Mortgage Life Insurance
I am having some success with raising private money. I have set the goal of 2 million and I think I am about 500-600K a month into it. I have followed JOhn Ullmer and Alan COwgills plan. I offer Life insurance to the note holders. I am 42 and I find the life insurance procedure a little tedious, every time I need to raise the limit the send a nurse out to poke me and do a workup as part of the 10-15 day procedure to get my insurance.
I would like to get strict Mortgage life insurance that is tied to each loan and not a hassle each time as I'll have 5-10 a month at times.
Any suggestions or companies that I should look into??
Thanks,
Randall
You could consider one large policy and change/add beneficiaries as needed...
This is really the only way to avoid the meds every time. It will be "imperfect" in the sense the amounts and amoritizations won't be full time periods as you add investors, but it would be easier on you...
This may be the way I have to go, I may have to look for a new policy as the ones my agents talk about have a hassle adding and deleting insureds.
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Quote:
On 2004-11-06 09:00, Stockpro99 wrote:
This may be the way I have to go, I may have to look for a new policy as the ones my agents talk about have a hassle adding and deleting insureds.
I assume you mean "beneficiaries". It shouldn't be that big of a hassle. Besides it's your right as the policy owner...
John Ulmer has one policy and the beneficiary is a trust at a bank. In the event of his death the trustee is directed to payout every one of his private lenders. All the private lenders need to do is go to the bank and collect a check.
There would be some cost associated with doing this but I do think this is the best way this sort of thing can be handled.
Also I previously was very active in trying to raise private money. I have had zero luck trying to raise the capital that I need.
I work with properties in the $100-350k price range and the best I could find is $25-50k. Obviously not everyone can have 1st mortgage on a house of that nature and I didn't feel comfortable putting pooling money like that.
I'm just curious of your experiences. Thanks and good luck
Frogger's solution is a great idea. You need to get one policy sufficient to cover your outstanding obligations and distribute the proceeds accordingly...
This is probably the way that I will go. Seting up a trust account should be very easy, for the moment with about4-5 investors I will just put them down as additional insureds for the loan amounts.
I have had a lot of luck so far, my banker has been bringing in the investors and has helped me set my plan up etc.
I have a conference call with her and another investor friend of her's tomorrow who is interested in 200-300K and may be able to raise more through his friends. I find that people with money know people with money.
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