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FOUR Ways to Find Sellers Who Need You

45% of Seniors are Ready to Move!!!

A survey came through my feed earlier in the week showing that 55% of seniors said they have no desire to move and plan on living in their current home for the rest of their lives.  Well, as you could imagine.. with inventory issues extreme, I was drawn to read the rest.  It went on to say that 30% of seniors said 2020 had a negative effect on their retirement plans, that 20% tapped into their retirement savings earlier than expected and 46% of them plan on picking up a side job.  47% of them had their house fully paid off.

What I read was OPPORTUNITY!  A chance to educate and present options.     Survey Results 

 So if 55% plan on staying, that means 45% of them want desperately to move.. but haven’t been able to because they didn’t feel safe. These seniors are in your database. They are in your circle of influence and they need to feel safe again, they need to know they have options and if 47% of them have their house paid off, they have LOTS of options.  

Don’t let them get a part time job, instead, educate them on using a reverse mortgage to use their equity without ever having a mortgage payment, and using that equity to buy 1-2 real estate rentals to provide the additional income needed for their retirement years.  

Or if they have a mortgage, could we refinance it into a lower rate/payment?  Refinance it into a reverse mortgage to drop the payment all together?  Sell it and downsize, move in with family, move into the 55+ community they’ve been thinking about?  2021 is about options.. not fear!  

Final Forbearance Expirations are Coming

There are 2.7 million borrowers in forbearance today representing 4.9% of all homeowners with mortgages (not including the 37% without a mortgage).   This is dramatically down from the 7% who were in forbearance one year ago.  

23% or 625,000 of these had their first forborn payment in April 2020 and another 13% or 355,000 in May.  Those two cohorts will dictate both the size and timing of final forbearance expirations.  Equity has been providing an exit ramp for distressed homeowners, something that didn’t exist in such large numbers in the housing crisis.  Today only 10% of forborn homeowners have less than 10% equity in their homes… giving them the ability to sell the home in a traditional manner and avoid short selling or foreclosure.Forebearance graph showing number of borrowers in foreberarance

Have you reached out to your database, your sphere? To educate on exit strategies?  The numbers won’t give us the inventory that will change our appreciation trajectory; but it will give your clients the option to protect their family, their credit profile and allow them to feel empowered to make the best decision given the circumstances.  


Tax Laws Are Changing

Administrations change and tax laws with them… and then.. they change back.  We know that tax laws are fluid, yet, we also have to be aware of when they work against us and our clients.

 If you have clients who own real estate, it is possible that they will cross over the new proposed limits.  Today, there is an annual gift tax exclusion of $15,000. Want to give more? You can.. it falls under the lifetime Gift and Estate Tax exemption of $11.7 million for individuals or a combined $23.4 million for married couples.  That is about to change.  The proposed limit will be $1 million for gifts and $3.5 million for the estate tax.

 Other items that will deeply hurt our real estate owners/investors is the elimination of the 1031 Exchange allowances as well as the step up in value.  1031 Exchanges allow investors to sell then buy real estate with no capital gains hit until the last transaction where they pull the money out of the market.  Step up in value currently allows someone to gift property in their trust or will upon death to another at the current value, eliminating capital gains on those transfers.  1031 exchanges alone cost the government an estimated $4 billion in taxes lost .. so you can image with a 1.9 trillion dollar stimulus package… $4 billion goes a far way.

Do your clients know what’s coming?  Can you help them sell/buy in 2021 before the changes? Are there shifts they can make to their portfolio to set themselves up for success?  Put on a class, send out a newsletter, create a dialog!Optioins of partnering with Tax Advisors

Real Wealth Is In Real Estate

I serve at the pleasure of my clients, helping them find opportunities to build wealth in a very real way.. real estate.  Every one is talking about the stock market right now.. but the 80%, middle/low income America, only owns 7% of the stock market.  62% of their net worth is in their home.  Are you talking to them about the opportunity?  

If they currently own, they have equity they don’t even realize.. capitalize on that and multiply it!  If they don’t own, can they house hack?  What are their goals, do you know?  How can you and I together help them achieve them using the roof over their head.  

Invite them to one of our 2nd Thursday evening Building an Investment Empire classes.  Or.. let’s set one up specifically for your peeps.  YOU have the opportunity to be their biggest wealth advocate… to change the trajectory of their lives!Room of people attending seminar

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