Posted by Bronchick on May 12, 1999 at 09:45:59:
We do a lot of these wraps on an unrecorded land contract. Just make sure the interest rate does not violate state lending laws. For example, in my state (CO), the state consumer protection law kicks in whenever the interest rate exceed 12%, so we raise the price a little and lower the interest rate.
My “Cash Cow” course covers this topic in detail.
Help with wraparound - Posted by JC-FL
Posted by JC-FL on May 12, 1999 at 01:04:02:
Hello everyone. Let me thank you in advance for your help with my question. I have a property that I am advertising on a lease-opt. However, I had someone call me that does not want to lease-opt, rather purchase the property. This person has 5-6k for a dwn payment but, his credit will not allow him to get a high enough LTV to buy through a lender. I thought of a wrap,but, don’t know much about the pros and cons, and or how to set it all up. The property appraises at 60k and I purchased the property for 53k including closing cost and financed100% at 10.75%for 20yrs. Total PITI is $647 a month. Of which $503 is the actual note payment. I was thinking I could sell for 65k with 5-6k dwn and finance the rest at 12.5%. Any input will be greatly appreciated
Thanks
JC