BYOB (Be Your Own Bank)


As part of our acquisition program, students have to “get ready” to acquire and finance real estate. This means getting a great credit score and developing a balance sheet. You need both in order to finance (larger) investment properties. 

Strather Academy students automatically qualify for an advance up to $50,000 in order to open a savings account and then pledge the account as collateral and borrower the money right back and repay Strather Academy through one of our lender institutions.

There are several advantages to this, here are a few of them;

1.    Credit Score - It could jump your credit score up to 110 points over a six month period provided it is “paid as agreed”. The payment part should not be that hard, if you get into a squeeze just pay from the money in the saving account. Also be careful not to borrow too much based on your salary, this could negatively impact your credit score.

2.    Proof of Funds Although funds may not be available on day one, you can truthfully show someone that you have X dollars in the bank. Some of my students have used this to gain control of properties they plan to flip. The good news is that you may soon be able to get your hands on some or all of these funds …..read on.

3.    Interest on tax return Commercial Lenders rely on tax returns rather than 1099’s to underwrite individuals for commercial loans like apartment buildings. Your interest will correlate with your savings and personal Financial Statement as evidence that you do have cash

4.    Relationship builder – It gives you an opportunity to build a great relationship with the lender. You can refer customers and send them plenty of business; they will get to know you and become prone to do business with you - especially if your goodness reach top management 

5.    Substitute collateral - After building a solid relationship and establishing a payment history several of my students were able to substitute the cash collateral for real estate as collateral. As an example, suppose you had $50,000 in the bank with a $47,000 loan against it (in other words you paid off say $3,000 of the loan), then you found a great occupied real estate buy for say $20,000 that was worth $80,000– you can give the lender a first mortgage on the property for $20,000 and take out $20,000 to acquire the asset, so when all the smoke clears the lender will have $23,000 cash collateral and a first mortgage on a piece of real estate worth $80,000. I can imagine that 6-12 months later you approach them to release the balance of funds.

This is how we do it at Strather Academy. We specialize in showing people how to create wealth without cash, credit or collateral but with a cell phone, a computer and a car (with gas). If you are interested in participating in the BYOB program it is easy, if you are a student meaning you are taking a class or have acquired my Home Study Course, just fill out the information below, email us directly at herbstrather@gmail.com or call us at (313) 444-9691 and tell us that you want to BYOB!


BYOB Form

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