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The Infinite Banking Concept (IBC) can have several benefits for real estate investors, including:

• Access to capital: By borrowing from the cash value of a whole life insurance policy, a real estate investor can access capital at a lower cost than if they were to borrow from a traditional bank. This can be used for down payment, closing costs, renovations or any other expenses related to the purchase or management of the properties. 

Plus the unstructured loan from an insurance company, a real estate investor's favorite, doesn't affect your borrowing capacity. Per example, if you tell the bank that you are going to borrow money against your personal home equity line of credit, they may not grant you the 80 percent mortgage because you will be financing 100 percent of the purchase price. If you say you will take out a personal loan, same result.

However, if you borrow against this specially designed life insurance policy, the bank will not consider that loan for borrowing purposes. So you can compound your money inside the policy while you leverage the money you already have in a real estate transaction. Yes, you read this correctly. In other words, you are allowing your money to do more!

• Tax benefits: The cash value of a whole life insurance policy grows tax-deferred, and the death benefit is typically paid out tax-free. This can help to reduce the tax burden on the investor's real estate portfolio.

• Forced savings: The regular premium payments on a whole life insurance policy force the investor to save money, which can help them reach their financial goals, such as buying more properties or diversifying their portfolio.

• Protection for key employees: By using the cash value of a whole life insurance policy to purchase key man insurance, a real estate investor can provide financial protection for their key employees if something happens to them.

• Business continuity: In case of death, the death benefit from the whole life insurance policy can be used to keep the business running, or to buy out the investor's share of the business.

It's important to note that while some real estate investors may find the concept of IBC useful, it's not suitable for everyone and it's important to consult with a financial professional like our company to determine if it's the right strategy for you and your real estate business. 

You can contact us to learn more about it and see how you and your business can benefit from it by booking an appointment with no obligation.