Unlocking Your Assets - 9.9.18

Saturday, September 8th

Using HECMs to buy a vacation property or future retirement property

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Unlocking your assets. Life in retirement but you might reverse mortgage funding now we hear your posts and Larry are strong online. Mario Armstrong and I'm Ron Meyer. Welcome to unlocking your assets to thrive in retirement Larry and I are licensed. Mortgage loan originators who specialize in helping mature homeowners. Discover how they can thrive in retirement. My unlocking their homes equity and you see by using a reviewer first mortgage. Each week our goal is to dispel myths about reverse mortgages and share facts about how the new and improved version of a reverse mortgage is benefiting millions of mature homeowners around the country. You can reach us at 303773. 3077. Again our office number is 3037733077. Or visit our website at www. HE CM CO dot com. That's. At www. HE CM. CO dot com. You'll be able to find a schedule of our Saturday mornings groups seminars where you can be able to register to attend one of those. Larry let's jump then we have a fun program today. Talking about topic that we haven't discussed at all on our program so far. About how to use a reverse mortgage to buy a vacation home for a vacation home slash. Retirement property. Put her on that sunk that it's so subject that's very close to home as you know it's. A we've done that we do to reverse mortgage Beckham on our home. When we purchased at about four and a half years ago. We moved out of the two and a half story. Turn of the century Victorian. We truce lovely but quite frankly was not the home we were going to an engine place and so with narrows narrow. Their way ism and it just there was lovely but it's time to come there's time to move. Nick Torre and also means a lot of upkeep and maintenance and repair graduate who thought about the movies and money pit was an accident and Shelley Long was so you know the basis of it. We did that we've. Basically. Did about everything we possibly could to add value to it is a wonderful home. It's tripled in value but even after the housing burst. And so we had. We're all those improvements we had some significant equity that we were able to take out of it when we closed on the home. We purchased our current home. Which is the one story. Ranch style home built and a 1940s or Kenneth we were moving into the new century. From from the turn of the previous century. But it's a home in which we can live the rest Burleson returns to chair I joked with Carol about it it's so large lot of quarter a third of an editor. And pastor of that meant I was gonna have to buy riding along more when. When removed and she said no the lawn service is only 24 dollars a week. So there's little that's wonderful life and keep working and you know compared for the 24 dollars a week surely doing that. But it's been a great home we've been Jordan a lot. The them are neighbors that the departure home which was over in the seventh avenue restaurant district close to he's in park. And in central Denver. Were going to come. Allow us to use their cabin up. On awake outsiders out south of copper mountain north of nor have led bill. For the fourth of July weekend yeah. And we just thought that was really cool so we went up there are some pretty time a year there really were so we were up there. It was kind of like On Golden Pond hollow out. And we just all over this area. And started looking around. And looking for places that might become available. And we told them about it and told some other folks about it. Instead of something comes available. Let us know and as luck would have it been following spring. They cabin that was built to pre 1880s. And Appalachian style log cabin where those hand tuned and change logs. Well of those so lasts forever what has lasted forever actually funny story of there was a a fire. At the show Lake County courthouse side. An eighteen AD and as a result of that anything that predated that got an 1880 anniversary date so that may be older than that I think it might be. But in any event it it is about a fifty feet from the lake the lake side. And in that leaches. A stocked with Trout three times a year which makes my fishermen hunting nephew very very happy when it comes to us it. But it was a wonderful wonderful opportunity for we know going back to the purchase of our new home. We did area Beckham for purchase on our home turf and because we had of a nice stuff. A nice equity that we took out of the departure home. We were able to create an additional line of credit for Leonard credit we've talked about or write. The financial advisors and an all these folks who've taken advantage of Arkansas for. And that letter of credit was a 140000 dollars and is growing at five and a quarter percent so. The middle hut lot more sense than just putting and bankers children under the mattress and so they were canyon a guarantee greater returns. So that was growing and then guess what we found this place that I mentioned that the Kevin were found there was a 130000 dollars. So we just took those proceeds. And paid cash poor. Our vacation home chair and of course with the benefit of the reverse mortgage for the heck am. We're not making principal and interest payments on the home and that's a savings of almost 2000 dollars I'm not sure. So even I can do the numbers on that you're 24000 dollars in your terms for years. There's almost a 100000 dollars that we have had available then. Additional cash flow we've used to make improvements on this happened. That has now become. Quite frankly. A very viable retirement. Home for us because it is a place that is accessible we go took a new draft because we wanted and me parents and our. Mobility impaired sisters to be able to access that church. We took out all the walls and opened it all up we. Enhanced it tremendously it's very very very accessible. And and comfortable. It's so nice that we actually expanded it a few years ago. That added a master bathroom and a master bedroom through it. It's now about 12150 square thing while it took almost a perfect sweet spot for a couple retire and. So now just to recap your telling me that you bought a house created a line of credit within that purchased. And then you found your dream vacation home. And then used a line of credit funds to be able to buy that particular vacation home. Now you owned two properties. For. The price of one if you well. Much yet or basically from the proceeds from the sale over pressure. It's been a real treat to be able have we've. We just had a family reunion there we had eleven nieces and nephews there issuing an high king by king mountain climbing. We actually need to send them home so we can get some rest I don't know. But they ranged in age from three to vote three to nine and and they're grand nieces and nephews and and two couples with their children so there was a great trip. But my message here is that. The reverse mortgage has been. A tremendous financial planning tool inflexibility tool for us we expect this we do retire there. We will sell our. Our home. Here in Denver. Pay off that reverse mortgage which has a significant equity continuing in this market chair rice and then. We will do it Beckham on a retirement home yup and we'll just have that additional money in our safety net. Sure our share. Well Larry when we come back we're gonna continue from our commercial break we're gonna have continue this conversation. You know and give some other examples of how people can utilize this particular. Product. So as your local pack a reverse mortgage specialists we'd be happy to discuss your situation. In a private appointments help you discover how are reverse mortgage can benefit you. Or maybe you'd like to attend one of our weekly group information. Seminars held on Saturday mornings. You can reach us at 303773. 3077. To schedule a private appointment. Or reserve a seat for our Saturday morning group seminar. Again office number is 303. 773. 3077. Or visit our website at www. HE CM CEO dot com. Where you can reserve receipt for your Saturday morning information seminar. We'll be right back. Unlocking your assets. Teaching you how to drive in retirement lunch you might reverse mortgage funding now we hear your hosts Larry Armstrong and Ron Meyer. Blocking your access thrive in retirement. I'm Ron Meyer and Dan Ellis number 1371657. And I'm. Larry Armstrong in MLS number three it's seven to zero. Or. Boron. In our previous session. Section were your rhetorical bit about to have my own personal experience and I think. That prompted the conversation. Comment that you made about one of the real church. Continuing education. Courses you were teaching. And what are evolved out of that one to tell us about that. Now that's a pretty interesting actually a story we had a an example. Of just what you did walk the UN Carroll did in your purchase of your vacation home. We teach that concept and strategy. To reel source to be able to include in their business. Practice and things about how to be able to. And work with clients to be able leverage the money out of their current home in order to be able to have the down payment that they need for. That tent future home that vacation home that they want to be able to move in chip. So so this is so they are using the they have come Berle yeah they already under current armor all and freeing up equity that they have available for of that that want vacation. That's right now is so that way and take out of one time I make their one time down payment oh well they'll. Have enough funds coming out of the current home. To be able to you and make up the 20% for the down payment no mortgage that they're gonna have on the vacation home. Meehan on NN. Essence and allows and to be able to now free app not have a mortgage on their current home still only have one mortgage payment on the vacation home. But leveraging the money the equity that they have out of their current home to be able to enable them to be able to do that just took. Basically they're taking the principal and interest payments that they would be making all these. Current reverse mortgage home values are principal residence and diverting those principal and interest payments to. Vacation home absolutely and and really not adversely affecting their test vote all we're not at adding a second home yup they're out of him. Let us that's right so out of basically the same money is that they would be spending every month anyway now they have to valuable. Real estate assets as opposed to just one. And an agenda of the source of the one time investment or the source of a down payment the second home was the money that came from the pack among their on their primary real. And could could be done that way or might might be part of you know combination of money that they you're getting out of their current home as well as other savings depending on what they're trying to do and everything from but it was very interest saying as we were sharing this particular concept with. Many realtors they were you know certainly talking and asking questions and everything and there is one young lady that was sitting kind of in the back of the class. And I called on earned and just faster. Well do you get this concept and she says. Oh I really get this concept. My folks mine dad is really astute when it comes to numbers. He and mom took out a reverse mortgage. When mesa and turned 62 years old just as he is thinking about retiring. They went in took reverse mortgage out on their home. And then they did exactly what you talked about they use the funds coming out of their home to via a vacation home. That they. So they sold their current home their departure home paid off the reverse mortgage and then refinanced. Their. Now vacation home and we'd love to go up and see him in the mountains all the time. So exactly that same type of a concept. Of what you're talking about. Whether it's a vacation home for. Future retirement home. There's that particular opportunity to be able to do it do that you'll think about. How many people we've talked to from pundits find it would love to be able to buy a house on the golf course and be able to play golf more often. You know but they just don't feel like they can do it because of housing prices or are they to know find the right opportunity well. Peiris NAFTA Knology financial tool last a way to be able to leverage money. To be able to accomplish staff buying another asset but not. Causing it to have more dollars come out of pocket. I remember him one of the classes that we taught. There was a gentleman when examples was there was a gentleman who wasn't quite ready to retire yet. But they wanted to do that they wanted to live on and on Asia the golf course or play golf quite a bit yeah. But they really couldn't afford. Mortgage payment right and they had sufficient equity in it and in there go our current home. But they were able to do just this they were able to do the reverse mortgage on their present home. There was really interest and she. That they had this for we kept this basically it became the second home. Was financed with the equivalent of the principal interest. Payments that they were sitting on the current home easy and they were applying that's new building equity and it. Well. She. Didn't want to drive. Rom in it wasn't ready for it worked yet so about two years she continued to work. And he hated it hated church you know having to drive back on Sunday night. To get ready dirt you actually restart staying over on. Sunday night and then he would show up early. At work on Monday morning. Are you get out early on Friday afternoon chair and go play golf for answers they'll you know turn after its. Honestly. The second anniversary of the second anniversary of the purchase of their home on on the golf course. He tendered his resignation as retirement resignation. And they moved full time on the golf course. And it was wonderful for them because. They have developed a whole new set of fringe on on the golf course chair and around that area. There was no more commute. No more weren't terra has car. Nora and his wife's nerves when he would complain about you know how much I have a much driving to do this and all of a sudden the light went on a life was. You know both children and and a wonderful opportunity for them to do that. I'm vision sold there they sold their. Departure home had more than enough money. And equity in the home to pay a the marginal difference to do a reverse mortgage on the new growth on the golf course I'll share and still had money in the bank which was part of the line of credit to continue to grow in this case and about five point 8% I'll. So you know talked about a win win win situation that was wonderful. And those are the kinds of things that we can explain. To our listeners. Whether it's in person in your home or one of our sessions so on Saturday mornings. We have so many examples of these. Other 62 plus homeowners who have taken advantage of home equity conversion mortgage. Or purchase for refinancing their home to to live well on retirement though. So listeners you can always call us at 3037733077. To schedule a private appointment or reserve a seat for 1 of our Saturday morning group information seminars. We're happy to provide you with the information that you seek to be able to see how a reverse mortgage might fit into your unique situation. Again our office numbers 3037733077. Or visit our website at www. HE CM CEO dot com. Rican reservist seat for our Saturday morning information seminars. That's WWW. Dot HE CM CIO dot com we'll be right back. Unlocking your assets. Teaching you how to thrive in retirement lunch you might reverse mortgage funding now we hear your posts and Larry Armstrong didn't. Ron Meyer. Unlocking your assets to thrive in retirement. I'm Larry Armstrong and MLS number 387204. And Ron Meyer. And a molest number 1371657. Iran known in the last segment you have some really interesting. Examples. Of of uses for the Beckham program. The strict Becker Perdue remove another one that you were telling their bam bam what do you listen client's right now that are. And use the proceeds of they're gonna get out of that to start the construction loans for. Their retirement home building their retirement home. So there and a big two story home right now with they create share and you know with us and challenges going on health wise and things they know they need to get into that single level home something more manageable and things calm but they'd rather. Bill Clinton designed it themselves as opposed to go to a home builder. You know and one of the big communities or something and and by one of those so their goal is they've got does some land that they're going to already owned. That they're going to use. Against at and create the construction loan out of the equity of their crop home. To be able to build there retirement home. Mo plus plus they don't know though the land for the future home yeah that's part of the according that the the bank lender would give them torture destruction lounge chair that's very wise and and there's interest in saying considered just about six to tear now. One of the I comes in financial planning retirement. Income planning researches a total minimum wage foul. And wage is brilliant. And one of the biggest takeaways that most financial advisors. Have come away whereas after listening to ways. Is that when you turn 62 is the right time to start the the take out a Beckham and start. The gross of the a line of credit on your home because old money is better than new money now they say it says that often saddled the longer. That you've had something working for you. The more valuable it is and of course that means that translates to there there are more. Or the higher the gas that is that you be able to draw on them in the future. Whether a person is using it to purchase another home or just increase. The safety net the retirement income asset that they have. She started yesterday. I started to start at 62. And don't touches he says leave it alone and let it grow because it grows so dramatically. That it works tremendously cheer about it to their advantage. What's it it's an interest seeing you know concept about we've we've talked about in your case how you and Carroll thought I had we've talked about some other folks that have. Used heck comes to think ahead about what they are going to do. I only times do we talk to people that didn't plan ahead. And now there wouldn't choices are limited their choice and it. And that's their choices be known it they've kind of backed him into a corner where they just don't have as many options as they. And before. You know it's interesting because the rich or tension of the home equity conversion mortgage reverse mortgage. Way back when it became federally insured recommend to mitigate. Was predominately to help people that were needs based that I hadn't. That it lost a spouse and so they lost half their Social Security. They had some of that take place where they hadn't planned well enough and they've turned choosy then reverse mortgage check them a program. To supplement the retirement income more to replace that lost income that might have you know gone away with the with the loss of a spouse. I'm over the years. The financial. Planning and financial advisor community the certified financial planners the financial planning association. CPA is a chartered financial. Consultants. Have recognized. How this planning tool. And benefits. Their clients and make sure that their asset does last as long as they do that they have enough assets to live through their retirement years. And so that they that their plan. That they created for their client. Actually reaches fruition that day. That day and their assets expire at the same time sir that there's more that there's enough money for them to live on comfortably. And and be comfortable in their retirement. You know we're talking more and more to people who are. Taking that approach to their retirement years there are looking at what are my options waters. China kind of choices to I have out there in front of me that I need to. Learn about its so that I can start making the Smart choices now. And it's it's interesting as we talk to people more and more about how reverse mortgage can be part of their financial plan. And they're just amazed they're amazed at the ability for. Equity to grow at an interest rates and the whole values obviously are growing at an interest rates are you know market value and and so it it's really uninteresting. For our conversations with these particular people to show them opportunities that they didn't even know that there were available to them. And now help them to have a much higher probability of having enough money last a lifetime's. I can't use his name and I won't use this source the organization because I don't have their permission right now but Carol and I had the the meeting with our financial advisor recently and it turns out that. The and his company national company. Use money guide pro the financial planning software that is articulated with. The second program of reverse mortgages so they can end. Project with the utilization. Of a reverse mortgage should be and how it would impact bright test. He didn't know. That our company was the one that designed this vehicle for money judge pro Ellis and all Honolulu Portland there was also a lot of trust. Well speaking of that. We are. Excited about an upcoming session that we're going to be doing. We're we're going to have some representatives or company. Talking with us about. She knew. Equity edge product program that has just been introduced here in Colorado. I did it acts like a Jumbo loan like kitty a high value home on homes are can go up as high as two million dollars. With loans loan values of up to four million dollars depending upon the age of the borrowers. That is exciting when we started mentioning this to some of our financial advisors they want appointments now to sit down and talk of. Absolutely when you look at the current. FHA hack come loan program having home value cap that. How homes valued at 679000. Dollars. You know that kind of leaves a hole in the marketplace for people with higher value home. Particularly those values have increased so dramatic well hugely. Bought tickets and it's an extraordinary opportunity. For people to look at. The use of home equity. Whether it's where they traditional SH a reverse mortgage or FHA insured reverse mortgage. Or the new proprietary. Loan programs. That act much like that the Jumbo loan that. Has been out there in the past but has often been there and is higher interest rates but hugely different. Multiples in terms of how much a home. NB valued and therefore the amount of money that's available to them. Or where it'll be really exciting to we will share that information with us. Our listeners had over the next few weeks as we have share more about that. So as Sherlock Holmes and I have a home equity conversion mortgage or reverse mortgage specialists we'd be happy to discuss your situation. In a private appointment to help you discover -- reverse mortgage can benefit you in a very specific way. Or maybe you'd like to attend one of our weekly group information seminars and learn everything more at a little higher level. Two. Gains knowledge and information about what's going on. You can reach us at 3037733077. To schedule a private appointment. Or reserve a seat for a Saturday morning group information seminar a number Dennis 3037733077. Or you can visit our website at www. HE CM CO dot com. Rican reserve that seat for our Saturday morning information seminars again that's www. HE CM CEO. Dot com until next week I'm Larry Armstrong. And I'm Ron Meyer wishing you the ability to thrive in your retirement.