WallyWrap™ Seller Financing – How it Works

A Seller provides a Buyer a non-qualifying wrap financing for a maximum 5 year (balloon) period, without payoff of Seller existing mortgage.

The Buyer provides cash down payment to negotiated Seller wrap financing. Within the max 5 year balloon period, the Buyer pays off wrap financing (including Seller existing mortgage) by refinancing or sale of home.

The Seller realizes deferred equity (if any) at payoff. The Buyer has utilized wrap as interim financing to own property and sell or refinance into mortgage loan.

Who would be a Wrap Seller?

A motivated Wrap Seller includes:

  • Purchaser of a new home
  • Investor
  • Sophisticated Sellers
  • Retirees
  • Those on a deadline to purchase a new home
  • One who is relocating (or already relocated)
  • Those who want to close fast!

Seller Registration

Who would be a Wrap Buyer?

A motivated Wrap Buyer includes:

  • Bankrupt
  • Graduating college student
  • Sophisticated Investors
  • New Business Owner
  • Divorced
  • Anyone with bad credit
  • Those who want to close fast!

Buyer Registration

WallyWrap™ – Model Transaction

  1. $100,000 Sale Price ($20,000 Seller Total Equity)
  2. $10,000 Cash Down Payment (Seller Equity)
  3. $90,000 Financing provided by Seller (Wrap Note)
  4. $80,000 Principal Balance of existing mortgage (Seller Prior Note)
  5. $10,000 Cash to Seller on payoff of 3. above = $20,000 Seller Total Equity*
  6. Closing costs are negotiable but normally shared by Seller & Buyer.

WallyWrap™ – To Do List

BE A MOTIVATED Buyer and/or Seller

  • Seller Motivations – URGENCY: Out of area move, divorce, job loss, behind in payments, medical expenses, impending new home closing, etc.
  • Buyer Motivations – HAVE CASH: 2 years from bankruptcy, credit issues, new business owner, etc.

Provide deal points to our office. We will prepare and facilitate the exclusive Wally Wrap™ “no risk” contract. Parties attend “no risk” Pre-Closing Conference (PCC) for detailed explanation of Wally Wrap™, wrap financing dynamic, issues and procedures. On parties approval, closing is scheduled for 7 days or later.

If either Buyer or Seller chooses to terminate after PCC explanation, the contract is terminated at no cost to either party.

Parties pay closing costs that are MUCH LOWER THAN NEW LOAN CLOSING!!! Let us take you through the process. We are the Wally Wrap™ experts so you don’t have to be.