My .02 - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 13, 2001 at 14:02:48:
You need to choose the niche you are going to invest in. Will it be rehabs??? Flips?? Buy and hold?? Mobiles?? Single family?? Multi-unit?? Commercial?? Lease option?? Paper?? And so on…
Then at that point, you can pick a course which is VERY specific to what you are trying to do. Otherwise, you are just running around trying to learn everything about everything. You need to focus.
As for your questions…
A wrap around mortgage (also called a wrap or AITD or all inclusive trust deed) is a mortgage which “wraps around” the first mortgage. So the first mortgage stays in place, the new buyer pays the seller on the wrap and the seller pays on their existing mortgage.
A lease is merely an agreement to rent a certain property at a certain rate for a certain period of time. An option is the right but not the obligation to buy something at a certain price on or before a certain date.
A sandwich lease option is a set of lease options with an investor in the middle. SO for example, the investor would lease from the owner at 500 per month for 3 years with the option to buy the property at 100,000. Then the investor would sub-let to a tenant/buyer for 700 per month for 1 year with the option to buy the property at 110,000.
Get the seller to finance the property by asking…