I know there’s some of you who are out there wholesaling and making $20-$30,000 a month, but if you stop buying and selling, you know your income is going to go down. So you think about it, and then you may decide to keep a few of your very best deals to try and create some cash flow in your business. But really, what is your long term strategy for building wealth?
Russ and Joey from Wealth Without Wall Street break down for us the idea of infinite banking. Nobody’s really getting excited about a savings account. The interest you earn is just dinky, and it’s really more like a holding place or a warehouse for your money. In a savings account, your money is accessible, but that’s just about it. Infinite banking is redirecting your savings into whole life insurance policies, just like the bank does.
The policy Russ and Joey recommend is a dividend-paying whole life policy that’s in a mutual life insurance company. This isn’t like your uncle’s policy with some sort of steady premium. And it doesn’t have an immediate return either. But we’re playing the long game here, with an eye on a horizon at least 3 or 4 years out.
This is not a traditional whole life policy where you put in your $500 a month and have a million-dollar death benefit. You’re going to be putting a lot of cash into this vehicle that’s immediately accessible, and that you can use as collateral to borrow money against. Russ and Joey share:
- How their clients use these policies.
- How to reverse engineer a policy based on the cash flow you need.
- How they use the whole life policy in their own lives.
- How you can use this policy in real estate deals.
I know this is a whole new topic for a lot of you, and I know I had trouble wrapping my brain around it in the beginning. That’s why Russ and Joey are offering my community access to their courses. They really believe that you need tools, you need education, and you should definitely understand this before you start investing in it.
Watch and Learn:
Listen and learn:
- How to borrow against the collateral of an insurance policy.
- Joey and Russ discuss the differences between term and whole life insurance policies.
- They share how their clients are using these policies to fund real estate deals.
- The difference between a savings account and a warehouse (hint: not much).
Mentioned in this episode:
- Joe’s Book: REI Secrets
- Apple Podcast Reviews
- WealthWithoutWallStreet.com /JoeMcCall
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