Even The Rich & Famous Liberate Their Homes’ Equity!

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Last year, Yahoo.com reported that Hollywood legend Burt Reynolds sold the Florida mansion he’d owned since 1980. The buyer, who paid $3.3 million, reportedly said that the sale of the house was contingent on Reynolds being able to live in the home and paying rent.

Then there’s the story of Christian de Guigne IV, heir to a fortune made in chemicals, who owned a Northern California property that has been in his family for 150 years. In 2013, Guigne sought to sell it for $100 million. He, too, had a contingency on the sale of his house: He would stay in the home until his death, whereupon the buyer could move in.

These are just two examples of the rich and famous converting their homes’ equity into cash to maintain a lifestyle they have become accustom to.

Sometimes it just makes sense to rent rather than continue to own!

Even if you have no mortgage payment, the cost of owning a home can be overwhelming. When you consider the monthly expenses related to taxes, insurance, maintenance, and in many cases, homeowner association dues, the prospect of paying simple rent can become very attractive.

Let’s look at my home state of Florida, where there is no cap on property assessment and taxes are usually about 2.5 percent of the assessed value. In Florida, homeowner’s insurance is the highest in the nation at a rate of about $1.70 per thousand dollars, and homeowner association fees are outrageous, both due to the threat of hurricanes.

Here’s an example of a simple two-bedroom condo in North Palm Beach:

Value:                                                          $250,000

Annual Taxes 2.5 percent                         $6,000

Property Insurance $1.70                         $425

HOA – Maintenance                                   $7,200

Total Annual Expense                              $ 13,625

Total Monty Expense                                $1,135

Now let’s assume that there is also a $100,000 mortgage on the property, which requires a monthly payment of $600. The total monthly expense to live in the house is now $1,735, and there is $150,000 of tied up, illiquid equity that’s not doing you any good.

What if you could sell the home, rent it back for $1,875 per month so you remain in your home and never worry about mortgage payments, taxes, or maintenance again? And you’d have all that equity in your pocket where you can use it for whatever you like.

Would liberating all of your equity while you remain in your home make living your life a little easier?

Sell and lease back was the right solution for Burt Reynolds.

Could it be the right solution for you, too? Free Strategy Call

 

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