Creative Real Estate Financing and Acquisition Strategy # 7
Wrap Around Mortgage
Creative Real Estate Financing and Acquisition Strategy # 8
IRA Investing
CREATIVE REAL ESTATE FINANCING AND ACQUISITION 101 MATT THERIAULT
• When to Avoid: Avoid unless the Seller provides a title insurance policy clearing all items to which you, the buyer, object.
Creative Real Estate Financing and Acquisition Strategy # 7
Wrap Around Mortgage
• A / K / A: Wrap, All Inclusive Wrap Around Mortgage, All Inclusive Wrap Around Trust Deed, AITD, Seller CarryBack Wrap, among other terms.
• Often Appropriate When: Seller has much equity and a low balance existing loan compared with the property value. The interest rate on the Seller’ s loan is low. The existing loan has a lot of seasoning( the loan is many years old). Seller has no better investment options and likes the idea of a fixed rate of return over time.
• When to Avoid: Avoid this if there is a balloon payment or an interest rate adjustment coming soon.
Creative Real Estate Financing and Acquisition Strategy # 8
IRA Investing
• A / K / A: SelfDirected Retirement Account Investing, HSA Investing, SelfDirected 401K Investing, among other terms.
• Often Appropriate When: Seller will discount the price deeply for cash. Property needs a lot of repairs. Property has potentially great cash flow. Seller is willing to do any of the above strategies nonrecourse.
• When to Avoid: Avoid anything high risk or that will cash flow negatively.