Paying Off Huge Debt and Becoming Financially Free with Drew White

My guest today is Drew White. After 10 years working as a pediatric nurse, he quit and became his own banker. Drew is now an entrepreneur and an investor, and he teaches real estate investors how to protect and store their wealth in their own highly liquid banking systems.

We begin the episode with Drew sharing his background story and how his entrepreneurship journey started. Drew shares that he graduated from nursing school with over $150,000 of student loan debt, which would require him to use 50% of his earnings over a long period of time to pay off. That was the first time he understood the true impact of the debt he had created. He and his wife paid the whole debt, leaving themselves with nothing. This experience gave him a hunger to create wealth-building side businesses to take control of his family finances.

We then talk about the basic and high-level steps of flipping a mobile home and how Drew conducts evaluations. Drew shares that to invest in mobile homes, you must know what you are doing, and just like in real estate, you must look for good deals. Basically, what he does is that he looks for someone to give him a down payment and then pay monthly payments for five to seven years. There is a fine line with mobile homes, if you fix them all the way up, you’re not going to get your money back, and the goal is to get your money back.

Next, we talk about how to get good deals for your mobile home investments. Drew shares that a lot of it depends on the park you are in. and whether you’re doing it inside or outside a park. In a park, you should evaluate the state of the park, whether people want to be there and what is near the location. Drew says there is no exact formula for evaluation, and for him, he started by doing tests to find out what a mobile home goes for. As he got better, he started searching to find out what and how people were selling them in the market. According to him, many people don’t care what the total price is; what they care about is their monthly payment.

We then talk about what infinite banking is and why he prefers putting his money there as opposed to the stock market, CD, and others. According to Drew, infinite banking is a way to create your own private, personal, or family banking system outside traditional banks using whole life insurance. With infinite banking, you also get more benefits compared to traditional banking, such as uninterrupted compound interest because it’s a whole life contract. When you use that money, you are using the insurance company’s money. Your money always grows in a tax-free manner and a guaranteed 4% rate plus dividends. In contrast, when you use a CD or savings account, you get less 0.2% on your savings, which interrupts any compounding that you have.

Lastly, we talk about Drew's advice for people who are dissatisfied with their job. The first thing that Drew talks about is identifying your long-term goals. Sometimes people complain about where they are, but they don’t think about where they are going. According to Drew, there are different things you can do to create passive income and move from a job that is not paying you enough. The first thing that Drew recommends is to assess where you are and your short and long-term goals. Start from the basics and be open-minded. There is no one size fits all when it comes to building a passive income.

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Drew White and get valuable information on how to start your entrepreneurial career and gain financial freedom!

Notable Quotes:

“There is a fine line with mobile homes - if you completely renovate them, you’re not going to get your money back.”