Wrap Around Loans

If you know how to use a financial calculator, you have a very powerful tool for building profits in both discounted notes and real estate. As mentioned elsewhere, we like the Texas Instruments BA II+ or the Hewlett Packard 10b. Using either calculator, you can easily solve the problems below.

All sophisticated note and real estate investors should understand Wrap Around Loans. A “Wrap Around” or “All Inclusive Deed” or “All Inclusive Contract for Deed” wraps around another loan called the underlying loan. For example, on an investment home there may be a \$50,000 underlying loan written at 10% interest. You could place a \$20,000 second loan on the property with interest at 12%.

Or, if you are a sophisticated investor, you could place a \$70,000 “Wrap Around” loan on the property. Your \$20,000 is “wrapping” the \$50,000 first loan. The payor would pay you the payments on the entire amount and you would pay the payments on the underlying note. The effect is that you will make 12% on your \$20,000 second and 2% on the underlying \$50,000 first.

You can use this knowledge to buy a note for “No Money Down.” Here’s how: Buy a house for \$100,000 with \$10,000 down and a 7.5% interest rate. Then assume or create the following 10-year loan:

 N I/Y PV PMT FV 120 7.5% -90,000 \$___ 0 This is your monthly Payment.

You then sell the house for the same \$100,000 with \$10,000 down, and you carry back this note at a 11% interest rate:

#2. Calculate the payment (PMT) on your new note.

 N I/Y PV PMT FV 144 11 -90,000 \$___ 0

Your \$90,000 is wrapping the note held by the person who sold you the property, but you are getting higher monthly payments. The effect of this is that you get back all of your money when you sell the property and you get the benefits of the wrap.

• You get \$59.88 for the next 120 months.
• You get 24 months of \$1,128.20, all with no money invested.

What You Have Learned: Wraps are very powerful and as real estate begins to look like an improving investment, we should learn to use them to make fantastic deals on property.

Box # 1: Pmt = \$1,068.32; Box # 2: Pmt = \$1,128.20

Note Investors’ Elite Cash Flow Network Support System is a complete “BUSINESS IN A BOX” that will get you started in your own Cash Flow business, even if you have very little or no money to start with.

When you join the The Elite Network, you get everything you need to succeed, including jump-start orientation, personal one-on-one support, the Cash Flow Industry’s most powerful training programs, Master Cash Flow Specialist Certification, ready-to-use marketing kit, direct access to cash for your transactions and much more within a super-affordable package.

×

THE SUPEREARNINGS PROGRAM WILL COVER:

• What are discounted notes, mortgages and cash flows
• Up to date assessment of the current market climate
• How to find notes for maximum profit and minimum risk
• Increasing income through brokering notes and cash flows
• The four steps involved with EVERY note transaction
• About working with funders and learning as you go
• How to figure your referral fees and how you get paid
• No-money-down strategies
• How you can earn spectacular rates of return investing in notes
• The financial calculator made easy
• How to figure payments, interest, present/future value, balloons
• Reducing risk and increasing return
• Retiring rich
• How you can obtain very high cash flows
• Have fun
• And much, much more.
×

IN THE “HOW TO TURN 90%..” PROGRAM, YOU WILL LEARN:

• Why now is the best time ever to be in the cash flow business
• Why new, inexperienced people fail and how to avoid the failure pitfalls
• How to instantly make short term profits and ensure your long term success
• The three essential challenges for a successful marketing plan: keep, create, repeat (how to keep in front of note holders, create urgency to sell, and how to generate repeat referral business)
• What to expect when you start an effective, affordable direct marketing campaign
• What you must do to create a successful, professional, profitable marketing campaign
• The four components that make up a successful marketing campaign
• The three components that make a financially life changing marketing campaign
• How to SUPERCHARGE your note business by gaining entry to the professional market
• How financial professionals can supply you with REPEAT REFERRAL BUSINESS
• What is a Note Owner’s Manual and how it can change your financial life
•  How Note Appraisals can increase your cash flow, give you credibility and get your foot in the financial professional’s door
• And much, much more
×

Frequently Bought Together

“Building Wealth Together” + Superearnings Master Cash Flow Specialist Certification Course- AVAILABLE TODAY VIA INSTANT DOWNLOAD FOR JUST \$39.95 EXTRA (A \$40 SAVINGS OFF THE REGULAR \$79.95 PRICE)

Now you can start your note business with the “Building Wealth Together” program and also earn Master Cash Flow Specialist Certification (which carries National recognition and will help you do even more business) through the Superearnings program. Using these two programs together will greatly increase your earning potential, and, if you act today, you will SAVE substantially by ordering both.

HERE’S HOW YOU WILL BENEFIT FROM ADDING THE SUPEREARNINGS PROGRAM TO YOUR ORDER TODAY:

• Download the course now, get in on this unprecedented offer, achieve the designation of MASTER CASH FLOW SPECIALIST (MCFS) in the form of an official Certificate of Completion carrying National recognition (credibility = money in your pocket)
• Get trained in the mechanics of the discounted cash flow business by experts with 50 + collective years’ experience
• Immediately learn how to find cash flows, fund them, maximize returns, work win-win-win transactions for the benefit of all parties
• Learn how to work with funders effectively (“other people’s money” or OPM)
• Learn how to find, broker and INVEST in high reward low risk discounted cash flows by bringing in “money people” who put up most or all of the necessary funds
• How to figure your referral fees and how you get paid
• Learn how to put together large monthly income streams that flow directly into your bank account
• Learn how to aggressively compact the time necessary to amass a sizeable retirement fund
• Remember, you will gain top-flight industry credibility almost overnight by taking the accompanying test and gaining MCFS Certification
×
optional-bonus