Real estate investors doing 3 flips a year average profit of $60k per deal. Typically using his own profit to fund future projects and sometimes borrowing from banks if more favorable depending on terms and rates. Currently sitting on $430,000 in cash.
Place $150,000 in a WL plan and $150,000 in an IUL. Then $9,000 per year for 7 years in each policy totaling $430,000 from the cash now transitioned into the two policies.
Use $75,000 from the WL policy immediately this year for a new project. Earning 5.8% tax-free on the guaranteed cash value from the WL contract, and borrowing at 4% effectively “getting paid” to use his own cash rather than depleting any of the $430k as he was before. The project was completed in 4 months paying 4% interest on the policy loan. Let the IUL “cook” for a longer-term and be used on future projects.
