Real Estate And Passive Income With Russ Morgan And Joey Mure

Episode 474: Real Estate And Passive Income With Russ Morgan And Joey Mure

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One of the biggest myths around money is that you have to work for 60 years before you can even think about doing the things that you are destined to do in this world. Passive income allows you to do those things now, no matter how old you are. It is possible but how come so many people aren’t pursuing this path to financial freedom? The biggest thing that holds people back is access to cash. Mitch Stephen gets Russ Morgan and Joey Mure, the founding partners of Wealth Without Wallstreet, to explain how you can get around this problem through their iteration of the infinite banking concept. Listen in and learn how you can take control of your own money and use it to become a true producer, make money while you sleep, spend more time with the people you love, and have the ability to do what God has created you to do in the world.

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I’m here with Russ Morgan and Joey Mure. They’re out in Alabama. We’re going to be talking about real estate, passive income and the mindset that goes with that. I would like for all of you all to take one second and let’s pay homage to LiveComm.com. Thank you for sponsoring this episode. If you don’t know what LiveComm.com is then go check it out. It’s all about smartphone numbers, capturing the cell phone number of incoming callers and using that to generate leads and to stick with follow-up. I’m averaging four days on the market with no signs in front of my houses for sale. It’s all due to technology. I’ve paid the bills, Russ, Joey. It’s time to learn something. Let’s start talking. Give us a little background on what you are up to, what you’ve been doing so the audience can get a feel for who you are and what you do. We’ll then jump into some questions I have here. 

Mitch, I started in the mortgage business back in 2003. I met up with Russ as a friend. This was probably 2007, 2008. We were in Sunday school together. He’s a financial planner, one of those traditional Wall Street money babysitter guys. I sat there and I said, “This is low down. We’re friends. You don’t even send me referrals. This is pathetic.“ One day he woke up and he was like, “Joey, our mortgage company got nixed. I can start sending you referrals.” I was like, “I get to play second fiddle. That’s awesome.“ He said, “First, you got to read this book.“ He hands me the book and said, “Plus that will be $20.“ I’m like, “This is low down. That’s a low budget. You can’t afford a $20 book to give me so you can encourage me to work with your clients.“ I’m never going to let him go first again. I feel like I’m getting kicked. He knew that I was cheating. 

It’s a long story. That book dramatically changed the way I view money in general and the way in which people get to financial freedom. I was on that search. I didn’t realize that there was a way that was opposite of what Wall Street is teaching. I started implementing those things personally. For years, it was a dramatic change for my family. I sit at a conference with him in 2014. I said, “Why don’t more people know this?” I felt like the one guy sitting on a bar of gold that nobody else knew about. I told Russ, “I feel like God’s telling me I need to go out there. I need to do a much better job than you and teach people this stuff.“ 

First, he was mad and then he said, “Are you serious?“ At the time, I was making well over $300,000 a year in the mortgage business. I had great reputation in the community. My wife didn’t have to work. It was a good thing I had going. For me to start over from scratch, it was that much of an impact that I knew I could make on people. Long story short, 2014, I left that job in the mortgage business. I joined up with Russ. Within eighteen months, we had launched Wealth Without Wall Street. We’ve been doing that since 2016. 

You never said what book you read for $20. That’s a lot of money for a book. 

It’s Becoming Your Own Banker by R Nelson Nash. The funny thing was Nelson was right here in Birmingham and none of us had ever even heard of him. He’s an accomplished author. He‘s done conferences all over the country. He was like Jesus. He was not loved in his own hometown until Russ ran across him and then that changed everything.  

I’ve learned from expensive books that the paper that they’re written on them don’t cost more. The artwork doesn’t cost anyone the regular book. Usually, people that are charging a lot for the book are saying, “It’s worth too much to give away for $5.” It’s stupid. If you don’t want to pay $20 for this item, you don’t need to hear this. I’ve seen it on the outside. I’ve also had to deal with it internally. My books are $20, $30, $50. People come up to me all the time, especially on the $50 book, which is the finished book, The Art of Owner Financing and go, “Why in the hell is this book $50?“ I say, “You need to set it down. Step away from it slowly. You can come back to it when you’re ready. That book’s worth $1 million. You’re not ready for it yet.“ 

I’ve heard it said that people know the price of everything but the value of nothing. With the wisdom that comes from your book and from some of these others that have so much insight, it’s amazing to see how Joey’s life has dramatically improved after having met me and me making the pay $20. It’s that simple. 

It’s like you’re my hero or something, Russ. 

I can’t take all the credit. Mitch, we’ve had this conversation before but like what Joey said I was a money babysitter. I thought I had it all figured out. I was a Certified Financial Planner. I had the designation. I had the initials after my name as if that meant something. When everything crashed in ‘07 and ‘08, I was like everybody else, palm up to the sky trying to figure out what had happened. Thankfully that book came to me and I had an opportunity to spend a little time with the man who wrote it. It opened my eyes to what we’re doing, which is helping people create cashflows that are greater than their monthly expenses, helping them unchain themselves from jobs or retirement mentality, showing them how to be producers and helping them see that there is a light at the end of the tunnel. It doesn’t have to end working for a job that you hate for 35 or 40 years. 

At some point, it’s hard for some people to believe. It’s not about the money anymore. The money can’t be the only reason. There has to be a higher reason. For me, I can only eat and drink so much. With another million dollars, we’re not going to change what I drive. I’m not going to change where I live or anything. Dave Ramsey, they do the primal screen when everyone gets debt-free, which by the way, Dave Ramsey had a heart attack with me. I bought my first 100 houses on credit cards, which also goes to show there’s always a dichotomy of thinking. There’s no one way to do it. He does the primal screen when people get debt-free and ripple their credit cards and all that. 

Becoming Your Own Banker: Unlock the Infinite Banking Concept

It sounds like your office is the same way. We ring the bill when people fire their boss. I don’t know why that turns me on but it turns me on. I’ve had people drive across the country, knocked on my door unannounced and say, “Are you Mitch Stephen?” I say, “Yes.” They go, “Can I shake your hand?” I say, “Yes.” This is a real life case. The guy says, “I fired my boss from my job. I told my wife I’m officially free. She says, ‘What are we going to do tomorrow?’ I say, I’m not going to start tomorrow. I got something to do tomorrow.“ He drove 400 miles to my house. That’s why you do it. They don’t always drive 400 miles if they don’t know whatever. You know that it’s a huge impact on these people’s lives. The reason why is because after you quit that JOB, you freed up 2,600 hours a year to work on you, who you’re supposed to be in this world, your family and your devote. If you don’t waste that, that’s going to ripple for decades. 

Who are you supposed to become? That is a great point that you made, Mitch. I feel like that’s part of the reason why we do what we do. We look at financial freedom as the means to somebody become who God has created you to be. He is all about his glory. You reflect on him in some unique way. If you’re in the shackles of financial, poverty or feeling like you can’t even breathe, you’re below the water because you’re constantly living hand to mouth or whatever, you cannot possibly become who he wants you to be. It’s impossible. It’s our goal in our job to help bring people, first of all, out of the mindset that you have to retire someday and live pitifully for 30 to 40 years. Start living and getting freedom now, so that you can become that person. 

We never get to Russ. Give us a little about your background. 

My story is that I am Joey’s hero. I made plenty of mistakes in the financial world but thankfully was gifted the opportunity to have him as a partner and expand the horizon. I was a little local certified financial planner helping a lot of doctors and dentists here. My wife’s a dentist or at least this by trade. She no longer practices but I worked with a lot of high-income earners who are so low economically, dependent on their ability to go in and do a job. While they made a lot of money, I saw a lot of them be unhappy with the way that life turned out. I observe that as they became more successful, at least what we would deem in the world successful is that they made more money to join fancier country clubs. They drove nicer cars and lived in nicer neighborhoods. I saw them spending less time with the people that they love. 

I was grateful that the opportunity to learn about this entrepreneurship world, the way to creating streams of income can lead to more time with the people that you love. Also at the same time lead to plenty of lifestyle opportunities and things. I get to do a lot more now than I ever have. My wife homeschools our kids. She’s no longer chained to a dental practice. We work virtually with people all over the country. I have the ability to travel and meet unique people like yourself. I love the opportunity that Joey and I had come to spend some time in San Antonio. Sit in the same room that you’re sitting in. All of that would be under still the pretense of us “working” but we were not doing it in a place that we couldn’t go somewhere else. We’ve built a business and a team of people that coach people. When they’re trying to find help, we’ve got those systems in place. I haven’t figured it all out. I’ll make fun of Joey and act like I’m wiser than him. I’m not. It’s just part of our stick that we got to jab each other as many times we can in the show. 

One of the things that struck me about financial freedom early on was I always thought that was words that wealthy people use. You can be financially free at the most modest level. All it means is that your passive income or some stream of revenue exceeds your wants and your needs. If you’re used to living on $3,000 a month, that’s your paycheck. That’s all you have to do to become financially free is bringing in $3,001 outside of your job that comes in every month. 

You call that the Moat strategy. 

I’ve developed a theory called the Moat Theory when I was trying to figure it out. You know that failure is part of the plan. You can’t do anything and get good at it if you’re not going to fail. I knew it was part of that. I associated failure with going under or collapsing. I was trying to figure out how do I fail forward? How can I fail but not lose everything all the time? Starting over from zero is hard. How can you go out there? The premise was to get enough passive income to be financially free. Meaning, you don’t have a job, which in my case was $3,500 a month at the time, which was not a lot of money. Figure out how to make that come in. 

All of a sudden, you don’t have to be a millionaire. I don’t have to figure out how to do a $1 million deal. I’m trying to find $3,000–plus to come into this stupid mailbox in the greatest country in the world, in the greatest infrastructure ever known in the history of this planet. All of a sudden, it seems like if he can’t get that done, there’s something wrong. It’s not easy but you still got to study and figure it out. I figured once I got that in, I dig a moat around it and never risk it so that everything I made extra above that I could go out and if I lost it, I could come back. I still go inside my moat where I had my castle, my air conditioning and my car. My insurance was paid for, my cable TV or whatever it was I needed to survive in there. I could retreat back to there, 

heal up and figure out what in the hell I did wrong so that next time I go out there, maybe I’m on my win. The problem is some people don’t even think that there’s even the idea that they could be financially free themselves. They’ve been in this cage, on this hamster wheel so long that it never dawned on them. There are people in my own family that were that way when I was growing up. “How come you never went out and tried anything on your own?“ “I don’t know. I never thought of it.” What do people have to do to become financially free in your opinion, a step-by-step process? 

We built this out. We’re finishing up a book ourself. We wrote it as Three Steps to Financial Freedom through Passive Income. On those three steps, there are many sub-steps. The way we break down the three big blocks is clarity, control and course. What you described was right in line with what we would describe in our clarity part. A lot of people haven’t given themselves license to dream. Maybe it comes from a scarcity mindset, a scarcity upbringing, a scarcity network of people that they spend the majority of their time around, that no one else is seeking that thing, achieving that thing or on the journey of that thing. They don’t feel like it’s possible. We’ve challenged people to get clarity as to what you would be doing or where would you be if you were financially free? What would that give you the ability to do? 

Do we take them through a process of explaining who you need to be in order for that to happen? What do you need to do for that to happen? What will you have if it happened? We have them write this down. Usually, it’s a 20 to 30–minute exercise for them, sometimes longer. It’s them mind-mapping the opportunities that sit. It doesn’t mean that I’m sitting on a beach, drinking my ties with a God out on the ocean in front of me. Sometimes all those things don’t have to do with money at all. I don’t think people have spent a whole lot of time doing that. They got out of school, whether it was high school or college. They went to work. They spend the rest of their lives chasing that extra minute or two to breathe. Do they never take the opportunity to think about what would life look like if I were to do something different? 

Fear surrounded them. The Wall Street mindset is what we talk about a lot of times. It’s making them think, “Is it normal to work for 30 to 40 years before you get an opportunity to do these things that everybody else is doing what you want to do?” Dave Ramsey even plays into that. We make fun of that a little bit. We take adult steps, not baby steps. It‘s more about what can we do? How can we enjoy life? I want to be able to be that guy that travels 400 miles to be able to shake your hand and say, “I fired my boss.” Know that I had the freedom to do it and what then comes after that. 

I can’t imagine the things that were going on in that person’s life before they were able to do that and what’s experienced since then. For us, clarity is a constant moving target. It’s never static but it allows them to have a vision. Most people have never achieved a goal that they haven’t written down and then visualize the steps it’s going to take to get there. For us in that first step of three steps, there’s a lot that goes in it but it starts with a vision. Who do you want to be? What will that look like when you achieve it? 

I’ve had people ask me, “What do you want your life to look like in five years?“ It’s a damn hard question. No wonder I get lost sometimes. I have no idea what I want. It’s very hard to define. 

Think about it, Mitch. You’ve already dreamed some pretty amazing dreams in your lifetime. If it’s hard for you to answer, think about somebody that’s sitting in a cubicle and they have never lived outside of that but they know that they want more. They can’t even put it into words. That’s what we find is that people have been trained to follow a process that is not to their benefit. There are so many people putting money into places that don’t line up with what they would want. They’re putting money into 401(k)s but they want freedom. We’re like, “You said you wanted freedom sooner but you’re putting money into something that has to be used in your 60s. How does that lineup?“ People are like, “Why am I doing that?“ It‘s never dawned on this, “This is supposed to be to my benefit. People told me this is a good thing for me.“ They follow suit. 

There are a lot of things we’ve been told to do. I’m a private lender. I loaned money. I drive around town. I loan with money so people can buy my house. I seller finance my houses to my buyers. I drive around town. The tallest buildings in the town have the names of banks on them. Why is that? Why can’t you be a bank? You don’t have to have billions or millions. You don’t need millions of dollars’ worth of profit to function. You only needed $50,000, $100,000, $300,000 or $400,000 a year. Most of the people who read this, if they made $150,000 a year, their whole life would go crazy different. When I’m walking through town and listening to everyone talk and go to my bankers, they said, “You have an alternative source of income or untraditional way of doing business.“ 

Passive Income: A lot of people haven’t given themselves a license to dream. They don’t feel like it’s possible for them to achieve financial freedom.

I’m going, “When did a neighbor loaning to his neighbor become untraditional, and a big insurance company loaning money out become the normal thing? When did stock become normal, loaning money and asking for a rate of return back become untraditional? Your media, propaganda, personnel have tried to train me that I am untraditional. You’re untraditional. You’ve got me given the money. I don’t even know where the hell you are, what you’re doing with it or what they’re going to do with it when you gave it to them. How stupid can it get?“  

We’ve talked about the three steps. Step two is control. What you’re describing is so many people are out of control as it relates to their money. They don’t control any of it. I’ve been looking at financial balance sheets, personal financial statements, Joey as well for many years. More people have a small impact on their actual bottom line. They look a lot like our government. People complain about our government’s budget. It’s like, “Did you know that 80% of something of the budget is fixed?“ They can’t do anything with it. It’s already allocated. They can’t go back and take back all of those. “I’ll use only 20%.“ That’s very true in most financial households across America. They control so little of their cashflows. They’re in a position where they are out of control as it relates to money. What they do with it is they do give the little that they have leftover to someone with the strategy of hope that is going to come back in the future with more money but with no certainty, no way to inspect whether or not it’s working. They just get a statement. 

To me, that’s an area where stress risk. All of that is constantly on the rise, which creates medical issues for all. We tell people like, “You got to get in control of your money.“ We have processes and strategies that we can employ our coaches to teach through. People don’t have access to dollars. If I give a quick win here, the number one thing that is preventing people from being financially free is access to cash. They don’t have it. The average American out there doesn’t have over $1,000 in a savings account. It’s sad. They may have $200,000 in a 401(k) and $75,000 equity in a home. If they had air conditioning to go out, they’d have to put it on the credit card because they don’t have the cash. If an opportunity to do a deal with a guy like you came along, they’d have to pass because they don’t have any money disposable to put at work that they could get to. 

Let me tell you a quick story, Mitch, about a guy we had on the show. This is in light of, “He who has the gold makes the rules.” You’ve heard the golden rule. That’s the financial gold rule. You’re talking about banks. In this case, the guy worked for a company. He had his 401(k). They allowed him to take a loan against the 401(k) to do virtually whatever he wanted with it. He was going to go invest in a piece of real estate. In the process, he moves to another employer. He finds his property, gets it under contract, goes to his 401(k) fiduciary and says, “By the way, I need a loan to buy this property.“ They say, “You don’t understand. We don’t do loans.“ 

He said, “The last employer I had, they gave me the opportunity to do a loan. I’m going to go buy this property, got under contract.“ “You don’t understand. We don’t do loans.“ It was at that moment I realized I don’t have access to my money any longer. It’s no longer my money because I’m playing by someone else’s rules and that one thing. He said he’s been on this road for financial freedom. That one thing set him back two years on his quest for financial freedom. Every day he drives by that house. He says that one was supposed to be mine but it wasn’t his because he didn’t own the gold. It was in somebody else’s hands the whole time. That’s the thing that Russ is talking about. We don’t have opportunities because we don’t have access to cash.  

The availability sometimes not even the cost of money. When you’re talking about your successful students, give us an example of one of your more successful students who’s come through and had the light bulb turned on in your presence.  

I would say that we’ve seen several. I’ll think of one that I heard him sharing something with a mutual friend of ours. We both know Mark Podolsky, The Land Geek very well. We were on a call with Mark. He played a Voxer message. I don’t know if you use Voxer but it’s a voice text app. The guy was bragging about the process that he had been on through using the coaching that we’ve had and then ultimately the coaching that Mark has taught. He had been working as a blue–collar guy. His wife was a nurse. They were growing their family. They had 2 or 3 kids and we‘re wanting to expand that family. He was trying to figure out, “How can I get more time with my family? How can I get my wife out of her day job so she can spend more time?”  

He came across our podcast and he started listening. In that process, he realized that he was putting his money in places he couldn’t control. He met up with one of our coaches. He went through the book, the same concept that Joey was teaching and was talking about that I shared with him, the Becoming Your Own Banker strategy. He started redeploying his capital into the systems where his cash did reside in a place that he could access. Along that same time, he learned about a strategy that he could go create a stream of income. It was through the land flipping. The reason he heard about that because we had interviewed Mark Podolsky on our podcast. We’d had several conversations and webinars on that strategy. He was like, “I got a little cash set aside. I invest in myself. That’s what you keep saying, “The best investment is the one in yourself.“  

He took this course on how to be a better land flipper. Through that timeframe, it’s almost a few years where he implemented that in his life and slowly what we like to say everybody’s got 9:00 to 5:00 but his 5:00 to 9:00, he was working this little strategy on the side, taking his cash, putting it into a system, then using his cash to go buy a raw land and flip it. He left a message. We got the pleasure to listen in on it. He said, “I’m excited to let you know this. My wife no longer has to work. We have enough income coming in from the stream that we built because of this program. She gets to stay home with our children. She gets to be the one that teaches them, that gets to answer their questions during the daytime. We don’t have to farm that out.“ While for some people that’s a small thing, for him, it was an amazing thing. It was a huge thing.  

He talked about how that’s changing the life and the direction of their family from this point forward. While there are super exciting stories of people who went out and created hundreds and hundreds of thousands of dollars of cashflow every year, a story like that one hits me because it’s so simple. It’s so real. It’s so tangible to a goal that we could have. It started with somebody realizing that where they were is not where they wanted to be. They recognize the investment in themselves by reaching out to our group, letting us help set up a process and a system, educating themselves from our podcast and show like yours, connecting with once they knew who they were as an individual to create a stream of income, what was the right string for them to go after and put in the work, seeing how the 3 or 4 hours a week turned into twenty hours a week but ultimately freed up 40 or 50 hours a week for his wife. Those are the kinds of things that fired me up. Those are the stories. We’ve got plenty of those but that’s the first one that comes to mind. 

What’s stopping people? What the limiting belief for a lot of people? For me, the first realization is if I want to become financially free, I got to get in a room where they’re talking about that. That one room might not be the strategy for me but I got to get in there. I’ll ask them where’s another room like this but different until I find my place. I’ve bounced around a lot of rooms. 

That’s incredibly important, Mitch. The people that you keep close to you, if they’re not pushing you in this direction, then there’s no chance of you pushing out of that yourself. You got to be surrounding yourself with people smarter than you or on that same journey just a few steps ahead of you. They don’t have to be the guru per se but somebody that’s ahead of you that can help you get your feet under you as far as whatever strategy you’re going to do. That’s why we built a whole community of people that this is all that they’re doing. We didn’t build it on Facebook or any of those other types of places on purpose. We don’t want you getting distracted with cat memes and political garbage. We want you to focus on financial freedom. Be surrounded by ideas, opportunities and other people that you can say, “These folks right here are in the same state as I am. Maybe we can go meet up.“  

Those are the type of things that we like to see happening. People are pushed further than they could by themselves by being surrounded. The other thing that is standing in people’s way is related to that. They haven’t given themselves the license to believe that it’s possible. They stay where they’re at because they feel like it’s risky to step into this entrepreneurship type of mindset. It’s safer to say in this W–2 job that I don’t love but I don’t want to take a risk. There’s something staying in most people’s way, at least it did for me is that they don’t have a gauge. They don’t even know where they are in relationship to this freedom that the three of us are talking about. We’ve experienced what that freedom looks like but the question that we get a lot is, “How do I stop trading time for money when I’m trading time for money?”  

They don’t even know how close they are. It reminds me when I was in college, I was on that five-year plan. For some, that was a short stretch but for some, that’s a much longer one. My partner over here is a valedictorian. He was smart. He was in and out of there in no time. I remember I was finishing up my fourth-year college. I went and sat down with the counselor. I had no idea how far I wasforbidden to graduate. To be honest, the more time I spent in college, the worst things were getting. I’ve gotten wiser and smarter on things that I could get into with nobody else knowing about. I remember sitting down with that counselor and saying, “How much more time do I have?“ They walked me through a process. Through that, we determined what I could do to get out. 

Passive Income: You need to surround yourself with people who are smarter than you or who are on the same journey just a few steps ahead of you.

She gave me a timeline. She said, “If you do A, B and C, you can be out in five quarters.“ That meant if I went to school that summer, I could be out by the following summer. I thought, “I can do a year. That’s not hard. I can do it.“ That’s what’s keeping most people from getting there. I’ll give a free link. It’s WealthWithoutWallStreet.com/scorecard. It’s a tool that we created that allows people to rot in real-time, know exactly how close they truly are to financial freedom. As a percentage, it will tell you, “Fill this thing out. It’s free. Am I 1%, 99% of the way there or somewhere in between?” Having that as a framework can motivate people. 

When Joey and I were doing this for ourselves, we realize how far we had to go. We decided that in order to get there quicker, we were going to start publishing our own passive income. Joey and I are investing in all sorts of different things and creating streams of income. That is the only things we’ll invest in as if they will bring back cashflow on a monthly basis. I don’t care if it’s going to appreciate 1,000%. I want it to also create cashflow. We started publishing that report. That report holds us accountable to those around us but also we get to measure from that report how close we are to financial freedom ourselves. That’s what gives people hope is that they see where the light is. 

For some people that tunnel is a little bit further. Maybe they were in year one. Maybe they’re like me, they’re in year 4 with 1 year to go and they didn’t know it. They could put their head down. For me, using my college example, I had a higher grade point average in that last year I had in any of the four years prior with much harder classes. I wouldn’t take the classes that were keeping me from getting closer. We see that too. We tell people that the form of financial freedom is easy but the work to accomplish it is hard. If the payoff is worth it, you’ll do it. 

I could talk to you forever. We could talk about these subjects forever. We’re going to probably have to start wrapping up here but I want you to address this thing. I’ve heard you talk about called the Infinite Banking concept. I want to make sure we get some conversation in on that. Tell me about that. 

Infinite Banking is the basis of the book, Becoming Your Own Banker by Nelson Nash. It is the bedrock. It’s the foundation. We think about the hierarchy of where we should put our money. We think about it in terms of you got to start at step 1, move to step 2, step 3. The foundational piece that affects all of the things we’ve been talking about is cash and having access to it. We’ve got to put our cash into a system that allows us access to it. We have to have it do all the things that we would want it to do rather than putting it into a savings account, checking account, something like that. It gives us no returns. It gives us no benefits. It’s accessible. 

Why don’t we have our cash doing more things also growing at a decent interest rate, 3% to 5%, having a tax-free benefit that we can access at any time? In addition, having it‘d be available to leverage against for deals. As we find opportunities, whether that’s to pay off a debt. We talk about that passive income must be greater than our monthly expenses. There are some people that start on a personal note and get rid of some of those monthly expenses that are holding them back, some super high-interest credit cards, car loans or something that may be staying in the way. They need to go ahead and leverage to take care of those things. 

Mitch, you mentioned all the largest buildings in your town had bank names on the top of them. That’s the same way here in Birmingham, Alabama. As I traveled through Atlanta on a trip with my son, it was the same way there too. What we’ve learned through that concept of Infinite Banking that banking is in order for us to purchase anything, money has to come from a reservoir and pass to that other person very quickly or nothing happens. The difference is where will our money reside? It’s got to reside somewhere where you allow it to reside. Most people don’t have access to cash. There are many reasons for that. One, they’ve been talked out of it by the Wall Street bunch and the advertisers for them to give it to them because they know what to do with it better. 

The other part is that money is expensive. Cash is expensive for most people. They see it, not earning anything, sitting in their checking account. They never have access to it because they see it taking a nap. They want to get it at work. What we learned through this infinite banking concept that we could build a system based upon a 200–year–old financial product called dividend-paying whole life insurance. When designed specifically for the purpose of cash, it operates the very similar way that a bank would. Meaning, it can take deposits. It can take withdrawals. It also can have loans. You deal in real estate. You were talking about going taking loans to buy your first 100 homes. We understand leverage and how leverage can be used for our benefit. 

Most people don’t understand how cash works because they’ve been borrowing money from other banks and paying the interest back forever. They listened to the “financial gurus“ of the world. They try to save cash. They want to buy everything in cash but they forget that money quits earning interest when they spend it. That’s violating one of the eight wonders of the world, which is compounding interest. If I asked you Mitch and anyone reading on this show, when would you ever want to stop compounding interest on your money? Your answer would be never. Every time we ever spent cash, we violated that principle. 

Unlike any other financial instrument that I know of, the tool that we put our cash in where Joey and I between us put almost $500,000 into these systems, our money will grow for the rest of our lives so for the lives of which these insurance contracts were built on. There’s no other financial tool that will do that, will guarantee to grow every single year regardless of markets. They’ve been doing that for hundreds of years. Here’s the trick. When I set it up that way, I also get access to that money. I’m not giving it up for the next 20 or 30 years. I get to use it. I don’t have a financial penalty box. Infinite Banking means my mind thinks infinitely about the opportunities in which I can use this cash to do.  

Will it be nice to pay interest to yourself? 

Wouldn’t it be nice to know that you could access a deal without having to go through all the hoops that most financial institutions make you do? Joey and I had been blessed to get involved in a lot of deals over the last years. Part of it is because we listen and we’re involved in these discussions. We’ve sat in those rooms that you’ve sat in but also because we’ve got seven figures or more access to cash. We don’t ever worry about borrowing against our cash values because they’re going to keep going up. I don’t have to worry about, “Is the market up? Is it down? Should I worry about selling? I wonder what the bank is going to say if I want to get a loan for this.” We just do the deal. We set up a system where we take all our cashflow from these deals. We funnel it back. It starts building on itself. 

Infinite Banking is not a revolutionary idea when you get down to the nuts and bolts of it. For most people, it’s contrary to what they’ve been taught. That’s why we preach so much about meeting with one of our coaches, going through, understanding how much control do you have over the banking function in your life and how much control would you want to have? If you had a system that you could put money into that would grow for the rest of your life and you can access tax-free at any point in time, how much money would you want to put in a system like that? Those are the discussions we get into. Our mentor used to teach at a ten-hour workshop on this. Clearly, we’re not going to do justice in a 5 or 10–minute conversation we have with you. It is the foundational tool that we have found that helps add to everything we’re doing. It’s not the thing but it is a pathway to the things. 

I wish we had that ten-hour because it’d be worth to listen. I want you to go to 1000Houses.com/nowallstreet. Get over there. Do you have any free things to give away? You’ve got that how close are you to financial freedom calculator. 

That scorecard, when they go to your link, they get access to that link. That will give them that free tool. Also, it will give them access to our community. We built a community that has over 4,000 members in it. That community is free of charge to get in. There are things in there, courses, groups and stuff like that you may want to join that cost extra. You can be surrounded by a lot of people, hear a lot of discussions and get access to the content that we are putting out daily to help reinforce some of these things that we talked about. 

Joey, Russ, it’s evergreen. If you’ve got things you want to add that’s passing or whatever you need to take out, have your people call my people. We’ll keep it up–to–date. If you have any dates, speaking engagements or any place you want to let people know about, you can post them over there. I’d like to thank you for coming on. I can talk with you two forever. Mostly I could watch you poke at each other forever. It’s what the whole deal is like. I get it. You got talent. Is there anything you want to say, Joey, to the new person out there whose light bulb might be going off? 

Passive Income: Infinite Banking is not a revolutionary idea when you get down to the nuts and bolts of it. But it’s contrary to what most people have been taught.

Have courage and step out. Having the freedom on the other side of that unknown is so worth it. Don’t sell yourself short. In fact, one of the things we always say is once you’ve got your cash in a place that you can own and control, the very first place you should do in any investment is in yourself, your mindset. Mitch, we’ve heard you over the years talk about mindset in your book and other places. It is so critical. That mindset is stuck. It’s a ceiling that you cannot get past. Give yourself the license to be and step out in courage. Mitch, it’s always an incredible pleasure to be on with you and spend time with you as well. 

Thank you. It’s been great having both of you on. I’d like to thank each and every one of you for stopping by to get you some Russ and Joey. Check out LiveComm.com. We’d like to thank them for being a sponsor. Find out why I have an average of four days on the market with my houses for sale and I use no signs. I don’t even put a sign in the front yard anymore. It took me a while to get there. I can show you how I got there. I can tell you exactly why it works. It’s all because of that little technology. It’s about lead capture, mass texting, sales and pull it for it. There you go. We’re out of here. Bye, Joey and Russ. 

See you, Mitch. 

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