i can get multiple approvals now

let's say that process takes me one week

to do because all of the other data

points are in place i'm able to get

fifty thousand dollars in a week how

long would it take person b

to be able to save fifty thousand

dollars for most individuals never in a

lifetime well let's take the average

person's salary average salary is

anywhere between thirty 35 000 and 55

000. after you add in expenses after you

add an inflation after you add in taxes

the average person doesn't even have

enough money left at the end of the

month to be able to save 50 000 then we

can take statistically that 55 percent

of african-american households have less

than 500 in savings so how is it even

applicable to save 50 000 person a

already has a head start because they

understand the power of debt now let's

just say you are able to save 50 000 in

a bank here's what's gonna happen

one how long can you even let 50 000 sit

in the bank it's like having that

hundred dollar bill in your pocket once

you break it for that that 25 cent gum

you're gonna just go through it and by

the time you get home you left the house

with a hundred but you come home with a

hundred pennies that's the exact same

thing that's gonna happen when you have

that 50 000 in your bank account you

start pinching off of it you start

living off of it let alone the bank fees

the transaction fees you can't even get

access to the 450 000 from the bank

without setting an appointment because

some banks don't even hold that much

cash on premises a ton of different

reasons why sometimes having 50 000 in a

bank it's not even applicable and you

don't truly have a 50 000 at the end of

the month just after the fees they

charge you for holding your money in

that bank going back to person a because

i'm able to use debt you don't pay taxes

on it as i mentioned in seven days i

went to several banks and i got 50 000

worth of credit and so now i don't pay

taxes on it secondly once i use it and

pay it back

that 50 000 is available again getting

into the actual topic of this video how

i use my credit cards to make money

without money see person a let's say

they had no money

but because they had great credit

because they had a business in place

because their business was bank

compliant because they met all of the

data point because they met all of the

business metrics to get approved because

they were personally mentored by me

i'm the king of understanding leveraging

credit they were able to go through the

cheat code or understand the cheat code

of how to get access to as i call it

credit or or debt to be able to invest

in that income producing asset fast

forwarding to understanding how i'm able

to build a multi-million dollar real

estate portfolio how i'm able to build

several seven-figure businesses uh all

with using my credit and never using a

dime of my own money so imagine

being able to have multiple entities

going to the bank and getting multiple

lines of credit multiple credit cards

and now being able to invest in a piece

of real estate invest in the business

and so let me give you an example so

let's say there's a property for a

hundred thousand dollars i'm going to go

and use my bank and pull what are called

the the soft cost so whether that's your

down payment your closing cost your

appraisal cost and etc typically with an

income producing investment property

you're going to need about 20 down for a

hundred thousand dollars then after

closing costs and inspection fees and

appraisal fees let's say you need about

25 000

on a hundred thousand dollar property

because again you need twenty percent

down and then of course your other cost

i have a line of credit or i have

several lines of credit that i'm

actually able to withdraw from so i'm

going to go and get that 25 000

now again

i'm pulling it from my credit i didn't

take it from my bank account let's say i

don't even have personal money in my

bank account so i'm going to take that

invest it into a property the bank is

going to cover the acquisition cost for

the other 80

but here's the thing and why people

don't understand wealth building

strategies

that 100 000 property is paying me

rental income every single month of a

thousand dollars that thousand dollars

is not only going to cover the cost of

the soft cost from the debt but it's

also going to cover the mortgage which

is also debt but then it's also giving

me a percentage or return on my money

every single month where i'm walking

away with 200 300 maybe 300 to 400 a

month so i'm actually net positive every

single month even though i use debt

and that strategy is applicable in

multiple different scenarios let's say

you're looking to grow your marketing

and you need to spend an average of

three thousand dollars per month your

average ticket price is let's say a

thousand dollars now a good marketing

campaign you want it to run at least 90

days so if we take three thousand

dollars over the course of 90 days which

is three months that is nine thousand

dollars you set aside that nine thousand

that you're taking from your debt which

is tax free and let's say that nine

thousand dollars cost you 150 a month

okay don't

quote me on the actual numbers i'm just

throwing some numbers out there but you

get the drift okay now your average

ticket price is a thousand dollars

it cost you 9 000 to ramp up for that 90

days

so now for every single client that you

convert out of that nine thousand

dollars from that 90 days of your

marketing campaign it's already service

to debt so now you only need nine

customers or nine products sold or nine

services sold that you sell to be able

to service that debt in full and now

that money replenishes and i may be a

brand new startup and have no money in

the bank so imagine

not having any money in the bank and

you're looking to be a new investor from

a real estate standpoint imagine having

little to no money in the bank and you

want to buy into a business that's

already making money

this is why wealthy people understand

the strategy or concept of leveraging

debt again which is tax free

to be able to invest and then be able to

understand once you know what your

return on investment for every dollar

you spend or what the multiplier is for

every dollar spent that makes it easier

for you to be able to ramp up and then

all you have to do is duplicate that

strategy multiple times in multiple

industries multiply the dollar amount

that you want to spend and as long as

you're getting a positive return on your

investment i'm going to use as much debt

as possible to grow my real estate

portfolio to grow my business to invest

in more companies to invest in

stocks or crypto or whatever is popular

at that particular time but more

importantly i'm gonna do my due

diligence before i do that and

definitely make sure i consult a

professional so hopefully you've learned

a strategy or two on how to take your

credit cards to make money without

having no money in the bank the power is

understanding structured debt the power

is understanding that debt is tax free

but more importantly you can take that

information and go out there and be able

to create a positive return on

investment thus truly creating

generational wealth so family i

appreciate you learning this information

and going on this journey with me if you

would like to know more please make sure

that you comment share that you follow

and make sure that you check out all my

other videos because if you're not in

position of having great credit to even

put these strategies into play you can

reach out to my team or see the link in

the bio to get more information about

improving and going through our credit

optimization program but until then i'll

see you at the top peace