I was recently working with a couple who had purchase three rental properties in an upscale resort area, planning to use the increased equity they planned to receive as a significant portion of their retirement plan. They unfortunately bought at the height (or nearly the height) of the real estate market. As you can imagine, they have lost a significant amount of their equity.
When they came to me to discuss their options, they were thinking of either short selling their properties or just walking away from the investment. The loss of equity was becoming a major problem for them. They had already used some of the equity with a second mortgage and had not additional room for any emergencies.
When we began talking, I showed them how the Money Merge Account (MMA) program would help them create the equity they needed to right-side themselves. And how they could payoff all of their properties within about 12 years and thus preserve their plans to use the equity for their retirement.
And not only could they payoff their three mortgages in this timeframe, but they could also eliminate their considerable credit card debt.
Because of the problems their underwater situation was causing in their relationship, they were not communicating on how to solve their financial difficulties. Once on the MMA, they were able to see more clearly where their financial resources were going and to work together to solve their debt situation. Without the MMA, they would not have been able to bridge this financial problem. They are now working more closely than ever toward a common goal...their financial future and retirement.
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