Dan Allen explains how dividend-paying whole life insurance works as a capital warehouse, letting you access money on demand. R. Nelson Nash bought timber at $50 an acre with owner financing, negotiated it down to $38 an acre, then sold it for $500 an acre in just over a decade. Allen has used this process since 2014 and says the real value is the control and flexibility it gives you.
Questions this video answers
$50 per acre.
$38 per acre (after a 25% on-the-dollar reduction).
Just over 10 years; sold for $500 per acre.
Since 2014.
Since 2017.
Chapters
That's one of the key things about this concept and this process. It's the opportunities that will seek you out. Once you have capital built up in a system that you control, you get to decide if you're going to pay it back in one year, two years, 10 years. Nelson always said have a plan to pay it back, but he didn't say you had to pay it back right away.
What kind of return can you get when you become the banker we speak about and we help people implement a process called becoming your own banker in their lives. And have you ever wondered, what kind of return can I get using this process? Well, today I wanted to talk about one example that the late R. Nelson Nash gave us of the kind of return that he got by using the process that he developed, which is called becoming your own banker. Hi, my name is Dan Allen. I'm with the Senate Financial and I've been helping people like you since 2017 implement the process called becoming your own banker in their lives. And I've been practicing it personally since 2014.
Some people, when they look at this concept, they fixate on the product that we use. Now, if you don't know, we use dividend paying whole life insurance as the platform for the process called becoming your own banker. Now, there's a lot of great attributes that come with that product and it's the reason why it's the best tool we found to use for this process. Now some of those attributes that I really like is, for example, safety. It's the safest place I found to put my money to warehouse my money. And in fact, if you can find a more safer place, let me know. I'd love to know that one. And it's predictable. I like the fact that I can predict that.
My values will continue to go up. They have to, by contract. And I like the fact that I can look at what my value is today and I know it's going to go up tomorrow. And with a high, high level of confidence, I can see what it's going to be a year from now. So there's a lot of great attributes. And another thing I really like about the product is it gives me the ability to access the value I have built up in it, the cash value that I have built up in it through policy loans without any cost. Like there's not going to be a fee to take and access that money. Now I have other instruments where I've been storing money over my life before I knew about this, and some of those that if I needed to take Out a chunk of money out of there, the cost to me would be huge because I'd end up paying the tax on that money to take it out. So I like this process, I like this product because I can access my cash value without having to worry about what is it going to cost me to take that out of there. And I like the fact that my money never stops growing, even if I do take out a policy loan. So there's some great attributes that come with the product, but the real value and the real opportunities that come with the process called becoming your own banker is not about the product, it's about the process. So today I thought I would share one story that Nelson gave us. And I was fortunate enough to hear Nelson speak to that story live. But it's also in this book and it's a great book. If you haven't got it, you should. It's called Building youg Warehouse of Wealth. That's by R. Nelson Nash. That story is right in this book. So I'd encourage you to get that book because there's a lot of good information in there that Nelson shared with us. Now, this particular story took place when Nelson was in the Alabama Army National Guard and he was a pilot. Nelson spoke a lot about how he loved being a pilot. And one of the other pilots that was part of that National Guard army came up to him one day and said to him, I got an opportunity for you to consider. So this person needed some cash. And so he offered to Nelson an opportunity to buy 100 acre timber lot. And what he was charging for that was $50 an acre. And he told Nelson, hey, I'll finance you for 10 years if you'll buy this property off me. Now if you know Nelson's history, you would know that he was educated as a forester and that he worked in forestry for 10 years. So he knew a lot about timberland and the value of it. So he knew this was a good deal. So he took the deal and he signed that contract and away they went. Now all things were good. Nelson was starting to pay for the property over time through the owner financing structure they had set up. And then about 18 months after that started, the same guy called him up and said, hey, can we meet? So Nelson said, sure. And in that meeting, the guy expressed that he needed his money now if at all possible.
And he said, in fact, Nelson, if you can pay me what you owe me now, I'll reduce the price by 25 cents on the dollar. So Nelson knew right away, this is a great Opportunity for him. And because Nelson had the money he needed to do this transaction in one of his policies, he was able to tell the guy, I can do that now, just wait, I'll get your money right away. And in fact, where Nelson lived, he was able to go down to the home office of the life company and get that check the same day and close that deal. So what that deal ended up looking like for Nelson was he ended up paying $38 an acre after that reduction for paying for it in a short period of time. So that was a great deal. And Nelson was happy with the fact he owned this property and it was going to be some asset that he owned. Now, the way he talked and told the story was just over 10 years later that he sold that property and he sold it for $500 an acre. Now, yeah, he had paid interest on that policy loan over that time, but that's what he got to enjoy was that kind of a return on the investment he made in that property. So that was an opportunity that searched him out. And that's the key teaching point that I have for you related to what kind of return can you get when you become the banker. Well, that return that Nelson experienced was huge. And I can't tell you what yours may be, but what I can tell you, having the money available in a warehouse, like the warehouse we use, is very specific to dividend paying. Whole life insurance gives you opportunities. And when those opportunities come along, you'll be able to access the money you need to proceed with that opportunity. So that was a teaching point that Nelson had. And that's one of the key things about this concept and this process. It's the opportunities that will seek you out. Once you have capital built up in a system that you control, you get to decide if you're going to pay it back in one year, two years, 10 years. Nelson always said, have a plan to pay it back, but he didn't say you had to pay it back right away. He waited on some of his deals because he could, he had control. He wasn't using other people's money. And people have said, well, he could have probably got that deal by going to a commercial bank. Well, maybe or maybe not. And if he did do it at a commercial bank, he'd have been paying money to someone else for the use of their money. This way he was using his money, his value to get this deal done. It's just one of those attributes that I wanted to share with you about this process. One of the huge ones that opportunities will search you out once you have capital available. So with that, I'm just going to encourage you to take in more information that we have about this process and just go and check out some of our other videos. And if you haven't subscribed to our YouTube channel, you have an opportunity with that. Remember, it's a process, it's not a product. And this process will help you get a great return over your lifetime.
