Nick Legamaro and Jay Conner talk about how to make a Real Estate deal using the wrap mortgage strategy.
This strategy is one of Nick’s favorite when buying distressed properties.
Watch this video now to learn more.
Nick Legamaro a.k.a “Nick The Note Guy” has been investing in real estate since 2001. He has done just about everything there is to do in real estate. He even experienced the crash firsthand in 2008 and lived to talk about it!
He has bought, fixed, rented, sold, flipped, or been a lender on 1000+ properties. He has personally looked at over 10,000 deals. He has built companies for profit and recently sold one to a 100-year-old Federally Chartered BANK! He has done lots of “HEAVY LIFTING” but in moving forward I have made a HUGE shift!
This is where investing in Performing and NPL Real Estate Notes comes in. With his expertise and technology, he can “control” not “own” millions of dollars of assets nationwide. Now he is ready to show how you too can “Be the Bank” and invest in High Yield, Low Risk, Securitized Real Estate Mortgage Notes.
For more valuable information click on this link and watch the complete episode: https://youtu.be/NlD3O9B8rc0 – “Notes & Wholesale Deals With Nick Legamaro & Jay Conner”
Private Money Academy Conference:
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Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.
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Jay Conner:
Let’s be sure everybody understands, when you’re talking about doing a deal on a wrap, let’s unpack that for a little bit. We’re doing a deal on a wrap. You got two notes involved in this transaction: you got one note over here from the seller of a house, the seller of the house has agreed to sell it to you, Nick, your entity, your student’s entity, whatever. You’re buying it and instead of borrowing money from the bank or using private money, the seller is a grain to sell it with seller finance and they’re taking back a note and you owe them. Now, we’re going to sell that house still creatively but how is this second note, a wrap and why is it called a wrap?
Nick Legamaro:
It’s called a wrap because that’s exactly what we’re doing here. So we have the let’s call this the underlying bank of America mortgage for a $100,000 at 3% and we’re going to maybe put 10,000 in and give the seller maybe another 10,000, and we’re going to sell it for, let’s say $180,000, and we’re going to charge maybe 8%. The new mortgage that we write is a wrap and it goes on top of it. So technically the wrap mortgage is a junior lien or in second lien position to whatever the underlying debt might be in the form of the bank and that’s basically the difference. I’m going to owe bank of America because of the agreement that we say, maybe you know, 3% on a hundred thousand dollars of balance, but I’m going to collect another, maybe $150,000 at 8% and the difference is what we call arbitrage. When you run amortization schedules, you can really see the benefit or the effect of that over time, as long as you can hold that note in place.
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