top of page

A House Wrap In A Nutshell

Updated: Feb 29

Are you confused about what a positive cashflow property wrap is? Let's keep it simple.

You as the Wrapper (seller) have purchased a property with the intention of making it a positive cashflow investment for yourself. You sell it to another person, the Wrappee with an agreed instalment plan over an agreed timeframe.

And that's it in the quickest, simplest terms. You have just 'wrapped' a house. In fact, this is the most common type of Vendor Finance purchase in Australia. Wrappers buy the house in their name and sell it to Wrappees at a higher price with an extended settlement. Wrappees can pay in instalments over several years until they are able to qualify for a loan with a bank and refinance.

A house wrap in a nutshell | Paul Zalitis | The Aussie Wrapper

The Wrapper becomes the Bank

In other words, the Wrapper becomes the bank (or Vendor Financier, if you prefer a fancier term), because the Wrapper is acting as a kind of financial institution to the Wrappee.

The majority of the Wrapper's profit is earned on the interest gained from this. That's the positive cash flow generated for the Wrapper.

Honest families needing a home

What many may not realise is that there are many people in Australia who, for one reason or another, are not in a favourable position with banks to get the conventional loans. They are stuck and are not able to get a house, and stay trapped in a rental situation. Many of these are honest families, and the reasons why they have been rejected by banks could be something as innocuous as being self-employed or retired. They do have the necessary funds to purchase a property.

Get a good lawyer

There are certain regulations that you must follow of course, and that is why you must find a good lawyer with experience in conveyancing and ideally Vendor Finance, to ensure that the deal remains within the law (you must follow the Sale of Land Act or equivalent in each state for instance) and the risks of the deal are minimised on both sides.

You also may want to consider how you receive your instalment repayments. For this, you may want to establish a direct debit facility with your client's bank as it is far easier to track and manage all round. This isn't absolutely necessary, but is often the best solution all round.

Ready to dive deeper into the Property Wrapping Process?

Read my blog by clicking the button below.

Learn more about Property Vendor Finance

0:08 What is Vendor Finance?

1:28 Why do sellers find Vendor Finance attractive?

2:24 How to qualify for vendor finance?

3:07 Is Vendor Finance Legal?

To Your Success Paul Zalitis The Aussie Wrapper


About Paul Zalitis, the Aussie Wrapper

What I’ve been doing is helping mates create positive cash flow and helping them achieve their dreams of owning property and building their finances through Property Vendor Financing.

Subscribe to our YouTube channel to learn more about Property Vendor Financing -


bottom of page