When your clients have home equity and need liquidity for business transactions or exit planning, a reverse mortgage can be a tax-efficient solution. We coordinate transparently with you to ensure alignment with overall tax and financial strategies.
Your clients have significant home equity, but converting or leveraging that equity creates complexity. They might face unexpected tax consequences, need immediate liquidity for business transactions, or need to clear liens before closing a sale. How can you help them access that home equity efficiently without triggering unnecessary tax liability or disrupting their financial strategy?
A restaurant owner in his mid-50s had taken out an SBA EIDL during COVID. The loan came with a blanket UCC-1 lien on all business assets. Now he had negotiated a purchase agreement to sell the restaurant. But the SBA lien created a 60-90 day payoff and lien release process that was holding up the transaction. The buyer was getting impatient, and the deal was at risk of falling apart. The owner needed a way to clear the SBA from the transaction immediately so the sale could close on schedule—and keep 100% of the sale proceeds for his retirement.
The restaurant owner's CPA called Renee to explore using a reverse mortgage to pay off the EIDL before closing. Renee explained the process clearly and coordinated directly with both the CPA and the owner. There were no surprises—everyone understood exactly what would happen, when it would happen, and how it would impact the overall transaction. The CPA stayed informed throughout, ensuring the reverse mortgage solution aligned with the tax strategy and exit plan.
Solution: A Home Equity Conversion Mortgage (HECM) on the owner's home. The owner accessed home equity immediately to pay off the SBA EIDL before closing. This cleared the SBA lien from the transaction entirely. The buyer received clean title. The deal closed on schedule with no delays. Bonus: The HECM interest would be tax-deductible on the owner's personal tax return, adding another layer of tax efficiency to the transaction.
The deal closed on schedule. EIDL paid off. Clean title transferred to buyer. The restaurant owner kept 100% of the sale proceeds as his retirement nest egg—no SBA lien eating into his liquidity or creating ongoing obligations. The tax and financial planning strategy stayed intact. HECM interest became deductible on his personal tax return. The CPA maintained the role as primary advisor throughout, with clear coordination from Renee every step of the way.
No delays from SBA lien release process
No SBA lien eating into sale proceeds
A HECM is a reverse mortgage insured by the FHA. It allows homeowners 62+ to access home equity without monthly mortgage payments. Funds can be accessed as a lump sum, line of credit, or monthly payments. For your clients, the key advantages are flexibility (they control when and how funds are accessed) and tax efficiency (the interest is tax-deductible on their personal return). Unlike a traditional home equity loan or HELOC, there are no monthly payments required, and the loan only comes due when the home is sold or the owner moves out.
As a CPA, you understand that home equity is often your client's largest asset—but it's illiquid. A reverse mortgage can be a tax-efficient way to access that equity without triggering capital gains (since it's a loan, not a sale), without creating ongoing monthly payment obligations, and without disrupting retirement cash flow. This strategy coordinates well with overall tax planning, business exit strategies, and retirement income planning.
Renee knows that HECM interest is tax-deductible and coordinates with your tax planning. She doesn't push reverse mortgages that don't make tax sense for your client's situation.
She calls your office, not just your client. You stay informed and in control. No surprises or conflicting advice. You're the primary advisor; she's the coordinating specialist.
Business sales, multi-generational assets, SBA liens, exit planning complications—she has expertise in scenarios that matter most to your clients. Not just simple reverse mortgages.
You're the primary advisor. She's coordinating expertise. This clarity prevents conflicts and builds trust with your clients. Your relationship stays strong.
Certified Reverse Mortgage Professional with 20+ years of specialization in reverse mortgages, HECM, and proprietary loan products. Specializes in complex coordination with professional advisors.
Have a client situation where home equity and liquidity need align with tax planning? Let's discuss how we can coordinate to find the right solution.
Schedule a Consultation
CRMP® Reverse Mortgage Specialist
Certified Reverse Mortgage Professional with 20+ years specializing in HECM, proprietary reverse mortgages, and professional coordination with CPAs, CFPs, estate attorneys, and fiduciaries.
NMLS #1360025 | CA DRE #01343046
Licensed in CA & WA | Associate Broker, C2 Financial Corporation