Establishing Your Real Estate Investing System

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real estate systemsJust as buying a house may be the largest financial transaction you ever make, selling one might be the most profitable.

Many individuals look to Real Estate as an opportunity to build a fortune. And it’s true, that Real Estate is a time-honored investment opportunity that has afforded many people the chance to gain wealth. However, we often hear about the reverse, or negative side of Real Estate investing – individuals embarking on owning properties, to later realize they were in over their heads and lost money.

Besides the horror stories of failure, Real Estate is still such an attractive wealth building option that people continue to regularly do it. The question then becomes, “How do I safely invest in Real Estate?”

Using a Real Estate Investing System

Patrick Donohoe, President and CEO of Paradigm Life, recently met with Mike Hambright of In Mike’s discussion with Patrick, both determined that most people fail with Real Estate Investing because they lack a proper system of execution.

Understanding the importance of using a proper Real Estate Investing system and execution method for property investing, is one of the reasons why Mike invited Patrick onto his FlipNerd VIP show.  Mike was aware of the private banking system – Infinite Banking – but wanted to really understand how the concept can be used by investors.

Whole Life Insurance

Whole Life Insurance is a financial product once commonly used by Americans to save for retirement and build wealth. Today, many people associate permanent life insurance with high premiums that only provide a death benefit. Though Whole Life does provide a death benefit, the living benefits of the product, are what make it a foundational asset that builds and secures wealth.

Whole Life insurance innately provides tax-deferred growth (possibly tax-free growth), market security, liquidity, and a steady rate of return. Those attributes, are what allows for an individual to use the product as an ideal vehicle for banking. One of the best components of a permanent life insurance policy is the cash value – which provides liquidity at any time and for any purpose.

Providing Your Own Capital

When you borrow against your policy’s cash value with a policy loan, you are accessing capital to reinvest in other performing assets – like Real Estate. Because you can borrow against your policy, your initial cash value is still earning interest. By becoming the financier as well as the borrower, you are maximizing the use of your dollar. The same dollar is used to purchase (or invest) while simultaneously earning an interest rate – making up for the opportunity cost of cash.

Executing Your Banking Policy

If contributing to your fortune via Real Estate investing is your goal, using Permanent Insurance will help you get there. Many successful investors have already used the infinite banking principle.

Dolf de Roos has said, “Permanent life insurance with high cash value, is the ideal vehicle for Real Estate investors because it is the most similar financial product to Real Estate.”

For further information:

Read: Powerful Cash Management Strategies

Listen: Turn Your Ideas Into Money


Q: Why is it important to establish a real estate investing system, as mentioned in the article?

A: Establishing a system provides structure and consistency to real estate investments. It helps investors set clear goals, make informed decisions, and manage their real estate portfolio effectively.

Q: What are some key components of a successful real estate investing system that individuals should consider?

A: Key components may include defining investment objectives, conducting thorough research, creating a budget, diversifying the portfolio, and establishing a long-term strategy that aligns with financial goals.

Q: How can individuals get started with building their own real estate investing system, even if they are new to real estate investments?

A: New investors can start by educating themselves about real estate, seeking advice from experienced investors, and gradually building their knowledge and portfolio. It’s essential to start small and gain experience over time.

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