Hi all. I have come across another concept of financing real estate. I had waited to share because I wanted to get more information. After watching an info DVD and hearing about it through a conference call and then talking one on one with a company that works this concept and is very knowledgeable. This may help someone else and I wanted to share. If you already are aware please share your insights as well.
Have you heard of 'Becoming Your Own Banker'. It's actually a book by Nelson Nash. The concept is also known as Infinite Banking Concept or IBC. I am intrigued by this idea. You very much need to think outside the box and have patience with this system. Basically it's a Dividend Paying Whole Life Insurance Policy. You must do your own research of course. Send me pm if you want to know the company I am working with. This works because as you build the death benefit you also receive the dividends back to yourself. Also depending on the value you're able to borrow, take a loan, against the policy and pay yourself back the loan payment and interest. It only works when you pay yourself back.
Also as it builds you actually use multiple policies. YOu can use the loan for anything you want and it's tax free. Life insurance has been around much longer than our tax system. It's a good idea to read the book and it's easy to read and follow and not a big book either.
I will share for you what I'm starting with. I am pulling all of my other investments because I'm spread very thin and found out I'm paying like $200/month into things making very little interest so I'm combining them into this which will be approximately $6,000 or more. Then I will pay the $200 into the policy. I will be able to take a loan in the amount of like $1,200. This isn't to buy something new but use it for everday things or pay off a debt or even real estate if I wanted. For those of you that are debt free or financially free this could be a huge benefit for your future deals. Then I will pay myself the loan back including interest over like 2 years time but next year or after 1 year I can take out another loan like $1,600 and you just keep going and at the same time my death benefit grows too. I will start with like $144,000 policy. I hope this does open our eyes to another way of building our investments and use with real estate. For me I really like the idea of paying myself back instead of the bank.
Blessings to all,