All Forum Posts by: Chris Fritz-Grice

@Steve Vaughan I definitely see what you mean, and I thank you for your input! I think the appeal in this strategy is let's say you have $50k in an over funded policy growing at 4% then I borrow $45k at the same 4%, use that as a downpayment on an STR, pay the loan back within a year or two plus adding profits from the STR to the Cash Value that's already been stored. Two roads to the same end I suppose but the concept of the Cash Value never going away, building faster because initial capital doesn't deplete and is guaranteed to grow I think is what gets me excited and was worth getting peoples opinion on!

Would you say this strategy should be more a diversification tool rather than a savings account alternative?

@V.G Jason as I understand it, and still doing research, but you fund your whole life cash value life insurance policy and use that as a savings account accruing 3-5% on your money. Then instead of depleting your money for let’s say a downpayment you borrow against the life insurance up to 90% of your cash value at around the same interest rate (making it a wash) to put into deals and you keep all your money growing in a guaranteed interest baring account while using low rate OPM to fund deals.

That’s been my major takeaway but still trying to do all my research before jumping in completely!

@Mike S. good point, thank you for the tip!

@John Perrings thank you!

@John Perrings thanks for your response! So in theory I should be able to borrow do from my insurance policy and since it’s using the cash value as collateral and has no terms (if I understand it right, if you never pay back the loan it comes from the death benefit ultimately) then a mortgage lender shouldn’t count it as debt. 

Hey everyone! 

Just bought my first property in May and looking to get into the next one soon and my question is: If I have my money in a Whole Life insurance policy and borrow against that for a down payment would that loan go against my overall DTI, in other words hurt chances of securing bank financing?

The concept of borrowing against your own Cash Value seems like borrowing from yourself so just curious how a mortgage lender would view these funds compared to say taking your downpayment from a traditional savings account. 

Thank you in advance!

P.S. I don’t yet have an insurance policy but after reading and watching a lot of content on the subject I just need clarification because it seems like having your money grow in multiple places is the way to go!