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As far as the second example it sure is. It depends on what their needs are. They can pay a higher interest rate to the insurance company because they are a real estate investor and they need time on his project before he starts paying the loan back or he has an option to use a regular lender, my point they have options. Especially right now it's when it's harder to get a line of credit.
I am one of the biggest advocates for CV life insurance on this forum. Im all for using every aspect of the policies benefits.
However, you said "use it as collateral for a loan from a lender". That is not infinite banking. That is no different than if I used a CD or just a savings account for collateral for a lender based loan.
Now in this example you mentioned taking a loan and paying it back. That is what infinite banking is based around. Not trying to be difficult, just trying to keep things technically correct since there tends to be lots of questions on here about IB.
And Im not really a fan of the "systems" around IB (Ive attended multiple Nelson Nash workshops in the past), just a fan of simply using the CV in the various ways possible. As you pointed out, it can be a great asset for real estate investors.