Real Estate Investor
Presentation
Pedro A. Palicio, MBA, Ph.D.
Isis B. Palicio, LUTCF, MBA
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Real estate investor example
- Client is a 35-year-old male.
- Has $500,000 in qualified plans.
- If client withdraws the whole amount from the qualified plans, he may owe up to $250,000 in taxes and penalty (39% taxes and 10% penalty).
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$ 500,000 rental property purchase
- Client purchases a $500,000 rental property and takes a $250,000 mortgage (50% loan-to-value) for 30 years at 4.5%.
- A 0.66% gross rent is conservatively low, and it amounts to $3,300 per month in rental income.
- The mortgage payments amount to $1,267 per month and the interest is deductible.
- Monthly taxes and maintenance estimated at $800.
- Free cash flow is $1,233 per month, or approximately $15,000 per year, which is used to fund an Infinite Banking policy.
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Benefits of a mortgage
- Mortgage is serviced by cash flow from rental property.
- Mortgage doubles your purchasing power.
- Mortgage doubles future equity value.
- Interest is tax deductible.
- Use future depreciated dollars (mortgage payments) to pay past tax liabilities.
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Issues to consider
- Do you expect tax rates to increase in the future?
- With inflation eroding the spending power of money, do you think you will need more money to have the same lifestyle in the future?
- If we have another stock market correction like 2001 and 2008, do you want to have the same outcome you had before?
- If there was a way you could get guaranteed returns, and additional upside on your money without risks, would you want to know about it?
- If we can show you a way to shift your Retirement Plan money from future taxable to future tax-free income and at the same time double or triple your net worth, would that be of value to you?
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Mortgage/Balance
| PAYMENT | PRINCIPAL | INTEREST | CUMULATIVE INTEREST | BALANCE | |
| End of Year 1 | $1,266.71 | $343.05 | $923.66 | $11,167.48 | $245,966.96 |
| End of Year 10 | $1,266.71 | $513.94 | $752.77 | $102,229.33 | $200,224.13 |
| End of Year 20 | $1,266.71 | $805.34 | $461.37 | $176,236.07 | $122,225.67 |
| End of Year 30 | $1,269.32 | $1,264.58 | $4.74 | $206,018.21 | $0.00 |
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IBC Policy/35 Year Old Male
| CASH VALUE | DEATH BENEFIT | |
| End of Year 1 | $12,009 | $1,250,000 |
| End of Year 10 | $167,591 | $1,250,000 |
| End of Year 20 | $446,914 | $1,250,000 |
| End of Year 30 | $821,229 | $1,612,839 |
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Result of a 35 Year Old Male
| MORTGAGE BALANCE | IBC POLICY CASH VALUE | PROPERTY EQUITY | TRANSFER ON DEATH (TOD) | TOD / ORIGINAL MORTGAGE | |
| End of Year 1 | $245,966.96 | $12,009 | $254,033 | $1,504,033 | 6.02 |
| End of Year 10 | $200,224.13 | $167,591 | $299,776 +/- Mkt Value | $1,549,776 +/- Mkt Value | 6.20 |
| End of Year 20 | $122,225.67 | $446,914 | $377,774 +/- Mkt Value | $1,627,774 +/- Mkt Value | 6.51 |
| End of Year 30 | $0.00 | $821,229 | $500,000 +/- Mkt Value | $2,112,839 +/- Mkt Value | 8.45 |
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Summary
- Mortgage is serviced by cash flow from rental property.
- Mortgage doubles your purchasing power.
- Mortgage doubles future equity value.
- Interest is tax deductible.
- Use future depreciated dollars (mortgage payments) to pay past tax liabilities.
- The Infinite Banking policy allows the real estate investor to either use the cash value to enjoy a tax-free retirement income or to purchase additional rental properties.
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Important
By simply redirecting to your Infinite Banking policy the principal and interest that you would have paid to traditional banks and financial institutions, you will increase your own wealth.
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Why Universal Wealth Managers?
- We educate, coach, and serve a diverse clientele that includes families, business owners, professionals, and high-net-worth individuals throughout the United States.
- We have completed and excelled at the highest level of training available in the industry for Infinite Banking Practitioners and continue to master new and upcoming applications of the Infinite Banking Concept.
- We are always available to address your thoughts, ideas, questions, and concerns.
- We only offer products from highly ranked mutual life insurance companies.
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Designing Infinite Banking
Systems Isn't Just One Of The
Things We Do;
Its The Thing We Do
If you are ready to break your paradigm and
investigate this further, please
call us toll-free at 1-844-I GET IBC (443-8422) or
ContactUs@InfiniteBankingSimplified.com
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