Wrap Around Mortgage Deal

[Freddy Alban]

Investment Info:

Single-family residence note investment investment.

Purchase price: $78,000

I bought a single-family home for $78,000 and secured a private money loan to cover the full amount over 30 years. We later sold the property on seller financing terms, asking for $139,000 with an $18,000 down payment, also spread over 30 years. Thanks to private investors, this transaction required no upfront cash from us.

What made you interested in investing in this type of deal?

I attended a conference where I met individuals who specialize in wraparound mortgages. Originally, I had planned to wholesale the property for a quick $15,000 profit. However, I quickly realized that I could ask for a down payment from the buyer. Since my private lender did not require a down payment, this approach would work well.

How did you finance this deal?

Private money