A wraparound mortgage, or wrap, is a form of seller financing in which the seller's existing mortgage stays in place while the seller creates a new, larger mortgage for the buyer that wraps around the old one.
Log in to followI've been going back and forth on this for a week and I can't land on it. The wrap I keep looking at as a model: seller owes on a loan around 4 percent, sells at a higher price, c…
Working through a wrap on a small three unit and I keep landing on two versions of the same deal. Version A: sale at 340k, 10k down, wrap balance 330k at 8 percent. Underlying is…
Reading through this room, the thing that shows up in every failure story is the same. The buyer stops paying and the seller still owes the underlying lender, on time, every month…
I'm preparing rather than doing, and the piece I keep circling is who touches the money. In a wrap the buyer pays me, I pay the underlying lender, and I keep the difference. That'…
Trying to figure out where I fit in this business and wraps keep coming up in every conversation I have, so I read the chapter twice and then read a sample note. Here's the piece…
I've been running wrap math on a duplex I own with a 3.9 percent loan on it, about 141k left. If I sold at 215k with 15k down and carried the 200k at 7 percent, the buyer's paymen…
Seller owes 118,000 at 3.25 percent on a 1960s ranch that needs about 60,000 of work. She'll wrap at 6.5 percent on a 245,000 price with 25,000 down, 30-year amortization, balloon…