Wrapping a property is a simple concept that can create passive income for you and will give the purchaser a chance to buy a property which would have otherwise been out of reach at that time. However, there are a few things you must know before you jump in and trip up on some of the technicalities.
So what exactly is a wrap?...A wrap is when you then vendor of a property becomes more like a financier and less of a traditional landlord. The party interested in purchasing the property becomes responsible for everything the landlord normally takes care of, such as rates, maintenance, etc.
Wraps are generally suited to people who cannot get financing from the bank at that exact point in time, but will be able to acquire a loan in the near future. It is here that you become the bank. You offer them the property as if they were renting, however they rent money they pay you comes off their agreed purchase price. After a year or so when they qualify for a bank loan, they simply pay off the amount owing to you. This ensures that they will take good care of the property and at the same time, you have been getting passive income because the rent they were paying was more than that which you had to pay off your loan from the bank.
Property wrapping creates a win - win situation for both parties involved, so it is a good choice if ever the situation arrises where the buyer cannot get finance immediately. You walk away with a sum of money greater than what you put in, and they walk away with a property which they wouldn't have otherwise been able to afford.
For further information on this investing technique and many others, please visit me on www.propertyprecision.com/wraps.htm
Specific marketing campaigns are no longer just for automobiles and... Read More
One of the great challenges to selling a home can... Read More
Is a sharp correction in store for the real estate... Read More
Shopping for property in Belize is not as simple an... Read More
Excluding some professional real estate agents buying a house is... Read More
Real estate investing professionals look for all possible tax deductions... Read More
We have been studying a trend of new home buyers... Read More
If you haven't figured your credit worthiness and borrowing power... Read More
"CMA" is an abbreviation real estate agents use for a... Read More
Doing deals with sellers is why you went into lease... Read More
I start my marketing with obituaries followed with probate filings... Read More
Well, as we have discussed in previous newsletters first you... Read More
Title to a property is a record detailing the owners... Read More
You've probably heard a lot of opposing information about Investing... Read More
If only there were a way to sell your home... Read More
A house properly priced is half sold. But there are... Read More
For small business owners, commercial real estate investment is the... Read More
Is your pet worth $100,000? It may be if you... Read More
YEEHAW!!!!!! The south will rise again!! Can't you just imagine... Read More
Building your dream home is a process that takes some... Read More
There is no doubt that the market for houses has... Read More
My report is for you to use your power to... Read More
That's A Funny Thing To Say About Property Auctions; They're... Read More
Closing costs are often the last thing a person thinks... Read More
Learn how to sell your property faster and at the... Read More
A new business venture to help home sellers, home staging,... Read More
Successful Property Letting And Management is not something that just... Read More
That's an obvious question ? we all do! So what... Read More
Unlike traditional residential real estate mortgages, real estate investment financing... Read More
Much is being said lately about investments. There are many... Read More
The world of real estate has pretty much stayed the... Read More
The UK has gone property TV crazy. There are now... Read More
Your boss has just given you the career opportunity of... Read More
Having your house appraised can be a scary step in... Read More
Satisfying and lucrative real estate investment depends upon your correct... Read More
In our fast paced and frantic real estate market, buying... Read More
The real estate cycle, like the business cycle, refers to... Read More
Interested in investing somewhere other than your back yard?Management companies... Read More
Portugal has long been a popular choice for people, particularly... Read More
One of the most effective and frequently overlooked methods of... Read More
Should you sell your home yourself? Yes and no. Yes,... Read More
Last week, we started a multi-part series about how to... Read More
If you are making the transition from renter to homeowner,... Read More
To become a successful real estate investor it's vital to... Read More
In recent years buy to let has been a popular... Read More
I'm often asked about the basics of Design Psychology, which... Read More
Many of us dream about owning the vacation home in... Read More
Brazil Property - FortalezaThe PlaceWhat to do in a place... Read More
Most people take the easy way out when selling their... Read More
Turn the Television on any Sunday morning and you'll find... Read More
If you plan on getting the most from the sale... Read More
Your boss has just given you the career opportunity of... Read More
This is not an article about tricks for 100% (no... Read More
A Specialist Article For Those Interested In Real Estate Development... Read More
Location, location, location - known as the 3 most important... Read More
I don't know why I didn't do it sooner, but... Read More
Florida is known as the "Sun Shine" state, and the... Read More
Starting real estate business is not that simple. Multiple aspects... Read More
Welcome to the second segment of a three-part series about... Read More
The Murcia region in Spain benefits from some of the... Read More
There are three investment vehicles which can make you rich.... Read More
According to the National Association of Realtors, For Sale By... Read More
Real Estate Agents play an essential, critical role in the... Read More
Whether you're a "move up" home buyer, downsizing, or relocating... Read More
Here are some Handy wee Tips to help you Sell... Read More
Is real estate investing only for the wealthy? Can you... Read More
Real Estate |