How to Become Your Own Bank
The top 0.01% strategy for creating wealth...
How do the wealthiest people in America buy things without ever touching their own cash?
You see, I spent years at Goldman Sachs seeing the strategies and tactics behind how they do it…
And now I’m revealing them to you…
I call it the “Bank of One” and it has 4 steps you can use today.
Here’s how it works:
Step 1: Earn
Earning income gives you the building blocks to work with.
But income doesn’t build real wealth on its own.
And it was at Goldman Sachs that I learned this lesson…
I thought getting a $1M fee from Goldman Sachs as a young banker was a big win.
But my client completely shattered my belief…
At the closing dinner of a $100M deal, they turned to me and said:
“You would have to do 100 deals like this to make what I made with this one.”
But I made sure I wouldn’t have to do 100 deals to turn income into wealth…
And it was using step 2 that helped me to do it.
Step 2: Buy
Every dollar of earned income you invest in an asset becomes future borrowing power.
This means the more assets you own, the more you can borrow against.
Because banks and brokerages will lend against assets they consider stable and valuable.
And access to cash is one of the most important things you can have for both investing and financial security.
Now this is where the Bank of One really starts to take shape…
Let me tell you a story:
In 2018, I bought a duplex for $350,000 and I put $70,000 down as a deposit.
My $70,000 was now invested in an asset that could appreciate in value, generate rental income, and be borrowed against later.
But for the other $280,000, I didn’t pay it with cash… I used step 3.
Step 3: Borrow
Borrowing money can be hard to access, which is exactly why most people never get to this step.
Because the truth is, banks don’t just lend to anyone… they lend to people with collateral.
Collateral is a valuable item that a lender can seize from a borrower if they can’t repay their loan.
This could be assets like your house or your stock portfolio.
But here’s the thing:
The bank doesn’t want your house or your portfolio… they want interest.
Taking your collateral is the last thing they want because they’d much rather the steady cash flow from interest.
So as long as you own stable assets, you’re exactly the kind of borrower they want.
Just like the duplex I bought in 2018 for $350,000, which had now grown in value to $550,000.
Now I could have sold it and cashed in on the $200,000 it had appreciated by.
But that $200,000 would’ve also been taxed to death.
And so instead of selling, I did a cash-out refinance at 75% loan-to-value.
This means I borrowed $412,500 (75% of the value) from the bank, paid off the original mortgage, and walked away with roughly $132,500 in cash that was completely tax-free.
How?
Because a loan isn’t income.
So here’s how you could apply this:
You borrow against the asset’s growth instead of selling it
You get tax-free cash
You still own the asset while it keeps appreciating
Let me be clear: This is NOT financial advice.
Always speak to an expert because what works for me isn’t guaranteed to work for you.
Now even if you borrow against your assets to buy more, this final step is the one that decides if those new assets in your Bank of One grow or die…
Step 4: Compound
Albert Einstein once called compounding the eighth wonder of the world.
But now you’re not just compounding your income… you’re compounding:
Assets
This is your properties, stocks, and businesses.
Let’s go back to the house example.
If you own a $400,000 house and every year it appreciates by 5%, that’s $20,000 in year one.
And so, in year two it’s now growing from a $420,000 base. This is compounding in full effect.
Ability to borrow
This is your collateral that gives you access to bigger loans.
Now, as the house grows in value your borrowing power grows with it.
At $400,000, a bank might lend you $300,000 against it or at $500,000 maybe it’s $375,000.
Capacity to leverage capital
This is your ability to use borrowed money to acquire even more assets.
So now you use the $300,000 in borrowing power from the bank and buy a second property.
The second property starts appreciating and compounding too, which creates its own borrowing power.
And these assets become collateral for the next round of borrowing to buy more properties if you want.
This is the Bank of One strategy in full effect…
Use your income to buy assets.
Use your assets to create more borrowing power, which then gives you more capital to use.
Then you buy more assets, which creates even more borrowing power to buy bigger assets.
Meanwhile, every asset you own is growing through the magic of compounding.
Again, this is not financial advice.
It’s just to show you how the wealthiest people in America grow their wealth without ever touching their cash.
They spend their lives creating access to cash they can pull from 24/7, without selling anything.
And this access is only built through their assets.
This is exactly what the “Bank of One” strategy creates for them… and it’s exactly what it could give you too…
Now instead of only borrowing or relying on the bank for money… you become your own bank.
But most people today are still listening to misinformation from viral financial advice, not these proven strategies like the Bank of One.
That’s why I put together a guide to help you see what good financial advice actually looks like and the bad advice to run away from below:
Nice read. And a question: since $412k was borrowed from the bank against collateral, means interest will be paid on $412 k now, right?
Not only hedging against your own investments is a strategy of becoming your own bank. There is also building what we call in the insurance Industry, Cash Surrender Value within the whole life policy, you buy a whole life policy and build cash and that way you pay off your own monthly premium and take cash that you can allocate to pay off your own business overhead or fund your business.
Would love to learn from you on shielding company of an IP