Wrap-Around Mortgages
Get monthly income that wraps around your existing loan.
How Wrap-Around Mortgages Works
A wrap-around mortgage (or "wrap") layers a new, larger loan on top of your existing mortgage. Quelark makes one combined payment to you each month; you continue paying your existing loan; and the spread between the two is your monthly income.
Is This Right For You?
- Sellers who still owe a mortgage but want ongoing income rather than a lump sum
- Owners whose property would struggle to sell in a high-interest-rate market
- Sellers who want to preserve a favorable existing loan while also earning additional yield
The Process
- Quelark purchases the property and signs a new "wrap" note to you for a larger amount than your existing mortgage.
- You keep your existing mortgage in place and continue paying it as normal.
- Quelark pays you on the wrap note each month — an amount larger than your underlying mortgage payment.
- The difference ("spread") is pure monthly income to you for the life of the wrap.
Why Sellers Choose This Strategy
Monthly Income Spread
Commonly $300-$800/mo of positive spread, depending on rate differential.
Higher Sale Price
Like seller-finance, wraps typically sell above cash-offer prices due to the financing premium.
Keep Your Good Loan
You maintain the benefits of your existing loan while generating additional yield.
Long-Term Cashflow
Wraps commonly run 15-30 years, creating long-duration, real-estate-secured income.
Common Questions
Is this the same as Subject-To?
Similar, but with a new, layered note on top. Wraps are used when the seller wants monthly income above just the underlying PITI; Subject-To is used when the seller simply wants out.
What if the underlying loan is called due?
We keep the underlying loan current and work with you on a contingency plan — typically refinancing or paying off the wrap in full if the lender ever accelerated the loan.
Who collects the payments?
We strongly recommend a licensed third-party servicer who collects from Quelark, pays your underlying mortgage first, and forwards the spread to you automatically.
Important Note
This page is educational and describes how Quelark typically structures Wrap-Around Mortgages transactions. Actual terms depend on your property and situation. This is not legal, financial, or tax advice — always consult a licensed attorney and CPA before signing any real estate agreement.
Ready to Explore Your Options?
We'll make you a fair, no-obligation offer within 48 hours. Tell us about your property and let's find the best solution together.