I tell you all the time that investors LOVE infinite banking (IBC), and our guest today is a perfect example of that!

Lane Kawaoka is the founder of Simple Passive Cash Flow and has been in real estate investing for over a decade. He started in single and multi-family properties and now focuses on large syndications.

Today, Lane is telling us how he uses Infinite Banking as a liquidity source with his syndication deals. Listen and learn more about his strategy.

Key Takeaways

Infinite Banking gives investors more liquidity.
As cheesy as it sounds, it does make you become your own bank essentially.
As your real estate investing portfolio grows, strategies like IBC become more and more useful.

Transcript

Interviewer: Today, we’re joined by Lane Kawaoka from Simple Passive Cash Flow. Lane is an expert in real estate investment and a syndicator with over a decade of experience, moving from single-family to multifamily investments across the country. Lane, thanks for joining us.

Lane Kawaoka: Thanks for having me. I’ve been using infinite banking as a liquidity source for a while now. Initially, I started with a policy where I was putting in $50,000 a year, overfunding it to take advantage of the cash value. This approach might seem unconventional to some, but it’s a strategy that sophisticated investors understand.

Interviewer: Can you share how you’ve utilized infinite banking in your investments?

Lane: Sure. After starting my policy, I quickly began to use it for investing in real estate deals. I didn’t always have cash on hand, so I tapped into my policy’s cash value. This allowed me to participate in several deals without depleting my liquid assets. Over time, I’ve repaid the loans from my policy, replenishing the cash value and keeping it ready for future opportunities.

Interviewer: It sounds like infinite banking has been a crucial tool for your investing strategy.

Lane: Absolutely. It’s not just about having the funds available but also about the flexibility it offers. For example, during the pandemic, I had to inject personal funds into some projects. Having access to my policy’s cash value made this possible without a traditional capital call.

Interviewer: How do you manage the loans from your policy?

Lane: The key is understanding that it’s a tool for leveraging your investments. While the policy grows at a steady rate, the real opportunity is in using those funds to generate higher returns elsewhere. It’s a mindset shift from traditional financial planning, focusing on leveraging debt wisely to expand your investment portfolio.

Interviewer: Any advice for investors considering infinite banking?

Lane: Infinite banking is a powerful tool, especially for those who are actively investing and understand the value of leveraging their money. It’s not just about the growth within the policy but how you can use it to fuel further investments. It’s about strategic financial management and making your money work harder for you.

Interviewer: Lane, thank you for sharing your insights on infinite banking and how it’s played a role in your investment strategy. For those interested in learning more about Lane’s work, check out Simple Passive Cash Flow.

Lane: Thanks for having me. It’s always great to share how these strategies can work in real-life investing.