A New Way To Use a Reverse Mortgage
Using a reverse mortgage like this will pay off for you and your family.
Today, we're going to discuss reverse mortgages and how you can use one to purchase investment properties and create an end-of-life plan that will benefit you and your heirs as you go forward.
A reverse mortgage is simply a home equity pool similar to a home equity line of credit. The difference is the terms in which you will pay it back. Traditionally, reverse mortgages are paid out at end-of-life, or they're paid on interest until end-of-life. Then your heirs decide whether they would like to keep the property and sell it or if they would like to refer the property back to the mortgage company.
Now, how does this equate to investment properties? Well, traditionally, the reverse mortgage money is used to live life, to pay for bills and all the circumstances you need during that end-of-life term. The difference is that if you take that reverse mortgage and purchase investment properties, you can actually receive income from what are considered cash purchase properties. You can use that income to live life.
Now, the benefit here is at end-of-life. Your heirs have multiple properties for investment purposes that they can use indefinitely. At the end of life, you also have the opportunity that your heirs can either sell your primary residence, if there's enough equity to pay off the mortgage, or they can revert out of it and still have all the investment properties still available. This is truly a great opportunity for you to use your funds from the reverse mortgage beneficially rather than just superficially to pay for traditional bills.
A great avenue for success in end-of-life planning. If you are interested in more details, please reach out to us at (915) 751-1500, or you can find us online at www.brianburds.com. Thank you for your time.