All Forum Posts by: Christopher Middleton

I was listening to some old podcasts from "The Real Estate Guys" today. They had a special guest speaking about using life insurance as a better bank account for REI's.

Has anyone used Whole Life Insurance as a bank account? What has your experience been? Any lessons learned?

I agree with the Hard Money Option (depending on your strategy of course).

If you plan to flip, or rehab then rent, then this should be your choice. You can get the property just as quickly. If you plan to hold the property, then it will cost you another close for the refi. You can leverage your cash much better this way.

Hard Money Loan = 70% ARV

If the deal is good enough, you could get it for 0 down, but those deals are rare.

If the property does not need rehab, then hard money is not the way to go.

What strategy saves more money (on average)?

For Sale by Owner

or

For Sale by Real Estate Agent

"Rich Dad, Poor Dad" - Must Read for any REI. This book is very well written and entertaining.

I second "The Richest Man in Babylon." Its a little difficult to read, but the message is incredible.

This is a good question. The only opportunity that I can think of is to use the same bank to finance the loans, and do multiple deals at one time. If you are loan shopping, just give the bank a ballpark of what your credit is. They do not need to take a hard inquiry on your credit to give you the information you need to compare loans.

I would recommend contacting a community bank that is located in the same community as the property you are planning to buy. They may be more willing to invest in their community than a national bank would be.

Also, explore owner financing. This is usually the best and cheapest way around strict LTV guidelines. Interest rates are generally above market rates, but not astronomical (9% is a good benchmark). It can always be negotiated with the owner.