All Forum Posts by: Ben Rutkevitz

Hi 

@Sean Abrams, welcome to BP. It is a great community! I agree with all the comments here. @Adam Anderson made an especially good point about partnerships. My first real estate investment was with a business partner. He found a house in CT with a great price and I provided the funding. 

If you find a good deal, the money will be available. 

Is there a meetup this month?

@darrensager   

@George Carnicle, how liquid are your funds. Meaning how long does it take for you to execute a loan against your policy? what has been the Net returns on average in your policy?

Thank you @Derek Lacy. 

Can any of you comment on how accessible my money would be from these policies. Meaning, if I wanted to take a loan out against my policy is it relatively liquid (days) or would I have to wait weeks/months?

Thank you @Frank S. @George Carnicle @Derek Lacy @Bryan Hancock @Steve Kordish, this is exactly what I was looking for when I turned to this community. To be specific, I am less interested in the death benefit (life insurance) aspect of this plan. Paradigm Life is asserting that using the whole life insurance policy in the way they propose is a better alternative than keeping money in the bank because of the following:

- the returns are considerably higher

- i can access the profits tax free through getting a loan against the policy

- even when i take a loan against the policy, the entire cash value is still earning dividends and "guaranteed" returns.

The agent has been upfront with me that the first few years of the policy are going net high losses because of the upfront fees, but over time, 5-7 years, the policy returns will make up for the initial fees and I will start being able to access my cash through loaning against my policy while still seeing my policy grow. 

@Derek Lacy, can you speak more about the time horizon and returns. The policy my agent is proposing is saying I will be at about par within about 6 years. Of course that assumes that the returns are what they say they are. He says that initially the policy will return between 3-4% net. That includes the dividends and guarantees combined. Does that sound logical?

Hi @Steve Kordish,

Thank you for your input. What they are pitching is to use my whole life insurance policy as a self banking tool. So they are suggesting to put capital into my whole life insurance policy and then when i need funds for real estate investments, or any other investment, to take a loan from the insurance company against the value/funds in the policy. They claim there are certain tax benefits to this structure as well and that this system is vastly superior to the traditional banking one. 

Has anyone on this forum had experience with this company? Paradigm Life claims to use Whole Life Insurance Policies as a financial tool and since i trust this community, I am reaching out to get some referrals.

Hey @Steven Pescatore, welcome to the community!

I did my first flip earlier this year and this community was super helpful. I work in Englewood and am looking at several opportunities for buy, fix and hold in Jersey City, Bloomfiled as well as others. Let's stay in touch and compare notes, I find its always good to connect with other investors in your region.

thank you so much @Eric Munson

I have great news! we finished rehabbing the home and put it on the market two weeks ago. We had 6 showings in the first 2 days and got 3 offers! one of them was at full ask at 189k. We are very happy with the results and have hit a home run on our first flip. We were all in for about 110k so the profit on this one is solid. We are looking forward to the next one, ideally it will be a multifamily we can fix and hold. If anyone has properties in mind but not enough capital, let me know and I would consider another JV.

@Barbara G..

Here are pictures of the house once complete.