Know your spread on every wrap.
On a wrap, your buyer pays you, and you keep paying the underlying loan. The difference is your profit. Tracking it by hand across several notes gets old fast. AdwaBook keeps every wrap clean.
Track my wraps free →What a wrap looks like in your books
Money in
Your buyer's monthly payment, plus any down payment and late fees.
Money out
The underlying loan payment, plus taxes, insurance and servicing if you pay them.
Your spread
What's left each month, and how the two loan balances move over time. That's the number that matters.
How AdwaBook handles wraps
- Mark the property as "Wrap: sold on terms." AdwaBook keeps it apart from your rentals.
- Log both notes. The wrap note you collect and the underlying loan you pay, with balances, rates and payments.
- Payments sort themselves. The buyer's payment comes in as note income and the underlying payment goes out against the same property.
- Note income stays off Schedule E. A property sold on terms usually isn't reported like a rental, so AdwaBook flags it for your CPA instead of mixing it into your Schedule E. Your CPA decides the exact reporting.
- Export everything. Every payment in and out, ready for your CPA in one click.
Run your numbers first
Use the free wrap spread calculator to see your monthly spread, total profit and equity at the balloon.
Related
Holding the property instead of selling? See subject-to bookkeeping.
AdwaBook organizes your books. It isn't tax or legal advice. Talk with your CPA about how to report your notes.
We handle your books. You handle your business.
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