Wealth Management Using Reverse Mortgages

Wealth Management Using Reverse Mortgages.

Many seniors have the opinion that a reverse mortgage is “only for Poor People”.

While actually the reverse mortgage is a very sophisticated financial planning tool, and has many sensible and safe programs for middle class seniors, and can be used for many purposes to make life more satisfying for older people.

A case in point is a client who has a net worth of 16 million dollars, consisting of $7,000,000 value in a breeding stock of over 200 Andalusia horses. A special breed originally from Portugal, and bred for intelligence and maneuverability. The breed used for dressage and originally for knights and jousting.

Her investment in real estate consisted of three properties a ranch in northeastern Oregon, a ranch in Canada, and an oil shale property in Canada.  In addition she owned a waterfront home located on Lake Washington, halfway between Bellevue, and Mercer Island, with a spectacular view of the Seattle skyline, especially at night when the city lights shine across the lake.

Her gross income amounted to approximately $25,000 per month, primarily from the sale of breed stock. However, the income was sporadic, and she was in desperate need of working capital to carry her operation through lean periods.

She was a single woman, very accomplished with a PhD, and had a successful background both in her profession, and investments.

The home on Lake Washington was at the end of a private road, secluded and gated and had a deep-water dock and boathouse grand-fathered in.
Her home appraised at $3,500,000.

Her age at the time was 72, and what had been an avocation, was an activity she wished to continue as long as she could. It was a vocation that was very satisfying to her. Her age now is 77, and she still rides bareback.

She had grown children who were independent of her.
We were able to solve her working capital problem by arranging a “Jumbo” Reverse Mortgage on her home of $1,500,000. The reverse mortgage did not require any payments on the mortgage as long as it remained her primary residence. No debt service, and non-recourse. She was a very conservative and cautious borrower, and had two attorneys review all the paperwork.

The point being that life does not stop at 62, or 65. The life expectance of a 72-year-old woman is nearly 15 years, and her resources should allow her to live a life that is satisfying to her


 

facebook
 
Testimonials
 

Quick Quote

Get your FREE
quote in just
seconds!

clock

 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
 
secure

Trusted. Experienced. Secure.

 
 
 

Real Estate Marketplace

Home SearchView Featured HomesDream Home RequestHome Value Wizard