How to Become Your Own Bank?


hey what’s going on everyone in this
video we’re gonna show you guys how to become your own bank paying your self
interest whether you’re looking to pay off your debt or getting into real
estate investing hey what’s going on this is Sam Kwak and we have a special
guest mr. Steve Ross all the way from Utah and he’s gonna share some awesome
information about how to become your own bank
creating your self interest paying yourself interest not to the banks
whether it’s through to pay off your mortgage or to get into real estate
investing but before we dive in be sure to go and hit the like button on this
video it does help us a lot with our YouTube algorithm and gets this video
out to as many people as possible the opinions expressed in this video are my
opinion and not don’t necessarily reflect the opinion of any one
particular insurance company or my company in particular each situation is
going to be different each individual situation and what they’re trying to
accomplish and each strategy that might be proposed is either applicable or not
applicable depending on on the circumstance and so the ideas and things
are there isn’t necessarily one right or wrong answer and an option it’s the but
the right one for you is the one that applies best for your situation and
that’s where we’re gonna focus and so as you reach out and if you were to work
with me that’s where we that’s the direction we would go I’ve known Steve
for about a year now right close to it and I mean I’ve been working with Steve
also turning my life insurance to a bank and honestly before I got started I
didn’t know what this whole concept was so Steve go and tell us about your
background where you’re from and you know what you’ve been up to
yeah so I actually been in the in the financial industry for about 18 years
I’ve experienced it all I’ve seen it all and this banking concept is really
really something that’s that most people don’t know about they don’t even really
think that raw life insurance could be used this way it’s pretty cool when
people when people hear about it their mind just kind of gets blown and they’re
opened up to a whole new world of possibility of how money works and what
type of interest they can get sure so it’s you know because what I’m gonna I
can show you here little bit of the kind of the history of
of this and and the question I always ask is you know if you could make money
like the banks you know but would you want to know about that right and that’s
what this concept is yeah make money like the banks do right so just giving
people I guess the 30,000 feet overview so what can someone expect using this
strategy or this concept if you will the main thing I guess is really that you
can if there was a way to be able to use the same dollar twice or multiple times
or make interest on the same dollar twice or some people call it double dip
hmm right that’s what we’re really able to do and I can show you that real quick
yeah of kind of what we’re talking about when we talk about this double dip on
interest yeah and but that’s really what you can expect or why it’s a valuable
tool to use right and in wealth building process and then there’s a real estate
application which is what this channel is all about
right right you know is – a real estate application that you can use for this to
be able to help fund your projects or get different things and and and whatnot
so right yeah so if you’re watching this and you’re a real estate investor and
you’re thinking well how do I create how do I create a sustainable way to fund my
projects in the future as in how do you become your own bank so that you are
self funding your your projects you know whether it be a fix and flip or be
rental property right buy-and-hold how do you do it in a way that you’re paying
yourself interest because right now if you’re borrowing money from a bank 30
your conventional or you’re going down the street and getting a hard money loan
for a flip your your ought to ultimately paying someone else the interest to
borrow that money so we’re going over what Steve’s going to show you guys is a
way to turn your yourself into banks so you’re paying yourself to Bank and
ultimately you’re you’re making yourself rich essentially it’s what what the
bottom line here so yes Steve tell us more about this yeah yeah so you know
this is just a concept an idea and it like said the 30,000 foot right you know
type of a thing but but here’s the idea here is that if you if you put your
money in when you deposit money into the bank right it really builds kind of
there it becomes their money let’s say you
have this local bank here let’s just throw out a number let’s say they have a
hundred million dollars sure okay instead of lending out that hundred
million in the way of mortgages car loans credit cards things like that what
typically happens is they actually go to the Federal Reserve right and they say
hey can I use my money to back up a loan from you guys and they say sure and and
the Federal Reserve just sends them over the money yeah so now even though you
know this is typically called fractional banking and there’s more details to it
but let’s just say they have now have two hundred million 100 million they
borrowed hundred million you have on reserve well they still don’t lend out
their money because they need it in case you and I go to the bank say hey we want
you know we want to take money out of our account so they have to keep their
reserves so what they start lending is this money that they’ve borrowed okay
and as a result they that’s why when we borrow from the bank you get money with
interest but you get a structured payment plan that you have to qualify
for and all this kind of stuff because they need to make sure that you can make
your payment so they can make theirs right but most people would agree that
this is a very lucrative way to make money for sure right right yeah that
banks don’t have a problem making quite a bit of money doing this oh okay yeah
so then the question becomes you know are there companies willing to lend us
money like the Federal Reserve does with the banks and the answer is yes
insurance companies are willing to do that okay and so the idea here is that
you’re able to put money into your own accounts start building up your own
reserves right as you build up your own reserves then you have kind of your you
have the insurance company your account let’s say you want to make a purchase or
let’s call this book these books of student loans right so you want to pay
off a student loan so if this is a normal bank account you could the and
you wanted to pay off this loan you’d have to drain the money out of the
account and pay off the loan so you no longer have the loan but you’re no
longer money in your account right which is pretty straightforward that’s just
how it works yeah but what if you could keep the money in the account and still
pay off the student loans right that’s that’s the the question right all right
well just like the bank says hey Federal Reserve you could say hey insurance
company can I use my money to back up a loan from you guys and they say sure and
they send you the money out of their own pocket you pay off
student loan while a hundred percent of your money stays in the account
continuing to grow compounded generate interest right right the gotcha is
similar to like if you were to put a mortgage on your account right whatever
they gave you here is now unspent obihiro key to the principal is that
there’s a hundred percent of the money’s still there still growing in compounding
generating interest so so let me back it up so I just wanna make sure everyone
understands the insurance companies pays whatever right item okay let’s say real
estate project or in this case student loan well technically they’re paying you
but the money is generated from them sure the source of source of money is
coming from the insurance company of all tomates paying whatever yeah for a lot
of artists listeners it could be a mortgage or it could be you know
whatever the case might be so essentially that money that you have
let’s say a fifty thousand dollars right that essentially it becomes
quote-unquote on spendable cuz obviously something has to back back whatever you
just did there yeah but ultimately that money is generating interest yeah is
that right yes let’s use the homeowner mortgage as an example right so so you
know if you had and there’s probably none of this around here but you know
let’s say you had a hundred thousand dollars or your home was worth a hundred
thousand there’s plenty of those here so yeah if there’s a hundred thousand
dollar home but you have a fifty thousand dollar mortgage on it right
obviously if you’re gonna sell that house you’re not gonna get a check for a
hundred thousand dollars you’re gonna get a check for fifty same thing here
right I think if you had a hundred thousand your account but you had a
fifty thousand dollar loan right and you cash it out right you they’re only gonna
give you fifty but the difference is that the full hundred thousand is in
there growing on compounding generating interest even though you don’t have
access to the full hundred right similar to a home your the value of your home
has nothing to do with your mortgage no definitely not right so it’s the same
thing here you’re kind of you know in a sense putting a mortgage on your on your
account yeah and but but the value of it grows independent of what the mortgages
right so essentially what you’ve done is you know if you have for example your
fifty thousand dollar student loan you pretty much just replace that with your
own money but it’s growing you’re paying yourself interest and it
way and so I’m guessing and I’m gonna do a little bit of a mind reading here I
know a lot about are people gonna ask so when do we get to access that money is
it when we pay back ourselves to 50,000 or is there is there time limit as to
when we can unlock that money or think of it like a home equity loan right
right so so as long as there’s equity in if you have a mortgage in a home right
as think of it in that sense as long as you have equity in your in your account
or in your home you have access right right and so so in the case of a hundred
thousand dollar home fifty thousand you still have access to
fifty thousand all right if you wanted to pay down that fifty thousand dollar
loan that would just give you what more equity right you have more access to
money sure I don’t know if that totally untrue your question so essentially the
fifty thousand dollars that is now in the hostage of the insurance company I
mean I don’t want to call it hostage but I mean you know it’s unstable but it’s
generating money it’s doing work that’s important because it’s not eroding away
and in 0.25% interest right nothing like that and that’s something that I think
Steve’s gonna talk about next is interest rate but just kind of
clarifying for a lot of our listeners because I’m also a user of the strategy
I’m not here to promote this and not use it but essentially $50,000 cash that’s
sitting your insurance company it’s kind of like the equity that you’re alluding
to you were able to borrow that $50,000 from the quote unquote equity to pay off
some of the other things the only difference is you’re not paying the bank
the interest you’re paying you you know yours truly the the interest that
obviously making money from the main thing is here is that borrowing from an
insurance company is different than a bank right when we say the word loan we
automatically jump to you know sometimes sometimes we jump to Oh debt is bad and
this is not a good thing right so why would I ever do this this is you know I
don’t want that I don’t want to have loans well this isn’t alone in the
traditional sense of that as soon as you take it you have to start making
payments borrowing from the insurance company is different in the fact that
they still give you money with interest but you have this unstructured payment
plan yeah you have to qualify for that you don’t have to qualify
for there’s no credit it’s nothing to do with anything like that right and as
long and and in fact there’s no required monthly payment as long as there’s
quote/unquote equity in your account there’s no actual required payment
that’s up to you voluntarily paying that back if you want to if you don’t
technically if you do it the right way in structure I fund it and do all the
things that we teach it could pay itself back automatically when you pass away
right so I’m getting creative here I’m gonna speak in the the more of the real
estate side of things cuz I know a lot of you guys want to get into roasting
investing whether it’s fixed and flip so if I have that’s a large amount of money
and and I I’ll get to the creative side next but this this might be a longer
conversation but let’s say I have a hundred thousand dollars and I know a
lot of you guys don’t have a hundred thousand dollars but let me get to the
part where you will have a hundred thousand dollars in just a sec a hundred
thousand dollars I have I put it in the insurance company it’s growing interest
in a set amount and I can go and take that money out and let’s say I buy a
fixed and foot project you mean to tell me and and people watching there’s no
monthly payment where that’s due that’s one of the huge real estate applications
like that if you go and buy a flip and you say you need twenty thousand to
rehab it right and you and you go to a hard money lender to borrow that yeah
right thirty or or a bank or any blending right in thirty days you’re
gonna need to bank a payment on that loan and that’s one of the reasons why
profitability and the flip is you have to do it fast right because you could
you are losing money because you’re making payments to to some lender well
because there’s no required payment if you took the loan from your policy now
then that that project could go six months and you haven’t have to make any
pain right you know so you don’t you don’t dip into your profitability yeah
because you have to make these payments to some lender right so here’s the
creative part and you can shoot me down cuz I by the way none of this is
rehearsed folks yeah so let’s say you guys went and watched our some of our
videos on how to raise capital and let’s say for example I go him and I I create
a relationship with Joe snow my Jewish male and Jewish male was me likes me
wants to do business with and ultimately he lends me $100,000 for
example can I take that hundred thousand dollars on a promissory note let’s say
give them six percent whatever 12 months promise train or six months Prime
Minister or no can I take that and do this life insurance and then fund my
project so that I’m not on anything but my life insurance company is ultimately
paying the interest for my partner can I do that yes and no yeah right and I’m
asking this because you have 18 years of you know your finances and so that’s a
great question and and the reason why it’s yes or no is because because the
the insurance companies and things they don’t want you to be borrowing any money
to fund these pause ah right gotcha that’s a that’s kind of a
no-no per se sure with the caveat that’s saying that you know could you do it
yeah you don’t mean like I’m not saying as a I would never advise someone to do
that sure but but it’s but if someone wanted to do that yeah not like they
couldn’t is what I’m saying like sure I can’t I’m not good I would that’s not my
advice right oh so I mean you have a fiduciary duty not say that but I’m just
think as a creative person right and just thinking ahead because most of us
don’t have hundred thousand dollars laying around you know that’s the the
reality of a lot of us especially for those you know you guys are getting
started so I’m just thinking wait so if I can get Joe’s hundred thousand dollars
to be invested in my company for example I have you know the best LLC whatever
and do a promissory note take that hundred thousand dollars and fund the
the life insurance and ultimately obviously the life you know is paying
out and your interest on that so can I hit a par where you know what
the life insurance is paying me is also me gonna pay for Joe’s put interest if
you were if you were to do that yeah yeah there is that potential okay
that way the money I borrowed is essentially this is her percent interest
you know there’s an implicit net there’s no structure payments yeah I mean
there’s obviously more details to that whole kind of idea
but in concept in theory yes that’s possible it’s possible okay there yeah I
mean right by the way a real quick be sure to so licensed attorneys right
yeah yeah so a license people because these are our opinions of my company or
the insurance company right yeah I want to get that out of the way we’re just
you know in concept and theory and ideas these you know these things are possible
right right absolutely whether or not it’s right for you or that you that
we’re actually promoting that and saying we should do that or should do that
that’s not what we’re saying we’re just saying right what what might be possible
in every video we have we want to make sure that you guys obviously apply each
of these strategy in the right context right if it’s time to hammer a nail on
the wall we’re not gonna bring a screwdriver right you’re gonna want to
use a hammer so make sure you guys consult with your financial
professionals you guys consult with your attorneys your even your accountant
because there’s a lot of tax ramifications to this as well yeah but
you know what let’s let’s transition into that what are some of the tax
ramifications of using this if there are any yeah you said I’m not attacked
advise not a tax advisor but in the sense in the sense of knowing some tax
right of guidance there in the in the sense is that because anything that
you’re using we use the language of take money out yeah but we’re not really
taking the money out right we’re loaning against sure and so as a result the only
time that there’s really a tax on an investment per se is when you take money
out and get and receive a gain ah right so so whether that’s like a stock or
mutual fund or if you’re a 401 K or a real estate you know you’ve made some
profit on real estate you actually bring that money to you into your you know
personal thing and you make money so there’s a tax right right well if you’re
taking a loan against an account and you’re not actually ever taking money
out right there’s no game there’s no gain T so there’s no tax yep right so
this will also be phenomenal for individuals obviously high net worth you
know for those who are obviously a small percentage of you guys watching this may
have millions of dollars and you guys need to figure out what you need to do
obviously again talk to your tax professionals but you know from from
what I understand this would be a great tax you know way to avoid tax not not of
hate but avoid taxes right it can be a shelter yeah for sure
you know a lot of people utilize in life insurance as an estate planning tool to
chara state tax issues and things like that so it can be a great great vehicle
yeah and obviously we also have to point out the obvious that because it is a
life insurance even in events let’s say someone dies you the person who’s got
the the insurance policy get it I’m guessing there’s death benefits right
absolutely which is the the perk that we don’t really talk about even though
that’s the whole rights all purpose it really is a first
first of all life insurance policy with but what we we’re focusing on the
savings side of it the then the potential it has there because so unique
and different but at the end of the day it is first a life insurance me out over
lunch you talked about borrowing so instead of vaping your end goal what
happens if you borrow against the life insurance companies or you’re
essentially your money cuz it’s it’s being held in the insurances company but
you borrow that money what if you put that back in the equity sort of speak
yeah well what happens that that then you have the potential to do that that’s
all yeah you know once again that’s one of the things that that you’re in can
typically advise that why is that okay but but at the same time that is a you I
mean it’s not it’s not unrealistic surely you could do that right all right
so the idea behind that obviously is taking money out and then hopefully I
hope I’m not like over over stepping in any of your financial duty or your
fiduciary duties by by mentioning all this yeah and then and I it’s obviously
coming about coming out of my mouth right now yeah but again I mean have a
heavy emphasis on and make sure that you guys talk to fresh anoles
for doing this but I have I have seen people use this concept where they
borrow against their life insurance yeah it’s called cash value right yeah cash
value and they stick it back into the the equity they’re borrowing again thus
doubling what they have essentially yeah and then what that ends up being is
that the interest is basically applying to what they have been able to double
essentially which is a pretty cool concept so what are some applications to
to real estate I mean obviously you can’t share the details of some of the
people that you you better help but what are some of the common applications in
real estate for this the great thing about these types of plans is that
they’re super flexible hmm the bad thing about these plans are super flexible
okay you know how meaning that there really is no real right or wrong or one
way that has to be done or another and so a lot of times a lot of times people
especially many viewers here they’re just learning they’re saying hey just
tell me how to do it and sometimes there isn’t really this one way that has to be
done right which can be a pro and con at the same time right so sure so as far as
the real estate goes the you know the idea that you can it’s a cheaper way to
borrow money mm-hmm you know and with more flexibility so if you if you have a
and I mean I have I have clients who put money in this place borrowed against it
put against it in another place another policy and borrow put in another policy
ow and they basically thought they
basically funded multiple policies mm you know and you know I didn’t advise
them to do that but that’s what they decided to do right and it’s working you
know yeah and it all comes down to your education right your ability to
understand these tools and how to move the right pieces in a legal and ethical
way so that’s a huge emphasis all the time we make here in the quad for this
channel is get educated right learn what these tools can do cannot do you know as
Steve mentioned the word flexibility but that comes with the responsibility of
making sure that you don’t you know overstep
you know some of the boundaries that are set so yeah I mean this is a cool cost
did you have anything else that you would like to show us or well just
expound on the real estate thing so yeah you know the fix and flip thing gives
you a huge opportunity the other thing too is it can be a source of liquid cash
that is that you may not necessarily use but because it’s it’s accessible at any
time kind of a thing for the most part you can build it build up a policy
instead of filling up like a policy sitting in the bank getting no interest
you know as you’re kind of your liquid reserve you can build a liquid reserve
here and at any time you utilize it but but instead in that
but the big difference is at the bank you have you have a half a million
sitting in reserves and you take 200,000 well now you only have 300,000 in your
account right here you do you utilize it you still have the half a million
growing compounding generating interest yeah while you’ve used the 200,000 right
right and so it can be so you can use it actively for a real estate deals or to
pay off debts or did purchase make purchases and do all those kinds of
things or it can just be build up you know an account that’s going to get way
better interest than the bank right and accessible unlike say your traditional
retirement plans like IRAs and 401ks and and those types of things which have the
aid stipulations and penalties so yeah you know there’s lots of different
applications yeah how is it this is probably the question that you guys are
probably begging right now is so what is what is a I mean obviously I I don’t I’m
not gonna ask you I’m not gonna ask you to quote but what is the what is a
typical return or the percentage of interest you would get on a on them
because obviously it’s not worth doing it if it’s like 1% right it really
depends there’s different types of policies right so it depends on the
policy there’s and so you but you know some are fixed returns and you’re gonna
get three to six percent right that’s more of like a fixed return then there’s
others that have more that that kind of followed follow market the market a
little bit and you have even though there’s some guarantees you can still
get the upside and and you might you might get depending on that particular
thing that you’re following you know you’re gonna get more more of a market
based type mentoring right yeah and so it really just depends
on the type of policy yeah but for sure but for sure no matter what one you do
you know worst case is like three or four percent which is like three times
as much as the bank Nick right yeah that’s the time I check I check some of
the money market accounts that I have and the reason why I have it is for my
security deposits from attendance I have to Illinois law I think it’s law from
four for a lot of the different states but I
have to put them in a separate money market account but they only produce
point one to five percent right yeah or something like that so but obviously
people watching this might be well what is really what are they really pain
though you know that would substantiate obviously doing this and something else
so yeah that’s always a question how I would see for sure no matter what way
you do it no matter what Paul she dude yeah you’re gonna get significantly
better than definitely the money sitting in the bank sure absolutely
yeah so guys just giving a little preview of what’s possible obviously we
can go into a rabbit hole of man this information after information so if ya
if you guys want more information for sure
can we put your content information down below is that yeah that okay Pam
absolutely yeah okay so below is going to be the contact information for Steve
if you want to work with them or if you just contacted for general enquiries
yeah well the reality is is is we’re not being super specific and so yeah the
right advice for you is gonna be based off of you in your situation right so so
reaching out and and us having a conversation it’s not going to cost you
anything or whatever we can sit down and and these kind of these ideas that Sam’s
thrown out there they may or may not work for you but we but through my
experience and whatever we can we can narrow down what it is you’re trying to
accomplish and get you where you want to go right and you know type of a thing
that’s gonna be a case-by-case so for sure yeah feel free to text me that’s
probably the easiest way to reach sure you know email I get my emails but I
respond to texts a lot fast for sure else you know down below there’s give me
information on Steve’s information and how I can contact them and just even
have a conversation you know it doesn’t necessarily mean that you have to work
with Steve or you’re obligated to and also another note be sure to click like
on this video as well as subscribe to your channel if you found this to be
helpful and it does help us a lot with our YouTube algorithm again and again
stay yeah stay tuned for our next video coming up about the finances real estate
and lots of different things guys thank you so much for watching and
we’ll see you guys in the next video

17 thoughts on “How to Become Your Own Bank?

  1. Your tips and strategies have helped out my business and my YouTube Channel. Anyone else have more advice out there ? Thanks in advance ๐Ÿ™
    ๐Ÿ‘๐Ÿ™๐Ÿ’ฏ๐Ÿ˜ƒ๐Ÿ‘ฆ๐Ÿป๐Ÿ’ฐ๐Ÿ’ฐ๐Ÿ’ฐโœ…โœ…๐Ÿ•บ๐Ÿป๐Ÿ•บ๐Ÿป๐Ÿ’ช๐Ÿ’ช๐Ÿ™๐Ÿ™๐Ÿ™๐Ÿ’ฐ๐Ÿ’ฐโœ…โœ…โœ…๐Ÿ‘๐Ÿ‘๐Ÿ‘

  2. How do you see yourself using this strategy??? Real estate investing?? Pay off your debt?? Share & Comment down below!

  3. Be careful you need to be aware of the interest they use to illustrate the future paymebts..also be aware of the fees and cost of insurance …some companies are very high๐Ÿ˜‰

  4. So if you tell the insurance company you did not borrow the money to buy the policy and you actually do..that would be insurance fraud…not a good idea!

  5. and when you say borrow your money are you referring to the actual amount of the life policy or the amount one has paid already monthly?

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