Bought my first house with my cash value...

[REI_Velocity]

I have a couple WL policies and they are a really powerful tool. I bought my first house with the cash value (yeah, a cheap little investment house), and the leverage of my loan is pretty impressive. Anyone else using their cash value as leverage on high-velocity investments, versus just using it to redirect personal loans out of the bank's hands?

 

[pfg1]

I have a client that has done it several times. Having the available liquidity of his cv has helped him win a couple deals that he may not have, due to being able to say I'll pay cash and can close next week...vs drudging through the mortgage loan approval process for a business owner.

 

[Justin Bilyj]

Real estate investors may be the best for this imo - no more having to get a loan from a bank...

 

[pfg1]

Real estate investors may be the best for this imo - no more having to get a loan from a bank...

Yep. Its a total PIA for business owners and RE investors to get qualified, even when they can afford it. They usually have to jump through a ton of hoops...and I know from clients and friends of mine, they hate it. One client of mine owns alot of properties... he absolutely hates dealing with banks because its a nightmare for him to go through the process. He loves requesting money from the ins company, so easy and his rate is usually as good or better than investor loan rates.

 

[TampaHound]

I've found that a lot of people don't realize that you can use a life insurance policy in this and other ways. I remember one of my clients was surprised when I called a buddy of mine at a bank and helped them secure a personal loan by using their life insurance policy.

If done right, it's a great tool to help you build for the future.

 

[VolAgent]

Yep. Its a total PIA for business owners and RE investors to get qualified, even when they can afford it. They usually have to jump through a ton of hoops...and I know from clients and friends of mine, they hate it. One client of mine owns alot of properties... he absolutely hates dealing with banks because its a nightmare for him to go through the process. He loves requesting money from the ins company, so easy and his rate is usually as good or better than investor loan rates.

Find a better lender.

I've only bought two so far, but I didn't find it to be a huge hassle. They wanted tax returns for a few years, and explanations of any large deposits recently. When I first went to him, he got me terms as good as anyone else was offering, so I just went back to him for the second property.

I'm not saying using cash value is a bad idea, but some lenders are easier to work with than others.

 

[Justin Bilyj]

Find a better lender.

I've only bought two so far, but I didn't find it to be a huge hassle. They wanted tax returns for a few years, and explanations of any large deposits recently. When I first went to him, he got me terms as good as anyone else was offering, so I just went back to him for the second property.

I'm not saying using cash value is a bad idea, but some lenders are easier to work with than others.

I second that - such a hassle to get a loan. Bought my second duplex last year and they asked me about every line item or cash deposit like I was a freaking terrorist. Biggest hassle that can be avoided by owning a properly structured AND funded permanent life policy..

 

[VolAgent]

I second that - such a hassle to get a loan. Bought my second duplex last year and they asked me about every line item or cash deposit like I was a freaking terrorist. Biggest hassle that can be avoided by owning a properly structured AND funded permanent life policy..

Wow, complete opposite of what I just said...

I said, it wasn't a big hassle.

 

[pfg1]

Find a better lender.

I've only bought two so far, but I didn't find it to be a huge hassle. They wanted tax returns for a few years, and explanations of any large deposits recently. When I first went to him, he got me terms as good as anyone else was offering, so I just went back to him for the second property.

I'm not saying using cash value is a bad idea, but some lenders are easier to work with than others.

Well it depends on the business owner and investor and how they are positioned, what their business is, etc. I have one client that owns a business and owns dozens of properties. They ask for everything and and the kitchen sink and it usually takes months to underwrite.
Sure some lenders may be easier to work with than others, but most all will ask for alot of info. Doesn't mean you can't do it... and I have clients that do. Its nice to have options - that is for sure.

 

[VolAgent]

Well it depends on the business owner and investor and how they are positioned, what their business is, etc. I have one client that owns a business and owns dozens of properties. They ask for everything and and the kitchen sink and it usually takes months to underwrite.
Sure some lenders may be easier to work with than others, but most all will ask for alot of info. Doesn't mean you can't do it... and I have clients that do. Its nice to have options - that is for sure.

Yeah, I would definitely agree the more complex your financial life is, the harder it is to underwrite the loan.