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 .