Structure Wraparound Mortgage

[Sofia Ruano]

How do you structure a wraparound mortgage?

Does title get transferred in a wraparound mortgage?

I saw a recent Letter of Intent with an offer to the seller with an All Inclusive Trust Deed

Terms: $400,000 CASH DOWN. Seller to carry a 1st via an “All Inclusive Trust Deed” on mirror terms with a principal balance of approximately $1,086,000 at 4.27% annual interest rate. Seller to Carry a 2nd for balance of approximately $654,000.00 with an annualized interest rate of 3.75%, due in full on December 2019. The second loan will earn seller an estimated $85,837.50. Seller to be named on Property Insurance Policy to protect seller’s investment.

How would you take that LOI and turn it into a purchase contract?