Sal Sofia LUTCF No Comments

Let Me Tell You A Real Estate Story

Do you know the best Real Estate purchase ever made?

Let me tell you a real estate story…

There’s a piece of vacant land I found that I believe will grow in value and therefore it’s a good investment and I want to buy it.

Since I’m still working earning income,  the prospect of capital gains is more appealing than current income from this property  (such as from an income residence or building).  Also, the income  I would get would only be skimmed off by the federal income tax bite.

So this vacant land is the best bet for me provided it grows in value over time to represent a fair return on the investment I will make.

Only thing is, since unimproved land is speculative at best and I’m not anxious to lose my money I need to discuss this purchase with my banker (lender) who will also have skin in the game and advise me of his interests of course.

I strategically plan my proposal, sit with lender and lay out my idea for purchase of this land along with certain assurances I ask the bank to provide me.

I express that the land purchase will be $30,000 but before I purchase I want some assurances to help me with peace of mind on several points so I may make this purchase without much worry or concern, as I feel it’s reasonable to share with the lender in any downside since we’re in it together so to speak.

So I lay out my proposal to the banker my considerations:

First,  I say I would like your contractual assurance that this land will be worth $100,000  35 years from now when I’m 65 years old.  And your guarantee that the bank will buy it back from me for that price at that time.

Second, I’m prepared to accept a reasonable shrinkage in market value should I decide to sell the lot next week, next month or next year as to be expected due to commissions, closing costs and taxes.

Third, regardless of the early  shrinkage however I want your bank to guarantee that every day of every year for the next 35 years the land will have a guaranteed market value which will be properly proportionate to the $100,000 which it will ultimately be worth, and after a year or two upon my request you will buy it back from me at its stipulated value at any time, with no questions asked.

Fourth, I want your guarantee that you will lend to me at any time as much as 100% of that designated market value and should I need to borrow from you that you will not run my credit report, investigate me, or require from me any financial documentation.  I will agree to you charging me an interest rate against said market value at 8% secured by my land, no matter how much you may need to increase this rate going forward with other borrowers and that you will hold the loan for however long I choose not how long you desire without demanding a repayment due or threatening foreclosure.

Fifth, I want you to guarantee that if I don’t live these 35 years that you will  take over the land on my date of death and regardless of what you then consider the market value to be, you will pay my heirs the full $100,000 which the lot will be worth 35 years from now even if my death should occur 35 months, 35 weeks or 35 days from now.

Sixth, I ask that you agree to absorb all federal income taxes chargeable to my heirs or to my estate when that $100,000 is paid out coming to them free and clear of taxable income.

Seventh, then I want this bank to give me the privilege of buying this lot over 20 years in installments.  In that case I will make no down payment, just the first of 20 annual  or 240 level monthly payments and I want the carry charge to be very low at 6.5% so that the 20 installments on that $30,000 property will be about $2,500 to $2,600 each.

Finally and probably most important of all, as part of my right to buy my land from you in installments, I want it agreed in event of my death before I have paid all 20 installments, the bank will at its own expense and out of its own pocket pay in one lump sum all the installments which would otherwise fall due after my death, so  that the $100,000 ultimate value of the land can be and will be delivered to my family immediately, just as though I had bought the land for cash instead of installments.

Q. Can anyone buy property of any kind with real value that can accomplish all of the buyer’s objectives?

Q. Does anything come to mind that can fulfill all of these financial benefits while including all of these guarantees on an investment of any type?

Q. Have you ever been exposed to anything that can offer such a remarkable assurance to cash growth, tax leveraging, collateral use,  purchase of liquid asset using the installment method, and a vehicle for investment return that self-completes?

There is one and its use has been favored by people in the know who have been exposed to it over generations.  It hasn’t changed much over the last 150 years and has stood up to the test of time.  Through all major economic disruptions, recessions, depressions, wars, period of gloom and abundant prosperity.  It has provided families and businesses one of the safest ways to grow assets and security that those holding it would never go broke, nor their family left destitute.

Do you now know what this amazing financial vehicle is that will do all the things this buyer above wants to do to favor them and not the bank?

It’s  life insurance!  Yes, life insurance is endowed by the nature of its design with the most creative, useful and well structured financial concepts created by man.  Given a chance to perform to its many truly unique  benefits you will be awarded with a financial program that is unmatched when compared to anything else.

It can be said holding cash equity life insurance is better than a portfolio of stocks, real estate, business ownership.  With this form of asset in your portfolio you are assured you will never be let down.

For questions on cash equity insurance policies, whole life or other examples, or for a review of your current insurance plans please contact us by clicking here.

Steven Maione No Comments

Should you use a Mortgage Broker or a Bank for a Mortgage?

Mortgage Broker vs. Bank when it comes to borrowing for a real estate purchase?


A. This is a very common question…  When you work with a Bank you are typically dealing with one product line. When you deal with a mortgage broker, you get the benefit of options and loan programs from many different banks and mortgage lenders all with only one credit pull. Additionally,  mortgage brokers close faster, save you money and often say yes when the BANK SAYS NO!


A. Unlike years ago, mortgage rates are now credit risk based, so credit scores can influence rates by more than 1.00%!


A. This is more a matter of the individual loan officer you are working with, rather than just being a mortgage broker benefit vs non-broker. Finding a mortgage broker with many decades of credit experience allows them to share with you how to improve your score which allows them to seek the best loan for your circumstances…


A. Beside the common one, that people can call references or check out reviews, Brokers are required to be INDIVIDUALLY LICENSED whereas bank loan officers work off the banks license.  Therefore, mortgage brokers must, pass a state and Federal Exam, Keep up with ANNUAL Continuing Education, have background checks, and even credit report and financial stability requirements.

I’m happy to help you answer any questions you may have or if you’re down the path of purchasing and need immediate assistance please contact me HERE.