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Updated over 6 years ago on . Most recent reply
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I want to expand my portfolio using other people’s money?
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Originally posted by @Kelly Waite:
Its a bunch of elaborate marketing and a great web page for buying mutual whole life and using your policy value (cash value) to buy more real estate then using your real estate and paying back your whole life plan loan higher than the rate youre borrowing at so you can keep rinising and repeating.
In theory you grow your wealth up more and more and build up your RE portfolio and you in essence "become your own banker," AKA nelson nash's book.
Cash flow banking is a new marketing spin off for infinite banking (nelson nash), cash flow banking (website above), private reserves strategy (anderson advisors in NV/WA), bank of yourself (kim butler), and etc.
The problem is funding your WHL (whole life policy) and every dollar you start out with hits huge drag because every dollar contributed only nets around 65-80 cents. So if you drop 100,000 into a WHL policy on day 1 you'll have around 65,000-80,000 of cash value you can borrow against and this balance will continue to grow 4-7% annually till you reach parity with your 100,000 you contributed on day one.
This might take 8-12 years, Why ? because of "financial drag," from the agents commissions, admin costs, and cost of insurance upon setting up your policy.
Hopefully that saved you a bunch of time.