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...
Monthly P&I; $582.45
Monthly OE: $553.17
Cap Rate: 6.36%
Thanks Frank...interesting read!
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