Last week was a good week for my business. I recruited two new agents. Both of the new agents are experienced real estate investors and hold Life Insurance licenses. I look forward to both of them helping educate real estate investors on how they can put their money to work in TWO places at ONE time by leveraging the power of permanent life insurance.
Most real estate investors understand the power of leverage. By using “OPM” other people’s money, investors can achieve higher cash on cash returns. For example, if you invest $100,000 and make $15,000 on a deal, that is a 15% return on investment. However, if you put $30,000 of your own money into the same deal and borrowed the $70,000 you needed to do the deal, your return on investment is now 50% before taking interest into account.
I show investors a way that they can make an “infinite” return on investment. If you don’t have any of your own money in a deal, your return on investment is infinite. This is kind of like the holy grail of real estate investing. It is a way of creating wealth out of thin air.
When we design a high cash value life insurance policy for a client, they are able to use that cash value immediately to secure a loan from the insurance company. If the proceeds of that loan are invested in real estate, then their money is working in TWO places at ONE time. The cash value is credited with interest each year and the loan rate is FAR better than any Hard Money lender offers. It’s truly a WIN –WIN for investors.
I have a lot of information on our website devoted to this subject.
https://innovativeretirementstrategies.com/resources/real-estate-investors
Please call and discuss this with one of our professionals before running out and implementing this. Not all policies and not all insurance carriers are the same. I have carefully screened both to find the most suitable.
