Taking Loans
What You Will Learn
This session continues the real estate investor case study from the previous coaching session, walking through multiple rounds of policy loans used for down payments, renovations, a flip deal, and ultimately paying off a mortgage, and showing in precise numbers what happens at age 100 when you compare simply funding the policy versus funding it and being an honest banker throughout.
Key Moments in This Session
- Multiple loan cycles in one policy: how a 45-year-old real estate investor takes sequential loans for a down payment in year four, another down payment in year seven, a flip deal in year nine, and a mortgage payoff in year 15, with each loan repaid on a committed schedule and the excess capital redirected to premium, building total available capital from $704,000 to $1.3 million by age 100.
- The flip deal garage analogy: how using a policy loan to fund a renovation and then returning both the original capital and the profit from the deal back into the policy is exactly like parking your car in a garage, going out to do your work, and bringing it home again, with the additional profit from the deal now permanently housed in the system and growing for the rest of the policy owner’s life.
- The honest banker math summary: how across all loan activity the policy owner took out $427,000 in total loans, repaid $787,000 including interest, paid $173,000 in interest to the life company, and injected $187,000 in extra premium by being an honest banker, with the total premium input of $361,000 producing a $1.3 million end value while also funding multiple real estate acquisitions along the way.
- The comparison that reveals the teaching point: how the policy funded for six years with no loan activity produces $811,000 at age 100, while the same policy with honest banker behavior throughout produces $1.3 million, a difference of nearly $500,000 created entirely by the policy owner’s behavior of repaying more than required and directing the excess to premium.
- Jason Lowe’s story of paying off a 40-year mortgage 33 years early: how after waving goodbye to the commercial bank, Nelson Nash told him not to celebrate yet because the original payment schedule needed to continue, just redirected into the family banking system instead of the bank, cementing the principle that you must finish the loan schedule you committed to and simply change who receives the money.