Whole Life insurance to Purchase Property

New to Real Estate · Birmingham, AL · Member since 2023 · 4 posts · 11 votes

I have just started a Whole life Policy structured in a way that will allow me to buy Rental properties. I was wondering if anyone else has used this method and would like to hear their thoughts and experiences on it?

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Austin Johnson

Investor · Phoenix, AZ · Member since 2025 · 40 posts · 21 votes

10mo

I use this exact strategy in my life; proper design & provider is everything. I'm W2 & teach yoga/jujitsu + my business, so pairing with trusted turnkey providers & notes has worked wonder in the sanity currency department. Basic structure: leverage cash value (while it remains intact), purchase cash flowing asset, cash flow pays off interest, death benefit goes to trust system for your family and/or passion. Happy to share my structure & contacts.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
10mo
There are many classes that teach you about doing this. The reality is unless you have $1 million or a very significant amount of cash. I am not sure it is really worth it. The debate is always: are you better getting a term policy in using that cash to invest, or put it in a whole life policy to borrow and pay interest on it?
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Thomas RutkowskiPro Member
Financial Advisor · Boynton Beach, FL · Member since 2015 · 834 posts · 798 votes
10mo
There is a Facebook group with about 500 people doing this.

You don't buy real estate with your life insurance. You borrow against the Cash value to get the funds to use to buy real estate. The key is that the policy should be maximum over-funded. You'll know its properly designed when your ending Cash Value in year 1 is about 85-90% of the premium paid. If its lower than that, then its geared more toward death benefit than it needs to be.
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Austin Johnson
Investor · Phoenix, AZ · Member since 2025 · 40 posts · 21 votes
10mo
I use this exact strategy in my life; proper design & provider is everything. I'm W2 & teach yoga/jujitsu + my business, so pairing with trusted turnkey providers & notes has worked wonder in the sanity currency department. Basic structure: leverage cash value (while it remains intact), purchase cash flowing asset, cash flow pays off interest, death benefit goes to trust system for your family and/or passion. Happy to share my structure & contacts.
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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
10mo
@Thomas Bridges I have used it in the past. Just not really worth doing it again though. I don't know how much you frontloaded your whole life policy in this post but your monies can be used in more effective manners usually.
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