Healthy Business
May 4, 2022

Infinite Banking Explained - How To Buy Real Estate By Becoming Your Own Bank With Jim Oliver

Infinite Banking can sometimes be a concept that's hard to understand, but Jim Oliver unpacks how it works and why you should utilize it.

Jim Oliver went from being a poor homeless kid, to becoming a wealthy successful business owner. Two keys to his success and wealth stemmed from Real Estate and Infinite Banking. @createtailwind182

Jim first learned about infinite banking from R Nelson Nash, who prayed to God to show him a way out of debt. He discovered the biblical principles of infinite banking  and later wrote a book called "Becoming Your Own Banker."

Jim Oliver has used the principles of Infinite Banking to create more cash flow and invest in more real estate. This has generated him more and more money over the years. Jim wrote a book called "Make Bank Without The Bank" where he explains infinite banking and how to use it as a great investment strategy for real estate to generate wealth.

While infinite banking can seem complicated to understand at first, the method is tried and true to help businessmen and women create more wealth. Join Brett and Jim as they explain what Infinite Banking is, how Infinite Banking works, and how you can use it to build your real estate business.



This is a must-read for every highly successful entrepreneur.

Infinite Banking Explained - How To Buy Real Estate by Becoming Your Own Bank

Why let the bank take our money and then go you use it and make money? Because if we have money loaned at a bank and we have money deposited at the bank then they're they're making over 2,000% more than us from us. Infinite banking is seceding from the banking system. It's no different than seller finance. It's bringing the finance part of banking to the you and me level.

What's going on this Brett Snodgrass with another episode of The Iron Deep Podcast. Got Jim Oliver on the show with me. What's going on, Jim?

Hey Brett, I'm excited to be here. Thanks for having me on the show, man.

Yeah man, excited. I was just on your podcast, so make sure you guys check that out. I just was on Jim's show and Jim, super excited about the topic today. Obviously a lot of business owners Real Estate Investors on this particular podcast, men of Faith. And you know, we're going to talk about a topic that honestly, I've talked about before today, but I'm still confused. And a confused person doesn't buy. Now I have bought into this, and I do have Infinite Banking and the IBC, and I've bought into it, but still... I'm still confused. But I just I took other experts word for it um but I but I still am confused we're going to talk about infinite banking concept and how to really build independence of freedom and Financial Freedom uh through that before I really talk about that though Jim I just want to talk about your personal story man because you got quite quite the story Foster system working in a CET Factor casket Factory things like that man let's just let's hear about Jim

Okay so I have uh well I had five uh natural siblings and I was a middle child and I was given up for adoption at Birth uh my mom uh my birth mother said that she was raped and my her husband said that she had an affair so either way he said if you bring that baby home I'll kill it okay so um I didn't know this until I was in my 20s I didn't know about the whole story until I was in my 20s and somebody reached out to me and said hey I'm your I'm your brother and so then I um long story short I went into the Foster system bounced around a lot and the Foster system and finally got adopted but I got adopted into a family that should never have adopted child and was very abusive a lot of alcohol abuse and other things and um and it taught me a lot and these people really lived in poverty in fact there was a point in time where we slept behind the Moose Lodge we were homeless um my adopted mother and I and and and I would and I would look up and I would see all these people that had money and have um you know comfortable home and and I thought what am I what you know why why why is this happening to me right and so my mom she worked in a in a casket Factory and so when I was 13 she said you're going to work in the casket Factory um during the summer keep you out of trouble because I was definitely in trouble BR all the time so um so I was swinging a hammer at the casket Factory to to take the handles that kind of mold the handles uh from that would go on the side of a cast and then they would somebody else would plate them and you know it was this whole process right M McIntyre manufacturing was the name of the casket company but what I noticed is I noticed that Dwayne McIntyre Who had who adopted by the way just to make a little twist because you know um God likes to make these things really twist is he had adopted four kids they all lived in Palace veres they they were older so they went to Pepperdine University which is a you know a PR private you know what I considered very exclusive you know University and and and I thought man those kids are lucky they get to live in Palace veres and I know if you're from Palace veres I'm sure it's not perfect but when you live in Englewood it seems like Palace ver is perfect big houses you can see the ocean anyway so I'm working in this casket Factory and I'm like I don't know if I can do it I don't know if I can swing a hammer all day long like this and I watched the owner he'd come in for an hour maybe one day maybe not the next day and then that that same summer I'm walking down the street by a friend of mine's house in the inner city of Los Angeles and I see this guy pulling weeds in one of the you know one of the rundown houses there and I look down and who is it it's Dwayne McIntyre and I'd like to tell you I was very respectful and said Mr McIntyre I mean that that would just be a lie uh you know I think I probably said what are you doing here and uh he said he said I own this house I said why would you own this house you live in Palace Verdes I mean you know own house is up there you know that's in my 13-year-old brain so what I tell people Brett is I learned everything I needed to know God showed me everything I needed to know to be successful be financially independent to be financially free when I was 13 years old wow but I didn't have God in my life then either so I didn't go to church I didn't I'm not sure I believed in God if I did I was daring him to kill me like I was so reckless as a child and as a as a teenager I was saying look if there is a God, here, prove it to me. You know? And so it wasn't until 24 that it it changed my life when somebody knocked on the door some guy named Wall-E by the way Brett and there was no Wally's gonna come into my house number one no offense to anybody out there with the name Wall-E but and nobody was going to come into my house and read the Bible right that was not going to happen but that day I opened the door he came in we started reading John and that was the beginning of my journey wow but I was obsessed with money as a kid because I didn't have any stood in line for government cheese I've I've I've been hungry you know I I have all the tricks in the world how to sleep when you're hungry you know intermittent fasting to me like kind of freaks me out a little bit because I'm like no I don't like that feeling yeah and uh that was my life right I do it anyway by the way I do it anyway but but if I get hungry I sometimes go okay today I'm not fasting but um um I was fascinated with money because I thought money was your Worth right I thought that you have a net worth I didn't have any money so I must be worth less and and and so I was obsessed with money but I was obsessed with money for the wrong reason until I understood why God wanted me to have money right because money gives you choices choices give you freedom I want you you you want to have as much money as you possibly can have because then you could impact the the kingdom in a bigger way God wanted me to have this knowledge so that I could share it with other people and that's ultimately how I got to where I am now awesome awesome well thanks again uh you know for sharing your story uh I know and just being raw and vulnerable about it um can't imagine uh you know the life that that you've lived uh you know with the Foster system and uh just just an extreme poverty and I'm sure some of our guests can relate to that so uh just to see where you've came from and and where you're going now and you founded a an organization in 1988 called Creative Financial Services and um obviously you know can you talk about that so you created this this name which is really you know I I love it I'm like man I want to I want to hear more about that Creative Financial Services but this was in 1988 yeah so talk so yeah so I mean everything that I had learned about money Brett um which was all wrong by the way but I learned that hey you go to you become a financial planner you help other people plan for retirement a concept that is not in the Bible by the way and um you teach them to build up a bunch of money and then someday turn off that spet of uh exchanging time for money and then you uh live off of that lump sum for the rest of your life and you hope you don't run out of money in the end and that was the system or you die you got to die yeah hope you die hey we're getting low on money um how you feeling I'm feeling well no I'm feeling too good so yeah yeah you know that's um so I learned all the wrong things I didn't understand money as a kid so I listen to the noise I listen to the majority the majority's never been right about anything but I listened so I went and I studied Wall Street and I did all of this for 15 years I had $700 million under under management I was charging 1% I was doing pretty well right but I got this report one day Brett and it said hey your clients got 99.38% over this period of time and I thought wait a minute I got money in that and using the rule of 72 that I mean that that's not right I would have doubled my money over that period it's not grown very much so I went back and I analyzed that after fees expenses taxes everything I didn't even take into an account in account of uh inflation and it was a 4% rate of return just a little bit over 4 per. I thought wait a minute my clients are going to make it it's not gonna happen what am I gonna do and and and I and I thought well okay I have to study how my most successful clients how they did it how they became wealthy and it came down to two things Brett real estate and businesses that's it there was no secret sauce it was consistent real estate and businesses and if you invest in real estate you're in the real estate business right so was you got to be in your own business you got to be an entrepreneur but I thought how am I gonna make any money doing that like I mean I'm gonna tell all these people take their money out of Wall Street I'm getting 1% to manage their money right which I was just a financial babysitter that's all I was well paid but but that's it so as God has done in my life he introduces me to a man R Nelson Nash and R Nelson Nash is the Godfather he didn't invent infinite banking God did that but he discovered it and he discovered it when he owed over $500,000 in real estate paying 23% back in the early 80s and on his knees at 3: am where we get a lot of our good ideas he asked God to show him a way out of this debt and his brother was in the insurance business and it sold them these insurance policies and the loan rate then was 8% mhm immediately changed Nelson's life and he started to study this and he never monetized it he never marketed it he never did any of that stuff he wrote a book about it called becoming your own Banker unlocking the infinite banking concept it's the best book on this subject that you can read it's 92 Pages it's through the lens of the Bible Nelson would do a 10-hour course which I went to and halfway between the in the course I thought this guy is either a Shyer because I'm waiting for him to sell me something he's nuts or he's brilliant and I sure wasn't sure even after 10 hours which one it was but he never asked me to buy anything but he stood up and he said he held his Bible up and he said everything that I'm going to talk to you about today is through the lens of this book if you don't know this book come see me after the seminar and we'll talk everything about infinite banking is biblical and so it was like it was just mind blowing and I and I bugged him every chance I could asked him every question I could about infinite banking because I wanted to be the expert I wanted to know more about this subject than anyone else so so I'm sorry that's a long answer I'm interested I'm interested I just want to make sure I got that so the name of that book I want to I want to write down that book um was called be your own bank right becoming your own Banker unlocking the infinite banking concept anybody on here that joins my community takes a course it's the honor System of course I'm not going to like you know there's no completion certificate just take one course okay it's free okay uh tell me you took the course send me your address and I will send you that book for free no shipping nothing I'll pay for everything and you no obligation you don't have to ever talk to me again awes um I just want to share this information with the audience because it's that important I love that thank you and I know you have a book that actually just came out right I do yep make make bank without the bank make bank without the bank awesome man so make sure you know we get that go to uh to Jim's what what is the website creating Tailwind create create Tailwind all one awesome and you know BR just real quick the reason it's Create Tailwind is we're fighting a headwind right? I mean you your book talks about like the like we the noise and and the misinformation right and that that internal struggle right same way in money we're taught that we're too dumb to manage our money to control our money we're not smart enough to go buy real estate to go start businesses to do these things give your money to somebody smarter than you I always wonder that you know like you we have to hire people to manage it and they don't do that good a job because I'm the same way I mean I had a financial adviser and I think after five years I was like and he kept saying oh you're making 10% 10% 10% but then I said after all your fees after everything hey can you break it down what am I making after that and it was yeah like maybe 2% 3% I was like that sucks I'm out yeah I can do I can do better than that so because they tell you what the average rate of return is in Wall Street right and so let me give you a quick example you have $100,000 the first year you get a 100% rate return that's $200,000 the next year though you lose 50% now you're back to 100,000 but guess what your average rated return is 25% because you went up 100 you went down 50 which means you went up 50 more than you went down you divide that for the two years and it's 25% yeah but you didn't make any money if you ask your financial planner hey what's my compound annual growth rate there're they'll they'll be steam come out of their ears they'll tilt because they're like oh you you want to know what you're actually making wait a minute I don't want let me tell you the uh the sectors that are really hot right now right yeah yes so you really got into this this uh infinite banking concept uh created you know create a financial services out of this and you're talking about infinite Banking and you know as I mentioned I have a few of these policies that I've created because I trust people and and I do things with them uh I over um pay them right and I'm able to borrow from them um but when I read about your your about you really Building Wealth really building independent freedom from these Concepts that's where I get lost a little bit buying businesses out of it um you know and I'm pretty early into the game I think you know I first started this maybe 40 you know 40 years ago something like that so can you kind of talk about the benefits of infinite banking um to to our audience out there yeah just kind of give us that absolutely okay so I'm gonna think about this like a Ledger okay and I have a video that I'd be happy to share with with you that goes through this but um I just reproduced it but it's like a ledger and I'm gonna put the assets on the wrong side I'm gonna put the assets on the right but just on the left hand side is our money pool okay and it's this insurance policy and it's not the type of insurance policy that you would go down and get from your local insurance guy who's gonna write you uh death benefit right it's it's designed for cash value it's the way a bank would buy bowy bank owned life insurance or Corporation would design would buy and design kley corporate owned life insurance because they know what we know right is that this tax shelter where this money once it's once once it goes in there it's never taxed again you have this cash value it's designed for cash value we buy it from a mutual insurance company and the reason is is that policy owners own Mutual insurance companies 100% so as an owner of that company I have a contractual right to take an interest only loan somewhere between four and 5% right now I just did one actually yeah it was like 4.8 or something like that of the insurance company's money not your money Brett that that money did not come out of your account your money stayed in there and grows guaranteed every single day tax invisible and now you have the in insurance company's money so now I have OPM other people's money and I have use and control which is what a bank wants with money and I'm going to go buy real estate okay I'm going to go buy a cash flowing asset now when I when I buy real estate that I have the asset growing in value while they're printing more money and de basing our mon our money and I have cash flow when that cash flow comes back in I don't need that for my groceries so guess what I'm going to do I'm going to redeploy it and buy more real estate okay so I'm going to clear it through my insurance contract because I can pay remember it's interest only so that what that loan means is that I take out the policy today and I take a loan tomorrow which I can do I I don't have to pay anything for one year and then I pay 4% or 4.8 like you're paying in one year so that means I have the use of that money from the insurance company and my only obligation is to pay them the interest at the end of the year so I'm going to take their money and can I make more than 4.85% or whatever you're paying right absolutely right you know the techniques you know how to do it and you're G to make you know I mean look I try to I tell people at my goal is at least 25% cash on cash I know a lot of guys in the real estate business they say Jim that's too low I'm making 40% I'm making this I'm making this and I'm like I know but then there's the brand new guy that tells me that 25% is too much so I try to like like I try to balance it right and it makes the math easy and BR I went to public school so I like easy math so um so you have this system of policies because what will happen Brett if you keep on buying insurance with the cash value as collateral and you use the insurance company's money to go buy real estate that cash flow is going to get to where it won't fit in the policy that you have so then you go have you have to go buy another one and another one and another one just like branches of a bank but the it's it's a cash flow system it's not an investment it's not um it's not uh a Buy and Hold okay it's like the real estate business but what everybody wants to talk about is the insurance contract well how much am I making in the insurance contract no no no it's like code generation I need the insurance contract so I can use the insurance company's money to go buy real estate and in the beginning as you know when I put in a dollar the first year I don't have that whole dollar to go put into real estate right but by year 10 I put in a dollar I have a150 to go put into real estate wow right we always want to think long-term the Bible says um a good it says a good man leaves an inheritance but a good person leaves an inheritance right and and so we want to thank three generations ahead three generations ahead you have four kids I mean think if your kids grandkids great grandkids never have to walk into a bank and ask for a loan ever in their lives how much more money would be inside the family and the wealth that would be in the family so what most people do is they say okay I'm build this insurance contract I'm going to kind of build it small and I'm going to use it to buy cars and I'll recapture all the interest I ever was going to um pay in the cars but no I'm saying no go buy cash flowing assets put as much money into that insurance contract as you can I mean I have people that start with millions of dollars I have people that build from $20,000 to millions of dollars buying real estate that people change their lives buying real estate and doing infinite banking I'm sorry I went off on another rant there but questions about what I just said yeah no it's really good so um I'm just gonna maybe just a couple more questions just for my own like how many policies does like do you have like I think I have maybe like three but you talk about you know getting more policies um because maybe there's a cap of how much money you can you can put in there and you know but you also still have to pay the insurance premium so you have to make sure that you can pay these premiums right um each year my tenants pay that my my tenants pay that from the cash flow but I have 28 policies wow okay and when Nelson uh graduated from this world in 2019 he had uh at one point time he had 48 and and so well do I have 28 policies on on me no Brett I don't but if you and I did a real estate deal I'm buying a policy on you because you're 43 I'm 58 I like the numbers that you're your cash value is going to generate better than mine but does that mean I'm too old to do infinite banking no I buy policies every time somebody will give one to me I mean when I say give one to me they'll approve me um and it's one of the reasons I'm doing the intermittent fasting I'm trying to get down to Preferred I'm I'm actually my weight is at preferred right now right at it so I want to get 10 pounds lighter and then then I'll go reapply for preferred but I have insurance on business partners family members anybody that I have insurable interest on and I don't pay the premium my clients do my customers do I've started over 30 I've either started bought into bought completely 30 businesses using this concept and the first thing that I do is my key people I put insurance on them I put insurance on them I'm the owner I'm the beneficiary they're the insured now my company is more secure so I have policies on every key person in my life and everybody that I have insurable interest on and every time I add somebody then I buy a policy on them um I know that might be confusing because I just gave you a lot of information there so as far as the families I mean you got start off with those key people like do you buy policies for children spouse um is that where you people is that where it starts you know because I don't haven't bought any policies like on my kids and anything like that so yeah so you know look um God for if you walked outside and got hit by a truck we want your family to be secure taken care of they would get a tax-free death benefit right right and um now you smart you own assets so it's not like you're working a 9 to 5 and you you're going to stop you stop existing exchanging that time for money your assets are still going to provide income to your family and good for you right but that death benefit is their security as well and so they take that money they put it in more assets to because their expenses will go up if you're not here they're going to have to you know maybe it's Child Care maybe it's other things so um that's that's the thing that I love about this is it has a legacy rate of return too because we're all going to graduate from this world sooner or later and when we do we want to make sure that we can pass more money down to our heirs instead of somebody else or instead of just not and so um infinite banking is seceding from the banking system it's no different than seller finance it's bringing the finance part of banking to the UN me level just like Seller Finance which I know you love and I love as well uh because why let the bank take our money and then go use it and make money by the way from us because if we have money loaned at a bank and we have money deposit at the make and they're they're making over 2,000% more than us from us right for sure for sure and the the one key thing is that even when you um you know use the money or borrow the cash that the inside of your account the money can still increase in interest right absolutely the money grows every single day guaranteed right and the thing is that's why we use the whole life policy because of the guarantees right universal life that that doesn't have those guarantees it's sexier you know that has great projections but I want guarantee I do not want failure to be an option because you know where the rate of return is going to come from me it's in the real estate and the businesses because I know how to generate generate way more return there than any insurance policy could give me the insurance policy is not an investment it is a place to it's my money pool right yeah I love it I love it that's awesome Jim well thank you so much Jim I'm gonna probably use the same question that you use on your particular show um which is what is the best advice that you were ever given best advice I was ever given is when you read take notes and write questions and whether it's reading your Bible um you know I was never a guy that could I I didn't have good enough like uh penmanship to write in my Bible so I I started getting a little Journal one of those little cheap journals and I would just write and I would write questions and so then when I when I was knew in my walk I would say hey I I don't understand this in Matthew and I didn't understand this in job and I I really don't understand this you know like the Old Testament and and and and so it was read and write down the questions and then ask somebody the questions and if it's if it's not the Bible and you can ask somebody who wrote it what they meant by that then send them an email send them a personal uh uh handwritten card I promise you most of them because I've done this for a long time most of them will answer you because they never get that's the best because they get that no they're like wow that's a great question um let me help you with that now love it I I wrote that down that's awesome man um so last question is uh again you you ask this on your show but if God came down from heaven gave you any book uh that was not the Bible what would what would that be for you mine's a little different okay it's a little weird but it's Jonathan Livingston Seagull and this was a book that I was uh actually forced to read but thank goodness I did is Jonathan Livingston Seagull is a seagull and seagulls have a pretty boring life they are taught to be one thing right is they that's all they do but he wanted to do like tricks and he wanted he wanted to be more and that book taught me that you could be more you just have to think different than the than the herb so I read that book when I was like 15 16 years old and it impacted me because I thought I don't have to stay in poverty I don't have to stay in scarcity now I still didn't understand that abundance comes from God I didn't get that till I was 24 okay so I needed to learn God needed to mold me I needed to be in the valley but that book made me think I can be different and then when I became a Christian and I thought man I'm never going to have the sweater vest and you know like um have my you know pure mind like but but I grew up in California have you ever seen these girls and bikinis I mean what about I mean pure mind seriously uh you know like all of that I thought I'm never going to be able to fit in till I read the Bible and read the Bible and read the Bible and I thought oh wait a minute this is exactly I'm I'm the target audience I'm the broken guy that's right I'm I'm I'm who God uses you know like uh and so that's... those are the those are the that's the book yeah I love it I love it I feel like I need to go buy a sweater vest right now like you've mentioned that a couple times you know the normal Christian wears a sweater vest so anyways Chandler Bing over here um all right this is a wrap Jim thanks so much for being on the podcast today make sure you guys go check out Jim's website again Create Tailwind dot com right absolutely you sign up for Jim's course take the take the course and uh send him a message he will send you that free book and uh congratulations on your book Jim wish you all the best you too congratulations on your book thank you so much for having me and Godspeed