Why is it you always find what you’re searching for in the last place you look?
Jolene, like most real estate agents, had been looking for other ways to add another 2-3 transactions a year to her business. She knew she was in a very competitive market and would have to look under every rock to find them.
To find success you have to keep turning over rocks
The senior homeowner market seemed a likely place to start
Because the Southern California market is “inventory challenged” she reasoned that an additional two or three listings would be the surest way to meet her production goals. With a little research she found that more than 70% of the homeowners within her target area were 70+ years old. Which made them prime candidates to be downsizing.
During one of her farming excursions she met Frank and Lola. They owned their home free and clear and were looking to downsize and be closer to their kids, grand kids (and soon to be great grand kids) in the Inland Empire. But they were house rich but cash poor and had just about given up hope.
Frank and Lola’s dilemma
Jolene talked to them about selling their home and paying cash for a smaller home closer to their family. But Frank was resistant to the idea. He said “then I’d be in the same position I’m in now but in a smaller home and a little bit more money in the bank”.
Jolene had Frank and Lola meet with her lender to see how much loan they could qualify for. That way they wouldn’t have to pay cash for their new home and put more money in the bank to help them with their retirement goals. Unfortunately because the primary source of their income was Social Security they couldn’t qualify for enough loan to make this a feasible option. Plus, Frank was in no mood to carry a mortgage payment in retirement, so they continued to search for a solution.
Jolene always pictured herself as a problem solver, but she was stumped (for now).
Reverse Mortgage to the Rescue
Jolene had heard about Reverse Mortgages but most of her information was really misinformation, so she wasn’t sure it was the right thing for Frank and Lola.
She finally made the call that would not only solve Frank and Lola’s dilemma, it would prove to be the solution she had been looking for as well.
We met with Frank, Lola and Jolene and mapped out a strategy wherein they could sell their $600,000 home and purchase a new one using a Reverse Mortgage. They would only have to make a down payment of about $250,000 (60% of the price of the new home). Not only would they not have a house payment, they could pay off their car and credit cards and put about $300,000 in the bank.
Everyday 10,000 people turn 65
Reverse Mortgages will continue to be a major factor for baby boomers to achieve their retirement goals.
Shouldn’t you be helping them?