All Forum Posts by: Mark Welp

@Chauncy Gray

Having high cash value life insurance to store your liquidity is a great thing.  I have lots of it to store my cash and yes I could borrow against it to buy real estate, and sometimes I do for a quick cash offer.  But then I always turn around and go to my bank to get a 30 year loan.  I do not want my own "liquidity" stuck inside the walls of a house.  I want to get my money back, store it in my insurance policy, and then wait for the next opportunity to go buy another house.

30 year mortgages are fine; especially if you have the tenant paying down the debt.  Thanks,

Thanks for the info.  I invest in Cleveland as well!

@Allan Smith

I am a CPA and investor.  In any service profession, CPA, attorney, property manager, I would not put up with 2-3 week response.  I try and respond to my clients in 24 hours.

Get a new CPA.  I think your CPA/Bookkeeper is the most important part of your team!

@Jim Workman

Did you ever invest in their buy and hold fund?

I am considering it as well. Thx!

Agree with @Thomas Rutkowski on the over-funded permanent life insurance.  They get a a lot of negative press (which they should if they are not set up right), but if they are set up like Thomas is mentioning (for cash value), they are very powerful.  

@Sunshine Bizz

@Caleb Heimsoth is right.  If you are just doing a refinance for the $150k, no tax as a loan is not income.  If you selling it and have held it longer than a year, you are tax at long term capital gains rate.  Be aware of depreciation recapture if you do this.

@Chris C.

This is personal preference and has no right or wrong answer because it really depends on your situation.

For example, I have had clients who cashed out 401ks and IRAs and paid no tax because maybe them or their spouse qualifies as a real estate professional and they could use depreciation to offset a lot of the tax. Still have to pay penalties.

So again it depends on each situation.

Talk to your tax adviser and come up with a plan before you do it. Thanks!

@Caleb Heimsoth

Everybody has their own opinion, but 529 Plans really are not great products; they are a jail for your money and all you get is a lousy state tax deduction. The gov’t will punish you if your child gets a full ride and you don’t end up using it for education. There are a lot better ways to fund college in a tax favored environment than 529s.

I can share more if need be. Thx!

@Blair Lee

Policy loans are best so the interest still compounds uninterrupted.

@Ruslan Pislar

You are going to get tons of answers on this.

There is no right or wrong answer.

The best advice given to me is to invest in stuff you know and understand. If you know real estate, great, if not, learn it and then invest.

If you know the stock market, same thing.

Thx!