Jayson Lowe's family uses a long-time attorney to draft loan contracts for $500 each. The attorney manages the escrow account and oversees disbursement from life insurance proceeds. If a borrower defaults without warning, they're permanently cut off. But if they communicate hardship upfront, the family restructures the loan.
Does Jayson Lowe and family create their own loan contracts, or do they get the paperwork from the life insurance company or another outside source? That is an amazing question. So what we did is our family attorney who's been with us for a very long time, she charged us, I think, $500 to create the loan contract. And so I would definitely consult with an attorney. The loan contract should be a very standard cookie-cutter loan contract. But the way that we do this is when a family member wants to access the money pool to control how we finance something, the loan contract is reviewed with the family member who's the borrower by our attorney, not by me, not by my wife, Rebecca, by our attorney. The attorney meets with the borrower. The money comes from the life insurance company. We send that money into escrow with the attorney. The attorney transfers the loan proceeds to the borrower. So it is a transaction that is facilitated no different than if you were buying a piece of real estate or you were financing a business or you were, you know, it's very, very similar in process. And we have a rule inside of our family banking system that if you default and you have not communicated that you're experiencing a disruption to your income or a temporary financial setback, you will never access another penny from the family's money pool again. No exceptions, zero. But if you come forward and you speak your truth, that's where all progress begins is by speaking the truth. And you express that you, need to rearrange, maybe capitalize a payment on the back end of the loan, or maybe capitalize more than one payment on the back of the loan, we will absolutely accommodate.
