Real estate investors , you ’ ve got to think like a banker . A banker looks at loans as assets , not liabilities . As consumers , loans take money out of their pocket . As a banker , loans put money in your pocket . You own the bank with The Money Multiplier . Taking loans against your policy will make you money ! Think about this excerpt from pg . 48 of R . Nelson Nash ’ s “ Becoming Your Own Banker ” book . ( We highly recommend investing in this important book .) This comes from the foundational text book for what we do .
“ It sounds a bit strange to people when I say , “ premiums and income should match .” Let ’ s start with a very basic fact — doesn ’ t all your money go through someone else ’ s bank now ? When you get your paycheck , what do you do with it ? Right ! You deposit it in someone else ’ s bank . Then you write checks against it to buy the things you want in life . While it is in the bank , the banker lends your money to someone else and makes a good living doing it !”
So , let ’ s answer that question that many of our members have after they begin the process of banking . “ I don ’ t have debt , so why should I take a loan ?” Read the quote above again and think about who the players are in the story . YOU get to be the banker .
It ’ s unrealistic to put our whole paycheck or income into our own bank right away , because we must capitalize first . Think about Brent Kesler ’ s education . Brent could not treat chiropractic patients his first year of chiropractic school . He had to spend time and energy to be capitalized first . Once Brent graduated from school ( his full capitalization period ), then he was ready to go to work and reap the full amount of benefits being a doctor could offer .
Once you ’ re banking system is capitalized , then you take loans to buy the things you are going to buy anyway ( food , cars , houses , education , etc ...). When you take a loan , you ’ re actually putting your policy up for collateral and borrowing from the general fund of the insurance company . Therefore , all your money is in your policy growing at the guaranteed interest rate . Your money is able to grow and be safe , while you are using loans to finance any expenses you have ! How cool is this ?
We all have expenses in our lives . Even without consumer debts like school loans , credit cards , or car notes , we have revolving “ debts ” from household utilities , groceries , gifts , and various memberships . When you have cash value and you take loans against your policy to cover even these mundane expenses in your life , you can grow the assets of your policy and you ’ ll have more money to use later .
Frequently Asked :
Will my cash value grow faster if I don ’ t take a loan ? No . Your cash value has a guaranteed growth rate even when you take loans against your policy .
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