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Ep 180: Utilizing Life Insurance to grow your STR portfolio w/ Adam James and Terrance Hutchins!
Description
Adam James returns with financial planner Terrance Hutchins to explain how they fund short-term rental arbitrages using indexed universal life insurance policies. Instead of parking $10,000 in a savings account earning 1%, they deposit it into an IUL earning 5-12%, immediately borrow 90% back at 4% to fund the arbitrage earning 60-70% returns, and the insurance company credits growth on both the cash value AND the loan balance. The episode walks through a 16-year illustration showing $176,000 net growth versus $66,000 from arbitrage alone, plus a $500,000 death benefit and tax-free access to funds.
The hosts also discuss COVID's impact on drive-to markets versus fly-to destinations, why Adam switched from buying to pure arbitrage in overheated Oklahoma, renting units before securing the lease, management deals structured around anything over $2,400 monthly, using Starbucks openings as gentrification signals, and why appreciation trumps cash flow in wealth building. Terrance explains the tax advantages, loan structures, and why this strategy works best for investors with steady cash flow in higher tax brackets.
Work with us. Interested in professional management or consulting?
Myka — Sharebnb: www.sharebnb.com
Steve — Argest Rentals: www.ArgestRentals.com
Sign up for PadSplit with Steve's link and get a free 1-on-1 PadSplit strategy call with Stevie Stacks: padsplit.com/hosts
Myka's other podcast, Entrepremarriage — building wealth without losing the marriage: youtube.com/@Entrepremarriage
All our links: linktr.ee/liveletthrive
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