I’ve had a client suggest adding her personal loan to the wrap deal. She has a $6000 personal loan and wants me pay it out and add it to the wrap deal…
Pros / Cons anyone , it isn’t a huge amount, but do i really want to go down that road, and will it come back to bite me in my ample behind?Supa Freak
It all comes down to whether or not you’re willing to put another $6000 of your money into the deal. Personally, I wouldn’t do it, but only because I wouldn’t want to tie up $6000.Keep smiling
Felicity
I would not do it. They may think this is an easy way to pay off the personal loan and then skip town. Put them on a lease option and they can go into a wrap when they have repaid the debt or tell them to come back when it is repaid and you can sell them another house then. Dont be someones free meal ticket.
Dave
If you start adding loans it can complicate a simple system. For example if you go before a judge, your occupant might claim that they have just refused to pay the personal loan part (so he/she part pays the payment for the RE, but not the total on both).
Also you have to tie up an additional $6K, for what??? The banks are demanding a higher interest rate because s/he is a credit risk and there is less security, you should be demanding an even higher interest rate on the loan because you don’t have the advantages the banks do (ability to take $1 and lend out $20, loan tax write offs, etc).
If you want to do it, do it as a personal loan and take other collaterial (like a car) rather than the house. Keep them seperate.
Rgds.
Lucifer_auThanks for those thoughts guys, since then had a couple more requests to add car loans to the deal.
I told them flat out no and used your examples…
I LOVE YOUS ALL !!SF
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