1. “Thinking Differently” through your own Privati$ed Banking Strategy
Through extensive research and a broad knowledge base on different financial institutions, we believe there are specific types of life insurance companies that offer specific types of life insurance contracts with certain beneficial features to a real estate investor.
A highly trained financial professional can use these contracts to offer a conservative saver, and/or real estate investor a tremendous alternative to traditional banking methods
Please understand that we are not actually creating a real bank for our clients or communicating that life insurance companies are the same as a bank.
Rather we are attempting to design a financial vehicle that can mimic certain banking functions in one’s personal/business economy – like financing real estate investments and controlling where your cash flow is stored

2. Not the “Status Quo” Life Insurance
Privatised Banking policies are designed dramatically different than “off the rack” permanent life insurance. Working with an experienced expert is crucial.
Designed for maximum cash value, minimum death benefit
Has nothing to do with dying
Tremendous Tax Advantages
Guaranteed Loan Provision – No Qualifying & Guaranteed Financing
Total Control of Repayment Terms
Ability to Make a Positive Spread on Collateralized Funds
100% Unlimited Creditor Protected in Florida
5-6% Tax Free return over life of policy
Very few assets have the ability to generate an Internal Return (policy dividends) while you create an External Return by Investing or Utilizing your Money

3. Case Study #1- Rental Property
Scenario #1 – Buy $100,000 Property with 20% Down (CASH)
Variables to Consider
Closing Costs - $1,000
$80,000 for 30 years
$1,000/mo. Gross Rental Income
$724/mo. Monthly Expenses (Mortgage, Property Taxes, Insurance and Maintenance)
25% Marginal Tax Bracket and 15% Capital Gains Rate
Assume land is worth $25,000 and $75,000 is the structure that can be Depreciated
Property is sold in 10 years with 0% Appreciation and you pay 6% Realtor fees to sell the property
Net Cash Out is $24,155 After-Taxes and Loan Payoff
Total Rate of Return (ROR) is 14.00%
100% of ROR is External (Cash Flow and Pay Down of the Loan Balance)

5. Case Study #1- Rental Property
Scenario #2 – Buy $100,000 Property with 80% Traditional Bank Loan and 20% Private Banking Loan
Only difference in variables is that you take out $20,000 from your Private Bank
Borrow at 5% and structure payback over 10 years ($212/mo.) to yourself through the Privatised Banking account
Net Cash Flow is less but your Private Bank is still earning dividends and interest while your monthly pay back is rebuilding liquidity in your PB account.
Property is sold in 10 years with 0% Appreciation and you pay 6% Realtor fees to sell the property
Net Cash Out is $24,155 After-Taxes and Loan Payoff
Total Rate of Return (ROR) is 41.50%
Idle Cash is not sitting in the home earning 0%
Your money is working for you in the PB, in the bank loan amortization, and in the cash flow going to your PB account

7. Case Study #1- Rental Property
Scenario #3 – Buy $100,000 Property with 80% Traditional Bank Loan and 20% Private Banking Loan
Only difference in variables is that you take out $20,000 from your Private Bank
Borrow at 5% and DO NOT payback any of the principal or interest to PB account
Your Private Bank is still earning dividends and interest while the loan balance increases against the PB account.
Property is sold in 10 years with 0% Appreciation and you pay 6% Realtor fees to sell the property
Net Cash Out is $24,155 After-Taxes and you payoff the entire Traditional Bank Loan. Use $20,000 to payback PB Loan Principal and let Interest accrue against the death benefit
Total Rate of Return (ROR) is %
Idle Cash is not sitting in the home earning 0%
Your money is working for you in the PB, in the bank loan amortization, and in the cash flow going to you directly.

9. Case Study #2: 12 Month Flip
Scenario #1 – Buy Property with 100% CASH
Variables to Consider
Purchase Price - $50,000
Closing Costs - $1,000
Improvements - $10,000
Taxes & Insurance - $1,000
Property is sold in 12 months at $75,000
25% Marginal Tax Bracket and 15% Capital Gains Rate
Net Cash Out is $71,250 After-Taxes
Total Rate of Return (ROR) is 14.83%
100% of ROR is Internal (All of your assets were inside the property until you sold it)

11. Case Study #2: 12 Month Flip
Scenario #2 – Buy Property with Traditional Loan from a Bank
Variables to Consider
Purchase Price - $50,000
Closing Costs - $1,000
$40,000 Mortgage – 4% for 30 years
Improvements - $10,000
Taxes & Insurance - $1,000
Property is sold in 12 months at $75,000
25% Marginal Tax Bracket and 15% Capital Gains Rate
Net Cash Out is $31,954 After-Taxes and Bank Loan Payoff
Total Rate of Return (ROR) is 35.29%
ROR is both Internal and External (Property Value and use of Bank’s Money)

13. Case Study #2: 12 Month Flip
Scenario #3 – Buy Property with Traditional and Private Bank Strategies
Variables to Consider
Purchase Price - $50,000
Closing Costs - $1,000
$40,000 Mortgage – 4% for 30 years
$21,000 Loan from Private Bank for down payment and improvements – No Payments back to Private Bank
Taxes & Insurance - $1,000
Property is sold in 12 months at $75,000
25% Marginal Tax Bracket and 15% Capital Gains Rate
Net Cash Out is $9,880 After-Taxes, Bank Loan Payoff, and PB Loan Payoff
Total Rate of Return (ROR) is %
ROR is both Internal and External (Property Value, use of Bank’s Money and Leveraging your own Private Bank)

15. Shawn Byerly- CLU, CFBS 786-279-2207(Office) 918-688-7906 (Cell)
CONTACT:
Shawn Byerly- CLU, CFBS
(Office)
(Cell)