Of all the ways to get started in the real estate investment industry, the most classic approach is to begin with Wholesaling. As the logic goes, with the money you build up from Wholesaling, you can begin doing Fix-N-Flips.  After you successfully complete some Fix-N-Flips, perhaps you can look into long-term Buy & Holds. And so on.

Obviously, there is a wide variety of strategies, preferences, goals, and objectives when it comes to real estate investing. I am not here to tell which is right, wrong, better, or worse.  My main objective is to show how you can add one extra component to any of these methods to create an even more advantageous system.  First, let’s establish some key terms. We’ll call the number of things a dollar can do the multi-tasking dollar, and we’ll call the strategy the Infinite Banking Concept (IBC).

The Backstory – Fractional Reserve Banking & The Multi-Tasking Dollar

Here in the U.S., fractional-reserve banking is a system in which banks have to keep a certain amount of depositors’ cash on hand.  Without getting into the weeds of it, that settles at around 10% for large banks.  Most people who read this in passing regard this as a positive.  We say, “Oh, that’s nice. They are required to keep a reserve. Great!”  But let’s say the same thing, a different way: 
For every dollar deposited, the bank is allowed to loan it out eleven times. 

Stay with me. If you deposit $1,000 in the bank, they are required to keep a reserve of $100 (10%). The other $900 will get loaned out. Now, there is $1,900 in ‘the system.’ The bank actually has $100.
Rinse and repeat. That $900 gets deposited into the banking system.  A reserve of $90 is kept, while $810 is loaned out. Now the bank has $190 on hand, and $2,710 in the system. This goes on and on and on.
When there is a run on the banks, this becomes a huge problem!  For a quick reminder, see 2008.

For starters, a couple of observations can be drawn here:

1. The banks are creating a multi-tasking dollar. One dollar is doing eleven different things at once.
2. The banks do not have the reserves to cover what is actually deposited.
   
   

The Multi-Tasking Dollar in Real Estate

Here’s the appeal! One dollar in real estate investing can benefit you in a variety of ways, including:

• Create Equity
• Create Cash Flow
• Create Tax Deductions
• Create Profit
  
  

The Infinite Banking Concept

The Infinite Banking Concept is a process by which one becomes their own banker. The best method of achieving IBC is through properly structured, dividend-paying whole life insurance. 
Let me break that down so you understand what was just said:
Properly Structured – There are specific ways to structure a policy to create the maximum available cash value inside of a policy now, not just later.
Dividend-Paying – There are certain insurance carriers where your policy can grow to its highest potential.
Whole Life – It’s not term insurance, nor universal life, nor variable life. It’s whole life insurance.

We’re not going to spend a great deal of time discussing the details of IBC, but here you have a basic framework.
Keeping in line with our conversation about the multi-tasking dollar, here are a few components of IBC:

• Uninterrupted compound growth of cash value
• Unstructured loans from a policy
• Creditor protection
• Guaranteed growth
• Death benefit
• Interest deductions for businesses
• Disability benefits
• Tax-free growth
  

…And the list goes on.

Infinite Banking & Real Estate Investing

What would change in your real estate investing business if you didn’t have to pay the 7-12% interest and points to a lender?
What would change in your financial life if you never had to borrow from a bank again? What if you could borrow from yourself and pay yourself back with interest, and do it over and over and over again?
What would change in your personal life if you were able to be your own bank? What if you could finance your own cars, vacations, child’s college, and even retirement?
What would change in your family’s life if you were able to leave behind a substantial financial legacy that could literally last for generations?

This is why we do what we do. This is why we teach people about the Infinite Banking Concept. We want to see your life change for the better. This is how we do it.

• Build equity
• Build cash flow
• Create tax deductions
• Generate profit
• Build up retirement
• Uninterrupted compound growth of cash value
• Unstructured loans from a policy
• Creditor protection
• Guaranteed growth
• Death benefit
• Interest deductions for businesses
• Disability benefits
• Tax-free growth
  

And the benefits go on and on and on…

Article written by Jason K. Powers

The average household in the United States currently carries a debt of $137,000, which is a staggering amount. For context, the median debt in 2000 was only $51,000. 

Here in America, we’re taught to finance our cars and our homes. Then, we’re told to get a few credit cards—because you need good credit—and it’s okay to buy something that you can’t afford—but pay it off as soon as you can… and the cycle goes on.

In the end, we find ourselves standing at the kitchen table, looking over a staggering pile of bills. We scratch our heads, wondering how we got into a position where debt became such a daily burden.

There are plenty of popular strategies to help people get their debt under control. Grandma’s envelope system for household budgeting, for example, might be a great starter strategy for those who can’t seem to control their spending habits.  Debt stacking is a great approach for knocking down debt, though it does require some discipline.

One of the services we offer at Unbridled Wealth is helping you build a debt recapturing plan by applying the Infinite Banking Concept (IBC). The Infinite Banking Concept is best achieved through a properly structured dividend-paying whole life insurance policy, which we help you develop. Once you understand the process of using a whole life policy to recapture your debts, you begin to see tremendous cash value growth through the life of the policy, which offers you more freedom to manage your own personal finances. 

The whole life insurance policy we’re talking about is far different than your ‘average’ policy. It is not Universal Life (IUL’s, VUL’s), Annuities, or Term, nor is it an investment product. Instead, it’s a way for you to build cash value inside of a policy while still having access to that cash along the way. Your money will gain uninterrupted compound growth inside the policy. Rather than needing to finance everything with a traditional bank, you have the ability to be your own bank.

How much money would you save in life, if you didn’t pay interest to an outside bank?

So what about recapturing debt inside of a policy? If a bank were willing to gradually consolidate your outside debts, let you decide the terms of the loan repayment, guarantee you growth of the cash value that you have accumulated (even with an outstanding debt balance), and offer to pay a guaranteed sum of money to a beneficiary once you pass away (outstanding loans or not), would you be inclined to use that bank? I should hope so!

This is what IBC can do for you.

Alternatively, you can pay down your debts, pay interest to the banks, and end up with a zero-dollar debt balance.  That’s a great accomplishment too!  But would you, if you could, take advantage of all the other benefits along with it?

Reach out to us and we’ll show you how.

Article written by Jason K. Powers

In these unique times during the COVID-19 pandemic, we have seen practically every response under the sun, when it comes to personal finances.  The initial impact is obvious throughout the U.S., but the reactions are abounding.  With upwards of 40% of the adults in the Nation who cannot afford a $400 unexpected expense, it’s no wonder we are seeing such a wide range of responses.

We’ve seen a borderline run on the banks with people worried money will be hard to come by.  We’re hearing of people cashing out their 401(k) amid fear of losing the rest, or taking advantage of the newly passed CARES Act.  However, even through the range of financial obstacles, we’re seeing a positive trend in many areas, including those who are utilizing their own private family banking system now more than ever.

When it comes to our clients, we’ve had a much different response. One client just last week at his Annual Review said, ‘I finally get the true power of Private Family Banking’. His 401(k) was down more than 20% for the year, but his Banking System is growing 5% and will continue to no matter what happens with the market. We have been talking to our clients about a coming recession for over a year and even though we weren’t expecting it to come so quickly, most of our clients have been preparing themselves in cash-ready positions to make the most of this crisis and the potential recession it will bring.

Here at Unbridled Wealth, our strategy has remained true despite the numerous ripple effects of COVID-19 – helping families, businesses and non-profits achieve financial wellness through uncommon approaches.  Our approach is and has always been to help our clients better understand their financial landscape, along with their financial goals & objectives.  We want to help them connect their finances with their goals and objectives by utilizing private family banking.  Now more than ever, a good solid strategy is needed amidst this global tragedy, and we want to see our clients not only survive, but thrive.  The beauty of private family banking is that none of our clients cash values have actually declined, because these banking systems utilize guaranteed returns – giving them the ability to prepare to make investments in real estate, and stay ahead financially.

We have been working hard to help our clients come up with practical and creative solutions to their finances.  It is important not to make knee-jerk reactions that may impact you for decades.  We have been equipping our clients with the tools necessary to create their own private family banking systems.  Through our free education and strategy sessions, we are helping them discover even more creative ways to access, redirect and rearrange their finances, as well as start creating financial velocity amidst these unprecedented times. 

We encourage you that NOW is the time to be creating a plan and looking for opportunities to capitalize and stabilize during the economic disorder.  

If you would like to hear more about creating your own private family banking system, while developing your overall personal financial strategy at the same time, do not hesitate to reach out!  We are here to serve you and be a resource for you in your real estate investing endeavors.

Article written by Jason K. Powers

Photo by Anastasia Petrova on Unsplash