Learn How to Cash out Retirement Funds (Without Moving Out)

Daniel Abadi

This article is a complete guide to using leasebacks to cash out your equity upon retirement. 

This guide will cover the basics of residential leasebacks, how to get started, and the benefits it offers to retiring citizens. 

If you aim to retire at home or sell your house (or both), you found the right place.

What is a Residential Leaseback?

In short, an innovative way to sell your home and stay as a renter. A tool for cashing out your equity without sacrificing your lifestyle or the place you live in. Some customers have referred to leasebacks as a “reset button for their finances” and a way to pay off high interest debts without leaving the comfort of their homes. In this guide, we will cover everything retiring Americans need to know about this family-friendly alternative to home-selling. 

There are many ways to cash out your equity when 67 comes around. Some may have a respectable amount saved up in a retirement fund. Meanwhile, others might have it in stock. However, this new alternative helps retirees generate cash flow from their home equity without creating debt or forcing them to move out. 

The concept is simple: Sell your home, cash out, and stay as a renter.

Over the past couple of years, digital companies have begun joining the residential leaseback movement. Pioneers like Sell2Rent have created a user-centric platform that makes leasebacks easy for homeowners. To keep the process transparent and ensure homeowners get a deal near market price, they connect homeowners with investors around the country. 

It is important to note that Sell2Rent does not purchase homes. Instead, Sell2Rent finds investors willing to buy the house as a rental property and acts as the middleman throughout the sale process. 

How can Retirees benefit?

  • Financial Flexibility: Retiring homeowners cash out their home equity and stay as renters. Selling gives them financial stability, the ability to pay off debts, and ability to check off bucket list items. 
  • Fewer Tasks: Say goodbye to repair costs and constant maintenance! The new owner is now in charge of all the responsibilities that pertain to homeownership. 
  • Skip on Moving Out: Leasebacks are a unique opportunity for retirees to sell their homes without moving out. By this, homeowners skip the need to double the stress.
  • Easy Selling: By selling directly to a qualified investor, there is no need for marketing, open houses, or “for sale” signs on your lawn. A couple of pictures and a quick phone call will do. 
  • Privacy: Leasebacks are a way to sell your home privately. Your neighbors won’t even notice you have sold your property!

Additionally, by engaging in a sale-leaseback agreement, retiring homeowners will have a housing plan before retirement.

According to Expert Retirement Strategist Dave Buck, “As I work with clients, helping them establish a retirement lifestyle plan, almost 60% of participants in the Retirement Time Analysis (RTA) tool have done little to no planning for their long-term housing needs. Soon-to-be retirees often overlook creating a strategy with contingencies around where they will live and reside well into retirement.”

There are many ways to cash out once retirement comes along, but leasebacks have unique benefits apart from the extra cash. In addition to the five points listed above, selling through Sell2Rent provides an affectionate alternative to regular home selling. 

Retiring can quickly become a financially uncertain moment. By selling before retirement, retirees know how much they will receive for the property.

Leasebacks open the doors to a lengthy home-selling process (in a good way). Homeowners facing retirement can begin selling their homes through a leaseback way before the time comes without the fear of not having a place to live. The extra time will ensure they obtain the best possible offer for their home until they decide what their next chapter conveys. 

To start, homeowners can visit Sell2Rent’s user-friendly platform. Retirees can begin the process by filling out a 3-minute form about their property. Soon after, an experienced professional will contact them and guide them through the process (which we will explain in more detail). 

In general, leasebacks make selling a home easier. Being able to skip out on open houses, marketing, refinancing, and moving out, homeowners can now sell online and stay home after closure. 

Are Residential Leasebacks Right for You?

This alternative might not be for everyone, so let’s explore if it’s right for you. 

If you are retiring soon and testing the market, there are a couple of factors to have clear before making a decision. It boils down to two questions:

  • Do you need more cash?
  • Do you want to age in place?

If you responded yes to any of these questions, a leaseback could be down your avenue. 

If you could use more equity, a leaseback is a quick alternative to conventional home-selling or cashing out any other taxable asset. With the extra money, homeowners could pay off credit card debt, the down payment for a new home, or anything in between. 

If you wish to age in place, selling your house through Sell2Rent will allow you to do so. An expert will connect your property with qualified investors. Marketing the property to multiple investors will assure you obtain the best offer possible. After the sale, you liberate the equity and stay as a renter.

How to Get Started:

Sell2Rent offers commitment-free qualifications for homeowners who want to sell and stay. Head to Sell2Rent.com, click the “request offers” button, and begin your journey!

After you complete the form, an expert will contact you and guide you through the following steps. We will be on call to clarify anything that’s bugging your mind.

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