Becoming Your Own Banker (The Infinite Banking Concept)

It's not a matter of the rate, it's a matter of how you go about financing things in life including investments. It's not what you're going to buy, it's how you're going to buy it.

Hear from the Authorized Infinite Banking Practitioners of Ascendant Financial, Jayson Lowe and Sarbloh Gill, as they share with you why as a real estate investor you should be practicing the infinite banking concept so you come out AHEAD.

Francois: Jayson originally went from a small mining and forestry town to building a group of privately held companies. Jayson is the chairman of the Lowe Family Group of Companies. A renowned speaker on leadership, entrepreneurship, and the process of becoming your own banker. The infinite banking concept.

We also have Sarbloh Gill, his focus is on his family there as well. He was introduced to the process of becoming your own banker, the infinite banking concept six years ago, and is now a coach, mentor and helping others financially gain control of their lives. By the way, both Jayson and Sarbloh are real estate investors themselves. There you go.

Jayson began back in 1998 with condos and towns with a rental pool and then private lending as well as participating in private placements as Sarbloh, an engineer by trade, has been actively involved in real estate investing for over 10 years focusing mainly on buy and hold. Tonight, Jayson and Sarbloh are going to introduce you to becoming your own banker, the infinite banking concept. It's rather intriguing. What do we need to know guys?

Jayson: It all begins from a place of education. And that's really what we're primarily focused on. Having practiced this process of becoming your own banker, the infinite banking concept in my own life, the past 14 years.

It has been remarkably transformational for me in both personal financial aspects of my life and professional financial aspects of my life and all of the businesses that I am privileged to lead. Everything began with first, understanding the problem, which was defined for me when I was first introduced to this process. Without an understanding of the problem, the solution just won't matter.

Even as it relates to your real estate investment activities, you've got rental income flowing in. You've got expenses associated with carrying costs of your real estate portfolio. You had to get access to someone else's pile of money to invest in these properties to begin with. Our experience in dealing with real estate investors every single day is that process of gaining access to capital. It's not exactly the most convenient, not exactly the most simple. There's a lot of hoops to jump through gatekeepers, toll takers, bankers, to deal with.

The feedback that we receive most commonly is that it can be a cumbersome and frustrating experience. Whereas if you're embracing this process of becoming your own banker, then you already recognize the importance of the formation of capital and more importantly, capital that's accessible to you on demand, but most importantly on your terms, and when you are in that position, which you can do this, it just requires coaching, it requires implementation. It requires that you get it done gradually and incrementally over a period of time.

You can do this and when you do, and you're in a position where you don't have to rely upon a commercial bank, a conventional bank for anything other than the convenience of debit, that's a very peaceful stress-free financial existence and let's face it as real estate investors. We encounter depending upon how we are, how active we are in the real estate investment activity week, encounter frustration or obstacles, just in the ownership element of it.

Let alone the acquisition of it and the whole essay of this process of becoming your own banker is to recapture that money that is presently flowing away from your business away from your family and to have that capital coming back and to take control of this banking function, as it relates to your needs. I know that was a very long response to your question.

Francois: That's a complicated concept. It sounds far fetched to become your own banker. Am I buying the bank of Montreal? What's involved? It sounds daunting for those that don't know anything about it. I'm pretending because I've started, but you guys pretend like I don't know anything about it.

Jayson: I'll give you an example. If I may, just from my own personal experience. When I began my journey in real estate investing in 1998, my first property that I purchased was a condo style town. My down payment was a whopping $3,500 at that time. I know that sounds like how on earth could that happen nowadays?

I began to accumulate property and I was leveraging, so I was creating leverage properties that were increasing in value. People recall in the early two thousands. Through that period of time, there was a rapid increase in property value, especially out west here in the province of Alberta. I began to hit a wall of access to money to continue to buy more property. It was right around that time frame of 2008, April of '08, when I purchased my principal residence, that my wife Rebecca and I moved in together.

You could still get 40 year amortizations on your mortgages at that time. We thought having not been exposed to this concept yet, we thought that a low rate of interest and a long amortization period was perfect for us. It was in July of that same year when I was introduced to the process and this book titled, "Becoming Your Own Banker". This 92 page book is what changed everything for me. When I began to implement this, the implementation was all about putting together a policy or a system of policies. I'm referring to life insurance, dividend paying, participating whole life insurance policies that are designed for maximum cash value accumulation.

If you envision for a moment, you've put this contract in place or a series of contracts like we did. You begin immediately from day one, you begin to fill up an aquarium, so to speak with cash and this cash can be utilized as leverage. You can borrow against that accumulating value on your term. The loans that you receive from the life insurance company are unstructured. You control the repayment schedule.

We began to access policy loans, and we were taking the insurance company's money while our aquariums kept filling up with more cash every day. We began to bite down on the principal balance of the mortgage on our principal. It took us seven years to get rid of the commercial bank. And at the end of that seven year period, so 33 years ahead of our original amortization schedule. We had a loan balance outstanding with the life insurance company, but we controlled the repayment schedule.

We own the asset. It's totally unencumbered because the lien is not against the real estate for the loan. The lien is against the death benefit of the insurance policy. That put us in a position of total and absolute control. We began to experience that peaceful stress free wave of life financially and fast forward to today, we have 62 policies in our system and we are active. We are actively involved.

My premiums that go into my system of policies are $530,000 a year. We didn't start there, but we are actively involved in real estate and we get to take advantage of opportunities that track us down because we have ready access to capital on demand on our terms and from that very place we can accumulate and create more abundance but by the very same token, we're not worried about what's happening in the economy.

We're not worried about what's happening as it relates to a temperamental stock market. We're not worried about those things because these insurance contracts, these Unilever lottery, binding contracts are contractually guaranteed to rise in value every single day. They can not go backward. This is a tool that enables us to implement a process.

I'd like to invite you to to join in the conversation and share what educational resources we make available because again, it's impossible to explain this in a 20 minute timeframe, but what we do provide is an abundance of resources that only require an investment of time. No investment of capital. We want to educate the membership on this remarkable process because I can tell you from firsthand experience that it will change the way that you conduct your financial affairs, especially as it relates to your real estate investment activity.

Francois: I can see a million applications. You mentioned paying down your house in seven years. Now you have a debt on your life insurance, but now you could call The Windrose Group again for a new mortgage on the house and infinity, so this is insane. I love it.

Sarbloh: Francois, the individual, the person who pioneered the process of becoming a banker, the infinite banking concept, Nelson Nash. He called it and he used the word infinite because it is limited to our imagination. When folks come through our education process, the resources that we have provided to the general public, to clients in education, when they come through our education process, it's just a light bulb moment for them.

It's not about what we are going to buy. What be going to buy is great, whether it's real estate, whether it's other investments, whether it's you want to set aside money for vacation or sending kids to education, it doesn't matter what you have the need for use of money just by changing one step in your financial transaction, which is add this process.

It'll just make that transaction radically, financially, better for yourself, whether it's for you, for your business, or for your family. That is the kind of feedback that we get is, hey, it's not about what we buy, it's how we go about buying things in life which changes the outcome.