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:

#1: Clear Your Calculator. Calculate the payment on your new note.

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

NoteInvestors.com Quickread…

elite-cash-flow-networkOWN YOUR OWN CASH FLOW BUSINESS FOR UNDER $300

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.

Read All About the Elite System

×

NoteInvestors.com Quickread…

sedefaultTHE SUPEREARNINGS PROGRAM WILL COVER:

×

NoteInvestors.com Quickread…

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

×

NoteInvestors.com Quickread…

Frequently Bought Together

bwt+sethumb
“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.

sedefault

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

×
optional-bonus
Act NOW and take advantage of this Extra Special Bonus OfferAvailable HERE ONLY (nowhere else) For a VERY limited time at a GREATLY discounted price…

The master note experts at NoteInvestors.com are extending this offer (for a very limited time) of their best-selling note marketing program as an OPTIONAL BONUS that will help you to get the most out of the “Building Wealth Together” program :

how-to-turn-90-percent-of-the-people-who-wont-sell-their-notes-into-big-time-cash-profits“How To Turn 90% Of The People Who Won’t Sell You Their Note Into Big Time Cash Profits” Set up a steady stream of business for yourself– far into the future– that will keep you brokering notes to Charter Financial for years to come! This note-finding program will teach you how to “Super Charge” your note business.

Save a whopping $50 on this program when you order “Building Wealth Together” NOW… (Regular price $79.95) that’s right– our “FLAGSHIP” marketing program for only $29.95.

AVAILABLE ONLY HERE AT THIS WEBSITE. Click HERE to learn more about the program.

(Just click the “ACCEPT” button during Checkout to add to Cart.)

THIS PROGRAM HAS NEVER BEEN OFFERED AT THIS PRICE BEFORE… AND NEVER WILL BE AGAIN.

The NoteInvestors.com marketing system shoots down your competition. The methods and strategies raise you to a high level… proving to noteholders that you’re totally different from the “run-of-the-mill” competition. The marketing system is powerful. You can actually mail to a list that’s been mailed several times by other note brokers and get money-making results.

Remember, you must learn how to do one thing well– how to find the notes that you will broker to Charter Financial.

Don’t wait. Act NOW AND SAVE.THIS OFFER WILL NOT BE REPEATED. To take advantage of this UNPRECEDENTED special offer, just click the “ACCEPT” button during Checkout to Add to Cart.
×
Our Guarantee

30 Day Unconditional 100% Money Back Guarantee! Our programs will help you succeed. You MUST be positively 100% satisfied or we will refund you in full, no questions asked.

×