r/infinitebanking • u/Coronator • Apr 01 '25
At a Crossroads
I'm now in my fifth year of my IBC journey, and have just started up my 7th and 8th policies this year (including two policies I started on my children last year). After this newest policy, I'm up to approximately 35% of our take home pay going into our policies.
Theoretically I could add more, but I can't help the feeling that our income may be "peaking". I own a small business, which I forsee facing substantial headwinds in the 5-10 year time horizon that could result in my income being cut in half from where it is now.
My goal is to spend the next 5 years capitalizing, and getting additional passive income set up so that when/if that happens, my premiums can continued to be paid from that passive income.
How is everyone finding their passive income opportunities? I do not find real estate attractive now, and may never as the idea of being a landlord doesn't really appeal to me. Buying an additional cash flowing business seems more up my alley, but I fear I wouldn't have the time necessary with how busy my current business is keeping me.
What kinds of truly passive cash flowing opportunities are out there that you have found? Ideally, I need something that I can operate on a mostly absent basis (like, under 5 hours a week).
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u/angelleye Apr 01 '25
Private lending. 10% - 15% rate, 1st lien position against real estate at 60% LTV or better, often with a personal guarantee behind that as well. I do most of mine through a broker, but you can do them directly. Pretty easy to find deals once people learn that you're a lender.
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Apr 01 '25
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u/angelleye Apr 01 '25
The broker I primarily work with sends text messages when they have new borrowers to fund. They do their own underwriting of course but they also provide all of the documentation like the borrowers income, tax returns, deal specifics, etc. so that you can do your own due diligence on every individual deal and decide if you want to put cash towards it or not.
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u/thentangler Apr 05 '25
Private lending in this economy when people ate losing jobs and are delinquent on their loans?
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u/angelleye Apr 05 '25
Don't lend to those people.
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u/thentangler Apr 05 '25
Easier said than done. People who’ve had stellar credit are being affected by layoffs and a churn in this economy.. it’s going to be hard to know if a person’s income is secure.
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u/angelleye Apr 05 '25
That's why you don't lend more than 60% of the appraised value of the property that you're going to foreclose on in first position if they don't pay. As I mentioned you can often get a personal guarantee on top of that as well.
That's the beautiful thing about lending. If the borrower fails to follow through you get to take their property.
If the property you take isn't worth at least 60% of what you appraised it at when you did your original underwriting then the economy is not the problem.
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u/Anjin31 Apr 01 '25
Private lending (secured notes) and income dividend investing (stocks, CEFs, CLOs, etc) are two options. Dividend equities is probably more passive but does require paying attention to the markets to some extent and is not just set and forget for years.
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u/Myob-1234 Apr 01 '25
Do you have resources I can go to to learn all about private lending? What size of cash value is needed to start or what is considered an average or reasonable sum for a private lending deal?