SME financing: Infinite liquidity without any loan collateral

The split subscription right: The insurers’ solution for SMEs   Mr. C., an insurance broker, appears and presents the entrepreneur with the following model: You won’t get any more money from the bank – from me you will get an infinite amount of liquidity, and this without any credit security whatsoever. Your bank will also […]

Liability for real estate loans and equity financing with life insurance – banks, insurance companies and brokers are responsible for repayment

Life insurance policies for the repayment of construction loans The combination of several financial products (e.g. building loan and life insurance, real estate loan and building society contract) promises the investor additional income through possible interest rate differences or tax savings, and at the same time additional commission for the agent. However, it is not […]

Life insurance for financing and in insolvency

Differences in family provision and succession arrangements at home and abroad   The Federal Court of Justice (BGH) ruled in its judgment of 27 September 2012 (Case IX ZR 15/12) that the granting of an irrevocable subscription right – solely for the payment of a life insurance policy in the event of death – is […]

Finance and risk control

More wealth in a planned and controlled manner The own assets in a planned and future-oriented management as well as value-enhancing and risk-optimized investment requires the highest degree of Knowledge and time. Not everyone who has achieved a certain level of wealth is also a financial or controlling expert , so it is advisable to […]

The real estate GmbH as a supposedly clever tax saving idea

– Why smart private investors should give it a wide berth? – But woe, woe, woe! When I look at the end!!! (Wilhelm Busch, 1865)   Asset-managing LLCs are among the top topics of numerous podcasts penned by experts and professors. This construction is advertised, for example, with the fact that only 15% corporate income […]

Reversal of dangerous combined transactions: Revocation of credit-financed capital investments

– New ruling of the Federal Court of Justice facilitates the discharge of loan debts – It is part of everyday life at credit institutions to make even larger capital investments possible for the customer by making a large part of the necessary money for an investment available to him as a loan. As a […]

No speculation with death by transfer of the life insurance

The Federal Supreme Court (BGH, ruling of 27 June 2018, file no. IV ZR 222/16) decided that to insure the life of another (the insured person, CP), the consent of this CP is also required at a later date. This applies not only to the original conclusion of the contract, but also if only the […]

When real estate becomes junk real estate

How do banks and insurance companies finance usuriously overpriced real estate? Scrap real estate is a topic for up to more than two million affected investors. The Investors’ Council says: “Only invest in investments that you understand yourself”. This applies to the timing of investments and the ongoing monitoring of capital investments. More often, experts […]

Repay fixed-interest loans early

When selling real estate, the bank loans are usually repaid by the seller so that the property can be transferred unencumbered in the land register – with the existing encumbrances, the property would normally be unsaleable. The repayment of the loans is seen – merely – as a precondition for the bank to release the […]