The Ultimate Addition to Your Investment Strategy
Being a real estate and mortgage note investor myself, I am keenly aware of how important financing and cashflow are to investors. Whether you are a wholesaler, flipper, landlord, lien holder, hard money lender, syndicator, fund manager, commercial, residential – or any other kind of investor – having money readily accessible is paramount to your success. We all know that “Cash is King” and many times the best deals go to whoever can come up with the money to purchase an asset the fastest. That’s why we believe Cash Value Life Insurance is the ultimate addition to your investment, wealth-building and financing strategies.
A properly structured Cash Value Life Insurance (CVLI) policy can provide many benefits.
Liquidity
How liquid is liquid? Cash Value in your Life Insurance policy is available in as little as 1 or 2 days. Plus, if you know you’re planning on making a purchase in the near future, you can have it transferred to your regular checking account ahead of time so that it’s ready the moment you need it. There’s no cost, no questions, no hassle, no qualifying! Simply put in the request for how much of your available balance you want and you’ll have it within a few days. No more waiting for approval from a bank, custodian or money partner.
Constant Growth of Capital
Unlike any other account, the capital in your policy can continue growing while you use it as if you never touched it. The principle in your account is used as collateral for a loan to you so your money never actually leaves your account. Which means it continues earning guaranteed growth the entire time you are putting it to work. Now your money can work for you in two places at once!
No Rules and Regulations
Unlike any government qualified plan, including Self-Directed IRAs, you have total control over what you want to invest in. You never have to worry about Prohibitive Transactions or staying away from certain asset classes. There are no custodians or red tape to hassle with that slow down your execution speed. There’s also no need to create extra entities (for “checkbook control”) that add additional costs and possible legal issues if you aren’t careful. You never have to worry about qualifying for a bank loan or LTV limits.
No Fees
There are absolutely no extra costs to operate your private banking system. Zip, Zero, Nada! No custodian fees, management fees, transfer fees, legal fees, or any other fees. Ever. (Yes, insurance companies need to pay their staff and keep the lights on, but those costs are already figured into your policy premium and do not change according to your account balance. They actually go down over time.)
Tax-Free Growth
Similar to a Roth IRA plan, the growth in your policy is tax free. Plus, if and when you want to retire you can start withdrawing tax free income from your account (under current tax laws).
Death Benefit Bonus
Although we do not design your policy specifically to maximize the death benefit, it is a nice bonus. Throughout your investing career you will be simultaneously building the amount of income tax-free death benefit that you can leave as a legacy to your family or favorite charity. Plus, the death benefit can be much greater than just the value of the estate you built.
Additional Options
This process is sometimes referred to as “Infinite Banking” and that’s because there are an infinite number of ways to customize and use this system to fit your specific goals. It just depends on how simple or sophisticated you want to make it in order to take advantage of as many tax, legal and other creative benefits as possible. You can also use your Cash Value together with other financing strategies. (fund a down payment or split with bank or hard money etc.)