I have been in the financial arena for close to 20 years now. I have learned quite a bit and I have been around some very smart financial advisers and money managers. In this current economy I think it is safe to say that if you have cash there are some investment opportunities. My area of expertise is in Real Estate and I can assure you there are deals to be had in buying homes.
If you are looking to move and sell your home today, you have to consider that you are selling at or near a bottom. Most people focus on this fact and they forget the other side of that equation. You are also buying at or near the bottom. You buy and sell with the same brush stroke if you will. In a perfect world it should even out. But what if you could just buy in this market and wait to sell when the values start to rise again? That would be a savvy move!
I met with woman last night that is 72 years old. She is currently living in a home that has a lot of equity in it. I listened to her situation and decided that she did not need to do an FHA reverse mortgage to solve any problems or meet any financial needs. She has a good retirement. She has a low payment on her current mortgage. As I was starting to wrap up she mentioned to me that she wanted to move closer to her children in another county. We started talking about the FHA reverse mortgage purchase loan and she mentioned to me that she would love to buy the house that is closer to her kids now (because she can get a great deal on it) but she was not ready to move and sell her current home.
I told her I had a solution! The house she wants to buy is @$250,000. With an FHA Reverse Mortgage on her current home she would receive proceeds close to $300,000. SO, here is what the family is now considering. Getting the FHA reverse mortgage on her primary residence, using the proceeds to buy the home closer to her children and renting it out for a couple of years. And oh by the way.. the rental market in this area is superb. She will earn a little over 10% cash on cash return on the rental home. And she is borrowing the money to buy this home at 5%. Good move!
How a good move can turn into a great move! In two years when she is ready to move from her current home hopefully the market will be in an upswing. During this time she has made a good return on her money. So both of her homes will be worth more 2 years from now then they are today. If all goes according to plan. She sells her primary residence. Pockets the equity and moves closer to her kids.
Get to know the FHA Reverse mortgage! It is a great product the government has for people over the age of 62.
Sincerely,
Noah Burford
949-278-9244 cell
noahb4@gmail.com
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