How the wraparound can be used to make more sales
You should study the wraparound thoughly so that you understand its attributtes. Then take several properties presently have listed and restructure the existing financing via a wraparound to see see what happens to their marketability. If the result of the modification is that you have increased cash flow, then there is a good chance that you will make more sales.
Your success with this technique will depend alot on selling this concept to the buyer as this will depend on what other alternatives are available to him or her. But if you can offer the wraparound at better terms than the existing market then there is a good chance that the buyer will go with it.
The advantages of the wraparound must also be explained to the seller. The wraparound is a vey effective selling tool, It is possible that third party loans might become more popular in the future, but this should not discourage you from looking into the possibilities of the wraparound. The reason is many lenders are not interested in moving into the third party market which will create opportunties for the wraparound. One disadvantage of the wraparound is that the fund may not be available for use when they are needed, in essence the returns to the seller are delayed.
