RM HIVE Meeting 5-6-26

Quick recap

The meeting focused on strategies for working with financial advisors and discussing recent cases and approaches in the reverse mortgage industry. Chris shared his challenges in engaging financial planners and getting past gatekeepers, while others discussed handling objections about discussing reverse mortgages with clients. John presented a case study about using HECM loans to avoid taxation on Roth IRA conversions, sharing his personal strategy and a calculator tool he developed. The group also discussed recent successful cases, including Chris's work with a client seeking an exit strategy after a house fire, and Julie's completion of a complex case with American Senior to prevent a property tax sale. The conversation highlighted the importance of building relationships with financial advisors and presenting case studies to demonstrate the value of reverse mortgages in various situations.

Next steps

• John: Send the ROTH conversion/Hecm illustration calculator to the group for feedback and testing.

• David: Send case studies and information about Reverse Mortgages to the financial planner over the next 8 weeks.

• John: Upload and share the presentation materials and personal case study from the recent advisor event with the group.

• Chris: Share the Google Sheet lookup/model used for the Navy Federal scenario with the group.

• John: Review the illustrator with Todd and play with it further before wider release.

• John: Upload meeting notes a little bit later (as mentioned at end of meeting).

Summary

Star Wars Celebration Planning Discussion

The meeting began with an informal conversation about Star Wars Celebration tickets going on sale, with Julie planning to purchase VIP Jedi Pass tickets for the event in LA next year. John shared his experience attending early Star Wars screenings and mentioned he had secured World Cup tickets but was unable to get Olympics tickets due to high prices. The formal meeting started when David joined, with John transitioning to ask participants about recent developments and exciting conversations they had had in the past couple of weeks.

Reverse Mortgage Outreach Strategy Discussion

Chris expressed challenges in converting financial planners to work with reverse mortgages, noting difficulties in getting past gatekeepers and scheduling appointments. The group discussed the importance of focusing on basic outreach strategies rather than getting distracted by "shiny objects" like new tools and AI. John suggested revisiting the FAST Financial Advisor Success Training process in future meetings, which includes a four-week outreach strategy involving LinkedIn posts, case studies, emails, and follow-up calls. The discussion highlighted that while new tools can be helpful, consistent basic processes are crucial for building relationships with potential clients.

Reverse Mortgage Objection Handling Strategies

The group discussed strategies for handling objections about discussing reverse mortgages with clients. John suggested challenging advisors by asking if they've ever had clients ask about reverse mortgages, emphasizing that it's inevitable clients will bring up the topic. Matt agreed, noting that advisors often overestimate their knowledge and suggested using a "story selling" approach by sharing real examples of how reverse mortgages benefit clients. The discussion concluded with John emphasizing that reverse mortgages are just one tool in their toolkit, alongside other products like non-QM loans and bank statement programs.

Reverse Mortgage Advisor Engagement Strategies

The group discussed strategies for engaging with financial advisors about reverse mortgages, with Troy sharing his approach of asking advisors how they would handle situations where clients' family members need reverse mortgage assistance. John emphasized the importance of sharing case studies, particularly non-needs-based ones, to demonstrate the variety of reverse mortgage applications. The discussion concluded with John mentioning a recent event where they presented on using HECM to avoid taxation on Roth IRA conversions, which generated interest from attendees who wanted to learn more about the strategy.

HECM IRA Conversion Strategy

John presented a case study showing how a HECM (home equity conversion mortgage) could be used to facilitate a $1 million IRA conversion while creating tax savings of $117,000. He demonstrated a new financial illustration tool he developed to model different scenarios, including voluntary payments and tax deductibility. The group discussed how many financial advisors miss opportunities around mortgage deductibility and acquisition indebtedness, with John emphasizing that this strategy represents a long-term planning approach that could benefit advisors and clients over the next decade.

Reverse Mortgage Case Discussions

Chris shared a case about a client who lost her house in the Paradise Fire and wants to use a reverse mortgage to purchase an exit strategy property. The client, who moved out of state, plans to use a line of credit from the reverse mortgage for future flexibility. Chris expressed concerns about appraising the property due to its unique characteristics and market conditions. John then described a straightforward reverse mortgage case involving clients with significant net worth who want to eliminate monthly payments to focus on travel and building a house in the Philippines. The conversation ended with Julie beginning to share another consumer case involving American Senior.

Property Tax Relief Success Story

Julie discussed a successful case where she helped a client with zero income save their house from a property tax sale using a first-position HELOC from American Senior. The client, who had no income and was living with her retired military boyfriend, owed $54,000 in back taxes on a property valued at $850,000. John and David briefly discussed their own experience with American Senior, noting challenges with their underwriting process. The conversation ended with Julie requesting a ROTH calculator from John.

Here is the Illustration tool - it is not ready for prime time. However, please go ahead and look at it. Think about it from your perspective as if you're inputting yourself, and then maybe create a short video for me saying what you think is missing, what can be dropped or enhanced, and so forth.

https://hecmintereststack-flax.vercel.app/#cta-section