Most experienced investors see a wrap around mortgage as a valuable investment tool for both selling and buying investment properties. And of course, it is. This article looks at how and when to use a wrap to sell an investment in a way that brings in the most cash flow – profit that is higher but spread out over more time.
A Wrap Around is Not a Second Mortgage
There are naysayers that don’t like wrap around mortgages because in their confusion they think they are nothing more than a second mortgage carrying a high risk for the “seller-lender”. These people are wrong. A wrap around is much more secure than a second mortgage and offers significant financial benefits to the seller-lender. Let’s begin
Selling Investment Property with a Wrap Mortgage
When it comes to wrap around mortgages, most real estate investors will tell you it’s a great creative financing tool. And of course, it is. What most experienced real estate investors forget to share with you is that it makes just as good of tool when it comes time to sell your investment property as
How to Insure Property Bought With a Wrap Around Mortgage
First, I want to clearly state that I am not providing insurance or legal advice. I am only providing information to help you make your own decisions. Wrap around mortgages are a great way of financing real estate investments in today’s market. However, insuring a property purchased this way is often the biggest obstacle to
Using a Wrap Around Mortgage for Commercial Property
When you have a new business with little or no credit history, it can be nearly impossible to obtain a commercial mortgage. Especially in today’s tight credit environment. Still, when you look around any main street in any town in the country, you will see many “For Sale” signs on plenty of commercial properties. It’s
Structuring a Wrap Around Mortgage
Buying an investment property “subject to the existing financing” has appeal for several reasons. Today’s strict mortgage qualification requirements are one of them. If an investor has a blemish on their credit history, he or she will likely be denied a new mortgage for a house they want to purchase. Banks have also tightened their