Wealth Real Estate Secrets You're Not Doing!

All of our due diligence to look for where is the best way to where. Where is the best place to deploy our capital for the investment. However, just like Dan and Sukhman just mentioned, becoming your own banker has nothing to do. Not nothing to do has no conflict with any of your deal searching because it is not a investment by itself. It is about how you go about investing that deal. Now if I may expand on that a little bit and feel free, our panelists can shine in. For example, if I have a subject property, let's just use a single family in Calgary as example and I have saved up $50,000 as a down payment. I'm just using very broad, very general example because we have covered all Canada tonight. If I have this $50,000 sitting in a checking account or sitting in a TFSA account or sitting in RRSP account, I know a lot of investors using RSP dollars to invest. What we have to do is we have to physically remove that $50,000 and take a check and give that to the bank who finance for that Calgary house, right? So we have to physically move this $50,000 to that investment. So in a way that the investment is earning us x percent of rate of return based on all different aspect. As a real estate, you know, as a real estate deal could bring you positive cash flow, give you passive appreciation, active appreciation and all that. But the thing is your capital is away from you, right? This $50,000 is no longer with you. So what we are coaching you here by using infinite banking concept for real estate is that you probably what you could do is you can have $50,000 in your system forever. It will grow uninterrupted and compound for the rest of your life. At the same time you can utilize this policy to deploy this money to do your deal. So we're not changing any objective and we're not trying to change any cash flow if that helps to answer that question sometimes. It's a fantastic question and I really love to mention that. And it is not an investment. Just remember when we do a deal we do usually ask for the bank for money or we raise joint venture partner. We have money partners.

As a capital whatever way that is we always have to pay interest, right? So just think about that way. So I strongly recommend for whoever has not got a chance to read this book Becoming your own banker by R. Nelson Nash. This is a fantastic book. As a real estate investor, only the second time when I read it start to speak to me the first time I get it, I know it but it doesn't really speak to me. So I encourage you to do that. If you have not joined any of our webinar before, if this is the first time you join, this is a very special webinar. I strongly recommend you to go to watchibc.com and you know, go through the basic training for this concept.

So looks like, okay, we got a question from Ellen and Fran's going to answer it live. And it's about can rental income pay premiums for your policy and then use a policy loan to pay rental expenses?

Yeah, that's a great question, Alan. And the answer is absolutely, you can use your rental income, obviously your net income that comes in your profits, right, towards a policy. And then you could use, you could designate that policy to use for expenses related to that rental property as an example.

Right.

And really the opportunities or the possibilities are endless. But that's definitely one way you could do it. If I could share a personal example, my wife and I have a rental property. We don't necessarily use our rental income for the premium. We look at our income as a whole and that's what we use towards our premium for our system of policies. However, we do use a portion of the policy loans for some of the expenses for our rental property, one of them being home insurance. And as some of you know, when you pay for home insurance, there is a bit of a discount you get when you pay it annually versus monthly. And so my wife and I take advantage of our policy system by taking out a policy loan to pay for the home insurance annually, which gives us, I think it's like, I'd like to say it's like a 6, 7% discount. It's a decent discount. And we actually, we view that as a return, right. Because we're saving that money. And then what we do is the same monthly a payment that we would have otherwise been paying monthly to the home insurance company. We put that monthly payment back into our policy loan. And so by the end of the year we would have replenished that policy loan amount. In fact, we would have put a.

Little more than that. Right.

And then by the end of the year we can repeat the same process again. So that's one example that I do personally. So that's a long winded answer of answering your question.

That's awesome. Thank you so much, Taran. I would also wanted to add on to your answer as well is it's nice to discuss with your coach one on one. Although Ellen, I know you, you're welcome to book a 11 hour meeting with me.

So rental income, is it gross income or is it your net income? That's also another question. Right. So it's nice to look at a holistic plan about your cash flow and is the cash flow from your rental property. So actually there was a webinar that Sarblo and myself did is in on the YouTube channel. It's called how to effective manage your rental cash flow through infinite banking concepts. So that's something that for those of you are interested in, that's a great webinar about one hour content that you can review as well. Thank you.

If, if I could just piggyback and just answer on that as well. Try and add a quick question. How long did it take you to start thinking about that as an option like paying the insurance through your, your, your banking system?

That's a great question, Sukhman. For me personally, it didn't take too long because I'm always, I would consider myself very opportunistic. So I always look for opportunities. And so it, it came to me as an idea and, and I thought it was, it was a great thing to execute on. But for everyone it's different. Some people may take time to grasp the various opportunities around them. I think it's just about having an open mind and looking for opportunities. And as Jason and Richard and Sarblo always say, once you have a pool of capital built, those opportunities appear out of nowhere.

Yeah.

The reason why I ask is because the first thing that comes to mind is in the book when Nelson says infinite banking is an idea of logic, imagination, reason and prophecy. It's funny how not funny, but it's just interesting how the question was, can rental income pay premiums for your policy and then use the policy loan to pay rental expenses? And from that you were able to use your imagination and do something totally different from it. So that's an idea for everybody that's on this call who's into investing and is opportunistic and thinking ahead of the game and looking for the next opportunity that once you have a grasp of the concept, like Taran saying, you can then have your imagination start working for you and seeing where this process can actually enhance what you're already doing. For example, insurance or property taxes or rental income, whatever the case may be. Right. So that's just an exercise that I thought was really interesting that in like as you're talking, what else can you actually capture into your own system?

I, I'll jump in with that one too, Sikhman. So for myself, my system has matured a good amount at this stage and the capacity and what it can handle can do those type of things. Where I have confidence in flowing most of the gross revenues that I get in my assets to my policies to help fund it. And then when the timing of expenses come out, then I already have policy loans set up in place to fund those. So once you get into it, your confidence and to jump on what you're saying, Sukhman, your capabilities, yourself and your system's capabilities will grow and then it can handle more things for you.

All right.

That was really good. Great answers. And Henry, do you want to answer the next question you signed up for? So it's Sherry, I think. Is that pronounced her name correctly?

Sure.

Sherry. Oh, do you want to read the question or I can read it.

You go ahead.

Okay. Sherry asked we are a family of four. Husband 50 year old, wife 49, daughter 19, daughter 8. Does it make sense to pool available funds into one policy to start the process? Or does it make more sense to spread the available funds across four policies? Just wondering if one approach is more strategic than the other. And Sherry, that is a really good question. I will just have to tell you that is also what part of our process that we would go through when we meet with you, we would dive into your circumstances. We don't follow a template approach of saying everyone we're going to do it this way. Depending on your specific life journey and where you are in terms of your financial situation, we may evaluate something. So I may look at a particular situation where this particular individual has a good amount of. Part of the process that we do as licensed life insurance advisors is also evaluate your insurance needs. So maybe it is important to put life insurance policies on the full family. But in terms of practicing the process and achieving goals and objectives that we go through, I would look at a specific family and say okay, the family is nicely well insured. But in terms of achieving the goals and objectives in the time frame that the family is looking for, maybe I'll just concentrate on the policies on one individual and then maybe some on the children. Whatever the goals and objectives are, that's where part of the designing process in our meeting would entail. So to answer your question, it varies strategically and it is very individualized when you go through the process that we go through with you.

Great. Thank you so much. Hyun. I'd like to take a break, so I'll take. The next question is from Varun. Is it only the participating whole life policies that we use in Infinite Banking concept is the cash flow not available at the end of first year. The earnest the answer to your first part of your question is on page 39 in Nelson's book on Nelson's thoughts regarding our universal life and variable life. So the answer is proper designed participating dividend paying whole life insurance policy is the best tool is the best tool to use as infinite banking concept. When you open up a bank account, do you have do you want to have guarantee or do you want to have a risk on your capital right when you wanted to as your pool of capital. So that's the question Cash value is I believe you were mentioning about the cash value so that you can start to access the cash flow. Cash value is available right away when your policy set up and depend on how you set up so you you don't have to wait at the end of the first year almost right away you can access fund any team member wants to add on the question.

All right, I can share an experience. Just today I have a client of mine who has a universal life policy that was initiated before me. And because of the performance of how that policy was structured, it was not designed for the practicing the process of infinite banking. But this is pretty common in what can happen in a lot of universal life policies. If the fund is not performing well and the premiums that was being sent to maintain it wasn't enough, then it puts the policy in a lot of danger to collapse. And actually his policy was under that type of situation where he was sending pre authorized debits in the form of premiums for the universal life policy and it was not enough compared to the value of what was sitting in his universal life policy. There was only $65 left. And the question that he had to me is what do I do with this Henry? Should I cancel my policy or should I continue funding the amount of money per month on that? The question unfortunately that I had to share with him is this is actually a question you have to ask yourself. Do you want to continue committing funds to this situation or do you want to exit? And so these were, I won't share with you what his decision is, but these were, these are some of the realities that we deal with when people work with policies structured this way and not using what we use.

Yeah, good, good point Henry and I too have experienced that with, with clients who have had policies for years and not designed well for this purpose at all. And actually in the same scenario where, you know, when they look at their, you know, universal life policy, their cash values keep going down and they're going, okay, how come my values are going down? And then at some point you cross that threshold right where it's just like you're gonna have to pay more if you want to keep that. So they're not ideal. And what we, we defer to is what Nelson taught and believed and, and just the, you know, the effectiveness of dividend paying whole life insurance. And it's, you know, we want certainty when we work with this process. When I work with this process. In fact, one of the reasons that I was so attracted to way back when I wasn't, you know, teaching this, I was just looking into it was the certainty that came with it. And that's, you know, what we really get from the product that we use as the foundation to build, you know, access to capital through. And so we're pretty, you know, we're pretty, we know, we watch, we see, we see what happens to other products. We're not interested in having somebody set up with something that's not going to work over the long term. So where we stay true to the Nelson's teachings of dividend pay and whole life insurance.

Great, let's move on to the next question.

So the next question I guess is from Paula. What is the process for getting a loan from the insurance company and the time frame frame.

So for that question, Paula, that depends on the insurance company. And each insurance company has a different experience. Now the ones that we, the one that we use, or I use specifically is a mutual insurance company in Canada located in Kitchener Waterloo. And in relation to that, the experience to practice the process of banking and accessing a policy loan is a very simple and encouraging process where once you have a policy, you will have a portal that you can log into to see your values. And every day when you look into the values, you can see it increase. And you will also be able to access a loan through a press of a button. There's a few very simple steps that you go through to understand what you are going through in terms of accessing that loan. Once you've declared how much it is that you want to access and you've set up your bank account with the particular insurance company within seven to 10 business days, those funds will, can be deposited into your bank. So that's just as easy as that. No income verifications, no qualifications, you get to decide and set the terms because you are the banker as it is when it's becoming your own banker on when you want to pay it back, how much per month you want to pay, and if no one wants to. If you aren't able to make a payment, you won't get any threatening phone calls, threatening letters, or anything along those lines. So this is the process of becoming your own banker and getting the control back into your hands.

I'm just going to jump in here a little bit. Okay. So with the life insurance company that Henry is talking about, it's one of our primary insurance companies that we use because it is a mutual company. But there are other companies that we do use as well. Their timeframes unfortunately are quite a bit longer. We're looking.

Several weeks is how long it actually could take. So you do want to actually have your capital ready so that you can plan some of the opportunities that you want to kind of take advantage of, like in advance.

With the mutual company, it is quite quick, but even they have some longer turnaround times depending on the time of year and.

How many people are working in the system. So it's not nearly as quick as.

Tapping your card, but it can be. So just make sure that you talk to your advisor as to what.

What insurance company you're using and the benefits and cons of each one that might work for you in a better situation. So there we go.

For myself, if I can just add something on, I really liked what Henry touched on because for myself, I'm a banker. Recovering, turning into a becoming your own banker. So I'm the guy that you used to would have came to before to get your mortgage and those kind of things. And I can attest to how fun it is to ask you guys those questions. And I can imagine how fun it is for you guys to answer those questions. Think about all the things that you have to give to a guy like me beforehand to actually get your mortgage approved and get your HELOC approved. Right? So many documents, so many personal questions that you have to answer. And on top of that, I have to ask everything from how much you weigh and how, how much your height is and how much money you want to just give you a mortgage rate. So consider that and how it plays a role in your experience as a real estate investor. Guys like that's really important to consider. I think on top of that, the point on how you get the loan process. Paula, it's a great question and it's great to see you here on the webinar tonight.

These, these loans that you take out, they aren't reported to Equifax and they're fully private and in a time and how things are looking right now, that's very, very important. And that has its own kind of piece to it. The fact that you can go out and make a deal and none of that's disclosed to anybody else, that's a. It's a pretty big deal, I'd say. So that's just something I wanted to add on as, as being in someone that's on the other side. I know it's not fun asking those questions and it's not very fun answering all those questions and going through all that documentation. The fact that you could get a loan at the click of a button and literally wait a few days or a few weeks to get it, it far outweighs any of the negatives of all the paperwork you have to go through to get a mortgage or get a HELOC or get a get a line of credit. That's just all I wanted to add on there.

Yeah, that's a great point. Sukman. When we borrow money from a bank, the collateral is all those things that Sukhman has asked has mentioned. Those are the underlying lien is your other assets and your income. Right. When you borrow a loan from IBC or a, you know, participating dividend paying whole life insurance policy your use your cash value as a collateral and the lien is actually your death benefit. So it's very, very secured lien as so so that's the main difference. And you know that before age 100 your cash value is not catching up with your death benefit yet. So you can never borrow how much your death benefit is. So to bank life insurance companies are very, very safe and the life insurance company that we dealt with most life insurance company in Canada has been over 100 years young and very likely they will outlive us. Right? So that's one point that as a real estate investor I really love the privacy part and also creditor protection as well. So that's just an added bonus based on the tool. So things we're talking about policy loan I think it's very natural to move on to the next question that Angela mentioned in the chat. And.

Also someone asked about Varun also asked in the Q and A boxes about isn't the interest on policy loan much higher these days as they are based on prime rate? So how does saving 6% on insurance payment by using policy loan make sense? Now I'll invite Roman to answer that question.

Thank you Jingjin. So in fact the interest rate on the policy loan is not based on prime. Maybe I just didn't understand the question correctly but it was never based on the prime and in fact the interest rate on the in the last couple of years actually only increased by 5%. Right. So. So before it was 6.2% in the insurer that we used and were using most frequently, it used to be 6.2%. Now it's 6.5%. So the increase is only 5% increase. Where, what is the increase in the bank rates for the last couple years? Ginger, do you want to answer this question? Let's say they charge now like 1.5%. Now they're charging how much? 6%. What is the increase?

7.25% or 7.2% is the bank rate right now?

I believe so.

What is the increase then?

6%, 300%.

Oh, okay. I think it was how many percent?

Yeah, I think it's like 500%, right?

Yeah.

If you divide, say 7.5. If you divide by 1.5, that's 500% increase. So we're comparing increase in their rates, bank rates, 500% versus 5% in the insurance company. Right. So it is right now more favorable in terms of the insurance company. Before, the policy loan was not as attractive as it is now because it was higher than what the rates bank would charge. And many people would actually get stuck on the rate, on the rate difference and the rate comparison. They would say, oh, why would I borrow from insurance company at 6.2% if I can actually borrow at 1.5%? And what Nelson says in the book, and by the way, if you haven't read Nelson's book, you have an opportunity today to read Becoming your own banker. So what Nelson would say, it's not about the rate. Rate is.

Not giving you the truth. You need to look at the, at the interest value, not at the interest rate. Because comparing rates.

Is not giving you the 100 truth. Because you're comparing different mortgages, you're comparing different rates. One rate may be related to a mortgage which is a structured loan, and the other rate may be a simple interest. And it's a total different thing. And they work differently. And the amount of interest you're paying may be completely different. So it's not about arbitrage. And many, many people think that.

Borrowing from insurance company and saving interest is an arbitrage. And you borrow here at 6.5% and that's saving you 0.5%. Arbitrage. It's not. The main question you need to ask yourself is who is getting the payment.

And where is the money flowing and is the money re advanceable? Can you reborrow from a bank if you pay a mortgage, right. And the question in most cases will be not, you cannot, unless it is a heloc, unless it's a home equity line of credit, unless or other type of simple interest loan. But in simple terms, answering your question, you are not saving 6% on insurance payment varun. So I don't know what exactly you mean by saving 6%, but.

Right now borrowing from insurance company and.

Redirecting the payments back to yourself is actually much better idea than before.

Just to jump in there, Roman, I think he might be speaking to Tran's comment about his 6% he was saving on his insurance payment.

Right.

Is where I got there. So again, you know, people are saying, okay, Tran, if you're only saving 6%, how does that make sense for you to pay that insurance premium annually and save that 6%? But it's pretty odd. You know, there's a few obvious things about that, right. You save 6%.

Over what it was going to cost you the other way. And then the other piece of it, which I'll let you speak to Tran, is what.

You're muted.

Okay.

Yeah. I guess you're. It seems like what you're referring to is the cash value growth within the policy, correct? Yeah. And that's the other consideration that everyone needs to keep in mind. Because when you take out these policy loans.

What is still happening to the cash value in your policy? It's still growing. Exactly as Henry points the figure up. And it only goes one way and that's up. And the reason why it goes up is because of the contractual guarantee built into these contracts that by age 100, the death benefit and the cash value has to match each other. And so every single day your cash value is rising. And this is why it's so important who you work with. Because the policy has to be designed in such a way where your daily cash value growth should exceed the daily policy interest that you would accrue on a daily basis. And that's a key aspect to how these are designed. And so when you consider that your cash value will always be ahead over, or mostly be ahead over the policy loan, interested you accrue, you are ahead. And we haven't even talked about what you're going to be doing with the policy loan.

Yeah, and of course we can't forget the death benefit, the tax free windfall that comes if something should happen prematurely to the life insured.

Exactly.

Huge factor.

And just to build off of this whole topic is, you know, when Roman spoke, he spoke very much related to One Life Company so some other life companies have different interest rates and some of them do track along with the bank accounted rate. So again, you know there is differences from life company to life company and the mutual life company that we all prefer to use. And that's where all my policies are. Do not follow the bank account rate. And it's the rate is only, you know, adjusted once a year at the most. And yeah, so it's. There's differences out there. I just want to point that out.

Great. Should I switch topic to the next question? All right, so I have next question from Ian. He's wondering how much of the 50k that I use at earlier of the the webinar I mentioned 50k to use as a down payment to purchase. He's asking how much of the 50k used in this example can be reinvested, can be invested immediately. So I guess. Ian, you.

Jingjin, we lost your audio.

Oh, is it better? Hello? Okay. All right. So the 50k is not the premium for that year. So I'm just giving an example. If my cash value has already have available policy loan available for $50,000, then I can use that.

To answer your question. If you deposit $50,000, how much fund can you immediately take it out? Now that's a different question that depends on your short term, midterm, long term goals and how much you feel comfortable to put in. So that's more like a design question once you understand the concept. That's a great question to ask with your coach based on your situation.

Colleen also asked about a flowchart, a diagram to share a visual. We actually have those visuals in many of our webinars before. If I may, I'll see if I can share. Oops, sorry. I have something different. Can you guys see something I'm sharing?

Yeah.

Okay, thank you very much, Dan. So I'm just sharing a graph that I used in one of our webinars. If you think about using a example about our traditional way of getting a down payment or going by a real estate or a investment, one way is we will save money in a vehicle, your checking account or any account. But that money is in someone else banking system. Once they save enough money, what we do is we withdraw that money to go buy this investment. Correct. Once we withdraw that money, that money is gone from our family forever. Right. And then you're going to slowly build up your pool of capital by your positive cash flow or your other incomes. You slowly build up and then you get to where you were before. So from a money flow point of View, our money is not growing. In this case.

Some other ways for real estate investor to buy, buy deals or purchase deals is by borrowing money. When we borrow money, we get this money right away. We can go for this deal. And it's not our own money, we all know it's other people's money. But when we borrow money, we have to pay back the loan. So we have to pay interest. No matter is your own money or your home equity line of credit or someone else money or some other bank's money, you have to pay interest going back. So once you pay off this bank loan, all you achieve is your loan gets to zero. But all those time, all the financial energy goes to someone else. So what we coach you to here by Nelson Nash coaching to become wealth creator is we want you to build a line, the green dotted line that your money's always growing uninterrupted. And at this time, if you wanted to do a deal, say $50,000 down payment deal, you can borrow policy loan by using this red line representing here where your money always continue to grow. I don't know if this is a good visual to show if this answers anyone's question.

Yeah, just to build off of that Gingin for Colin, he's looking, I think he's partially looking for just a flowchart of, you know, if you're doing a real estate investment project, you know, how's money flow? And so there's so many different variables there. So it, you know, we have them, we built them with, but we don't have them available for you tonight. And like Jensen said, there's some great webinars we've done on real estate investing and that's where I'd encourage you to go is to our Bankers Vault YouTube channel and punch in real estate investing and bring up some of the webinars that were done specifically with case studies in it to show how money moved around.

I would just add flowcharts and schematic diagrams. Everyone's processing for investing in real estate and managing their properties and the type of properties, whether you have single family home, multi residential or whichever is different. And it's. You can't standardize a one, one template that applies to every single process. Again, so just like the process of banking that we help clients implement is going to be different for everyone. Similarly, the process of how you use IBC within the investing or managing your real estate portfolio will also be very different. So this is actually something that in a, in a nice way is work that you need to do.

Great thank you so much. And you can always schedule a call with your with your coach and then he or she can direct you with the right resources regarding on your own situation. All right, let's move on to the next question then.

All right, so the next question Jeffrey is asking, when paying back the interest of the policy loan, would this payment be designated as a paid up addition? If not, could a situation arise when one inadvertently carries over interest into the next year if instead one fully pays into the paid up addition rule instead? So there's a couple different questions in one question. So I just wanted to kind of separate them first.

First thing is I assume that Jeffrey is asking about situation where you do have addition, have available room for to pay for paid up additions to buy paid up additions which you haven't used fully yet. If that's the case when you took a policy loan and you're paying it back with this particular insurance company. Because remember, not every insurance company will allow you to buy paid up additions throughout the year.

The company we work with allows to do that throughout the year. You have option to buy paid up additions. So when you pay and you need to specify if it's going against a loan outstanding or if you're buying paid up additions, you need to either let your advisor know what to do with this payment or you need to send an email to this insurance company and ask them to apply it correctly. And then you need to watch how it is applied and make sure that it was correctly applied. If not, then you need to reach out to your advisor. Second thing is.

If a situation is possible where one would carry over interest into next year, meaning next year of the policy, not necessarily next calendar year, or you should be watching to use your available paid up addition room instead.

So yes, first off, I would say don't be afraid to carry over the interest because who is the banker in your life?

Yourself. Right. So who are you paying interest to? Are you paying interest to a bank and then you never see it again or are you, are you in a driver's seat? And this interest essentially go to the insurance company, but it adds to the profitability of the insurance company. Right. So it is okay to actually transfer interest to the next policy year. And if you're a real estate investor, you need to understand that you actually can.

Re access this policy loan when you pay interest. But answering your question is.

Yes, it's better to actually buy paid up additions first and then use up that room. And if you have done it, it's great. If you have not, yes, that's possible that you will be in a situation where you haven't used the paid up addition room and you didn't look at where your your policy payment were allocated and you paid interest off or paid interest for this year but you didn't actually care about buying paid up additions. It is better to buy paid up additions first because you only have a specific window to use this room.

I hope I answered this question. Maybe someone wants to add to this.

Roman, the only thing I would add is I think that is a very kind of case specific, you know, what's going to work for you and what are objectives. You know, in some cases you may not want to lose any of the dollars because you have a specific objective for them. So again it just comes down to you being in control and you being able to decide what's going to be best for you in that circumstance.

Yep. Thank you so much Liz. And I would also add that actually paying interest.

Is a good thing because interest is increasing the adjusted cost basis and if you don't know what it is, please reach out to your advisor and your advisor will help you better understand how adjusted cost basis actually works in, you know, helps you, helps you practice infinite banking. But remember interest you're paying is increasing the adjusted cost basis level and that's a good thing. So that's okay to pay interest.

Henry, you got the next one. You were going to answer live for one of your clients.

By the looks of it, he's a great guy. So Markin asks and I'm just going to read it out for everyone. So howdy gang. Just had my third party at home nurse assessment for my first policy through Henry. My question is about a leverage strategy I was thinking about using to invest in real estate and hoping to get opinions from the panel. So again this is very specific. I will just say it is also very hypothetical. So hypothetical is harder to answer in terms of things. But let's just. I'm just going to put it out for everyone to listen to. Let's hypothetically say I borrow $100,000 from a HELOC at 8% and I place into it, place it into my policy. Then I borrow from my policy at 6% which gets a wash from the dividend 6% to invest in a private real estate investment note at 12% so it's a private loan which I then use to pay the interest back to the heloc. Would it be wise to keep the capital working for a positive spread as long as possible or should I be plan on having that Excess interest, cash flow or certain percentage of it, go back into the policy as quick as possible. If there's a better way to think about or structure this, please let me know.

The first part I will share with you in these types of conversations, which is a really good way and I want to be able to answer it. So Mark, and thanks again for asking it in our private conversation. I will probably do a little bit more digging, but I'm just speaking more specifically in terms of just the general thought process when it comes to practicing this process. A lot of the ways that we use practice the process of banking is to help us recapture debt. And when we recapture debt, the goal is to get out of the debt. Now if you're borrowing 100,000 and to put it into the policy, you're kind of reversing the purpose because when you took credit dollars to fund the policy and then taking the policy loan to pay back the credit, it's kind of in a not winning situation. And so we don't want to go into that type of an environment. But your second part where if you were t, if you've earned funds and have it residing in someone else's bank and you are putting it to fund the premiums of the policy, now you are using the funds to invest or issue a private loan with terms that you've set at 12%. Fantastic way of being the banker in the situation. So the only component that I would just suggest is not to borrow funds from the HELOC to fund your policy, but if you want to use the policy to participate in private lending, by all means. That's an excellent, in my opinion, a good way. If you are able to structure something like that and find someone to take on that type of loan, then that's your opportunity. That's your unique ability. By all means.

Great.

Thank you so much, Henry. I'll answer the next one, but Henry, feel free to jump in because I think that's more like your question. Can you write off interest if you use a policy loan to fund your real estate project through a business?

Yeah, go ahead.

The technical answer is yes.

My opinion in terms of whether you should do it is different or varying on situations. And I would say it would be more helpful once you have the policy in place to then explore that with your coach.

So the next one is from Ellen Scott. Is it a good idea to access policy growth to purchase a rental property? I know any outstanding amount above ECB is taxable for the current tax year and a tax credit for the last years as A loan is required. That's a great question. Yes you can. I would say when you access your policy, which means you when you take a policy loan to purchase a cash flowing or cash generating property just like what Henry just answered for the previous question is great. As long as you have a plan to pay back that policy loan, I would say that's great. Dan, do you have anything to add on to the question as well?

No, I think you did a good job speaking to it.

Perfect. So next one we'll leave it to Sukhmen.

Thanks Jinjin.

This is a great question from Steven. It's for those that have successfully transitioned to being their own banker with this system. What other active accounts do you still maintain with the major banks? Is the debit account the only required account to utilize? Spend where you need? Lastly, and there is no such thing as dumb questions and we truly mean that last question is how do you manage monthly utility bills based on their frequency? Is this incorporated in your own banking system or not? And team, I would like open this to everyone. Please jump in because there's a lot to unpack. The first thing that came to my mind with this question is.

What other accounts do you still maintain with the major banks? Is it a debit account only required to utilize or spend where you need?

Eventually, if you can build up your system to a point where you can funnel all your income through the system and then use it to fund the big expenses in life, that's great. It's going to take time to get there, so the bigger picture can be daunting. It's about first working out how, how can we can start the system. The second thing is again, it's not a either or should I do infinite banking or should I do this? So in terms of recommending whether or not you should just do this, we never say to anybody that you shouldn't use for example a HELOC to invest into an opportunity if the opportunity arises. So it's not a bad thing to have that option available to you if you have the HELOC there to not miss out an opportunity to invest as a real estate investor, that's how I'd answer that question there. And then the last part of the question, how do you manage monthly utility bills based on their frequency? I think this question, the best way to answer it is it depends on you. It depends on what your amount is that you're comfortable with funding through your system. So for myself, a rule that I have is I like to only fund purchases that are $2,000 or larger through my system, I feel anything lower than that for myself. That's a place that I like to use my credit card and pay it back or use my own cash to pay off those amounts. But someone else's cash amount might be higher. I know some of the coaches I've talked to, their advice is that it's $5,000. So that really does depend on you, Stephen, and where your system's at. Right. Tarin went over an example of paying his property taxes and insurance through the real estate. Right. And then Henry talked about actually funding deals with his real estate with his IBC system. So that really does depend on. On where your system is and what the rules are that you set in place. And that's the beauty of it. You are the banker. You get to decide those things. So, team, if there's anything else there, please jump in.

Good job answering that one, Sukman. I'll jump into the next one. And it's from Jeffrey. And it's a good question for all of us. From your collective experience, what has been circumstances in which.

It'S always tricky when that thing jumps on you when you're trying to read it, in which your clients decide to put their policy loans as collateral for down payment instead of taking out a policy loan. So again, this one, you know, I suspect what you mean by that, Jeffrey, is where somebody puts their policy as collateral and not a policy loan. So if you build up enough cash value in a policy over time, you can actually collaterally assign it at a commercial bank and you could use that for a down payment instead of taking out a policy loan. So I believe that's the question that you're asking, Jeffrey. So again, each case is going to be dependent on the person. Now, you know, my experience, and I've been doing this since, you know, I've been practicing since 2014. I, you know, I haven't clearly signed any policies. I don't have any plan on clarity signing a policy. And in the short term, because I'm still able to stay below my adjusted cost basis and I'm going to work with a life company before I'm going to work with a commercial bank. But I have seen cases where people have put their policies up as collateral assignment. And again, it's a good conversation to have with your coach and just go through the pros and cons of it all and make sure you understand it before you do it. Anyone else want to add to that one?

I personally have not planned to collateralize my policy with a bank is number one that I try not to do business with bank. Secondly is I do want to keep my policy private at this stage. So again that's a decision that you have to really consider a lot of different factors. That's a great personalized question to ask your coach.

Thanks Jenjin.

We have another question here from Jeffrey asking is it better to have more than one policy, for example one for real estate investment and another to finance one's own property? Absolutely. This is not meant to be done in one policy. You know, everybody has different needs and financing needs and for some a few policies may do the trick. And for others like you know Jason, he's got over 70 policies in his system so it is a case by case basis. But having an objective for a specific policy is a really, really great way to get started and you add on as you're able to.

Before we jump to the next question, I just wanted to say that we just we try to add most value. We try to answer as much as question that we can. So we will extend for another 10:15 minutes. Is that okay?

Maybe, maybe we can just as a quick value check for all of our attendees. One one being you wish you spent your time doing something else or ten you've got tremendous amount of value in terms of your attendance and what you've learned in terms of getting your personal question. Your specific questions answered in our, you know, Q and A here. Just please type a 10 if you feel you've gotten a lot of value from that.

Markin King 37 oh Robert and Shirley put infinite.

Love it. We got a lot of tens. Awesome.

Thank you so much.

Maybe we can go to the next question from Berhan.

So what are the possible issues and threats that may arise in a total economical crisis or market failure in conditions and drastic levels and or lengthy periods? I'm going to go into my crystal ball and start predicting the future. I unfortunately I'm not trying to make a bad joke out of it or I hope you don't take it that badly but I mean there's always information coming from either ways of good things and bad things. And one thing that we can just say is you are going to need to practice the process of banking. Do you want to practice the process of banking at the UNME level or do you want to use the current banking system and rely on that banking system? That's at least in my opinion. The second part is in terms of the prefer the insurance companies that we use, they've existed in Canada for over 100 years which includes World War I, World War II, the Great Depression, multiple recessions, pandemics, you name it. Interest environments going where the interest rates were upwards to 20%. Taxes going up and down, irrespective of the economic environment. The insurance companies that we use have never failed to generate a profit and provide a divisible surplus to the policy owners every single year. Now, if you ask me, at least from the track record, that to me shows a lot of confidence that I would place it.

Thank you, Henry. Anyone wants to add on that.

Because of the time. We'll just move on to the next question from Neil. Is there an upper limit for a whole life insurance policy? Roman, do you want to answer this one first?

Yeah. Thank you, Jinjin. So I understand that Neil, you're asking about a limit for coverage, right? So if that's the case, then there is a limit based on your income and you just need to talk to your advisor in order to see where the limit is. And let's say you hit this limit at some point, right? So can you put insurance on your.

Family members or maybe business partners? Right. Yeah, you can do that. So in terms of premium, again, the premium is also dependent on how much coverage you're buying and the coverage it has limit on your income.

Great. Thank you so much, Roman. Yeah, I know when we build the. Becoming your own banker, when we use this process to build design the policy, it's hard to hit the limit again. You wanted to make sure we all have insurable needs, right? So that there. There is no limit on the number of policies you may have, but there might be a limit on the total death benefit insured based on your assets, based on your income. So it's a great question to ask your coach as well based on your own situation. All right, so we'll move on to the next question. If not. So the next question is from Stephen. Sorry, just randomly pick up one. When considering the amount of interest you plan to pay back to a policy loan, how do you determine whether there is more benefit to set up lower rate and use any extra fund to generate another policy? Sukhman, go ahead.

Okay.

I think Dan. Dan had said he wanted to answer that question there, so I'll let Dan start.

Okay. So yeah, it's a great question, Stephen. So here's a way I would give you for guidance there. So the. The life company is going to set an interest rate and so you get the opportunity and Nelson taught us to pay ourselves at a higher rate than what the life company's asking for. Now the key thing is with the incremental amount that you're going to pay back, that needs to go into premium somewhere. So if you don't have the ability to do it within that particular policy that you have, then it makes sense to look at can I start another policy? So the first thing is, you know when you're paying interest back, the life company is going to set down interest rate pay that if and if you're practicing what Nelson taught and you're paying yourself more, find somewhere to put it in his premium because that's what he taught. So put it in his premium in some way. And if whether it means you have to start another policy or not, that would be determined by your circumstance.

Yeah, that's awesome, Dan. Only thing I'd add on is again, a very case specific question. When we say this, we mean this with.

We mean this in a very good way that you should meet with a coach and discuss these type of questions because it is a scenario specific question, right? So depending on your situation, Dan's right. This may be a good idea for you to actually implement this, but it may be a good idea to actually start flowing the cash through your or flowing your cash flow through your system and start paying back some of that debt and freeing up some more cash flow for yourself.

Right.

So again, I would say exactly what Dan said. Speak to your coach about this and see what strategy can be created by working together to help you reach your specific goal and the purpose of why we're starting this banking system for you.

Jingen, I think that if I'm not wrong, I think that may be all the questions that were in the question box.

That's great. Awesome. Thank you so much team. We answered all the questions and for those of your question we did not mention during the webinar, one of our advisors has already wrote down the answer for you. But don't leave the lingering questions alone. Book a call with us and let's discuss about the situation on yourself. And you know, here at Ascendant Financial we are great on education and we wanted to bring values to you and your business. So if this webinar has brought value to you, we also appreciate if you can leave us a review on Google. We heavily depend on Google reviews so that a lot of people can hear about us. And also don't be shy to book a call at the very end. I actually really wanted to use two minutes to share what Nelson really taught us about real estate. Because as we know, becoming your own banker is not just for real estate.

It'S it's a. Just want to repeat this. The infinite banking concept is, is a exercise in imagination, reason, logic and prophecy. And one of the golden rule that Nelson says is don't be afraid to capitalize. And he also remind us to think long term. And I want you to imagine if you had 45 properties that you own. Imagine that all those 45 properties are 100% paid for. You don't have any mortgages on it and all Those properties are 100% passive. That means that you don't have to pick up a tenant phone call, you don't have to pay a utility bill, you don't have to pay a property tax, you don't have to pay any maintenance. And they will generate this passive income for as long as you live. What would you think that impact would be to you and your family in many generations to come? What would that be? And When Nelson graduate 17 of the 45 properties, they are automatic sell at the highest value because remember guys, the the death benefit always growing and the cash value always goes up and they cannot go the other direction. There's no capital gain tax, there's no tax, no fees associated with that. You don't have to pay any realtor fees and staging fees, any bypass probates and many many different benefits. But when Nelson passed away, 28 of those properties are still around. They can be transferred to the next generation. They will continue to grow daily and.

Readily accessible equities are available for your children and next generations. They continue to produce income. And guys, this is what want you to continue to think about when you're talking about infinite banking concept and real estate and think of what Nelson did and go back to his teaching and his book.

All right, with that being said, we look forward to seeing you and book a call with your coach. Thank you so much everyone.