Creating Wealth by Becoming the Bank with MC Laubscher

In this episode, I am joined by MC Laubscher. He is a cashflow coach and investor, and serial entrepreneur. He is also the creator and popular host of the Cashflow Ninja Podcast and Cashflow Investing Secrets Podcast, as well as the President & Chief Executive Officer at Producers Wealth, a virtual wealth creation firm that assists investors and business owners to set up and implement Infinite Banking. MC has shared his strategies in Forbes Magazine, Entrepreneur Magazine, Grant Cardone TV, and the BiggerPockets podcast.

We begin this episode with MC’s background story. He is originally from South Africa and he started his journey playing sports, which is how he ended up in the United States. He was playing in a national league and while traveling from one city to another, he started reading books. On one of those trips, he came across a book that his mom gave him called Rich Dad, Poor Dad, and it completely changed his paradigm. This huge shift in his thinking made him take action and in 2001 he bought his first property. He got his first tenants in, collected the rent, paid the bills, and at the end of the month, he still had money left. That is where his real estate journey started.

We then move on to discussing his “a-ha moments.” The first thing he realized is that cashflow in real estate is amazing, which is why he became super passionate about it. As he dove deep into the financial world, learning more about economics, history, and finance, he eventually ended up looking at banks. He realized that there is a business model there that is unmatched and because they are the creators of the game, they own the chessboard, everyone else is just moving pieces on it. His second “a-ha moment” happened after he reread Rich Dad, Poor Dad and realized that you have to be the bank and you have to become your own banker.

We talked about MC’s beginning stages and how he had to change his belief system in order to take action. This applies in all areas of your life, such as your health, your marriage or relationships, your wealth; nothing is going to happen until you change the lens through which you view the world. MC also believes that if you're married, you have to bring your partner with you on that journey, otherwise, it's going to be a very tough relationship.

Our next topic of conversation is the first property that MC bought back in 2001. He purchased it in South Africa because he grew up in the area, he knew the market, and he knew where the market was going. He bought a two-bedroom condo a couple of blocks from the ocean with a great view and very close to Cape Town. The interest on that mortgage was a double-digit rate, but he was still able to make it work.

We then move on to talking about being your own banker and the strategies that he is using. MC breaks down the banking model, going into detail on how the system operates. He then shares with us the five pillars of a wealth strategy, a framework that we use to make our money. First, we all make our money somewhere, we have a skill that we provide to the marketplace, which we get paid for; second, we've got to position our capital somewhere; third, we have to deploy it to go make more money; fourth, using different growth opportunities; and finally protecting our money through tax strategy, asset protection, and estate planning. So, if you are looking to become your own banker, you have to start by building up reserves and savings first. MC suggested getting six to twelve months of cash reserves and then look at other places to put capital in. But the most important thing that you need to do is position assets so that you can eventually collateralize them.

Finally, MC shares with us what his business looks like today and what his plans are moving forward. One of his businesses is Producers Wealth, where they help people with wealth strategies as well as the infinite banking strategy, which is based on insurance, and that's completely virtual. His other company is Cashflow Ninja, which is an education company and its core principle and philosophy is to empower people to become self-reliant through education.

Join us for another episode of the Just Start Real Estate Podcast with the amazing MC Laubscher and learn everything you need to become your own banker and build your wealth!

Notable Quotes:

“It wasn't until I understood the history, the financial history of the world, that it actually all started to make sense.”

MC Laubscher

“Being a real estate investor, you're obviously going to end up with debt. And the big part of the game is leveraging debt and good debt. And another part of the game is leveraging the tax code and inflation. And a lot of folks suffer because of those three things.”

MC Laubscher

“You have to change your belief systems, otherwise, nothing will change. And you can put this into other areas of your life, such as your health, your marriage or relationships, your wealth. Nothing is going to happen until you change the lens through which you view the world.”

MC Laubscher

“If you surround yourself with people who think a certain way, you tend to think that way, for the better or the worse.”

Mike Simmons

“You can read about driving a car, you can look at all the pictures of what a car looks like inside. But at some stage, you're going to have to get in that car and actually learn how to drive.”

MC Laubscher

“People are afraid. Afraid to make mistakes, afraid to risk what they have, even though what they have isn't what they want. It's just sort of a crazy mindset.”

Mike Simmons

“Why real estate investors and business owners are so successful is because they have tunnel vision, and they laser-focus on generating assets that cash flow. But if they look at moving a couple of pieces around, it may amplify their results.”