Seeking Advice on Structuring a $150K Loan for Property Investment via IUL Policy

[Phil Avery]

Hello Everyone, 

I am in the process of exploring a unique investment strategy and am seeking a loan of $150,000 at an interest rate ranging between 8-12% for a period of 5 years. My preference is for an interest-only loan, although I am open to an amortized payment schedule as well.

Purpose of the Loan:
The primary utilization of these funds would be to capitalize an Index Universal Life (IUL) Policy. The IUL Policy is intended to act as a revolving line of credit that will enable me to acquire real estate properties.

Security & Safeguards:
To secure the lender's interest, they would be named the primary beneficiary on the IUL policy. Additionally, the lender would carry a second-position lien on any properties acquired using this line of credit.

I would greatly appreciate any insights, recommendations, or potential challenges you might foresee with this structure.

Thank you for taking the time to read my post, and I look forward to your valuable feedback.

Best regards,

[Alejandro B Yoon]

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.