Creative Financing in texas

Member since 2022 · 9 posts · 3 votes

Can someone explain the difference in wraparound mortgage and subject to the mortgage to me and is one a better tool. Also is there a special guideline in Texas to do a wraparound mortgage thanks guys

0 Reply

16 views

5 Replies

Jump to latestLatest

Sort by

Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Christopher Cole
Subject to is when you buy it subject to existing mortgage - a wrap is the second half a subject to where you then turn around and sell it to someone else and put a second mortgage on the property where the new borrower is paying you as well
7e investments53 Reviews
Website View Page
0 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
A wrap is if you owner finance a property that has a loan on it. Subto is when you take over the sellers loan payments
0 Reply
Christopher Cole
OP
Member since 2022 · 9 posts · 3 votes
3y
Quote from @Eliott Elias:

A wrap is if you owner finance a property that has a loan on it. Subto is when you take over the sellers loan payments
Thanks sir
0 Reply
Christopher Cole
OP
Member since 2022 · 9 posts · 3 votes
3y
Thanks so much for the information one last question is there a Appraisal done when doing a wraparound mortgage and if so does the buyer pay for it
0 Reply
Brad S.
Investor · Pasadena, CA · Member since 2017 · 612 posts · 523 votes
3y
Quote from @Christopher Cole:

Thanks so much for the information one last question is there a Appraisal done when doing a wraparound mortgage and if so does the buyer pay for it
**************************
An Appraisal is not required in a wrap, since there is no traditional Lender involved. But, it may be desired. In a wrap, the Homeowner/Seller is the Lender and they may want an Appraisal for their own satisfaction, but it is not necessary.

And for the Buyer/Investor, no Appraisal is necessary. And, the investor should be experienced enough to know the value to them, regardless of an appraisal.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.