Have you ever felt that there’s something missing from traditional wisdom about money?
Sure, the traditional suggestions sound safe and secure, but they move slowly, and it can be frustrating to watch your money grow so slowly in an account that you can’t touch. People rarely talk about other alternatives, so it can be challenging even to know where to begin.
Entering the world of money alone can be overwhelming and complicated. It’s difficult to navigate, and even once you get your bearings, there is one crucial aspect missing that you would normally get with a financial advisor, and that is connection. Perhaps you know what direction you want to go in, such as real estate, but you don’t have the connections to get started. That’s where PMC comes in.
Drew Hitchcock was in that same boat before joining PMC as a member that lends. He worked closely behind the scenes on Chris Naugle’s Youtube channel before realizing he, too, could reap the benefits of infinite banking. If you’re looking for inspiration to grow financially and surround yourself with like-minded individuals, you are in the right place. In this article, we discuss Drew’s story and how he became a lender on the PMC platform.
Entering the World of Private Lending
Sometimes, life gives you the privilege of learning from others’ mistakes. Drew was born in Ohio to a middle-class family and grew up watching his father engage in traditional money methods. Over the course of Drew’s childhood, his father lost somewhere in the range of 7 figures through investing in the stock market. Upon his graduation from college, Drew knew he had to figure out his money.
“You go through the Dave Ramsey stuff, read Tony Robbins’ book, Ramit Satie’s book— and a lot of them had similar veins and just slightly different thought processes around everything. So I kind of took the typical advice and started investing. You know, putting in my money into my 401k when I got my first job — started saving for retirement. I always found it strange, though. I’m putting money into an account that I don’t really get access to. It’s money that’s just sitting out there. It’s working, but you never know, really, what is really happening.” – Drew Hitchcock
If you’ve got a 401k of your own, you can probably relate to this feeling. There is a sense of comfort knowing you’re putting money away safely to prepare for retirement. Many people fail even to begin this process until it is far too late. However, it’s also frustrating to watch your money get funneled into a place that you cannot easily gain access to. Drew recalls seeing his 401k statement at the end of a year with a 4% increase and couldn’t help but feel disappointed. Is this really the only way you can “invest” your money? Is there another method worth trying?
Trial and Error: Beyond a 401k
“I had been doing the typical [money] thing up until probably about 2018, when I started to get into the world of infinite banking and that kind of stuff. And that is when I took like a really hard look at where I was putting my money. Is this really the right vehicle for me? So I basically halted all contributions to all qualified plans at that point.” – Drew Hitchcock
After a short period of trial and error, Drew finally had money sitting in his account that he could use. But how does he use it? Where does he put this money, and how does he know who is reliable enough to place it with? Drew mentions a book by Robert Kiyosaki that taught him a great deal about private investment, from which he learned to focus primarily on assets that “put money in your pocket.”
“It wasn’t really until I got into Chris’s world and gained an understanding of what private lending is that I made my first deal. I took a loan for 21 grand from my insurance policy, sent it off. You know, you start seeing the checks come in, and then you get all your money back, and it’s like, ‘Oh, this, this wasn’t that complicated.’ It’s like, okay, yes, you’re sending out your money to work, and you’ve gotta do the due diligence of really understanding who is handling it, but the likelihood of not getting your money back is very low.” – Drew Hitchcock
It’s normal to be apprehensive about where you’re putting your money, especially when it comes to other people. Obviously, you want to recoup the money you have out, but as Drew said, you also want to focus on putting money in your pocket. Once he understood how it all worked, Drew was eager to begin lending.
Meeting Chris and Joining PMC
Though Drew was new to alternative finance strategies, he was certainly not new to the world of personal finance entrepreneurs. He has long worked for Evan Carmichael, a venture capitalist and entrepreneur who now has over 3.5 million followers on his Youtube channel and continues to work with some of the biggest Youtube channels on the platform. Drew and Chris met via mutual friends at an event and quickly became involved as a lender on the PMC platform.
“Everybody has their own money problems. And the thing is, the world that Chris is creating is kind of a hub where you can get the resources that you need in a lot of different places, whether you’ve got the money you’re looking to loan or you need help with a very specific thing. … Honestly, I’ve worked with a handful of people in the finance space, and that’s one piece that a lot of them miss. Chris has done a really good job of building out that team and resource panel.” – Drew Hitchcock
After gaining confidence and dipping his toes into the water with a smaller, test-run loan amount, Drew began regularly connecting with colleagues within the PMC ecosystem and consistently lending to borrowers. He maintains that the most important aspect of finding a borrower is transparency. If he feels like he gains a good understanding of where they’re at and what they’re searching for, he gives himself the green light to move forward.
“I think, in general, there’s such an emphasis in Chris’s world on the education piece that it naturally attracts people who have a better understanding of how this works. As a function of that, it kind of creates an environment where hopefully the people who just randomly pop in will start to step up their own game because they realize these are people who know what they’re talking about. It just creates an environment where you can have some level of confidence that if you ask a question that may be a little bit more technical, you’ll receive an answer.” – Drew Hitchcock
Within any organization or group, it’s important to feel like you’re in good hands. You never want to feel like you’re surrounded by people who don’t know what they’re doing, especially when you’re dealing with money. Drew thinks that part of the reason for this is because Chris’ ideology naturally attracts people who understand these concepts.
Advice and Moving Forward
There are a fair amount of people who join PMC solely to learn about infinite banking and private lending but have trouble gaining the confidence to actually take that first step. Drew felt that apprehension as well, but it didn’t take him long to find his footing as a lender.
“I think the big thing is to really find for your first deal somebody who has done more deals than you. Finding people who are a little bit more tenured and doing your first deal with them is going to be the easiest barrier to entry just to get your toe wet and understand the process. They’re going to at least be able to help you through the process of getting the note taken care of, and they’ve gone through the wringer enough times to know what it looks like.” – Drew Hitchcock
As is the case with many things in life, finding a mentor to walk you through your first steps is crucial to feeling more comfortable in a new environment. Drew was familiar with the world of finance and had worked for thinkers in the financial space for years, but he still needed guidance as he began lending with PMC. Luckily, there is no short supply of tenured lenders on the PMC platform to guide you along the process.
“I think the big thing is, at the end of the day, you’ve got to decide what kind of loaning style you want to have and, you know, if you wanna be more involved, shorter term lending deals are great. If you are like me and you don’t necessarily want to be as involved, then going with more funds and long term deals and that kind of stuff is probably going to be more up your alley.” – Drew Hitchcock
When it comes down to it, private lending is a personal transaction, and when you’re making a personal transaction, the benefit of having a conversation face-to-face cannot be understated. When everyone involved is transparent and clear about what they want, everyone wins, and it promotes a safe yet ambitious environment.
Find Out How Private Money Club Can Open Your Financial World to New Opportunities
If Drew’s story strikes a chord with you, you’re already on the right path. If you have an interest in private finance and you wish to find interesting projects, quickly strike deals, and make things happen, Private Money Club has the answers you’re looking for. If you want to find out how to learn best practices in lending, or bring your real estate opportunities to a group of lenders with the knowledge to act, the Private Money Club (PMC) app has all you need to know. If you’re ready to reach your goals through a community, join the club today by visiting the website.