All Forum Posts by: Kyle K.

@David- Excellent points. Everything has its ups and downs.

The way insurance companies are able to create such a product with limited downside risk, yet still tied to the market, makes sense to me. They also fully disclose fees, which are very expensive for the first ten years (having an EIUL is only beneficial long term). However, after that, the fees become a much smaller percentage of your cash value account and will end up being less expensive than mutual fund fees. Once again, we're talking long term.

I don't think EIULs are terribly hard to understand. However, I would like to know if anyone's actual experiences with it mirror their expectations. If you jump into EIULs, you gotta do it with both feet.

I look forward to hearing how that goes. And please shed a little extra light as to how you're going about this strategy.

@Kevin, thanks for the quick rundown of an EIUL for those that may be unfamiliar.

But, really, is there anybody out there with an EIUL policy? I'd love to hear about it, especially if you're not an insurance broker.

I've heard some intriguing things about EIULs which are basically investment grade life insurance policies that can build up cash value for tax free use later in life.

Does anyone on here have an EIUL policy? If so, would you please explain your experiences with it?

If you have entertained the notion of getting an EIUL but concluded you'd be better without one, why did you come up with such a solution?

The thought of tax-free money from an EIUL combined with tax-sheltered real estate investment income sounds like a great recipe for a comfy retirement, but I'm not sold on the EIUL. Your take?

Another question to consider: is the $4000 you have in reserves all of your extra "emergency fund" cash for your portfolio? If so, I'd build up my reserves to at least $10,000. After that, I agree that a mixed strategy of mortgage payoff and capital savings is preferred.

I've known Jeff for a little over a year now and I'm currently one of his clients. As I'm sure you all know, the guy knows his stuff. And he tells it straight, no B.S.

What you might not know about him is that he's got all the integrity in the world. On one property, I accidentally signed a contract that stipulated closing costs being paid by myself when, verbally, it had been understood that the seller would be handling those. Somehow, I overlooked it-- but Jeff found the mistake, sent me the new, amended correct contract, and everything went as planned.

On a recent personal trip to San Diego, I called Jeff with virtually no advance notice for a quick meet. As expected, Jeff had no problem going out of his way to grab a cup of joe. And Jeff has always been there to discuss any of my questions and concerns.

So, David, to answer your question, contacting Jeff was definitely worth it.

Safeco. I haven't had any claims yet but their rates are reasonable and they receive good ratings.

Part-Time. Will consider leaving my full-time job when my rental property income exceeds my wage income.

Don't go into anything alone. At the very least, have the guidance of an experienced, reliable, trustworthy real estate investment professional. He can save you so much heartache, it'll be worth it.

That sounds like a bad situation, but definitely take it as a lesson learned.

When investing in homes like this, what is your end game? Do you think that one day income from properties like this will provide you with retirement income? Are you expecting appreciation?

From the sounds of it, you're getting a cheapo property in a poor area whose best years are far behind it. If you're not a fix and flipper and you are investing to accumulate cash flow, this is what you have to consider:

-Is the income going to be reliable? In a crummy area with a horrible economic outlook, the answer is probably no. You're guess is as good as mine but I wouldn't bet on it.
-Are you going to be increasing your net worth? Cheap properties like this don't take advantage of financing and a corresponding gradual increase in equity. With financing, even if you assume no appreciation in the value of your investment property, you'll still increase your net worth paying down your property. Paying cash, your equity increase is tied exclusively to the market (which doesn't look good).

If you're looking for a reliable stream of income, I wouldn't invest in crappy properties in bad areas with dim futures. If you want to pick up a cheap place for the educational experience, then by all means take it as that-- an educational experience. I would save up your capital to purchase quality over quantity. It will benefit you now and in the future.

Hey Ken,

Do you operate each property you own under a different DBA?