4160 Temescal Canyon Road
Now that the market has begun to rebound, investing in real estate may be a viable way to supplement your portfolio for retirement. In fact, we provide financial coaching services to many people who have heard that investing in real estate is one way of saving for retirement in your 50s. Naturally these are people who are always in need of real estate loans, and of course they always want the best possible financing terms: a good interest rate, a low down payment, etc. Many of them would love to have no down payment at all, of course, but that just isn’t possible – or is it? Keep reading. As you may know, most mortgage lenders require borrowers to make a 20% down payment on a conventional real estate loan. That means that when the borrower rents the property out to a tenant, the return on investment will be around 20%. That’s definitely not bad. But what if that same borrower had access to a lender that would give him 100% financing – in other words, a real estate loan with zero money out of pocket? That seems like something you would love to have if you were saving for retirement in your 50s. Furthermore, what if he could get it as an unsecured loan? If he was able to do that, it would mean not putting up the property as collateral. And in addition to that, what if the mortgage lender allowed this borrower to create his own payment schedule on this real estate loan? Finally, the cherry on top: What if the borrower chose not to make any payments at all for the next five years, and the lender allowed it? If all of these stars lined up, then the borrower’s return on investment would be closer to 90%, meaning that he would more than quadruple his investment. If you could do that, you could probably be well on your way to saving for retirement in your 50s. But where would you ever get a loan like that? Let us explain. Here’s the first possibility: At certain financial firms, clients can open an investment account that will give them guaranteed access to the type of financing we just described; however, the clients must have a minimum $2 million account with the firm in order to qualify. Don’t have that kind of money to park into an investment account? You’re obviously not alone. So, here’s the second possible way to obtain this type of financing: guaranteed life insurance assets. Yes, life insurance assets. It’s not well known, but definitely worth looking into if you are seeking a way of saving for retirement in your 50s: Certain life insurance companies will hold your money in guaranteed life insurance assets, and they will lend you money in the same manner we described above. Unlike a large financial firm, these life insurance companies will not require you to keep $2 million in an account in order to give you the loan you need. Instead, they offer a practical lending opportunity for the average real estate investor. In this difficult lending climate, there is still a way to access to the kind of loan you need to buy your next investment property; you just have to know where to look for the opportunity. Guaranteed life insurance assets can potentially offer you that access; if you are saving for retirement in your 50s and want to learn more, you can inquire by calling us.
Withdrawals and loans from a life insurance policy reduce the death benefit and cash value, may increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. Life insurance should be purchased by individuals that have a need to provide a death benefit to protect others with insurable interests in their lives against financial loss. Life insurance is not a retirement plan, investment, or savings account.