"Double Wrap"?

[Chris T.]

I have a lady, Inga, wanting to sell her property for $80,000 that is worth $100k to $110k. (she put $30,000 into the rehab and has a $50,000 home equity loan)

I have another lady, Gertrude, wanting to know if I would sell her a home and have me carry the note. She can borrow against her 401k for the down payment.

If Inga wanted to carry a note for me could I then sell it to Gertrude by offering owner financing "wrap" and then DOUBLE CLOSE?

If so, then how would I engineer the contracts?

Also, if I double close, can my closing costs come out of Gertrude's down payment?

[Nick J.]

no need to double close as far as I can see.

Does Inga only have the 50k lien but she want's 80k b/c of the money she put into it? is that why you're saying 'wrap' the A-B?

So wrap the A-B and 'assign' it to Gertrude for a large 'assignment fee'
If you're wanting to have a note on the B-C with Gertrude to collect monthly payments as well then just 'assign' the A-B for your 'downpayment' and then open a note( now 3 total liens on the property ) and make sure you have a higher interest rate and a shorter balloon.

I think to make it much simpler is to 'wrap' with Inga and L/O to Gertrude with no more than a 2 year term. This way you will still own the property in case Gertrude defaults, you can take her down in the form of a 'option' fee and still determine price, payment and interest and if Gertrude doesn't exercise within the 2 years you keep her 'option' money and do it over again with someone else.

Hope that cleared some things up