All Forum Posts by: Hank A.

@Hank A. generally these policies are sold with pro forma data showing how much your money will grow. Historically this data has not been accurate in most cases. Therefore, the "investment" is not a good one and you are better off buying a term policy for the amount needed and then taking the extra dollars not spent on the whole life and simply investing them directly yourself. I would look at the numbers very carefully when it comes to putting money in and then borrowing back. There are commissions and fees (interest) in there somewhere... Why would you borrow $1000 at "x" interest rate when instead you could just keep that $1000 separate and not have to borrow it at all?

Thank you.

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Originally posted by @Teri Feeney Styers:

@Hank A. - whole life insurance is not a good investment.

Thanks @Teri S. Why do you say this?

My understanding (I'm just beginning to learn what this is and I could be wrong) is that this is not an investment at all. It is merely a way to set up a personal bank from which I can borrow funds for investing in something else, like real estate. It is not an either/or, rather it is an enabler. Thoughts?

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Originally posted by @David B.:

@Hank A.

check out episodes 112 and 103 of the cash flow ninja podcast....these help shed light on the use of whole life insurance as a personal bank to buy real estate

I will look them up. Thanks!

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Originally posted by @Harjeet Bhatti:

You can use whole life insurance money for down payment that will come under seasoned money.

Thanks!

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If anybody here has experience with the following, would you please get in touch or share your thoughts on these topics (or point to a forum post or blog that discusses these)?

- "Investing" in whole life insurance

- Using dividend paying life insurance policies to finance real estate deals

Thanks!

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Find out what interest rate you can get for a maximum cash out refinance. Do the numbers with that interest rate. If your returns with a rent of $1500 pm are better than the new interest rate, then I'd say go for it. Use the cash to further your RE business. All the best.

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Based on profits, so rent minus all expenses including mortgage, insurance, taxes, capital expenditures, repairs, vacancy, everything that goes out of your pocket.

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If you can buy more investment property with the cash and earn returns of say 10% or better, or any number easily higher than the interest you are paying now, you'll earn better returns doing that than paying off the loans. That's what I would do.

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Hi Cain. This is not a response to your question, but rather a tip on posting messages online. Writing in ALL CAPS is considered the online equivalent of shouting, and slightly impolite.

http://www.simplehelp.net/2006/08/14/how-to-be-pol...

http://email.about.com/od/netiquettetips/qt/Writin...

Best,

Hank

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All Forum Posts by: Hank A.

Hank A. has started 3 posts and replied 37 times.

Post: Financing with Life Insurance

Post: Financing with Life Insurance

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