Case 1: Buying with a Reverse Purchase
"save more cash for the future"
She just turned 65 and he is 67 years old. They want to move from their two story Orange County home where they've lived for thirty years and raised their family to a lovely one story home in Murrieta. The price of the home they like is $500,000. The couple wants to be closer to their kids living and two cute grandchildren living in the more affordable Inland Empire. They don’t want monthly mortgage payments for the next 20 plus years of retirement as they must live on a fixed income. You list and sell their two story, 3025 sf home for $700,000 net of selling costs.
Their thinking is to avoid a monthly mortgage obligation for the rest of their lives by paying all cash ($500k) for their new Murrieta home. This will only leave them $200k which is not enough to get them to pull the trigger on the downsize move.
Solution:
After working to brand yourself as a senior expert and earning their trust, you share that nstead of a $500k all cash transaction, your couple only needs to put $300k down and use a Reverse Purchase for the balance ($200k loan). They still avoid a mandatory monthly housing payment while on a fixed income. The Reverse Purchase frees up $200,000 more for investment, a better lifestyle or perhaps a second retirement home.
Their financial planner will now have $400,000 of assets under management to grow on behalf of your clients for years to come.
Introducing this option can get your clients considering downsizing "off the fence" and can help you create a dual commission opportunity in the process.
