All Forum Posts by: Muhammad Amawi

Quote from @Thomas Rutkowski:

Quote from @Muhammad Amawi:

As someone who used to sell Whole Life Insurance I can tell you it is a great savings vehicle. It's best you get started now while you're young because it is very inexpensive for a ton of permanent insurance. 

Now when it comes to using the cash value down the road, understand that we're talking 10+ years down the road. The cash value will build quicker from having a larger policy. Also note that when pulling from some cash value accounts, their may be a requirement to pay it back. (you may be able to defer this to come out of the death payment.)

I personally do use whole life insurance for everything you stated above, as well as providing the financial protecting for my loved ones if something were to happen to myself sooner than expected.

Let me know if you need an agent reference.

 I think that you are confusing a typical whole life policy with a maximum over-funded policy. Several of the things you state are simply not true.

1. The cash value of a maximum over-funded policy can be leveraged from Day 1. If a policy owner puts in a $50,000 annual premium, they will have access to over $40,000 IMMEDIATELY (regardless of age. See #3)

2. Policy loans don't have to be paid back ever. There just needs to be enough cash value to secure the loan. This is how a Life Insurance Retirement Plan (LIRP) works. When the policy owner dies, the loan is paid off from the death benefit. When you leverage the cash value to invest in real estate, the policy owner will typically only pay the interest on the policy loan. They'll keep the loan in place for as long as it is making them money.

3. Age doesn't matter in a maximum over-funded policy. Sure, if you NEED a $1M death benefit, then it will get more expensive as you get older. But in a maximum over-funded policy, we typically start with the premium and work backward to find the lowest death benefit that will still legally qualify as life insurance. So whether you are 25 or 55, the same premium will result in roughly the same cash value ratios.

 I'm not confusing it with anything. As I'm sure you're aware, there are a thousand different options for whole life policies provided across the board that will slightly vary in how payouts and draws are made. You are speaking on a maximum over funded policy as where I am speaking of just one type of whole life policy offered on the market. In that exact whole life product I was referencing, when you take a draw from the cash value, it did have to be paid back.

Honestly, it seems as if we're talking about two completely different types of products that are structured entirely different. Everything I stated was true per the whole life product I was mentioning as I'm sure the same goes for the type of policy/product you're referencing. Thank you for your insight

As someone who used to sell Whole Life Insurance I can tell you it is a great savings vehicle. It's best you get started now while you're young because it is very inexpensive for a ton of permanent insurance. 

Now when it comes to using the cash value down the road, understand that we're talking 10+ years down the road. The cash value will build quicker from having a larger policy. Also note that when pulling from some cash value accounts, their may be a requirement to pay it back. (you may be able to defer this to come out of the death payment.)

I personally do use whole life insurance for everything you stated above, as well as providing the financial protecting for my loved ones if something were to happen to myself sooner than expected.

Let me know if you need an agent reference.

What's up BP!

My monthly networking event has been scheduled on Tuesday 11/22 from 6p-10p at Bartleby Cleveland. This is for anyone involved with real estate (real estate agents, investors, contractors, title, insurance, etc..)

I will be providing apps for everyone, don't be shy to order dinner and drinks for yourself as well. The staff and food is amazing!

This event does require an RSVP and there is limited space available. Please follow the Eventbrite RSVP link below. As the event grows I will make plans to accommodate for larger parties.

There are sponsorship opportunities available for this event and future. If you are interested please follow the Eventbrite RSVP link:

RSVP

I look forward to meeting everyone there!

Quote from @Nicole Heasley Beitenman:

@Muhammad 

@Muhammad Amawi Are these monthly?

Yeah, I will be hosting them monthly at the same location. Great venue to have good conversation in.

I will be putting together next months event starting next week and will have rsvp forms for attendees to fill out

Hey Saman,

You're able to do delayed financing for this to receive most of your cash back almost immediately after title is placed in your hand. 

However why not just secure traditional financing up front? Is there a reason you would prefer to use cash first?

Hey BP,

I'm hosting my monthly networking meetup at Bartleby in Ohio City tomorrow from 6p-10p. I will have appetizers provided for everyone as well.

Please let me know if you have any questions regarding the event. Looking forward to seeing everyone there!

Hey Austin,

I'm a lender native to the Cleveland area. Why don't we connect sometime this week. You, your business partner, my VP and myself can all get on a call to discuss and offer advice about REI in the Cleveland market.

Looking forward to connecting!

Hey Damein,

I'm a lender native to Cleveland and work at a local mortgage bank. I'd be more than happy to help you with any questions you may have. I just sent you a PM.

There's a few great agents I'm connected with in the Cleveland market. Let me know if you're interested

Hey I'm a lender,

So if you do go with FHA and try to get another FHA you can the timeframe and distance from existing FHA loan will matter. If you have any change in family size, or anything that would qualify you for the additional home purchase you can do multiple FHA loans.

As far as buying a home on FHA and then refinancing that to a conventional loan you would have to wait 6 months to get the full value of that home. If you are buying a Duplex on FHA you do have to have the intention of living there as your primary residence. If you decide to refinance to a conventional loan you will have to pay cost to do this again, however you can access the equity as a Primary home refinance, cash out.

After you get the first home, and if you decide not to stay there then you will want to make sure that the new purchase for a duplex is eligible for another FHA loans. I know that FHA did have a rule about it being 100 miles from existing home to get another FHA loan. If you end up switching to conventional on a refi then you will not have to worry about this distance. If you want to set up a chat we can walk through a few scenarios.