At this very moment i'm speaking to a broker about a 33 unit apt. that the seller is selling and is talking to me about doing a mortgage wrap. Heres where we at so far:
(1): 1bdrms, 1bath
(2&3): efficiency & studio
N.O.I = $94,287.21 (yr.)
= $7,857 (mnth)
Ask: $ 1,300,000
------ Mortgage Wrap -------
Seller: $700k left on loan
$500,000 down (1st)
$800,000 (2nd to Seller)
Month to Seller: ???
(broker won't disclose, want's to see proof of funds)
Should I have even bothered with posting this due to the unit sizes?
How does a mortgage wrap work when wholesaling this to an end-buyer?
yes I know there's most likely not going to be a buyer for this due to some reason, or I could be wrong. Right now the broker is willing to help me get a low rate mortgage for my down payment which I have no intention of getting. Also he has not mentioned to me who the company is that's managing the property and won't give me the rent roll to see the most recent financials.
What do you guys think about this, I'm not sure.
You really need to stay away from these size deals until you've learned more. You're not going to qualify for the financing. You can't "get a first mortgage" for your down payment, because there is already a $700k mortgage on the property, which will always be the first. Even on a smaller scale, you're not going to be able to"wholesale" a wrap purchase, since then loan will be in Your name, and you can't "assign" that loan to someone else. The seller would have to agree to let someone else "assume" your loan.
Huh!! Yeah.......apparently, all the things I've learned so far doesn't seem like I've learned anything based on my posts about deals and numbers I mention. It's ok because I'm a taticle learner, I will only get better with hands-on practice; constantly sitting, listening and reading is obviously not helping me. Or Maybe it is and i'm just ignoring my preference to see if I got the numbers down right when dealing with any property. Sorry for wasting you guys time on posting this.
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