Using WRAPS To Buy Houses Without Using A Bank Or Your Credit - Profitably

[Ken M.]

Creative Financing

Did you know you can buy properties without using a bank?

You can use a variety of Creative Financing such as a WRAP.

WRAP – A wraparound mortgage "wraps" around the seller's existing mortgage, meaning the total loan amount includes the unpaid balance of the original mortgage plus the additional funds needed to finance the purchase. The seller retains the original mortgage and continues to be responsible for making payments to the original lender.

Here is the process

1. You find a property where the seller is flexible
2. We provide training (mentor) on how to do that
3. Usually these are not on the MLS
4. Or the property has been on the MLS, but hasn't sold
5. In your offer, you indicate you are willing to buy the property for their asking price if you can get your terms.
6. If they agree, and if their asking price is reasonable you can explain what your offer is.
7. Do so in person, so you can answer their questions. It gives more credibility.
8. Since real estate agents aren’t trained in Creative Finance and they can’t figure out how they will get paid, it isn’t useful to use a real estate agent for this technique
9. An example of Creative Financing can be found at the link following
10. .https://www.biggerpockets.com/forums/311/topics/1264041-how-to-make-a-reasonable-offer-using-creative-financing-to-a-seller
11. Once you have the terms agreed to, you put it into the purchase and sale agreement, (you can get one from Staples or Office Depot) and submit it to escrow.
12. Escrow does everything else.
13. In the rare event you want one, a real estate attorney will help you for a couple of thousand dollars.
14. Or, you can learn how to do these and other Creative Financing, just DM me.

Once you have the property, it can be used for Fix & Flip, STR, Rental, BRRRR or as a home.

[Ken M.]

Quote from @Mike Grudzien:

WRAPS can be tricky to execute (mostly newbies), but results can be awesome.

They can be tricky. The advantage of selling on a WRAP instead of selling using Subject to is with a WRAP you can foreclose if done correctly. With a sale using Subject to, you lose control.