Clayton Morris > Quotes

“Basic business accounting tells us that the purpose of an asset is to produce cash flow. The purpose of a liability is to buy an asset that produces cash flow. By that definition, your home is not an asset. “Oh but my home is appreciating in value,” you may say. To which we ask, “Can you pay your bills with that appreciation? Can you eat it? Do you plan to retire on that appreciation? What are you DOING with that appreciation?”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“When you amortize a loan, you pay for interest and principal inside of a recurring payment as you pay that loan down to $0.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“Appreciation is a concept you use to make yourself feel better about an expensive liability.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“The rich buy assets. The poor buy liabilities.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“If you have a liability for something that does not produce cash flow, you either sell that asset or pay off the liability.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“Also remember that the HELOC is paid back in simple interest rather than amortized interest.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“A Performing Asset is an asset that pays you every month like a business you own or invest in, or a piece of real estate that you can rent out. Wealthy people invest in Performing Assets for cash flow. The rest invest in liabilities for just the opposite. When all of your cash is sunk into a non-Performing Asset such as a mortgage, there is no wealth building. There is only treading water.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)

“your interest is based on what is left on that loan.”
― Clayton Morris, How To Pay Off Your Mortgage In Five Years: Slash your mortgage with a proven system the banks don't want you to know about (2019 Edition)