Do You Even Know What A Reverse Mortgage Is? 

Exactly

Probably because her husband disagrees and she wanted someone on her side to go along with it

She either knows deep down that it’s a bad idea and wants someone to talk her out of it or she’s trying to win an argument with someone else

She was hoping to hear them agree with her and it backfired

She makes us all feel a little bit smarter

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Dave has pulled off all his hairs just out of irritation and have gone bald. Now he is having revenge on the employees that still have hair 😊

Well, you do know that they are wrong telling her not to do it. Right?

She’s 61… She probably feels like she doesn’t have a lot of time left and wants to see the world…

To be fair, she had a pretty decent plan. Taking out a reverse mortgage to buy a rental property for added cash flow is actually pretty smart. There are definitely risks there but it’s a solid plan. These 2 are completely against reverse mortgages without real justification.

Does anyone know the risks just listed that nobody listened to for having a tenant? Good God

​@@barnabusdoyle4930why go with a reverse mortgage instead of taking out a mortgage, or equity line of credit on her home? It doesn't appear any different to me than to sell a paid off home to finance another, just doing it one small piece at a time. If the rent isn't high enough to pay the mortgage, it isn't a net positive in her finances.

Unless she is in bad health, she has most likely another 30 years of life.@@MrGuy-xx7ss

Considering you can also marry dead people in France, it wouldn't get too worked up on it.

Yes. But you forget that it is REVERSE!

Her whole situation was so wacky, we can forgive George and Ken for not harping on that part.... They're smart guys and they knew the numbers were bad, but probably didn't want to rake her over the coals too much. Regardless, it's a bad plan that isn't going to work. Sometimes folks see the future through rose-tinted glasses and refuse to imagine what would happen if things don't work out 100% according to their unrealistic plans.

She has probably $2500/month in social security and makes $2400/month in rental income so just needs a couple more grand from a third rental. Her idea actually sounds somewhat decent. She’s not even really going into debt.

@@omnimoeish George very clearly said "on top of Social Security."

@@omnimoeish "Her idea actually sounds somewhat decent" -- No. It is an asinine idea and the only people who don't think so are the scum who work for reverse mortgage companies and the financially illiterate.

I own a rental management company. You don’t get to keep the total $2500, even if there is no mortgage. You have insurance, property taxes, HOA fees, upkeep and maybe management fees. Then of course you pay income tax on that money. All it takes is for the HVAC system to blow or a hot water heater to break or a roof to need repair and you go into the hole, not make a profit. Landlords make far less than the renters think they do.

Nailed it!!!! She's not being truthful. She's in denial. No one at 62 needs to be working having so much paid off.

Property taxes and insurance can eat up a huge portion of her income. My homeowner’s insurance went up over 50% this year from last year . Two thousand a month isn’t much to live on. My medical insurance alone is over $600 , just for me, and it doesn’t have prescription coverage and has a high deductible.

As someone who specializes in reverse mortgages, this is incorrect. The home has to be your primary residence. Having an extended hospital stay is not a reason you will lose your home on a reverse mortgage. And if you have a "friend" who that happened to, they're not telling the whole story. Is a reverse mortgage for everyone? No. However, there is too much misinformation about the program and we keep taking advice from people who don't have a lot of knowledge about it.

why do you think so many people are against these mortgages? @@patriacabrera4712 I notice these guys want to send her to 'their investor'. Sounds fishy to me.

Thanks for that info

Exactly

You have to take out a reverse mortgage before housing crash happens though, or you miss the boat.

The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

It's a combination of both, personal financial knowledge and greed. She literally said she needs $10k a month to live to travel and spend on crap she probably doesn't even need. She wants to go on how many ever vacations each year for another 5 years and spend a lot of money on shopping, then to go into debt to bet on someone staying in her rentals. Her rentals probably have crappy appliances and flooring so she can get as much money out of her renters without putting much into it. It's the classic Boomer who got theirs and wants others to continue to pay for her lavish lifestyle until she dies. In her mind, the reverse mortgage or whatever will go away when she dies so she doesn't have to pay on it but gets to keep the money from it buying a renal.

It's long past due that we stop acting like personal finance is some black art passed down via the sages. It's simple. Spend less than you make. Save. Be careful about debt. Take advantage of your tax advantaged retirement vehicles. Prioritize those according to the value of the tax advantage. Bet on the US economy because if you lose you were going to be screwed anyway. Sit on your hands and wait. It's not rocket science. Our problem is the number of "educated" people who are convinced that they can do better.

@@BTrain-is8chhaha, what you claim is “Simple” is far over the heads of the average Joe and Josephine.

Idk. They are in great shape.

Sounds like she's doing pretty well. She must have some finance skills.

Even more are unaware you can have a posthumous marriage in France, I'd bet.

So, reverse the death pledge.

She’s gonna mess it up. Guaranteed.

She's living a lot right now so a little ain't even her ballpark

Shes louie the 15th. "After me the deluge" She aint planning on her kids having her home so in that case reverse mortgage is "smart"

Inheritance shouldn't be a consideration. I told my daughter that I, probably, will spend all my money - but she'll get the sentimental, family stuff. Should never live one's life with that inheritance issue.

@CynthiaIvers if inheritance isn't a concern then a reverse mortgage does make sense. You don't default until you die

Florida Man and Florida Woman never disappoints.

I think he looked like that because he doesn't understand reverse mortgages (at all) and was trying to speak intelligently about the product. I'm not defending her strategy at all, but it is painfully clear that George has no basic understanding of what they are, and how they work. I'm not even in real estate and his questions about it was crazy. I hope he does 10 minutes of research to educate himself after this call.

@@Run4Ever77 Can you please give an example of something Mr. Kamel said about reverse mortgages that demonstrated a lack of understanding? I am trying to understand better. I keep getting contacted by a reverse mortgage company, and it looks like a bad deal to me.

@@mathematician1234 Sure. When he couldn't grasp that she would have no payments to make on it, and the other question he asked when she mentioned getting a lump sum ("oh, so you're taking a home equity loan?" Etc...). He just doesn't understand those fundamental aspects of it. A side note - from 1:35-1:50 he was clearly reading the negative points off his computer. That's troubling from someone claiming to be a financial "guru". Don't get me wrong - I would not recommend getting a reverse mortgage. They are not a great deal and are rigged for the lenders to win.

@@Run4Ever77 Thank you. I see what you are saying. Yes, it does look like he is reading from a script. He has a recent book out. He may be reading from that.

That’s pretty much my plan with my townhome, even though I’ve got 35 years left before retirement

@@FancyRPGCanada hey it never hurts to have a solid plan ahead of time! 😁

Again, real estate is not passive income lol. I would hate renting from an old couple. Heck, my current landlord and her husband works and they go to Europe twice a year plus 2-3 cruises.

@@Feelsbad1 pay a few percent for a property manager and it’s close to it, either way it doesn’t involve a 9-5 job and a commute to the office and back. Lots of people have rental properties as part of a retirement income stream.

@@smithersrob Standard is 10+%. Most in my area is 12%. That's not "a few percent."

@@smithersrobIt is more work than you think. The paperwork and tax accounting is more than you would imagine. It also depends on how many rental you have . The income isn’t what you think it is either after all expenses are paid. I own a rental management company.

Adjustable rate mortgages are just killing my peers up here in Canada right now. I’m so glad I went for a 5 year stable mortgage. We will probably go for a 3 year next time because the rates are high right now

Yeah, it's called hire a financial advisor.

They chose to take her call because it would generate emotions in the listeners. They do screen calls I'm sure.

Thats one of the main reason we all need a financial advisor. I mean, she definitely going the lane of being broke. The need of a financial advisor is not emphasized enough. So glad BECKY LOU GORDON is handling my investments and over $215k this year

@@EdwinBoettcher you’re right, was about getting one. how do i reach out to her?

You can look her up online, just google her name and her page will pop up

Thank you so much! Found her webpage and left a message. Hopefully, she responds.

​@@EdwinBoettcherare you in cahoots with her😂?? You keep mentioning her.

Thats the common sense answer.

Sadly, to a lot of real estate agents image is everything. Downsizing is probably not an option in her mind.

I think they're good for broke people who have paid off homes but no where to move that's cheaper.

Good point!

You are right. Take money out of the house, then fold it into your 30 year mortgage. Never do this!!

Because she needs the ego rush. It's a stupid call and she could care less what they advise.

She wants to keep living the high life she's been enjoying as a real estate salesman well into retirement.

Not likely : /

Somehow she thinks that $2400 net from 1.5 million in real estate is a good deal, and one more rental will give her another $7000 per month? She's wack

I hope she goes broke

@@Excalibur2 Good point. Put it into perspective. If that 1.5 million were in mutual funds at a five percent withdrawal rate, that would be 75k per year or 6250 per month. She is netting much less on those rentals than she should it seems. Then to expect 7k from the investment propery that she wants to leverage from the reverse mortgage is naively optimistic. She's done very well so far building the rental portfolio plus she is debt-free. It seems like she's gone off the rails lately for some reason! She must have house fever for the prospective investment property she has found.

That's exactly what I was asking myself. She said her rental properties only bring in 2400/month. So what house is gonna give her the remaining 7600?

@@jacquesm1553 crazy investment schemes, evidently! 📈🚀( oДo)

She would have to buy a 6 unit building charging 1k/unit

Yeah. She did great not being debt free but she's not the level she thinks she is and that's okay.

@@NoNakersAllowed , $1K/unit less operating expenses looks more like $600k/unit profit: $3600. She's half way there... maybe. And find me a decent 6-plex these days that you can get for $500,000 which is what her reverse mortgage would be. Even in my relatively cheap cost of living area of SW Missouri, a 6-plex in livable condition that's not in a war zone will run $110-$120K per unit, or $660,00-$700,000. And those units will rent around $800-$900/month... not $1K. . Unless this gal lives in the cheapest real estate market that also happens to have the highest rents in the USA...this ain't working. After expenses, she's only about 50% of where she wants to be.

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It is possible to make enough to fund a foolish lifestyle. But when the pressure is put on, like this caller in potential retirement, her foolishness comes back to bite her.

I’m pretty sure she made several men very unhappy in her earlier lives…

The sad part is she doesn’t even have a mess. She’s in a sweet spot but for whatever reason wants to muck it up 🤦🏾‍♀️🤦🏾‍♀️

Husband got what he deserves for allowing her this much control over this much money

Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.

You're not making any mistakes; the challenge lies in not having the expertise required to profit in a challenging market. In these tough times, significant earnings are typically achievable only by highly experienced experts who went through the 2008 financial crisis

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

There are true professionals at the top of their game; I had the pleasure of dealing with one, and it turned out to be really helpful as they assisted me in restructuring my complete portfolio. Becky Lou Gordon, a well-known professional in her field who you may be familiar with, is none other than my advisor.

I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives and planned a call with her.

It was that she needed $9.4k or so total a month. And she has a house worth over $900k. So you know for a fact it's big, has a pool, is nice and so on. If you have that big of a house, why on earth are you needing to travel and shop so much? Fricken walk the neighborhood, chill by the pool for a bit, fix yourself some lunch, watch some TV, have some friends or neighbors over for dinner a couple of times a week, sleep, repeat.

Her net worth is tied up in real estate, not savings or stock investments… so she may be worth $1.5 million, but it’s not in her back pocket. She also sounds like she’s unwilling to sell the rental properties and then invest the cash into savings and mutual funds to cover her retirement expenses (which is what I would do!)

I am worth a million and don't have retirement savings. I have a $100K/yr government pension.

She she she she the question should be where is her husband???

@@austintomkewitz3981 she’s a strong and independent woman that don’t need no man to tell her what to do! 😂

She’s broke, that’s her problem.

Her rentals are not paid for. She is paying mortgage payments and keeping the difference as income.

@@insideoutsideupsidedown2218It’s funny too because she came in saying she didn’t have any debt, do people not realize what debt is?

@@barnabusdoyle4930 she said, "I don't consider that is a debt"... i.e. a mortgage. She's part of the "my truth" group that attempts to redefine reality. I've met a lot of folks like that in the real estate business: they say, "it's not a debt because the property is worth more than what I paid for it." . Mmmm....hmmm. Try telling that to the bank's foreclosure department if you miss three payments on your "not a debt."

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If this is important to her, the plan has her living for her lifetime in a very nice home, taking out some of the house equity to buy another property for cash that may net her $1200. If they take it out as a couple, they may both be able to stay there until they pass away as long as they pay taxes, insurance, and minimal upkeep. They will each have a small Social Security check and three rental incomes. If the two properties generate only $2400, what will the third one generate? another $1200? With two small Social Security Checks, they will be nowhere near $10,000 but would have more than enough for a middle-class lifestyle. ($6000?) Other than the inherent risk of rentals in general and the three rental properties generating about half of her goal, the plan seems feasible. The kids, if there are any, would inherit the rental properties. I am not a fan of the uncertain 4% yearly deductions from index fund investments so this is why I don't find her plan completely unsound as long as she lowers her expectations and has someone to manage the properties as they age. $1,000,000 to 1,2000,000 net after she buys a modest home and sells all properties would only net plus or minus $40,000 using the 4% rule and the stock market may tank for a few years causing her to invade principal. Only one caveat: two modest trips a year!

@@rsg6207 I agree, the stock market has a habit of stealing most of your money especially when you need it most. The whole concept of diversifying your portfolio is this kind of thing in the first place. Reverse mortgages are not a bad thing. The true risk of the mortgage is if you don’t pay your taxes or insurance, they will foreclose on you like any other mortgage. There is definitely risk with her plan, but it’s not without merit. These 2 shutting down the reverse mortgage makes me really think they don’t understand that product. A reverse mortgage actually has less risk then a regular mortgage because it’s only repaid once triggering events happen. Sell the house, turn 100, both of them go to long term care or they fail to pay for taxes/insurance.

@@sent18inel Yes. She'll have to get a DVD.

cd's are garbage.

@@commonsense-og1gz Yes I know but they are better then doing nothing which is what this woman is doing.

@@thegenxgamerr the rate of property equity is worth more than the cd, it is more than nothing.

@@commonsense-og1gz She is proposing to take 500K of equity out to obtain the next property. She is effectively decreasing her property equity by doing that. If she said she was going to take her 200K annual income to buy another property thats another matter but she didnt say that. So if she doesnt want to invest her 200K income into the market she should be getting a high yield account or CD minimally, or using it to cash flow the property.

She wasn’t disrespectful. She was tongue in cheek & playful

No he would’ve given her better and clearer answer. They didn’t seem like they knew much about the topic of real estate

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.

I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

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Still a loan

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Understanding Reverse- Well said. Ramsey Solutions is unwittingly harming older homeowners who may have benefited from a reverse mortgage with incomplete and uninformed commentary. Ramsey fans, please do yourself a favor and always do your own due diligence on any advice given. I believe that's what Ramsey Solutions any sound financial advisor would suggest to their listeners or clients.

They also have no idea what they are talking about in terms of student loan forgiveness programs and give disastrously bad advice all of the time about them. They are so used to dealing with stupid and irresponsible people that they simplify everything to the point of uselessness. People make huge decisions based off of their nonsense. Turns out radio host have no fiduciary duty to their listeners so they just like yelling instead of being rational.

So nothing will be left for the kids. Boo freaking hoo. Taking a reverse mortgage isn't a bad idea, because if the bank goes upside down, it's a no recourse loan. And, she gets the money tax free, because it's a loan and not income.

LOL you are betting on the bank going upside down? you are probably also betting on student loan forgiveness. @@michaelpalumbo4880

$2,400 a month in rental income is $28,800 per year, that's not going to pay for much travel after you pay for the necessities of life

But she said they make $200k each year. That's more than enough to live on. What am I missing?

@@brianal7143 that’s their salary, it goes away when they retire and then they have to live on passive income which in their case is rental income and perhaps a little bit of social security

@@brianal7143If she bought a few more investment properties or invested all she could with that $200k until they retired.. (5 years left to retire) they would be doing ok. But she wants to travel and spend all that now. My plan is to have a few rental properties paid for and live off of that. Along with a very modest Roth 401k. We will be ok. Nothing fancy. I do not trust putting my money in into the stock market. I do my minimum match. That’s it. I would rather have multiple paid off homes that generate revenue. Stocks can crash… but people always need a home to rent. With them being paid off.. rent can be lower than competitors to always keep they occupied.

The problem is she probably wants 10K a month AND still live in that nice $900,000 home...

@@shannonrose4916 something's gotta give tho... sounds like she's made up her mind on this reverse mortgage...