[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 investor’s 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 elites. And help you take total control of your financial security now onto the show.
[00:00:37] Intro: Hello and welcome to Private Banking Strategies Podcast with Vance Low and Seth Hicks
[00:00:42] Vance Lowe: Vance.
[00:00:43] Vance Lowe: How are you? I’m doing great today. I’ve been busy over the last week. Done a couple of adventures, but uh, I’m back in the saddle.
[00:00:52] Seth Hicks Esq.: Well, we’ve got a great topic today. It’s one that’s fundamental to being a private banker and [00:01:00] accessing the liquidity that you’re building and putting that money to work. Tell us a little bit about this topic today.
[00:01:06] Vance Lowe: Yeah, we’re gonna go through and try to do a really deep dive in lines of credit. What we do as a group in this strategy is we put money to work. We want to keep our money working for us and we are switching from spending our income, our money, to using our money and getting it back. The whole thing we want to stress is the fact that we have now switched over and we are no longer spenders.
[00:01:33] Vance Lowe: We are users of money. And in order to do that, we have to set up our bank. We have to put our money to work immediately, even in our day-to-day transactions. And through our process of training and instructing people on how to employ and set the strategy up in their own lives, one of the key elements are what we call lines of credit.
[00:01:55] Vance Lowe: So that’s what we’ll talk about today. So what is a line
[00:01:58] Seth Hicks Esq.: of credit?
[00:01:59] Vance Lowe: [00:02:00] Well, the traditional lines of credit are an amount of money that you have qualified with a bank to be able to access at any time. It’s kind of a revolving type situation like a credit card. Where you borrow money instantly for an emergency or an opportunity.
[00:02:19] Vance Lowe: If we’re a business, we might use a line of credit strictly for payroll or for inventory or overhead. The banker, your representative there, will help set it up and you’ll qualify for the type of loan that they want you to use it for. They want you to use it. And pay it back. They want kind of an in and out flow with a business, also with a personal line of credit.
[00:02:44] Vance Lowe: They want you to use the money and pay it back. There’s usually a term that goes with the line of credit, so we’ll be discussing that. So we’ve got business personal lines of credit. The next would be a home equity line of credit where you [00:03:00] could get access to your personal equity in your home. It would be set up the same way.
[00:03:05] Vance Lowe: And then the other type would be a personal line of credit. If you’ve got a good relationship at a bank, then you could set up and qualify. Or maybe X amount on a personal line. So those are the three type of loans. I can’t think of anything else. Can you, Seth,
[00:03:21] Seth Hicks Esq.: here’s a question that, that may be firing off in someone’s head that’s listened to some, uh, some of our podcasts and understands a little bit about private banking.
[00:03:32] Seth Hicks Esq.: And the question is, well, hold on. I thought you said. We’re trying to get outside of the centralized banking financing system because they leverage against you. They have derivative lending. They fractionalize, they don’t give us any interest on our money. What? What are you talking about? What are you talking about?
[00:03:51] Seth Hicks Esq.: Take a loan out from the bank.
[00:03:53] Vance Lowe: We take this deep dive, it’s important for us to understand that this is a financial tool, this line of [00:04:00] credit. It’s a financial tool. Used extensively or widely would might be a better explanation. With banks, they think it is important and it is a critical tool. So what Seth just told us in people’s mind is that can we take the centralized bank out of that equation and do our own personal lines of credit?
[00:04:24] Vance Lowe: And yes, that’s what this podcast is gonna dedicate being so that we can understand the value and how we implement it using our own private strategy, our own private bank. So there are benefits to a line of credit that we just went over. They usually last 10 years, we get re-access to principle. That’s a beautiful thing.
[00:04:47] Vance Lowe: They’ll go a whole lifetime using their credit cards. They may get a line of credit and use that until it’s used up or whatever. Never understanding the power that it creates. Banks, everything they do is lines [00:05:00] of credit. They lend money out and it gets paid back with interest and they make a lot of money doing that.
[00:05:05] Vance Lowe: And we can do the same thing. There are some drawbacks to those three lines of credit with central banks, and that’s why we want to get away from it. Seth, can you think of some drawbacks that the banks would impose upon us?
[00:05:18] Seth Hicks Esq.: Sure. They’re going to have a criteria. You’re gonna have to qualify for that loan.
[00:05:23] Seth Hicks Esq.: They’re gonna over collateralize it. Probably against your assets, you’re going to encumber the equity and the value in those assets. And that’s why I think that you’re pointing out, Hey, this has to be a financial tool utilized in the proper way. ’cause there are, there are some gotchas with centralized banks when they set the.
[00:05:42] Seth Hicks Esq.: Terms and they make the rules. They do,
[00:05:44] Vance Lowe: and it’s absolutely a razor’s edge. Even small business owners don’t know what they’re getting themselves into because the banks will require collateral, and there’s no limit to the amount of collateral that they require. Now I say that in [00:06:00] general terms, unless there is a savvy business owner who says, yes, you can collateralize my inventory to the amount of the loan.
[00:06:08] Vance Lowe: Okay? But normally in the contracts, it’s all of your inventory. Banks want control. They want control of your company if you default on that loan so that they can make sure they can get their money back, okay? But they want total control. They’re not happy with inventory. They want assets you to sign over your asset.
[00:06:28] Vance Lowe: It’s in addition to your inventory. So you’ve got a business and you’ve got a lot of equipment and a lot of other assets, you sign those over, they’re not happy with that. They want you to give them personal guarantees, so all the officers have to sign and guarantee personal assets to make sure that that loan is satisfied.
[00:06:48] Vance Lowe: It just goes on. The other thing that is really inhibiting. Is the personal information that you have to divulge in order to qualify for the loan. You’ve gotta give them [00:07:00] everything that you do. I don’t think they have to, but they want the additional information because information is power. Again, information is control, so they will ask all kinds of questions, not even pertaining to your company or your business.
[00:07:14] Vance Lowe: I want to know all your income sources. They want to know where all that source of money is. They want. If you’ve got cash value and life insurance, they want you to list it. They want all of it plus your tax returns, so you would think that that would be enough. It’s not. In addition to that, you have to continue to requalify on a business loan.
[00:07:36] Vance Lowe: They may make it every quarter. Update us on your financials. Update us here. Update us there. So it’s very ominous in dealing with the banks. Then you go to a home equity line of credit. You have to divulge all of that information. You have to sign all your collateral over to the bank. If you default, they get the home.
[00:07:57] Vance Lowe: You have to also sign over [00:08:00] personal. Assets on a home equity line of credit, on a personal line of credit, it’s the same thing you’re gonna assign as collateral to the banks, everything you’ve got. So now I’m sure I’m being probably worst case scenario, but that seems like every time I hear about this, it gets worse and worse.
[00:08:17] Vance Lowe: It doesn’t get any better. But one thing we recommend, Seth, is that everyone who has equity in their home, when you do not need the money, you should actually get on heloc, a home equity line of credit, not a home equity loan, a home equity line of credit. That way it really doesn’t. Cost you anything to set up.
[00:08:38] Vance Lowe: The only time you’re going to pay money back is when you borrow money, and I think it’s some interest plus 1% or something. There’s one more negative and it’s an unknown, and I’ve got clients right now who’ve been bitten by this. They can recall the loan anytime they want. It’s not you saying you want to end it, which I guess we could, but on an [00:09:00] outstanding loan.
[00:09:01] Vance Lowe: Where you’ve borrowed money and you’re paying it back, they could recall that loan right in the middle of that and switch it to a home equity loan.
[00:09:10] Seth Hicks Esq.: Yeah. You’ve got one thing that we’ve seen and we’ve written about before is like when Wells Fargo stopped making home equity lines of. Credit, and they just said, we’re not gonna make that cash available on your home equity line of credit anymore.
[00:09:23] Seth Hicks Esq.: So whatever’s outstanding, I guess you have the opportunity to pay back, but you don’t have a cyclical ability to access your cash or access equity. You don’t have any liquidity.
[00:09:33] Vance Lowe: Right. And they also give you a timeframe. You’ve got an outstanding loan of $20,000 over there. We’ll give you. 30 days or 60 days to pay that off, or we’re gonna switch it to a normal loan.
[00:09:46] Vance Lowe: And that jacks the interest rate as far as the upfront interest, the volume of interest that you’re gonna pay.
[00:09:53] Seth Hicks Esq.: Well. So with all of these things considered, you mentioned on a razor’s edge in the decision making of when you’re going to [00:10:00] use centralized banks for. Liquidity through HELOCs. Give us some examples of why you should or why you shouldn’t use those and what would be proper purposes and what would be improper purposes for a HELOC or a personal line of credit.
[00:10:14] Vance Lowe: Okay. Well, I tell people all the time that if we cannot qualify for one of these banking contracts, these money warehouses, that we describe, these insurance contracts, the second best strategy would be to get a home equity line of credit because you get re-access to the principle. And you can use it over and over again.
[00:10:38] Vance Lowe: You can start getting multiple touches on that. The drawback is you don’t get the interest and you don’t get the profits when you do have a home equity line of credit, but it’s instant cash. In many states, you actually get a credit card or you get a checkbook and you just write it out and give it to ’em.
[00:10:55] Vance Lowe: So if it’s an opportunity out there, if you have something that you know is [00:11:00] absolutely fantastic, you can just write a checkout for it against that. Well, I think that’s probably one of the main advantages for the line of credit. Also for emergencies, somebody gets sick or somebody gets hurt. There’s instant cash right there.
[00:11:14] Vance Lowe: You may have maxed out a credit card or something else like that. It’s not to be used for consumption. Okay, this is used just like you’re borrowing a, it has to be paid back and so you don’t keep borrowing and keep building that up. You, you try to use it for one thing at a time. So the very best of the best is what we’re trying to describe.
[00:11:34] Vance Lowe: What if we put money into our. Private banking system make it disappear from watching eyes, having it taxed advantage, growing several different ways, both guarantees and profits of the insurance company, and then set up our own lines of credit on our cash flow. Our. Actual day-to-day, week to week, month by month cashflow.
[00:11:59] Vance Lowe: We go [00:12:00] to work, we bring a paycheck in, it immediately goes into the system. We borrow it through our own personal line of credit. Now, Seth, what are the advantages there that you can think of? What would be right off the top of our head if we did that on our own?
[00:12:13] Seth Hicks Esq.: So we shifted from using a centralized bank like Wells Fargo or Bank of America to have a HELOC or a personal line of credit.
[00:12:21] Seth Hicks Esq.: We’re gonna create the same strategy, but we’re gonna do it through our own banking system and structure through a carefully designed whole life insurance contract. So that’s the premise. And when you set up your own banking system, you don’t have to qualify for any financing. You don’t have to reveal financials or p and ls or balance sheets.
[00:12:42] Seth Hicks Esq.: You don’t have to do any type of invasive disclosure whatsoever, and so you’ve got a totally private transaction. It’s not on the public record. It’s not public knowledge as to what type of leverage you have against your assets. Whereas compare that with HELOC or personal line of [00:13:00] credit that’s collateralized.
[00:13:01] Seth Hicks Esq.: You’re gonna see liens on the public record against your business, against your house, against your automobiles, against whatever type of assets you have in the form of deeds of trust or mortgages in the forms of UCC one, financing statements, auto liens, et cetera. So this in contrast is totally private.
[00:13:21] Seth Hicks Esq.: You’re able to re-access that principle like you were describing, and get multiple touches on the same dollar over and over. But instead of the bank making the interest and the profits, your own banking system is making the interest and the profit.
[00:13:36] 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?
[00:13:46] 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 [00:14:00] us at www dot private banking strategies dot.
[00:14:06] Vance Lowe: What we say, but they interpret it through their own life experiences.
[00:14:11] Vance Lowe: And those are still two worlds apart, what you just said. So we’ve got to come together folks, because this is extremely powerful. It is life changing. When we make the statement of merely, all you have to do is switch from spending your money to using your money and getting it back like the banks. When we say things like putting the banking equation back in your life, see, the banks know how money works.
[00:14:36] Vance Lowe: They know how to use money correctly, and they’re the best at it. We can do some of the same things. We can switch to using money, but we have to have a banking and an accountability to put that money to work Now. Who’s gonna get the profits? We are. We’re also gonna get the profits on the contractual side because that’s always guaranteed.
[00:14:59] Vance Lowe: Whether we’re using [00:15:00] the money and we’ve put it in play or sitting there on the shelf, and with the insurance carrier, it’s gonna always earn X amount guaranteed. Plus the profits of the insurance carrier are paid in. Every single year. Now that’s not at risk. There’s nothing here that we’re setting up and showing people that have any economy risk, any risk of theft, any market risk, the insurance company can ever come back and say, oh, well we had a.
[00:15:29] Vance Lowe: Bad year this year. That money we paid in, in profit last year, we need that back. It’s called yield folks, and you really need to know and start asking banks and your investment places, what is the yield on these accounts? And I know Seth, we’ve said this several times and several podcasts. Yield means money put in the account that cannot be reversed.
[00:15:54] Vance Lowe: If it’s average rate of return, it is a fictitious number mathematically [00:16:00] it’s correct. Okay, and that’s what the advisors and the brokers are all going off of? Well, no, these are the correct numbers. This is the average, but it has no correlation to what people made in those accounts. None whatsoever. And I’m hoping our new president, he’s really going after some things in the SEC right now to make this more honest and more fair for the person investing.
[00:16:25] Seth Hicks Esq.: Right. You named some really great benefits and values, your private banking line of credit, so it’s in a system whereby it’s co compounding and growing year after year, and you’re reaping the benefits of being an owner in that the life insurance company and they’re paying you dividends. Is it something that can go backwards?
[00:16:47] Seth Hicks Esq.: I mean, we talk about this, it’s even actually a. Pillar, it’s one of the seven pillars of private banking strategies. And folks, I’ll drop a little gift benefit, which we always offer on our podcast. If you hit up our [00:17:00] website, we’ve got a free book offer there that will teach you more about this type of stuff.
[00:17:03] Seth Hicks Esq.: And if you stick around till the end, we’re gonna also give you another gift from Vance and I. So Vance, tell us more about that.
[00:17:11] Vance Lowe: Okay. Well, if you’ve ever thought that you would be financially a place five years from now or 10 years later, especially when we first started working, most of us were sadly disappointed.
[00:17:23] Vance Lowe: No, I can’t really see any different. Uh, difference. The numbers have changed, but the flow I’m building up wealth that I’m trying to build up is not there. And that was designed on purpose for us to spend money. We were taught virtually nothing how money works. We think we know how money works, but we spend our money and we know if we’ve listened to anything about money that we should never ever spend principle.
[00:17:49] Vance Lowe: Uh, a lot of people kid themselves and think, oh, well your paycheck is not principle. Your principle is the money you use to use for investments, [00:18:00] but the money coming in off of that is not principle. So they spend it. Folks, the banks don’t spend money. They always, in every case, get it back. Well, what about their employees?
[00:18:11] Vance Lowe: What about their business? What about, you know, all the equipment they have first rate furniture and everything else in those banks. And those bank buildings are worth a lot of money. They pay monthly. Payments on all of that stuff back to themselves. They have double or triple the money back on what it actually costs so they can stay updated their computer systems.
[00:18:34] Vance Lowe: I happen to know this because I have a son who does computer work and programming for many branches and he programs all this stuff. He gets a lot of the stuff in and they rotate or turn over to new product in the computer business anywhere as soon as a year and a half to three years. Three years is the max.
[00:18:54] Vance Lowe: So on the private side folks, what would life be like if we could get [00:19:00] the money back and reuse it again and get the money back? All while we’re bringing in new income? As we go along here, we talk about. What it’s like to run a town. The economy of a town is to attract new money coming in and hoping they lose less money out the back.
[00:19:17] Vance Lowe: If that happens, that town’s gotta prosper. You are your own mini economy. You’ve got to have more money coming in than is leaving your control. So more money coming in under your control versus leaving your control. That’s the force of money. Money is always in motion, always just a lot of benefits there, and you just discover more and more as you practice the strategy,
[00:19:40] Seth Hicks Esq.: right?
[00:19:41] Seth Hicks Esq.: It’s keeping your money awake. There’s really no better strategy on earth.
[00:19:45] Vance Lowe: There’s not, and the reason we’re talking about line of credit and gone into such detail on this. Each individual we can show you how it impacts your own individual life. The benefit is most of our [00:20:00] clients come to us. Some of them are absolutely embarrassed to tell us how much credit card debt they have.
[00:20:06] Vance Lowe: They’ll have 40, 50. $250,000 of debt in credit cards, and they have car debt and they have big mortgages. They bring money in, but it all goes out and most of it goes out in interest and everything else, and they live month by month. They don’t even have solvency for more than 30 days. However, we call that lemons or sour.
[00:20:29] Vance Lowe: We change it to lemonade when we switch from bending money to using money and instead of paying off. That debt, we focus on purchasing that debt. How would you like to own your credit card debt? And you make the 35% tax free. So money has to move. It’s not free. No matter what we do with money, we finance it, we’re always going to pay interest.
[00:20:55] Vance Lowe: It just depends whether you’re gonna give that interest to the banks or you’re gonna give it [00:21:00] back to yourself.
[00:21:01] Seth Hicks Esq.: That’s a powerful structure and especially when you begin to implement it and see the infinite ways to apply your banking strategies, and that’s why Nelson Nash called the Infinite Banking System.
[00:21:13] Seth Hicks Esq.: There’s a great book, folks that he wrote that we often suggest people to get and told you about a free gift that Vance and I would. We wrote a book ourselves called What the Banks Don’t Want You to Know. It’s a tool for financial freedom. We spot a number of issues like we’re talking about on the podcast today.
[00:21:30] Seth Hicks Esq.: Give folks a little bit of an insight about what we’re teaching them in our book.
[00:21:34] Vance Lowe: Well, it gives a a pretty good background on our history, our experience in money management, thinking we were working independently when we discovered, at least I did that I was a puppet of the banking system. We teach you the power of self financing, I think.
[00:21:51] Vance Lowe: I’ve got a little story in there of financing a bicycle to a, a grandchild, and then the miracle of compounding money. That little [00:22:00] illustration will blow you away. As a matter of fact, you probably won’t believe it, but stick to it. If you want to prove out the numbers, you do it. We compound a penny every day for 30 days, then you might not believe what that gets up to.
[00:22:14] Vance Lowe: And then just about the origin of bringing back something that America had that made our country. It’s the whole reason we rose to number one, and now we’re no longer there. Okay? And that’s because of banking and government, and maybe we have a chance of getting back there. This is the way you can do that.
[00:22:37] Seth Hicks Esq.: Well, that’s awesome. So folks, we make that book available to you on our website and it’s free and you can listen to it in on an audio format or you can read it in A PDF. And in exchange for your email, which is the way you stay in touch with us, you can get immediate access to that book and if that book resonates with you in this podcast, resonates with you and our other podcast.
[00:22:59] Seth Hicks Esq.: We want [00:23:00] you to schedule a call with Vance and start to take the steps to learn how private banking strategies will work for you and with your particular circumstances, your particular finances. Vance begins to walk you through these steps and showing you exactly what to do and how to do it. There’s not many folks out there with Vance’s experience and infinite banking, and there’s not.
[00:23:23] Seth Hicks Esq.: Any other people that we know that actually teach you how to bank. So Vance teaches you how to become a private banker, and that’s probably one of the biggest values Vance, that our clients give us feedback on. And we have lots of folks that come from other people in the industry. They’re like, well, we’ve got these life insurance contract policies that are supposed to be banking s We don’t even know what to do.
[00:23:43] Seth Hicks Esq.: We don’t know how to bank. R Nelson
[00:23:45] Vance Lowe: Nash is the author of bringing back this strategy, and we owe him a great debt. And thanks for rediscovering this and putting this back where Americans can take [00:24:00] advantage of it. It is so powerful, but it’s all about setting up your own private economy. We don’t have the luxury that we think we did of bringing your paycheck home, cashing it, and spending it.
[00:24:13] Vance Lowe: Because that forces you into slavery. It forces you to go back to work and do it all over again. And that’s the definition of insanity to me, right? Get out of the rat race. Folks, we might mention that there’s also a game called the Rat Race. You owe your family a chance to understand and learn about money, and the secret of winning.
[00:24:35] Vance Lowe: And I’m not gonna tell you what that is, but the younger kids will have the advantage over the parents because they don’t know anything about money yet, and they’ll walk their selves through and just try to solve the problem where we as adults, this is how you have to do it. This is the way you need to do it, and you’re gonna find out that that’s not correct.
[00:24:56] Vance Lowe: So we have a lot of tools. We got our free book. It [00:25:00] mentions another book by r Nelson Nash. You probably ought to get that one too. And then I want to take you through, I call it a test drive. What if we just set it up and we show you your results of living the program versus not side by side, month by month for an eight year period of time.
[00:25:18] Vance Lowe: And we’ll do that at no cost to let you see, but we need your head in the game. We need you to have read our book and, and, and Nelson’s book, and we record everything we do. We actually help an individual build their own private personal library of this information to answer their future questions. We have to feed you, we have to give you information.
[00:25:39] Vance Lowe: 12 years worth of education in a very short period of time.
[00:25:43] Seth Hicks Esq.: Folks, we are so honored that you chose to be with us, and we hope you come back for the next podcast. Visit our website, private banking strategies.com. It’s Private banking strategies.com. There you’ll get that book offer and through our emails you’ll be able to schedule calls with Vance, starts with an [00:26:00] exploratory call, and ends with him providing you this eight year roadmap and analysis of how it works for you.
[00:26:06] Seth Hicks Esq.: So fans, any closing comments?
[00:26:09] Vance Lowe: I encourage all of us to learn something new today. Something you didn’t know before. Yeah. Right on.
[00:26:15] Seth Hicks Esq.: Alright, thanks folks. We’ll see you on the next one. Bye-bye.
[00:26:18] Outro: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:26:26] Outro: 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. Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become available.
