HOW TO REFI WHEN USING A WRAP

General Real Estate Investing
1

Hi All,

If someone can explane in some detail about doing a wrap around deal It would be great!
How do you refinance etc if the deed is not in your name?

I was going to look at a 5 family and wanted to do a wrap to cover the exisiting loan and have the seller take a second / note for part of his equity.
How do I do this?

I will give you a thanks now for your help…
Thanks!

2

When you buy with a wrap, the deed is in your name. You simply sign a note and a mortgage to the seller that wraps the underlying mortgage. I think you are thinking of Contract for Deed, even then you can refinance fine since you can prove the purchase.

Any mortgage broker or title company can tell you what they need.

3

Thanks,

Would this trigger the due on sale clause? If so how would you get around that?

JD

4

Yes, all wraps trigger the DOSC. You just take title in a land trust first, then proceed with your wrap and no DOSC violation.

5

There is no DOSC jail. I take them on wrap all the time and banks never call the loan due.

6

Hi,

Thanks for taking the time to answer.

Would it b
JD