All Forum Posts by: Phil Avery

That strategy is what many investors go after. However your numbers are flawed in this example and it wouldn't be worth the time, risk, nor effort. 

If you have an 800k back-end ARV and get 70% LTV, your new loan would be around 560k (also note that cash-out refis have a higher interest rate that no one accounts for in the BRRRR method). You originally bought for 660k putting 20% down so your original loan to pay off is roughly 530k. You pay off the 530k with new 560k loan leaving you with 30k cash to recoup from your original 180k investment. You're still out 150k between original down payment and funding the rehab and this doesn't even factor in closing costs from the two closings, holding costs, and your rehab inevitably being more than you think.

I’m interested. 

Same here

ill private message you

I might be interested.  But you'll need to send me the address

@Phil Avery..as @Jay Thomas mentioned - the difficulty of this is finding a lender who understands and is familiar not only with an IUL, but with utilizing cash-value life insurance policies in a strategy at all.   I understand what you're trying to do as personally I don't have an IUL, but I have a certain type of policy that I draw funds from, but I funded it myself.  I also used to sell these policies, so I get it.  That's likely what you're going to have to do - get yourself into a financial position to fund the policy and then draw against it/use it how you want, whether that's for RE projects, hard money lending, etc. If your credit is good and financials look solid, you might be able to get lines or credit or something to fund the policy. Just my $0.02

Most lenders that I have seen are at a minimum of 12% with 3-5 points nowadays. You may need to shift your expectations as to your cost of capital.