Build Your Vetted Cash Buyer And Motivated Seller List
Wrap Around Mortgages
Risks of Wrap Around Mortgages and Benefits
What is a wrap around mortgage?
A wrap around mortgage is when a motivated seller finances the property and the buyer doesn’t have to put any of their own money down on the property.
A cash buyer can be a wrap around mortgage.
What are the risks to a wrap around mortgage?
The buyer might default.
They can both default. A motivated seller can be a bank.
You want the property free and clear. That’s why the cash buyer can be a cash buyer.
The motivated seller might be forced to take on too much second mortgage by the cash buyer.
The cash buyer assumes — takes over — the name on the title.
Benefits of wrap around mortgage
The motivated seller stays in their real estate.
The cash buyer owns the real estate.