Although you’ve enjoyed success in your long career in sales, it’s always been as an employee rather than as an owner. In fact, your original idea was to take on sales training gigs after retirement (planned for the end of next year). Recently, however, you have become interested in owning and operating a franchise business. You’ve been exploring businesses very different from those of your present or former employer, in fields more in line with your fitness-related hobbies rather than with your past corporate sales experience.
You’ve already begun “stockpiling” cash reserves to cover the initial franchise purchase price, but haven’t wanted to lower your contribution levels to your tax-deferred retirement plans. You also want to avoid cashing in your personal investment portfolio, because you envision those assets remaining in place, generating quarterly and monthly income until you begin to generate cash flow from the new business. A mortgage refinance is also under consideration, since your existing first mortgage is less than one year away from being fully paid.
It’s often a challenge for new franchisees to support themselves until their business takes off, and you’re smart to avoid cashing in your hard-earned investments. However, rather than taking out a second mortgage on your home, consider tapping into the equity you’ve already built up by applying for a reverse mortgage, set up as a line of credit. You’d continue to own, maintain, and live in your home, but you’d have a source of tax-free* funds which you could use as needed, avoiding the need to sell off portfolio assets, and offering security in the early years of business ownership. (In fact, have a reverse mortgage in place as an “asset reservoir” will be seen as a positive when potential franchisors are considering you as a franchisee.
The housing wealth you’ve built over the years can help you transition into building new wealth, this time as a business owner!
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
*Please consult a tax advisor. Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender