[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Low and Seth Hicks, your secret weapon to protect your assets and never have to start over financially again. Vance and Seth help high net worth individuals, families, business owners, and investors, structure and asset protect. Tax free fortress for their families.
[00:00:21] Intro: Learn how to keep what you earn and use the velocity of money to create your own private banking system. Join us on this journey as we explore the secret strategies of the rich and political elite and help you take total control of your financial security now onto the show.
[00:00:47] Eric (Host): Hello and welcome to Private Banking Strategies with Manslow and Seth Hicks. Seth, how are you Doing great, Eric. Glad to be here. Thanks for having us. Thanks for having me, man. This is your podcast. I’m just here for the ride. I love [00:01:00] this. I’m learning a ton. We’re having a good time. And to the listening audience.
[00:01:04] Eric (Host): This is the second part of a two part podcast and I left it kind of on a cliffhanger Vance, we, we left off with number six. We’re doing 10 different things right. And it’s how a specially designed banking life insurance policy is constructed. Right? That’s exactly right. Okay, so it teased that last question.
[00:01:22] Eric (Host): I tease number six, ’cause I knew we wouldn’t have time in the podcast. So number six, is private banking a short-term or long-term strategy? That’s where we left off. That’s the question I’m asking you, Vance.
[00:01:33] Vance Lowe: Okay, and that’s the question we’re gonna ask to the audience out there. Is private banking strategy or the equation of banking put back in your life, is that gonna be a short-term phenomenon or a strategic maneuver, or is that going to a lifelong or a long-term strategy?
[00:01:55] Vance Lowe: Seth, why don’t you tell us a little bit about that? Get get us into that just a little bit. [00:02:00] Would you?
[00:02:00] Seth Hicks Esq.: Sure. Considering that banking is a philosophical way of doing things and a way of capturing the flow of money, the velocity of money, and the power of banking in your own individual family wealth, it’s not a short term.
[00:02:19] Seth Hicks Esq.: Endeavor and it’s not a get rich, uh, quick approach. It is a long-term strategy that requires, uh, discipline and requires one to turn things upside down, so to speak, and forget some things that they’ve learned, unlearn some bad habits, unlearn some bad things they’ve been taught and relearn in a proper way, uh, how to capture the wealth that they’ve been letting get out of their hands.
[00:02:49] Eric (Host): Can I get my 2 cents
[00:02:50] Seth Hicks Esq.: on
[00:02:50] Eric (Host): this? Yeah, go ahead. I honestly, as I’ve learned along with the audience, for as many podcasts as you guys have done, I have really felt that this is a lifestyle. [00:03:00] It’s not even a long-term strategy. This is a lifestyle that you basically adopt for the rest of your life. It changes everything.
[00:03:07] Vance Lowe: It really is Eric, and thanks Seth, for the definition there. What we’re gonna do, hopefully with the audience, is we’re gonna talk about a paradigm shift because once a system gets in our blood and in our brain, it’s not impossible to change and we have to ask for change to rethink. How money flows. So let me give you a great example here.
[00:03:32] Vance Lowe: A lot of people think that, okay, we’re talking about banking, blah, blah, blah. Well, when I put my money in the bank, it’s immediately reaccess here. We’re starting up a new company, a bank, in order for it to get its charter takes a minimum of five years, $15 million. Sudden accounts that are non-interest bearing and legal fees of.
[00:03:58] Vance Lowe: Over a million dollars [00:04:00] today to try to get up a real live banking charter. But it must be worth it because they still do it. So I wanna go over and have everyone rethink how we do this for long-term strategy. It’s just like building a business. And a lot of people don’t know that the statistics and the outline.
[00:04:23] Vance Lowe: Of a business being successful comes from life insurance, from actual life insurance policy history. So lemme give you a good example. The three of us, we find a great opportunity and a great business a. We wanna start. So we do all the research, we do the math, we do everything we want to bring to bear the advertising, everything it’s gonna take, we get to our budget, and let’s say the budget’s gonna take $50,000 to keep our business open for an entire year.
[00:04:56] Vance Lowe: Eric, how long does a, a startup business [00:05:00] normally take to make a profit?
[00:05:02] Eric (Host): I think that the statistics are like three to five years, isn’t it?
[00:05:05] Vance Lowe: Yeah, well the average is five years. It’s anywhere from three to seven.
[00:05:09] Eric (Host): Hmm.
[00:05:09] Vance Lowe: Okay. And did you guys know that that correlates exactly with what the cash value buildup in a policy is?
[00:05:18] Vance Lowe: On an, on a normal, a whole life insurance policy, it’s usually the third to fifth year before money can start becoming available to use. And it’s the same thing in a business. Well, what we present for clients in their own banking strategy, if we could pull 60% back in profits in year one, did we have a pretty good startup here?
[00:05:42] Seth Hicks Esq.: For sure.
[00:05:42] Vance Lowe: Oh yeah. We, we really do. So the banking. Is much more lucrative than the average business. So the timeframe we need to understand we’re not gonna have a hundred percent access to all of our money up front. You wouldn’t in a regular business anyway, [00:06:00] and it would be at least three years to probably five years before you’d even see a penny release that could come back in profit.
[00:06:07] Vance Lowe: So it’s important that we understand how we get into things. Banking will be more lucrative than that.
[00:06:15] Seth Hicks Esq.: So that’s number one. It’s let, let, let me just add one other thing there just to help folks. If I could Vance just for a second. Yeah. ’cause some people, sometimes Eric, they go, I, you know, I put a hundred thousand dollars into my policy the first year.
[00:06:28] Seth Hicks Esq.: Why can’t I use that a hundred thousand dollars? Don’t forget we’re paying for insurance there. There’s an insurance aspect to it, and depending on your health and age and how you’re rated that person who’s insured, if you’re a 20-year-old. Olympic athlete who didn’t take a vaccination, then you will most likely have very high longevity.
[00:06:51] Seth Hicks Esq.: And the actuaries at the life insurance companies know that. So they’re going to charge less of a premium and less of a load [00:07:00] we call it, than someone who’s 65. Barely insurable because they’ve had health challenges. It’s the 65-year-old is statistically going to die sooner than the 20-year-old. So if they both put a hundred thousand dollars in, there will be a little bit different rating in the process of how much money they are able to pay out.
[00:07:24] Seth Hicks Esq.: That is the insurance company upon death. And those things affect the cash value. So that’s, Vance and I are explaining this in a little bit different way. But effectively it far out performs general startups when you can take 60% of that seed capital that you’ve placed in your banking business and take it right back out and put it to work.
[00:07:48] Seth Hicks Esq.: And we’ve used the illustration many times about taking that money right back out and putting it to work in an investment property or buying your. Credit card debt or auto debt, and we’ve got a lot of [00:08:00] resources that people can listen to that drill down on those subjects and explain that concept further.
[00:08:05] Seth Hicks Esq.: But what Vance is accentuating is the fact that you can pull out a lot of your seed capital and put it right back to work. It’s not just lost in your business for five years. Does that make sense?
[00:08:19] Vance Lowe: Absolutely. Oh yeah. Thank you for that clarification. That’s exactly, and that leads us into our next point, which would be number seven on the, uh, chart of 10.
[00:08:32] Vance Lowe: We don’t want to get caught up in the advertisement out there. A lot of people have taken the infinite banking concept and figured out a way to profit off of it. So they use all kind of tactics and investments that may or may not be suitable, and one that we hear out there is our scheme, so to speak.
[00:08:55] Vance Lowe: It’s called the 90 10 rule. And you’re hearing things like, whoa, [00:09:00] if you’re not being able to put 90% of your money into what’s known as a paid up editions writer, which is where we. Single pay life insurance, and it is the reason that we have so much money available to us upfront, and then you are being ripped off.
[00:09:20] Vance Lowe: That’s absolutely untrue. These are people who advertise this and they are policy. Sells shops, so to speak. They sell the contracts and that’s it. There is nothing available to build a foundation and help a client become fluent in this strategy. There’s nothing there. And it reminds me of a story. There’s two stories I want to tell here that will indicate why.
[00:09:50] Vance Lowe: And then Seth, I want you to back this up for me, uh, at a different angle. First of all, we’ve got Mutt and Jeff out there. Okay. They decide they’re [00:10:00] farm boys and uh, they’re young and they decide that they want to go into business. And as I talked to, one of their other friends and friend has a watermelon farm, and they’re able to purchase watermelons for the going price.
[00:10:16] Vance Lowe: And back in the day, they could buy a watermelon for 50 cents. So they bought crates of watermelon and they got, uh, over to where they were going to sell ’em and said, okay, well we gotta figure out a price that we want to charge for these watermelons. And he said, yeah, you know what? We wanna beat everybody else out there.
[00:10:37] Vance Lowe: So. Let’s charge 45 cents per watermelon. And one of ’em who was a little bit brighter said, aren’t we going to lose money on each watermelon? And the guy thought and said, yeah. We’re gonna make it up in volume. It doesn’t make sense, does, it? Doesn’t, it doesn’t quite add up, does it? It doesn’t make sense.
[00:10:59] Vance Lowe: It’s not gonna [00:11:00] work. But because they talk themselves into it, they do it. Now let’s go to reality. This is reality. You go home, your wife, your spouse, has a tremendous headache and she blacks out. You take her to the, uh, doctor and find out that she has. A brain tumor. But the good news is, is that it can be operated on and she should be able to recover 100%.
[00:11:32] Vance Lowe: What brain surgeon are you gonna go get? Are you gonna go get the cheapest out there on the block? Are you going to get the very best brain surgeon out there? Rated the absolute best.
[00:11:43] Eric (Host): I’m the guy that used to sell watermelons. I’m gonna choose somebody else. It’s gotta be a better one out there.
[00:11:50] Vance Lowe: So the moral of what we’re talking about here is you need a policy, and this is why we’re going through all of these steps, is it has to be designed [00:12:00] specifically for you to meet your needs and be able to do all the things for you.
[00:12:05] Vance Lowe: It can’t be a fly by night if you have to have support. They have to be there. So the mix, and we’re teaching people every time we show ’em how to set these things up, we’re educating people how these are built and why, and 90 10 can’t fly. It might be able to do a contract that way at some point, but even over the long term there is, it’s not any better than.
[00:12:37] Vance Lowe: Doing it the right way. It would never, it will never be any better. Maybe the short term, you might have a few dollars more available. Long term you won’t. So we’re talking about schemes, Seth, share a little bit more with us about that and why they need to be cautious.
[00:12:54] Seth Hicks Esq.: Sure. Yeah. You want to be able to have folks that can support the banking theory, the [00:13:00] banking protocol that you’ve structured.
[00:13:02] Seth Hicks Esq.: You want to be able to put these techniques into practice and actually train you how to do it. And most folks out there, even one of the biggest marketers in this space is actually not licensed, but farms the leads out to other. Uh, licensed practitioners in different states and they place policies, and then sometimes these folks will wash up on our shore and say, yeah, they sold us a policy, but no one taught us how to use it.
[00:13:28] Seth Hicks Esq.: You actually need someone that can teach you how to use it. That’s when we’ve developed a learning library. Here’s a selfless plug, Eric, that, that I have no shame in telling our audience about, and our clients are the beneficiaries of what we call the learning library in private banking strategies, and it’s kind.
[00:13:46] Seth Hicks Esq.: Of like a mind dump or a data dump of all of the strategies and things that that Vance has acquired over his career. And likewise what I’ve developed over my career. And we put it into a digital learning platform on [00:14:00] demand so folks can get in and teach themselves. And so we think that’s a critical step and having folks excel with this.
[00:14:07] Seth Hicks Esq.: And some of our best clients are the ones who’ve really taken the time to, to learn these strategies and who’ve showed up and taken advantage of the research. Sources that we’re providing and it excels. We’ve got numerous clients, and I’m thinking of a handful, that they own their real estate outright.
[00:14:24] Seth Hicks Esq.: They’ve got all of their money moving and working for them, and assets that they’re continually making interest on, tax free environment, and they get it. And once it clicks and people begin to operate with this, it’s like it’s contagious. They’re looking for other assets to acquire. Keep their money at work and keep them turning the dollar, just like centralized banks do.
[00:14:47] Seth Hicks Esq.: They’re always looking for good loans because they are able to generate money outta thin air and they generate money on their loans.
[00:14:54] Eric (Host): Let’s confession time, guys. I gotta be honest with you. I feel like I’ve been cheating on you a little bit because. [00:15:00] I, I’m on TikTok. Not me personally. I like to peruse TikTok.
[00:15:04] Eric (Host): I like to look at TikTok. I don’t know if you guys have gotten on there, but there are some folks that are saying this same kind of concept. They’re not saying the same thing as you. They’re saying the same kind of concept. They’re talking if you get a life insurance policy, you can be your own bank. I have gone to two of these folks sites and they have nothing.
[00:15:22] Eric (Host): They give you nothing. They give you just the teaser. Oh, you could be your own bank. You can do this, you can do that, but there’s no resources. I’ve been to your resources. I know what you guys have, but I don’t know if you knew that on TikTok, there are folks saying this same kind of concept without any, without any support structure whatsoever.
[00:15:41] Eric (Host): No educational tools. I mean, you’ve got ’em beat. Hands down. I know that this is why you guys are doing the podcast. You want to educate folks. You want this information to get out, but you’re not a one and done. Type of deal, like these guys on TikTok, I found it interesting because I, I did try to dig a little bit and see what they had to offer.
[00:15:55] Eric (Host): Compare they got nothing, nothing.
[00:15:58] Vance Lowe: We find that we get [00:16:00] reports from our clients all the time and, and the people who are, are looking at us, they’ve been influenced by these other ads and things. Mm-hmm. And every once in a while they fall prey to those. We, they don’t become our clients because they believe what they have and they haven’t had a chance to look at.
[00:16:21] Vance Lowe: Understanding how to operate your own private bank, that’s not easy and it’s, that information is not well known and that takes a little bit of time, Eric, you know that that takes a little time and effort to really start understanding ’cause you have to change the way you think about money.
[00:16:43] Midroll: Do you see yourself in that story? Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like? Are you ready for help? Please call private banking strategies at (817) [00:17:00] 200-4777 or visit us at www.privatebankingstrategies.com.
[00:17:21] Vance Lowe: That brings us right into our eight option here that we want to talk about. The reason I have done this for so long with clients is that no two clients are exactly identical. Each person comes with a different set of circumstances, needs, wants, desires, and the beauty. Of self banking is, it can be entirely created around those personal goals.
[00:17:49] Vance Lowe: It’s not a cookie cutter, it’s not fit. You have to fit this way, you have to do this. Now, there are some things, okay, I’m gonna teach you a, B, C about the [00:18:00] banking, but then you’re free to run it the way you want to. I’m sure you know. I’m gonna turn some time over to Seth here ’cause we’ve got some clients that we’ve actually tailored.
[00:18:10] Vance Lowe: And I think it’s been very successful for him. Share a, a couple of thoughts there, Seth, would you
[00:18:17] Seth Hicks Esq.: Sure? Yeah. We’re talking about capturing the banking equation in your own family wealth, and there are numerous targets no matter where you are in life, Eric, if you’re folks that are overwhelmed with credit card debt and you’ve got no way out, you can’t see a way out.
[00:18:36] Seth Hicks Esq.: We’ve got the chiropractic example, which is a deep dive on a client that came into Vance’s office and they were overwhelmed and the wife was in tears and they were distraught that they felt like they would never get out of debt and they were on the verge of filing for bankruptcy and having to lose certain assets, and Vance showed them how they could use this.
[00:18:58] Seth Hicks Esq.: These principles take the banking [00:19:00] equation back and effectively. Climb outta that hole into the black, and that’s what they did. They started attacking one debt after another with their bank proceeds and all of their extra cash flow. They capitalized their bank, giving them more money in their bank to loan out and purchase the debt, so to speak, paying off a credit card, and then their bank owns that.
[00:19:20] Seth Hicks Esq.: Debt until they had no credit card debt and they had no automobile debt and they had no other third party debt, and they’re able to start advancing their wealth building, acquiring another chiropractic office, and then another chiropractic office and building cash flow all the time when those payments coming back into their bank, just like they’d used a third party bank.
[00:19:40] Seth Hicks Esq.: So that’s someone that was deep in debt. That that accelerated out of that, and we’ve got those podcasts there that folks can listen to for the full story. Then we have other folks that, that, you know, successful attorneys who weren’t in debt and had a lot of cash and were a able to bank these things, acquire additional assets and continue to [00:20:00] expand their wealth building assets.
[00:20:02] Seth Hicks Esq.: All with. Cashflow coming back into their bank there. There’s no matter where you are in this strata, there is the ability to take the banking equation back into your life, operate your own bank, and effectively accelerate your wealth building all in. As we often say, the tax free environment of Internal Revenue Code 77 0 2, there’s financial privacy there.
[00:20:25] Seth Hicks Esq.: There’s asset protection in the right states, and you’ve got just a perfect banking equation for yourself.
[00:20:32] Vance Lowe: Couldn’t uh, said anything better than that. I hope our listeners out there are starting to actually realize we really do know what we’re doing here. We’ve got the experience that we need to help you get a whole different outlook and outcome on money and finances.
[00:20:53] Vance Lowe: Let’s move on to the next one, which is trying to make these contracts 100% [00:21:00] efficient as quickly as possible. This goes back to number seven, the 90 10 people are trying to get upfront money really fast and make this work for ’em well. Our job to begin with is making these contracts, making the premium 100% or going above 100% efficient.
[00:21:20] Vance Lowe: As quickly as possible. So what does that mean? It means that if you put a dollar in, if it’s going to be more than a hundred percent efficient, you should be able to pull out really quickly more than a hundred percent. Correct Eric? As far as I know. Yeah, that sounds good to me. Okay. So we designed these contracts to be able to do that and one of the things that we’ve, uh, said in other podcasts and helping people to understand, if you trusted me.
[00:21:52] Vance Lowe: And I came to you and said, I have an investment that every dollar you put in in year five is going to [00:22:00] grow to a dollar five, a dollar 10, or a dollar 20 or more, guaranteed. How many of those do you want? A lot. So we all say that, well, as many as I can get these contracts that we produce on the average.
[00:22:14] Vance Lowe: Now, it’s not that way in every case, and Seth stated that right up front, depending on health and circumstances. But in year five, we not only. Suggest lowering the premium, but we then go over a hundred percent of what we actually put in as premium, and we change that verbiage from premium to capitalization.
[00:22:40] Vance Lowe: The money we’re putting in to these contracts. Is capitalizing our bank. The more we can get in there, the better off we are. The more contracts we get into in, into their fifth year, the more profitable we’re going to be. So follow that up with me, Seth. You’ve got a few more comments on that. I know. Yeah.
[00:22:59] Seth Hicks Esq.: I mean, there’s no [00:23:00] business on earth that you can put a dollar into and actually get a dollar.
[00:23:06] Seth Hicks Esq.: 10, a dollar 20, a dollar 30 in actual value to be able to put to work. But the act, the life insurance policies that we structure, um, after years four and five, that’s what we call a hundred percent efficient. And you’re actually getting more cash value accredited into your bank, ready to loan. Than what you’re putting in year after year.
[00:23:29] Seth Hicks Esq.: And so that’s what Vance is describing. And effectively, you could have your bank fully capitalize with the every dollar that you’ve put in it, but you could go take 20 or 30, 40% delta on that and put that to work just like it. Were appearing outta thin air. And although we think our strategy is to keep the velocity of money moving and, and.
[00:23:52] Seth Hicks Esq.: Appropriate assets that there’s no other, there’s no other business that I’m aware of, another asset that I’m aware of that [00:24:00] pays you more than you put in in an efficiency standpoint. So that’s something that’s super attractive to me and to most of our clients.
[00:24:10] Vance Lowe: Okay, great. Any comment Eric? No, I’m loving this.
[00:24:16] Vance Lowe: Okay, number 10. Our last item that we want to do, and this actually will introduce a future podcast that we’re going to be doing, is we want to be able, uh, to expand how do we expand our bank once we get going? And the best way for me to explain that is to tell you a little bit of, uh, a story about myself and what I’ve done with this concept over the last 18 years.
[00:24:45] Vance Lowe: I thought at the beginning that, oh, if I design one big contract that I’m just gonna be happy and everything’s gonna be fine. I found out within less than 60 days, that was incorrect. My mentor and [00:25:00] Nelson all told me, no, that’s not, that’s not gonna work. You’re going to need a series of policies and you’ll find out if you don’t believe.
[00:25:11] Vance Lowe: What we’ve written and told you, you’re gonna find out on your own that that’s what you’re going to have to do. Once people set a contract up that total amount. Is etched and granite and you cannot exceed that. We build these contracts so tight that again, and I’m just throwing figures out that people can do anything from $5,000 on up annually, but if we’re doing $50,000, you cannot put $50,000 and 10 cents into a contract in one year.
[00:25:46] Vance Lowe: It will. Put it into a modified endowment and that becomes frustrating when you wanna get soc more money in and you’ve got all these payments coming in, you’ve got this money rotating, you wanna put it back into your bank [00:26:00] and your bank’s full. So this is why we do a series of contracts, and I’m gonna do one little strategy here for everybody, and it’s called laddering.
[00:26:12] Vance Lowe: So I presented this to my kids. Now my kids, of course, they’re smarter than I am, and I presented it kind of wrongly, and they rejected it and it just crushed me because we really found this out to be very successful. So I thought, you know what? I’m gonna skip my kids. I’m gonna go straight to my grandkids.
[00:26:35] Vance Lowe: So I got permission from each of my grandkids. Parents, my kids and spouse, to allow me to put a policy on the grandkids. And the way I did that was I put a policy on the first grandkid and I took the cash value and put a policy on the second grandkid. I took the money [00:27:00] out on third, fourth, fifth, all the way up to 10 grandkids.
[00:27:05] Vance Lowe: Now, unless you have a strategy, you don’t ladder, but I have a strategy. It was called a windfall. I knew that I would be selling property. I knew that a large sums of money would be coming in, and so we borrowed the money from each policy to pay the premiums, and every so often, even as often as once per year or once every three years, once every five years.
[00:27:31] Vance Lowe: We went a total of of five years and a windfall came in. Now there’s all kinds of room because of loans out on the policies, we were able to maximize those policies out. After five years, that wasn’t enough and we had to start gaining additional policies because as the money flows, you have to have a very safe haven.
[00:27:54] Vance Lowe: To store the money and the policy, and we like to call it a money warehouse [00:28:00] is where we store the money if we can’t go buy debt. And over the first 10 years. I was buying debt, but after 10 years myself, like many of our clients run outta debt to buy, and now we’re coaxing our in-laws, our extended family look, let you know we’re buying all the used car loans.
[00:28:21] Vance Lowe: It won’t change for you at all, but. The money that the banks would make off of you is now gonna be part of the family bank and you get credit for that. So to try to keep our money at work. So laddering is definitely a way to get things in, get things established, especially if the horizon looks like there’s going to be some windfalls coming in.
[00:28:45] Vance Lowe: You want loans out on these policies. Um, people for the life of me. Even some of our clients who are supposedly experienced still feel like, oh, I gotta pay these policy [00:29:00] loans off. And so they’re looking at it the old way. Policy loans. Are assets working for you if you’ve bought debt with that money.
[00:29:08] Vance Lowe: ’cause you’ve got monthly payments coming in off of it. And the outstanding balance on your loans is the remaining money you still have out at work. So as long as there’s a gap, there’s money, all that money can be moving back into the policy if we’re not buying more debt. But the second the loans are paid off.
[00:29:33] Vance Lowe: No more money can be put into that contract until the anniversary date. So I hope that explains the laddering a little bit. Seth, did you wanna follow that up? Did you have a thought on that?
[00:29:45] Seth Hicks Esq.: Sure. Another great use of the laddering, as with folks who are business owners. Real estate investors, entrepreneurs who are starting building up companies, selling companies or selling their interest in [00:30:00] companies and need a place to put asset protected money so that windfall income.
[00:30:05] Seth Hicks Esq.: We also have a lot of crypto investors in our clientele, and when they sell crypto, they have these large, uh, gains and need a place to put, uh, that money. And for a lot of the reasons that we’ve. Talked about they’re migrating away from traditional places for that money and putting them into more, uh, asset protected, tax free places.
[00:30:28] Seth Hicks Esq.: But for example, Eric, we’ve talked about the real estate example. If you’ve got a. A real estate investor who has a hundred thousand dollars in cash value, and we’re just gonna say that you can buy a hundred thousand dollars investment property and they put that a hundred thousand dollars to work and they have a $2,000 rental income per month.
[00:30:49] Seth Hicks Esq.: They’ve made $24,000 in the year, and they can pay their bank back off when they sell that property. And especially if it’s appreciated, they need a place to dump that policy. That’s why they’re, [00:31:00] they’re buying additional policies and laddering them. On top of one another for the same reason. And let’s take that same example.
[00:31:07] Seth Hicks Esq.: Say that a hundred thousand dollars initial bank capital was spread across five properties and 80 20 leverage, meaning 80% was financed by Bank of America, 20% down payment was made with your own private bank. So you’ve got two loans, one to your private bank and one to Bank of America. But now, instead of having $2,000 a month.
[00:31:29] Seth Hicks Esq.: You’ve got five properties each with $2,000 a month in income. So you’ve got $10,000 a month in gross cash flow and you can very quickly see the math adding up there. It only takes a very short period of time before you can you, you can pay off that $80,000 mortgage on the first property that you bought.
[00:31:50] Seth Hicks Esq.: ’cause you’ve got. 10,000 a month coming in, that’s 120,000 in gross income in the first year. And we’re leaving out all of the PITI expenses [00:32:00] just for simplicity’s sake. But you can effectively, we think that you can take that first mortgage out in three years or less, and then you go to the second property in the fourth property, in the fifth property and the sixth property.
[00:32:11] Seth Hicks Esq.: And when you sell that first property, when it appreciated in a market like Austin or LA and doubled or tripled in value. Where your a hundred thousand is now 300,000, where do you dump that income? One place that you could put it is in your private bank, and you need to have the space in there with additional policies to be able to do that.
[00:32:32] Seth Hicks Esq.: So that’s, uh, giving an example of how that might work for folks. Does that make sense? Yeah, it does. Absolutely. And that’s, I mean, that’s exciting. It is, and it is the power of leverage. It’s the power of capturing all of that cash flow and interest into your own bank. And when, and people do it, it catches so fast, they just think, wow, why have I never known about this?
[00:32:54] Seth Hicks Esq.: Why have I never done this before? And then they’re off to the races and they’ll never be the same. [00:33:00]
[00:33:00] Eric (Host): Yeah, absolutely. Well, we’ve done number 10. That was the last one. Vance, what do we need to close with today?
[00:33:06] Vance Lowe: We now have gone through 10 reasons for having a special banking contract built for you. I encourage everyone that has thought about this or heard about this type of idea.
[00:33:21] Vance Lowe: To listen to these, at least these two podcasts. Before you make your decision on where you’re going with this, find out if these bank quote banking policies really will deliver. It’s just like you said, Eric. A lot of people say. Things, but they have no backup. They, they have no background to be able to deliver what they say.
[00:33:43] Vance Lowe: So that’s why we’ve put this out, is to give you the ammunition, the knowledge, the understanding, so that you can solve some of your own problems.
[00:33:52] Eric (Host): Yeah. And, and along with the podcast here that they’ve listened to. The other thing I just wanna highlight again is the resource library. So Seth, how do [00:34:00] they get to tho those resources to take a look at what you guys have for training and all that?
[00:34:03] Seth Hicks Esq.: The first place to start is at our website, private banking strategies.com. That’s private banking strategies.com. And if you’re a first time visitor, we’re offering you, uh, what we like to call our red pill book, and it’s secrets that banks don’t want you to know that. It can accelerate your wealth. And we like to call it a red pill book because it exposes certain issues that first time visitors may not be aware of.
[00:34:30] Seth Hicks Esq.: Some folks are, and we drill down on some of that stuff. And then from there, Eric, we’ve got a robust quiver of. Podcast that we’ve produced and that we’ve had guests on, and that we’ve been guests on other shows that explore some of these issues. And you can choose by titles and summaries and see where you want to go and look at that.
[00:34:49] Seth Hicks Esq.: We’ve got a very robust email campaign that we send out that we try to educate folks and keep them on top of that. Now, if you’ve done all that and you can schedule a call with Vance and you can take [00:35:00] this for a test run and actually explore how it will work with your specific finances, and once you become a client.
[00:35:07] Seth Hicks Esq.: We open up that learning library to folks and give them the real in-depth hands-on black belt and private banking strategies. But that’s a roadmap that we have laid out for folks and we find that it works really well. Fantastic.
[00:35:21] Eric (Host): Alright gentlemen, well thank you so much for your time today. Again, I always learn stuff, and this is exciting.
[00:35:26] Eric (Host): I enjoy the time we spend together, and I also want to say thank you to the listening audience. Thank you so much for tuning in and listening to the Private Banking Strategies Podcast with Vance Low and Seth X. If you have not subscribed to the podcast yet, please click the subscribe now button below this way.
[00:35:39] Eric (Host): When Vance and Seth come out with a new podcast, it’ll show up directly on your listening device. It makes it really easy to share these podcasts with your friends and family. Again, thank you so much for listening today. For everyone at Private Banking Strategies, this is Eric Johnson reminding you to live your best day.
[00:35:53] Eric (Host): Every day and we’ll see you next time.[00:36:00]
[00:36:02] Midroll: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals? Do you feel stuck? Let us help you get unstuck. Are you ready to take action and get your own private bank? Please call private banking strategies at (817) 200-4777 or visit us. At www.privatebankingstrategies.com.
[00:36:33] Intro: Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become available. The information covered in posted represents the views and opinions of the guests. And does not necessarily represent the views or opinions of private banking strategies.
[00:36:49] Intro: The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor [00:37:00] or other qualified financial service provider with any questions you may have regarding your investment planning.
