Chris Naugle Shares How To Become Your Own Lender Using Tactics the Ultra Wealthy Aren’t Sharing

Steve Trang: Hey, everybody. Thank you for joining us for today's episode of Real Estate Disrupters. Today, we've got Chris Noggle from Buffalo, New York, America's number one money mentor, former HGTV host for Risky Builders, professional snowboarder, financial advisor, and now helping people build wealth, teaching them how money really works. If this is your first time tuning in, I'm Steve Trang, founder of the OfferFast Homes app, the only MLS for off market wholesale properties, and I help entrepreneurs create businesses that support their family, lifestyle, style, and goals through mentorship. I want a mission to create 100 millionaires.

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And this is a live show, so please ask your questions for Chris to answer. You ready? I'm always ready. Alright. So you've done a lot of crazy things.

So let's just start with just real estate. Right? How did you get into real estate?

Chris Naugle: That's a great question. So as an advisor, you know, I the whole snowboarding career, I was doing that in the early two thousands. When the planes hit the tower, my real estate or my real real retail business started, you know, going down. So I had to find another source. That's how I landed in financial services, and I did really well.

I was actually one of the top guys as an adviser, so I was crushing it. So I had a lot of money. And then just like so many other people, I watched the HGTV shows and the A and E shows. And I saw one. Property Wars was the name of it, and I'm just like, I gotta do this.

He was a

Steve: he was a guest couple of weeks ago.

Chris: Was he really? Oh, funny funny. So I saw his show, and I'm like, well, twenty two minutes to flip a house? Giddy up. So I did.

I I started flipping. 2006, I did my first flip. It was a complete train wreck. I I remember my goal was to make $40,000. That was my total goal.

And I was so oblivious to how real estate financing worked that when I actually put the property under contract, I thought the bank was gonna give me 90% of the money I needed for that deal. Because I'd only bought my primary house up to this point. I was a young man.

Steve: Right.

Chris: So when I got the the commitment back, I'm like, you got guys, something's wrong here. Like, this can't be the right number. And they said, well, you're not living there. I mean, this is just this is just the lack of knowledge I had, so they never taught you this. And then once I got that, I had to start figuring out, well, where's the money gonna come from?

I can either let the deal die or I can figure the money out, and I did. And that was my first deal. And then I did another one, and then I did a development by 2008. And then in o eight, when I was in the middle of this development, I pretty much I had one of the worst experiences when the market crashed. I mean, I got down to being one payment away from being completely bankrupt.

And, at that point in time, I got scared, and I did what everybody else, you know, maybe would think to do or maybe does. I went home to my brand new beautiful girlfriend who just moved into my house, and I said, sweetie, I need your help. I need your help paying the mortgage. I need your help paying the utilities, and, sweetie, my buddy Pete's gonna move into the bedroom at the end of the hall. I'm sorry.

I can't make it. And I ran the risk, you know, like, she could have just walked out right there. She was a new girlfriend, so she's like, I'm not dealing with this. But I think she kinda liked me. She stuck around, and

Steve: Yeah.

Chris: We made it through there. And that's that's kinda where it all started because right after that, even though I almost went bankrupt, I was one payment away from being completely bankrupt and probably losing more than just the strip mall because the guy I borrowed money from, the hard money lender that gave me the money, he wasn't the kind of guy that just takes the property back. He was the kind of guy that takes the property back and then starts calling your family saying, hey. Make sure I get paid. Was this in New York?

This was in New York, and I call him Knuckles.

Steve: Robby's reasons. It was really important that they got paid.

Chris: It was very important that they got paid. And because I'll I'll never forget. Like, I thought everything was good.

Steve: Yeah.

Chris: This guy was willing to give this young guy all this money. It was, like, $360, and he gave it to me really easy. He's like, here you go. Don't screw it up. And I'm like, I got this, man.

Right. Well, when the market crashed, I didn't have it. You know, my whole retail store business dropped 30% overnight. My financial advisory business, where I was doing really well, screeched to a halt. I was making no money.

Steve: So you had three businesses?

Chris: Yeah. I had three businesses. I actually had three stores at that time, plus the pro snowboarding, plus the financial advisory business, and call it a development company for the real estate because it was called syndicated development back then. It was my LLC.

Steve: Okay. So you you're one payment away. How did you overcome that?

Chris: Well, my girlfriend started helping me pay more payments, and then I literally took every penny. But what I also did is every single day, I'd go to the advisory firm I'd work. Then I'd go to my store I'd work, and that would get me till about 09:00 at night. From nine till whenever I was done, I went over to the plaza, which was two buildings down, and I'd paint. I'd do drywall.

I did anything it took because I didn't have the money to pay people. And we're talking about a 8,000 square foot strip mall that was all drywalled. I I at least got it that far. Mhmm. So, you know, I just I put pennies together.

I got it I got it done. I called out favors to friends. I bought lots of pizzas and a lot of beer, and I got, you know, my friends to help me finish it. And I got really lucky. So what really pulled me out of that is I had my store moved in there, and then I had in the middle of this little mobile you know, when they had all those, like, little mobile phone stores that used to pop up all over.

So I had one of them, but the bank wouldn't take me out of the deal because they wanted 80% occupancy. And I had the rest of the the occupancy was this end store, which wasn't finished. Out of nowhere, this guy Kevin shows up, and he's got a one of those video game stores called Oogie Games. And he shows up, and he says, I'd like to lease your space. I inked the deal.

I gave that to the bank, and the bank gave me the financing, which got me out of the deal. So that's like, you know, I don't know what, you know, everybody that's listening or what you believe, but, like, there's there's a higher power because, like, honest to god, like, I was done. I was dead in the water. I had no chance of making it. And then I got that I got that lease.

And I remember it wasn't even built out, and he signed the lease because he he needed the space. And when I had that signed lease, I had the ticket to financing because now I had a 100% fine or 100% leased building Mhmm. And I was ready to rock, and that's what saved me.

Steve: So you get out of the situation with the strip mall

Chris: Mhmm. And then what? So after that, Warren Buffett was always my hero. Right? Buy low, sell high, and don't lose money.

Well, I understood the first two parts. I understood what buying low was, and I understood selling high. But I knew in o '9, buying low, that was what you did, and, you know, that was every piece of real estate I found. So I found a really good realtor, and she started finding me apartment buildings, dilapidated apartment buildings where these people, which were all out of state investors, were losing their properties.

Steve: Experience.

Chris: Oh, I was I was scared. Don't make two two way don't make two ways about that. I was so freaking scared, but I knew I had to do this because I I couldn't I knew that this opportunity was there. And when a deal comes at you and you make an offer and they it's accepted that cheap, you just you just gotta figure it out.

Steve: But you could have just gone back to your stores and gone back to financial advising.

Chris: That would be boring, man.

Steve: It would be boring. But you just had you just got punched in the face, throat, gut.

Chris: You're yeah. I got a knee to somewhere else too. Yeah. Yeah.

Steve: But But you just kept going.

Chris: I just knew it would work. And I I started reading books. Obviously, everybody's read the Rich Dad Poor Dad book. I read that. So I I had that that courage.

And I the other thing I knew. So here's here's kind of why I just pushed through. Not only was I I very, risk averse because of snowboarding. You know, as a snowboarder, you face fear in the eyes every single day. So I wasn't afraid of fear.

But also, every single wealthy client that I had as an advisor, the reason they were wealthy was because of real estate. And even when the market went down, these guys didn't really get hurt. I remember there's this one guy. He was client of mine and he always came to my store to buy snowboards for his kids. And this guy was like living the life.

Mhmm. He had the cars. He had the woman. The one one woman. He had one woman and, but he had just the perfect life.

And he was always happy. And you just knew it was because of the real estate. And I got talking to him about it. I'm like, you know, how did you do it? You know, everybody else is losing everything and you're you're in here buying snowboards and everything else.

Like and he he always said, real estate.

Steve: Yeah.

Chris: I've been buying real estate for twenty years, and I just buy rentals, and I just cash flow them. So he said when the whole market crashed, I said I made more money.

Steve: He

Chris: said I was able to buy more, and that's kinda what did it.

Steve: Yeah. I had the good fortune. Right? I wasn't able to buy properties during the last downturn, you know, ten, twelve years ago. But I had clients that did, and they would come in, and they were just stupid wealthy.

And they would just buy these properties cash over and over again. And when you buy property if you could buy 20 properties cash, the cash flow itself lends you to just buying more properties. You always

Chris: have to.

Steve: Right? So they did really well in real estate too. And I didn't realize how much money was out there until the recession. And you see these guys with the real real money come out.

Chris: Mhmm. Yeah. See, the one thing too, I think, which is is a big takeaway is people always think when a market goes down, you know, like, take 2009 or or what's to come here soon because I'll tell you we're we're seeing signs that it's gonna go down really soon. When the market goes down, people think money vanishes like poof, it's gone. Absolutely not.

It changes direction. It finds a flight to safety. It finds the safest place where to go. Like you guys, iBuyers, you know, I know a lot of people are talking about Opendoor and these iBuyers. Where do you think they came from?

That's Wall Street money, guys. Money's coming out of Wall Street because it's at the high point and everybody understands the big smart money knows the market's high and they wanna estate. And this cycle always happens. Yeah. But it's always happened right under our nose when we didn't know it or, like, 2009, you know, so many of us weren't ready.

And even though I was buying in '9 and I got up to 36 units from 2009 to 2014, which will go there next, during that period of time, like, even though I was doing it, other people were doing it at twice the level because they were ready. I wasn't ready. I was just ballsy. That's all I was.

Steve: Yeah. That's something my wife and I talk about a lot. It's just being ready for the next one.

Chris: Well, I'll I'll teach you how to get ready. I promise you that.

Steve: So you you start you're acquiring properties, and at some point, you're you've got you're on a TV

Chris: show. Well, there's a lot that happens before then. So let me let me take you from that 02/2014 period where, you know, I was buying all this real estate and I got up to 36 units and and you know from the outside looking in, someone would say, wow, you're killing it. You're a financial advisor, one of the top someone would say, wow, you're killing it. You're a financial advisor, one of the top guys in the firm.

You know, you got your snowboarding career. Even though it's at the tail end, I was still doing it and traveling and doing that. I had sold my retail stores in 2010. I had sold that strip mall in 2014. So everybody looking in says, wow, you're doing good.

And I thought I was too. I I mean, all this rent roll and all this stuff. But then here's what happened. You see, every one of these properties that I bought, bought, I bought in my personal name with personal conventional financing, just like you'd buy your house. Right?

That's how I was buying these. And when I got this last building and I brought the deal to the bank, and it was the same bank that had been lending me on all the other ones, I said, hey, I got another deal. This is great. Blah blah blah. And then a couple days later, the guy Greg at the bank calls me up and he says, Chris, we have a problem.

I'm like, oh, did did I not give you something? He says, no. We can't do this loan for you. And I'm like, why? I mean, you you did all the other ones.

And he says, yeah. You don't really fit in the little square box anymore. I'm like, what square box? Well, your debt to income ratio is out of whack because of this deal. And I said, how?

This is already cash flowing. It's a four unit fully rented. And what's changed? Like this adds to it. And he says, yeah, but we don't calculate it that way.

So we can't do this mortgage. I'm sorry. I said, alright. Well, we won't do this deal. And then comes the the knockout blow.

He's like, yeah, but there's another problem.

Steve: They're calling everything?

Chris: Yeah. There's another problem. You see all those those lines of credit that we've been giving you over these years that you've been using to renovate these houses? We have to freeze all those lines we have to call all of those. It's sorry.

It's bank protocol. The bank's trying to thin out their balance sheet because we're getting ready to sell, and they did. They sold the KeyBank. So imagine that. You got all these deals.

Some of these units aren't done. I'm using these lines to finish them and using loans from four zero one ks's, loans from life insurance. Anything I can do just to get these things done and I hit a breaking point. I couldn't make it anymore and you know, I I went from having money in 2008 to almost losing it all. Now I got it back in 2014, and here I am living paycheck to paycheck again.

The dream house, our, the dream house that was on our vision board literally for me and my wife. We owned it, and we are living the life. And then all of a sudden, I had to sell all 36 units. I was miserable, but then I had to sell our dream house too. So here we go all over again.

Steve: And You wanna explain to the listeners what it means for a bank to call the loans due?

Chris: Yeah. So what actually happened is it was the conversation just like that. Greg called me and said, hey. I'm sorry. We have to freeze these lines of credit, and the bank can call these these lines.

Now, I I didn't understand what that meant. I'm like, what do you mean call them? Like, I have to pay for all these? And he said, yeah. Exactly.

So they froze all the lines, which that was that was the knockout blow. So it didn't matter that they were calling them. Just the simple fact that they froze them, I couldn't finish the rest of my deals. Which means I even on cash flow and everything else, if I struggle to try to get them done, it was it was almost impossible. I couldn't have done it.

I needed outside money. And I didn't understand private money. I had no concept of private money. I mean, I you hear about it, but you never know. I'm just like I I was taught to use the bank.

That's just what I was doing. Right. Oh, and it's much cheaper. You know, that that that misconception of, well, this is the cheap money, so it must be the good money. Yeah.

And, when when they froze the lines, that was it. And then he told me they were calling them. And at that point, it wasn't even a matter of trying to fight for it anymore. I just wanted to quit. And I'm just, like, I'm just gonna sell them all.

I'm just gonna sell every one of these things. And, you know, I just went through this terrible period of time in my life. This is that period where I was blaming everybody for everything that happened in my life. I was blaming the economy. I was blaming, you know, my job, everything.

Everything it was everything else's fault, not my own fault. It wasn't till a couple years later that I realized that it wasn't, you know, the money. It wasn't the economy. It was the misinformation I'd been given my whole life. Yeah.

And and I had to sell it all. And me and my my she was my fiance then. We split. And I had to go to I went to Thailand for a month with a backpack just to clear my head. Yeah.

Steve: I had to. So you had to sell them all. Distressed sell or regular sell?

Chris: A mix of both. Some of them, I did really well. Like, the strip mall, I did really well on. But then, like, an eight unit, that I had, I sold at a loss. And just because I just I had to get rid of them.

And and I had these these calls. Now for your audience, when they call it, I mean, they literally are saying you have to pay us back. But they were pretty lenient in how long. So what I did is when they said that they were calling them, I just said, alright. I'm just gonna sell them all.

And that was enough to them. And they said, just keep us in the loop and let us know how that goes. And, you know, let's try to get it done in six months. And it didn't take me six months to sell them all. I listed them all at fair prices, and they all

Steve: sold quick. So you go to Thailand, clear your head. Then what? So

Chris: while I was in Thailand, me and, you know, me and the wife got back together. We came back, and I still had an 11 unit that hadn't yet sold. So what we did, we moved into that 11 unit because I we sold our our house, our dream house that was gone. So we moved into this, 11 unit apartment building, and we remodeled that unit. So I loved it because it was kinda like the bachelor pad.

My fiancee, Larissa, hated it. So that that basically kind of at that point, I was down. I'll never forget it. In the mail came a postcard. During all this this hell that I was going through, I got a postcard to come to a three day workshop.

And it said, come to this three day workshop to learn how to flip houses. And I know every time I say this, people are just like, man, don't you ever learn? But what they don't realize is it wasn't I wasn't going to learn how to flip houses. I was going because I was so humbled by my failures. I had nothing to lose.

But by going, they were giving away an iPod shuffle. And, man, I wanted that iPod shuffle. So I went. And Larissa stay stayed at home. And she was literally this is so funny.

Literally watching Tarek and Christina's flip or flop, like, the first season. And I went to this seminar. And day one, I didn't learn anything. But day two, because I had to stay out the whole time to get this iPod shuffle, there was two guys there, this guy Mike and this guy Greg. And when they spoke, Mike or Greg was the bank.

Mike was the big h he was an A and E star, and he had a TV show. And they were talking about how they were doing their business, how Greg was being the bank, lending Mike money, how they were using hedge funds, and all this stuff. And instantly, I went from, like, you know, sitting back almost half asleep to just it all just came through me. And I'm like, wait a second. These guys, these successful real estate investors, these elite guys are doing everything, the complete opposite of everything I've ever been taught.

Steve: Mhmm.

Chris: Everything I've been taught as as an advisor, everything I was taught in the books, they were doing it totally different, and it was working. And then I started learning about, you know, how they were the bank. So I got this misconception in my mind of, well, all I'm gonna do is I'm gonna start flipping houses. We're gonna make a ton of money. I'm gonna have all this money, and then I'm gonna loan it out and be the bank.

Mhmm. But I very quickly learned that it wasn't these guys. It wasn't their money. They had money, but they weren't using their money. It was other people's money.

And once I learned that, I realized that what they knew was stuff that they don't teach. It was that knowledge that no one else teaches you, that no one else will tell you because it's the knowledge you need to seek out because nobody can get paid to teach that knowledge. And once I learned that, I was a machine. I I could think of nothing else but mastering this and learning how to do this, and I did. I started borrowing money from Greg.

I started borrowing money from Greg's network. So, you know, they say your network is your your network. Well, it happened quick. So from 14 straight through to 16, we were crushing it in flips. I mean, we've done 257 flips, but we did, like, 100 a year.

And, I mean, that's a lot for Buffalo. And we were doing it because we learned that we had money. We had literally untapped money that we couldn't even use. We had so much available to us. Because as you did one, you know, they wanted to lend more to you.

Then you do two, three, four. And as you keep closing them, they don't want their money back. They just wanna keep giving me the money and having you do that. And that's how we scaled so fast. But what actually happened is once we started working with them, we had met some of the TV show stars.

My wife met Neil Tark and Christina. And we were at this event and they got on stage and I remember looking at them and I said, Doloresa, if we're ever gonna get on that stage, we have to have our own show. So, being a pro snowboarder, I had filmed a lot so I knew a lot of filmers. So, we came home and I got this crazy idea that there is no show that takes jackass. Remember the movie Jack the show Jackass?

Steve: Yeah. The show Jackass. Steve O and And

Chris: Flip or Flop. So I made our show, which was originally called Flip Out, and it was like the jackass for flipping houses. And I got all my ex pro snowboarders and ex pro skateboarders. They came in. They demoed the house.

They made ramps through the house when we were demoing. It was it was awesome. That's all I can say. But it was awesome to me, and we filmed an entire series of sizzles. Mhmm.

Sent them off to all the networks, and every network said no. And then we got a producer, and that producer took it to the networks and they said no again. It was too risky for what they wanted. But then when that when that producer dropped us after a year, I wasn't willing to give up because I'd already put all this money into filming. And all I needed was the right producer to get this in there.

So So we got a new producer. That producer reformulated the idea and made us fit in the little HGTV box.

Steve: Mhmm.

Chris: And we hit it at the right time. And we started that in 2014. We ended up airing in 2018 and you know, that's that's how the show came to be. So a lot of people think you get a show on on a network because you got something on Instagram and they just call you and say, we loved your Instagram post about your house. Your before and afters were out of this world.

Do you wanna have a show? Mhmm. It doesn't work that way.

Steve: Yeah.

Chris: I mean, you got it's the grind. That's all it is, and that's how we did it.

Steve: There's a lot of grinding. So your show didn't even go live till 2018. When did you pivot for this you know, you're talking about what the wealthy are doing that no one gets compensated to teach. When did you pivot to that?

Chris: Well, see, I was pivoting this whole time. So this whole time of when I was doing all these flips, I was in that pivot. I just wasn't teaching it because I was learning it, but I was learning it and applying it to myself. You know, I was using it to scale our real estate business because if we're gonna have an HGTV show, we just need to do more houses. We need more money.

We gotta have bigger teams. So everything I'd learned was just going into this. But what I started doing is actually doing the curriculum. I had a real estate education company during this whole time too because the company that we went through, we paid $80,000 to learn. I I know.

But that's just what it was back then. And you all those companies that I'm talking about, there are no more. And you know which ones I mean. Mhmm. So we went through them.

That's how I got where I was. That's how I got connected to the network. But I didn't like the way they did it. They sold education with no application. So I started my education company in 'fourteen and I I had from 'fourteen to 'eighteen when I stopped taking students on, I had done 167 students with a ninety seven percent success rate.

Yeah. But it was so easy to coach people because I was doing the deals. So all I did is I invited all these students in and I said, Here's the deals. Like, Here's how we're doing it. And I just had them come to my deals and I taught them every step of the way.

So it was so easy to coach. So I was kinda developing the money school principles and the money multiplier principles because I was using them and I was doing them as real estate education, but I wasn't teaching just the money side. So that's kinda where it began, but also where it began is as I got the show, okay, as we got closer and closer to the show because we aired in '18, but we knew we were gonna have a show from, like, 2017 to 2018. Like, we were working with the network. During that time, I got introduced to some real heavy hitters.

You know, when you got a show coming, people would just come out of the woodwork. Yeah. And I met multimillionaires. I met billionaires. And because I was an advisor, money was always a natural thing.

So I would always just go to talking to them about money. You know, hey, what are you doing? How are you investing money? And every single time I talked to these people, I started putting together patterns of what they were doing. And it was always always the same thing, but it was the exact opposite of everything I did as an advisor.

It was like, if back when I was an advisor, I was on mutual funds, annuities, stocks, bonds, managing portfolios. These guys are doing different things. These guys are working with insurance companies building banking systems. These guys are using private funds. These guys are are basically, you know, using other people's money to basically take advantage of opportunities that other people could never dream of doing.

And as I put this whole thing together, I started realizing through this journey that everything that the wealthy are doing with money is not information that the average public is ever gonna be taught because nobody has any there's just like a giant wall in between. These people don't have any incentive to tell these people what they're doing and the advisors over on this side, no disrespect to financial advisors because I was carved from that same cloth. But they they're not gonna tell these people about that. They're not gonna advise them to do that. They're not gonna get commissions from you.

They can't get paid. Why would they? And even if they could get paid on the banking systems, they have to take a 60 to 70% cut in pay in order to do what what we do today. They're not gonna do it. I even took my managing partner out.

This is two years ago, I took my managing partner out and I said, Why are you not teaching your agents about this? You know about this, right? He's like, Yeah. It's what the banks do. It's bully.

And then he kept going on with this. And I said, Why aren't you teaching this? That's a shame. And he sat back and because he was a real astute man, sat back and he said, You know, Chris, think about my job. My job is to recruit agents.

And when I get agents in and when I get advisors in, my job is to keep them. So it's hard enough for me to keep an agent in the first five years. I lose about 90% of them. And now, I'm gonna tell them about this great thing that they're all gonna love. And they're all gonna wanna tell all their clients about it.

And then I gotta tell them that they gotta take a 60 to 70% reduced cut in their pay. Yeah. How many how many advisers do you think I'm gonna have after five years? And I said, John, lunch is on me, buddy. And that's it.

Steve: I mean,

Chris: that's the truth of the matter of everything we're gonna get into today is this is the secrets of the wealthy that has remained the secrets for hundreds of years. And nobody has any initiative to go out there and teach the world of it because where is the financial gain?

Steve: Well, someone has to make money doing this.

Chris: Well, I figured it out. Yeah. I figured out how to make money on it. Got it. But So In a very different way and it's three levels deeper than what anyone else.

You know, the money is not on the front line. The money is not on the second line. It's three levels deep. Yeah. But you gotta help a lot of people.

You gotta solve a lot of people's problems before you make money. And that's the mission I began.

Steve: So let's talk about it. I mean, what is what is this piece that people are missing out on?

Chris: So it it starts back hundreds of years ago when the Rockefellers, I'm just gonna take you back to the beginning. When the Rockefellers had all their wealth, you know, they where are they gonna put their money? They can put them with banks, but back then banks weren't strong. And if you read any books about what banks were like back in the day, banks were like thieves. Literally, you you put all your money in the bank.

There'd be a run on the bank and everybody lose their money. Or you buy all these, greenbacks or these treasuries or these, you know, whatever, these notes, and then all your money would be gone. So the Rockefellers didn't want that. They had too much wealth. So they wanted to create their own banking system, and they already had banks, but they wanted a safer bet.

And you know where they landed? They found insurance companies were the safest bet. Instead of banks where they do fractional lending, insurance companies were the safe long term holds. So they said, alright. Well, if insurance companies are where all the money is and insurance companies are the stronger companies out there, How do we set up banking systems with the insurance companies?

And the easiest way they did it is they had to find a way into the insurance company's general account. So how they did it is through general products that are already out there called whole life insurance. So everybody thinks of whole life insurance is just life insurance, money somebody gets when they die. Yes. That's what it is.

But whole life in from with specific companies and with specific riders allows you access to the insurance company's general account.

Steve: So let me just stop you

Chris: right there. Go ahead.

Steve: So, guys, I'm not gonna sit here sit here and just preach, like, whole life insurance. Like, I've I've schooled in many different products, read a lot of books, you know, gone through different programs. And the first thing I do when I hear whole life insurance is I roll my eyes. And I was actually in the audience when Chris was speaking on this, and he actually called me out on not me. He called out the audience.

He

Chris: called out the audience.

Steve: It's like, in fact, I'll bet right now when you guys think about going to take a bathroom break, and that was me. I was thinking, I'm gonna go

Chris: Did we lose anyone from the

Steve: the live? No. We're still there. We're so good. But I was thinking, like, I need to go to the bathroom right now.

Like, I'm looking around. Does anyone else go to the bathroom? So, guys, you know, just bear us out here because it sounds crazy. Mhmm. Right?

So I just wanna put that out there because lots of financial advisers slam Whole Life Insurance. And I was one of those people that said, you know, this is this is like, Whole Life is stupid. Right?

Chris: Well, can I say something that's gonna sound absolutely crazy? Please. And then until, you know, when they stick around, they'll understand. Mhmm. Whole Life is a terrible investment.

Yeah. Probably one one of the worst investments because it's not an investment at all. And if people are thinking right now that I'm pitching Whole Life, boy, they shouldn't even, like, stay on any longer. They shouldn't because that's the last thing in the world I'm doing. I'm simply using provisions within the whole life contract to get access to the insurance company's general account.

Yeah. That's what we're doing. Right. And the only gateway so picture it's just a gateway. But I gotta call it what it is.

Right? I can't go out there saying, oh, well, you know, we're using insurance companies and then skip past the most important thing because that would I would lose instant credibility.

Steve: Yeah.

Chris: It is a specially designed whole life policy, but we are not using it as whole life. We I could give a crap about the death benefit.

Steve: Yeah.

Chris: You know, I've never met anyone in my life that cares more about the money someone's gonna get the day they die than they do about the money they have today to use. Fair or true or true?

Steve: Right.

Chris: Yeah. It's just that's what I care about. So then you go back and you study history and you figure out why are banks the ones that are being the number one users of whole life insurance. It's called BOLI, bank owned life insurance. Banks own more whole life than they do all the land in the buildings combined.

So if you look at Bank of America, Bank of America, I think and I might get these numbers wrong. It's like $10.10 or so billion in real estate and 22 plus billion in whole life, And they've quadrupled the amount they're buying. So you gotta ask yourself, okay. Well, why the heck would banks be doing this? It's either because they're stupid or they know something we don't know.

And the Rockefellers knew something we didn't know

Steve: and And banks are never stupid.

Chris: Yeah. And banks are never stupid. And what they understood is they understood the principles of how using the insurance company's general account returns benefits them. And this is it. This is the the whole thing.

Because once you get past the the gateway, the whole life, the mechanism that gets us into that insurance company's general account, what you have is you now have a place where you can park money, have 100% full control of that money, you have liquidity over that money, and you're gonna make 4% guaranteed on your money. There's no banks paying 4% right now. None. Insurance companies are paying a guaranteed 4%.

Steve: Right. And you guys hear all the time on the radio. Right? If you're listening to the radio, there's a whole bunch of guys promising, selling annuities. Right?

Chris: I think they're always, you know, four to 6%. Annuities. I know a ton about annuities.

Steve: Right. But I'm saying, like, this is not like, that's not new. Like, that that's an existing product. Right. But we're gonna talk about how we leverage that product.

Chris: I hate annuities. Yeah. I hate them because you lose full control of your money. You're giving up control to the insurance companies, and they're using your money here. We're not giving up control of anything.

Steve: Yeah. We're

Chris: putting money into this insurance company's general account through the whole life policy, and we're we're so there's rules. You know, when we build these, and I remember you you kinda heard about this, but we can only put so much into the insurance company's general account because the IRS has rules of how much we can do. And those rules are basically just to to prevent people from dumping billions of dollars into these insurance companies, you know, general accounts. Because once the money gets there, it is protected from liabilities, protected from liens and judgments in most states. It's tac potentially tax free.

I gotta be careful because you can get nipped in the butt. So it's got tax advantages, but we'll just call it potentially tax free. So if you had a billion dollars and you wanted to make 4%, all you do is you just shove this money into the insurance company's general account. But the government set rules where you can't just dump huge sums of money in there and and tax shelter it. So we have to abide by them rules.

So once you get the money in there and it's making 4%, the beauty is the number one thing we're going to do, and this is what's really gonna blow your audience's mind, we're gonna take the money back out. Because we're gonna put it in there. Right? Just like if you put money in your bank account, you wanna leave it there because if they're paying you 2%, if you take your money out of the bank, the regular bank, you don't get paid 2% anymore. Right?

If you got $10 in the bank account earning 2, and then you take that $10 out, how much are you making? 0. 0. If you put $10 into the insurance company's general account through what I'm talking about, though, let's just call it the the banking policy. Right?

So from here on out, instead of calling it a whole life, I'm gonna call it a banking policy just so everybody knows. So if you put $10 into the banking policy and you take $10 out, your $10 still continually earns 4%. Now how the heck can that happen? How can I put money in and immediately in the first thirty days take money back out and still make 4% on that money? Doesn't even seem humanly possible, does it?

Well, that's exactly where the story really begins. So now I think we can move past the whole life because we're not doing this for life insurance. We're doing this for what I just said, and that is the uninterrupted compound interest. This is a way for you to put money into something, get a guaranteed return, have have a liquidity of your money, and continually earn interest uninterrupted. That is the magic.

Actually, Albert Einstein was somebody that I studied a lot, because I'm just infatuated. Matter of fact, he he's an alien. Do you know that? That man was not human because there's no way. But, anyway, get past that.

So he always talked about uninterrupted compound interest

Steve: and how how was the ninth wonder of

Chris: the world, the most powerful thing uninterrupted compound interest and how how it was the ninth wonder of the world, the most powerful thing in the financial world.

Steve: Yeah.

Chris: So he understood this. The Rockefellers understood this. The Rothschilds you study the Rothschilds. Like, they know what this is. They're all using this.

They're They're just not calling it whole life insurance because they don't have to. You know what they're calling it? Privatized banking. So now, everybody should just have had a light bulb go off because I know for a fact 90% of your audience has heard of privatized banking.

Steve: Mhmm.

Chris: They just never knew that it was insurance companies through a whole life. Right? They just thought, oh, privatized banking. That must just be something the wealthy use. Well, it is.

Right. Whole life insurance built a specific way to get access to that. So that's where that's what we do. We create banking systems off of that one principle because we want peep we wanna teach people how to take back control of their money. We wanna teach people how to use their money when they're still making interest on it.

And we wanna have people build wealth through their own debts and expenses, which is, I think, where we're gonna go next. Because we're gonna we're gonna transition how to use this vehicle, this banking system, in everyday life. Because the

Steve: So, before we get there, I mean, I just wanna add here because people may be wondering this. 4% is not sexy.

Chris: No. Not at all. Right? Like,

Steve: hard money, you're making 18%. Like, the goal is, like, you make a lot of money flipping, wholesaling, blah blah blah. And now you just got this fat chunk of cash. And, man, if you can make 18% on this, you're doing pretty good. Right.

So speak on that.

Chris: Okay. So absolutely correct. So you're thinking 4%? Who cares?

Steve: Yeah.

Chris: But have you ever heard the story of, you know, where someone says, would you take a million dollars right now or 1p doubled every day for thirty days?

Steve: Do you

Chris: ever hear that story?

Steve: Of course.

Chris: Okay. What one would you take? A penny. The penny doubled because you already heard it. Right?

But if somebody most people don't know, they would take the million. Right? Yeah. Just give me the million bucks. But they would've passed on about $5,200,000 That right there is uninterrupted compound interest.

Take this back over to an unsexy 4% and it is. But what does 4% grow to over a couple years when it's never interrupted and you keep putting new money into it? Or if you just put a large sum in and that money just grows at 4% year over year over year.

Steve: Yeah.

Chris: Well, I can tell you what it does. And we show this in that example. And, you know, at the end, I know you're gonna give them my webinar. But if anyone were to look at that and they were to put, I don't know, let's just say $25 per year into it, by year six, if they were doing that, they'd be making roughly about a 20 to 30% return on their money. How much did you just say you can get in hard money?

Steve: 18.

Chris: 18. So over here, because of uninterrupted compound interest with your money just sitting there in a guaranteed account, growing and growing and growing, you now have the same capability to make those returns. But what's the trade off? How long did it take us to get there, right? We have to capitalize this system.

It takes time. But that vehicle will continually keep paying you that return. And the best part about this system versus what you just said about, you know, doing a hard money loan is this system, every single day that goes by, you'll have more money. Every single year, you'll have more and it'll just keep building and building. So if 20 or 30% gets you excited, you should see what these things look like after ten years.

Yes. Because it's way more than that. But that's the thing people don't understand. They get so caught up in just the number, the 18%, the 20%. They have no concept of what uninterrupted compound interest actually means and what it can grow to.

That's why I always take people back to the million or the penny. Which one do you want?

Steve: Yeah. And also, with this, we can still take that money back out.

Chris: Well, that's true.

Steve: And lend it 18%.

Chris: Right. So if you if you loan money out, you know, and you're making 18% on that money, can you just if an opportunity comes in if somebody knocks on your door and says, I I have to sell this house and I don't care what you give me for it. It's probably worth 300,000. Can can you give me $20 for it? If you just loaned all your money out at 18%, do you have $20 to buy this house?

Now most people would say, well, I could find $20. Okay. Well, what if it was $200, you know, and it was a million dollar house? The numbers are just the numbers. You would you would have given up your opportunity because you lent your money out.

Here, your money is always available. So your money makes money whether it's in there or not. It's very different.

Steve: Yep. Alright. So you're gonna talk about the third.

Chris: How to use it.

Steve: Yep.

Chris: So the other thing too people need to understand is you have to study and this is what I've done, so I'm just gonna save them a lot of time. You have to study how banks operate. We deposit money at a bank, and that bank immediately turns around and loans that money back out. And they just keep doing this over and over and over again because they're in control of our money. And in doing that, you know, if you did the math, you might say a bank's making about a 20 percent spread on what we're, you know, on our money that we're leaving there.

And, you know, you'd be like, Yeah, that's pretty good. Banks gotta make money. But what people don't realize is banks are making 400% to 1300% on the money we leave there. Woah. That's a game changer, right?

Would you like to make 400% to 1300% on someone else's money when you were in control of that money and you didn't even have to take much risk?

Steve: I think it'll work a little bit less.

Chris: Correct. Exactly. So we just have to mimic what the banks do. So what the banks do and I I kind of just explained it. But when you saw me present it, I actually did it visually and it's a lot easier to see it.

Banks are

Steve: masters at moving money. You give the bank money,

Chris: they immediately move that money out with everybody else's money. They're constantly moving money. Because your your money is worth the most today. And a lot of people don't understand that that that their money is the most valuable right now. But what we actually do in life is we give up control of our good dollars today.

We put our good dollars in four zero one k's and IRAs and bank accounts, and we give up control so somebody else can go make 400 to 1300% on our money. The the funniest thing that I I'll never understand is people do things with money they would never do with things that money buys. Let me give you an example. Would you ever buy a loaf of bread, put it in your freezer, and wait five, ten, or fifteen years, then come back and then eat that loaf of bread? No.

It would not taste good.

Steve: I did it with my wedding cake, and that was not a good idea.

Chris: Yeah. Exactly. So nobody you probably had everybody leave the second you, you know, gave out the cake. Yeah. Nobody would do that.

And nobody would buy a car and wait five, ten, or fifteen years to drive the car. My favorite one is if you're married and you have kids and you bought your dream house, would you make your family wait five, ten, or fifteen years to move in?

Steve: No.

Chris: No. We do things with money. We would never do that with things money buys. We just give up control of our money and let other people go out there and make money on our money. We gotta stop that.

So what we need to do is we need to find a method to basically take back control of our good dollars today. And it's so easy. And then what I do is I teach people changing one thing in your life is all you need to do. And that one thing you change is where your money goes first. The average person saving, what, five to 7%?

That's what they're saving. So let's round it up to 10%.

Steve: If that

Chris: It it actually is five to seven.

Steve: That's the

Chris: average. But prior to, you know, this year when the economy's doing so good, it was way less.

Steve: Yeah. But

Chris: let's just assume people are saving 10%.

Steve: Right.

Chris: That doesn't seem like a lot, but that's actually better than the average. What if we could what if we could add 50% to that, which is changing one thing? Okay. Well, that one thing is just how we buy cars. There's three ways to buy well, there's four ways to buy cars, really.

Number one, how can you buy a car? You can pay cash for it. Right? You got money in your bank account. You go, you pay cash, and you buy a depreciating asset.

But you gave up the future earning potential of that money. Yep. Second way you can buy a car is you can go out and finance it, which then you're gonna exchange the car for monthly payments that you're gonna make. And you're gonna pay the bank or the finance company a monthly payment, which is gonna include interest. Third way, you could lease a car, right, which means you're just exchanging payments to the finance company.

And at the end, you just give them the car back. I've leased cars, and I never really thought about that. But how stupid is that? Right?

Steve: Yeah.

Chris: We're not gonna go down that road because there's people that love leasing. For them,

Steve: for at least both my cars.

Chris: Well, that's okay because my truck is leased too, but I'm doing a swap a lease on it now because I'm just getting away from that.

Steve: Yeah.

Chris: And the fourth way is you can steal cars, but nobody listening to this is stealing cars. So if we just changed who those monthly payments went to every single month, we then could add to our bottom line. So if we had this banking system and, you know, to buy a car cash, you'd have to save for that car. Right? You'd have to put money in a bank account.

Steve: And just to clarify, we're talking about this banking system. Correct. It's our banking system. Right? Because it's our money in that system.

Chris: 100 yours. Contractually yours. Like, it's no different I

Steve: just wanna clarify for the listeners. Right? It's your money we're borrowing from.

Chris: That is correct. It is your money. Absolutely. But we're just gonna do it a little differently. So you've got the money in your banking policy, that stupid whole life policy I keep talking about.

The money's sitting there, and you've been saving into it for a couple years. So you take out a loan from your banking policy. You take a loan out, and you buy this car. And then the car dealership already told you that the car payment was gonna be $350. So you're okay paying the car dealership's finance company $350 because you want the darn car.

So now what we're doing is we're borrowing from our own bank. We're buying the car. And instead of paying the finance company $3.50, why don't we just pay ourself back 350? What we just did is we took back the interest that we are giving away before. Now we're paying that interest back to ourself.

But now every car payment you make back to yourself, that payment can immediately be withdrawn from your account as soon as your check clears. So all you're doing is you're mimicking the bank. You're just moving your money. Now what if you started using that banking system to buy real estate?

Steve: So you took the money out of the bank account. Mhmm. Put it in your bank account.

Chris: But let's call it the banking policy so people don't get confused. So banking policy. Banking policy.

Steve: Into, like, your Bank of America account.

Chris: Yep. Just send it right to your Bank of America.

Steve: And then it goes right back to that policy.

Chris: Yep. Well well, no. You gotta buy the car. So the money goes from your Bank of America policy to pay for the car, but then the monthly payments that you would have made to whatever x y z finance company, GM Financial, instead of paying GM Financial, you pay them back to your banking policy.

Steve: Exactly. Yeah.

Chris: You're just recycling and recapturing the money that you were giving away. Let's let's we'll get to real estate in a second. What about credit cards? I know in America there's a major credit card problem. And I know there's a lot of families trapped out there that are making monthly payments every month on these huge credit card bills, and they can't find a way out.

So they try make extra payments, but that just doesn't seem to work. So what if you use this banking policy, right, this system, and what you did is you took a loan from your banking policy and you paid off your Visa. Okay. So now you took money and maybe not all at once because maybe you don't have enough money in your banking policy, but you just took and you paid off or paid down your Visa. Let's say you owe $5 on a Visa and you pay it down to 2,500.

What most people don't realize is credit cards when you pay principal down, your monthly payment drops. So let's say in doing that and paying half of that credit card off, you freed up half of the payment. So you take, don't know, let's call it a $100 a month that you just freed up by paying half your credit card off. And instead of just going and blowing that money, you take that $100 of money that you were used to giving away to Visa, and you take and you recycle that money back into your banking policy. What you're essentially doing is you're now taking back money you were just given to Visa.

Mhmm. And how much was your interest rate on Visa? 10? 15? 15%.

20%?

Steve: Yeah.

Chris: Isn't that the same as making 15% on your money? It is. Yeah. Now you got those payments from your Visa that you took back that you're putting into your banking policy. So what if you then just kept doing that over and over until all of your debts were paid off?

Steve: Right. Well,

Chris: that's what I show people how to do. I show people how to use this banking system to pay off their debts. But the most important thing is you gotta be an honest banker. If you're okay giving Visa a $102,105 $100 a month, why would it be a problem for you to pay that money back to your banking policy? Well, it shouldn't.

As a matter of fact, it's way more fun. And before we're done, let me tell you the story about the car I just bought my mom or my not my mom. My my wife with this system. Way more fun. I will buy my mom.

Steve: Make sure you skip this section when you when she listens to it.

Chris: So that's just buying cars. Right? That's paying down credit cards. But if you're paying 18% on your credit cards, and I can show you a method to pay your credit cards off, and then you pay the eight whatever you were given the credit card back to your banking policy, it's the same as making 18%. Yeah.

But we didn't have to work any harder, any longer. We didn't have to take on any risk, and we we got full control of our money. We got full control of our money. We're see, the problem we have right now is we're so used to giving up control, and we're so used to being just when we want something, we charge it. We take a loan out, and then that traps us, and we get stuck in this hamster wheel.

Steve: And I think there's I don't know if it's intentional. Right? Like, people are I think there's lots of conspiracy theories out there. Right? Either, you know was it, Illuminati or

Chris: Oh, yes.

Steve: The government or whatever. But the it's it's better if the citizens don't understand money.

Chris: Yeah.

Steve: And so growing up, it's predominantly a taboo topic. In fact, I've talked to people about money because, like, in our in our family, we talk about money. Like, just everyone knows how much everyone else is making. It's terrible. Right?

We tell grandma and grandma will tell everybody else. So we knew exactly how much everyone was making. Money was not a taboo topic. But then I'm talking to other people, and they look at me funny. Like, that's you can't ask that kind of question.

I know. No one talks about money. So I think, you know, our society is intentionally is willfully ignorant by design or by not by design or whatever. And so they're missing out on these.

Chris: They're they're they're massively missing out because they're just not talk talk to you know, they don't wanna talk about it. They wanna give up control because that's just what we're taught to do. Yeah. But you don't have to and the banks don't. K?

The banks don't do anything that we are taught to do. They do the complete opposite and so do the wealthy people of the world. That's why they're in control of their money. That's why when a whole market collapses, you start seeing Warren Buffett who right now, just so everybody knows, is sitting on a $128,000,000,000. Google it.

$128,000,000,000 from the man that never sits on cash. He He he can't buy anything because it's too speculative.

Steve: It's overpriced.

Chris: So he's waiting for it to go down so he can strike.

Steve: Yeah.

Chris: What if that could be you? What if you could just get ready to take advantage of the next downturn? And what if you had a bunch of money sitting in these dumb banking policies that we're we're talking about here, and that money was just sitting there making 4%. And then we can just take the money and use it to jump into the markets or buy Apple or buy Amazon when it goes down 40% or buy real estate. I mean, this is what I did.

So everything I'm talking about here, this is because I did it. In '14, when I all that stuff happened, I learned about this system. And you know what I said? Can can I swear on this podcast?

Steve: So that

Chris: Okay. I probably won't. When when all this came to me and I learned about this Yeah. I said, no way. I'm an advisor.

This isn't real. This doesn't work this way. I know whole life, and it doesn't do this. It's exactly what I said. Yeah.

And he says, it does do this, and I'm using it. And all you need to do is understand it. So that's where I learned how to do this. So I'm not just saying this because I learned this or because I got some product to sell, which I don't. I did this.

And in '14, this is how I got out of all that debt. Yeah. This is how I paid that $80,000 off that I gave that insurance company. And when I learned how to pay things off with this, I started saying, well, what else can I use this for? Can I buy real estate with this?

Well, yeah. So I started buying flips and I would use private money. And then, if I was gonna take it and do a burr with it, which we did a lot, I would basically refinance it. But, sometimes, I came up a wee little bit short on the the refi. Guess where I went?

Right to my banking policy. I took a loan from myself, paid for the real estate, figured out how much that loan would have cost if I took it from the bank, and then I made monthly payments back to my banking policy. Yeah. And I did the same thing over and over.

Steve: Sounds like that's an integral part, though, paying yourself that money you would pay the bank. Because you mentioned earlier, being an honest Banker. Banker. Right? Where you're actually collecting the payments.

What happens if you don't?

Chris: That's a great question. So let's just say somebody's not an honest banker and they use this thing, and all they do is they just keep taking loans from their banking policy. So just let's clarify the loan thing because I know a lot of people are probably liking what they're hearing but they're not understanding this loan thing. When you have money in the insurance company, in your account that you can use, what you're actually doing is you're actually not taking your money out. You're not taking a loan against your money.

What you're doing is you the insurance company is giving you a loan. Okay. So the insurance company is giving you money from their general account and they got plenty of it. So they're giving you money and they're just using your money that's in there as collateral. So your money never ever leaves your account which is why it continually keeps making uninterrupted compound interest.

The insurance company is gonna charge you interest on the loan that they just made you, but it's lower than what you're making.

Steve: Mhmm.

Chris: But the most important thing here is a lot of people when they think of loans, they think of we have to pay those back. Well, Chris and Steve, you guys are saying you gotta keep recapturing all this money. Well, what what if I don't wanna repay the loan? Great. Don't.

You never have to repay the loan. The insurance company will never ever ever ask you to repay that loan. And then people like, okay. Now you just lost me. I don't get it.

I don't get it. I'm lost.

Steve: Right.

Chris: Well, what else does the insurance company promise you? They promise you they're gonna pay you 4% because that's guaranteed. But what else did they promise you in the very beginning?

Steve: Death benefit.

Chris: A death benefit. Even though we don't talk about it because it's gonna be really low, there's a death benefit. So, if you never pay any of those loans back, the insurance company knows and has already accounted for this death benefit that they have to pay out to your beneficiaries someday when you graduate. And folks, I'm not talking about the day you graduate from college or high school. I'm talking about Yeah.

I'm talking about that thing called death.

Steve: Yeah.

Chris: All of us are gonna die and the insurance company knows this. So they have to pay a death benefit. So when they pay that death benefit, they're just gonna take whatever loans that unhonest banker didn't pay

Steve: Mhmm.

Chris: From their death benefit. So really, what we're doing here is we're using a system where we're just leveraging a death benefit. We're literally borrowing from the insurance companies, using our money as collateral, making a heck of a lot of money doing this, and having a system that basically allows us to have full liquidity, full control, make uninterrupted compound interest, and take loans that we never have to pay back. Oh, and if we ever get sued, they can't take that money if you're in the right state either.

Steve: So Arizona is the right state?

Chris: It is. New York is not. So why do I live in New York?

Steve: Weather is nice.

Chris: In New York? Okay. Alright.

Steve: Let's go

Chris: there right now. I don't think you'll think that.

Steve: Yeah. I was there last March for spring break. I was like, what? We are never coming here again for spring break. So, let's see.

I had a so I wanted to talk about something else because I talked about, you know, the you were talking about whole lives. Like, alright. I I gotta use the bathroom. I'm gonna find some water, whatever. Right?

And there's a couple books you mentioned, at the event. Absolutely. So what are some of those books?

Chris: Yeah. So here's some books. So, you know, a lot of people when I tell them this, they they say this sounds too good to be true. You're just making this sound. I was in that seat.

Great. So if if this sounds too good to be true, then why is Robert Kiyosaki writing about it in in his book Second Chance? Tony Robbins is writing about it in his book, book, money, what it's it's a it'll come to me. It's just because I'm trying to think of it. Money,

Steve: There was Money Master of the Game, but there's another one.

Chris: And then there's, R. Nelson Nash wrote a book be called or called Become the Banker.

Steve: Mhmm.

Chris: And then there's another book called five zero one ks. And this is my favorite one of all of them. Five zero one ks written by the guy who pioneered the four zero one ks. Read that book and you will be extremely upset when you're done because what you think you know about retirement plans will be blown out of the water, and everything I just told you about will explain that this is what he was trying to do.

Steve: So I can tell you, in listening to Money Master the Game, I was furious, right, hearing how I've been lied to my whole life Oh, yes. About how money works, you know, investing in mutual funds and, you know, just go with index funds and and low load whatever, and you find out low load is nonsense.

Chris: Oh, yeah.

Steve: It's not a real thing. They just charge you differently. That's right. So it's, so you're telling me I'm gonna have the same level of anger reading these books.

Chris: Oh, five zero one k. You're gonna be downright just ticked off. You're gonna literally and it's good thing this is a padded room because you're gonna, like, need this padding in this room. Yeah. Yeah.

All these books and as you keep going down, you know, Creature from Jacob Island, like all these books. And this is how I get my knowledge now because it fear it further fuels my fire to go out there and teach people the truth. Because the more you learn about the common knowledge you have about the money and the markets and and the Federal Reserve, you don't know anything. Yeah. You don't know anything.

But you know who does? Billionaires, multimillionaires, and those people know. But you can't tap into that knowledge unless you pay them a lot of money or go to masterminds. I spent hundreds of thousands a year just going to masterminds to learn from billionaires to make sure that in my mind, I keep hearing the same story that this is what they're using. And you know what?

I've yet to find a multimillionaire or a billionaire that as soon as I tell them about this, they're like, oh, yeah. We've been using that with our family office. Oh, yeah. That privatized banking. Yeah.

They use that stuff. I mean, they're not doing it themselves, but, oh, yeah. Our office is doing that. We've been doing this forever.

Steve: Well, one of the things that really, you know, helped me kinda see the light of day, because we were talking about it, and we're calling it, it's it's bank owned life insurance.

Chris: Yes.

Steve: And you find out, oh, this is how the bank protects themselves

Chris: too. Should we tell them how that works?

Steve: Yeah. Please. Yeah.

Chris: So, you know, a lot of people what I'm saying, it sounds really good, but let's just talk about real life application outside of mister Naugle's application. Let's talk about how banks use this. So when you walk into a bank, how many vice presidents do you see

Steve: Everybody's freaking VP.

Chris: They got the little black tag or the gold tag. Right? And they pop their chest out. They're a vice president.

Steve: Wait. Is that because of this? Okay.

Chris: Yes. It's exactly because of this.

Steve: So That's, like, been the laughing it was an inside joke, like, me and a few other guys. Really? Everyone's a freaking VP. Like, everyone except for the teller. Unless you're a teller, you're a VP.

Chris: So why do you think the bank would need so many VPs?

Steve: Have you ever thought about that? I thought it was just to make them all feel good. Like, you know, like, everyone's special. Like, you know, Chris, you're special. Alright.

Chris: Here's your trophy. Yeah. Yep. Last place, here's your trophy. Yeah.

Well, it is. But let me tell you the real reason. You see, in a bank, if banks are the number one purchasers of whole life, they call it bank owned life insurance just like you said.

Steve: Mhmm.

Chris: Okay? Then how can banks continually keep buying more and more of this amazing banking system I've been talking about this whole time? Well, they need people. They need a body because an insurance company can't insure just anybody. They have to insure somebody that has an insurable you have an insurable interest in.

Steve: Mhmm.

Chris: As soon as an employee gets turned into a VP, the bank says, hey, Jim. We're just gonna pick on Jim. Hey, Jim. We're gonna give you a raise, and we're gonna give you a big promotion, buddy. You're gonna become a VP of whatever department.

And as a VP yep. Here's what you're gonna get. We're gonna give you a 25¢ raise per hour. And but but that's not where it ends. We're gonna give you a fully paid up life insurance plan for a 100,000.

So So if you ever pass away, your family's gonna go to a 100,000. Jim, no worries, man. We got the cost for that. But then, Jim, if you stay with this awful bank for the next twenty years of your miserable life no offense to any of you bankers. I'm trying to make this fun.

For twenty years, after twenty years, we're gonna pay you a deferred compensation plan. Yeah, Jim. That means we're just gonna make monthly payments to you for the rest of your life, bud. Jim's site. Yeah.

That's fine. Dude, this is awesome. Nobody gets pension anymore. Like a pension, but it's called the deferred comp. I wait.

So I don't have to put any money in to get this this deferred comp thingamajigger? Oh, no, Jim. That's part of your executive bonus plan. So then what do you think the insure what do you think the bank does? The bank goes out and buys this big old honking whole life policy.

On Jim's life, they give Jim a 100,000 of the death benefit. How much do you think the death benefit actually is?

Steve: Maybe a million? 20,000 today.

Chris: 3,000,000? Oh, yes. Yes. No. No.

No. The bank has an insurable interest in Jim. Jim's a VP essential for running that bank. So Jim is an insurable interest. Therefore, the bank can take out a large life insurance plan on Jim.

As long as Jim gets an it's basically an equitable interest in something. They gotta give him something. So they give him a piece of the death benefit, call it a $100, and then they basically give him this deferred comp, which isn't for twenty years. So every single year now Jim's his VP. Every year, the the insurance or the bank is putting money into this insurance policy.

But as soon as they're putting that money in that insurance policy, what are they doing with it?

Steve: Taking it back out.

Chris: They're getting it right back out because they're making 4% on that money. They're borrowing they're leveraging the insurance company's money. And then Jim is just going about his job, doing everything. And then Jim, twenty years later, he starts getting his he gets a letter from the bank. Jim, you've you're thank you for the twenty years of hard service.

We're gonna start making this payment. Guess where the payment comes from? Yep. That stupid whole life policy. Right?

They just start paying a monthly payment out of that whole life. But then, someday, Jim gets old and frail, and Jim graduates. And Jim's family gets a $100,000 death benefit. But how much does the bank get?

Steve: A million.

Chris: I don't know. It whatever the bank took out. Let's just say more. And that bank then just repeats the process over and over. So why would the bank ever stop doing that?

Right?

Steve: And that's why more than half the employees are VPs.

Chris: Right. So And all this stuff's factual. You can Google everything I'm saying. It's all right there in front of you.

Steve: Well, it sounds like a lot of our listeners are educated on this topic already, so they're commenting on it. So, guys, I had the benefit of watching Chris do this presentation live with visuals. Right? Like, right now, we're listening. We're talking about it and having as good a conversation, I think, as we can have about it.

But if you guys actually wanna watch the presentation, go to moneyschoolrei.com/tmmm. Put disruptors, when you're going in there. Moneyschoolrei.com/tmmm. And what does that stand for again?

Chris: The money multiplier method. There you go. Mhmm.

Steve: So you guys can actually watch the same presentation with graphics and everything to really nail it in. So, guys, please ask your questions. I I see lots of comments. Mhmm. So questions, please fire away.

Andrew Coates wants to know, what are the fees charged on the funds that you put in?

Chris: What is the insurance company?

Steve: Does it cost does it cost money to put?

Chris: No. So if you deposit a hun $100 or a thousand dollars a month, the 100 or 1,000 goes into your account. The insurance company, the billable fee from the insurance company for a whole life is the ones we use is $100 per year. So that's gonna be the fee they're gonna charge you. There's a cost for the insurance, which I don't know what it is.

It's built into all the numbers. When they watch the the webinar and the training that I do on this, all the numbers you're gonna see all factor out that cost of insurance. I just don't know what it is. It's irrelevant.

Steve: Gotcha. Xavier Major wants to know if he needs help setting this up, how would he do this?

Chris: He would just get a hold of me, watch that video because I will not speak to anybody that has not watched the video because I'd first need to educate you. And then at the end, there's a link to schedule a time with me. Make sure you put disruptors in there so that I know where you're coming from so we can have a talk about it.

Steve: Gotcha. And then so, Matt Bearer, same question. What's the process to get this started? Mhmm. And then

Chris: And I don't feel like we're even doing half of a good job. And when they see this video, there's like, if they're interested now, when they see the video, their head's gonna explode, because it's gonna show them how to get all the money back for every single car they will ever buy, drive, and own. And if that's not enough reason to spend an hour watching the training, then I don't know. Keep buying cars your way.

Steve: And like I said, you know, I was upset when I've learned more about this. Okeno wants to know, is this the same concept the military uses for, SGLI? Are you familiar with that?

Chris: It it is similar. Okay? It's a very different concept than what the military uses, but the military, I'm sure, is using this. I just don't have factual proof to say that that's the same thing. So I'm gonna I'm gonna say I don't know on that.

I'm always very cautious because I everything I say is factual, and I can give you proof in websites where you can prove it. That one, I don't know. So I apologize. Sorry. That's okay.

Steve: People are asking where to go.

Chris: Well, keep telling I wanna I wanna can I do one bonus round that's a little off topic but the same thing? You see, a lot of a lot of people and many of the your listeners probably have heard of employer sponsored retirement plans. Four zero one k's, four zero three b's, four fifty seven Golden handcuffs. Golden handcuffs. Right?

They all most of us have them or know somebody that has them. So let's say you've been putting all your money in a four zero one k because that's there's literally 40,000,000,000,000 plus dollars in employer sponsored plans. So your whole life, you've been taught to put money there and really you've given up control of your money and you've done a lot of things

Steve: And it's restricted to what you can freaking invest in.

Chris: It's very restricted and you're gonna just get feed to death, but let's not go there. Let's just pretend you got a bunch of money in a four zero one ks. Well, you got this money in the four zero one ks and most people don't realize they can access that money and they think if I take money from my four 01 ks, I have to pay penalties and fees on it, which you do if you take a withdrawal. But most four zero one ks plans or employer sponsored plans allow you to take loans. Check with your administrator and if they allow a loan, they will allow up to 50% or $50,000.

So, let's just talk about a car and then we're gonna talk about credit cards. Let's say everything you heard you love, but let's say all your money is in a four zero one ks and you wanna buy a car. I'm just gonna give a quick bonus round tip here. They're gonna love this. Instead of going to the car dealership and paying for the cash for the car out of your bank account or financing the car, let's do this.

Let's go to our four zero one k, which right now, would you assume or or think that the markets are at a high point like Warren Buffett says?

Steve: Feels pretty high.

Chris: And Warren Buffett says buy low, which you're not gonna be able to do now, and sell high. And the last thing he says is don't lose money and all that takes is sell high. Mhmm. So by taking a loan from your four zero one k, you're taking your money out of the market at the high point. And you take this loan, now you've got this money, right?

$50, let's just say. And you go and you buy a $50,000 car. But in the process of buying this car, you ask the finance company, how much would my monthly payment be? And they say $800 a month. Great.

So, you got a $50,000 loan from your four zero one ks, which you absolutely have to pay back. Otherwise, you will be penalized and pay tax and you have to pay that back with interest. So, what we're gonna do is we're gonna then take that $800 monthly payment on this $50,000 car instead of giving it to the finance company. We're just gonna pay it back to our four zero one ks. And that's gonna serve as our loan repayment.

But the one thing most people don't know is the interest that's charged on your loan from your four zero one ks, when you pay it back to your account, the interest is yours. The finance company doesn't keep that interest. That is your money. So, you're paying yourself back and you're paying yourself back with interest. But what you also did is you recycled the money and recaptured the money you would have given to the finance company.

Exactly what we just talked about with the banking policy, but just done with a more common vehicle. Well, let's say you did the same thing with your credit card debt. You took $30 from your four zero one ks. You paid off your credit cards, which were 15% and then you just take the amount you were given the credit card company and you pay it back to your 4 zero one ks. That's your money, right?

Steve: Mhmm.

Chris: You're paying yourself back and you're paying yourself interest rate was on that credit card, call it 15%, you just picked up and made 15% on your investments in your four zero one ks. It's not an investment, but you just made 15% because you just recycled money you were giving away. That's what I mean. Like building wealth doesn't have to be going out and making a lot more money or working harder or working longer. It has to be taking back the money you're giving away already.

You can build tremendous wealth just by learning how to take back the money that you're giving away by changing one thing.

Steve: All that all that leakage going to the banks.

Chris: That's where all your wealth's going. You wanna know where your wealth is going. 90% of your 90% of every dollar you make is going out the door.

Steve: Yeah.

Chris: So, start there. Figure out who you're paying and figure out a method to get that money back. Use your four zero one k loans. Use this banking system. And then from there, I mean, we could just keep going all night long and talking about how you can use it.

Steve: So this is one of the questions we got here. Wants to know, are you speaking any future events in 2020?

Chris: Oh my gosh. Every single week of every single month in every single city, it feels. They can just go to moneymultiplier.com to see all the events I'm speaking at.

Steve: Gregory Ballard wants to know, can you take your money from your self directed IRA and put it into a whole life policy?

Chris: Oh, my gosh. Gregory is his name?

Steve: Yeah.

Chris: Gregory, that's a great question. The answer is no. Unfortunately, when we're talking about retirement dollars and these banking policies, we have to draw a big line in the sand because the money in your retirement account is qualified money. Even if it's in self directed, it it cannot cross that line. Otherwise, it becomes taxable.

Steve: Okay.

Chris: I wish, buddy. I wish.

Steve: Brad Morrison wants to know, can you put other people's money in there?

Chris: Oh, yeah. Yeah. We didn't really get into that, but you sure can. So if you can borrow money from somebody that isn't your money at a lower rate than, let let's say, lower than 6%, then absolutely game on.

Steve: Mhmm. You

Chris: just have to because it's all secured. I mean, yeah, that would be a great way to do it. I don't have time to get into that because there's a lot of rules. So don't go out there and just start borrowing money and putting it in here. There's rules to that that you gotta understand.

So I'd be happy to help with that one.

Steve: Gotcha. Gotcha. If your employer lets you go, will those four one k loans be called Great question. In purchasable payments?

Chris: So the question was is if you took loans from your four zero one k and your employer lets you go, that is the problem right there. Because if that happened, yes, you have to pay all those loans back. So if you just went and bought your car and you're now making monthly payments back to your four zero one k, but you get canned, you're you're kind of screwed because now all that money has to go back into your four zero one k. Again, another reason why this system is so good because, hey, hey, with the banking system, with the banking policy, who cares? Yeah.

Doesn't matter. But with your four zero one k, if you're gonna take money out to buy a car or pay off credit cards or buy a rental property, make sure you like your job, and make sure your your boss likes you. And if he fires you, beg for your job back. Otherwise, you're penalized to 10% early withdrawal penalty and taxes on the entire amount.

Steve: So how does it compare to an so how does this compare to an indexed UL with a 25% cap and a zero floor with principal protection?

Chris: I don't even know what Yep.

Steve: I know

Chris: exactly what it is. So how does this compare to our good old IULs? Now I love IULs, but IULs only work for long term goals. So there's a ton of brokerages out there selling IULs because they're they're super high commission. What I do requires me to take a 60 to 70% reduced commission.

IULs pay up to 93% of the first year's commission. So think about that. You put $10 into an IUL, that adviser makes $9,300. Yes. 93% of the money.

If they're at a top tier with that insurance company, absolutely. It might be as low as 55%, but it doesn't matter. It goes 55.

Steve: That was piss me off when I was

Chris: What should piss you off?

Steve: When I was listening to Money Mash of the Game. It's like, yeah. You're supposed to make this much.

Chris: Yeah.

Steve: But they're not telling you that before you make this 13%, supposedly, we're gonna go ahead and take 3% out. Oh, yeah.

Chris: Yeah. But, like, think about what you just said there, like, when you got mad reading that because of that. There's a reason why if you just went and bought yourself a standard whole life from the life insurance company down the street, you'd have no money in year one. None. And when when what I'm just telling you right here, you're gonna put money in.

You're gonna have access to it in the first thirty days. But if you went and bought a whole life and then you had you got your state your illustration, you'd have no money in year one, no money in year two, and hardly any money in year three. And then if somebody did that, they'd be like, well, I heard that Chris guy tell me I was gonna have access to my money immediately. You would if you would have done it right. They the they insurance agencies and the advisors don't know how to build these, or they know how to and they won't because they don't wanna give up their commission.

Where do you think that money went in those first two and a half years or three years? The advisor's pocket.

Steve: Yeah.

Chris: We have to give up most of our commission to make this work, which means people say, well, why would you do this if you're making so little? I'm doing this for thousands of people, not just one or two. Thousands. Back to his question about the IUL. IULs are a brand new product.

Back in the day when I was in the finance world, they were called VULs. And VULs are garbage. And if I could swear, I would be cussing like a drunken sailor, but I'm not going to. VULs were very high risk. They used mutual funds and the market gains to increase, and they had really high buried fees.

Those fees that got you mad.

Steve: Mhmm.

Chris: IULs are are exactly the same, but they have a floor. So they're guaranteed to never drop below whatever the base is, but the fees are still there. So when people say, oh, you can't lose money, you can't. You can't lose money in an IUL. But the fees are still there, and they're always going to be.

And the bad thing about IULs is the older you get, the more the fees are. And the other thing is you don't have access to all of your money like I'm talking about with IUL. Factor. Yeah. Because there's surrender charges.

Steve: Yeah.

Chris: It they're they're great. Listen. They're I'm I'm not dogging them. They just don't work for anything I just said. The only thing an IUL will work for is long term goals, retirement.

Gotcha.

Steve: Mhmm. So Jamie has a question. Whole life versus term. I think we kinda talked about it. Do you wanna just go on real quick?

Chris: If I could. Yeah. Term insurance is like renting your house. Right? You have no equity, and you can get kicked out anytime.

Whole life is like owning your house, and you every single payment you make, you're building equity. So do you wanna own your house, or do you wanna rent your house? I think you know the answer to that. Term is strictly protection. If and I love term, but I love term to protect debts.

If you got a mortgage on your house, take out term to protect the mortgage. Whole life is is gonna be used for permanent protection, but the way I'm using whole life and what I'm talking about is totally different than even a regular whole life.

Steve: So disregard the part of this whole life. That's not the important part. That's just a piece that allows you to

Chris: way to get into the insurance company's general account returns. That's all it is. Yeah. And to leverage the insurance company's money.

Steve: That's all that. This work with an IRA or a TSP? And there are a lot of terms I have no idea.

Chris: Yeah. The IRAs and the TSPs, you can't use them to fund this system. Unfortunately, again, remember, I was saying four zero one k's and and this, you gotta draw the line in the sand. Well, that's TSPs, that's four zero one k's, four fifty seven's, four zero three b's, deferred comps. I mean, they're all qualified money.

This is nonqualified money. So this is money that you basically put in after you pay tax on it.

Steve: So it sounds like we probably need to come bring you back for a part two.

Chris: Oh, I could go all day on all these topics. Obviously, like, this is what I've done most of my life.

Steve: So I'm gonna let you think about something a last thought you wanna leave the listeners with while I make a couple of quick announcements. Okay. Guys, we had amazing feedback on our two and a half day event, Max and Me. People the feedback we got was people love the transparency, level of detail. They also complained that we shared too much, but I take that as a badge of honor.

So if you wanna dub your business, go to disruptors.com, see if the workshop makes sense for you. And and not too long from now, we got Ty Taylor, AKA Flipman. He'll be on for part two for today. We're doing back to back. So before we go to last thoughts, someone wants to reach you.

How can they do that?

Chris: They can get a hold of me. I mean, I'm all over social media. Just go to Chris Naugle on Facebook or Chris underscore Naugle on Instagram. Best way to reach me, I mean, just email me, chris@themoneymultiplier.com, or go to my website, chrisnaugle dot com. Best way to reach me.

Steve: Perfect. Last thoughts.

Chris: Last thoughts. You're gonna hear you're hearing me talk and some of you are thinking this is crazy. Some of you are thinking there's no way this works.

Steve: Too good to be true.

Chris: Too good to be true. I want you to think about a quote that Will Rogers said that is my favorite quote of all times. And he says this, the biggest problem in America isn't what people don't know. The biggest problem is what people think they know that just ain't so. Stop thinking you know things.

Stop taking the traditional financial wisdom you've been given in your life and assuming that's all there is. There's a whole another side. The problem in America is not what people don't know. You need to open the door and seek out the knowledge, and that's what I'm bringing to you. It's just the pimple on the elephant's butt.

That's what you heard today.

Steve: Yeah.

Chris: Now, do you wanna see what the rest of the elephant looks like?

Steve: Yeah. Man, that's got a webinar. Scary. Big elephant, man. Yeah.

Awesome. Well, thank you very much. Thank you guys for watching. Thank you.

Chris: Appreciate it.

Steve: It was a lot of fun.