What’s The Ultimate Financing Solution For Real Estate Investors and Entrepreneurs?
I had an interesting conversation with a fellow real estate investor the other day. He was trying to secure a HELOC on one of his properties. Unfortunately, he was running into trouble because of his recent switch to self-employment. While he has a lot of equity stored in cash-flowing real estate, he doesn’t have a sustained history of self-employment income yet. He didn’t get approved for the loan. What a great example of why it’s critical to build an alternative source of financing.
My preferred tool is whole life insurance, and here’s why:
1. No underwriting.
• No credit checks.
• No tax returns
• No back-and-forth with the loan officer
No underwriting (worth saying again).
All it takes is a phone call to the insurance company to request they deposit the loan proceeds to your bank account.
2. You don’t need to prove income.
Why do I need to provide months (sometimes years) worth of income proof to qualify for a loan against the equity in my own asset?
With policy loans, I don’t.
3. The financing is guaranteed to be available.
Contractual guarantees in the policy mean that this is the one source of financing that will be there when you need it.
If you’ve built equity in an asset, you’re more resilient if you can access the value. Unfortunately, this is not the case with financing from most banks.
4. You determine the loan repayment terms.
The terms of a life insurance policy loan repayment are unmatched.
Whether you want:
• interest only
• match the loan repayment with the investment payout
• skip payments when times are tough
You control the terms. Where else can you store your money and then leverage it with repayment terms like these?
Whole life insurance is the ultimate financing source for entrepreneurs and real estate investors because:
• No underwriting
• No proof of income
• Guaranteed access to financing
• Loan repayment on your terms
Do you have someone on your team helping you with these concepts? If not, please reach out to us at https://www.tieronelifeinsurance.com/contact/