Posted by alexander on December 03, 2004 at 10:14:48:
As Life agent. i know that you can take a loan out on the face amount. Also, That’s a tangible contract on your life expectancy. within 2 years paying into the policy you have equity toward the face. Some companies can use that in lieu of credit. In other words they buy the paper as collateral. they know your paying to have that “just in case”. They know they can get some or above thier ROI by reselling or keeping your risk.
Commercial financing - Posted by JoeS
Posted by JoeS on November 30, 2004 at 17:22:55:
I have a question for Ray…have you heard of a lender that uses paid-for Life Insurance Policies to fund commercial deals? I don’t know the specific name of the Bank that holds the funds on deposit, but the Broker for the lender approached me to funnel deals his way, for a fee of course. I understand it to work this way…A potential deal is examined by a department and when approval is granted a conference call is set up between the lender, the borrower and whomever else is concerned with the deal.
If everyone is agreeable then a comittment is sent out and upon signing by the borrower he/she also pays a $20K deposit to the lender. Yhis is a credit back to the borrower at closing. Supposedly the lender gives 100% financing. Any ideas on this? Thanks.