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Become Your Own Bank

 

Do What The Banks Do, Not What They Say

 

At the end of the day, banks and major corporations have been using this Cash Value Life Insurance system for decades.  Corporations and banks own huge portfolios of life insurance to themselves take advantage of all the benefits we have speaking about.  This includes but is not limited to GE, Verizon, Stanford University, US Bank, Chase Bank, Bank of America, Wells Fargo, Nike, Disney, Citibank, Proctor & Gamble, AT&T, JC Penny, and McDonalds.  They want the guarantees, they want that tier one protected capital no matter what the market or economy is doing.  These policies grow year in and year out.  People like and want that; there’s lots of social proof out there. It isn’t talked about a whole lot.  Banks don’t like to talk about it.  They want people to invest in IRAs and mutual funds because there are more fees they can take by selling that mentality.  They take your deposits that earn you effectively zero percent and invest it in Cash Value Life Insurance that earns 5%+ a year, guaranteed.  They never let money sit: they always keep their money moving, but recommend that people keep their money parked.  In general, many real estate investors sit on cash that effectively earns zero percent at banks.  Instead of doing what the banks tell you to do, take the power into your own hands, and become your own bank.  It is entirely possible to use Cash Value Life Insurance to do what the banks DO, and build wealth while generating cash flow for real estate investment and wealth creation.

 

Taking Tax-Free Policy Loans to Finance Deals: LIQUIDITY

 

This is the secret to becoming your OWN bank.  To name a couple famous examples of people who have used this system: Ray Kroc borrowed from his cash value life insurance policy to finance his growing McDonald’s franchise. Contrary to popular belief, McDonald’s has always been a real estate company and not just a burger joint.  Walt Disney borrowed from his whole life insurance policies to purchase swaths of land in Orlando Florida to become modern day Disney World.

One of the most difficult challenges most real estate investors run into is having enough money to do the volume of deals they want to do, and therefore we look for private money, or withdraw from IRA’s to get our next big deal. There is one area that is often unnoticed for investment capital that I think deserves some discussion: Cash Flow Life Insurance. That often-overlooked program could be your ticket to an unexploited resource of funds for your next deal.

As you have enough cash value in your whole life insurance policy, why not consider borrowing from yourself, to purchase that next cash-flowing asset? You can pay your policy back with the income produced from the tenant, and in turn your cost basis for your real estate property essentially is zero. When you borrow from a policy, you’re borrowing from your own cash value life insurance policy, so your approval and financing can be issued in literally hours. There is no qualification, appraisals, or other difficulties.

Your credit score is NOT impacted by your policy loans like it might be with a bank, as they are collateralized by the cash value in your policy.

Your debt to equity ratio on the property stays intact because the equity from your real property is not being used to fund the loan, thus maintaining elasticity if a downturn in the market occurs (which happens all the time… it is not a matter of if, but when ) and the real property would need to be sold.

The best insurance companies charge low rates (in today’s market around 4-6%) (some companies offer fixed options) for loans.

So, it is possible to get a financial arbitrage when profits are borrowed and repurposed to third parties. Costs for taking loans are minimal as opposed to the substantial closing costs that can accumulate from obtaining mortgages and home equity lines of credit or other bank financed loans.

The proper mutual life insurance company will allow full payment of dividends on the cash value sum regardless of loans taken, and this is a massive advantage over loans guaranteed by other financial products such as 401(k) accounts and IRAs.

Furthermore, because this is your policy and you manage it, there is no worry about having loans called or otherwise altered, like they can with bank financing.

The simplicity of borrowing and paying back your policy will at a minimum improve the real estate investor’s capability to swiftly capitalize on opportunities, adding the quickness of money to the equation, and opening up new level of freedom and achievement.

 

A brief look at Liquidity

 

What happens if we have another 2008 situation where borrowing from banks becomes difficult?  You might have a bunch of equity wrapped in your real estate properties, but if the banks aren’t willing to give it to you, what does the equity do for you? The key difference between traditional real estate financing and Cash Flow Life Insurance is the liquidity. To swiftly capitalize on real estate ventures, liquidity, use, and control is paramount. 

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Our Financial Expert Advisor will personally reach out to answer all of your questions.

Schedule a free 30-Minute Consultation

Our Financial Expert Advisor will personally reach out to answer all of your questions.

Our Support and Sales Team is available 24/7 to answer your queries

Our Support and Sales Team is available 24/7 to answer your queries

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