Subject to? wrap? - Posted by Jim (Alaska)

Posted by JohnBoy on September 20, 2000 at 14:33:54:

Different. “Subject to” is taking over the existing loan and getting the deed. If there was equity the seller needed you could get the seller to carry a second in addition to taking over the first subject to.

On a wrap you would be selling at or above the amount of the current mortgage and charge a higher interest rate. You would get the difference between the seller financed amount over your current payment.

You own a property that you owe $100k on. You sell owner financed for $100k or more. Your interest on your $100k loan is 8%. You owner finance for 10% - 12% making a nice cashflow of the difference.

Subject to? wrap? - Posted by Jim (Alaska)

Posted by Jim (Alaska) on September 20, 2000 at 13:33:49:

Hi folks, a basic question, but one that is confusing me. What is the difference between a “wrap” and buying “subject to”? Is it the same animal?