Capital, Real Estate, Cash Flow, and the Velocity of Money
Source: ThinkRealty, Gary Pinkerton | 2 May 2022
In the Declaration of Independence, Thomas Jefferson added the phrase “life, liberty, and the pursuit of happiness.” It was inspired by the 17th-century scholar, philosopher, and thinker John Locke, who wrote “life, liberty, and the pursuit of property.”
Locke was resolute to the idea that common property or possession converts to private property or possession with the combination of a human’s mind, body, and hands—which are nobody’s but that person’s. Because they are natural rights, he believed, the pursuit of private property is, in and of itself, a right. As a dissenter to the Crown, Locke insisted on freedom and civil rights. He inspired many other intellectuals, creating an immense desire to make the great exodus to America and pursue property, which history has proven many times is a vital component of freedom.
The Asset That Works
Why does real estate work so well? Abraham Maslow’s hierarchy of human needs explains that human motivation starts with basic survival needs—what he identifies as physiological needs. No other motivation can exist unless the base level of human needs is first met. Among these basic needs is shelter.
Real estate houses everything in our country—businesses, retail stores, government, and families. Everything has a connection to real estate. In America’s debt-based society, investors can be a landlord with very little money, protect themselves from inflation and allow the tenant to pay off that debt, gain tax advantages, and receive cash flow along the way. There simply has been no asset in world history that has outperformed real estate long term.
Another Asset That Works
Real estate is not foolproof. Despite the inherent benefits, there are inherent risks. That is why the wealthiest individuals in the world have a comprehensive plan that consists of other financial products and strategies that help mitigate these risks and add to their overall growth of wealth.
One of those is the Perpetual Wealth Strategy. The key features of this asset are privacy, tax-free growth, and guaranteed financing.
The asset is a uniquely designed insurance policy offered by a mutual life insurance company. The purpose of the vehicle is to build liquid, immediate wealth that can be used right away. It’s a personal banking system without limits and shielded from tax. Sophisticated business owners and investors have used this account as a foundation for their wealth for hundreds of years without fail.
So why isn’t this account mainstream today? For the wealthy, it is. For the rest of us, Wall Street has drowned out everything but its own financial agenda. But now, with the right advisor and knowledgeable company, you too can establish an effective foundation to magnify your real estate gains. The key features are more valuable today than ever before.
This unique asset is 100% private to those searching. As stated, it is a private account a private individual sets up with a private insurance company. As a real estate investor, you value asset protection—it is a step you take to avoid circumstances that could jeopardize your wealth. This private account can also protect your liquid capital.
One of the biggest wealth destroyers is taxes. The private banking system described here existed well before 1913, when the tax code was created. Today it is the only account left in which you have tax-free gains and are not forced to withdraw the money at a point in the future like you must with Roth IRAs—the other account that has a tax-free growth characteristic.
A real estate investor’s best friend and worst enemy is financing. When credit is good, money is cheap. When credit is bad, money doesn’t exist or is drastically expensive.
The guaranteed financing feature allows an owner to borrow from this account at the rate that it is earning. The loan is with the mutual insurance company and is contractually guaranteed when you sign up with the account. You can borrow up to the full amount of your account.
The financing feature is like a line of credit, so when you make payments to your principal loan balance, another loan can be taken at any time—as long as the total loan balance does not exceed the total cash value in your account—without any repayment requirement. Use it for any purpose—it is excellent seed capital for any real estate deal.
There is another feature that separates this financial vehicle from any other: There is a legacy value. The legacy value pays out tax-free upon the passing of the person who purchased the account.
Legacy value can be extremely helpful for real estate investors who would like their estate to own the real estate, but perhaps not the debt they used to acquire it. The legacy value can also act as the sum that transfers into a trust for use by your inheritors to attend college, go on family retreats, start a business, start a family bank, or invest in more real estate.
The Greatest System in the World
Using this unique insurance account with real estate is one of the best ways to build wealth and financial freedom. Real estate, this unique insurance account, and the implementation of the velocity of money is a method the financially successful have used for generations. Now you too can implement the Perpetual Wealth Strategy.
This system is not taught by traditionally trained financial advisers. It is used by specialists who understand the value of the account based on the features explained, and most importantly, knowledge about how it can be applied to real estate, specifically.
Now you have the opportunity to marry the most sought-after asset in history (real estate) with the most time-tested financial vehicle available today to create wealth, financial freedom, and a legacy for your family.