Wally Wrap™

Wally Wrap™ 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's a Wrap Seller?

A motivated Seller includes:

  • Investor
  • Sophisticated Seller
  • Retiree
  • Job Loss
  • Relocation
  • Divorced
  • Those who want to close fast!

Seller Registration

Who's a Wrap Buyer?

A motivated Buyer includes:

  • Sophisticated Value Investor
  • New College Graduate
  • Bankruptcy
  • New Business Owner
  • Divorced
  • Bad credit
  • Those who want to close fast!

Buyer Registration

Wally Wrap™ – 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. = $20,000 Seller Total Equity*
  6. Closing costs are typically split 50% Seller & 50% Buyer, negotiable.

Wally Wrap™ – 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.
  • Buyer Motivations – HAVE CASH: 2 years from bankruptcy, credit issues, new business owner, divorce, sophisticated leverage investors.

Provide deal terms to our office. We will prepare and facilitate the exclusive Wally Wrap™ “no risk” contract. Parties attend Pre-Closing Conference (PCC) for detailed explanation of Wally Wrap™, wrap financing dynamic, issues and procedures. On parties approval, closing is scheduled for 8 days or later.

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

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