Introduction to Wrap Financing for Real Estate Investors

Bonus Module

Wrap financing allows the seller to become your lender, but it’s a bit more complex than typical owner financing. The key difference is that the property already has an existing mortgage.

Here’s what makes it unique:

• Mortgage Remains Active - The seller keeps their original mortgage. It doesn’t get paid off when you buy the property.

• Single Payment to the Seller - You usually make one payment to the seller, and they use part of that to pay off their loan. Although variations of this can be negotiated and—depending on the situation—you may want to negotiate this.

• Negotiable Terms - You can negotiate things like the interest rate and length of the loan. However, these terms often need to fit within the limits of the seller’s existing mortgage.

• Potential for Small Down Payments - Compared to traditional loans, wrap financing may require a smaller down payment.

Be cautious, though. If the seller fails to pay their mortgage, the original lender may still foreclosure despite making your payments on time.

For more information about wrap financing and creative financing see our entire double-length module…

Unlock the Full Guide to Wrap Financing: Maximize Your Real Estate Deals

Ready to dive deeper into one of the most creative financing strategies available? Here’s what we’ll cover when you unlock the rest of this post:

• How Wrap Financing Supercharges Your Returns - Learn how this strategy can boost your appreciation, cash flow, debt paydown and depreciation returns.

• Finding the Perfect Seller - Discover the telltale signs of motivated sellers ready for a wrap financing deal and how to approach them.

• Avoiding Costly Mistakes - We’ll break down the risks of wrap financing and give you smart strategies to protect your investment.

• What Sellers Really Want - Understand what qualifications sellers look for and how to negotiate the best terms—even if you’re just starting out.

Don’t miss out on the chance to turn your next deal into a high-return investment. Upgrade now and get exclusive access to this step-by-step guide on mastering wrap financing.