Infinite banking, also known as bank on yourself, is a financial strategy that involves using cash value life insurance as a savings and investment vehicle. This method can be used to fund a real estate investment, as the cash value of the policy can be borrowed against for large expenses such as a down payment on a property.Here’s how it works:
- Purchase a whole life insurance policy from a reputable insurance company. This policy will serve as your “bank” for the purposes of infinite banking.
- Use the cash value of your whole life insurance policy to fund your real estate investment. Unlike a traditional mortgage, which requires you to make monthly payments, using the cash value of your policy allows you to access funds without incurring interest or other fees.
- Once your real estate investment has been made, the property will generate income, which can be used to pay the premiums on your whole life insurance policy. This will keep the policy in force and continue to grow the cash value, which you can then use to fund future investments.
- As your real estate investment generates income, you can also use the funds to pay yourself dividends from your whole life insurance policy. This can provide you with a steady stream of passive income and can even be used as a retirement strategy.
Overall, using infinite banking to fund a real estate investment can be a smart way to access the funds you need without incurring debt or paying high interest rates. By using a whole life insurance policy as your “bank,” you can take control of your financial future and build wealth for yourself and your loved ones. Consult with a financial advisor to see if this strategy is right for you.