Real estate investors have added incentive to utilize the banking concept. Whether utilizing this strategy for downpayments or for entire real estate purchases, the infinite banking system enhances the real estate investors overall returns.
When real estate investors utilize the infinite banking concept in conjunction with real estate purchases, they create a way to access capital more efficiently, allowing for advantages of additional tax breaks. Additionally, the policy dividends provide an added stream of growth that enhances the overall growth of their real estate purchases.
As banks and lending institutions have tightened down their lending guidelines, more and more real estate investors have found it hard to continue purchasing property. As you learn to create your own private banking system, you create a continually growing pool of money, allowing you to have access to more capital, and therefore the ability to acquire more real estate.
Whole Life Insurance
To fully maximize the benefits of the infinite banking concept for your real estate business, a correctly structured whole life insurance policy is key. When structured correctly, whole life insurance has particular characteristics not found in any other vehicle. These characteristics allow it to operate more like a banking system than an insurance policy, and enhance your real estate investments. Some of these benefits include: Liquidity, Use, Control, Tax Free Growth, No IRS involvement, Creditor Protection, Guaranteed Growth, and no probate. These advantages allow policy cash values to be easily accessible, and to accumulate quickly. By utilizing whole life as the basis for your banking system, you are able to redirect traditional finance costs back to yourself, allowing you to be move on to other real estate purchases.