Infinite Banking Concept, Cash Flow Banking, or Bank on Yourself

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Has anybody used a IBC, CFB, or BOY policy to purchase real estate and use the returns to pay back the policy at higher interest rates than the policy charges? If so, what are the pros and cons? What are your thoughts about IBC, CFB, or BOY? Thanks.

It is a bit complicated, but you purchase dividend paying whole life insurance. After several years, depending on how much premium you pay into the policy then you can borrow against the policies cash value. The policy continues to grow even though you borrow the cash value against the policy when it is designed with a non direct recognition. I don't know if this is all making sense. I have read Nelson Nash's "Becoming Your Own Banker", Pamela Yellen's "Bank on Yourself" and have watched countless videos. One website that is pretty comprehensive so far is:

Let me know what your thoughts are on this.

@Wai Fung Many people (not all, but a fair amount) regard these "concepts" as scams. Why would you pay money for an overpriced whole life policy, just so you can borrow the money back? By using those concepts, you likely wouldn't make anyone rich other than your insurance sales agent. There's far simpler (and better) ways to get into real estate investing.

Originally posted by Wai Fung:
Just wondering if you read the books and feel strongly about your comments?

I haven't read the books. My opinion is based solely on my own research. (The concepts have been around for years.) I don't really have any interest in reading a whole book on the subject.

However, with that being said, the only thing I feel strongly about is that it's not for me. I have no idea if it's right for you. (I still don't care much for the general philosophy behind the concepts though.)

Let me ask you, is there something that particularly interests you about it over other, more conventional, ways of borrowing for real estate purchases?

@Wai Fung are you trying to decide whether or not to buy the insurance then borrow or are you saying you have already bought it?

In either case you will need to analyze the RE deal to see if it is good. As far as the insurance goes this may not be the best place to debate insurance, although there are a few agents that hang out here.

I apologize for starting this thread I see older threads where this comment would have been answered. My plan was to fund this policy and use the cash value from it to purchase REI and use the cash flow to pay back the loans I take out to grow the CV. Then repeat this as many times as possible.