Скачать или смотреть Seller Financing and Wrap Around Mortgage Explained

Heres an example of how this would work

Lets say my home is worth 1.3 Mil, and I have a mortgage balance of 600k at a 2% rate.

What I can do is offer seller financing but require the buyers put 25% down which is 325k

Giving me enough for at least 10-20% down on my new purchase and to cover closing costs.

That leaves 975k they have to finance, which I would offer at lets say 6% to make it attractive, given current market rates are over 7%

Since I still owe 600k I would do a wrap around mortgage at 975k, giving them a 30 year fixed payment of 5846 which I would use to cover the mortgage that would still be in first lien postion that I have at 2700 per month, leaving me with 3074 per month in pure profit.

Since I am not a landlord, I dont have to worry about repairs, taxes, insurance, etc.

You can set up the loan servicing for around 40 bucks a month from a company that will handle everything like accounting, statements, impounding taxes, monitoring to make sure they always have insurance and they handle forclosure If they fall behind on the payments

In which case you get the property back and keep all the money youve been paid so far.

So in this case instead of profiting the additonal 375k in equity (on top of the down payment they made) you would make over 1.1 million dollars in principal and interest if they kept that loan for 30 years.

Drop any questions in the comments

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