Can Seniors Create Revenue Opportunities From A Reverse Mortgage? See How Ray and Linda Did Just That.
When I met Ray and Linda, paint was flaking off the fascia, the stucco… everywhere, old cracked tile in the kitchen, an unused swimming pool and they were heating and cooling a huge home that was completely underutilized because they were “empty-nesters”.
Ray and Linda’s home was in Huntington Beach, Ca. Their home was approximately 3,200 hundred square-feet, all the bedrooms were upstairs… we all know the familiar story.
Of-course, Ray and Linda wanted to keep their independence. They have a son and daughter-in-law with children in Aliso Viejo, Ca.
Ray and Linda wanted to be involved in their grand-children’s life. We decided this was a great time to “right size their life style” by purchasing a home near their kids and grand-children.
We found a small home in Mission Viejo adjacent to Aliso Viejo for $600K – a 1,500 sqft home (less square feet to cool and heat) that had recently been remodeled. They purchased this home with a reverse mortgage for purchase using 300K from 800K of the proceeds from the sale of their Huntington Beach for the down-payment.
The reverse mortgage allows them to never make a mortgage payment again for the rest of their lives. Ray and Linda used the remaining proceeds from the Huntington Beach sale to purchase a tri-plex in Riverside for cash that brings in $3,500 a month in rental income.
They now have more disposable income per month then they ever have had before and liquid assets to cover any family and/or medical emergencies. Ray and Linda are now involved in their grandchildren’s sporting events and school plays and they vacation often.
Mark Jones is your local Long Beach and Orange, Riverside and San Bernardino Counties Expert. Mark is well versed in Senior Lifestyle Transitions and is available to all family members for consultation. You can reach Mark directly at 714-342-1990 or via email by clicking here.