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Early Mortality - HUD Study
The younger they join, the faster they die
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A HUD study* ≈ 1M reverse mortgages.
Ex: A 75 female, and 12-yr life expectancy.
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Joined - age 70s
die 2x (Yr 6) to 3x (Yr 4) faster
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Joined - age 80s
die 1.5x (Yr 8) faster
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< 10% survived for 10 years.
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Already in physical/cognitive decline.
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(See HUD Article attached)​
Self-Cancelling Installment Notes
SCINs
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Monthly payments to life expectancy, ​​ with a final balloon payment, if survive.
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Pmts cease at death from a self-cancellation clause.
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Self-cancellation requires an IRS 'risk premium' payment to the homeowner.
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SCIN Payments = 1) interest & 2) 'risk-premium’ interest.
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100% tax-deductible interest in early years.
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100% additional basis principal for remaining term.
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Total SCIN payments far exceed other Home Equity payouts.
Monthly Payment SCINs
IRR - Early Mortality
Yr 4 128.2%
Yr 6 67.8%
Yr 8 38.0%
Yr 12 17.1%
Balloon 10.1%
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Tax-free
Lump Sum - example
Cash Gain Tax Gain
Inheritance = (500,000)
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FMV = 1,000,000 1,000,000
Appr (4%/5Yrs) 216,653 216,653
FMV at death 1,216,653 1,216,653
Cash Basis (500,000) (1,216,653)
Cash/Tax Gain 716,653 0 IRR 19.5% - Tax-free
Investment Opportunity
NFT Dollar Cost Averaging
NFT for Immediate Liquidity
$8 Trillion in Senior Home Equity
Diversify by Homes and Homeowners
Help Senior Homeowners Age-In-Place
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The POWER of Early Mortality and Self-Cancelling Installment Notes