Jason:
Why offer the seller a “wrap” type loan? Why not take title “subject to” their existing financing and have them take back a “soft payment” 2nd lien Note that would be due upon your RESALE of the property…?
Another way to go might be to simply get an OPTION to buy the property for $XXX and then secure your option with a Mortgage lien. Now you rehab & upgrade the home and when you are ready to market it for sale you excercise your option.
Is this a realistic model to buy listed homes…
Home is listed by a realtor, with a motivated seller, due to the house needing TLC, and having been on the market for 3 months. (Sometimes the house may have a bigger issue… ie. septic bad, bad roof, etc.)
House has dropped in price, and seems to be 25% under market, but not selling due to cosmetics needed.
I put an offer on the home with the seller taking taking back a wrap-- while I fix it up… Once done, I sell with owner financing… 70/20/10 or similar… Cash out the morts and keep the cash and 2nd mort?
As long as the seller is open to doing a wrap – I dont see why this wouldnt work…