James and Patricia had a very expensive, large home that they had lived in for quite some time. Even though they had 1st, 2nd and 3rd mortgages on their property, they still maintained a strong equity position. However, over the years they also acquired a lot of retail consumer debt.
When they finally decided, in their 70’s, to sell the property and down-size, they were informed by their realtor that the property needed a lot of work to make it really marketable at its price point.
They needed cash and did not want to add more monthly debt service and stress to their lives while they were working on the property.
Their financial planning attorney recommended them to me for counseling. After doing an analysis of their situation and looking at all available options, the best solution was an RYT limited equity share (LESS) with no payments required. Here is what we did for them:
They were able to access equity (AE) of $325,000 with the LESS. With these funds they were able to pay off their 2nd and 3rd mortgages along with all of their retail debt. This still left them with plenty of cash to remodel and fix up their property for sale. In addition, I was able to lower the max LESS participation to 12% of the AE due to the expected property sale date of 24 months or less.
I spoke to Jim after we closed the LESS. He told me that he and his wife have never felt so relieved in their life. The RYT Limited Equity Share System was indeed the perfect solution.
Marc has 36 years in financial services and 6 years in teaching.
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