The Infinite Banking Concept for Real Estate Investing

The Infinite Banking Concept for Real Estate Investing

We’ve had many guests on the podcast who have educated us on the Infinite Banking Concept. This is a strategy that uses whole life insurance to create a banking system within your own finances. It’s an incredibly effective strategy, and can be used for purchasing cash flowing real estate.

But for whatever reason, it’s a strategy I have not yet utilized in our personal portfolio. In this video, Natali and I are starting to get our feet wet in the world of investing with life insurance! We’ll give an overview of some of the questions we asked an expert, and how we plan to use this tool in our overall investing strategy.

You'll learn about the value of having whole term life insurance to invest. We’ll share how we started down this rabbit hole, and how we plan to move forward using the Infinite Banking Concept. We'll talk about our initial hesitations about this strategy, and more! If you're interested in making your money work for you, this video is for you!

VIDEOS ABOUT GETTING STARTED IN REAL ESTATE

VIDEOS ABOUT REAL ESTATE NEWS

SUBSCRIBE AND JOIN OUR AWESOME COMMUNITY:

SUBSCRIBE TO THE iTUNES PODCAST:

FOLLOW ME ON SOCIAL MEDIA:
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

[joeneri]

If structured properly this is the most power financial foundation that you can give to yourself and your family. I have 2 policies and I use it for real estate and other investments

[shutterassault]

Can't wait to follow your journey. I've had a whole life insurance policy setup for this infinite banking concept and have had a good experience so far. Have taken out multiple loans for down payments on houses, etc. Typical money sitting in your whole life insurance account will make about 5% tax free annually. When you borrow funds from the account you have to typically pay back 5% interest on the loan. The part that you can dictate is the payments. I can wait 6 months to start, or pay $100/month and then increase it to $500/month, and then stop paying, etc. Whatever you want, as long as you pay the annual small amount they tell you to keep it going. I funded another policy recently and was able to borrow about 90% within a week. Didn't have to wait any longer. And the amount you can contribute annually is related to your MEC limit, something setup by the IRS I believe. The goal is to never take out any money from your accounts, but to loan it out. Even if you never pay it back. Then you won't have to pay tax. Any loan you take out will simply lower your death benefit.

[leodominguez]

Great job guys, plus the Insurance Company will pay you a dividend at the end of the year. This process really works!!

[dougcauseysolutions]

I have purchased an IUL and am in the 7 year process of front end funding it out of my IRA. It is taking 7 years so that my IRA distribution will not put me into the next higher tax bracket due to the withdrawal. I am over 59.5 but I was concerned about the continued IRA growth and the eventual RMD and the tax implications of any future withdrawals. I was impressed enough with the policy I became an agent while also investing in real estate. And, in just a couple of years I will have sufficient cash value to borrow against. Remember - I will have real estate depreciation along with an interest expense that I will paying myself back into the policy. BIG PLUS - the policy also has the new living benefits! At a minimum, check to make sure your policy has the new living benefits. This is an investment and is a WIN - WIN - WIN - WIN payable to yourself!

[zacheryhutchison]

Garret Gunderson from wealth factory teaches this and calls it cashflow banking. I really like the idea. Over funding it and paying yourself back the interest rather than the bank. It's the same structure large companies use to fund pensions. Still learning before kicking it off myself.

[FJRamos]

Interest on the loan is paid to the insurance company and not back to yourself. Dividends are paid to you and determined by the overall performance of the policy..

[realjohnmcneill]

I started this strategy earlier this year and there are a few things that I can help clear up.
1. You are purchasing whole life insurance which has a cost or premium.
2. You have the option to structure the policy for "high early cash value" which allows you to accumulate a cash value that you can borrow against.
3. The cash value in the policy can grow at 7-8% per year depending on the dividends being paid out.
4. The loan that can be taken from the policy is actually a loan from the insurance company, where basically your cash value is the collateral. So, the insurance company will loan you up to 90% of your cash value in the policy. Your cash value continues to grow because the insurance company made you the loan. You can pay the loan back however you want or never pay it back.

On the surface this may not make sense, but I recommend speaking with a specialist in High Early cash value whole life policy.

Most insurance agents don't understand the concept. It's all in how the policy is structured. I can recommend my agent if anyone wants the info.

[StephenGardner]

I've been very happy with my plan for the last decade. I liked it so much I got into the industry and have been helping people really understand this tool. It's great for car purchases and real estate. We've done a few real estate deals that did well.

[applechili]

Another benefit is one payment versus multiple credit card or HELOC payments.

[kellypatterson]

I had a whole life insurance policy for a while. The entire first year is all interest unless you front load the policy. The concept will work but I would suggest to set up the policy small enough just to cover your borrowing needs. FYI there are still fees to pay to borrow your money from your policy.

[Nbody]

I love my Policy. I am glad to see the concept catching on. i use my policy every year.

[vangustia]

Mr. Morris you are missing the point that whole life insurance helps continue your exponential growth of your money. You dont deplete your assets to buy properties.

[WealthWisdomFinancial]

I have used this strategy to grow our former business and ultimately put a down payment on my first home. This whole strategy lead us to even found Grandmas Wealth Wisdom. Thank you guys so much for the work you guys do!

[nathannichols]

Never give someone else control of your cash. They change the rules they keep your cash and your out of luck.

[mrj-charles]

I would never mess with a whole life policy but either way I always enjoy your views and opinions, Thanks for sharing

[arturomarin]

Very good information! Please I would like more info of where to get the insurance .
I been doing my research but definitely you guys are pros, and for that reason I subscribe. Good job guys!!!

[coachetch]

....Forgot to mention, .... YES! - Also an Excellent Consideration: HARD-MONEY LENDING!...

[williamwatts]

Are there any updates on this? Did you ever get to use this process? Did it work?

[carlosibanez]

I love you guys! Thanks for all your help! Y'all are so beautiful inside and out! ♡♡♡♡♡ Thanks again guys!

[andyb]

Which life insurance company offers this whole life policy. If you ever cancel the policy, what happens to the cash value, do you get it back.