Aspiring Real Estate Investor Just Starting Out

[Julez Seino]

Hey everyone, I'm very excited to start this journey in real estate investing. The 1st thing I know I have to do is get the funds. I'm shopping around for a Life Insurance policy to take out a loan against the policy for the funds. I've learned Whole Life is better Than Term Life for real estate investing. Please correct me if I'm wrong. So I live in NYC & looking to start out in the tri-state area. Being New York, New Jersey & Connecticut. And maybe Pennsylvania. I'd like to start out flipping single family homes and rental properties. I'm looking at homes under $200,000. Some of my questions are 

How much of an life insurance policy should I get?

What are those very 1st steps?

Do I start a LLC or a S Corp?

Any & all input is much appreciated. I'm coachable and want to learn this business. 

[Thomas Rutkowski]

Quote from @Lionel Thomas:

I just had this discussion a few weeks ago with a very knowledgeable Life Insurance advisor. Whole and Universal Insurance  allows you to withdraw, since they offer a cash value. This is not an overnight process, it takes years before you can actually withdraw the funds from your policy. 

Best of luck!

LT

Hmmm. I wonder what makes someone "very knowledgeable" That doesn't sound like a policy that a real estate investor would want. These are not your typical whole life policies where it takes years to build up cash value. If I design a policy for 5 years of $100,000 of premium, that policy is going to have about $85,000 of cash value that can be leveraged from day 1. Nobody would leverage life insurance to invest in real estate if they had to wait years to build up and access the cash value.

And they certainly wouldn't "Withdraw" it!!! The beauty in this approach i having your money work in two places at one time by Leveraging your cash value.