Equity Rich Cash Poor! Need HELP~

[Ruchit Patel]

Hello,

I know two retired families in my group, sitting on $3M+ real estate, free & clear. They living in it. Very humble, hardworking, blue-collar family and they happen to grow up in a part of California that is highly desirable now. So their not-so-good place is wroth more than 3 million.

They have no income, so they can't refi or HELOC to use their equity for their personal expense. My question to this forum is, what's the best practice here? How can they tap into their equity and live a normal life? I feel sad when I see them stressed out about money all the time.

All suggestions are welcomed :)

Thank you.

[William Simpson]

Hey Ruchit,

A few ideas come to mind.

1. Would be to sell and perhaps down size. I've had some older relatives go this route. They sold their home and retired to a very walkable 2bed 1 bath apartment in a neighborhood they liked. They used the profits to fund their life style.

2. I know this is a somewhat controversial product but a reverse mortgage is an option for folks who want to remain in their home and age in place but need a source of cash flow.

Hope this points you in the right direction.