Wholesaling Deal With Wrap Around Mortgage

[Tony Ardison]

Hello All,

I am currently set to have my first appointment in a couple of days. It is a package deal where the owners (a couple) both own a home that’s literally next door to one another. They decided to buy a home together so now they’re selling the 2 homes.

They want $99k for the 2 homes combined. They both have an ARV of about $70k ($140k combined). So I figured my MAO for the whole deal would be no more than $45-50k.

I’m not too familiar with Wrap-Around mortgages and how it’ll affect the deal but from what she told me, they got a wrap around mortgage for all 3 homes with the hopes of selling these 2 homes in order to pay off the remaining mortgages and put some money down on the home they’ve already purchased together.  Any help would be appreciated so that I can figure out how to approach this when I meet with the seller on Wednesday.

Thanks!

[Tony Ardison]

Aahhhh ok that makes perfect sense. So I wonder if she’s saying they have a different wrap around mortgage on one or both of their current homes. The service was kind of bad when we had the initla phone call so I’ll get a more clear picture when I go meet with them tomorrow evening.

Also, they’ve already purchased the new home and are currently living in it. So their 2 homes for sale are both vacant.