Downsize with a Reverse Purchase and buy an investment property with money saved
Most real estate agents don’t know that you can purchase a home with a Reverse Mortgage and avoid both a mandatory monthly mortgage payment obligation and sinking a huge amount of money in an all cash transaction. The downsize and investment property strategy suggests you inform your clients about putting half the amount of a new home down as cash and utilizing the Reverse Purchase for the balance and still avoid a payment. How this works can be seen at downsize and invest example and Purchase Reverse Videos.
What differentiates this strategy is you suggesting to your clients that they can do many different things with the cash saved, including purchasing a investment property, to improve their lifestyle for the remaining ten to thirty years plus of their retirement.
Many seniors look at downsizing as a way to “cash in” on the appreciation of their home and deploy the net from the sale to generate additional retirement income in addition to getting a home more suitable to their aging needs and/or being closer to their family.
The downsize and invest strategy will free up even more cash than your clients were planning and since most agents don’t know how this works you look completely different from your competition.
Don't wait for a senior to walk into your office – be proactive by introducing this approach as part of your farming pitch as often as possible. Just bringing this up as an idea will differentiate you from your competitors that are offering free CMAs and distributing marketing trinkets. This idea if presented correctly and repeatedly can be the game changer to get your prospects to list with you!
