[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 protected 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.
[00:00:39] Eric (Host): Hello and welcome to Private Banking Strategies of Advanced Low and Seth Hicks.
[00:00:43] Eric (Host): Gentlemen, how are you today? We’re just fantastic. Doing good, Eric? Yeah, I’m, I’m so excited. This series is amazing. For those that are just joining us, we’ve reformatted the podcast a bit and it’s awesome because Vance is telling the story of real clients, their lives, what’s happened, where they [00:01:00] came from, and where they’re at now using private banking strategies and really.
[00:01:04] Eric (Host): Telling that story, and you’re gonna find yourself in these stories. I, I guarantee it. You’re gonna find yourself in part of these stories, Hey, that was me, or that could have been me, or that’s me right now. And then you’re gonna wanna stick around for the second half of this podcast because Seth is gonna break down some of the stuff that Vance was talking about when it comes to the pillars or strategies that they use in this system.
[00:01:22] Eric (Host): Right now. This podcast is. Third part of a three-part podcast about one family in particular, and I’m gonna let Vance pick up right where he left off. Vance, tell us just a little bit about the family.
[00:01:33] Vance Lowe: This family, we’re gonna call the Cairo family. He was a professional chiropractor and we have special permission.
[00:01:40] Vance Lowe: We want to give thanks to this family. For allowing us to share these numbers. Of course, we have changed the names to protect him, but let’s go forward. One of the things I wanna just kind of reiterate to bring back, this was a client who suffered financial failure. He was misdiagnosed with Lyme’s disease.[00:02:00]
[00:02:00] Vance Lowe: And if you haven’t heard the prior podcast, you want to do that to catch up. Also, we’re going to provide a video on the actual numbers ’cause we don’t have a way right now to actually delve into the numbers, nor do I think we need to. For those of you who would like to do that, we’ll share on how you can actually get that and review it time and time again.
[00:02:20] Vance Lowe: Remember we say this over and over again, the banks. Always get the money back. The reason that they do is they lend it and they account for every penny. They always keep money in motion. They never let money even sleep overnight. Anybody here ever heard of overnight lending at two o’clock in the afternoon?
[00:02:39] Vance Lowe: The money moves forward with the sun. It goes all the way around the world, back into the bank at eight o’clock in the morning, and they’ve earned a fraction of a percent interest on. That excess money that was in the bank before called Overnight Lending, and we’re gonna try to wrap up this family and this podcast.
[00:02:56] Vance Lowe: We’ve got several pillars to go over, but I’m gonna share with you [00:03:00] some things that they discovered along the way, and it’s called exponential compounding, where we pay off one loan, then we start getting those payments coming in. Remember now we’re financing everything. Those payments come in, they’re starting to combine.
[00:03:14] Vance Lowe: We combine all those payments annually that goes out and buys more debt. So I think it would be appropriate now to discover the banker’s mentality. So I’m gonna share with you how banks think about money. We’re taught to chase interest rates and avoid the problem. Interest rates are not how banks make.
[00:03:33] Vance Lowe: Income, they make it off of velocity and of course fractionalizing, which we can’t do. So let’s go into a typical loan, and I share this in our own book, an example, and I want to do that because it comes to point here with each of these loans they can annualize. If you had the perfect investment that you don’t have to pay tax on, you don’t have to declare anything.
[00:03:55] Vance Lowe: The outside world doesn’t even need to worry about it ’cause you’re self-financing your own debt. [00:04:00] What type of return would you like, Eric? A lot. A lot. How much is a lot? What would you be happy with? What would you be satisfied with? Oh, I’d say 10% would be pretty satisfactory. Okay. And if we can get more than 10%, can Seth and I have it?
[00:04:13] Vance Lowe: No, but
[00:04:14] Eric (Host): we could
[00:04:14] Vance Lowe: talk about it. Oh, okay. That’s what we want to do is we want to talk about how money is made. So I’m gonna go over a typical example with a credit card. Everybody fears credit cards because it has such high interest, and folks, lemme go back to this. Statement. It’s not so much about what we don’t know about money that hurts us, it’s what we think we know about money that’s incorrect.
[00:04:38] Vance Lowe: People do not understand the fabulous tool that comes in what’s called a credit card. A credit card is a line of credit, and they think because it’s a high interest rate. They want to avoid that, it’s probably the number one best investment, lowest interest you’ll ever pay. Now, of course there are some other loans, but when you start looking at the volume [00:05:00] of interest we have to pay, you’ll understand what we’re talking about.
[00:05:03] Vance Lowe: So let’s use a credit card. An unexpected bill comes in, we lose our air conditioner. Of course, summer’s happening, so we’re gonna have to get it replaced right now. And in order to do that, we’re gonna bring in a couple of bids. And we’re gonna go the one we feel the best. And let’s say that that bill, it comes to $10,000.
[00:05:19] Vance Lowe: ’cause it took the whole unit out. So we’re gonna put it on plastic. ’cause that’s the American way. We put it on plastic. And then when the bill comes in, we figure out how we’re gonna pay for it. So the bill comes in, we take a look at our assets, and we discover that all of our assets are tied up. That’s also Murphy’s Law, right?
[00:05:35] Vance Lowe: So now we gotta go to plan B. Alright? Let’s say the interest rate is 25%. Oh man, that’s death all by itself. How much can we change our budget up to be able to pay this off as fast as possible? So let’s say we come up with $500 per month. Those are three numbers. Everybody listening to this needs to either write down or remember it’s gonna take $10,000.
[00:05:57] Vance Lowe: The interest rate is 25%, the [00:06:00] monthly payment is $500. The Vance Low Lending Institution would jump all over this debt and buy it in a heartbeat. Eric, do you know why? Because you’re gonna make the money instead of the bank. Okay? Yeah, we’re gonna make it, but what would the incentive be out of those three numbers?
[00:06:15] Vance Lowe: Where’s the incentive? Well, if I’m following along, it’s interest rate. Interest rate. Okay, man, that’s 25%. You said you’d be satisfied with 10, right?
[00:06:24] Eric (Host): Okay, you got me? Yeah, you’re right.
[00:06:26] Vance Lowe: Okay, so 25%, but guess what? That does not even enter into the picture of why I would buy that debt. Folks listen and learn.
[00:06:36] Vance Lowe: If it’s not the interest rate, what on earth could it be? Welcome to the banker’s mentality. What are the terms? The terms are, I’ve gotta take $10,000 of my money to buy that debt. Right? Okay. What are the terms? They’re gonna make a payment to me of $500 per month. Let’s evaluate why I would buy this debt.
[00:06:59] Vance Lowe: [00:07:00] 500 a month income coming off of that debt times 12. So annually, 12 times 500 is $6,000, right? So at the end of the first year, I have $6,000 in hand and I still have my $10,000 out there working for me, correct? In a way. Yeah. So the value is this. You take the volume of return and you divide it by the money at work, and this one’s simple.
[00:07:27] Vance Lowe: It comes out at 60% volume of return, doesn’t it? So Eric, is that high enough? That’s nice. And if it’s totally tax free. Now part of that’s gonna be principle, but the banks are more concerned with the control of money. What comes back in under their control, they can reinvest it. So now follow with me. Now we’ve got that $6,000 in hand and we still have this $10,000 gonna produce another six.
[00:07:52] Vance Lowe: If we can invest that six and get the same return at the end of the second year, we’re going to have another. [00:08:00] $10,000 in hand from repayments, aren’t we?
[00:08:03] Eric (Host): Mm-hmm.
[00:08:03] Vance Lowe: True. Because the six is gonna bring in 4,000, 60% of 6,000 is 4,000, so I’ve now replaced the money. I bought that debt in a short as two years.
[00:08:15] Vance Lowe: How long Eric would you like this to last? Oh, forever. That’d be great. When this debt is paid off, are there other things that you’ve bought that you’d like the money back?
[00:08:23] Eric (Host): Hmm. Yeah, that makes sense.
[00:08:25] Vance Lowe: Folks, can you start to begin to understand the power of banking? The banks always get the money back, but where they make their money, where they make their power is in the volume of payments coming.
[00:08:37] Vance Lowe: That they get to fractionalize. So every dollar of payment that comes in, they turn it into 10 and lend that out over and over and over again. And that’s what creates our inflation and the downfall of banks someday. That is called the banker’s mentality. And it wasn’t very long before this chiropractic family.
[00:08:56] Vance Lowe: Caught onto that because pretty soon the monthly [00:09:00] payments started doubling and doubling, doubling, and they took every single penny. Instead of spending it, they went and bought more debt. So it was a fine tuned balance. Now, yes, we had to adjust their schedule annually because nothing absolutely works.
[00:09:14] Vance Lowe: Perfectly, but they were able to follow the schedule pretty darn closely. They didn’t have any outside circumstances happen, and I think the man above blessed them because of the trials that they went through. Mm-hmm. That they could get through and clear off all this debt it’s called. The banker’s mentality.
[00:09:31] Vance Lowe: Now, Seth, I think we can go in and we can discuss how those pillars represent as we start getting momentum and as this money starts accumulating, and Seth called it in an earlier podcast, tailwind, tailwind helps push us along. It eases us instead of a headwind, headwind, or finances or expenses, things that where we lose control of money.
[00:09:52] Vance Lowe: We want to get outta that world. We want to get into the world of every time I go to work. Putting at least a portion of that money into our efforts to [00:10:00] advance us. Just like the regular banks. Yeah. This family discovered that and tackled one after another, after another, after another. The long story here, folks, is these guys were amazed.
[00:10:11] Vance Lowe: Their whole comment was this Vance, this is impossible. The numbers don’t add up, but yet they do. The only way we can accomplish this is to be able to get the money back and use it over and over, but every time we use it, we get a new dollar’s worth. One more thing I want to point out here, they never had to pay out of their pocket.
[00:10:35] Vance Lowe: Current income, any additional money that went into their
[00:10:38] Eric (Host): policy. Alright. I know that the second part of this podcast is gonna be Seth kind of chiming in here and talking about those strategies. But I also wanna tease one thing. There is a loom video that these guys have put together. We’re gonna talk about at the very end of this show, how you can get to that loom video and, and watch that.
[00:10:53] Eric (Host): Uh, but that really is gonna bring things onto the screen for you, the numbers, the statistics, some of the charts that they’re using, so you can [00:11:00] visualize exactly what they’re talking about. But that’ll be coming up. After the second half of this podcast,
[00:11:04] Midroll: did that story feel like it was about you? Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like?
[00:11:14] Midroll: 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 visit us at www.privatebankingstrategies.com. Alright, lay it
[00:11:34] Eric (Host): down, Seth, what are we doing?
[00:11:36] Seth Hicks Esq.: Thanks, Eric. Velocity of money, multiple touches on the same dollar the bank’s.
[00:11:41] Seth Hicks Esq.: Always get the money back, and that’s what we’re gonna teach our clients at private banking strategies, how to do, how to get the money back. That’s where they get the tailwind and the momentum into financial freedom. So Vance was describing the volume of interest versus the rate of interest. Now for [00:12:00] all you homeowners out there or real estate investors, I want you to go and grab your mortgage interest disclosure from your home.
[00:12:08] Seth Hicks Esq.: Or a real estate deal that you’ve done, and I want you to look at that disclosure in the total interest paid back to the bank, and I want you to compare that number to the price of the property that you bought and stare at that for a while. Chew on that. You’ll see a much greater number in the amount of interest that you’re gonna pay over the lifetime of that mortgage versus what the property’s worth.
[00:12:33] Seth Hicks Esq.: That’s the whole principle of volume of interest. That’s not just rate of interest, that’s volume of interest. The other components are the fact that as soon as the bank gets that monthly mortgage payment, it is multiplied through fractionalized banking at about a 10 to one ratio, and they lend $10 on $1 out of thin air.
[00:12:53] Seth Hicks Esq.: And Vance was describing that and why that will ultimately fail an economic system. But if you’re in private [00:13:00] banking strategies, you’ll be immune to that. So we want to drive home the point that this is not a rate of interest, it’s a volume of interest focus, and that’s where the velocity of money and multiple touches on that same dollar come into play when a client.
[00:13:15] Seth Hicks Esq.: Captures that concept and the light bulb comes on, that’s when it really starts to take effect. And this principle really, really comes into play in real estate because real estate is something that provides cash flow through rental income. And it’s something that whereby, Vance touched on this in a prior podcast about recasting a loan as opposed to refinancing.
[00:13:38] Seth Hicks Esq.: Most people will go, what is recasting? Recasting is actually where you avoid having to. Pay that volume of interest that’s in your mortgage interest disclosure and you cut that in half, or you cut that in forth and you tackle that principle with a recast. Certain states do that, others may not. Texas is one that you’re able to recast your loans and you can [00:14:00] circumvent volume of interest paid back to financing properties that you may be in.
[00:14:04] Seth Hicks Esq.: When they capitalized the bank, the chiropractic family capitalized their bank. The first time they scrapped together around $30,000. They had half a million in debt, and from an outsider’s perspective, they’ll go, this is never going to work at a high rate of interest on 500,000. But in 73 months they were out of debt and they were purchasing other people’s debt.
[00:14:27] Seth Hicks Esq.: They were financing other businesses, acquisitions, and they were completely financially free. So that’s one of the main pillars of this system. And it’s also one of the. Very hardest to explain. Eric, in some of our prior discussions, you were asking some great questions and really wanting to get into the nitty gritty of the velocity of money.
[00:14:46] Seth Hicks Esq.: And Vance and I have found that in our microwave culture, people want a 32nd answer that just checks the box. This is not one of those pillars. It just simply isn’t. You’re gonna have to jump in. You’re gonna have to get your feet wet [00:15:00] and like I was describing to you off air, you can watch a video on how to do juujitsu or how to swim until the cows come home.
[00:15:07] Seth Hicks Esq.: But until you actually get on the mat and start to train or get in the pool and start to learn how to swim, you’re not really going to get it.
[00:15:14] Vance Lowe: Mm-hmm.
[00:15:15] Seth Hicks Esq.: Right? Mm-hmm.
[00:15:15] Vance Lowe: Yeah, absolutely. Lemme just ask you a question, Seth. So the question that maybe some of our listeners have right now, is this gonna be worth learning this new strategy?
[00:15:25] Vance Lowe: Was it worth it for this client?
[00:15:27] Seth Hicks Esq.: It makes all the difference. They came out of complete hopelessness and slavery to their own debt into a place where they’re entirely financially free in 73 months, but they saw the light at the end of the tunnel.
[00:15:39] Vance Lowe: They had to work twice as hard, right?
[00:15:41] Seth Hicks Esq.: No, they didn’t have to work twice as hard, and they didn’t allocate any additional second job income or sell off their firstborn or any other extraordinary effort to accomplish this.
[00:15:52] Seth Hicks Esq.: They didn’t work any harder. They just used what they had in their hands.
[00:15:55] Vance Lowe: I hope people can realize this. You don’t have to change your lifestyle to [00:16:00] win. Well, my daughter
[00:16:01] Eric (Host): will be happy that I’m not gonna sell the first born, so that, that’s good. That’s good. So much. Hey, well, Seth
[00:16:06] Vance Lowe: just said something I, I’d like to compound on just a, a little bit, and that’s mortgages.
[00:16:11] Vance Lowe: We always like to give takeaways. If you learn nothing else in these three podcasts, please learn this and take away, never, ever refinance your mortgage. Lemme give you a perfect example. Most. People out there believe they’re actually paying the mortgage rate. Folks, you are never gonna pay down to that mortgage interest rate that you refinanced to until the very last of the term.
[00:16:35] Vance Lowe: At 30 years or whatever else, you’re gonna start in the high 90%. Interest rates. You think 25% on a credit card is high. Look at your first mortgage payment when you first took out the mortgage. And every five years people just run and refinance their homes, don’t they, Seth? Either that or they’ve gotta move or something and they lose anywhere from 65 to [00:17:00] $85,000 of unearned interest.
[00:17:01] Vance Lowe: That these mortgage contracts doesn’t require the mortgage companies to pay back. And if that happens every five years, look at the wealth we lost,
[00:17:10] Seth Hicks Esq.: and we’ve got some materials on this that people can dive into in other places on our website. What Vance is describing is. The conditioning of our culture to believe that the lower the interest rate, the better the loan, and it’s a total red herring.
[00:17:25] Seth Hicks Esq.: It’s a misdirection that needs to be exposed, and that’s what we’re doing for our listeners here. That has a great value and a takeaway for free that. It’s not the rate of interest that matters. Most people statistically either refinance or move within five years. They never get to that 30 year end of the term, they see a better interest rate, and especially in the longest bull market and suppressed interest rates that our country’s ever seen.
[00:17:51] Seth Hicks Esq.: The reality is that’s what the banks want to condition people to think so that they refinance. And that they continue to pay a [00:18:00] inverted, high interest, low principle equity in their equity curve. Every loan struck has a principle and an interest, right? And at the beginning of the loan, you’re paying mostly interest and very little principle.
[00:18:13] Seth Hicks Esq.: You have very little. Equity in the property and at the end of the term, you’re paying less interest and you’re paying more principle. Well, that’s a fallacy that we want to expose. So, and that’s the whole point of why we shouldn’t focus on rate of interest, but volume of interest and why you should have the velocity of money working for you and getting multiple touches on that dollar that you worked hard to earn.
[00:18:37] Seth Hicks Esq.: That’s
[00:18:38] Eric (Host): again, another powerful podcast. Spoke about it just a little bit earlier. I teased about the Loom video. Guys, what’s on this Loom video and how do people find it?
[00:18:46] Vance Lowe: It’s their total setup. What they reported is their debt line item, doubt, the 14 debts, the balance they owed, the monthly payment and the interest rate, what little assets they have.
[00:18:57] Vance Lowe: We put those down and where we [00:19:00] started with their bank. And then it literally shows a report of what they were supposed to do month by month, year in and year out, and it shows when they acquire that debt and the last debt acquired is their primary resident, which just so happened to be their highest loan.
[00:19:17] Eric (Host): People can find that video through a link in the summary of this podcast. Correct? Right. Perfect. Guys, thank you so much for providing that information, those resources, again, invaluable. I appreciate, I know that I’m looking forward to seeing it, and I think that everybody that is listening to this needs to go see it so they can actually visualize the things that you guys are talking about.
[00:19:36] Eric (Host): Because this does sound a little complex. You guys are doing a great job of breaking it down, but that will just seal it up to where you can see exactly what they’re talking about and how it works. So please go to that resource, get it for free. Everyone needs to check out that video again, Seth. Thank you so much for breaking this down.
[00:19:51] Eric (Host): I appreciate your time in advance. Same thing, the storytelling that you do with the passion that you bring to the table. I know that a lot of us are feeling what that family’s felt and the next [00:20:00] podcast, you’re gonna dive into a different family, correct?
[00:20:02] Vance Lowe: Oh, absolutely. And it’ll bring on a whole new chapter or concept
[00:20:06] Eric (Host): of what we deal with.
[00:20:07] Eric (Host): Alright, I’m looking forward to it again, guys, thank you so much. And of course, our last thank you goes to you, 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.
[00:20:20] Eric (Host): When Vance and Seth come out with a new podcast, it’ll show up directly on your listening device.
[00:20:24] Outro: 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?
[00:20:40] Outro: Please visit us at www.privatebankingstrategies.com. Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become [00:21:00] available.
