I recently starting looking into purchasing a home and talked to a realtor if he knew how much any of the homes in the area went for. He said that a home across the street was purchased for 700k in cash. After the tenants moved in, they turned around and "got a large loan on the house to buy stock". I'm guessing this was a reverse mortgage.
My question is this. This transaction doesn't seem to make sense (buying a home and then borrow money on the equity of the home when the tenants could have just bought stock to begin with). Am I missing something?