Infinite banking for new investor

[Ryan Geisler]

I have recently been learning about infinite banking via whole life insurance loan.   Is it a great place to start to get funding for my first deal?  Any things I need to watch out for or words of advice for that method?

[Thomas Rutkowski]

@Ryan Geisler

Its important to understand that you are leveraging your cash value when you take a policy loan. This means that you have to have the cash value first. You'll still likely be looking at other sources of funding in addition to your policy loan. BUT, that said, leveraging a high cash value life insurance policy does allow you to earn an infinite rate of return on your real estate investments.  For example, if you borrow against your policy to get the money for a down payment and you rely on bank financing for the rest, you have no money of your own in the deal (your money is in the life insurance policy's cash value).