What if You Could Retire Now?

What if You Could Retire Now?

Consider what happened to this senior citizen not long ago. He had $90,000 on equity in his home and was very close to retirement. However, in order to pay for his mortgage payments every month he had to work two jobs. The good thing is that one day his situation changed completely after he listened to a conversation I was having with a friend of mine about real estate.

While I was still talking to my friend, he jumped into the conversation to tell me that he wanted to sell his house because of two empty houses next to his. He was concerned that the property value in his neighborhood would continue to go down. I talked to him for a while, and we seemed to connect very well. Later that day I called him to give him my opinion about the value of his house and ask him if it was okay to preview his house. He refused by saying that he had two jobs and that he did not have enough time to show me the property.

The next morning I was thinking about the whole thing while driving to my office. I normally solve many problems in my car and this time was not the exception. That same morning I gave the subject a call to tell him about my thoughts. Even though he liked what I had to say, he told me he needed some time to think about it and talk it over with his wife. The idea consisted on selling his house and then taking his equity to buy another property. However, this time he needed to downgrade a little bit.

 A couple of days went by before I heard from him. Then one morning he called me to tell me he was ready. As planned, I sold his house and found a foreclosure home just five miles away from where he used to live. He bought it for $150k, put his $90k down and end up financing $60k. His mortgage payments for a 30-year fix loan are now around $350 a month.

He still has a few years to retire, but he does not have to work two jobs anymore to pay for his mortgage. In fact, when he retires his pension may very well cover the mortgage payments and more. Not only he made the right move, but he also took advantage of this market where many houses are selling at 50% discount. Imagine a couple of years from now what this property may be worth.

This may no seem like a good idea for many people. However, for those who seek a little bit of relief from the burden of debt and do not care about giving up luxury in exchange for peace of mine this may be a very good solution.

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I am a real estate agent. I specialized in residential real estate. I work with first time home buyers, sellers and investors in the Central Florida Region.