The 5 Questions Podcast
Join us as we unlock real estate and business insights, one question at a time.
The 5 Questions Podcast
Unlocking Financial Freedom with Darren Mitchell's Infinite Banking Strategies
Unlock financial freedom with Darren Mitchell from Control Compound Financial! Discover the power of infinite banking and how high cash value life insurance can be a game-changer for real estate investors and business owners. Darren reveals the secrets of the wealthy—like tax-efficient growth, uninterrupted compounding, and strategies to overcome taxes, fees, and market ups and downs.
Learn how to turn traditional RRSPs into tools for rapid growth and real estate success. Get insights from Darren’s books, Be the Bank and Infinite Banking for Real Estate Investors, and start building lasting wealth. Don’t miss this chance to take control of your financial future!
https://www.controlandcompound.com/5questions
#FinancialFreedom #InfiniteBanking #RealEstate
And then we teach them how to avoid the wealth destroyers. And there's four things that we tell people if you want to be rich, you got to avoid these four things.
Speaker 2:Welcome to the 5 Questions Podcast, where we unlock real estate and business insights one question at a time. Welcome to the 5 Questions Podcast. I am your host, mario Lamar, on our show today. Our guest is a real estate investor with an extensive portfolio. He is the head of Control Compound Financial, a company that is dedicated to bring wealth out of people. Welcome, darren Mitchell. Darren, thank you so much for being on the podcast with us today. Hey, thanks, I'm excited to do it. Love your podcast, darren. The concept of the podcast is real simple. I ask you five questions about real estate or business and we get straight to the point. You ready, let's go All right. You specialized in helping clients harness the power of infinite banking. Can you, can you explain first how this concept works and maybe why it's particularly beneficial for real estate investors or business owners?
Speaker 1:Sure. So at Control Compound, we believe if you want to be wealthy, it's not that hard. Just do what the wealthy people do you want to be rich? Do what rich people do. Success leaves clues. Do what the wealthy people do you want to be rich. Do what rich people do. Success leaves clues. So we think really, if we look, if we study every wealthy person we've ever come across, they've done one of three things They've invested in themselves, they've invested in a business and they've invested in real estate. So that's the three ways you have to.
Speaker 1:We believe is a true path to wealth Make yourself better, level yourself up, get a coach, join a group, make yourself better, get an education. That's going to produce money business, real estate or some other hard asset. But that's really step two. The step one is where do you invest the money? And that's where this infinite banking concept comes in. And the product we use is a high cash value life insurance product where we put our money in, we grow it, and then we kind of insurance product where we put our money in, we grow it and then we take loans from that to do real estate. The kind of five things that we get out of that is, we get control of our money.
Speaker 1:So most people are not in control of their money. Their money's in an IRSP or a pension plan or even a TFSA. When the opportunity comes along, they're not in control. Most people have interrupt their compounding. In other words, they're compounding, they're not in control. Most people have interrupted their compounding. In other words, they're compounding. They're growing their wealth and then they go pay cash for something that stops the compounding. So we take care of that. We show you how to multiply money like a bank. It does come with a tax-free death benefit and the bonus is that retirement you can have a tax-free retirement income because this policy grows tax-free. You can take loans in retirement that are tax-free and not be in a 0% tax bracket in retirement.
Speaker 2:It's true, people sometimes try to reinvent the wheel when they can just look at what wealthy people are doing, but at the same time, it might not be as simple as we think. So thank God that there's people like you to guide us through that. That brings us to our second question. Your company Control Compound Financial focuses on innovative financial planning. How do your team of well coaches because there's a lot of people out there with different situations right? How do they tailor their strategies to meet the unique needs of the different clients?
Speaker 1:Yeah. So we consider ourselves first and foremost financial educators, because we think education is the key. So we educate the crap out of people. That's why we have a ton of resources, podcasts, books, webinars appear on all kinds of podcasts. I do a lot of public speaking because we want to educate people.
Speaker 1:So the first thing we do in that education session is find out where their money is now and we find out how much of this money are you in control of, right? Are you in control of your RSPs? If you've got a bunch of money in an RSP and a great real estate or business opportunity comes along, can you access that money? Or will you access that money? Or, if the stock market's down, are you going to access that money? So we find out where they are, educate them on that, and then we teach them how to avoid the wealth destroyers.
Speaker 1:And there's four things that we tell people. If you want to be rich, you got to avoid these four things taxes, fees, volatility and spending. And spending is really that stopping the compounding. So, instead of stopping the compounding and restarting again, we borrow against the cash value. And then, lastly, on this, the product we use is this innovative insurance contract, where we design it specially for you. Every contract is different, so if you're a 40-year-old male or a 55-year-old female, it doesn't matter. We can design a specific contract to meet your needs. So we find out what are you trying to accomplish and then how do we build the policy to help you accomplish your goals in a tax hopefully, a tax-free environment.
Speaker 2:So it is really basically like a doctor that we would explain our situations and our goals to you and then you tailor really for that specific person. That's great.
Speaker 1:Yeah, we don't for a second pretend to be. We're not real estate experts, business experts. We invest in real estate ourselves. We are business owners. We are experts at the infinite banking concept for real estate investors and business owners. We focus on that one thing. We do it really well you know.
Speaker 2:See the concept concretely. Can you give us an example how a real estate investor can use infinite banking, like in details yeah, so, okay.
Speaker 1:So let's pretend you started a policy and you were putting a bunch of money into it I don't know, 20, 30, 10, thousand, a thousand a month doesn't matter and you've built up a cash value and now an amazing real estate opportunity comes along. You know a two, three, four plex or something and you go, okay, great, it's five hundred thousand dollars. Where do I come up with the money for the down payment? Let's say the down payment's twenty percent or a hundred thousand. Well, you can't go to your rsp that money's in jail. You can't go to your kids resp that money's in jail. Um, maybe the market's down. You don't want to touch your TFSA. So we go okay, what about this beautiful insurance contract to have with all this cash value? And when you have cash value, what you can do is call the insurance company up and say, hey, I love that the way my cash value is growing for a tax-free retirement. Why don't I leave that there? Why don't you, mr Insurance Company, give me a hundred grand of your money so they will loan you their money? You're not borrowing your own money. They'll give you their money, they'll charge you a little interest on that and then my money stays in the policy. So whatever I had in the policy continues to grow.
Speaker 1:So now I go to the bank as a real estate investor and I have my down payment. Well, the first question the bank asks before they leave you a mortgage is where'd you get the down payment? And if you say I borrowed on my line of credit or something, they're not going to give you the mortgage. But if you borrow from your insurance policy, the banks do not consider that a loan for borrowing capacity, so they will give you that mortgage for the, say, $400,000 in my example, I've borrowed for the down payment and now I can pay that loan back to the insurance company when I want, how I want, and if you want Now you should pay it back. But you have that flexibility because I promise you whenever you do a real estate deal it will not turn out exactly as you planned. Something will either go better or go worse, but it will not be as you planned. So to have that flexibility and the loan repayment is key for our real estate investors.
Speaker 2:Wow. So that actually brings us to our question number four. So seeing how you help clients across Canada right integrate the infinite banking in their financial strategies, can you share maybe a success stories with us that that concept make an impact on a client's financial journey?
Speaker 1:Yeah, so we've got tons of these. A lot of people have bought real estate with their policies. We've had people start businesses with their policies. But what I'll tell you, we had a client who was a business owner and they had RSPs and they were about 40, and they were convinced the RSPs were just in prison and they weren't going to be able to do anything with it for another 30 years. With it for another 30 years and they wanted to get into real estate. So what they did is they actually stopped taking a salary from their business and they started spending down their RRSPs to live off, and that allowed them to keep a lot more money in their business. And in Canada their province they were paying about 12% tax on that, so they were getting 88 cents left after tax. Then they put those corporate dollars into the insurance policy Fast forward two or three years. They had a big sum of money there that they were able to leverage and start buying multiple pieces of real estate. So it allowed them to literally multiply their money save in a more tax efficient way.
Speaker 1:And we have the death benefit and the death benefit. People usually come and they want to talk about the cash value, but I'll tell you, as a guy in the insurance business, like that's the end of the day, the death benefit is really important. Last year, over a three week period we paid three death claims. Two of the clients had purchased an insurance contract within the last two years. That means they were perfectly healthy when they bought it. They were all under 55. And when you talk about impactful on a client or the clients who passed away, but a family when a breadwinner in the family dies and it's nothing but bad news and we show up at the house with a million or $2 million tax-free check, that to me like it's sad but it's also the most rewarding thing we do in our business because that changes families' financial future.
Speaker 2:Absolutely, it makes a difference, even though it's a sad story. But another point I want to mention that you talked about is how quickly people can access that money to better their life with investments such as real estate. So it doesn't take necessarily 10 years or 15 years like we've seen with other policies. You can actually use it fairly quickly.
Speaker 1:Yeah. So when we talk, tell people we go, instead of taking a dollar and putting it in the stock market, have that dollar doing one potential job, go up in value. We're going to take that dollar, put it in an insurance contract, compound it tax-free for the rest of your life, for a tax-free retirement. Then we're going to multiply that dollar, provide a tax-free death benefit in case something does happen. Then we're going to multiply that again by a loan from the insurance company and we're going to put that money into real estate where you can do multiple jobs with your dollar. So now we're doing multiple jobs with multiplied money. And that's how we collapse time and accomplish over you know, 10 or 15 years what would take people 50, 60 years or never get to. So that's, we're trying to compress time to get people started. And it doesn't matter how old you are If you're 50, if you're 30, if you're 20, this concept can work for you.
Speaker 2:Wow. This brings us to our fifth question. Already it's a quick podcast, but we're there your books. You wrote two books Be the Bank and Infinite Banking for Real Estate Investors and they both became, you know, amazon bestsellers. What motivated you first to write these books and what can key takeaways are? The readers can gain from them.
Speaker 1:Yeah, so my first book Be the Bank. Really, like I go back to, we're financial educators and what I find funny is 90% of the wealth in this country is controlled by 10% of the people. Okay, so that means the other 90% of people only have 10% of the wealth. But what strategies does everyone follow? They follow the strategies of the 90% that have 10% of the wealth. Right, I'm going to put money in an RRSP. I'm going to have a T4 job, I'm going to work and save and wait 50 years to enjoy my life. We flip that on the side. So what I did in the first book, be the Bank is I talked about all those traditional financial planning concepts and said it's going to be really hard to accomplish true wealth by following those strategies. And then I flipped around and said now let's study what the wealthy people have done and let's show them how this infinite banking concept can accelerate them to wealth. So that was the first book, be the Bank and then the second one, because this strategy works so well for business owners and real estate investors.
Speaker 1:Right, I think the most important word in the English language with regards to money is control. You know, compounding is important, but I want to be in control. You know, when 2008 happened for those old enough to remember, there was no access to money. But people with an insurance policy had access to money that guaranteed didn't go down in value could access money. Having access to money, you know, as Christina in my office always says, the deal of a lifetime happens when one person has money and one person needs money. I want to be the person who has money, or has control of money or access to money, so I can take advantage of the opportunity, because we started working with so many real estate investors from coast to coast.
Speaker 1:The second book was Infinite Banking for Real Estate Investors, and that's where I reviewed the infinite banking concept again. But then I literally went through eight different real estate strategies whether it be land development, private lending, multifamily, single family and I showed specific examples on how the infinite banking concept and these insurance policies can make all those deals you're doing just that much better. So what we're going to do is one plus one is going to equal five, because we're going to show you how to do it with less of your own money. Allow you to continue to compound, allow you to get in the 0% tax bracket, tax-free retirement and if something happens along the way, your family's protected. If not when you die and if something happens along the way, your family's protected. If not when you die, there's going to be hopefully in 50 years there'll be a big death benefit that's going to allow those properties and businesses to stay in the family. Take care of those taxes and start talking about intergenerational wealth.
Speaker 2:That's amazing insights and I love the fact that you break it down for people to you know, not just see it eye level, but actually, you know, can take it and put it into practice after reading your book. So thank you for the time that you spent with us on the podcast today. It was amazing insights. I hope that every listener takes a piece of your advice with them on their journey, and we'll talk to you soon. All right, thanks for your time today. Bye-bye, thanks for tuning into the 5 Questions Podcast. If you enjoyed today's episode, don't forget to subscribe, like and hit the notification bell on our YouTube channel so you never miss an episode. Stay tuned for more insights and tips to transform your real estate and business game. See you next time.