How to Invest into Real Estate The Most Efficient Way

Many people are drawn to real estate investing for various reasons due to its potential benefits and advantages including;

• Potential for Passive Income
• Appreciation
• Leverage
• Tax Benefits
• Hedge Against Inflation

If you are currently investing in real estate or have aspirations to do so I will be showing you how to invest into real estate more efficiently - allowing you to get to your goals quicker and further growing your wealth.

The tool that will make this all happen is Tax-Exempt Insurance policies.

These policies can be used as a financial strategy that builds cash value and create a source of funds that can be used for a variety of purposes, including real estate investing. Cash value is the most significant incentive to whole life insurance as a real estate investor. It offers you simple and easy access to capital, no credit checks or applications and most importantly, policy loans do not show up on the credit bureau so it does not affect your buying power when it comes time to the mortgage application.

We can liken it to a savings account but integrated into a tax-exempt insurance policy. The policy earns dividends annually, and this grows the cash value. The fact that the cash value in these policies are vested and their performance is non-correlated to the stock market means they do not decrease in value.

A popular alternative to tax-exempt cash value is the savings account. However, you make almost nothing. On the other hand, the bank leverages these monies by loaning them out and earning higher interest rates. That is how the system is built - it encourages people to invest in government-provided savings options. A policy is a much better option if you want to save. For example, your savings attract a higher interest rate. The interests from these savings are tax-deferred, while you can generally access the cash value tax-free. More importantly, you enjoy asset protection in the form of death benefits - an essential tool for estate planning. No bank will offer you these benefits as part of your savings account.

A massive benefit for real estate investors is that whilst you leverage the cash values inside your policy for a down payment, reno's, etc. your policy will not stop compounding in growth. For example, if you have $100,000 of cash value inside your life insurance policy and you access a loan for a $80,000 down payment, your policy will still receive dividends based on $100,000.

Your money still grows while you leverage it for the investment making your money grow two ways at once. You will then accumulate more wealth over time allowing you to reach your goals in a quicker more efficient way.

If you refinance, sell, or are generating monthly cash flow your money has to go somewhere. What better place then into a policy where it will grow for the rest of your life, something your traditional bank cannot offer you.

It is important to talk about the death benefit aspect of the policy even though investors will look more towards the cash value. With how the policies are designed the dividends you earn go back into the policy to purchase additional death benefit. That is important for a couple reasons:

1) The policies are designed that by age 100 your death benefit and cash values have to match - so while you're purchasing more death benefit with your dividends, your cash values are working that much harder to have them match by age 100

2) While you're growing your real estate portfolio you will have a larger liability and your need for insurance will increase. The increasing death benefit will continue to cover your liabilities.

In conclusion, real estate investing when done properly, can be an excellent way to grow your wealth but with the implementation of a specifically designed tax-exempt contract you will be able to exponentially grow your wealth in a safe, smart, and efficient way. If you're interested in learning more feel free to send me an email at [email protected]