All Forum Posts by: Elliot Erickson

Mr. Brooks, thank you for the information.

Are there any solutions you know of where I could still get a deal done. It pains me to walk away from a seller who is so primed to get out.

Thanks!

Walter,

I am in your same position. In the past few days I have seen three houses where the owner received my letter and 'just wanted to see' what I could offer. In every case I was WAY below what they wanted. We shook hands and I gave them a card.

They are going on my drip list, who knows if their situation changes or they really did need to sell but are holding out. If eventually they are willing to take a deep discounted price, at least they know my face, name and number. Also, I was able to get good practice in the negotiation aspect of this business. I am just starting out so nothing is a waste of time for me, at this point.

Best of luck, sir.

Elliot Erickson

Here is the full deal as I see it. I am not sure if I have the concept right.

Seller has a first mortgage for 120k, they have around 15k equity in so owe 105k. Seller took out a second mortgage a few years ago and owes 15k on it.

I would like to set up a wraparound on the first mortgage for 120k, Seller can use the equity on this deal to pay off their second mortgage.

I would like to set this up and flip the deal to another investor or retail buyer with bad credit and some cash. I will reassign the contract for a fee to them. Can I do this? Basically can I tie up the property to find a buyer?

Also I have read that a title company will service this whole thing. Buyer pays the title company. Title Company pays mortgage. Title Company will profit off the interest rate spread on the wraparound.

Would a Subject To work better in this situation?

I am going to set outline this tomorrow to the Seller. I really hope to be able to do it and not have to back out due to my not understanding (which I will do).

Hello all,

I have a great wraparound candidate on the hook. They want out of the house really badly but have basically no equity. The house is in good condition and could be rented out right away.

My question is can and how do I tie up the property with a wrap around in mind, then go market? Do I just use a regular purchase agreement and deal with the wrap around documents at close?

Thanks!

Elliot