All Forum Posts by: Bobby Paquette

@Bobby Paquette

I think new builds are a great option these days!  If you work with their in house lenders as well, you're able to get way better rates than most traditional lenders.

I am all aboard house hacking, and specifically non-conforming duplexes.  Everyone needs a place to live, and why not do it in a creative way where you live in a portion of your home, and rent out the other.  

This market is all about being creative right now.  Those that are creative are finding the deals and getting ahead.  Those that are not, are sitting on the sidelines hoping a traditional deal falls in their lap.  You have to be willing to get outside your comfort zone right now, and try something new. Thats my take on it.

Best of luck!

Kenny

I just pay her when I ask her to do something. For example, she helped me show houses to a few different prospective tenants, and coordinated getting minor repairs completed in between tenants last year. I paid her around $300 for that. She was happy and I'm all about keeping key people happy! 

@Bobby Paquette I still self-manage one of my properties (in Pensacola, FL) and for that one I have a trusted "boots on the ground" real estate agent that I pay to handle in person things as needed, like checking on the house, handling tenant turnover, etc. She has a spare set of keys. 

@Bobby Paquette

It's like having your own bank, where you can make money in two places at once by using a whole life insurance policy that grows and then you take a loan based on that policy's value to invest in real estate or other sweet deals.

Here's how it works in simple terms:

1. You make a deposit into your policy.
2. You take out a loan using the policy's cash value as collateral.
3. You invest that borrowed money 

Now, when you've got real estate deals exiting and giving you some cash, instead of stashing it in a low-yield bank account, you can pay off the loan on your policy and keep funding it. That way, you've got your capital safely stored while waiting for your next big investment.

Policies are backed by AAA insurance companies, so they're considered more secure than regular banks. No need to worry about them pulling a loan out from under you - that is where the term your own bank comes from.

Plus, you get some asset protection with life insurance policies depending on what state you live.

Some insurance policies can have high fees, it's not a scam like some regular whole life policies. The key is doing the minimum or 10% insurance. But the agents normally don't like that.

Remember, it's not an investment method itself, but it's a smart move for those who want their money working harder in real estate and beyond. 

Also IULs are more investment in stock market tools. They don't have as much liquidity as wholelife policies - the Paid up additions are not a large so you can't over fund as much.

Disclosure as well, I'm a General Lines Agent. I would completely agree with @Matt Ruttenberg on an IUL being better suited for the average real estate investor. The tax benefits mixed with the 0 cost loan capabilities are what most investors are looking for when it comes to finding low cost capital for RE down payments, renovations, etc.

Just make sure you work with an Agent who is a licensed Fiduciary and understands real estate investing as well. There are far too many life insurance agents out there that might not care about your financial situation or real estate goals and will just push any product on you for a commission.