All Forum Posts by: T. Alan Ceshker

Learn how to take advantage of the most powerful investment method known - Wraps and Sub Tos.

WRAP UNIVERSITY by T. Alan Ceshker -- The Wrap King

Join veteran real estate investor and 30 plus year real estate attorney, T. Alan Ceshker, for this highly-acclaimed, unique and valuable opportunity.

Alan will be teaching all aspects of a wrap/sub to from finding a wrap to structuring to contracting to managing and dealing with problems.

Entity selection and creation with more than a one person entity is something you should always hire an attorney to get this in place. You may want a 2 entity structure as Bill Hampton references. You may want a series LLC. You may be fine with 1 (non-series) LLC. A single purpose joint venture agreement may suffice. It is all based on your specific needs and plans. You can pay a couple hundred dollars and do this yourself online -- it is my opinion this is dangerous if the structure is tested via a dispute, death or otherwise. In my opinion you should get attorney assistance with this if you have more than one member/partner.

@Sho Asod Lenders do not know or care if their collateral is conveyed to an entity.  This is somewhat similar to a wrap in theory and lenders are even rarely concerned about this type conveyance - much less one that is a conveyance to an entity that is still controlled by their borrower. 

We simply draft a deed from individual to entity and the cost is minimal.  And, if there is an issue raised by the lender (which has never occurred for us), the fix is simple -- just deed it back to the borrower.  If a lender sends notice of default of the due on sale clause, you have 20 days to cure -- ie just deed it back to the named borrower.  The risk is zero.

Reach out and we can send you are documents detailing re wraps, wholesale, title process, reading a commitment, etc.  We are a law and title office and close investor transactions.  We can help get you started.

I have to differ with Nicole, when we close a wrap, sub to, assumption, etc. (I call all wraps), I draft loan documents. This is to ensure a fair and conventional looking, seller finance transaction. Also, having loan documents will allow the seller to get a new loan without paying off the old loan. The seller can show the note and timely payment and the debt will be removed from their DTI ratios.

Brady -- any advice and strategies are going to be contingent on what acquisition methods you are looking to pursue - ie cash, sub to, conventional lending, etc.  However, all would be benefited by having a mentor/coach/partner to advise on things until you have more experience.  You also need to attend as many good investor meetups as possible -- mentors can be found there.  Beyond that, you need a team in place: real estate agents, lenders, law and title, etc.  We have informational documents on the how tos of wholesaling, wraps/sub tos, title process, etc. If you want to receive any just reach out.

I wish you the best of luck in your investing efforts.

@Jeff K. If the current mortgage is a low interest, it is even better to create a seller finance note at a higher interest rate and cash flow more.  If the interest rate is not at it lowest possible, I would refi first.

I would seller finance the property via a wrap and take out the worries of being a landlord.

John Daetwyler with our office can help.  He is based in San Antonio.

We have been advised that Stewart title will not provide title insurance on foreclosures occurring after March 1, 2020 until January 1, 2021.  They relate this policy on the ban on federal foreclosures (CARES ACT).  We expect other underwriters to put this policy in place also.  Make sure you take this into consideration if buying a property the subject of a foreclosure during this period.