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Reverse Mortgages

Does anyone here do these? What do you think about them. Are they worth it?

I don't sell them, but I like the idea.

This is a great avenue for senior citizens who want to access their equity and have their house paid off. The major downfall is that the children might have an issue with it as it will reduce their heritage. Just another form of an annuity.
 
I looked into these. Some mortgage brokers say "no way", others wanted to do some marketing, but did not want to split a commission or any type of referral fees, so I did not do anything with them.

From what I understand, they keep the house, get a check every month (or lump sum) tax free, and after they pass, the loan just has to be paid off and the house stays in the family (if they want).
 
Would this work? what if a senior had a home worth 200k. got a reverse mortgage worth 130k( i assume you cant take the whole amount) and bought a single premium life of 240k. That would take the wait out of the kids getting money out of the house at death plus they wouldnt have to worry about selling it and it is tax free inheritance. Am i dreaming? that would be a great commission!
 
Would this work? what if a senior had a home worth 200k. got a reverse mortgage worth 130k( i assume you cant take the whole amount) and bought a single premium life of 240k. That would take the wait out of the kids getting money out of the house at death plus they wouldnt have to worry about selling it and it is tax free inheritance. Am i dreaming? that would be a great commission!


1) Selling is one option. Another option would be to lease the house, refinance and have a family members stay in the house.

2) Brokers do not earn much on reverse mortgages, they rather refinance and work in their commission that way.

3) Great commission potential but it also might make you look like a walmart for insurance. Better to work with a reputable broker then to try everything yourself, unless you are bored with insurance of course.
 
why would i look like a walmart for insurance? because i would offer a reverse mortgage and life insurance? So i can sell life, med supps, MA's, MA wrap arounds, and annuities , but if i sell a reverse mortgage with it i am WAL MART?
 
why would i look like a walmart for insurance? because i would offer a reverse mortgage and life insurance? So i can sell life, med supps, MA's, MA wrap arounds, and annuities , but if i sell a reverse mortgage with it i am WAL MART?

Walmart sells a lot of products and there are agencies that sell a sleu of insurance products. The comment was not meant to be offensive, merely my thoughts on agencies that have one man focusing on every product.

I believe in picking one or two specialities and focusing all of your energy into becoming an expert in one area. I sell individual health and enjoy the field immensely. I am considering working in disability down the road, but I am not to worried about finding enough work in the small business market.

There is no problem IMHO with an agent offering group,individual and life products, as long as he or she takes the time to become proficient, and to me this means much more than what the state DOI requires for renewals.

The mortgage industry is a total different animal and requires constant education at the state and federal level. You have a good idea about using a reverse mortgage and life insurance to double your profit and help a client out. However, a savvy homeowner and/or investor will know that any property left to heirs will not results in any income taxes because the cost basis of the new homeowner (i.e., daughter or son) upon death immediately shoots up to market value. They may be liable for capital gain taxes, but there are legal ways around that one as well.

Additionally, if they children wanted, they could rent out the home for a few years perform a 1031 exchange and not have to worry about taxes until later down the road. As it is set up now, you can indefinitely use a 1031 exchange as long as you meet the guidelines. Hope this helps clarify what I meant.
 
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