Wrap Around Wholesale Deal
Hello All,
I have recently come across a Seller whom is allowing her property to go to Foreclosure, due to the stress. I would love to help this person out; however, I feel this deal is above my knowledge level. Below are the details of the transaction so far.
Mortgage Balance: $122,000
ARV: $185,000
Interest Rate: 2.5%
Monthly Rent: $800
Comparable Rent: $1200
Estimated Repairs: $50,000
According to an experienced investor...Does this seem to fit the mold of a wraparound transaction? Are Wrap Around Transactions only do-able with little to no repair costs? Can this person be helped through the service of an investor?
Thank you for any input!
Most Popular Reply
Still need a bit more information to completely analyze this deal.
Does she really have an existing 2.5% loan?
Need to know the amount it will take to reinstate the loan.
For me, I don't care as much about repairs, as I wrap these and owner finance them at 9-9.5%. So if my equity is chewed up in repairs, I will more than make up for it in interest. If she is sitting on 2.5% loan, I couldn't care less if the repairs exceeded the ARV, within reason of course. The monthly cash flow alone, will take care of that.