Table of Contents
Podcast Transcription
Sandy Mackay [00:02:59] Breakthrough Real Estate Investing Podcast, Episode one hundred and seven.
Announcer [00:03:02] If you’re looking for the skills and tools to succeed in real estate investing, you’ve come to the right place. This show is about breaking through barriers, breaking through limiting beliefs and breaking through to the life that you want to live through the power of real estate investing. This is the Breakthrough Real Estate Investing podcast, and now here are your hosts Rob Break and Sandy MacKay.
Rob Break [00:03:36] Hello and welcome back, everybody. Sandy How are you.
Sandy Mackay [00:03:41] Amazing stuff.
Rob Break [00:03:42] You’re here again. I’m not used to not doing the intro myself, so a little bit weird to just come on and be like, well, hi, how are you? So what’s new, what’s new?
Sandy Mackay [00:03:53] We are closing on a 12 unit soon, that’s new. And the one thing I mentioned earlier, that’s coming up in the next few weeks or a couple of weeks. So we organize some things of that. It’s kind of kind of exciting. I think probably a couple of your project.
Rob Break [00:04:08] Nice. Nice. Nice. Will you update us on that when you close and when things get under way?
Sandy Mackay [00:04:14] Yeah, exactly. When you are,
Rob Break [00:04:17] you know, nothing, nothing too big. As far as real estate investing goes, I am. I’ve been talking about this forever, but that closing on my six plex got pushed back. So that’s not closing until April now. Other than that, I’m looking just looking for deals. If anyone deals, call me
Sandy Mackay [00:04:36] after calling me.
Rob Break [00:04:38] Now, call me first, and then we’ll pass it off to Sandy Hook, a couple of
Sandy Mackay [00:04:42] bucks and possibly we could probably do a whole show going back and forth on that one.
Rob Break [00:04:47] No, call me first. OK, so everyone listening should go to our website Breakthrough Aria podcast. That’s here. There you can listen to all the shows we put out and last 104 episodes are there for you to listen to and learn from all of our guests and also pick up our free report, Right Sandy
Sandy Mackay [00:05:10] for the ultimate strategy for building wealth. The Real Estate’s. And when you do get on that, you do get on her email list. You’ll hear about all the upcoming episodes; you’ll hear about some events going on. Rob does a lot of property tours. You can always go out and check those out. You’ll hear about those and a whole bunch of other cool stuff. So go jump on that list and get your free report and then go. Leave us a review. We’d always love that some comments on our website or view on iTunes primarily rob anything new going on there.
Rob Break [00:05:36] Not today. No, we haven’t had any. I just read the last three on the last show that we did, so we haven’t had any there. So that is your cue everyone listening to get out there and leave us a review because every one of them helps us get up there in the ranks in iTunes and also helps us get recognized by guests. And just all kinds of good stuff gets us out there to more listeners as well. So get over there and leave us a rating and review and let us know anything that you like or don’t like or want to hear that we haven’t covered. I think now everyone should be pretty happy with our audio and know we have glitches every now and then, but I think the audio sounds a lot better than it used to,
Sandy Mackay [00:06:18] although hopefully he’s been. It has been six years in the making. Well, we’re done better
Rob Break [00:06:22] is because that’s our number one complaint, right? Everyone calls and says great content, but the sound is terrible. Yeah. Well, I think we have fixed all that.
Sandy Mackay [00:06:32] So I’ve got two awesome guests standing by. I think we should get to them. Anything else new?
Rob Break [00:06:38] No, no, no. Let’s get to it today. We are joined by Jayson Lowe and Peter Lount. They are going to show us how anything you do, including real estate investing, is improved with the process of becoming your own bank or through the implementation of the infinite banking concept. Welcome, guys. Thanks for being here.
Jayson Lowe [00:06:56] Thanks for having us. It’s great to be with you and with your listening audience.
Sandy Mackay [00:07:00] Awesome. I’m going to go through a couple intros here for you guys and then and then we can get into some questions here. So. Jason Lowe is the founder and the founder of Ascendent Financial Inc, highly regarded coach, speaker and advisor to individuals and business owners nationwide. He’s recognized as one of Canada’s top overall advisors and author of several publications. Jason’s delivered hundreds of presentations to the public, appeared on countless stages and interviews, and is internationally recognized as one of the leading educators and implementers of becoming your own banker. The infinite banking concept never got Peter also stand by. Peter started real estate investing journey by house harking back in 2001 and is on several single and dual family homes before settling in on partnerships in apartment buildings and commercial properties. And it was his pursuit of making his real estate investing more resilient that he found Jason and his team. And after being a client for two years, Jason, Peter and Jason joined, or Peter joined Jason’s team at Ascendent Financial and feeling it was time to connect with fellow real estate investors and becoming entrepreneurs and entrepreneurs to teach them how infinite banking could add a strong foundation in pursuit of reaching their goals. So again, welcome to the show, guys. Anything to add to those intros.
Jayson Lowe [00:08:16] Oh, I think the intros that we scripted were perfect. You know, people listening or thinking, OK, let’s go. Let’s get into that. But no thank you. Sincerely, thank you again for having us as guests, and we’re really happy to be with you and your audience.
Rob Break [00:08:35] Yeah, thanks for being on. Hi, Peter.
Peter Lount [00:08:38] Hello. Yes. As a longtime listener to you guys, you guys are all part of my journey to for sure. I see Jason most more recently but having less you guys for a number of years, it’s pretty cool to be on the show too.
Rob Break [00:08:51] Well, thanks for being here. So let’s start off with our typical first question has told us a little bit about your real estate investing during so far. How did you get here and then where did you start from? I guess was go ahead, Peter, let’s start with you.
Peter Lount [00:09:05] Sure, yeah. So I think covered a lot of it in really in the intro part, but yeah, I was going down the road in terms of being, you know, living the corporate dream and I bought my first house. And so the whole second part of that ended up getting a colleague and a friend joined and rented out the hair salon that I owned. I’ll pay for the mortgage and kind of got me going, you know? And then from there, I still had that bug. I knew that there was something that had happened on my side, so I thought real estate was going to be the way. And certainly that’s where I went. I end up getting a I started with a duplex, like a semi-detached duplex with a couple of renters, and that seemed to cash flow pretty well and then went to a condo and then just hungry for more. And that’s where I was all part of, you know, going back to rich dad, poor dad and just, you know, podcasts and books and all that became hungry for more and then grew that into where I was, you know, to scale it out, I knew how to do something a little bit more. And through just going to meetings and talking to people ended up it ended up being someone who it was, who I’ve known for quite a long time allowed me into his partnership to. To get into apartment buildings where I didn’t have the day to day worry about that call on a Sunday afternoon that called the furnace working, et cetera. At this point, I’m really now more a passive investor. And that’s led me to really to this point where I, you know, I wanted to do more. And through that research, going through podcast like I haven’t gone through all yours, I was going to podcasts in the states listening to some of those and I heard someone talk about internet banking and I wanted to know more. And that’s how I ended up finding Jason. So it’s come full circle.
Sandy Mackay [00:11:11] Awesome. Jason, you want to take us a little bit through your journey.
Jayson Lowe [00:11:15] Yeah, absolutely. Thank you for asking. I purchased, oh gosh, this is going back to 2000 when I purchased my first condo. And that was really the, I guess, the niche that I chose for my real estate investing journey and how I got introduced to that was. So there were a group of individuals that I worked with and worked for, and they were achieving really good success in their real estate investment activity. And they invited me to participate in that process. And so the first property I got, I put a $4000 down payment and it was part of a rental pool and I got bit by the real estate bug. And so I thought, wow, this is this is fantastic. You know, the tenants are screened there, the rent checks just come in. Everything is perfect. I want to do more of it. And so I started to obviously create more leverage and purchase more properties. I was introduced at that time to a gentleman named Don Campbell and joined his real estate investment network at that time. And we ended up acquiring 13 properties in total. And then in July of 2008, I was introduced to what we now know to be the process of becoming your own banker, the infinite banking concept. And everything changed for me. And so when I was an active real estate investor, I really, I loved owning those assets, but I really didn’t understand that I truly didn’t own them. And so the stream of payments that was coming back was just a little bit more than what was necessary to offset the expenses associated with carrying those assets. And I was worried about tenant issues and vacancy issues and all those things that came up. And what changed for me in implementing this process of becoming your old banker is it’s created a very peaceful, stress-free financial existence where I can participate in opportunity that comes my way. But I don’t have to rely any longer on the use of or the necessity of a commercial bank, because that puts me now in a position of total and absolute control. I really enjoyed my real estate investing journey, but today I don’t purchase or get involved in real estate the way that I used to. I am getting involved in real estate from a financing function, but not from a go out and purchase property function. I’m providing capital and controlling the repayment schedule of that capital. And I still have title to the property. And so that is just a different way for me to go about achieving success in the area of real estate and the real estate investors that we meet with practically every single day when they catch this process, when they really understand how this process can be an advantage for them. They can’t get enough of it.
Rob Break [00:14:18] Well, it’s come up a few times over the past few years in my world, and I am very excited to hear more about this process because there are a few people that I have met and have taken off running, and they are very, very excited about it. So that’s good a little bit about how this concept works. Becoming your own?
Jayson Lowe [00:14:36] Yeah, absolutely. The essence of becoming your own banker is really to recapture the interest and to recapture the payments that you would have otherwise been obligated to transfer away from you by making those mortgage payments or making those credit card payments or those personal lines of credit or whatever instruments that people are using to access capital to go and purchase real estate. It all began with this book titled Becoming Your Own Banker, which was authored by R. Nelson Nash, who he I was blessed beyond the definition of good fortune. He mentored me personally for several years before he passed away, sadly in March of last year. He was 88 years young, and he had been practicing this process for several decades. And I just want to share with listeners that the reason this process was created was back in the early 1980s, our Nelson Nash found himself owning a half a million dollars in mortgage debt on real estate investment, and interest rates peaked at just above twenty-one and a half percent. And so for him, that meant over $60000 a year, just in interest payments alone. And so while all the financial gurus were explaining to him at that time, hey, you need to go out and acquire property, you need to go out and purchase real estate. This is a great way to build wealth. Nobody told him or talked to him about what happens when the interest rate lever goes the other way. And so this process was born out of necessity because he had to get himself out of that jam. And he knew that he couldn’t sell the property. He thought to himself what Fool would purchase property from me when interest rates are peaking at 21 and a half percent. So it took him 13 years to get himself out of that financial mess by implementing this process in the way that he went about doing it. He already had the tools. He just didn’t have the process. The tool is a system or a dividend paying participating whole life insurance policy or a system of policies, and these contracts are only the tool that’s used to implement the process. He had accumulated significant amounts of cash value inside of these contracts. And he was able to use that cash value as collateral for loans from the insurance company at eight percent. So the bank was. Looking for 21 and a half, he could access capital at eight, so that made sense to him. He had the epiphany and said, Listen, I’ve already got the tools that I need to get myself out of this mess that I’m in. He was able to access policy loans from the insurance company, and just so your listeners are aware, a policy loan is unstructured. So when you request that loan from the insurance company, the insurance company is not requiring a repayment schedule, nor are they dictating a repayment schedule because the insurance company itself is guaranteeing the collateral for the loan, so they don’t need to structure a loan repayment. They know that the owner of the policy is going to repay that loan on their own schedule, or the death benefit of the insurance contract is going to extinguish that loan balance when the life insurer dies. So Nelson was able to get rid of what he called the snakes and dragons. And since that time and prior to his passing, him and his wife, Mary did not see a commercial bank for 30 years other than for the convenience of debit. And so that puts a person in a position of total and absolute control as it relates to the financing function because you can’t get a better rate of return doing anything on the planet if you don’t control the banking function. And so that’s what this wonderful book. It’s a 92-page read. It’s just the better part of less than an afternoon to get through, and we are going to provide an irresistible benefit and value to your listeners today. So stay tuned on the show because we’re going to share that. Stay with us till the end and we’re going to provide you with a package that it’s just going to blow your mind.
Rob Break [00:18:55] Very, very good. So let’s break this down a little bit more. Let’s go into like. So I’m interested in this, right? How do you good? You just did a broad overview, but let’s sort of break down each piece so that it’s more digestible for the people that are listening.
Jayson Lowe [00:19:14] Sure. Do you mind if I share? Do you mind if I share a real example? Go ahead. Would that be, OK? So let me take you back to April of 2008, and you could still get 40-year amortization on mortgages back in April of 08. And at that time, my wife, Rebecca, and I, we just moved back to Madueke, Alberta, where we still reside today. And I was on an international work assignment in Florida, where I also purchased some real estate in the state of Florida. And so we moved back to Leduc, Alberta, and we purchased the Residence. It was the show Home Builders Show Home. And after the down payment, the mortgage on that property was about four hundred and twenty-seven thousand dollars. Now, the interest rates were fantastic at that time, prior to citizens being acquired by their mortgage portfolio or being acquired by TD Bank. Our interest rate was two-point sixty eight percent if my memory serves me correctly. So we were making a payment of about six hundred and ninety-two bucks a month, and we were sending an extra $200 a month to the bank thinking that we were doing something advantageous for us. But all that we were doing was increasing the margin of safety for the bank, not for us. We were saying, Listen, hey, bank, you don’t need to go lend someone else money. We’re going to send you more than what you’re calling for. We’re going to increase your margin of safety. And we know that in real estate, we hear the words. Location, location, location and what we talked to real estate investors about all the time is it’s all about the location of the equity, the location of the equity, the location of the equity. So let me get back to the specific example. So a 40-year amortization on the mortgage, we did not know anything about becoming your own banker at that time until July of that same year, and that’s when everything changed for us. We began to purchase the tool that was necessary to implement the process. So we began to purchase dividend paying, participating whole life insurance contracts from a mutual life insurance company and in Canada, Canada’s largest mutual life insurance company. And immediately, we created death benefit. So it is a life insurance contract, but you don’t have to die to win the moment that that contract was put into place, it started to accumulate cash value on a daily basis. And the insurance company contractually guarantees that the total cash value will match the total death benefit by age 100 of the life that is insured. And so every single day, regardless of what was happening in the stock market, the real estate market, whatever economic cycle we were in at that time, the cash values in the policies were rising daily. We began to access policy loans. We would go down to the TD Bank branch and we would say, hey, we’d like you to take this lump sum of. Twenty thousand dollars. And we want you to put that money down toward the principal balance of the mortgage. So immediately, the principal balance of the mortgage dropped, but our payment stayed the same. So every future payment that we were making was more financially valuable to us because it was accelerating the repayment of principal much faster than the original amortization schedule. And all the while our cash value was rising inside of the policies. Because when you take a loan, you’re not interrupting the daily growth of any of your own cash value. The cash value only serves as collateral for the loan. So now I’ve got a mortgage balance that is decreasing, a cash value balance that is increasing, and I haven’t changed my cash flow because my mortgage payment each month remained the same during that term. Every future payment became more financially valuable to Rebecca and me. We took a 40-year amortized mortgage and we got rid of the bank in seven years. Now, at the end of that seven-year period, we were no longer contractually obligated to send a monthly payment to TD Bank because they were out of the picture now. We had a policy loan balance of about two hundred and twenty thousand. So the eight hundred and ninety-two bucks a month that we were originally sending away from our family, we could never spend it again. We couldn’t use any of that to invest in more real estate. It was a permanent transfer of money away from our family. Well, that money’s coming back to our family every month. And we moved since then into our dream home, and we’ve leased out the property that I’m describing to you now. So now we have tenants who are sending us over $2000 dollars a month. And guess where that money’s going. It’s going right back into our system so that we can utilize that money for opportunity. That certainly appears when you have ready access capital, you become an opportunity magnet. And so I’ve since acquired other businesses. We have an Amazon resale business that’s producing six figures a month. We’ve acquired a pack and ship company. We know all of these opportunities were made possible because of the process of becoming your own banker. The infinite banking concept. And I get so excited about it because if you’re a real estate investor, what do you want? You purchase the real estate for a deferred benefit. Well, why deferred the benefit? Let’s increase your cash flow. Let’s get more money coming back to you so that you can become an opportunity magnet and you can go and take advantage of opportunity in your niche. And if that’s real estate investing, fantastic in that good.
Rob Break [00:24:53] That’s great, and I would imagine for most people here, it is going to be real estate investing. And that’s absolutely for them. They’re going to have this big of a smile on their face as you do, I think.
Jayson Lowe [00:25:03] Well, I’ll tell you if I can just share with you guys. First of all, I love educating people, especially on podcasts. Look, you’re going to need the use of money for the rest of your lifetime. But all of us, gentlemen, we can agree on that. And in order for transactions to happen, like the purchase of real estate, money has to flow from one supply source to another in a relatively short timeframe. Otherwise, nothing happens. Here’s the difference between someone who’s a real estate investor practicing this process and someone who’s a real estate investor who’s not. If you’re not a practicing this process, you’re penalizing yourself and you don’t even realize it, because even if your property is cash flowing positive, where is that money residing? In someone else’s bank.
Rob Break [00:25:55] With the bank, yeah, right.
Jayson Lowe [00:25:57] And so when that money shows up into someone else’s bank, and I’ll say that again, someone else’s bank. You are handing control over the motion of that money over to someone else who thinks they can do better with it than you can. And so the person who’s implemented the process has the money flowing back to their own system that they control and when opportunity shows up, which it will most definitely show up when you have ready access, capital opportunity will track you down, I guarantee it. You can take advantage of that opportunity. And you don’t have to go through any lengthy, nosy loan applications. You don’t have to provide 7500 years of financial statements and you don’t have to qualify for the loan. You don’t have to explain why you need the capital. There’s no lengthy, nosy credit checks or anything. There’s no personal guarantees. So all of those stressors and, you know, elements of a process that you don’t control that creates anxiety and stress. And then when the interest rate lever goes the other way, panic sets in. Whereas when you become your own banker in the interest rate lever goes the other way, it works in your favor. And so for people who are listening, who are active real estate investors brand new to their journey in real estate. Remember, one thing that is so fundamentally important. Interest rates go up, interest rates go down, economic cycles are good, economic cycles are bad, real estate markets go through a very predictable cycle. But the process of banking goes on no matter what. And so if you ask yourself, who is the banker in your life today, if it isn’t you, it should be in this process of becoming your own banker enables you to take control of that function. Isn’t that good?
Rob Break [00:27:54] That’s great. Real quickly. So is there any reason why the insurance company would call the loan to be paid back ever?
Jayson Lowe [00:28:07] Yes, if the life insurer died.
Rob Break [00:28:10] That’s the only time,
Jayson Lowe [00:28:11] that’s the only time. So going back to the tool because I really want to make sure that I plant the appropriate seeds with your listeners to understand that there’s a process which is becoming your own bank or the internet banking concept. And then there’s a product, which is the dividend paying, participating whole life insurance policy or ideally a system of policies. We have 46 policies in our family banking system. We put over $360000 a year through our system. We recapture all of our personal and corporate overhead through our own system that creates a very peaceful, stress-free financial existence. Now, when we access policy loans, we have every intention of repaying them because if we would have access to money from a commercial bank and the commercial bank would have structured the loan, the bank structures, the repayment schedule, the interest rate, the amortization period, et cetera. So when you become your own banker, guess who’s in the driver’s seat of structuring the loan repayment
Rob Break [00:29:19] so you can just repay that loan whenever, like a chunk of money comes in, you can say, now I’m going to dump that back onto the loan.
Jayson Lowe [00:29:25] You got it. And so that when you are in a position of total and absolute control, then things like interest rates just don’t matter. Because this is not the process of becoming your own banker is not a function of interest rates. It’s not it’s not about addressing the yield of an investment. It’s all about how you finance the things in your life, which can certainly include investments. But this is all about taking control of that banking function as it relates to your needs and whether you decide to own policies personally or you decide to own policies corporately, which in Canada is you can go in either direction, they can be personally owned or corporately owned. It is so gone ahead.
Rob Break [00:30:10] So what I was going to ask you then is let’s take a worst-case scenario here, and let’s say something happens to you tomorrow. Yes. Is your family on the hook for and how would they go about repaying?
Jayson Lowe [00:30:21] That’s a really good question. So God forbid, if the unthinkable happened to me, the death benefits of the insurance policies are going to extinguish any existing loan balance immediately. Right? And then the net yes, benefit proceeds are going to be paid to my beneficiaries income tax free. There’s no taxable event triggered as a result of the payment of the death benefit, proceeds now envision that as a real estate investor. So Peter and I were dealing with a few real estate investors here recently who are joint venture partners, and God forbid, if the unthinkable happened to either one of them, they are jointly and severally liable for the mortgage debt on those properties to the tune of almost three million bucks. Where’s that money going to come from? If the surviving joint venture partner doesn’t have the capacity and doesn’t qualify to maintain the financing on those properties, the way that they’re structured going forward is that not only are they going to be able to take advantage of all the benefits that I just described to your listeners, but heaven forbid, if either one of them passed away, then the death benefit will extinguish any of the loan balances and there’ll be more than enough net proceeds to wipe out the remaining mortgage balances on all of that investment real estate. And so we didn’t change the objective, which was to
Rob Break [00:31:45] keep that only happens over a period of time where the where the dividends build up. If they took out the policy today, yeah, let’s say they’re halfway. Yeah, yeah, it’s full. Yeah, right. Let’s say it’s a million dollars. Yeah. So if they’ve got access to $500000, right, and they’ve spent it. So essentially, if they were to pass away the next day, well, there’s no money to pay that loan.
Jayson Lowe [00:32:13] No, there is. There is. So the insurance company will only permit you to use as collateral 90 percent of the total cash value of the policy at any time. And so to give you an example, if we created a policy on your life today and it had a $3 million starting death benefit, the cash value in that policy is going to begin rising immediately. But on day one, the only benefit to use the death benefit, there’s very little cash value in that policy on day one. Right? This is a process that let me ask you this when you speak to are your real estate investor yourself and your plan might be or not. When I first got into real estate, I purchased property thinking, you know what? Twenty-five years from now, these properties are going to be paid off. And so you already understand how to think long range? Yeah. Mm hmm. And so all the while, if you had an aquarium of capital that allowed you to take advantage of other opportunities to make your real estate program even better, that puts you at an advantage when compared to someone who’s not doing that. And if you died at any point along the way. I don’t know when you’re going to die, but I know that everybody has a best before date and when that day comes, and it will come for everybody who’s listening. If you have an abundance of tax-free death benefit that shows up exactly when it’s needed, the most is that put your surviving joint venture partners or your surviving family members at an advantage or disadvantage?
Rob Break [00:33:49] Well, I guess like anything else, you have to be smart when you’re using the policy. Agreed. Agreed. That’s what the bottom line is. It’s like, it’s like, you know, it’s like anything. You got to go into it with a responsible, planned out mindset.
Jayson Lowe [00:34:03] Well, let me expand on that. You need to go into it with a coach. And so you need someone who is practicing this process, who’s an authorized practitioner with the Nelson Institute. Somebody who’s experienced who practices this themselves. So for your listeners, if they’re interacting or speaking to someone about this concept, it would be important, really valuable for them to ask the person that they’re speaking with. Can you show me your own program? I’d like to see how you’re utilizing this process in your life. And are you an authorized practitioner with the Nelson Institute and how long have you been implementing this process? Do you do it personally? Corporately, both. It’s so important to work with a good coach, and I’ll just not to be braggadocious or anything, but at a Senate financial. We are the very best at this because this is what we do. We specialize in educating the general public about this concept and have been doing so for the past 12 years. But I agree with you, I agree with your point completely, because if you put the best tool for the job in the hands of someone who doesn’t know how to use it, not only are they not going to turn out any good work with the tool, they’re likely going to break the tool. And so it’s really important to have a good coach to help you through that, and I agree with your point completely. You have to be responsible.
Sandy Mackay [00:35:25] This is an interesting topic. This is great, I think this is something we never talked about before, so this is this is unique. We’ve talked about already advantages of real estate investors. You have no idea around how they really is of a 72 percent more or influence. Yeah, they can earn 72 percent more through this. What’s the what’s the logic behind that?
Jayson Lowe [00:35:47] I think I did the math wrong on that one. It’s actually higher, so. So think about it from this vantage point. If you’re able to if you were comfortable initially when you purchased that, that property and if you say, hey, look, you know, I’m completely comfortable with a long-term hold on this property, I know that gradually over a period of time, the principal balance of the mortgage is going to go down. My cash flows are going to go up if you can speed up that process. We’re not changing your objective, which is to increase cash flow and to create more opportunity and to enable you to expand your real estate program. We’re just changing the process that you’re going about achieving that objective. And the return truly, truly becomes infinite, because you’re the one that’s in a position of total and absolute control as it relates to the financing function is now 12 years into my journey. If I looked at a property that was $400000 today, I can acquire that property by accessing a policy loan from the insurance company. I don’t have to go to a commercial bank. I don’t have to speak to a fat cat banker who wants to pepper spray me with 58 million questions about every financial transaction I’ve ever been engaged in over the course of my lifetime. All the insurance company asks me is, would you like us to electronically deposit the money into your checking account? Or can we mail you a check? That’s it. And so for me, I get to take advantage of opportunity. I don’t have to wait, and we can all agree. Money doesn’t wait. When there’s opportunity, you’ve got to pounce on it. And if you’re dependent upon the commercial banks. And I’m not. That puts me at an advantage, and we want to put your listeners at an advantage.
Rob Break [00:37:40] So let’s really quickly go through and I know it’s different for everybody. But let’s really quickly go through what the policy might look like for someone. Let’s say, let’s say Sandy wants to get a policy, OK? You threw out the number $3 million. So is that a typical? Is that typically what it would look like on as a death benefit for? No, no.
Jayson Lowe [00:38:06] OK. So first of all, thank you for asking us to do that. That’s a really, really going to be helpful for your listeners. So where we were we would begin is we would first begin with clearly defining a financial objective that Sandy wants to achieve. And so if Sandy said, hey, listen, and again, Sandy, just to keep this really simple. Sandy says, hey, I’ve got one piece of investment real estate, and my current trajectory was that it was going to be paid off in twenty-five years. I would like to achieve that in 10 years. OK, that’s a very clearly defined financial objective. What we’re going to do is we’re going to go back and we’re going to engineer the policy and we’ll sit down with Sandy, and we’ll see Sandy based on what you’ve defined as your objective. This is the amount of premium that you would need to deposit into this policy on an annual basis or a monthly basis, whatever’s more convenient for you. This is the amount of premium that must go into your system in order for you to achieve that objective. So let’s say, for example, if that was 20000 a year in premium, I’m just picking an arbitrary number here, Sandy. We have clients that put in as little as one hundred a month. We have clients that put in six figures every month. And so if you’re somewhere in between those two numbers, we can help you. But we sit down with sandy and sandy says, well, you know what, twenty thousand is not really going to work for me based on how I’m structured financially, I can put 15000 a year into the policy, what we go back, we engineered again and then we come back to Sandy. We say, well, based on that change of deposit, it’s going to take you 13 years to achieve the objective. So we work backward from a financial objective, not a death benefit. The moment that the premium is put into the policy, there’s a starting death benefit that’s triggered instantly and then that death benefit rises every single year and it’s also participating. So you participate in the divisible surplus, or the profit generated by the insurance company because you when you have a policy, you are a part owner of that insurance company. And so the divisible profit is distributed only to the participating policyholders. And so that’s another added advantage. But from a process standpoint, we’re not moving forward with sandy or anyone else until a few things have happened. One, you’ve got to read the book. Becoming your own banker, that’s step one, step two. You’ve got to meet with a coach, somebody who understands how to implement this process. We have to make sure that you have clarity on the concept that you get all your questions answered, much like what Rob is asking and that you don’t do anything at all with this concept unless you have complete clarity. And so when we go through that consultative process with a prospective client, there’s no solicitation. We’re not asking you to buy anything. We’re not trying to back you into a corner or twist your arm to do this once you catch this. You’re going to know exactly what to do, and we’re going to be here to help you. And then once we implement it, we meet with our clients once every six months. We provide that ongoing coaching and mentoring, and there’s no fee for that service. The insurance company itself, renewal rates us for the placement of those contracts, and we are extremely well paid for what we do. So we don’t charge any additional fees for the ongoing coaching mentoring that we provide our clients.
Rob Break [00:41:29] OK, so basically, what you’re describing here is, is a life insurance policy like anyone should have anyway. Catered to you that you can that you can go out and use for your benefit at the same time almost.
Jayson Lowe [00:41:46] So you’re correct on the policy. But we’re also not really talking about is a system of policy. So again, just to refresh for your listeners, that’s the tool. That’s the tool to get the job done. The process is what you need to be coached and mentored on. So we’re dealing with two very distinct things here. We’re dealing with a tool and we’re dealing with the process. We put a coach right in the middle and we say, Listen, we’re going to help you learn how to use this tool to implement a process. Function of banking is a process. It’s not a product and everyone listening. Banks, and they have to deal with that function in their life on a daily basis. When you pay for fuel, when you pay the property taxes on your real estate investment portfolio, when you pay the house insurance, the car insurance, all of those transactions presently for your listeners involve a permanent transfer of money away from them. You can’t spend that money again. You can’t earn interest on that money again. It’s permanently transferred away from you. The process of becoming your own banker. Is reversing the flow of that, so the money comes back to you, and you get to redeploy it and you get to multiply it. And we even had a single client contact me in the last 12 years to tell me that they were upset that their cash values in their contracts kept rising every day, not one
Rob Break [00:43:17] in that day. Still, a few more shocking.
Sandy Mackay [00:43:20] Yeah, so I can they wouldn’t be upset.
Jayson Lowe [00:43:23] And this isn’t anything new, guys. The tool the tool has been in existence in Canada since 1847. So the tool itself is nothing new. What Nelson did such a great job of in his book Becoming Your Own Banker is he described how to implement a process and that this particular tool was the best tool for the job. But you need a coach to teach you how to use the tool.
Sandy Mackay [00:43:46] You mentioned personal and corporate, can you just maybe briefly, can you go over what would be the reason someone would do one versus the other? I don’t top tax implications. Maybe I’m sure there’s a whole bunch of stuff, but maybe.
Jayson Lowe [00:43:58] Oh, yeah, yeah.
Sandy Mackay [00:44:00] Actually, go for that a little bit.
Jayson Lowe [00:44:01] Thank you for asking that. You know, and just of course, disclaimer, I am not a chartered accountant. I’m not providing any tax advice or anything. Please consult with your own CPA. But one of the things that we work with our clients on a daily basis, we have a gentleman named Frank about. He’s a chartered accountant. He’s a trust in estate planner. He works in the financial industry. And he works with advisors, including advisors on our team. And one of the things that he does a brilliant job helping us to explain is that in twenty eighteen, there were changes to the federal budget that created some anxiety for people who own professional service corporations, for people who own operating companies, people who maybe have assets inside of a holding company, and people who are worried about the passive investment income rules. And I’ll just say just briefly for your listeners. That, of course, requires an expanded conversation is that the insurance contracts that we’re talking about, they are not captured by the passive investment income rules. All of the daily growth of cash value attracts zero tax. And when the life insurer dies in a corporate situation that gives rise to what’s called a capital dividend account, where the proceeds, along with other assets in the corporation, can come out of the corporation without triggering a taxable event. And so for folks who were listening who are corporate owners, this is a process you definitely want to investigate because it’s not only going to create a much larger asset on your balance sheet, it’s also going to minimize tax. And so for most people who are listening. Those are two things that really are appealing because if you have financial objectives and you need capital to achieve them, if we keep more capital available to you, your business, which creates a big advantage for you when compared to other people in your industry or business that don’t have that advantage. And so thank you for asking. That’s a great question. Part of our consultative process when we’re dealing with a corporate owner is we do engage the services of a gentleman like Frank Barty, who is a chartered accountant by trade. And it’s always good to have one CPA talking to another to make sure that, you know, all those checkboxes are reviewed and talked about.
Rob Break [00:46:28] So are there a few other resources that you can suggest for people who are interested in learning more about this?
Jayson Lowe [00:46:35] Yes. Would it be OK if I shared an irresistible offer with your listening audience? Would that be, OK? Sure. All right. Drum roll, or do you guys have like sound effects or something where we can create a little, a little bit, a little bit of build up?
Rob Break [00:46:51] You’re in for
Jayson Lowe [00:46:55] ice. That’s awesome. So one of the one of the amazing resources that we provide is something that we’ve named the bankers bolt. And so this is it’s a beautiful package of reading material. And there’s also a list of audio resources that we would share with your listeners, very specific podcasts that are geared to the concept that people can go in and binge listen to the bankers vault itself. It retails for one hundred and fifty bucks. And we want to offer that bankers vault to your listeners for ninety-eight dollars, including shipping. So we’ll get it right to their front door. It includes a copy of our Nelson Nash’s book, Becoming Your Own Banker. It also includes a copy of the case for IBC or the case for the infinite banking concept. This is a wonderful book, especially for business owners. It also includes a copy of The End Asset, which was authored by kg of better wealth solutions. The Canadian version of the asset is being released here later this quarter. It also includes an abundance of links to additional reading and audio resources. There’s also a link in there to a documentary film on R Nelson Nash that I commissioned back in September of 2017. It’s a one-hour film that will give you a glimpse into the essence of the gentleman who founded, pioneered, developed this process. And so all of these resources that if a person went to Amazon, for example, and you wanted to purchase these three books, you’re going to pay about one hundred and eighty bucks to get them. And so that alone is an incredible value, and it’s going to completely transform the way that you think about money and the way that you think about the banking function as it relates to you. It’s going to open up your imagination to an abundance of opportunity. And we also include with the bankers vaults, a complimentary discovery session where we will meet with and have, we’re happy to review your real estate portfolio, your program, not for the purposes of advising you on real estate, but for the purposes of advising on how to create even more wealth with what you already have without changing your cash flow, without making you work any harder and without you ever losing control of your money. And so that’s the irresistible offer. We’re going to provide a link to you, gentlemen, to share in the show notes. Let us know when you get in touch with us that you heard this podcast, and we will get that shipped right to your front door and we will get you started on your journey of becoming your own banker.
Rob Break [00:49:35] Oh, that’s fantastic. In that good. I think I’m going to have to take advantage of it as well.
Jayson Lowe [00:49:41] All right, that’s fantastic.
Rob Break [00:49:43] I met with Peter. He did give me the one book, so
Sandy Mackay [00:49:46] I already know that link. Well, that link will put down below, right in the in the show notes. Or if you’re checking it out on our website, it’ll be in the in the notes, on the on the link there on the site.
Rob Break [00:49:56] Awesome. If you’re watching the video, hopefully it popped up somewhere on the screen
Jayson Lowe [00:50:01] and we were chatting before the show about, hey, how can we get this link up on the screen? So hopefully we’re able to get that sorted out.
Rob Break [00:50:07] You can do it. Guys, what’s next for you? What are your plans for the future here?
Jayson Lowe [00:50:13] Go ahead, beer.
Peter Lount [00:50:15] Yeah, I think so. Ascendant is a national company. As Jason talked about, we support Canadians coast to coast. Ascendant is growing. I’m part as a part of that growth. I’m located in the GTA, so we’re going to be running a lot more events in the GTA in the coming months. We’re going to see us out there. I said my passion is really to entrepreneurs and real estate investors, so we’re going to do some very curated events around that. So look for us to have those in the coming months. Specific dates. I’m not sure when this podcast can come out, so we didn’t put that out there, but we’ll have it off our site a financial dossier, slash events or reach out to us and we’ll be sure to get in touch on that. The other way is obviously, you know, we’ve got the content. I think the end of the day is really to invest some of your time however you learn, right? Whether or not it’s an event that you come to, the book is definitely a must. I mean, even if you’re not a reader, it’s not about much reading right to read Nelson’s book, and we all use it as our it’s a theory behind everything. We read it like very regular. It’s something we find we go back to and our brand bases or webinars. Jason’s got some really good content online as well, so that’s a big thing. We’re excited to see everybody out across Canada is said. I’m in GTA, but we are running events throughout the country.
Jayson Lowe [00:51:46] And I’ll just expand on that and just share with listeners, you know, Peter is a real testament to, you know, embarking on this journey. He implemented it in his own personal life before even thinking about sharing it with others. And so for anybody who speaks with and meets with Peter, they’re going to be in really good hands because he practices this process in his own life. And he can speak from a place of authenticity in coaching others. And where we’re going as a standard financial is we’re growing. We’re always looking for wonderful, great people to help us build a great company. We educate the general public through live events, through webinars, though, you know, one on one discovery meetings that we have. So there’s Peter’s, you know, creating these really interesting meet ups with entrepreneurs and established business owners, which is really exciting. And so we’re out there and we’re sharing this message, and we would encourage everyone at minimum. Make sure that you get a hand your hands on a copy of the bankers vaults. We’ll get that shipped to you and have that discovery session. It doesn’t cost you anything other than an investment of your time, and we’ll certainly make it a very valuable use of your time. And the great thing about how we operate is we there’s no solicitation. We’re not trying to compel you or convince you to do anything. There’s no high-pressure sales tactics or any of that nonsense. This is all about educating you first, and once you catch this, you’ll know exactly what to do.
Rob Break [00:53:20] Yeah, I think it sort of sells itself. You don’t really need any of that stuff.
Jayson Lowe [00:53:24] Yeah, like it’s just it’s unnecessary. And, you know, unfortunately, that kind of thing happens out there regardless of what industry you’re in. But for us, we really pride ourselves on clarifying through education first and then once a person’s ready, they understand the problem, which is banking, and they understand the solution, which is taking control of the banking function. And then we coach and help them along in their journey. And we don’t want people to think who are listening. You do not have to be rich to become your own banker. You don’t. We deal with, like I mentioned earlier, we have clients that put in as little as 100 a month. We have clients have put in six figures a month. Everyone’s financial objectives are unique. And so that’s why it’s important to go through that discovery session. That’s a common misconception out there. So you have to be wealthy and rich to do this, and I’m here to tell you that is not the case. If you want to take control of this banking function, we can help you understand how it can be an advantage for you individually.
Rob Break [00:54:22] Now it says you guys are going to be launching a podcast, you want to tell us about that.
Jayson Lowe [00:54:26] Absolutely. Yeah. So the podcast is Wealth Without Bay Street and we’re launching that. I think our first episode is going to break onto the airwaves here in two weeks’ time. So we’re super excited. We’ve got, I think, six prerecorded episodes. So the moment that wealth without being street launches, you’ll have a catalog of episodes to go through, which we hope you’ll really find interesting. As a token of our gratitude, we’re going to invite the both of you gentlemen to be interviewed on our podcast as well to promote your community and in the value that you’re bringing to so many listeners. But for people who want to check us out and want to get on the list to be notified of the launch, you can check us out at wealth without Bay Street dot com. That’s wealth without Bay Street icon like us on Facebook, whilst with our Bay Street on Facebook, we’ve also got a YouTube channel that’s launching simultaneously with the podcast. And so the whole premise of wealth without Bay Street is to help Canadians create dependable wealth without investment risk, without market risk, without liquidity risk and without tax risk. And so if those things resonate with you, how would you feel if you could eliminate those risks in your life and wealth without being straight is going to be a great resource for you to get some further education?
Sandy Mackay [00:55:52] I’m trying to find someone who that doesn’t resonate with in my mind, I’m thinking or someone that this isn’t for because, well, you almost for everyone, really. Is there anyone that’s like, this is not for no.?
Jayson Lowe [00:56:03] And I’ll share with you. Pardon me. Let me correct myself. This would not be for someone who suffers from a very debilitating condition called the arrival syndrome. Now this is a person who thinks they’ve learned everything there is to learn that they know everything there is to know, and they can’t be taught anything new. That would not be a process that would be suitable for that person because that person has lost the inspiration to learn something new. And so if you understand that there’s no such thing as having arrived in knowledge that there’s always something new to learn, then we would encourage you to pursue your journey with this process. But if not, as long as you leave this podcast, happy, that’s OK, too.
Rob Break [00:56:51] You know what? I would agree with you too, because there’s plenty of people that I talk to investors in that kind of thing where they don’t even understand the concept of refinancing their house and pulling the equity out to go forward and use it again, right? Right. So there is definitely going to be people that just don’t want to bother learning this kind of thing, and I can understand why that wouldn’t be for them.
Jayson Lowe [00:57:11] One. Yeah, we would wish those people all the best. You know, it’s this is just it’s a tool. It’s a process that creates advantage for you, whether it’s in your household or your business. And if that resonates with you, great. If it doesn’t, that’s OK, too. Nobody is going to try to convince you that this is something that you should be doing.
Sandy Mackay [00:57:33] One more thing is coming, coming to mind. And now before we get to wrapping up. But what is what about health issues or something as a health that you know, we’re all going off to an insurance policy or life insurance? I’m assuming that you have to do some sort of a testing and stuff to make sure you’re healthy. Is there any issues around that?
Jayson Lowe [00:57:49] I know that’s one of the most frequently asked questions. What if I don’t qualify? What if I don’t qualify medically for the insurance, right? The good news is, is that you don’t have to be the life that is insured if you don’t qualify medically so you can own a policy on someone that you have a beneficial interest in. Whether it’s a parent’s, a joint venture real estate partner, a spouse, a child, a grandchild, a niece and nephew, a sibling. So there are so many different options available in terms of who the life insured is going to be. But the policy owner controls everything. The policy owner controls access to policy loans. The policy owner controls the named beneficiaries of the death benefit. The policy owner controls every element of that contract. And so even if you’re for some reason, not medically life insurable, if you have a beneficial interest in someone who is, then you can be the policy owner and that other person can be the life that is insured.
Sandy Mackay [00:58:45] And one more spin off that. I assume that a lot of people will do this, but open up policies with their kids, like on their kids as they’re as young, oh yeah, B basically. And then I mean, how cool would that be when they’re getting towards right away? But once they’re 18, 20, 25 and they have a long as they can be massive by that point, right?
Jayson Lowe [00:59:06] Well, you know, I’ll tell you. So my wife, Rebecca, and I have to give kudos to my wife, Rebecca. She’s phenomenal because we have four children under the age of 12, and each one of our four children have five policies on their lives already. And so their financial experience through their lifetime is going to involve no loans. I say that again. No loans whatsoever from any outside lending institution. All of the financing function will be controlled within the family. So their journey financially throughout their lifetime is going to be far different than mine was or all of us on this podcast today. And so if you’re listening and you have children, this is a process that you absolutely want to put into place for your children because you’re creating intergenerational wealth, you’re creating good stewardship of money and you’re eliminating the divisiveness that’s been created out there. We’ve all been taught hate. When you grow up, you’re going to move out, you’re going to start your own family, you’re going to have your own bills, you’re going to understand what it’s all about when you have your own family. We don’t talk that way. I let my family know I want all the loans in the family. I want the money coming back. That’s what the wealthy do. They circle the wagons. They have they keep the money in the family. You can do this too, and you don’t have to be wealthy to do it.
Sandy Mackay [01:00:34] Isn’t that good? It’s amazing.
Rob Break [01:00:37] Isn’t necessarily going to be tons of people that want to learn more about this. I want to learn more about you. How can people what’s the best way for people to get in touch with you guys?
Jayson Lowe [01:00:46] Get the Volt? Step one Get that volt. It’ll be the best 98 bucks you’ve ever spent. And if you get the Volt and you disagree with me, send it back and I’ll return the money. Get that vault in your hands. Read Nelson Nash’s book First Becoming Your Own Banker. Step two Get on the horn. All the instructions will be inside the vault. Get on the horn. Create your discovery call. It’s one of the best hours that you’ll spend in a lifetime. I guarantee it. And then if we establish a basis to work together, we describe to you what those next steps are based on your own unique financial objectives that we uncover in that discovery call. And all that it requires is for you to take action because there’s the cost of inaction as well. And it’s called lost opportunity. So many people are going to look back on their lives, and they’re not going to regret the things that they did. They’re going to regret the opportunities. They didn’t even take the time to investigate. And so get your hands on the vault, and that will be your first step forward in this journey.
Rob Break [01:01:52] Agreed, agreed. OK. Yes. So the best way to get that vault is go to the link in our show notes and you’ll be sent right there and set up with that discount. So that’s how people should get in touch with you. I guess that’s the best way. Thanks, guys. Appreciate you guys coming on and sharing all this stuff. I’ve heard of this concept for the last couple of years. I guess I’ve been hiding under a rock, I don’t know, but it’s been around for a long time, apparently. But I guess it’s just sort of come to the forefront of the real estate investing world that that I live in anyways.
Sandy Mackay [01:02:29] I feel like I feel like a lot of the misconception. The big one there is that you have to have a lot of money to get involved in this. I think that’s a I’ve heard that and it’s a that’s probably a big one out there, I’m guessing. So that’s great to know that you may not need a lot of money you 100 bucks a month is doable for a lot of people.
Jayson Lowe [01:02:45] Yeah. All day long.
Rob Break [01:02:47] And I think that everyone needs to have life insurance anyways. Like, Yeah,
Jayson Lowe [01:02:51] oh, thank you. Thank you, Rob, for sharing that. That’s so true. And we’ve had to deliver, sadly, a number of death benefits to families, and not one of those families had said when they when they got the money and they didn’t have to share any of it with revenue Canada, it was all income tax free. Not one of those families said, hey, you know, I wish the check was for less and. And so we take that duty of care very seriously. And that’s another element of what we educate our prospective clients on is just how we handle a catastrophe like that and how we’re there for the family and how we’re there to help people to take the time to grieve as they should, and to understand that they’ll never have another bad financial day in their lifetime.
Rob Break [01:03:42] All right, well, that’s great. So look for the wealthier Bay Street podcast and the. And go on Facebook and check that out. Thanks, guys. Appreciate you being here. Thanks. Good to be with you. Hopefully, we’ll have you back again and we’ll talk about it once more.
Jayson Lowe [01:03:56] We can’t wait to have you on well without Bay Street, so you can share some great value with our listeners as well.
Rob Break [01:04:02] Awesome. Good stuff. Thanks, guys. Have a good day.
Peter Lount [01:04:05] Thanks, guys. Now.