Funding Account for Real Estate Syndication Investments

[Duke Giordano]

Hey Guys,

For those who are an LP or GP in Real Estate Syndication deals and invest with Post-Tax cash account (not SDIRA etc.) I am curious about what type of funding account that you use.  I have outlined the considerations below:

1. Brokerage Account/High Interest Savings Account - this would seem the simplest option to use a Brokerage account or high interest savings account to make the transfer/witre.  The negative is you are getting a low interest level in the 1-2% range (cap One 360, Ally, or Fidelity MMA)

2. Infinite Banking Option/Bank on Yourself Whole life Policy - For those who are not aware of this type of account it is a whole life policy that you contribute to lets say 100K and then you have 75K cash value to use year one toward RE investments.  The cash position grows over time and you typically get a dividend interest in the 4-6% range.  When you invest in RE deals you borrow from the cash value, and still get your own interest on the borrowed amount but you have to pay yourself interest on what you borrowed (not sure what the Dividend/Borrowed delta is).  There is also a death benefit, and the typical break even point from fees is in the 5 year range.

Trying to figure out for those who specifically use post-tax accounts to invest in real estate what is the best use cash holding account for funding of the above two options, or that people use more commonly as the funding account?  Whats your thoughts on the consensus for a cash holding/funding account specifically for post-tax RE investments?

Thanks

Duke