How do you report good payments to tax bureaus?

As the seller on a wrap, how can you report the buyer’s good payments to the 3 bureaus? The idea on a wrap is to get the buyer to refinance within a certain amount of time, so this would assist in building/bettering their credit faster, right?

Is this uncommon to do? I understand that if you’re lucky enough to have a buyer that provides consistent cash flow, there really isn’t a financial reason to get rid of the note, but theoretically…

There are numerous companies, which you can find online if you do a search, who will collect your wrap payments for a small fee and report to the credit bureaus. If you have a problem finding the right sources, let me know and I’ll send you a couple via email.

Also, once your wrap has over 6 months seasoning with successful on time payments, you could start marketing that wrap note to individual and institutional note buyers, if you are willing to give it up for a discount. At the sale of your wrap, the underlying note will be paid, making the wrap a first mortgage to secure the interest of the note buyer.

I’ve done this many times over the years. Also, I’ve traded my wrap notes to investors who loaned me money for other projects and used the equity in my wrap as a form of payment. This can also be done as a trade for another property or debt. It is all negotiable!!

Hope this helps.


Thanks Rob. What kind of “small” fee is fair when looking for one of these companies?