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Paul Ogier, CFO of Lutheran Senior Services (LSS), presented his organization’s innovative marketing strategy during the 2011 Sims Conference in Orlando, FL. The LSS Home Exchange Program allows prospective residents to convert their homes into an income stream via a gift annuity. Based on an appraised value, the fixed payout rate of the annuity is tied to the American Council of Gift Annuities’ recommended rates. The program counters challenges in the real estate market, by relieving prospective residents of the task of selling their home.
By gifting their homes, prospective residents cannot fund the entrance fee with home equity, which is the generally preferred option. LSS has therefore devised other options including paying a minimum entrance fee of $5,000 and instating a higher monthly fee.
The Home Exchange program has created benefits for both prospective residents and LSS. Through the LSS system, approximately 50 current residents participated in the program with a combined home value of over $9 million.
LSS is based in St. Louis, MO.