How Infinite Banking Can Be Leveraged in Real Estate

Today's topic is uncover blind spots for real estate investors. But I know everyone's situation is different and everyone's real estate investment journey is different. What I see is a blind spot may not be your blind spot and I may not be able to uncover all the blind spots. So I had a little add on for some blind spots. So hopefully you will get a lot of value from today's webinar and help you to really rethink what you're thinking. Because that's really where we can add value is to help you to spot something that you never seen before. Right. So.

Thank you for your participation. May I ask that who here in the room are real estate investors already? Maybe type a Y in the chat box if you are a real estate investor. Wow. We have a lot of real estate investors. That's fantastic. May I ask if any of you guys have a.

Real estate investment corporation or any of you are incorporated investors in the room? Maybe put a yes as well. Great. I see some yeses and some nos.

Great. May I ask that if there are any infinite bankers in the room that you already know about this concept? You are already practicing this.

Okay. There are someone new, someone that's not. This may be a review for you. You know, knowledge is a key for real estate investing. We all know time, knowledge and money are the three important parts for real estate. And it's very similar for for the process called becoming your own banker as well. We have this picture of the book Becoming your own banker by R. Nelson Nash.

Has many of you in the audience has read this book already.

Sukhman, I might want to ask you to help me out a little bit. It's a little bit hard for me to see.

No, no problem. Jinden, I'll give you a shout of the chat. You're getting a lot of yeses. Someone's in the process of reading it, which is awesome. Congratulations. But you have a lot of yeses in the chat.

Awesome. Great. We're gonna refer to this book a lot. So that's congratulations. For those who has not read about Nelson's book. You have a great opportunity. Now things we have a lot of real estate investors in the room. I just going to use this old joke. You might already seen it, but every time I show this few graphs still give me a little gig. So as a real estate investor.

This is your home as seen by you and as seen by your neighbor or your buyer. And this is your home seen by your lender.

To it. Worst, this is your home seen by your appraiser Maybe your lender sent the appraiser or maybe your house insurance agent sent the appraiser. But this is your house view as your appraiser. However.

Your house is also viewed as this seen by the municipality property tax collectors and all the fees and rules. Is it funny? I love this graph. It's not easy to be a real estate investor, especially for hard times like this. There is a saying that it's not about timing the market, it's about timing the market is tough to just stick on and carry on your real estate endeavors. And as real estate investors you probably understand delayed gratification. You understand that you have to save money first. Now where you save money, that's today's topic. But you know that you have to start to save some money in order to get into the deals. And you also understand that you have to think long term because anything that worthwhile take time. We cannot build Rome in one day. We cannot build a real estate portfolio in one day. And we cannot build wealth in one day. And as real estate investors you value coaching and you would like to be with like minded people. And this are very similar with infinite banking concept. You know Nelson Nash, he is the author, the discoverer and our mentor for this concept. And he used to teach this concept for a 10 hour seminar. And this book becoming your own Banker is just a text of his 10 hour seminar. And all the advisors here at Ascendant Financial, we are all authorized infinite banking practitioners by Nelson Nash Institute. We value Nelson's coaching, we value Nelson's book. And in fact this book is a foundation of our coaching. And I understand this book may not be an easy read for some people. By now you probably can notice that I have some accent as well. English is not my first language. So when I first read this book it's tough but maybe give it a second read because the second time when I read this book I had a lot of aha moments. And even till this day we read this book many times. And for Ascendant Financial audit advisors meet once a year at least we're going to listen through the whole 10 hour seminar that Nelson did. We listen to the recording as well. So if you haven't watched this one hour film about this is Nelson Nash.

I think it's a great one hour you can spend to know. But for those who may not like reading a book, we have a lot of content on our website. We have a YouTube channel called Bankers Vault. We have 874 total videos as of last night. And we also have A podcast is also available on the YouTube channel as well. It's called wealth without Bay Street. You don't have to listen to us. We have great client stories, client interviews, client success stories there that those are the real people, real case in real life. And they are sharing that how this process called becoming your own banker has changed their life no matter in their life, financially in general or their real estate lives. So I strongly encourage you to, to, to, to go to that if you have not done so. And the reason we're doing all this is because one of our core value here is empower with education. And what we are here today is also doing so and we wanted to do is to help you to rethink your thinking and help you to see what you did not see. Now what I'm going to cover tonight as a real estate investor myself and also a coach to many real estate investor clients, I wanted to share a couple common frequent asked questions by real estate investors. And through those questions we can see what are some of the blind spots that real estate investors, it's harder for us to see. We also going to spend some time to talk about the tool, why this tool? This is a tool and how does this tool work. And towards the later of this webinar, tonight we're going to go over two case studies. Now case study number one, you know, is for someone is a real case study who has a tight budget. You know, in the environment today we have a high inflation, the interest rate goes up, you know, raise your hand or type Y in the chat box if you face a shortage in your cash flow. And then, you know, the thing is you don't have to be rich to practice becoming your own banker. Even for someone who has a limited budget, that still mean that they can have the option to become their own banker. Now for those who has a real estate incorporation, you have a great treat tonight as well. We also got a, you know, a case study that we are going to walk you through. You know, even though real estate investors are very savvy, but unfortunately what we've seen during our coachings in the last few years, what we notice is that, you know, a lot of real estate investors are not taking advantage of the benefits of being incorporated with their real estate and they are missing the significant tax advantages of doing so. And that's why I will have my teammate Henry Wong, who is CPA CA towards the end of today's webinar, he is going to help us to walk through a corporate real estate investor case study that maybe Help you to see what you are missing out from a tax standpoint. Does that sound good?

All right, let's dive in. So when Nelson, if Nelson's here today, if he is going to give to this webinar, the first thing he will say is it's all about how you think. You know, many people believe that they are thinking, but when actually what they are doing is only rearranging their prejudice. And I'm not talking about anyone, I'm actually talking about myself because my own prejudice, my own arrogance delayed myself in finding this concept for 10 years. You know, as a real estate investor, I pay attention to a lot of, a lot of different things, but I totally neglect this concept. And I also really like this quote from author Schopenhauer. He said all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. And third, it is accepted as self evidence. May I ask which stage are you in right now? Maybe you are the spouse that you were violently, violently opposed, your significant other in practicing this. And today you have a opportunity because.

What we want you to do is to have open mindset and have a learning mind and just, just, you know, every process begins with speaking the truth. Maybe some of the the applications does not apply to you. Just book a one on one call and have a discussion with one of our coaches. All right, let's dive in. May I ask that what is the most frequent asked question by real estate investors when they heard about the process of becoming your own banker? Anyone want to take a guess?

Now, based on my experience that I've been to many real estate webinars, one of the most.

Common question that asked by the real estate investor is what is the rate of return? What is the yield of your program? Does that sound good? Yes, because savvy real estate investors are very good with math and pro forma and they pay attention to the average rate of return, annual rate of return, cash on cash rate of return. But what I see is you have a blind spot. Number one is there is a difference between a what versus how. Now when we talk about a investment, it is a what. So it could be a real estate deal, it could be a property, it could be a private lending deal, it could be even stock or gic. You know what we have to reinvest in real estate is because we want to fight inflation. I would say we want a hard asset to grow our wealth. And we do not always have a five and a half percent gic. And in fact saving may not be the most effective way for us to grow wealth. So as savvy real estate investors or investors in general, we are constantly looking at the different deals that are available for us to grow our wealth. But that is what, that's the objective, that's the target, that's the asset, that's the what. But when we talk about the process of becoming your own banker, it is how is it action? Is this a transaction about how you go about financing the deal? So, so I think the difference, the confusion sometimes come from real estate investors is because we actually do a lot of how the actions to add value to the investment which commingles it and make people feel like that's just one of the way that, you know, you can make my investment a little bit better. You know, there's a lot of confusings in it. So what I wanted to share today, if I can shine some lights for those who have trouble understanding this part is, you know, when we look at a investment, for instance, I'll just use regular, you know, single family rental property as example. There's many ways that this investment itself will earn us a return. There will be might be positive cash flow that you will get. There will be mortgage pay down or principal pay down. There will be active appreciation. For instance, you will do a lot of rental or value added. A lot of real estate investors put a lot of time expertise in the deals that they might put in a lot of things called sweat equity to the deals. And then that hopefully will give you appreciation for your, for your investment. And also there's passive appreciation over the long haul the market will go up. In general, real estate values will go up. That's what we hope. And the fifth one I just added in there is also there are some rare situations. For example in big cities like Toronto or Vancouver, the cities are growing very rapidly. They might change the land use of your property and you might have a rezone. And that's a jackpot for me. Like I never count on that. But sometimes that happens. Then your real estate, your land value increase quite dramatically. But having said this is just a rough estimation.

About how you can get different returns and gains, capital gains and appreciations from your investment. But what I want to distinguish is there are part of this effort that you can control. For example, maybe you have a lot of experience, you can self managing your property, you gain a little bit more positive cash flow. Maybe you are the very handy, you can do a lot of, you know, you can do a lot of renovations yourself and then that will add in a lot of positive cash flow. As well. But what I wanted to say is there's also a huge part of the growth of your investment are out of the control, which is depend on the market condition, real estate value goes up, real estate value goes down. And also interest rate goes up, interest rate goes down. You know, two years ago, if we have this conversation now, nobody's paying attention to this because we are having a 1 1/2% interest rate. Nobody's thinking about what if the, you know, the interest rates goes to the other way. So. So a lot of the, the returns, the investment returns are not in our hands. But it is what it is. What I want you to say is when we talk about the process of becoming your own banker, I want extract the investment itself. Regardless of what you put efforts in or regardless of it is based on the market investment grows into what it is. We have to put that aside. If let's say this deal that you have this property for five years, maybe it grow by 20% a year, maybe it grow by 10% a year. That is what the investment can do. But when we talk about the process of becoming your own banker, we have nothing to do with the investment return. Putting that aside, what we are looking at is how this process is a how is about how you go about funding the deal or go about getting the deal. Is this through your own cash? Is it from an institution lender, Is it from private lending? How do you raise capital? But what we wanted to say is by adding a process with whatever you were already doing, the process of becoming your own banker can help you. Well, it's almost like on a third dimension we always look at where do we allocate our money, do we put our money in this deal or that deal. But becoming your own banker, the infinite banking concept is like a third dimension is about how you go about putting your money in that deal. Does that make sense?

And when Nelson teaches about this concept, which is one of my biggest aha moments, Nelson uses airplane as example.

So Nelson said we all familiar. And this is in his book, page 18. He said we all care about the speed of an airplane is going for 100 mile per hour. Or if everybody's chasing that, can I make this airplane goes a little bit faster? Can I get a better rate of return on this investment that I already have, but nobody cared about is which environment your airplane is flying, which is in our case is which environment your finances are. And Nelson says nobody get a better rate of return without first controlling the banking function, which is environment for you. So we also Talk about there are a lot of headwinds. If you are having your airplane flying from A to B from your departure to your destination for 100 miles per hour and you have a headwind for 345 miles per hour, I don't think it's very easy for you to get to your destination. You're probably going to the other way. So what the process called becoming your own banker is to give you a tailwind so that you know even maybe you don't have to speed up your investment. You automatically can go so much faster to your destination. So Nelson says there's no way that a person can get a higher rate of return by ignoring the banking process, creating a.

Perpetual tailwind to everything you do in the financial world by controlling the banking function. And that is what we are here talking about is about. This process is about controlling the banking function. And this is one of my biggest aha moments. So I just want to do a quick value check in. Does this make sense? Is this kind of click with some of you that might have a confusion with what is the rate of return and how even banking compared with the investment.

Great, thank you so much. Then let's move on.

I want to ask what is the most talked about topic? What is very hot for real estate investors?

Well, yesterday a lot of real estate headlines are the bank of Canada holds prime rate stable. Yes, you are right. The most talked about topic for real estate investors is about the interest rate. A lot of people are thinking their interest rate might be going down. The market will be catching up, will be getting better, which is great. I think this is not a blind spot. Everyone knows the problem when you borrow someone else money. And Nelson says the golden rule is those who have the gold make the rules. So when we use leverage, borrow someone else money, we have to follow their rules. There's no control for us in terms of what is interest rate is. We're very reactive in that situation as real estate investors. And we also know that in real estate there is a saying that you either run out of money or you will run out of money. We all know that, you know, funding the deals is a big deal, is almost inevitable that we need to use other people's money to do real estate investment. However, we also know many of our coaches here and many of our clients and many people out there, maybe they are doing real estate very passive and they may really enjoy this environment when the real estate, when the interest rate is high because they are on the other side, they are the lender and they are quite enjoying getting a higher rate of return, pitching in those deals. Does that sound right?

This is something that really, really hit me very hard. I want to ask you this question. Let's say for a real estate investor, he run of his own money, run out of his borrowing power. He needs to raise money, money for a rental property. Not rental property, like multi residential property. He needs to raise money, he has $500,000 left. He really need to raise that fund. There's two choices. There's one person can give you all $500,000 or you're going to raise $50,000 for 10 people. Which way do you want to use one person? You can type one, 10%, you can type two. I just want to see what you think. If you are the one who wants to raise the fund. Oh, great. I have. Hasan has two. I'll have a few ones. A few twos. Great. I mean, there's no right or wrong answers.

The answer because congratulations, you got your money. That's what I want to say. But yeah, actually this is a real case. I have participate in a deal and, and then there is option for this. This person who's a general partner, he. He can get someone for all the money, the remaining money he need to raise, but he choose a 10 person for $50,000 each. Because I think real estate investors see the problem of using other people's money. Because he said, if this one person that gave me all $500,000, but one day he calls me, he said, hello, sorry, I need to use the money, I need to call my loan back, I want to get my money back. He said, I'm in a very desperate situation because I cannot raise $500,000 very easily. However, if I have 10 person who each gave me $50,000, if one person want to be out of the deal, it's much easier for me to. To replace that or find a solution for that, does that make sense?

So I think this is part of a blind spot or a bright spot that real estate investors, we know that there is a problem of using other people's money. But the blind spot that people do not see is there is also a problem when you are using your own money. So for those who are giving the $50,000 or who are doing the private lending, $500,000. I really want to ask you, where is your money coming from? If you're using your cash to the deal, you have a great opportunity to learn about this concept which can enhance what you are already doing. But for those of us that we May not have a lot of money to do. Only passive real estate investing. What you can do is you can look at the down payment, right? So maybe the question is how do you fund about your down payment when you want to go for a deal?

I think a lot of people use this save their money for down payment and maybe there are people using maybe your HELOC or using borrowed money for your down payment. Those are the two common areas when you put your skin in the game or you know, use it to present your offer to the commercial banks. And, and then we see there is a problem when you put up your own money for the down payment or when you borrow someone else money for down payment. Because we see that your positive cash flow comes directly from how much your down payment you're putting in. I used to hear a mortgage broker, he has this great conversation, he said that, you know, positive cash flow is a false proposition. Is that if you put large enough down payment or if you don't have any, you put all your money in, you would always have a positive cash flow on your rental property. And I think that's right. And what we are facing here is your down payment percent versus the leverage. We all know that a lot of real estate investors, we want to put as little money as possible because we get the biggest leverage on the rate of return from your, from your investment. Is that right? But leverage is a double edged sword. If you put too little down payment, you use other people's money for the down payment. You have less control, you have more influence by the interest rate, you have to pay more interest payment. But if you put too much down payment in the steel, you have less leverage, your money is more tied up. It's very hard for you to build a real estate empire, is that right? So this is a dilemma that I think real estate investors, you, you all know there is a problem using other people's money. There's also a problem to use your own money. The question is, is there a better way? And that's what we are going to talk about today. All right, so far is good. That's people following along. All right.

So the next common question before I get back to that better way, another common question that I get to be asked a by the real estate investor is see advisors, see if you see this as well, what is the minimum amount that I can put in my money is tied up with deals. I put this as a blanket because those deals are increased, assets are getting equities for me. Have you asked that question? Is that something that you come up with you. The other way of asking is that does this needs me to put a lot of money. I don't want to put my money there because my money is all tied up with deals. So this is shows the blind spot number three that in my presentation today is not about location, location, location, is about the location of equity. The location of equity. The location of equity. So imagine this if a savvy real estate investor have all their money.

Put into different areas.

So I'm just going to do this. So it has equities in this, this house have equities in this, you know, apartment building deal. He has some equities goes into maybe some like stock drip, other paper assets as well.

How, how much money do you have on yourself? Where is your money goes right now? Where is your money reside right now?

Do we have any answers in the chat box? Is your money resides with you or is your money resides between the walls in your real estate investment problems? And that's a blindfold that a lot of real estate investors do not want to see. Savvy real estate investors do a great job diversify their portfolio. But you know, when you have your money tied up with a deal, your equity is not earning you any money. How much percent is equity earning for you? The deal that you have is earning you X, y, z percent of rate of return. But your equity is stuck in the walls. It brings you 0% of interest rate, rate of return. If you have a business opportunity and this business opportunity requires you to put down a large sum of money in the deal and they are paying you 0% for this deal, are you going to participate in this business opportunity?

Of course not. Because all capital has a cost and your own equity that's stuck in the deal are not earning you any money. And that is a problem that is a blind spot. But however, whenever we sell this property or we we get this funds back, Real estate investors are so savvy, we always looking for the next deal. Without this money back to my pocket long enough, I'm putting this money deployed to another deal. Does that sound familiar to you guys? It was what I used to do. So here is a problem that you are working hard to save your money and you accumulate enough money to move this amount of money for a real estate deal.

So the money goes to the deal, your money, your bank account goes to zero. What you need to do now is you're going to start to save your money again or you're going to wait for all this time for you to get Your deal refinance or sell or complete the project, get this funds back. But when you get your funds back, you are only at where your money was before. In case, if we just look at your money flow, you're going backward. You are only at where you were before. Your money is not growing for you. The deal is bring you extra money, but your money is gone from your system. So this is the blind spot that I see a lot of real estate investors have a hard time understanding because Nelson said we are all using borrowed money. Even if you use your own cash, it has capitals in it. You still have to pay interest. You lost the opportunity that this money can grow for you. So it is the case when you save money, you spend in the save again and spend it. It looks very similar when you borrow someone else money and you pay back that money and then you're going to borrow money again, pay back that money that you deployed and do that both ways. We are ending around zero. Both methods are permanent transfers of money away from you. As real estate investors, every payment that you make is a deposit into someone else bank, not in your bank. This money is gone. Nelson Nash says the very first principle that you must be understood is that you finance everything that you buy. You finance everything that you buy. You either pay interest to someone else. When you borrow someone else money, you have to pay interest, or you gave up interest that you could have earned otherwise. So when you use your own money, you also gave up interest. There's no exceptions. And the whole idea of the process called becoming your own banker is to recapture the interest that one is paying to the banks, other financial institutions, other people for the major items that we need during our lifetime. The whole objective is to keep the capital growing within your family and that I'm going to bring up the blind spot. Number five is real estate investors. We are constantly, constantly interrupt the compound growth of your money. In fact, that you may not realize this because you never had this money within your system for long enough to see the growth. You wanted to grow your capital uninterrupted, constantly, compoundly. So I'm going to use this graph that many of you might already seen it. But repetition is how we learn. So I'm going to use this calendar for 31 days and we're going for a very extreme example. We see that you're gonna have ascent.

From day one and your money gonna double every day. So the problem is that you cannot spend the money and still have the money. You cannot eat the cake and have the cake at the Same time. So that's what the constant compounding that we want to talk about. So let's say the first day, day number one, you have one cent. You're gonna double every day. No, we don't have this kind of investment in real life. I wish, but did not. But we're just using extreme example to show a point. The second day become 2 cents, 4 cents and versus so goes down at day 31, you will end up with $10,737,000. By the day 30s used to only have five millions and change. But at 31 you got over $10,000,000 by just double your penny every day for 31 days. Now here comes the problem. Real estate investors. We need to put the money in a deal. Now we need $20,000 to do a deal. So what do we do? We're going to withdraw your money for the $20,000. You can add a zero, add two zeros. I'm just demonstrating a point. Now you're going to take all the $20,000 and put this money on the deal. Does this sound familiar? So what happened on the day 23 when you do that? Now you only have $1, you start from scratch again and by the end of this 31 day this month, now what shows in your bank account is two and half dollars $2.56. So here comes the question.

When I use money, I cannot keep the money continue to grow. But if I have money continue to grow, I cannot access money. So the question is at day 22, if someone can learn to $20,000 so your $20,000 can continue to grow for the rest of the month. Would you like to borrow the $20,000 for your deal? Maybe Clicks Y for yes, clicks N for no.

Great. We have a smart audience. We have a lot of Y coming up. Yes, you want. So here is a teaching point. Is that anything that when you withdraw the money, which we all do in our life, any interrupt of your compound growth is permanent. You can never get to that point. That's why you wanted to become the banker and the bank owner. You don't want just getting this money. You wanted to have this money continue to grow where you can borrow the money and still do the same. Is it possible become a wealth creator by using the infinite banking concept. What you wanted to do is grow your own pool of capital uninterrupted, compoundly for all the deal that you may have for the rest of your life. But while you wanted to use the money, you are going to become the bank and the bank owner. At this time, you're going to borrow against from your system and achieve whatever you are already achieving in life. So this is what Nelson teaches. You need to become all four characters in the financial play. In fact, many of us don't even know there's four characters for the financial play. You work very hard. You put this money in someone else bank and remember it's all borrowed money. Whatever type of real estate deals you're doing, you are borrowing your money. You are permanently interrupt the growth of your money because you're going to borrow this money out of it. But when you are number three and number four characters in this financial play, you become the banker and the bank owner. You secure that financial energy you get to gain from this financial transaction. How does it, how can it be done? Nelson said in his book. He said find a way to get the warehouse of well starting as soon as possible. It cannot be done overnight. It must be done incrementally. The earlier one starts a policy, the longer it is enforced, the more efficient it gets. So. So I am going to dive into the tool right away, but I'm just going to take a little break and do a value check in Sukhman, may I invite you to maybe check in and see how people like so far of the webinar. Are you getting any values, guys?

Yeah, absolutely. So let's get a value check from 1 to 10. Just let Jinjin know how we're doing. So 10 being you guys are getting a lot of value.

Jinjin, you have a lot of honest people in the chat that are giving you a lot of tens, ten pluses.

So people are getting a lot of value. Awesome job so far, Jin.

Oh, great. Thank you so much. You know, interaction gave me a lot of energy. And don't be shy guys. You know, if this is new for you, schedule a call because everyone's situation is different. Everyone's thought process is different. And.

Don'T be shy. And when you, when you make a call, we guarantee that we're not going to send your invoice. You don't bring any money to the call, but discuss with your situation. Ask your own question, ask about your own blind spots. And you know, our advisors can help you with that. And you know, all progress start by telling the truth. And, and I hope that this will encourage you to rethink some of your thinking and see the parts that you did not see today. All right, so let's move on. I'm going to talk about the two what and how we talked. We mentioned about the policy for those of you do not know, I want you to imagine if you have a huge pool of capital today, where do you want that money to be? What do you want to use that money for? I just want you to think about it. Let's assume that today you have a large amount of money coming in. I would assume you probably do not want to put that money sitting as cash. You probably do not want to put that money all into real estate. Right. You probably don't want all the money to pay off all your debt because now your debt gets to zero and what happened to your money? Right? So I want to think about that. You probably also wanted to put your money to work as well. Oh, I love that Sarblo. So I want you to do this exercise. I want you to imagine a perfect investment.

Just a perfect investment that you put your money there. What are some of the attributes or the characteristic that you would love this perfect investment to have? Would you mind typing in the chat box?

I have no risk. I love that. It's one thing about having money, the other thing is about keeping your money. No loss Tax free. Oh, it's going very fast. I need some help.

Tax free protection, liquid privacy, compounding. I love that you wanted to have some rate of return. You don't want. Your money's not growing. Yes. You want the guaranteed growth. You probably don't want a roller coaster growth that you know, you know. In 2008 I actually know a family member. Their, their retirement fund dropped by a third of what they have. But they are already in their 70s. They don't have time to wait for the market to go up. Not different than us that I still have 20 years till I retire or if, if, if, if retire is a word that we're going to talk. But, but it's devastating for a lot of people when you have the market volatilities. And that's why a lot of people looking for alternatives. Thank you so much for the participation you want. And you also want to access your money. So let's look at some of the attributes of the perfect investment. It needs to have a high and constant rate of return. You want it to be safe. You want to be liquid. You want it to have some guarantees in it. You also want to have some tax efficiencies on it and no market volatilities. You wanted to maybe protect it if the tenant sues you. You don't want all your money goes to the tenant going to the lawsuit. An inflation protected. We also know that that's very Important and you want you to have control. And many of the real estate investors, we build our real estate portfolios for a bigger and better financial future. Some of us wants to build this for our next generations. We want it to be transferable, right? We want it to be private and no hidden fees and all that. And think about any of the investment that you are currently doing. Simply identify which of the feature that we mentioned here from the list that they do well on and which of the features that they fail to satisfy. And Nelson mentioned this in his page 85. He said real estate is great, but the problem with real estate is that it's not liquid, is pretty much a frozen asset. And I cannot agree with more. I see when the market is down, I see a lot of opportunities. But I also wish that I have readily accessible liquid available cash available to capture those opportunities. But if I have all my money stocked in real estate deals, that means that it's very hard for me to liquidate my asset as well. Very hard for that as well. So that's fantastic. So does this perfect investment even exist? The answer is yes. It has been around for 160, 176 years in Canada. What it is. Well, don't be shocked. I know I struggle with this. Remember the three stages. First is ridiculed. It is a participating dividend paying whole life insurance policy, hopefully with a mutually owned life insurance company. Now what does a whole life means? Whole life means that you are life insured for the whole of your life till age 100. And what this does is that by contractual guarantee that the total cash value of the policy must equal to the total death benefit by age 100 every day. When you age, your total cash value has to rise. And whatever is being grown, it cannot lose value. So this is the tool and these are some of the attributes. And when you have this contractual guarantee that your cash value has to grow to be the same as your death benefit, may I ask who bears the risk?

Is that you or is it life insurance company?

If your answer is life insurance company, then congratulations. And life insurance company has been around for a long time and they have a great track record of growing profit. Think about if you have a large amount of money, where would you like to put that money? You probably want to put some money in bonds that are nice and stable. You might want to put some in equities that generate great.

Guaranteed engineered payment for you. And you might also want to invest in real estate that brings you great positive cash flow. And this is just one of a snapshot of one of the life insurance company and when you put premiums into the policy, into the participating account, how they are growing the money for you to fulfill their contractual guarantee. Isn't it wonderful? I won't spend too much time on this because I'm focusing on the blind spot that you might see. So another blind spot sometimes people ask is that okay, so this is just about life insurance? This is just about life insurance that you're just going to borrow from it? Well actually not really. It is a different kind of life insurance. It's not the traditional life insurance that you usually get. And this speak as all our advisor here at a trained infinite banking practitioner at the beginning I really struggle with this question.

Especially for some of the real estate investors. I already have whole life.

What is this? Can I use what I have? Well, you need to have an open mind. So this is a life insurance but the objective is different because we remember we talked about all the problems. If you don't understand the problem then the solution will not matter to you. And the solution is not to solve for the death benefit for this policy. The solution is to become the entity for you to grow your own capital in it, become your own banking system. This is the, this is the objective of this tool that we wanted to have is for you to have your excess of cash and then the compound growth of your cash until the end of time, hopefully age 100.

So when you have a whole life insurance policy has to attach to an insurable body called life insured and it will give you a death benefit. Usually when we look at a life insurance product we're looking for the protection. So we say okay, this is my mortgage, this is how much death benefit I need, tell me how much I need to pay. That's usually what people view as a life insurance policy. And who decide on that premium is a life insurance company going to say oh what kind of, you know, depends on the product, they're going to find that for you. But when we talk about the tool for practice becoming your own banker, we're looking at for this policy, what is the maximum amount of money that we can put it in? Because this is where we are storing our capital. And when something is so good.

Usually the maximum is set up by not by us, is by the government. They have the rules on how much you can put into a particular policy. And what we wanted is to put the maximum amount of money and the minimum amount of death benefit. That's like in a nutshell how you design this policy. Again, if you have further question, Book a call with the coach who invited you for this webinar and have an expanded conversation and why this tool works. Well, it's kind of like real estate if you think about if you own a property, no matter it's a rental property or your primary residence, you're going to put mortgage into this property. And when you put mortgage pay mortgage every month diligently, hopefully you're going to build up equity. And with equity that you have in this property, what you could do is you can collateralize this equity with someone else bank. You could probably get something called home equity line of credit or heloc. You can access money from it. Does that sound familiar? A lot of people probably are using this as real estate investors to use money. So it's very similar with that. If you have a whole life insurance contract that is guaranteed to pay out of a death benefit by age 100, well hopefully you live a long life. But if you say I pass away by age 90s, the death benefit is guaranteed to pay it out. So you going to pay premiums into this policy. And there is something that I just mentioned, a cash value going to grow within the policy. Do you remember what had the cash value to be by age 100? So here's your death benefit and you will have a cash value. Cash value has to grow every single day to be the same as death benefit by age 100. This is the contractual guarantee. So your cash value is kind of like equity within your policy. Because life insurance company has to have that cash value available because they can be saying that if this person pass away this day, I have to come up with all this money out. They kind of have to put a reserve fund to start accumulate to pay all this money that will guarantee to pay out. So this cash value is always growing. Remember the key that it has to be the same as death benefit. So when we design this policy, your death benefit going to continue to grow. If you have a moving target and you have to reach the moving target by age 100, that's how we can achieve this compound growth of this green dotted line that going to grow until the rest of your time. So when you wanted to access money is very similar with excess equities in your house. Anytime you can access up to 90% of your cash value, which is 90% of this dotted green line by using your cash value as a collateral. But the lien, what is the lien now? The lien is your death benefit because life insurance company going to outlive us. They've been around for 176 years. If something happened to you, the death benefit will pay out. And the death benefit can wipe out what outstanding loan and interest that you pay. So life insurance company is willing to lend you up to 90% of the cash value. However, if you have a house, do you if you want to collateralize your house equity to learn money out, what does that mean? Well, we all know that if you wanted to borrow money out of your equities in your house, you're going to go over a lot of lenders documentations. Remember how your house is viewed as the lender, the lender is going to ask you a lot of questions. You probably cannot get away from all that lengthy documentations to apply for qualification to access the equities in your house. Because the underlying lien when you borrow money from your house is your maybe your income or your other assets. But when you borrow money from your life insurance policy, you use cash value as a collateral. Your lien is very safe. Your lien only go up one direction and whatever being grow will be locked out. But with the house as a collateral, your equity might go up, might be go down. We all experience that, right? So who is a banker in your life and who has a control and who makes the rule when you use a whole life insurance policy as a tool that you can access the 90%, up to 90% of your cash value with no question asked as a policy loan, that's how you can have your money growing but you can still access money from that.

Yes. And it is the unstructured loan. That's right. That's a very good point. So Nelson said this actually should not be called a life insurance policy. He said this is a misclassification. And I totally agree with this. He said this should not be called a life insurance policy. It should be called a personal whale house of wealth system but with a bonus death benefit. And I love that. So what we wanted to create is your money that always growing uninterrupted and compounded within your system with your wealth system. And at the same time you become the banker and the co owner of the bank. And you can collateralize and you can borrow money from it. You become all four characters of the financial play. It's very similar with the line of credit. You can access money and pay it back, but your policy is always growing. Remember the financial tailwind, Remember the financial environment that you are in. When you use a home equity line of credit, your line is flat unless you requalify. And when you use A home equity line of credit. We pay the interest. Who gets the interest? Someone else Bank. Right. But when you use this system, you borrow against it using a policy loan. The interest goes to the life insurance company that is mutually owned between all the participating policy owners. And you can have your money always growing and you can still access to it. And you also have bonus as a protection on that. So wealth has got to reside somewhere. Where would you prefer to have it reside? And on page 85, Nelson says a free contract with other free persons, life insurance companies as well. From this basis of financial operations, you can do any of the other things in life that you desire, which certainly includes real estate investment as well. All right, so I'm going to take a quick pause before we dive into case studies.

Are there any questions coming up?

Jingen so far we're pretty good. Our team's done a great job just kind of monitoring the Q and A. I think you are good to continue so far.

Perfect.

So there's a question if you want to address and it's a good question. The question is in is by Jeff and he says if the mutual company becomes insolvent, then what happens to your life insurance policies? In null and wide.

Yeah. So it's very likely. Thank you. Sarblo. Is very likely that a life insurance company is bought out by another life insurance company. And a contract is a binding contract is grandfathered if it's bought by another company. But whatever you have within contract should not be changed. But anything you want to add? Sarblo?

Yeah, I just want to say so there is a organization which is nonprofit organization called Assurus. So all insurance companies that exist in Canada, by virtue of them being in the business, they have to be member of assurance otherwise they cannot operate as a life insurance company. And assurance is a nonprofit organization. And role of assurance is not to protect an insurance company. It falls below their reserves and becomes financially unstable. Job of assurances if the company falls below its reserves and becomes financially unstable is to take your policies and put it to a solvent life insurance company which is running well above the reserves and assure US guarantees 90% of your promised benefit, whether it's cash value death benefit. So if you have a million dollars in cash value assurance guarantee is 90% or up to million dollars, whichever is higher. If you have $1.5 million in cash value assurance guarantees 90%. If you have $2 million in death benefit assurance guarantees 90%. Now that's the worst case scenario. Now your wealth must reside somewhere. That's the worst case scenario. Of wealth being residing inside an entity like this. If your wealth is residing inside a bank or a banking system, conventional banking system, and the banks fail, what's the worst case scenario there? See, everything in life that we do is a measure against what someone else is doing. So compare insurance companies worst case scenario with where your wealth is sitting and their worst case scenario. If you think about 2008 financial crisis, you must have heard a lot of news about banks failing and banks needing bailouts.

Now, how many or how many of you have heard news regarding insurance company failing insurance companies needing a bailout?

If you have, please share in the chat. But Jenjan, that question came up and I said I'm going to answer that for the benefit of the group. But since you said, you know, if there's any questions, so I just want to pop in quickly and answer that. But thank you. I'm learning so much. My favorite blind spot is number six.

Is yet to come.

Yeah.

Awesome. Thank you so much. I want to take a little break and we're going to dive into two case studies and I want to remind everyone that when we dive into numbers, a lot of time, a lot of questions coming in, what I want you to say is maybe save your question until the end. I'm going to invite Salvador and the rest of our team to answer all your questions so that you're not typing the questions while missing out what we're talking about. Sounds good. Awesome. So I am going to continue where I was left. All right, so going to dive into case studies. All right.

So the first case study that I am going to walk you through is my client. Her. I'm using a different name, but let's just call her Tina. Tina is very young. She's in her early 30s. She works in a film industry. She works very hard and she's a very savvy real estate investor. She wants to build wealth. She doesn't want to do what everyone else telling her to do. So even though as a young age she already acquired three real estate properties. Now one of them is with his family as well. So he's kind of the person, the first person in the family that encouraged the family to do real estate. So I met her at a real estate event.

Immediately bought the book becoming your own banker. And we just booked a call in two weeks. She finished reading the book. She's blown away. She said, jingjing, this is something I want to do and I want to build my capital within the system for my future real estate endurers. So.

We actually started a policy Less than two years ago. But with the policy, some policy, we can backdate the policy. So she already paid the premium for two years. So when we started the policy, she looked at her finances. She said, okay, I feel very comfortable to put in $6,000 a year into a policy. So $500 a month, that's her comfort zone. But knowing going through all those implementations and the coaching sessions, she said, you know what? Because we have enhanced design that can bump up. She said, you know what? I really wanted to try harder to prioritize my spendings. I wanted to really achieve this $10,000 a year. So, so very good. She has been putting policies for 10,000 the first year and 10,000 the second year. Now, lately I received a call with her, so I did a policy review meeting with her. And, and her situation is that because she's in the real estate investment world pretty recently, she hit pretty hard with the rising interest rate and she faced a very, very tight cash flow situation. And she just be very honest with you, with me. She said, jen, Jen, I know this is great. This is something I want to do. But to be honest, I'm not able to put in $10,000 a year. This year, I might look at what is a minimum. So for those of you know that when we design this premiums into the policy, there's a lot of flexibilities that you can put. There is something called minimum required premium. There's also a portion called a paid up addition premium, which is a flexible part. So when I look at her situation and I just asked her this question, and I said, tina, are you comfortable with $220 a month? And she said, yes, absolutely. Jingjen, I can even put that money from my own saving. In fact, my car insurance is. Is paying similar monies per month. I can definitely do that. So I said, all right, let's switch your annual payment of your policy into $220 per month. Is that, is that okay? She said, absolutely. Because the thing is, her base premium on an annual basis is around $2,500. So you can pay the base premium annually or monthly. So we're going to take care of that by the life insurance company automatically withdraw $220 from her bank account. That is okay. Now the other portion, which is called paid up addition premium or PUA premium, she has around 3,500 to $7,500. So Tina has already successfully putting in two years premiums. So she has a base premium. She put in the $75,000 paid up addition for the first year she also put in a paid up addition. For the second year she has increased her death benefit. And remember what has a cash value be by age 100?

Sorry, I can't see the, I cannot see the text box. Your cash value has to be the same as your death benefit by age 100. So she already built a pretty good foundation of her policy. Now what she need only need the base premium is $500. What we need to find is see if we can find additional money that can find fund her paid up addition. Does that think, does that make sense? So the question that I asked Tina to have this exercise is I said can you think about the recurring expenses that happens every year no matter on you personally or on your, or your related with your real estate. So Tina said Yes, I have three properties. So I'm paying property tax more than $7,500 a year for all three properties. And I also have house insurance which is going up as well. So approximately with my house insurance, my auto insurance, that would be more than $700 a year as well. And besides that, the list that goes on, I have property management fees and maintenance fees. I also have contingencies. That's a great Tina. Now let me show you how even with $220 a month minimum premium, you can still build a bigger and better financial future by maxing out $10,000 a year. So let's use annual property tax expenses as example. So normally what Tina does is she's going to saving money from all three properties, save this money to be $7,500. And then what she's going to do, she's going to flow this money to the commercial bank.

Money's gone, paid off for the property tax. And what she will do the next year is that she's going to save, save, save again for different properties of course throughout the year for another $7,500 and then throw it to the commercial banks to pay it out. And, and time goes on, she always end up with zero line just for the property expenses. Does that make sense so far? So what I suggest is that Tina, let's redirect the $7,500 that flows away from you every year just by paying property tax. Let's use that $7,500 to put in as your third year paid up premium, paid up addition premium. So what this does is it buys you a block of permanent death benefit which is the guaranteed money to your family. If you live a long life, your cash value will grow to be the death benefit by age 100. But if something happened to you early, prematurely, your family is protected by this additional block of guaranteed death benefit growth in your policy. So she said, okay, so, so if we put $7,500 into the third year premium immediately, she can draw out a policy loan. She can use that money to pay for her property tax, all three property tax for this year and the next year. When she start to save this property tax money again from her positive cash flow from all her rental properties. Instead of saving that money in a commercial bank, she's going to save that money back to her policy in the form of policy loan repayment. When she pay off this policy loan, can she now draw $7,500 for the next year to pay for the property tax?

Problem solved. And think about that. The good thing is Tina does not have to come up with all $7,500 all at once. She can do that throughout the year. If she has a property tax due in April for this property, she can do $2,500 first, and she can do $2,500 for the next property later on. She has total and absolute to do that. And this is just the third year. The fourth years come along, Tina can pick up another recurring expenses that happens every year that the property insurance or auto insurance that she start to build up in someone else bank, and she's going to throw away that money to someone else bank again. Those money just never flow through her hand. It just flows through her hand. It just comes in and go. So instead of doing that, can she use that money for the fourth year's paid application premium?

You see what I mean here? So the question is, does Tina has total and absolute control in the situation?

Is Tina able to flow the max of $10,000 to her system for the next few years and build a bigger and better financial future?

And also if Tina's cash flow situation gets better, can she continue to expand her warehouse to grow more?

So hopefully this short little case study that we did with our client will shine some.

Ideas for you. Because Nelson says the only limitation is your imagination. So even for someone who has a very tight budget, even with a commitment of only a little bit over $200 a month, you can still do this.

All right, so when talking about a personal real estate investor with a tight budget, I also want to invite my teammate Henry to walk us through with a real estate corporation case as well.

Thanks. Thanks, Jen. I'm so excited to share with all of you this concept about harnessing and maximizing your real Estate portfolio inside of a corporation. Now, the problem is that when most real estate owners have incorporated their real estate portfolio, they miss a very valuable component to enhancing their real estate portfolio while inside of a corporation. Now, some of you may notice that my voice is quite off today and it might be because of what I have to share with you is controversial or it may upset some people. My vocal cords have decided not to cooperate with me today. So I do apologize for all of you who are listening. But you know, the show must go on and I've just decided to use my Batman voice tonight. I'm just going to share my screen.

So we're going to talk about harnessing and maximizing your real estate portfolio that's inside of a corporation. And we're going to talk about a client of ours. His name's Kevin and he's age 40. He owns a real estate corporation with properties in that corporation. And his approach to building wealth is to rebuild properties to fix and flip.

Now, obviously this case study you're going to see is for educational purposes and is specifically to his situation. Just want to make sure you speak to our team members or financial professional on your own very specific situation.

So most recently, he completed a soul and sold a flip deal that gave him capital of $600,000. Now, one of the things related to all of this is Kevin was extremely frustrated. He grew tired of depending on commercial banks, especially when it came to constantly needing to pay even professionals just to put, you know, pay money to them just to put his financial information together.

And all of that is because the banks are requesting it if he needs financing on those deals. And that takes a lot of time, so it ends up losing out on deals because getting financing usually just takes such a long time.

So, you know, just type in the chat from you going through this personally corporately, are you frustrated depending on commercial banks? Just type why if you are and if you are not.

So I see a lot of whys which you guys are in the right place here tonight. Now, he decided to do what was best for him instead of doing what everyone else was doing.

And so here's the process everyone else follows. You see, he has a real estate corporation and on the right side he has his next deal in line and he has a pool of money which is $600,000 from that deal that he's closed. And that's his liquidity that he has available to use.

Now, with that cash, most people will send it to the commercial bank. And when it goes to the commercial bank, maybe you don't have enough for that next deal because it's just so exciting. So what ends up happening is that he would or most people would end up getting additional debt to finance enough or bring enough financing to fund that next deal. So that's the sources of money that goes into funding the next deal. This is what everyone else does.

So he just decided he didn't want to do this anymore. He realized that there was such a pain point because of the commercial banks. What everyone else was doing was frustrating him.

So he decided to do what was best for him instead. He still wanted to invest in real estate and do what he was already doing.

The only thing is this time he chose to take control of the banking function. He wanted no part of outsourcing his money. He brought managing his money in house instead of outsourcing it. He doesn't want to count on the bank anymore.

So this is where becoming your own banker comes into play. And as you know, over 500,000 copies have been sold. It's really worth your time to go through and read it. Now let's talk about what this process looks like. If he decided to take control of the banking function himself, he still has the real estate corporation. He still wants to fund the next deal. This is not going to compromise what he's going to do. He's still going to be able to do what he wants to do. The only thing that's changed is he's becoming his own banker. He's building his corporate banking system. He's cut out the middleman or the commercial bank, let's say. And instead that is what is being the funds from his corporate bank is being used to fund that next deal.

This is the anti bank and this is why it's so powerful.

So what did Kevin's anti banking plan look like? First, the $600,000 in proceeds that he got, he decided to put the $100,000 per year for six years. So he's melting that $100,000 over six years into his system.

And by putting that $100,000 into his corporate banking system instead of reciting it in the commercial bank. Well, let's take a look at that comparison. To compare. It's not about the rate of return. Let's talk about the comparison between where he is reciting his money. He has two choices now and let's show that choice. Where do I want to have my annual $100,000 residing? Well in the commercial bank on the right side you see here day daily increase or interest earned from Mr. Commercial Bank. I'm sure. All of you know or can experience it. It's probably not as much as what you can count on your hand. It's quite low, basically zero. Whereas the same $100,000 that is residing in his commercial, his own corporate banking system is increasing on a daily basis at $32.84. That's his quote, unquote interest earned. Now, if he uses the money, which is what most people are used to seeing, if I go to the commercial bank and I withdraw the money that I'm using, how much do you have to pay on that interest? Most of you will be thinking, yeah, I don't have to pay interest on using cash. It's zero. So the net change in capital is $0. Well, what does that look like in his corporate bank? When he's put in the $100,000 in the first year he can access while his funds is growing on a daily basis, continuing at $32.84, he's getting charged $14.39. So the boogie interest that you have to pay to use on in terms of the money is $14 and 30 cents, which is less than the 3,284 that he's earning. His net change in capital is $18.45. I mean, type in the chat yes or no. Would you rather your own bank or the commercial bank who's coming out ahead.

And not even changing anything other than relocating his next year's deposit of $100,000, that daily increase has gone from 3,284 to 4,268. And if he borrows the same amount of money for using it, it's $14.39. If we do some really simple math, that's approximately now $28. And what's the difference between the commercial bank? Is the commercial bank offering him the same thing for depositing his $100,000?

No, it can't even compete. Now, let's even look at this standpoint. By you, by funding his deposits into his family, his corporate banking system, the dividend in that first year is 4413. I'm not sure if there's any commercial bank. When you send them, your deposit is paying you a dividend. So that's why it's zero dollars. And by virtue of setting up your own corporate banking system, there's a death benefit of 2.389. Well, for him million. And when you deposit money and you've withdrawn the money in the commercial bank, there's $0. So we're not even talking about what's my rate of return or my investment? We're talking about the choice that you now have available to place your money in your own family banking system.

So here's the immediate tax benefit for him.

First of all, for those of you that don't know if you have access to cash that is sitting in your corporation and you put it towards investments like a bond or interest or GIC, the CRA has set up rules that taxes passive income at 50%.

So if that's the case, when Kevin decides to put his money with the commercial bank and product like a gic, his money that he's going to get on that interest is 50 going to be taxed at 50%. Let's take a little bit of a difference when he puts it in his corporate banking system. While this daily increase that you see is not taxable, it's growing on a daily basis that you have free access to use and it's not taxable.

Well, what about at death? Well, without his corporate bank, the government is ready to pounce on taxing his gains that he's built his wealth inside of his corporation, including his corporate, his portfolio and what he paid for it and what the fair market value is. The government's just salivating, waiting for their payday. They're very, very patient.

Now, what's the difference if you had money located in this corporate banking system? Well, that death benefit is also not taxable. Now, I just have to make the caveat because this concept is getting so popular, we've got to make sure it gets set up with the right professional. And our team here at Ascendant Financial, we do a really good job to make sure things are set up properly. Now, after six years of putting capital in his banking system, it's strong, it's powerful. And most of the concerns that people have is like, well, I have to fund premiums forever. Well, you can see, especially from what Ginger talked about today, you have a lot of choice and options. If you decide to stick to the minimum and take advantage of the minimum, then your banking system is going to give you the minimum. I'm not sure why you would expect any different. Whereas if you take the maximum you get to offer, you're going to open up much more choices for yourself in the future. And in this case, Kevin decides to do it and take the advantage of it. And so his banking system is strong. And what happens when his banking system is strong? Let's take a look at after he's put in $600,000, and let's compare if he decides to put no money in, versus he continues finding a way to put his maximum that he puts in $100,000 and that's going to be in year seven, which you can see at the bottom. So by putting nothing in anymore after 600,000, his cash value still goes up $34,000. I mean, type in the chat, would you still enjoy. Who, who if you, would you enjoy having $34,000 increase in money by adding nothing to the vehicle, type in the chat if you would love to have that as a yes.

We have a lot of yeses, Henry. I love it. Absolutely. Yes. Yes.

Thank you, Jen. Jen. Now let's take a look at this difference over here. By putting in the $100,000 in his capital, he gets an additional increase of that 33,000. So ultimately when he's putting more money in, he's getting more access to it. He's not losing any of his options. But if he decides to, for whatever reason to not put any more money in, I think by year seven, I'll still try to have a conversation with him and tell him that he might need a psychiatric evaluation to realize if he's putting money into his banking system and he doesn't want this extra 33,000. You know, I'm not sure what I need to, I might need to go over to his home to twist, twist his arm and get something going here. So what happens now when Kevin decides to take passive cash flow at 65? And again, it's still important to really set this up with the right professional. And we're walking with the assumption here that let's assume he dies at 90. Now in statistics Canada, the standard age for many males is 85.

The only amount of money he's taken away from the commercial bank to move to his corporate banking system is $600,000. Remember it was always sitting in the commercial bank. He's just moved it to his policy system, which is $600,000. He didn't have to find new money to put in, he just transferred it. He took it away from the commercial banks because they were not giving him the same benefits that he was going to get by leaving it there. So he can tap into his corporate banking system at 65. And just from the calculations that we can perform together here, he is able to receive an annual tax free cash flow. Because tax free cash flow, it's not like cpp, it's not like guaranteed income supplement. It has no implications on your old age security. It's not declared for tax purposes because it's not income. So it's tax free. 41,000 per year. And if he lives until.

90 years old, then this totals the amount of money that he's able to extract out while alive to spend it tax free is $1,071,000.

And there's more.

On top of that when he's finished extracting the money and spending it while he's alive. Because of how we've designed the system for him, there's still a remaining death benefit of 1.3 million that can be used to bless his family, pay the taxes that he can't get out of and donate it for charity reasons. It doesn't matter. He has a choice in leaving extra money behind instead of putting his family in a position to pay for his debts or the challenges that he has gone through.

So let's show that benefit. $600,000 went in.

2.4 million goes to him and his family or his collective. So doesn't it come to this point where isn't becoming your own banker logically? Obviously type in the chat yes or no.

Awesome.

Yet lots of yeses. People get it.

And there's more. I know this sounds too good to be true, but is just why this is so powerful, this tool that we use. There's a very special tax code exemption for Canadians.

Now unfortunately, very few tax professionals really have the knowledge, training and experience around this special exemption. Now, tax professionals are very skilled and experienced around the government's tax code. However, most of the time they haven't looked outside of the tax code. And that's where we come in to bring in that value.

You see, there are two standard ways to get money out of a company. The first way is a salary. And I'm sure if anyone who has a corporation, when you take money out of in the form of a salary, you've got CPP. And just so you know, there's CPP1 and then newly introduced from the government, there's CPP2, now there's EI, there's income taxes. And that's what's going to happen when you pull money out in the form of a salary or a corporation.

The second option, to avoid paying those type of additional I'll call taxes.

Options include doing what's called an ineligible dividend and that's going to attract its particular dividend income taxes. Now, with the right professionals who actually embrace this concept and truly understand the importance of keeping wealth in the family.

They can harness this special tax exemption and it's called the capital dividend account.

So what is this Capital dividend account. Well, let's use the example to walk through. At Kevin's age, at age 90, there will be a special exemption created in the amount of $6,050,000.

And with that right professional, including the component of tax planning and implementing the concept of becoming your own banker. This allows him to extract, or sorry, his family to extract 6 million. Option one is to come out immediately from the corporation tax free. It's not stuck in the corporation where the family has to take a salary or the family has to take a dividend and pay taxes to get that money out, so it gets to come out tax free.

I mean, alternatively, another choice can be made where his family, his children, his grandchildren, his shareholders, if they're structured properly from a tax standpoint, they can decide maybe to draw an even amount of money to come out like $500,000 for 12 years. How many of you would love to set up for your family something like $500,000 to come out tax free every year? Isn't that an amazing fund that you can leave behind, assuming when you've graduated from this planet. So type yes in the chat or no if you wouldn't.

Awesome.

So wouldn't you want to have $500,000 of tax free money to spend personally, not even corporately?

So when you build and fund your corporate banking system properly for the long term.

You can kick the banks out of your lives.

If you're focused on instant gratification, this process isn't for you. If you want to be able to tap into all of your money today, this process isn't for you. The reason why you want to do this today is because you know in the future and what I've just shared with you is so vitally strong to building the legacy for your family. This is why it's so important.

So you have to want better financial control for you and your family now and into the future. You have to believe you deserve to be in a better financial position.

I mean, if you don't.

Someone else is going to take control of your hard earned money for you. For a lot of you, you've probably realized this now when you've seen randomly the government decides to introduce new bills and laws that you've never even voted for just to introduce and take more money away from you. Or when the bank of Canada decides to increase interest rates or keep it simple and not increase it at all like they did yesterday, you're at the whims of their control. Someone else is controlling all of the way that your money is leaving you.

And this is why you want to make sure you take the next step to become your own banker.

Jingjin, I'm just gonna pass it back to you.

Thank you so much. Henry, let's do a value checking. Thank you for using your hard voice. I get used to this voice now. Didn't Henry bring us a lot of value? May we ask our audience to put type in the chat box? If Henry bring you a lot of value, please put a 10. Oh, we got 100. We got big numbers. Henry, that's fantastic. Thank you so much for.

Adding value to our community.

Thank you everyone.

All right, I'll quickly take us home and then we will do Q and A.

So.

Give me one second. So. So what I wanted to say is, you know, successful real estate investors all have a great coach. Let me see. Where am I? There we are. Can you see my screen? Okay, guys, successful real estate investors have a great coach.

Perfect.

Okay.

And please don't try to do this alone. You know, household and business owners who do this right all have a good coach like Henry and the rest of our team. I recommend to getting a coach and when you choose who you are going to work with, here are some things to think about. Number one, you've got to be careful about the life carrier to put your policies with and ensure that your policies are designed properly. Next, most people who are selling you life insurance do not have expertise in this area. So make sure that you work with somebody who specializes in becoming your own banker. And we strongly recommend you to choose someone who's authorized infinite Banking practitioner with the Nelson Nash Institute. Now the question is what is the cost of doing nothing? What is the cost of just one more year of all your money leaving your family or business permanently? What's the cost of giving up all the interest that your money could have earned otherwise? So schedule your call with us. It is included with this webinar and if this process looks awesome. But how will I know if this works for me? If this is one of your question, I would encourage you to schedule your discovery call by texting to this number and we will give you a PDF book of the end assets for Canadians. And with our coaches you are going to get lifelong mentoring. We have quarterly group client coaching sessions. By the way, there's one coming this Saturday. We have a lot of resources like I mentioned, we have the podcast with the book, we have the YouTube channel and we also have a unique client education portal that is on your fingertips 24 7. Once you become a client and don't take the words from us, we have 926 Google reviews and you know, if all this process did was keep more money, keep more capital in your family or your real estate business, would it be worth it? If create a peaceful stress free financial life, would it be worth it? If Nelson is here, he will say the infinite banking concept must become a way of life. You must use it or lose it. So get a great coach everyone and thank you so much for being with, being with us tonight at the webinar. I want to invite all our coaches who's working very hard at the background.

And if there's any questions in the box, Q and A box please. We still have some time. We can go over those.

And if you really like, you think we add a lot of value for you. We love Google review. This is how we grow our business. If we add value to you, we hope that you're not keeping us as a business. So thank you for our teammates who put a Google review so you can choose a location that is close to you and we would love to, to, to, to to see you leave us a review. Thank you so much.

Hey team, both of you guys. Yeah, Ginger and Henry, thank you so much. I think the chat speaks for itself. We got a lot of value and we got a special appearance from Batman himself. So I think it's pretty awesome.

I think the team did a pretty good job of, you know, cleaning up the Q and A's. There was one question that came up that I think would be good for the team to answer. Right. It was that, you know, the, the person that we were speaking about in the case study and the personal side, they were using the, the policy to recapture one of the permanent expenses which is the property tax. Somebody brought up a point that hey, you know, but isn't he now paying or isn't she now paying tax or sorry, interest on that? So Jingen, if you can just go over that thought process that yes, there is interest being paid but why was Tina still financially ahead? I think that would be kind of a good point to drive home.

Who want to jump in to answer that? That's a great question. Yeah. I think in the big picture we're looking at the flow of the money and especially Tina is at year three. His policy, her policy is quite efficient. You know, Nelson always say, Nelson's rule number two is always put the piece back on the shelf. You always should, should whenever you draw a policy loan, you always should.

Have a payment plan in place. You always should pay yourself more interest rate in Fact than what the life insurance company charges you. So I did not go into the details, but the property tax is actually more than $7,500. So it's a little bit extra. So those extras, you can use those money to pay for the interest that you wanted to occur. But look at the bigger picture. If you flow that $7,500 into the policy, it builds your bigger and better future by purchasing a permanent block of the death benefit. Anything to add on, Tim?

Well, let's go back to Henry's example, right? The one example that Henry showed in terms of in first year when the daily cash value growth inside the policy I think was $32 per day. And then they had, they, let's just say they had need for capital, they access capital. But the daily interest on policy loan was $14 a day.

So just think about that. Your growth is 32. The daily interest is 14. Are you not ahead financially in this transaction just by initiating a policy loan? But that's not the reason why anybody should be doing this. So the whole essence of becoming a banker is to recapture the interest. In that example, the policy owner recaptured the interest $14 per day inside the growth of his policy, which is $32, but $32 a day. So there was a financial tailwind pushing him ahead. So the interest is recaptured. But doesn't matter what the rate of interest you are paying to commercial bank, how much of that interest are you recapturing today? Even if the rate is 0%, what percentage of the 0% are you recapturing?

And then the additional value is going to come in when the policy owner is going to take that policy loan by the assets or investments and eventually also replenish the money back into his system by paying back his policy alone so that there's more money available in the future to use the policy for other bigger things. So the becoming your banker is a process of recapturing interest. You borrowing money from the bank is a process of paying interest. You paying cash for the things that you need is a process of losing interest. So you finance everything that you buy. You either lose interest, pay interest, or you have a choice to recapture interest. Using becoming a banker recapture interest, make sure that interest is working in your favor. Paying interest or losing interest is the way of interest working against you.

So I hope that's so well said. Love it, Sarlo. And, and then there's there's like we say, there's so many different.

Situation. We all know life happens and you know as this you, you're buying Back some time as well. Right? Situation might change, you might have more cash flow. You can, you have a room that you can flow that money in. So there's so many different variations in this. That's why it's called infinite. Banking concept is infinite.

I think both, both those answers help a lot as well. Because the other scenario that I believe is in the chat, the gentleman that posted, it's that hey, like what if you can't pay back the full 10,000 and you only pay the 5,000 back? I think it's very powerful that like in both the examples it was pretty clear that no matter what you're financially ahead. And you know, can you take a vacation on paying your property taxes as it is now, are you in control of having the ability to do that? Let's be very honest, Henry, I think that visualization of like the puppeteer that you had in your, in your presentation, that's quite literally what's going on. So in this example, Jingen, you covered it really well. You are the depositor, you are the borrower, you are the banker and the bank owner. So now you get to set these rules. So yeah, in honestly in your, in your scenario where you can only pay back the 5,000, quite honestly you have more control now than you did before. So not only are you financially ahead, but you also got control.

Right?

Sorry, go ahead.

I'm just going to say just to add to that, you know, and I, I saw that in the chat too and the gentleman had legit concern. Right? See and Ginger, you asked a really good question. The question is, have the increase in interest rates if impacted your cash flow? Well, is it truly the increase in interest rate that has impacted your cash flow? Is it? Or is it your ability to not have control on the transaction impacted your cash flow?

Not.

It has nothing to do with the rate. It's got everything to do with control. Rates go up, rates go down, markets go up, market goes down. One thing continues no matter what. That's function called banking. It continues no matter what. Someone has to control that function for you. And if you're not the one controlling it, interest refluctuation will always impact you no matter what. But if you are the one that is controlling it, interest rate fluctuation is not going to impact you. You have to be in total and absolute control on the transaction. That's when these things become stress free.

Awesome guys. Thank you. Henry, just a quick clarification for your example. Somebody just asked, hey, in the 600k example, was that all put in at Once and then a follow up was. Was it only put in for 5 years? So 500k. I believe it was for the 6 years, if I'm not mistaken.

Right.

If you can just clarify that, please.

So it's 6, 600,000 going in at 100,000 per year. There's particular ways that we can, I mean I designed working with it to melt that amount in and you can get at least two of the years in right up front. So 200 of the 600,000 can go in. The other 400,000 is more of a strategic plan of knowing what he can do now. And that's a plan that from coaching we talk about on moving him to still stick to his plan to transfer that money over that duration. So what he does with it, he obviously wants to preserve the principle of it.

Awesome. And I think just for time's sake, we have time for maybe one more question. But it's probably the perfect question to end off with tonight is and anybody from the team, please feel her jump on, jump in on this one. The question is still making the way around my head. Why isn't everybody doing this? Is there some catch?

Well, that, that's, that's an faq. Right. So let's ask folks who are already clients and worsted in the webinar may ask all the clients to put in the chat box what we teach. Is it exactly how it is or how Nelson taught us? And how we teach it based on what Nelson taught us is exactly how it is. So please go ahead and put that in the chat box.

Okay, let's see. I'm seeing a few people that I recognize here. So Neil says a thousand percent, which is awesome. Neil, good to see you. On Ashley says yes. A lot of yes. Derek says it's better.

Your son says yeah.

Yep.

This is nice to see you on the webinar.

It works well. Taking policy loans and paying them back from Robin. The ones who know are doing it from.

Oh and then Captain Wimson says because it's a lot of people who don't know about it. Yeah, yeah.

So there you go. Proof is in the pudding. So it works. And it has worked since 1847 in Canada. It's just that we didn't know about it.

But now we do. And now you do. The question is what are you going to do about it? Are you going to book that call and have a conversation? And don't bring any money to the conversation because we just want to make sure that we are right fit and we can truly help and Add value to what you want to do.

And we do a pretty good job in doing that, as demonstrated in the webinar today by Henry and Jenjan.

Yeah, there's. There's someone else in the chat that. Sanjay, it's good to see you on the chat. He says it sounds complex on the face of it, but once you spend the time understanding it, that's when you get to know its value. And I think that sums up really well. You have to spend the time to really understand what's happening here. And I think, you know, if someone from the team can put a link to the book, Nelson's book, I think that's one of the best ways to learn more about this. And then once you've read the book and learned more about it, like, as you can see, there's a lot of friendly faces on the webinar here. No one's ever got hurt. Guys, speaking to one of us, I promise you. So you guys can, you know, speak to any one of us and, you know, get. Get your questions answered.

Right.

We're more than happy to help you guys. That's what we enjoy doing. But awesome, guys. I think that's all the questions that are answered. Let me just double check here.

Let's do one more thing. Let's. Let's ask who's still with us. We still have 99 people with us, which is fantastic. We'll love that. Let's see who's booked a call so far. I know one gentleman messaged in the chat that they booked a call, so please put in the chat box. Just type in yes. Why? Why? For yes, if. If you booked a call. Because we're looking forward to having this conversation. This conversation gets us excited.

Yeah, you're getting. Actually a few. Yeah, a lot of wise.

There you go.

A lot of people booked some.

Yeah, actually, we have a call book next week, so. Yes, I'm looking forward to the conversation.

Lol.

Yes.

That's awesome, guys. And I think, you know, as a last note, if we can just. One more time for Jin and Henry, our hosts for today. Just give them a quick value check. If everybody got some value, just throw some tens in the chat, let them know how much value you got. I think that'll be. Yeah. Awesome.

The webinar was fantastic, guys. Very well done. I loved it.

Thank you, everyone, and congratulations on attending. Your life is about to change.