All Forum Posts by: Jason DelCollo

Numbers are correct. And our group will assume personal guarantee of the remainder of the loan.  You have done these deals before it seems...anything I should be looking out for?  Thanks. 

Hello all, Would love to hear feedback on this deal I have come across. Broad strokes - very broad... 12 unit apartment complex - 3 Quads Sale price in 2015 - 1.4 Million Mortgage = $982k AT 4% for 20Y Net YEARLY CASH FLOW - $45K Deal is to purchase LLC for $300K and keep current financing in place ANYONE DO THIS BEFORE? UPSIDES? DOWNAIDES? INPUT APPRECIATED THANKS J

@Dave Van Horn

Thanks for the info. I would like to hear more about your fund note investments.  

Also, since we are both local do you work with any banks that allow you to use the Policy as collateral so you can deduct the interest from it as a business expense?  I understand this can be more favorable from a tax standpoint then borrowing from the policy. 

Thanks again. 

Thanks for replies. 

We do max out all tax-deferred space. 

We are also looking into IUL and as well as WL. Pros and cons on both sides so still exploring that. 

Looking for people's experiences/recommendations using policies as collateral or loans from to invest in RE or notes or liens, etc...

Any examples of good or bad would be great as well as people's strategies. 

So my wife and I have been fortunate financially through hard work and lots of schooling. Long story, as short as possible, we are mid 30s with $600,000 retirement/investment portfolio. We max out 401ks and backdoor Roths for past 3 years. We also contribute $5000 to daughters 529. We save about $50,000+ in addition to above and invest in taxable (small amount) or keep cash reserves. We have suitable insurances, including Term Life. 

We are considering pursuing a yearly HECV WL policy for between $30k and $50k annually. The policy design allows high early cash value and we will only make payments for 5 years and the amount will continue to grow. 

We plan to use this as part of Emergency fund also as a start to investing in Real Estate by using policies as collateral or borrowing from policy. 

We never would of considered this plan unless we already maxed out tax deferred accounts. The relatively low IR/Dividends of the policies are a small concern but I've examined scenarios of WL and term and invest the difference. 

Any input would be greatly appreciated.