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Thanks everyone for your input. Whatever reason banks give for turning down loans for wraps my gut feel is that they really don't want to be associated with anything which appears dodgy, even if it is workable. They have a public profile they don't want tarnished by what they perceive as a...

Thanks everyone for helping me out. I thought there might be a problem because normally banks loan on purchase price or valuation, whichever is the lower. In this case, the purchase price of $60,000 is lower than the valuation of $80K. If the bank loaned on purchase price the loan would be...

Thanks Rolf, How does the wrap buyer get a loan on a property he doesn't own until the wrapper is cashed out? The wrapper can't get cashed out until the buyer has a loan? You see the buyer doesn't get title to the property until the last payment is made. The last payment can't be made until...

Thanks Simon, I wonder how many wrappers are operating on the basis that to be cashed out requires the property to be sold to a third party? In otherwords, the wrap buyer, doesn't get to keep their home if they want to end the wrap finance. The property gets sold to cash the wrapper out and...

Hi Folks, Have done a search and couldn't find the answer so hoping somebody can help. Property details: Original purchase price by investor is $50K. The first mortgage is $40K. The marked-up price to the end buyer is $60K. 5 years later the market value is $80K. How does the end...