• Turn a Rental with a Current Mortgage into a Mortgage Note (How to)

  • Feb 7 2025
  • Length: 22 mins
  • Podcast

Turn a Rental with a Current Mortgage into a Mortgage Note (How to)

  • Summary

  • ๐—ง๐˜‚๐—ฟ๐—ป ๐—ฎ ๐—ฅ๐—ฒ๐—ป๐˜๐—ฎ๐—น ๐˜„๐—ถ๐˜๐—ต ๐—ฎ ๐—–๐˜‚๐—ฟ๐—ฟ๐—ฒ๐—ป๐˜ ๐— ๐—ผ๐—ฟ๐˜๐—ด๐—ฎ๐—ด๐—ฒ ๐—ถ๐—ป๐˜๐—ผ ๐—ฎ ๐— ๐—ผ๐—ฟ๐˜๐—ด๐—ฎ๐—ด๐—ฒ ๐—ก๐—ผ๐˜๐—ฒ (๐—›๐—ผ๐˜„ ๐˜๐—ผ)

    Thinking about turning your ๐—ฟ๐—ฒ๐—ป๐˜๐—ฎ๐—น ๐—ฝ๐—ฟ๐—ผ๐—ฝ๐—ฒ๐—ฟ๐˜๐˜† into a ๐—บ๐—ผ๐—ฟ๐˜๐—ด๐—ฎ๐—ด๐—ฒ ๐—ป๐—ผ๐˜๐—ฒ? In this episode of the Paperstac Podcast, Rick and Brett explain how to create a note on a rental property with an existing mortgage. They cover strategies like wrap mortgages, creative financing, and how investors can leverage owner financing to cash out while still generating income.

    ๐Ÿ“Œ Key Takeaways:
    โœ”๏ธ What is a wrap mortgage and how does it work?
    โœ”๏ธ How to structure an owner-financed deal with an existing mortgage
    โœ”๏ธ Risks and legal considerations for selling a rental with seller financing
    โœ”๏ธ Benefits of transitioning from a landlord to a โ€œlien lordโ€ (note holder)

    ๐Ÿ“– Chapters:
    00:00 Introduction
    02:07 How to Create a Note on a Rental Property with a Mortgage
    02:50 Understanding Wrap Mortgages and Owner Financing
    04:30 Market Trends: Why More Investors Are Exploring This Strategy
    06:00 Key Considerations Before Structuring a Wrap Mortgage
    08:45 The Importance of Rental Cash Flow in a Seller Financing Deal
    11:00 How to Sell Your Mortgage Note for a Profit
    14:30 Tax Implications & Spreading Out Capital Gains
    16:00 Ensuring Proper Documentation for a Smooth Transaction
    17:55 Due-On-Sale Clause & Risks to Watch Out For
    19:20 Why Investors Love Wrap Mortgages on Paperstac
    20:30 Preview: Next Episode on More Efficient Bidding Strategies

    Interested in Buying or Selling Mortgage Notes?
    Visit https://www.paperstac.com โ€“ and streamline your note transactions securely & efficiently.


    ๐Ÿ‘ Like, Comment & Subscribe if you found this episode valuable! Let us know in the comments: Have you ever structured a wrap mortgage or considered turning a rental into a note?


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