Explaining Subject To IN PERSON With A Seller

Pace Morby goes on a seller call at a potential investment property to explain subject to and build rapport with the seller. The value of the home is less than what the seller owes, meaning if they sold the house they’d have to cut a check in order to walk away. As an investor the most important part of the deal is securing the mortgage rate already in place, which is Pace’s aim in taking on a property like this.
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🚧🚧🚧 DISCLAIMER 🚧🚧🚧
❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a KZbin video for entertainment purposes ONLY ❎

[@jdulrick]

I love how empathetic and compassionate you are with her. And I am so sorry to hear about your brother.

[@you7uber5]

*her

[@marybright1]

So valuable to hear how you talk to a seller, empathize with them, help give them ideas for solutions. You gave him hope and finalized a deal. Such a win/win. Just earlier this year, I was in a situation with a house, not desperate but wanting to make a move and not in the best position to sell. I had an acquaintance reach out to me and helped me find a solutions that worked out for all of us. It opened my eyes to what can be accomplished.

[@lyndastarwriter]

WOW - Pace, I've been watching you sincer 2020. NEVER knew about your life's challenges in 2008 w/ regard tp you mom, your divorce, losing a home and your brother. Thanks for sharing and I hope peace and love abounds, today.

[@PaceMorby]

Thank you 🙏

[@Qwerty12771]

Yes! So I asked in the comments on another video why wouldn’t an owner just turn the property into a rental themselves instead of seller financing to you. One of the most obvious reasons was brought up in this video. “Can the owner cover the mortgage if the tenant doesn’t pay rent?” That’s enough reason on its own to get out of the property. I forgot to consider the stress and sweat equity involved in being a landlord, probably the last thing an owner wants to take on when they are potentially upside down. I can’t wait to get my first property! I live in CA and the FHA loans for 4 units seems to be the way I want to go. Even though the market is expensive here, I still want to buy here because I want to gain experience and I’m more comfortable with owning in the state I currently live in just because of the piece of mind of being in close proximity to my investment. Thank you for all your information.

[@PaceMorby]

Yes! It all comes down to pain.

[@webuyhousesdenvercolorado]

This just proved to me even more that anyone can do this with Subject-To. I've been a fix and flipper, wholesaler the past 10 years and am so regretting I never delved into sub-to this whole time. Hell, it would've been the only thing I'd do if I knew it earlier. All good. Start today.

[@VeronicaGrimes_tc]

Hey!@webuyhousesdenvercolorado Are you looking to close Substo transactions? If so,I;m a TC. I can help you and when you need it.

[@Philibuster2]

Finally the videos weve been waiting for... the talks with the sellers

[@brandongrennan7602]

Not amazing Grace, Amazing Pace. Let's go buddy wow what a great display of humanity, caring, and business talk. You rock Pace!

[@amyvanslambrook]

@pace Morby you are incredible! Lead with generosity and a genuine desire to help…and the blessings follow. You just changed this man’s life

[@SherryXShi]

Pace is the best negotiator and storyteller, because he knows how to communicate effectively

[@KittyontheMove]

This was very valuable. Thank you! It’s nice to see the compassionate side of investing.

[@oldskoolfunk71]

Maaaan this is Gold Thanks Pace for all you do for us.

[@robertmcrae3422]

This was awesome 🎉 just what I needed to hear,!! Performance deed.but you felt his needs frist. This is exactly why the community is blessed to have such a mentor!! Wow thank you so much!! Real Talk

[@dantenappi5655]

This is a great example of exactly how it can happen. Good stuff!!

[@franklinhopkinsjr1065]

Love the respect and concern shown and this was a great walk through…

[@timesmasquerade2012]

Beautiful Pace - win win with a heart.

[@devantegilliam9277]

Wow Pace, you’re so awesome for what you’re doing man! Thank you for sharing your journey as well and being so vulnerable, it’s truly inspiring 🙏🏼💯. You’re also one of those people who’s hilarious without really trying , which is always appreciated. 😂🙌🏼

[@fawkmee]

I wish I knew about subto earlier this year when I had to sell my property at a loss because I had to pay agents.. 😭

[@RJ4Loans]

Great episode Pace. I appreciate your empathy, compassion, and transparency. Thanks for being willing to share your own story.

[@kellygood1165]

Would love to see part 2 follow up video.

[@cavin3368]

Thanks Pace for sharing ✌️

[@michaelpaul5801]

This is gold Pace!!

[@PaceMorby]

Glad you enjoyed bro!

[@saifshareef7194]

How do you respond to a seller's fear that they will recieve the house again if payments are missed? If the overall objective of the seller is NOT to own the house and the mortgage, why would reversing ownership back to them be a benefit when the payments are missed,

[@hspinnovators5516]

Because they could resell at full cost with more equity. The buyer lost everything they put into it

[@ryana3579]

You could also write in the contract that it is your ( they buyers ) responsibilty to sell the home and continue making the payments until you do so.

[@TheLastSatoshi]

Pace you are amazing!

[@DanKohan]

I've been through tough times too, and it's really inspiring to see how you can make things better with the right advice and choices. Thanks for sharing this useful info!

[@christianhernannnnn]

Alright rich wholesaler

[@heath.medley]

Triple Digit Flip ... "its ok." 🤣🤣🤣

[@KyserMont]

Hey Pace! I just started learning more deeply about subject-to. Since I’m in the military and have used my VA loan multiple times, I know how the VA entitlement works, I know that if I were to take another veterans home subject to, their entitlement will be locked up in the house and I honestly don’t feel comfortable doing that if I can’t get them their entitlement back…cause what if they want to buy another home that exceeds their remaining entitlement ? I honestly don’t know how to feel about that. Curious on your perspective.

[@casasdenick]

This is an interesting comment and, as a fellow veteran, I completely understand where you’re coming from. In my opinion, if subject to is a good option for them and it will honestly help their situation then it helps their situation and that’s that. In a perfect world we could go around buying up the distressed VA properties so the owners could keep their entitlement and get into something they could afford. Without the deep pockets and/or financing options to do that though, Subject To is the best option in some of these scenarios. I’m also a lender and regularly work with investors across the country. If there’s ever anything I can help you with let me know 🤝🏽 #lender #CardoneVeteransGroup

[@paulbittengle8540]

All I can say Pace you and your organization are awesome.

[@marckuhnmak]

Great video Pace. Love videos like this!

[@cesarlopes9224]

Very awesome video, I like that he empathizes with this seller, trying to understand where she comes from. 👋

[@PaceMorby]

Thanks for watching!

[@Jimmyzheng12321]

Great video question is even you mentioned average rent is 1800 in the area and mortgage is 2100ish, even Airbnb or midterm rentals doesn’t make much taking over this?

[@MovingToHoustonTX]

Where can I find part 2 of this? I looked in all the videos, and I didn't see anything that looked like it could be it! :) Thank you!

[@delphinathomas8262]

I feel bad for the seller.. the breakup. 😮😢.thank u ou this is ON HANDS TEACHING.. GREAT JOB!!!THANK YOU FIR ALL OF US STUDENTS..😊😊

[@shawnashaw1282]

I half expected you to start writing on the wall when you were explaining how it works to him lol

[@you7uber5]

*her

[@rociopineda4659]

learning to help others from the best!!

[@Love-dy4nw]

9:25 Nice mirroring of body language

[@TravelinOp]

Leave the hot water heater lmfao 😂

[@evonnecram5538]

Great expanations, education and empathy. I definately know what it is like to loose your home fas a victim of identity theft. I would have handed my house over to someone under the right circumstances.

[@eddiel.milesjr.1625]

Is there a Part 2 to this??! I desperately wanna know how this is a profitable deal.

[@teisip35]

Honesty! Thank you, Pace!🙏. I appreciate your Christlike attribute❤️

[@lizethgonzalez9131]

You can hear the pain in their voice 😮 that’s what I want to do !! Help people in need!! 🙏🏼

[@cesarcabrera4770]

This a great information

[@HeatherSky1]

Always love your content! If I get 20k from a private lender and use it to acquire and repair a sub-to property, what's the best way to get them their 20k back in 6 months based on current interest rates. Seems like a refinance wouldn't work, what about HELOC? Any other suggestions?

[@wecanynot]

Liked the information and subscribed. Tried your settlement statement link with my info and it does not work. I would like the settlement statement. Please advise

[@PaceMorby]

Hey bro! Try this link instead: resources.pacejmorby.com/

[@zerotodeal]

Thanks for the Bonus and as always YOU'RE A FLIPPIN GENIUS

[@legacyXplore]

On the VA rental thing how could he not rent it out but you could after the sub 2? How would the sub 2 make it ok for the property to be a rental? Sincere question. This was a good video. I know it’s not for everyone but it’s shocking that this isn’t a standard conversation for every single seller and realtor after a failed listing. I can understand to some degree not up front. But I don’t understand how that wouldn’t be incompetence.

[@JosephHobbs-ql4sy]

My exact question too

[@Reddit.Cruise]

Where is the part 2? LIke what is the title. If anyone could help? Thank you.

[@elijaholiverii7809]

Word play is crazy. It's all how he says it!!!

[@bobhopkins433]

Is there, well there has to be some type of contract with Pace and seller, correct?

[@5250ITW]

Does the seller continue to have the mortgage debt in their name? And what happens when they want to buy another home? Doesn’t it look like they have that debt? Thank you for sharing this.

[@ripvanwinkle3432]

If they cant afford the house and are upside down how will they get another anytime soon. Ita actually beneficial because they will have to have the money for a second mortgage.

[@5250ITW]

@@ripvanwinkle3432 true but let’s say it’s been a year or two, then what’s the plan?

[@Asgro]

Yeah, I’m 8 mins in and wondering if this will be brought up?

[@tristanbeavers4992]

pace you look jacked brother

[@MgtowRubicon]

How do you handle insurance when taking title subject to existing debt?

[@Profashionhair]

My question is, what about the bank? Do you need to notify the bank on taking the payments? If there is any change in the deed, the bank/mortgage company should be notified, so how do you go by it? What is the procedure?

[@PaceMorby]

You don't need to notify the bank. Check out this playlist: paceapproves.com/ytsubto-ytc

[@Profashionhair]

@@PaceMorby 😘thanks

[@wealthwithfreonphelps3976]

First! Freon Phelps was here!! Greetings winners!! Only like this comment if you're a winner!! 👀

[@imlistening2932]

Thank you!

[@JuanPimentell]

Thats crazy i service the neighborhood you live at!

[@Simlescloset]

lol I looked at every line item on my first house and sent the mortgage broker back 13 times because the information was incorrect. I think it took us 8 1/2 hours to sign our loan docs because I knew we were getting screwed and I made them correct everything. I had a huge mortgage company tell my mom when she bought her house that if I ever wanted a job in the future if he had an opening it was mine. Im a beast with loan documents. but this sounds to good to be true. I need a home where I do need to buy it with credit, cash or credentials, but in my area they would just laugh at me. And what if the person decides a few months later they want their house back?

[@cameroncook975]

So.. question... Where does this leave the seller? Can they not obtain another mortgage until the contract expires and someone pays off the original standing mortgage?

[@gloriakummer5357]

The one thing I’m having a hard time with is why is there not someone out there to help these sellers. In this situation where the house is not worth what he owes, it make sense, but what about disaster situations. I would feel horrible

[@zellybeatzproductionz5708]

what percentages are typical for SubTo closing costs?

[@therealmikejones4619]

Can I start looking for deals even though I have no assets and can’t really afford to buy a personal home?

[@vkdirector3087]

was great to hear your story mate and sorry for your loss! i get that this was an opportunity to show one of your strategies to students butttt here on the other site of the world in Australia, if you were looking to help her out her, she could just move out, rent the property out and go rent in the other suburb you spoke about !! this would allow her to keep the property and move forward ! is this not an option in America?? or do u just not bring this strategy up as it doesn't work with your strategy? great content love what your doing and how far u have come

[@500shit1]

She cnt rent out bc the VA loan

[@nyjiahingram8760]

She was under a loan that required the debtor to stay in the home for 12months before renting. She was 6months in the home at the time of this video

[@JohnHenryRei]

I install towers, rrus, antennas I’m always on the road aswell, 😢

[@adriank2959]

Is this preforeclosure lead?

[@cookedonafeeling]

Has part two of this been released yet?

[@PaceMorby]

There's no part two to this one, but I have a ton of Subject To videos on my playlist "Subject To"

[@cookedonafeeling]

@PaceMorby Thanks for your reply! I just found your stuff and it's incredible. Been binging all day. Really appreciate you, brother

[@hotrodlincoln7186]

Hi, I was wondering wht service provider you use for your sub too deals? And would the service provider work on seller financing deals. Like how you did with your f150. But instead of them paying me having a service provider taking the payment out of the buyers accnt and depositing into my accnt?

[@ConradSpencerSimmonds]

from the camera angle standing there talking to him at the water heater, you seem TALL. 😀

[@OctaviaBoesWifey]

I jsut talked to a title company and she said you have to have the lender's ok this deal, how are you doing it without that? I know a lot people are afraid the loan will get called, but if the lender approves it, then it wont.

[@Alexkasai]

The contract they sign takes care of all that, there’s reason why pace spends 10s of thousands every few months to have attorney draft the contract to adjust to ever changing laws

[@sunnymoney1983]

Hey Pace, great stuff! I learned a lot and I’m a Realtor aspiring to be an investor, although it’s really hard in The BayArea where the mortgage even with low rates is always going to be higher than the market rents. Any advice?

[@brockgreavesrealestate]

Okay you took over the mortgage which is probably low from covid. How do you then make money on a rental with the refinance interest rate probably being a lot higher? Is the goal just to acquire and hold? Maybe taking a loss on the mortgage payment because the rental income doesn’t match?

[@PaceMorby]

Buy and hold, rent out. Not refinancing.

[@HowardsWrld]

Great Video.

[@mcanultymichelle]

But what if that young man wanted to take out a loan in a few yrs? Will his old loan be held against him???🤷‍♀️

[@PaceMorby]

There are ways to overcome debt to income ratio when applying for a new loan, I have a video about it kzbin.info/www/bejne/maqlg2aendp_pacsi=teTzoH2Rcz-W9WY2

[@MoreActionPodcast]

I would love to work with you , I memorized this conversation 👏🏾 I could do this all day long!! Really a great way to help people and have another stream of income. Just painted a rental for the SAME reason you brought up 👏🏾lol . money man ..

[@KENDRICKAMA]

This is how you serve

[@JonnyCash-qw2ps]

Hey I learned about subject to over 10 years ago my biggest problem to begin is I don't know how to begin or I know I will be very good at it because I am a people person do you mind explaining how do I start the process?

[@PaceMorby]

I recommend squadding up in the free group to get help from my trained students, they'll love helping you get your first deal! paceapproves.com/freefb-ytc

[@andyscorner101]

She said....my payment is $2,138 per month... ( assuming it's PITI) You said...the rentals in this area are around $1,800... which shows you now upside down $318 per month if you bought this SubTo. This is a VA loan, so please explain how you can make money on this? Wait for equity to increase? Appreciation to increase? Yes, those are 2 options, but every month you are, (assuming you have to rent it at $1,800 p/m), now losing #318 p/m. So how is this a money maker?

[@erikgladish]

How do you guarantee she is out in 2 months?

[@barbthompson1628]

so there's closing cost even when you do sub2? what other fees are there?

[@VeronicaGrimes_tc]

@barbthompson1628 Hello! He has discussion this in different videos. You can always JV with a subto student who will have the correct documents. I'm a transaction coordinator . Let me know how can I help you in the future.

[@primusphilum]

1/2 the freebie links are dead

[@VuthChandyna]

You are so amazing..,

[@albinothug]

Beautiful

[@BatistaInvests]

Shout out to Joe Crump who first introduced me to Subject to

[@abdrabohal_wahashi7563]

How I can get consultation with u by zoom MR Pace plz … I’m from medal east

[@bobhopkins433]

What I've been exposed to in a very short amount of time is amazing, although in (when see the link below) haven't seen one ?

[@PaceMorby]

Hi Bob, what are you looking for maybe I can help.

[@TheDunndiesel]

poor kid. awesome you could help him out.

[@JoseReyes-kings]

Really need help few days left for my house to foreclose

[@Faithandhumanity9875]

@pacemorby

[@tonyt3067]

Interesting how Pace answered the question of can the seller rent out house with a VA loan. If she cannot, how can Pace rent it out and what liability will she have if the VA finds out?

[@truthseek1818]

pace what is your answer on this?

[@jacobwicka5496]

Pace owns the deed. She has the mortgage in her name.

[@tonyt3067]

yes exactly, a mortgage that doesn't allow for renters in the first year, which they are in. @@jacobwicka5496

[@camparker1990]

You can rent it out with a VA loan after it’s been the Veterans primary residence for 1yr.

[@tonyt3067]

right, so he basically has to wait it out, at least on paper@@camparker1990

[@weareunstoppable935]

Could I be a gator lender from Europe?

[@Archlight89]

So you giving her 350k plus taking the mortgage off of her? I am confused how do they make money by giving you the mortgage?

[@PaceMorby]

Because she would have to pay out of pocket to sell the house.

[@Archlight89]

@@PaceMorby but are you giving her 350 as monthly agreement? Or is it a one shot deal? Also how do you corn up with ice much to give them monthly for the property?

[@Edvardlarose]

I’m a subto student let’s squad up

[@mattHamid-p2t]

Are you in DFW?

[@jennyrosario1268]

Basically you’re just removing them from a really bad situation that they can’t afford the home anymore and to not jeopardize their credit history that’s where you come in

One question. What happens with the property taxes when you buy a property subject to? They go high bc the homestead execption is lost after you buy it even if you buy it for the same amount the seller bbought it for 1 year before? Thanks in advance

[@malex1526]

You should go do something like this... but not at one of our places... here are some other options.... 🤥

[@leviwaldner536]

how the heck will you cashflow this

[@PaceMorby]

I'm at the point where I can buy and hold and let other assets cover negative cashflow if necessary, but we will probably still do this as a midterm rental.

[@leviwaldner536]

@@PaceMorby thanks for replying, looking forward to next video

[@LXRD-SUPREME-]

Having money makes people overly confident in them selves 😢

[@Shanita162]

Have you ever encountered a problem where the seller doesn’t move out as agreed? If so, what does someone do in a situation like that?

[@199tigertail]

Semi gloss or eggshell for those who been there lol

[@ymh-productions998]

Am I missing something here?? If your plan here is to just do a regular rental and that'll cover the mortgage payments, why doesn't the seller just keep the house and rent it out herself?? Makes no sense.

[@hollywoodclipp]

Because they are in debt n don’t have the money to..

[@ymh-productions998]

@@hollywoodclipp huh? They have a mortgage. Just keep making payments by using the rental income

[@MikE-qh2ss]

did not explain the downside at all to the seller who clearly has limited experience but otherwise was good

[@199tigertail]

Washable paint!

[@tubez]

How does 125$ a week = 750$ a month😂😂