Does anybody know who and where I can get started in buying rental properties with life insurance policies? Are there any recommended insurance companies that can help me with this strategy?
Financial Advisor · Boynton Beach, FL · Member since 2015 · 833 posts · 798 votes
4y
@David Thuve, You're not really using life insurance to purchase properties. You are leveraging the cash value of a maximum over-funded life insurance policy and using the borrowed funds to purchase real estate. When you do this you are quite literally putting your money to work in two places at one time. The key is making sure that the policy is designed properly for minimum death benefit and maximum cash value.
Real Estate Agent · Portland, CT · Member since 2019 · 761 posts · 849 votes
4y
Hey David,
Yes it is possible with a whole/permanent life insurance policy. I myself am in the process of opening one up via Lake Growth https://lakegrowth.com/. I plan to to use it more like a savings account initially by taking loans out against the cash value for life's expenses and paying them back over time. Once my cash value is large enough, I will probably use that same cash value to fund deals. If you are interested, I would say reach out to them, book a call and learn a little more.
Scranton, PA · Member since 2017 · 168 posts · 137 votes
4y
Yep. I can help with any questions. There’s no one right company, it depends on your wishes for the plan and you personally what company makes the most sense. The biggest thing to realize is as David said there’s a funding period for the policy. I tell clients to plan on funding it for 3 years before pulling a loan big enough for a house.
Financial Advisor · Boynton Beach, FL · Member since 2015 · 833 posts · 798 votes
4y
@David Thuve, You're not really using life insurance to purchase properties. You are leveraging the cash value of a maximum over-funded life insurance policy and using the borrowed funds to purchase real estate. When you do this you are quite literally putting your money to work in two places at one time. The key is making sure that the policy is designed properly for minimum death benefit and maximum cash value.