Retal Property Purchased w/Wrap Trust?

4 Replies

Hello all...Does anyone know the details of a wrap trust? I found an offer for a duplex that was purchased under a wrap trust. The owner has been forced to move out of the vicinity and offers the property for sale by either assuming the $122k balance on the trust and $50k to him or outright purchase for $199k. The property has one tenant and appears to have net monthly cash flow of either $1200 or $890 depending upon how it is purchased.

Does anyone know the details and cautions of a property purchased with a wrap trust? Is this a scam or might it have potential?

Mike & Nancy

how can a duplex with one tenant cashflow $1200/mo?    How could it possibly cashflow if you factor in a $122,000 mortgage?

This might help you with the idea of a wrap trust, I don't have any experience with it but if it were me I would seek out an attorney that does.

Hey Dan...I haven't done any of the diligence on this deal (was really asking about the wrap trust), but I suspect the $1200 would be from two tenants.  Here is a quick hit on the financials...

Purchase: 122,000
Monthly P&I; $582.45
Monthly OE: $553.17
NOI: $7,762
ROI: 2.64
Cap Rate: 6.36%


Thanks Frank...interesting read!