Inflation Sucks! What's The Most Efficient Use Of YOUR Money?

If you are watching this video and questions coming up. Well, it's good. I like the fact that the money in the policy keeps increasing. You're borrowing money as a loan from the insurance company. I'm curious, what is the rate and why does it make sense to do.

It this way if you're already implementing the process? You've got a policy, a system of policies, you're accumulating capital. You are in a position where you're seeking high caliber opportunities. The upcoming launch of moneyex is and what that mastermind's going to look like, and there's going to be so much opportunity that is created out of this economic thunderstorm that's on the horizon and all of these events that are coming together simultaneously with taxes, volatility, loss, longevity and so much more. This is just one way that people are going to be rewarded during this economic crisis that we're driving head on into versus being harmed.

Okay, let's talk about the strength, the advantages of collaboration. And I can tell you from firsthand experience just how business effective collaboration is. And we're joined today, of course, by Sarblogh Gill, an authorized infinite banking practitioner, great teammate, an amazing guy, a money multiplier who wants to, or as we refer to it as Money X, as Peter will allude to here shortly. We've got Sean Quigg, who is not only an attorney, but he's also an active investor. He really enjoys multiplying money too. And then we of course got Peter Lount, who's an authorized infinite banking practitioner, investor, co founder of Money X. You're probably asking yourself, what is Money X? Well, stay tuned. We're going to share a little bit about that with you. But before we do, I want to dive straight in because, Peter, we were having this conversation before we hit the record button and we were talking about how relationships come together. I refer to it, courtesy of Joe Polish, as the domino effect. So what was the domino that tipped over that led us to all being here today in the topic that we're going to talk about? Share, share that with the viewers and listeners.

Yeah, it really just starts with collaborations, right? And it started with actually a podcast. We were talking about this earlier about you being on podcast and we've had you on many. So one of our strategic partners is Breakthrough Rei podcast. So shout out to Rob Break and Sandy McKay. We had the good fortune of being on an episode there and one of our fellow real estate investors, Sean Quigg, found us there, reached out and made that connection and that the person who picked up the call on the other line, or I guess the video call, the other line was Starflow. And that's where it all began.

It's amazing how those things happen. And then you look back on where things begin and all the relationships that get created and get nurtured and the high caliber opportunities that show up as a result of having ready access capital. So access to money on demand, on your terms, to take advantage of high caliber opportunities. And Sean presented us with a high caliber opportunity and we had ready access to money to pounce on that opportunity. So Sean, welcome back again to the show. And obviously this is going to be all over the YouTubes and the social medias and things like that. So Sean, give us some sense of, you know, your journey and how you connected with Sarblo and then what led us to the opportunity that we all ultimately decided to participate in and then we can expand on how things are progressing with it.

Sure. Well, to start, thank you so much for having me back. I love, love hanging out with the three of you and chatting IBC and Opportunity and like you mentioned, right off the top collaboration. Because it's not that fun to go it alone. It's a lot of fun to do things like this and to work with other cool people doing cool things. And so, you know, it's my pleasure to be back and talk about, you know, my journey with ibc, my journey to today where I'm sitting here with the three of you. So like Peter mentioned, I listened to. I forget the episode number. I used to know it off the top of my head. 106, I think something like that where you, Jason and Peter were on with Sandy and Rob and I was in the midst of trying to refinance a student rental.

Okay.

And it was such a pain because as we all know, the banks set up their hoops that you gotta jump through and there's a hundred of them and I jumped through a hundred and then, you know, I didn't jump through one of them properly and I gotta start over again and et cetera, et cetera. So. And it was a real pain. Like it wasn't going very well. And I remember listening, I listened to the episode and then I listened to it again, like back to back, like, this is incredible. What is this? I texted it to my realtor at the time, like, hey, this could be, this could be the solution. Maybe not today, but it could also be a solution for other student rental investors and anyone who, who's watching today or has had experience with only student rentals, you'll know that banks don't like them. They first, even though they're tremendously good in terms of cash flow and they produce a lot of income, banks don't like the potential for volatility, for tenant turnover, for the risk that is perceived that students bring to. To a property. You know, increase risk of fire damage, etc. Etc. I remember thinking, this is incredible. So I get right on the Internet, go right to the banker's vault. I ordered the banker's vault package. The books show up. In fact, actually.

Well, there's one of them. I've got the other two over there. And I've since upgraded one to the Canadian version, authored in part by yours truly. And I reached out to a Senate and. And I thought for sure that they would connect me with Peter because I lived in Toronto at the time and Peter said he was from Toronto on the show and. But I ended up being paired with Sarblo, which was fantastic. Sarblo, I and my partner Amber got on a call, talked about ibc, and here I am. Sarbo will tell you I was jumping, jumping at it to get going. And you know, in classic Sarblo fashion, take a breath, make sure we understand what we're doing, what we're getting into. This is a lifestyle, this is a commitment forever. You're going to be doing this forever. It's going to benefit you greatly, but you got to make sure you know what you're doing. So that's what we did. You know, we took a little bit more time, figured out how much capital we had to start capitalizing with, and. And then it was time to pull the trigger. And we did. We got our first policies in June of 2020.

That's awesome. And I'll never forget Sarblo kind of ducking into my office one day and he said, hey, do you have a second to chat? And I said, sure. And so Peter and Sarblo and I had been talking openly about, hey, we want to multiply money. It's something we really enjoy doing. And so if there's ever any opportunities that come up, let's talk about them. So Sarblo came into the office that one day and he said, hey, I think I've got an opportunity that's come up and we should have a conversation about it. And then of course, your name was mentioned. And we said, well, why don't we get together and chat and figure out is this something that we want to participate in? And so would you be open, Sean, just to sharing what the context of that was. And the conversation that we had.

Absolutely. So what we were talking about was a private lending opportunity. And for me, I saw it as, as really two things. Number one, you know, I'm in the midst of a deal and I've got to raise some capital. And so I need to work with people who understand business, who preferably understand real estate, and who, as you mentioned earlier, have ready access to capital because that's really the name of the game when it comes to private lending. The second component though really was, hey, I know that there is an entire community out there, people like me who are practicing infinite banking, who have become their own banker, who perhaps have policy loan availability that they're not using. Right. And you know, actually one of the early conversations Sarblo and I had was what's the most efficient use of this money if I'm not paying down debt, what's the best thing I could do with my policy loan availability? And Sabo answered right away, said, make money with it. Use it to earn a return, Take it out, loan it to yourself and go earn a return on it, pay it back. And so, you know, that got the wheels turning. There's gotta be so many people who, like me, have some policy loan availability. Maybe they don't have tons and tons, they don't need it because there are opportunities that I happen to know of not only because I'm in the industry, but also because I'm a real estate investor lawyer, as you mentioned. And so, you know, lots of my clients and I'm in the industry. So I, I see this every single day. People are looking for money, they're looking for people with ready access to capital. This could be a way to generate value and collaborate with cool people. And so I pitched that idea to Sarblo. Hey, why don't we do a deal where you lend to me? We will show the benefits of being a private lender and how profitable it really is. Yeah, and we'll get into those specifics. And we can also show that it doesn't have to be scary, it doesn't have to be, you know, nerve wracking. You don't have to be up at night worrying about the principal and whether or not you're going to be paid interest in this field because generally real estate investors are so interested in making sure their lenders get paid back and get paid so that they can continue on to the next deal and borrow again.

Right.

So it's pretty bad for business to not repay loans. And so I, um, you know, I brought a project that my partner Amber and I are working on. It is a waterfront cottage in terrible shape. Terrible shape. Not structurally. In fact, structurally, it's just fine. It's better than we thought. It's just been neglected. We purchased it from an individual who moved from Ontario as an older gentleman back to BC, left literally everything he had. 80 years worth of possessions was in this, including two bikes, including two motorcycles, a sawage chair, records and records and records. Full kitchen junk everywhere. Took us two full days, multiple people to 40 yards worth of junk removal to get it all out. Even then, that was just to make it manageable. But what I wanted to do was, hey, I know we need some money for the renovations because ultimately, you know, we have a couple of exit strategies on this. Number one, we know because we bought so low, we made money on the buy, which is real estate investing. One on one, we made money on the buy. We got this. We got this cottage for, I think somewhere in the 160 range there, renovated cottages on the same street listed at 399 right now. So we knew. We knew that with a good renovation and a new break wall, and we'll get into why we need that in a minute, that this property would have substantial lift. Right. But we had to get there. We had to get it there. So that involves renoing the property and installing a new break wall. This project is located right. Literally right on top of Lake Erie. You couldn't be any closer to the water. And that might sound scary, but the brake wall, when it's finally installed, will. Will do away with any of those concerns. Absolutely.

And Shashan, I remember distinctly when you and me had this conversation, and right after that, I think I was meeting with Jason, or it was that day or the day after I pointed Jason, I said, this is really good because, you know, one of the feedback that we got from our clients and we've been practicing the process of becoming a banker, the infinite banking concept in Canada for. For many, many years, more than a decade. Right. And then one thing that comes up from our community as feedback is, you know, we've implemented the process, We've taken control over majority of the banking system as it relates to a need for financing. Visa, we paying off debt, the snakes and dragons. Our cash flow is keep going up. We want to look at opportunities where we can deploy this capital and create some additional wealth because we understand that money that doesn't move, it is not worth anything. You taught us this, Jason. You taught us this. You taught us this, Peter. Can you guys show us where you put your money from your IBC system, from the infinite banking system. Well, we put our money into policies and from policies. This is where we control our banking function as it relates to our need for financing, which certainly can include financing investments. So when Sean brought that up, I was like, man, this is like the universe is talking to me. I've heard enough clients say this. And Shawn brought this opportunity. I said, we got to take in. We're going to lead by example. It's not that we're not already putting money to work, but this is a great opportunity for people to a familiarize themselves with, okay, private lending. What is private lending? You know, how does it work? Can we see a real example and what collateral was taken and most importantly, what was the deal? You know, lending is easy, but if you're not lending with knowledge, then you're just basically investing with all the risk. No different than how anybody else would lose money in stock market. If you don't understand what you're doing, then you just not going to get their money back. Right. So the deal was important, but most important was who all was involved to make this happen. And Jason brought a really good point. When we have readily available access to capital, opportunities come up for everybody. Well, the opportunity was not just for Jason, Peter and myself. The opportunity was also for Sean because Sean also had readily available access to capital to payback.

Right.

So it works both ways. Right? So who, not how. So the book right over Jason's right shoulder. So we brought the who's together and we found the right person who had the deal, and we found the right people who had access to money and we brought it all together. So I'm super excited for this recording because this is going to be a great opportunity for us to add more value to our community in Facebook, as Jason mentioned on YouTube. So, Sean, would it be okay if you look at the deal? I know you mentioned a little bit about the property. I'm not sure if you can actually show us in the Google map.

And while we're doing that.

We'Ll talk about, obviously, the specifics, share some of the particulars of the deal so that people get a sense of, okay, what have we put in, what are we getting out? And so on. We'll dive into that.

So as you can see here, this is the address of the cottage and it's on this road that runs along the coastline, or I guess the landline for Lake Erie, outside of a town called Blenheim, which is close to Chatham, which for those across the country is Close to Windsor over here, London and Toronto's off to the top. Right. See there's some, there's some perspective on where the cottage is. And it is got the potential to be this beautiful project, this beautiful cottage because it is so close to the lake. The. When it's done, the back wall is going to be entirely glass. So you know, as you're making breakfast or you're having dinner or you're watching tv, you've got a, you know, a fire going in the fireplace. Your view is the sunset.

And it's just, it's just going to be incredible. Why don't I bring up for us some pictures of what it looked like when we bought it.

Okay.

Which as I mentioned was in pretty rough shape. So this is the view from the street. And you know, it looks calm, a little overgrown, but it's really just a facade for the mayhem that we discovered. Which let me move this.

Start showing you some pictures. So this is what we found when we walked in on the first day. So this is curb appeal. Yeah. This is the front of the cottage facing the road. And as you can see, it's a pretty ugly blue siding. We've got junk everywhere. In fact, the junk was so bad that I couldn't get insurance on the purchase until I had it cleaned out. So we had to hire a cleaning crew to clean the junk out prior to closing. Wow. Yeah. Yeah, that wasn't too fun. But anyways, we got through it. So a couple things you'll notice right away. The roof is aluminum and it's got garbage cans sort of blocking the vents. Likely for animal. Likely for animals.

So not necessarily concerning, but you know, probably not a great permanent state. And you know, there's also this huge tree which you can see is lifting up the, the blocks here and, and probably the general landscape itself.

And otherwise in disarray. So let's, let's get into here. This is sort of the same perspective but turned towards the right. Here on the right we have the garage and just more junk. You'll see, you'll note front and center is a cement mixer and a wheelbarrow that's definitely carried cement. You're going to get an idea a little bit later about what the previous owner used this for. And you know, as a sneak peek, I'll just tell you it was ill advised questioning.

What are those big tires doing on the property?

That's a great question. They were everywhere. There's more of them. There's more of them towards the road.

Probably needed them for his lawnmower.

Well, actually he didn't own a tractor of this size, but he used them for. For a very specific purpose which you're going to see when we get around to the back side of the cottage. Oh, yes. It has to do with what the cement mixer is for, so leave it at that. Here's our garage, which was packed to the gills with. With garbage. Okay, here's a picture from the back. I'm standing or the.

The.

Whoever took the photo is looking at the back of the cottage, basically where the water meets land. And you can see like this thing is not in good shape. These are doors and windows that are boarded up to protect from the waves. Because as you'll see in a minute, the breakwall disintegrated probably 30 years prior to this and was not replaced. So the waves were just coming up pretty violently without any sort of barrier there. Okay. And you'll start to see down here some cement, some unformed concrete, which hopefully we'll see the breakaway here in a second. Let's back to the front. There we go. Here is the former break wall. You can see the wall comes out like here and you've got some wall over here. So what the previous owner was doing was mixing cement in the front yard and then coming back here and dumping it. That was his form of shoreline protection. He used those tires, he filled those tires with cement. And you can't really see one here, but there's one on the other side of this sort of chicken wire type contraption. And he filled those with rocks and cement as just another barrier from the waves. Because as you can see, like this is very close to the water.

Wow.

And completely lacking in all, all sorts of breakwall. So we knew we had a, we knew how to project ahead of us. We didn't quite understand the full scope when we bought. But you know, as we say in this industry, it's problems or profits. So you know, you find a way to solve problems and you do really well. You multiply, you, you know, you money X at that point. So we'll quickly go through, you know, what the interior looks like. This is one of the bedrooms. Oh, wow. Yeah, this is the side of the cottage. All of this cement over here was also self poured. Yeah, pretty rough shape. Luckily though, we discovered absolutely no leaks from the lake. The lake was not finding its way into the cottage.

Yep.

And neither were animals. So here's another bedroom, relatively tiny and just full of stuff. Oh, wow. Yeah, pretty, pretty MacGyvered. But actually these cages are called gabion. Stone cages. They are an alternate. When used properly, they are an alternate to a steel break wall. You basically fill these cages up with rocks like this and you stack them. And you've probably seen this before.

Oh, yeah.

Public infrastructure uses them because they are more cost effective. In any event, this is certainly not deployed properly. So it just looked like he was.

Doing everything himself though, right?

Oh, yeah, yeah. He didn't want to incur the expense. And it's not cheap. Like I have a quote. It's not, it's not fun. I don't want to pay it, but I definitely have to. If I want to do anything with this project, whether it's, you know, flip it, sell it, sell the deal and take the spread that way, or refinance both my private lender and the three of you out and keep it as a short term rental. I've got to get this fixed.

Yeah.

This is the front entrance. When you walk in.

Wow.

Yeah. The whole house looks like this. Not necessarily motorcycles. The individual obviously just abandoned the place. There wasn't attempt to sell the property in a way that you might expect. But that's what investing is. That's what investing in real estate is. When you're doing this type of project, you are buying problems and solving them. Right.

You already have a vision of what you want in terms of outcome, in terms of your own exit plan from the property. And yeah, we understand that there's some work that was required. Sean, are you okay sharing some. Some of that?

Yeah. What we did on the interior was basically take it all down to the studs. There was plenty of mold, turns out, not from the lake. We thought at first it was a lake, but then we kept uncovering what the real sources were. And when we lifted up the floorboards, we could see that there was no rot. So we knew that the lake wasn't coming up. So lots of mold.

Lots of junk. So we took it down to the studs and really what the goal was was to re, drywall, refloor the bedrooms, take out the closets. Now this is a tip I learned from other people that are in short term rentals because ultimately I think this will be a short term rental. The more storage spaces you have for things like clothes, books, personal items, the more likely it is to that your short term guests are going to leave them behind.

Right.

Which then interrupts your business process because now you got to find someone to ship those items back.

Right.

So no nightstands with drawers, no closets. If you take those out, they've got nowhere to Put their stuff other than on actual shelves. Right. So there's nothing concealed. No way to really forget. You eliminate that. So closets came out and that actually increased the size of the rooms, which was nice. The other goal was to, as I mentioned earlier, take the back wall and reconstruct it so it's almost entirely window to get that million dollar view. And you're sitting out there enjoying, you know, maybe a cocktail after work or maybe you got there Friday nights and you've got this great view. There's nothing really more to it than that. In fact, real estate investing should be simple and boring. You know, it's going clear all the junk and then bring it up to its best use. You know, the plans evolved over time. So we've actually decided to move the bathroom. The bathroom's quite small and it's in the middle of the house. Presently we're going to move it. The part of the front entrance that you saw with the motorcycles, we're going to move there. It's going to be much larger, much more room, larger shower with a bathtub for kids. And the place where the present bathroom is is going to be completely open space, which adds more of the open concept feeling to cottage. So it should declutter the interior of the cottage, which will hopefully drive appeal.

Nice.

Yeah, yeah. So there's really nothing much more to it than that. The key though is really making sure you've got the funds to do the project, getting a good team in there to do the demo and then do the reno. The added component to this project is the break wall and that, I mean, we. There's lots to talk about with, with the break wall and the complexities with that and that, that matter is still ongoing. But in terms of the actual renovation itself, nothing overly special or, or extraordinary.

Serblo walk us through the terms of the, of the deal. Like, we brought money together, we put together terms.

Yeah.

You know, what did that look like for the benefit of viewers and listeners?

You know, Absolutely, Jason. So, you know, when, when we all got connected and you know, obviously we asked Sean in terms of how can we add value to what you want to do in terms of your exit plan from the property where it is to move into short term rental so that it's cash producing asset now. And then Sean literally mentioned when he saw the pictures for the. On the back, on the brake wall, that is where the most of the work need to be done. And Sean, correct me if I'm wrong, the amount of money that was required for that project was just about maybe what, $60,000 in terms of quotes that you got with some additional money that was required as contingency for something else, up to $75,000.

What we talked about were two things. Number one, the interior, and number two, the break. So the breakwall, we were estimating between 60 and 80,000. We didn't have a quote, but we had a pretty good idea because we had talked to a few people who built them, and they told us what to estimate in terms of price per linear foot. So we were estimating 60, 80,000, which is a pretty big spread, but that was what we were estimating. And then we estimated the interior to be about 30. Yeah. So what I came to you for was 25,000 to see if you wanted to take part and earn a good return. And then next thing I knew, sorry, well, you had two other partners join you and. And then we raised that to 75. And so what that money's going to do, I mean, we could talk ad nauseam about what that that money's going to. And I've got some progress photos to, to show you in some video, so you can see that we're actually really making good progress using your money. But before we get into that, you know, perhaps we can talk about the actual deal itself.

Sure.

And, you know, the important thing to note here was, as we sort of talked about a little bit earlier, we built a relationship of trust first. We, you know, even though we haven't met each other in person yet, we've done a podcast together. I've now been on the client coaching call, and we've gotten to know each other over a good period of time. And so we built that, that relationship first before, before I came asking for some money on a project. From there, it really came down to what makes you, as the lender, comfortable. Because for me, as long as it's reasonable, I would much rather make you feel good because ultimately I would like your money. And number two, I want to build a lasting relationship where we do this over and over again and we continue to collaborate and generate wealth for all of ourselves and our families.

That's right. You know, relationship is not anything, it's just everything.

Right.

And that's where it all begins. And yeah, you know, our relationship just got started with the podcast. That was just the first step. And then, you know, like you mentioned, we had, you were on, on our Wealth Without Bay street podcast where you share your journey on discovering IBC and how actually you've been using ibc. And then we also had you In a client coaching session a couple of weeks ago where you just went through your whole Excel sheet on money in, money out and what's happening. And the clients really love your example and in fact, you know, you were kind enough to share that sheet and it's, it's posted in a client portal now so that everybody can benefit from it. So Sean, thank you, thank you for that. But yeah, it all started with that relationship building and then we saw an opportunity together where, you know, I, I personally wanted to put some money to work. Not just for the purpose of putting money to work, but also the real purpose was to actually lead by example, showing clients, here's an opportunity, here's the who's that are required, here's how you underwrite a deal, and here's the deal. And then we brought those opportunities back to, you know, anybody that I work closely with, obviously Jason and Peter, you know, we all came in together and we said, yeah, we want to capitalize, we want to put 75,000. So you know, Jason put 25,000, Peter for 25,000, I put 25,000. And the terms of the deals were we going to lend you this money so that you can go put this money to work for your project. You can depreciate your property, have an exit plan in place where it's going to be a short term rental from, from where it is, as you saw as the pictures, is going to look a lot better and you know, someone is going to really enjoy living in that property with that million dollar view. The terms of the deals were so, you know, we were looking at what, six months? Sean and I know we started talking about this last year. It was almost winter and there's no way breakwall could have been set up in winter time. So we were going to start, the project was going to start sometime end of March, early April of this year. Yeah, and we had the deal already in place before that. So where the money came from is it's not our money, you know, it's not my money that's put to work. It's not Jason's money that's put to work, it's not Peter's money that's put to work. The money that's working for us is actually insurance company's money. Yeah, we put our money into our system. And when people hear the word system, people, what is the system? Well, the system is called participating dividend paying whole life policy, which is the tool that we use to implement the process of becoming your own banker. We are putting our system or process to work. Our money is inside the policy growing and compounding. It's growing every single day. It compounds one time per year uninterrupted, no matter what happens outside in the financial attainment world. So we were able to access insurance companies money on demand access. All we had to do is fill out a form and all that's required in the form is policy number, which policy you want to access money from, who you are to put in your name as a policy owner. How much money do you need? Sign it, date it. And the other question that insurance company is going to ask on a loan request is, hey, how do you want to receive this money? Do you want us to send this to you via check or you want us to electronically deposit into your bank account? Just let us know and we'll do it. That's how easy it was for us to access money as loan, keyword being loan. So if you as a viewer watching this video and you have and you had to access money as a loan, look at how you are going about accessing loans and compare it with how we access our money as, as a loan from the insurance company. So when that money came up cumulatively $75,000 between the three of us, what insurance company did was they used our capital, so called cash value as collateral. So money didn't come from our policy, it came against the policy. Our cash was used as collateral. And our cash values are growing every single day because insurance companies are required to fulfill a contractual guarantee. So we are growing our money while we're using insurance companies money. Money was lent to Sean with a promissory note. And the note basically describes the deal.

So Shashank, could you just share with us what, what the terms were?

Sure.

And we didn't have to pay any lawyers to put it together.

Yeah. And non lawyers.

And Sean's a lawyer.

Sean. The best thing, one of the key things that is going to war, people is how is Sean paying the money back to us also? And whose money is Sean using to pay us back?

Great question. Well, before, before I get into answering that, I'll tell you that, you know, the funny thing about a promissory noted is like a contract with a dividend paying insurance company. It is a unilateral, binding contract and it's guaranteed. I personally guaranteed it. So there are some, some very interesting connections in that sense. But you know, when we start talking about terms, I told you I needed the money for a decent period of time.

Yeah.

And you want to make sure that you got a good Enough return on investment. And so you asked for a minimum of six months. So it was. It's a closed term at six months and then open until the eighth month. Yes, it's due on the eighth month. And so what that means is that I'm going to pay you an interest rate in monthly payments. We settled on 12% a year, which comes out to 1% a month. And so at 25,000, that comes up to 250 bucks a month. Those are really the basic terms. The rest of it is the legal mumbo jumbo that no one really wants to concern themselves with. And really, you know, I tell this to my clients. A contract is really just evidence. What really matters is the meeting of the minds. And we had a meeting of the minds. We just put it down on paper so we had. We'd have evidence in case I took off. And of course, one of my corporations is the one that's actually borrowing the money. So my partner Amber, and I personally guaranteed it because I've got no problem doing that. Is my full intent is to make sure that you get paid back and you get paid your interest. And how am I paying that interest? I'm taking policy loans. I'm taking policy loans. I'm paying you policy loans because I don't want to use my money either.

Cool. So. So when you borrow money from insurance company to make sure that, you know, everybody on this deal gets paid at the interest back on the first of every month, which is 250 per person, 750 in total. That 750 is actually accessed as a policy loan. Also no different than how us, we access money from the insurance company as a policy loan and we put the money to work. Now, if you. And I'm speaking to someone watching this video, not us. So if you are watching this video and questions coming up. Well, it's good. I like the fact that the money in the policy keeps increasing. We are borrowing money as a loan from the insurance company. I'm curious, what is the rate and why does it make sense to do it this way? So let's just say, you know, I've tracked my policy and all policies are exactly this same. Whether it's mine, but it's Jason, whether it's Peter, they do the exact same thing. So I took 25,000 from my policy and I added it to the deal. Now, my daily growth in the policy when I initiated that loan was just over $22 a day. Now, how do I know that number? And Sean, you can confirm that because you are Also policy owner. Right. So I log into my portal today with the insurance company, I captured my number, and then log in tomorrow, and I capture a number. The difference is my daily growth. And, Sean, you've been practicing this concept for a couple of years now, so. Have you ever seen cash values go backwards?

Not a single time. It cannot happen.

Here's how I sarblo, when I look at this, too, and Peter, likely the same is that if you request a policy loan for 25,000 bucks and that policy loan balance with the life insurance company begins to accrue, what's called simple interest. Right. So that. That in this case, would be our cost of capital.

Yes.

Right. And if our cost of capital is 6.2% simple interest, so that's again, that's money on demand on our terms, meaning when the loan was accessed. There's no repayment schedule because the insurance company itself is guaranteeing the collateral for the loan. They don't need a repayment schedule for that very reason. But the key here is that if you have 30 calendar days of interest that's accrued on that loan balance to the tune of about $127, give or take, and you receive a check from Sean for 250, and your total cash value is still growing at a rate, in your case, that exceeds $22 a day, does that sound a little bit like banking to you?

It sounds a lot like infinite banking.

Yeah.

I love deals like that. I'll do them all day long. Because you put capital out and you expect it to return, you expect it to come back, but you expect it to come back multiplied. Not to mention, if you're doing this in such a fashion to trigger a gain, then that cost of capital is tax deductible. Isn't that good?

Absolutely.

And So I took 25,000 of the life insurance company's money. All of my money still growing uninterrupted by the loan. So every day, the water's smashing up against that really interesting version of a breakwall. Our total cash values are rising cumulatively, all four of us.

And Sean's sending a check every month that exceeds the cost of capital, which is tax deducted. The interest that we earn is taxable.

And so the key here is, where is the money flowing to, and who's that money being put to work for? Much like that water is flowing up against that break wall. Where is that money flowing to? And so when we get all that capital back, my hope is that Sean's got another deal lined up to say, like, hey, we want to repeat this process.

And so that's what clients are asking about. Clients who are very diligent with their system and they're accumulating ready access capital. They're saying, look, where do we put it to work? What can we do to multiply this money? We don't really feel a need to borrow.

Well then you stopped requiring the use of money. You're always working with borrowed money. And so this is ridiculously simple. As Sean said, the fact that we did it on a promissory note, we were joking around earlier that.

People are probably going to find that a little bit bizarre. And at the end of the day, I don't have any concerns. I fully expect that that money is going to come back and.

And then we can repeat the deal and just keep multiplying money or Money X as Peter likes to say.

Amplify the growth of your money.

Just imagine that on a T shirt when we actually close the deal and we get all the money back, we're all wearing the Money X T shirt.

That's how I like it.

And then having a place, I guess the key here. And Sean, tell me how appealing this sounds. So you actually have a group of people that want to be part of the Money X, the Money X mastermind. Now the name is pretty self explanatory and so if you don't like multiplying money don't apply to be a part of the group. But just imagine you've got that group of people and they want to multiply capital and they have ready access to capital on demand, on their terms. They want to send it out, they want it to grow. The biggest difficulty is going to be the volume of deal flow. The money won't be the, the obstacle. There won't be enough deal flow to accommodate all the money.

I can tell you right now that's.

A good situation to be in.

Oh, I see this every day. There are so many deals out there screaming for dollars and good deals, good deals. But you know, as we all know, banks and traditional private lenders don't make this process easy. Right. That doesn't mean it would have to be easy for the money mastermind. Right? There would still be good due diligence, just like we did on this deal and we walked through the numbers. We walk through, okay, this is what my worst case scenario after repair value is. And in the worst case scenario with the worst refinance value and I'm still going to be able to pay you back 90% of what you lent me and I'll personally pay back the rest of the.

And you'll give us tires with cement in them.

Right.

Sounds like a good deal.

Right. So we knew that even in the worst case scenario.

Yeah.

That money was coming back to you. And if I had to, I would top it up myself. Yeah. And. And that's really what makes the deal. Right. We have a trusting relationship that we built over, you know, several, you and I for years now, Jason, Peter coming up on a year. And, and so we built that relationship and then there was a deal with good equity and good potential and it made sense. Right. And so it would be the same for the money Mastermind. We would be prosecuting the deals in the very same way that this four of us did. Make sure there's an act there actually deals. And if they are, that's what Nelson's talking about. Opportunity will come find you.

That's right.

That's exactly what it looks like.

I just, you know, my thoughts are this is just a culmination of really great collaboration.

Right.

The end of the day, I think we talked about, you know, thinking what is a promissory note. And it's really, it's. Sean, I think you said it right. It's, we're not lending with security. Well, we are lending with security. The security is the relationship. And.

Serbo said if there's not a relationship, there isn't really anything. Right. So this is all really key to what we're building. And we've had some really good success. And teaching people the process of becoming your banker, there's definitely a captive audience to want to take advantage of opportunities like this.

Definitely. And we'll put it in the video links and all of that. Sarblo, if you want to put that in there, like people who have maybe some interest in wanting to be on a waiting list for the Money X Mastermind, it's not just an investment of time to be a part of that mastermind. It's going to be an investment of capital. I'll share a story with you guys that Sean, you may not have heard me walk through this, but.

My coach, Dan Sullivan, he, over the course of more than four and a half decades of coaching entrepreneurs, he's learned a few things about sending people through a coaching process. And he said, when we developed this 10x ambition program and this came together, we knew that it was going to be a much higher investment of capital in order to be a part of this 10x ambition group that he had designed. And there was a person who ended up enrolling in the group that Dan had been communicating with for a long time, but just this person just didn't take that step to join Strategic Coach, which is the name of Dan's organization. But yet when he created the 10x ambition program and it's like 25,000 US just to be a part of the group, well, this person ended up enrolling in the group. And so Dan approached him and said, gosh, we've been talking about the advantages of Strategic Coach for such a long time, but you never enrolled in any of our programs. Why did you enroll in 10x ambition program? And he said, well, I paid the 25,000 because I knew who wasn't going to be in the room. In other words, he only wanted to be surrounded by very high caliber successful entrepreneurs. Not to say, I mean, Strategic Coaches programs are all great. They're just all great for different people at different phases in their entrepreneurial journey. And so when this guy finally enrolled, that was his response. He said, look, the reason I invested 25,000 is because I knew who wasn't going to be in this room. And so when we talk about creating Money X in the Mastermind, we're going to hear that story. People are going to say the reason I made this investment is because of who I knew won't be here. And that's going to be the key. And so for, yeah, if we have something in there that just lets people know, hey, if you're interested in either applying to the Mastermind or being a part of it on a wait list, just let us know. Not everyone's going to get into Money X. You're all going to want to.

But.

Not everyone's going to get into Money X. Isn't that good?

Real good? Absolutely.

Anything else, Peter?

No, I think that, you know, I think that really is a good, you know, start to expansion of this relationship. I think this is what we're doing. We're really accelerating learning from each other. But I think when you talked about like whether it's 10x or moneyx, it's really about just removing the friction from a lot of these relationships. And really it's a smoother ride. It's much smoother ride once you start, stop getting in your own way.

Right.

And you know, a lot of it because we're doing things ourselves. Once we start collaborating with other people, we see how we can build something so much bigger together. And I'm, I'm really looking forward to doing more of these calls and adding more content to it and sharing what we're doing and be Able to share with other people and have them take advantage of the same things that. That. That we're doing today.

Love it. And, Sean, we've got some progress picks we want to.

Oh, yes. You want to see the interim project picks or the latest?

Yeah, let's take a look at the latest. Let's see. See how the cottage is progressing.

As you can see, the breakwall is not changed yet, and that's because we need a permit. And so the permit's been applied for. Even if the permit was granted today, I couldn't start construction tomorrow because there's a spawning season. The spawning season does not until July 1st. So I would be prohibited by the conservation authority from beginning construction until. Until July 2nd. So I'm hoping that we receive our permit in. In June at some point so that we can start in July.

And then perhaps maybe for. For another call, we can. We can focus specifically on the break wall and the process of getting it done because it is quite intricate and involves, you know, oddly enough, collaboration. Collaboration with others. But sometimes only one person in the relationship collaborates, which. Which I've been coming to learn. And so, you know, we're forced to pivot a little bit and change our strategy, but, you know, it just is what it is. But let's look at. Let's look at the interior now. So you can see here that we've taken off all the drywall. The floor is up here. The ceiling. Let me pause it there. Let me see how I paused. So this is that living room that's going to face out to. I guess it would be back here, the living room that's going to face out to the water. Okay. And you can see up at the top, the rafters. We are. That was all drywall before. So the drywall is down, the insulation's down. Those rafters are coming out, and it's going to be turned into a cathedral type ceiling.

Oh, very nice.

Probably pine slats going up the top right to. With a little bit of ventilation at the top, and one, I think they call it an I bar, which will be supporting the roof and on top of sort of the first level. Got it. So this is going to turn in from a very constricted view to a room to. To a quite expansive room with quite a bit of headroom and basically two stories worth of space.

Nice.

All right, so the kitchen, I suspect we will mostly be leaving. The cabinets are in quite good shape. They need a paint job. We'll drywall the roof. There'll be new appliances in and New floors, but otherwise the kitchen's going to stay okay. There's, you know, when we're talking about real estate investing strategy, you know, when it comes to this particular property and the way the actual land is set, way the lot is, this is never going to be a $3 million cottage. Right. And so it doesn't make any sense for me to put in 3 million dollar finishes. So I'm not going for the best cottage on the street. That's not my intent at all. My intent is to have a, a cottage for a couple of reasons. Number one, when you go to a super nice cottage, do you get the feeling you're at a cottage? I don't like. I like going to a nice place, but I also really appreciate that sort of.

Feel type place. So I'm not going all out here and I'm doing that on purpose because I want that authentic cottage feel. And you will get it. And that comes from not the best. Perfect brand new kitchen. I'm going to paint those cabinets. They're going to look nice. I'm going to put nice hardware on them. I'll probably put in a new faucet and new appliances. But I'm not replacing the kitchen cabinets. There's no need. They're, they're in great shape and why would I spend money on it at that point? So let's keep going here. So you see that wall at the back? This one right here, the blurry wall here? That is one of the walls of the existing bathroom. That's the wall that's coming down.

Okay.

And on the inside of that, that bathroom is going to be completely cleared out. And so all of that space is going to just open up. So what we'll end up doing is likely making this L part of the lower L part of the kitchen here back against the wall and move the entrance to where this particular room is. So now you've got like a flat kitchen which opens up so much more room in, in this sort of kitchen area. Behind where the camera is now will be the dining and living room. There's a great spot for a dining table in the corner for a six seater. And then on the other side, great spot for a tv, perhaps a fireplace if we decide to go that route. And a couch overlooking the lake. So you can see here, there's that entrance room you can see with the massage chair. So we started drywalling. As you can see here, this room was full of mold and.

Three closets worth of clothes that were all soaked. It was in terrible shape. But now it's come along quite nice. The roof is drywalled, the walls are there. That used to be a closet that we took out, which I think has since been drywalled since this video was taken. And so this room starting to come together. And that drywall was paid with, with your money. Oh, mud, the tape, the paint that's going to be used. That's all your money. That's what your money is going to do. And that's, that's the great part about this is like you get, you have a tangible look and see, you can't quite feel. Although when the project's done, if you, if you'll come out to Ontario, we can, we can all meet there and have a beer overlooking the lake. But at that point you'd be able to actually feel like, touch and feel what, what, what your money went to.

Is the, is our money going to go toward the beer too?

Of course. Of course.

So here's another room also drywalled like this. I can't even tell you. This looks so much better than it did. I mean, you saw the pictures.

Oh, yeah.

This is incredible. This is incredible progress for our project. This room has been drywalled since this video was taken. You can see the, the floor, it looks a little shiny, right? The floor has been sealed so that, that floor is cement. And if anyone who's watching this, if they work with cement, they know that cement wicks water. And so you've got to put a sealant in place so that any moisture that shows up in the cement doesn't make it up into the flooring. And so they seal the floor to make sure that if there is any moisture that ever shows up, it stays underneath the ceiling, which is key to preventing mold and having to redo your floors later on. So I think this video was taken about.

Two weeks ago. So I expect this room to have been drywalled by now. You know, here's the best part about being an investor. I haven't been to this property in months and I don't need to because I just like the three of you chose to work with someone you trust. I chose to work with someone I trust, right. And he sends me videos like this. And, you know, we talk two or three times a week. He sends me bills, I send him money.

He, he gives me value add ideas and it's a really great working relationship. So here, now here's an interesting part of the project. I pause in the perfect spot. You see this little hole here about the middle on the left? Hand side. That is the septic tank, or rather where the pump would. Would be attached to pump out the septic tank. Now, can you. Can you think of anything that might be wrong with this picture if you can't? Like, you should never have a septic tank with access to the house.

Right.

Because gas can emit from that. Lethal gas. So this is, like, not at all code compliant, but it's not really a big deal because I'm just going to tear this wall down and move it over here. This room is actually completely useless as it stands, and so that's why I don't mind losing the square footage here. It's oddly shaped. It's too big to create a closet because there would still just be all this unused space.

Yep.

And it's too small to be a bedroom.

So we're going to bring this wall back so that the septic tank has access outside. So we're not putting any potential guests or homeowners. If we flip the property at risk. We also had the septic tank pumped. It's in perfect working order. And, you know, septic. The word septic tank or the phrase septic tank can scare some people. It shouldn't scare anyone. It's what happens in rural areas where, you know, municipal services are not feasible. And what it's going to involve is every couple of years, I'm going to pay a few hundred dollars for a truck to come and pump it out. It was 500 bucks. So I. You know, that's a no concern to me at all, especially when running a rental business.

Let's see if any of the sidings up so you can see a lot of the junk is gone. Yeah.

No, no. So there's. There's the color of our new siding. Nice with charcoal. And we're going horizontal at the top and then. Or, sorry, vertical at the top and horizontal along the bottom. And there's a strategic reason for this. It's because the ground is uneven. So if we went vertical all the way to the ground, we'd be losing a lot of the siding on cutting off small bits. But not just small bits. Like 2, 3ft, we'd be losing 2, 3ft. So instead of doing that, we're going horizontal on the sort of lower level, which will. With. With white trim in between, which will be also visually quite interesting and will mean we don't have to waste very much material because there will only be one piece of siding that will be affected instead of all of them.

All right, let's keep looking here. We also as you'll see in a minute, you might recall that massive tree I had in my front yard.

Yep.

If you're noticing the wood chips down there, you can probably guess what happened to it. It's gone. It's gone. It is completely gone. And we did that because.

We thought we'd be running an excavator up the side of the house using some of my neighbor's yard as well. You need an excavator to build a break wall.

I'm not sure if that's still going to happen, but in any event, the tree was. Didn't really fit the idea of having this cool place I envision for the front here, a deck, a hot tub, and an area that's sort of protected from the wind and waves when it gets windy. Because anyone from Ontario or the area will know. Jason, you know, this Lake Erie is windy. Yeah, it's. It's not the best of all lakes. This is still going to be great. You're going to be able to go out on the break wall, you're going to be able to sit there, but sometimes it's too windy. And so to be behind the house, protected from the wind, being able to do a barbecue out there, sit around, jump in the hot tub, etc, I think that's going to be. That's the play. So we had to get rid of the tree. So we still don't know what we're going to do with the roof. The roof actually doesn't leak, so we might actually leave the roof and then just figure out what to do.

With this video. In any event, I think that's it for the video. As you can see, lots of progress has been made and that video is a couple weeks old. So since that time, my guy hired an extra small crew to come in and really pick up the pace because I know I have a mortgage coming due and I've got some promissory notes coming due. We got to make sure that we get this project done. Yeah. So, you know, we're. We're picking up the pace of the renovation inside and I'm hoping to go down in the next couple of weeks. I won't be going down this weekend anymore, and that way we'll be in a position where it's going to be looking like a house again.

Sounds good.

Well, we'll have to do a sequel once everything is done.

Definitely. This was fun. Appreciate the update, Sean.

Well, thank you for having me on and for being part of the project. As you mentioned earlier, this is part one and you know, Peter and I have been, have been chatting about other opportunities and ways to really continue our collaboration at scale, which we all would agree is, you know, we don't want to be doing single family homes. We want to 2x3x10x our way up so that we're continuing to multiply that capital that is otherwise just sitting there not doing anything. And so, you know, stay tuned. That we've got, we've got another number of projects in the pipeline that are at a much bigger scale than this. But this is a really great start and I'm so happy to have the three of you along for the journey.

Likewise. Peter, any closing thoughts?

No.

Thank you for sharing the opportunities with us Sean. And yeah, we look forward to the next update and meeting back with the three of us. Sorry, the four of us in total.

We've got more to come.

Cerblo. I'm just looking forward to seeing what the outcome is going to be for this project. That's one. But yeah, more collaboration, more. I don't know how many X's should I add? After Money.

It'Ll be a lot.

On that note, yeah, this was really, really good. And existing clients who get a chance to see this and the general public, it's going to get your imagination working on. Okay, if you're already implementing the process, you've got a policy, a system of policies, you're accumulating capital, you are in a position where you're seeking high caliber opportunities. Well, this is going to get your imagination working on that. The upcoming launch of Money X and what that mastermind is going to look like and it's going to be absolutely amazing. There's going to be so much opportunity that is created out of this economic thunderstorm that's on the horizon and all of these events that are coming together simultaneously with taxes, volatility, loss, longevity and so much more. This is just one way that people are going to be rewarded during this economic crisis that we're driving head on into versus being harmed by this crisis. The opportunities will be amazing. And guys, it was great to be with you again. And for people who are watching on the YouTubes, you'll see some links that Sarblo is going to have added there around developing some interest in Money X and the Mastermind group. And then in addition to that, please comment, please share with us what your insights are and maybe what's coming up for you in your imagination or any other questions that you have about our deal and how we put it together. We've always committed to being radically transparent. And that will always be the case in any projects and deals that we do. And so share your insights with us. We'd love to hear it. But thank you so much for watching this content and we'd love to hear from you. So get in touch. Let us know. Let us know your insights. Thanks so much, guys. This was a lot of fun.