Original message
| Vlad
  |  "Wraps"
, Sun 6 May 21:58 
Hello,
How would I go about looking for properties to wrap? Is wraps the same as offering Lease Purchase to a buyer?
Vlad
"He who throws dirt loses ground."
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Replies:
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| wgreau
| "Re(1):Wraps" , Sun 6 May 23:20
Vlad: When you wrap an object you put something around it, like wrap it in wax paper. Okay? Therefore when you wrap in Real Estate you are wrapping a new mortgage around an existing one.
If you are running an ad in the local paper that says "We Buy Houses", for example, and someone calls you who is in financial trouble and is willing to let you take over their property if you'll just make up their back payments and keep on paying off their existing mortgage....you would then find a buyer and create a new mortgage (promissory note) between you and them thereby wrapping the existing mortgage with your new one so your new buyer is paying for both of them. Where people bought a property back in say 1985 and they still have the original mortgage in place, that mortgage is likely assumable without qualifying. That means you could take over that mortgage, create another one that wraps around the one you assumed and you then pay the first mortgage out of the payment made to you by your buyer. Example: The original mortgage has a balance owed of $32,000 and you sell the property for $75,000...you would create a mortgage for your new buyer (you being the lender now)for $67,500 ($75,000 less $7500 down pmt). Your mortgage of $67,500 is made up of the $32,000 plus another $35,500 wrapped around it. Hope this makes sense to you. If not, then you need to be reading the archives or buying yourself a course. I may not have explained it simply enough for some people but it should make some sense to most people.
William Columbus OH
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