All Forum Posts by: Deb S.

@Josh St Laurent the link in your reply isn't working?

Also, I disagree with your reply to @Laura Higgs. I am an agent and while you are partially correct - the majority of life insurance policies are structured for leaving the death benefit to the insured's beneficiaries.

However, when a client asks for an 'infinite banking' policy, they are asking for a vehicle to accumulate cash that has tax advantages, moderate growth, liquidity and no exposure to market volatility. These types of policies are structured the opposite of a typical policy where the goal is the large death benefit amount. 

The goal of an IB policy is cash accumulation - not death benefit. Policies like this have a minimum allowed death benefit amount (as specified by the IRS) based on several factors. This is the goal because the client wants the majority of the premiums being paid to go to cash value and compound interest over time and NOT go towards the cost of insurance-hence the low DB amount that starts the policy. 

@Laura Higgs I would recommend an established company-especially if you are new to the industry. You want somewhere that provides training and and resources for you to reach out to for help when needed. I work for a broker so I'm not a captive agent. This means I can sell insurance from many carriers (not just one) and if I leave to go somewhere else, I take my clients with me so they don't get assigned an agent they don't know.

What would be your plan to pay back the HELOC if you were able to get it? Use your W2 income? If you have a 401k at your employer, maybe you can take a loan from there instead? The interest rates are usually lower than most loans.

What is your intention with the property after it is renovated? If you're going to buy it from the seller subject to the existing mortgage then yes, you need the correct Subto documents. 

If you're planning to sell it and split the profits with the seller, it sounds like you would want a novation agreement. 

@Chris Seveney that is NOT the PAID Subto group. That is the FREE Creative RE group. Subto is a private FB group. 

Not sure why everyone wants to jump on the 'bash Subto' band wagon? There's good and not so good people in every group out there. 

I was asked about MY experience in the 4 years I've been in Subto. I provided an answer. That's all.

Hi @Jessica Fish are these 401k accounts with your current employer? If they are not, you can roll over your 401k into a Self Directed IRA (SD IRA) and invest in real estate that way.

You could also apply for a HELOC on your home to use the equity for whatever but obviously you have to make monthly payments so ideally you'd want to make sure the cash flow from a RE investment is higher than your loan payment.

Another piece of unsolicited advice.... If you don't have any liquid reserves, you should build up 6 months of expenses as an emergency fund (in case you get laid off, disabled etc). So lower your 401k contribution so you can build up some liquid cash you can use without penalties.

@Account Closed my experience over the last 4 years has been worth every dime! The community is where the value is - not that the knowledge and legal docs aren't important cause they are. I've been a PML on over a dozen deals, I'm part owner of 2 mobile home parks and part owner of a SEO start up biz.

All of these deals were brought to me from the subto community-I didn't have to go looking for them and that's the power of this community. You can do an entire RE transaction just by using the resources in the Subto community. 

We have wholesalers, people with subto assignments, others that do dispo, PML/PMPs, transaction coordinators, Title Companies in most states that specialize in Subto/creative finance (brand new thanks to Pace), property managers for STR/MTR, people looking to JV on Padsplit/co-living, JV partners for mobile home parks (MHPs)/RV parks, self storage, opportunities for multi-family (MF) syndications, etc. The list goes on.

The knowledge sharing is very powerful. Everyone is there to help or point you in the right direction if they can't help with your specific issue. You'll want to network, network, network so that you meet people knowledgeable in areas you're not. Many, many people have met and built their own teams within subto. People will post looking to add an underwriter to their team or a closer for example. The only way you won't be successful is if you stay silent! I have absolutely no regrets. It's a lifetime membership which I've never seen anywhere else and it more than pays for itself.

Yes, there is free information out there. But if you need help implementing that information, figuring out all the pieces to make an opportunity successful (buying a subto, doing a wrap, a lease option, seller finance, for example), what legal documents you need, a partner to help you fund your deal, then that is where the value of the subto community is. 

If you know everything already then you don't need to join a mentorship. But if you want to learn and grow your portfolio and even have a partner or 2 on a deal, then Subto community might be for you.

If you do decide to join, let me know and I can send you a link for a discount. Deb

I'll pass that along to my clients...........with Infinite Banking policies.

 I guess you think the Rockefeller family made terrible investments then. The entire Rockefeller family used permanent life insurance to pass down their generational wealth for decades. The Vanderbilts who were as wealthy as the Rockefellers at the time did not use this strategy and eventually their net worth evaporated due to many things.

Unless you have a license to sell life insurance and know how to structure the policy for the client's goals, you shouldn't be knocking products that can and do benefit MANY people -  especially those who have maxed out other tax deferred accounts.

By the way fees are paid over the life of the policy, not all up front. Like most things in life, you don't get something for nothing.

I have to ask: do you have to move to San Diego and be close to the ocean? I'm not familiar with California but I know living in Florida, the closer you are to the ocean the more expensive it is to live. It seems where you've chosen to move doesn't line up with your goal of reaching financial freedom?

I agree with you that I would not want to tie up all that money in home equity when it can be working for you to make more money. Have you thought about buying a duplex or other MF property where the renters can help pay the mortgage? That would allow you to put down less knowing you have that income coming in.

Otherwise, is it possible to consider moving somewhere more affordable so you can reach that financial freedom you want?