Subject to or Wrap Around Mortgage

[Nithin Mathai]

Good night BiggerPockets Fam!, 

I have been trying to learn about subject to and wrap around mortgages to try and help this elderly woman to sell her house. Don’t get me wrong, I am trying to buy it from her, but she needs this sold to go to Florida and it’s already been listed for over 150+ days. 

Here is the situation as it is developing: 

Asking price: $669,000

Potential purchase price: $700,000
Remaining balance on mortgage: $293,000

This may be a stupid question, but how can I subject to or do a wrap-around mortgage for this property. This deal only works with a low interest and low down payment, so is it even possible for me to get into this home for 10% down or less. The seller is potentially interested in a subject to deal. Are there any other questions besides her current interest rate and if she already has a new home picked out (maybe the financials on that one?) that I can ask to get a better understanding of her situation? 

I can ask more questions, but she is going through her realtor for all communication, so I don’t want to waste everyone’s time by asking one question at a time. 

I am a complete newbie on this and have a little bit of a time crunch on learning this. I know this is Pace Morby’s wheelhouse, but I couldn’t find much on wraps on YouTube. I definitely don’t feel comfortable going through with this type of a deal without understanding the logistics, risks, and benefits (some of which I know). 

I appreciate any help you can provide. Thank you! 

[Travis Timmons]

My advice is to get off of youtube and find local investors doing these sorts of deals. Go to a meetup or something like it and get your questions answered by someone who closes these transactions, an attorney who writes up the contracts, and/or a title company that does this work. The stakes are simply too high for you and the seller to go into this guessing on anything.