The Science of Flipping
How to Stop Relying on Banks, Cut Taxes, and Control Your Wealth Like the Rich | Jayson Lowe
Fri, 28 Feb 2025
Get Your FREE Banker's Vault Kit – Text BANK to 813-793-7921 to receive a free box of resources, including Jayson’s book Becoming Your Own Banker and access to exclusive financial tools. -- In this episode, I sit down with Jayson Lowe of Ascendant Financial to uncover a wealth-building strategy that the rich have been using for decades—the Infinite Banking Concept (IBC). We break down how banks are profiting off your money and why real estate investors and entrepreneurs should stop relying on traditional lenders. Jayson explains how you can borrow money at 0% interest, invest on your own terms, and keep your money growing tax-free—all by using dividend-paying whole life insurance. We dive into real-life examples, including how I personally use this strategy to fund deals and even buy my car without paying interest to a bank. If you're tired of being at the mercy of lenders and want to take full control of your finances, this episode is a must-listen! -- Thank you to 'Empowered Investor Live' for sponsoring today's episode! Take control of your financial future with top real estate experts, builders, lenders, and investors. Get the insider strategies to grow your wealth through income property investing. Network, learn, and level up! Join Us at Empowered Investor Live – April 4-6, 2025, in Irvine, CA! Spots are limited – grab your ticket now! 👉 Get Tickets -- About Jayson: Meet Jayson Lowe, founder of Ascendant Financial and champion of the Infinite Banking Concept. For over 15 years, he's been showing people how to break free from traditional banking systems and build wealth on their own terms. When he's not revolutionizing clients' financial futures, Jayson is sharing his insights as an author, speaker, and mentor by taking complex business and money concepts and turning them into practical strategies that help real people create lasting prosperity without depending on banks or unpredictable markets. Learn More About Infinite Banking – Visit Ascendant Financial to discover how to take control of your money, cut out banks, and build long-term wealth. Connect with Jayson: ● Instagram: https://www.instagram.com/thejaysonlowe/ ● TikTok: https://www.tiktok.com/@learnwithjayson ● Linkedin: https://www.linkedin.com/in/jayson-lowe-11056620/ ● Facebook: https://www.facebook.com/thebankernextdoor -- About Justin: After investing in real estate for over 17 years and almost 3000 deals done, Justin has created a business that generates 7 figures in active income through wholesaling and fix and flipping as well as accumulating millions of dollars of rental properties including 5 apartment buildings, 50+ single family homes, and 1 storage facility Justins longevity in real estate is due to his ability to look around the corners, adapt to changing markets, perfecting Raising private capital, and focusing on lead generation which allows him to not just wholesale and fix & flip, but also accumulate wealth through long term holds. His success in real estate led him to start The Entrepreneur DNA podcast and The Science Of Flipping podcast and education company, where he has coached and mentored thousands of aspiring and active investors over the last decade. He is a nationally recognized speaker and is on a mission to educate as many people as possible on becoming a successful dynamic real estate investor.
Chapter 1: What is the Infinite Banking Concept?
When you implement the infinite banking concept and you do it the way that my late mentor intended and you make it ridiculously simple and you don't sensationalize it, you become all four characters in the financial play. You're the depositor. You pay premium. You're the borrower. You're the one accessing policy loans. You're the banker because you control the repayment schedule.
That's money on demand on your terms. You're the banker. You're the bank owner because when the insurance company produces a divisible surplus called positive net income, that divisible surplus must be distributed to the owners of the company. And in this case, we're dealing with a mutual life insurance company. There are no stockholders to participate in that.
So when you become all four characters in the financial play, what a peaceful, stress-free way of life it is financially. Yeah. And it's not Nelson. He never said, hey, I want you to be the bank. He didn't want anybody to become a bank in the conventional sense of the word. He wants you to control the banking function as it relates to your needs because someone must do that.
What is up, the Science of Flipping family? I am back with another incredible guest. For us real estate investors, what Jason Lowe has to say on this episode is going to be incredibly impactful because you need to control your money, you need to know how to borrow money, and you need to know how to invest your money. Best of all, you need to understand how to not pay taxes.
Chapter 2: How can I control my money like the wealthy?
Jason Lowe, Ascendant Financial, is here with us. What is up, buddy?
How are you doing, Justin? It's great to be with you.
Hell yeah. Excited to have you. As a real estate investor for 18 years and making a ton of money and understanding taxes and understanding how to borrow money the right way and how to invest my money. I mean, this is such a poignant episode. I'm super excited about getting rocking and rolling with you. So speaking about what Ascendant Financial does as a whole, let's start there.
What you do, what Ascendant does, what is the totality of what you guys do? And then I'm going to bring it granular into the trenches.
That's a great question. You know, we've been working with, uh, people across America, people across Canada since 2008. So we've been, you've been a real estate investor the past 18 years. Did I hear that right?
Yeah.
$5.
Can I get $5? Okay, there you go. You just got it. But through the infinite banking concept, that's what we've been specializing in all this time. And real estate investors love it because they get to control how they borrow capital, how they invest it. They get to repay loans on their terms, not someone else's. They get their money working for them instead of the banks.
The banks and the government are the last two entities that real estate investors want their money working for.
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Chapter 3: Why should real estate investors avoid traditional banks?
And, but the fundamental truth is, is that your money must reside somewhere. And through the infinite banking concept, there's no better place to have it reside than in the form of dividend paying life insurance contracts, where you essentially become the banker as it relates to your needs. You get ready access money on demand.
The real estate investors, Justin, that I work with, they owe a lot of money. And so whether they're flipping or whether they're buying multifamily, they're in a long-term buy and hold scenario, they owe a lot of money. And when a ready access opportunity of a high caliber shows up, The real estate investor either has to joint venture to raise capital to take advantage of it. That takes time.
But if you can pounce on high caliber opportunities when they track you down, then that creates a significant advantage for you in building your wealth. And you don't have to have money flow through the banking system, which is exactly what's been creating the financial mess lately. That we find ourselves in, just look no further than the central banking system. It's a horrible mess. Yeah.
And the people that I talk to, they say, you know, I feel like there's something fundamentally wrong out there financially. Sure. I just can't quite put my finger on it. Sure.
That's courtesy of the central banks. How do you like that unicorn bandaid my daughter put on me? Anyways, I digress for all the, you guys listening to that. So what is the better play?
Well, the better play is to pay premium into high cash value dividend paying life insurance contracts. You become a co-owner of the life insurance company the moment that you initiate a contract. You've got a guaranteed death benefit, which matters.
We've had to deliver a disproportionate number of death benefit claims to families, and we've never had a grieving family say that they had hoped the check was for less or that it was taxable. And you get contractually guaranteed daily buildup of cash value that you can borrow against without interrupting any of its ongoing compounding on demand on your terms.
So if you know that there's a place that your money can reside, where you can contribute almost unlimited sums, you pay no tax on the daily buildup, zero tax. You get ready access capital on demand on your terms. You pay no tax on the death benefit proceeds. You've got no government hovering over that asset with a giant knife and fork waiting to consume it.
How much of your capital do you not want residing there?
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Chapter 4: What are the benefits of using life insurance for investments?
And so what I'd also say, like, I'll bring it down to the super lame insurance. Maybe you're not acquiring assets to hold. Like you could do this with anything. You didn't buy a car. Oh, yeah. Like the car interest rates right now, I just bought a brand new Range Rover, right? I got, I guess, a good interest rate for what the economy is offering right now, right? Yeah. So I got like 6% on a car.
I was like, I don't love it. But, you know, I had 4% on my Range Rover before that. But I say that to just say like... Well, because I used my life insurance policy, I have no interest rate. I have to pay myself back. Now, I can pay myself back with an interest rate and be a smart investor to, hey, if I'm borrowing money, I should pay the money. But... I don't have to.
And my money is still compounding. That's the point you're trying to drive home right there, Jason. I borrowed it and it's still compounding.
Well, and I would ask you, and you can attest to this. We didn't discuss this before the show, but I'll just ask you, we'll just jam on this for a second. Yeah. So just name one institution that uses compound interest.
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Invest smarter, grow faster, transform your future. Life insurance.
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Chapter 5: How to borrow against your insurance policy?
Life insurance companies. Okay. That's the certainly one institution. Um, any other that you can think of? Banks. Banks. That's the most frequent response that we get. Banks don't use compound interest. They either charge it or they pay it. So they're the only way for your money to compound is for it to sit still.
And so the banks want your capital and they want it for a long time because they get to obviously. They flip it. They, they, they, thank you. You took the word right out of my mouth, which aligns perfectly with the show. That's right. Banks, banks are in the flipping business, but they're not dealing with tenants at three o'clock in the morning with a busted water here. That's right.
They're flipping capital. We're doing the same thing. And if I just bring it right down to the you and me level. Fundamental truth, our money must reside somewhere. Can you and I agree on that? Of course, yeah. And so what better place to have it reside than within the attributes of what we're describing?
And when you pay that premium into that policy and it produces cash value and you can borrow against it on demand... Does that take away any of your options as a real estate investor?
It amplifies your options. It totally does. I'm even thinking about like right now we just bought a fix and flip and I think we got 11% loan on this fix and flip. Now hard money is a very common thing for all of us on here. Uh, If you just go and take that same amount of money, because we run our economics.
Basically, we don't want to flip a property without making 50 grand net after cost fees, blah, blah, blah.
Okay.
But we underwrite it for six months and six months of 11% interest on a, essentially we're paying two grand a month. So times six is 12 grand. I just turned a $50,000 profit into a $62,000 profit because I borrowed the money from myself. So I want everyone listening here, you know, a lot of people here, like I don't have money or I don't know, well, do you have a savings account?
Do you have a self-directed IRA? Or, you know, cause self-directed IRA, sure, you don't pay interest unless you take your money out before the age that you can not pay interest, right? And then you take your profits out. In this case, like for me, because I'm so familiar with it, like you can take your money out monthly. Every month that you put money in, you can take your money back out, right?
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Chapter 6: What is the impact of compounding interest in investing?
Can I share an example with you that tends to really resonate? Yeah, of course. So when I first began my journey with the infinite banking concept, so this was back in July of 2008, you could still get 40 year amortizations on mortgages. I was an active real estate investor in both the United States and Canada. And up in Canada, you could get a 40-year amortization schedule on a mortgage.
So we bought a residence. The mortgage was about $426,000. And we thought, wow, this is terrific. Interest rates were below 3%. 40-year amortization schedule. We're standing on top of the world. That was in April of that year. I got introduced to this concept in July of that year. We got rid of the conventional bank seven years later. So 33 years ahead of schedule.
And we did it in a ridiculously simple way. We paid premium into high cash value, dividend paying life insurance policies on my wife and I, and then our four kids. We borrowed against that ever increasing accumulation, which can't go backward, by the way. So you have several policies. There hasn't been a single day where your cash value has gone backward.
We borrow against that accumulation without interrupting its daily growth. We pay off the conventional bank, but we now have a policy loan balance, but we don't have any debt owed in the form of a mortgage.
So the payment that we would have otherwise been contractually bound to continue sending to someone else's bank, I say that again, someone else's bank for the remaining 33 years of that 40-year amortization schedule, We're changing the process of who's getting the payments and who's getting the money. The first person I called was this gentleman here, my late mentor, the late R. Nelson Nash.
He wrote the bestselling book titled Becoming Your Own Banker. This book is self-published. It sold more than 575,000 copies for a reason. Wow.
process works so he developed it pioneered it engineered the process he was the first person i called and given that he lived and worked in birmingham he had this uh you know southern drawl and i called him i said no i said nelson you're not going to believe it i got rid of the conventional bank 33 years ahead of schedule and he said take a seat boy and i sat down and he said uh
you wanna be an honest banker, don't you? I said, yes, sir, I do. He said, well, I need you to finish the original loan schedule. And I said, what do you mean? He said, you've gotta change the process of who's getting the remaining 33 years of payments. Otherwise your expenses are gonna rise to find that new surplus cashflow, aren't they? I said, yeah. And he said, well, get to work.
And we've been continually replenishing our family's money pool But here's the thing that people need to understand. You used the example earlier about a car. Such a great example. You can either pay cash for it, lease it, finance it, or steal it. Most people don't do that. Probably not going to steal it. Or auction it.
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Chapter 7: How can I transform my financial strategy?
Yeah. It's such a tool that like you got to really, I mean, what you even said about your personal home, right? And what you're talking about is really what I believe in is be the best banker. just because you're not paying Bank of America, you should be paying yourself back, right? Now, how do you make an argument?
Give yourself a little interest rate because the thing that people probably don't know, so I want you to clarify it and I know it, but- Sure. When your money is out, your guaranteed interest is just a lower amount. When your money's full in the account, the amount goes up. Is that correct?
No.
The interest rate varies. So there's a steady, my understanding, there's a steady 6% or so that I'm earning, right? When I pull the money out on a loan, that goes down to about 1%, still working. There's a 6% total, so maybe I'm wrong. So clarify that for me.
Yeah, happy to do that. And thank you for bringing that up. That's something that we get asked around interest rates and growth. In the United States, the cash value of the policy is contractually guaranteed to match the death benefit by age 121 of the life insured. It's age 100 up in Canada. So every single day that you're aging, your cash value is rising.
Every premium that you pay, the death benefit permanently increases. The premiums can never go up, but the death benefit is ever increasing. Every dividend that gets declared, which once it's declared once a year is contractually guaranteed to be paid. It can't be repossessed. It can't lose value. That permanently increases the death benefit of the policy.
So Justin, if you never borrowed against the ever increasing cash value of your policy, It is going to continue growing uninterrupted. Correct. When you borrow against your ever-increasing cash value, it is going to continue growing uninterrupted. It is not the policy loan that is affecting the growth of the cash value. It's you aging daily. That's the difference. Got it.
And when we hear people use language like... I've got my money, $1 doing the job of two, or this is the secret that the wealthy don't want you to know. And, um, but you know, forgive my language, but that's all just a bunch of bullshit. Okay. You're paying premium into an insurance contract and you become a co-owner of a life insurance company that's never failed to produce a divisible profit.
And you're dealing with people who cared enough to ensure their own lives. That's the pool of owners that you're dealing with. What a great people, group of people to be in business with. Yeah. And when you borrow capital in the form of a policy loan, the cash value of the policy continues rising uninterrupted as I've mentioned. When you repay that policy loan with interest, that extra interest
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Chapter 8: What are the key takeaways to achieve financial freedom?
No, hey, you got to pay the shipping or any of that stuff. We'll courier to them what we call a banker's vault. And it's a box of resources, including this number one bestselling book. It's a 92-page read, including... One of our bestselling quarterly books titled Don't Spread the Wealth.
Access to our private Facebook community, access to all of our resources, pre-recorded webinars, live events, our wealth accelerator package, all of that on the house at no charge. Have you ever heard someone give you the advice to give away your best stuff for free? Absolutely. We live and breathe that. We walk that walk.
And so that is just our token of gratitude to your listeners for investing a little bit of their time and making the right decision to text the word bank to that number.
Now, let me ask as a fix and flipper. Yeah. You take a loan from your insurance. Yes. Round number, a hundred grand. Yeah. You profit, you make 20 grand, you have 120 grand. Does all the $120,000 have to go back to insurance or can I keep the $20,000 and just repay the $100,000? You can repay as little or as much as you'd like. There's a trick question.
I was wondering how you were going to answer it because I know the answer.
Yeah, yeah. No, please trick away. Ask me anything.
No, I love it.
But you're in a position of total control as it relates to the repayment schedule of your loans. The only reason why that is true is is because the insurance company itself guarantees the collateral for the loan. And when you borrow the capital, you're not triggering any reporting to Equifax or TransUnion. It's a private loan between you and the life insurance company that you co-own.
You have all the gold, you make all the rules. And real estate investors tell me that gives them a lot of breathing room when they have projects that run over budget, that run over schedule, that would otherwise create some very tense scenarios where they either have to repay a hard money lender and they're on the hook for that.
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