How to Buy Real Estate with Seller Finance with Pace Morby & Clint Coons

[@ClintCoons]

If you would like a FREE 45-minute consultation, you can request one here: 👉 aba.link/6v1

[@Cali_Girl1]

45:35 Yes! Please have a conversation about 'Imputed Interest'.

[@ClintCoons]

🎉 We ALL made it to 100K! 🎉 Thanks everyone! I’m thankful to all of you for helping me grow this page and community. My platform would be nothing without all of you, so thank you for sticking around and supporting our journey of learning in real estate and asset protection. To the 🚀 and 1M!!! All the best, Clint

[@pazzlasolem2302]

Thank you so so much!!! 💕💕💕

[@bigdaddyjoshua]

Opting out of installment sale treatment is pure gold.

[@kimberlymcclintock-walla3528]

The timing of this video couldn't be more perfect! Part 2 would be great! Seriously generous "no fluff" content -keep it coming! LOVE you guys at Anderson and Infinity Investing.

[@ClintCoons]

You got it!

[@patrickmoore4712]

Yeah excited for part 2!

[@tinaherron6523]

Absolutely! These two together are a dynamic group, can’t wait for more!!

[@UltimateBargains]

Price doesn't concern me as much as sensible payment terms. "Mr. Seller, if you can be flexible on payment terms, then I can offer full value." "Mr. Seller, which is more important to you: How MUCH money you get, or WHEN you get your money?" Creative financing solves huge problems for both buyer and seller.

[@abbyhosey]

"Except it takes forever and it's horrible". I love this guy 🤣 I have always hated the idea of being tied to a bank. Can't wait to find my first seller financing deal.

[@robertruschak7083]

👍🏿👍🏿

[@Jester2b04]

Please do a Lesson 2 and More .... wow so much Value in this video, it deserves a re-watch. Thanks so much gentlemen!!

[@ClintCoons]

We did.

[@Mar1293]

I would love a part 2. I’m just starting out and this is great information for the future.

[@Thefewfunds]

I definitely need a part 2, 3, 4, 5, 6, 7...you get the point. Watching this over a couple times before taking notes.

[@ETrevizu]

I have been watching Pace’s stuff. I started the mastermind, I want to learn all I can, don’t only want to learn I need to act so this is one more I’m watching to learn. Thank u both for sharing.

[@Thefewfunds]

By the way just heard you bring up Charlotte NC...that my home town...when I was in high school I watched my then mentor buy properties all over Charlotte, years later I'm getting into the game but starting here. Thank you guys

[@kathleenelwood4863]

I know I’m a little late to the party here but here goes nothing. My husband is 62 and I’m 58 and we don’t have a lot to count on for retirement, but glass half full! I am considering making my primary house an Airbnb and would like to structure it as an LLC so I can take advantage of the tax deductions you spoke of to allow me to renovate my childhood home so I can take my 81 year old mother back home to at least enjoy the summers. I’m not even going to pretend I have any clue on how to accomplish this but by listening to you, Toby and Pace I now know it can be done I just need someone to lead the way so to speak. My husband and myself will have to continue to work our full time jobs for a while longer but I know with your help it won’t be until I’m 80. I kept trying to figure it out myself but honestly it’s been exhausting. I saw Effie on Sunday Service with Pace and she actually inspired me to reach out since I know I can’t figure it out on my own but I’m 100% certain with some direction we can get there! Sometimes you just gotta swallow your pride and ask for help. Your assistance would be greatly appreciated.

[@robertthehair658]

Where do you find a good AB&B manager?

[@SunShine-jq7tl]

Thank you both for your time and information.

[@ClintCoons]

You bet!

[@PittToNYC]

For seller financing deals with a balloon payment after 15 or 20 years, do you still use a 30-year amortization schedule? And is it a traditional 30-year amortization schedule where the interest will be mostly front loaded at the beginning?

[@ClintCoons]

You can if you want to keep the payments low for the buyer. Its optional but it is the most common strategy.

[@schoke03]

Isn't the Cash On Cash Return is actually 432% 🤔? (I believe the numbers were switched that were divided)

[@oneparadiseinternational4138]

Fascinating. Part 2, please.

[@darianrichardson9709]

This dude is a legend, great authentic value here!!!

[@albinothug]

Is there a link to the follow up video you were talking about @ 35:00 ?

[@yolimonty4898]

Blessings Yawl. Amazing. Gracas Señor Clint, Señor Pace.

[@StreamingF1ydave]

How are you pulling $20k from that house? $1k/night rate?

[@estherlugo3447]

10k lol not 20k

[@bryanbell9103]

​@@estherlugo3447 he said it grosses 20k a month, 10k after all the expenses are paid. So again how is he renting a property for $1,000 a night that he purchased for $500,000?

[@royburke7817]

This is eye-opening info. I just subscribed to the channel. I am sold on seller financing.

[@ClintCoons]

Roy Burke Thanks for watching.

[@paullightfoot9028]

Please do Part II for advice on how to put all of this together and the forms I needed to use.

[@ClintCoons]

We did. Search my channel for Pace

[@alliesteamc3546]

Thanks so much for sharing your experience! May you be blessed!

[@alliesteamc3546]

Yes please share step by step! Many thanks!

[@antoniochia5801]

Do a part two on creative financing and what paperwork to use

[@vinny1010]

Where can we get the recording?

[@glennthornton9357]

This video was so good! When he talked about giving the seller the price they wanted… light bulbs starting firing in my head. 😅💡It’s always good to lead with value. I heard another guy said something similar when he was hiring employees for his 100 million dollar company. He asked them what they wanted their salary to be during the interview and gave them exactly what they wanted lol. But he knew these employees were experts in their positions. The boss wanted to get them excited for their job at the beginning… knowing that he could fire them if they was not as good as they said they were. :)

[@ClintCoons]

When making offers remember - My price your terms or your terms my price.

[@glennthornton9357]

@@ClintCoons Definitely 👌

[@jjohnston73]

@14:12 “HUD up or shut up” - what are HUDs? Sounds like the deal details but what does it stand for?

[@ClintCoons]

HUD-1 is a document you receive at closing detailing all of the credits and debits to the buyer and seller Basically shows how much you paid or sold a property for. Many people will tout their deals ie.., I sold 50 homes this month. A way to fact check them is ask to see the HUD-1 for some of them. Here is a link www.consumerfinance.gov/ask-cfpb/what-is-a-hud-1-settlement-statement-en-178/

[@LeolyanGRAY]

Thanks Clint and pace. This is Lee Gray.

[@tyresswhitejr]

Hi Clint. Love you channel, and I've learned so much from watching your videos. I use LLCs and trusts to protect my companies and real estate. I'm not familiar with Pace Morby, but from my experience with AirBnb's, I'm having a hard time understanding how this guy is pulling in $20k a month from a property in Rowlett, TX where the average rent for a 5+ bedroom mansion is $400 or so per night. Then when I factor in a 20%-40% vacancy rate for the year, the numbers aren't adding up for me. Would love more info on this, and would be willing to speak privately to either of you. I enjoy your content, but also want to ensure that accurate information is being spread to people trying to get into the field that we love so much. Thanks

[@ClintCoons]

Tyress I know Pace to be totally transparent with his deals and willing to show his HUDs to back up what he is teaching. Have you looked at his KZbin channel. He routinely has YT live events where you can ask questions about his deals.

[@tyresswhitejr]

@@ClintCoons Thanks for the reply. I reached out on his channel, and will attend one of his YT live events. Always willing to learn something new. As time changes, so does the real estate game. Thanks for the response.

[@chadgriffith5819]

To humid in Houston lol Yea I live here! Brutal......

[@tinaherron6523]

Great video, I have subscribed to both of your channels. Great material, I will be using this for my first seller finance and sub2 deals. I’m excited to try both!! 😊

[@Logan-limitless]

Hi Clint and Pace, this was an awesome video, thanks for sharing. Pace, I am curious to the drafting of the note, is it drafted by you after you and the seller agree upon the terms or should it be drafted by an attorney? Please bear with me I am fairly new to the terms you guys use.

[@randybates789]

Best RE video on KZbin!

[@ClintCoons]

Wow, thanks!

[@royburke7817]

I am listening to your show on father's day, a Sunday, and I am at work. I don't want to repeat this next year. So how do I break out of this trap?

[@deepikaatkinson4111]

Great knowledge / Education.. We need more of this.. Thanks guys..

[@ClintCoons]

Deepika Atkinson Thanks for watching.

[@markfree6832]

Please Due a part two on AirBB set up..this content is so valuable and you are providing it without a huge cost to the little guy!

[@ClintCoons]

We did. Check the channel for the second video

[@yolimonty4898]

Absolutely love this.

[@ClintCoons]

Thanks

[@AngelGarcia-er5ct]

Where and how do I get all the necessary paperwork so I can present to the seller for the seller financing deals? Or is that something I have to go to a title company for?

[@ClintCoons]

Check out Pace's channel for this information.

[@waynegebhardt2801]

Very interesting, good stuff Love to understand different ways to explaining the opt out to a seller finance for capital gains the first year..

[@ClintCoons]

Glad you enjoyed it!

[@atlakatl3555]

Real educational sense you guys, thank you for this lesson. Please please do lesson two. Thank you so much

[@samuelespindola6920]

Stupid question, what's HUDs (mentioned in 14:55)?

[@untamedwildhorse]

www.hud.gov/sites/documents/1.PDF

[@alliesteamc3546]

Congratulations to Mr.Pace Morby! And thanks for sharing and teaching!

[@robbyv6197]

I love your guys content but I’ve never seen pace address subject to and dealing with the mortgage. Most if not all mortgages contain a due on sale clause, and with current interests rates being what they are I don’t foresee them being in favor of not exercising the due on sale clause. What’s the method for working around this or dialogue used for dealing with the bank.

[@ClintCoons]

Typically you do not inform the bank because if you do it will trigger the clause.

[@sarajean9637]

I used a seller finance deal to get a property and held it for one year. The deed isn’t in my name since I’m financing it. I just sold it for double. Did a double close and made money using the seller financing for one year. Am I correct in assuming even though the deed wasn’t in my name until the day of the closing for a split second before going to the new buyer that I am still subject to only long term gains not short term since I “bought” signed the contract over one year ago? Or would it be short term gains at ordinary income rates?

[@ClintCoons]

sounds like you did a lease option not a seller finance. If it was seller finance then the deal was a land contract or the title would have been in your name. If it was L/O your gain is short term.

[@Jester2b04]

What is the HUDs they mentioned?

[@ClintCoons]

It is the settlement statement you receive at closing.

[@untamedwildhorse]

www.hud.gov/sites/documents/1.PDF

[@globalgogetter4469]

Definitely would like to see a part 2!

[@MauriceWakefield]

Just came across this video. This is such value. thank you.

[@ClintCoons]

Glad it was helpful!

[@luispadovani3788]

Yes pls do part 2!! Need to learn all this, I want to do this, always have!

[@johncatanzaro9627]

Hey Guys, This Was The Bomb Video That I Needed.. Thx Pace And Clint.. Looking Fwd To The Next Videos... : ))

[@judyrose3054]

That's the way I learn too Pace. Part 2, 3 or more..

[@YvonneLeduc]

I am interested in part 2. I am currently managing my first Air bnb and ready to start my second one

[@iamthecreativemind]

Hey Clint, I’m based in Australia. I was wondering if you could forward me onto someone that teaches this same wholesaling strategy in Australia? I love your content by the way. Thank you for sharing 😊

[@ClintCoons]

sorry but no idea.

[@Cali_Girl1]

Hi. I'm deliberating between PURCHASING a property to use as an Airbnb, or approaching the Seller, and offering a RENTAL ARBITRAGE Agreement. What are the Pro's and Con's of each? Which would provide me the best TAX BENEFITS?

[@ClintCoons]

STR arbitrage can be tax free if you use a SDIRA Roth. I have a video coming out in a week or two regarding this type of structure. With the Arbitrage it's less of an investment and you do not have downside property risk; however, you do not own an asset.

[@Cali_Girl1]

@@ClintCoons Look forward to seeing it.

[@positivityandempowerment]

How are taxes and insurance paid separately from the mortgage created with the seller? Who gets that money?

[@Cali_Girl1]

This is excellent! Thank you for the information! 👍

[@ClintCoons]

Glad it was helpful!

[@kevinr3533]

I live in North Carolina very close to Winston-Salem. How do I get in touch with you guys so that I can learn this and start doing deals with Clint and you as well Pace

[@hesterhousingrealestatejou7457]

Who do you use to do the private mortgage notes for seller finance?

[@ClintCoons]

An attorney or licensed mortgage originator can assist.

[@GoFlyRoamTravel]

hey where is the link to the seller conversation that pace was referencing ?

[@SemiraStone]

Wow, in 2024, thank you for sharing ❤

[@Cali_Girl1]

I'm considering purchasing a property near a ski resort, and turning it into an airbnb. My question concerns TAXES, and if it would be better tax-wise to close the deal before the end of the year (2022), or wait until January 1st, 2023? Or, does it matter?

[@ClintCoons]

Close before 2022 so you can lock in 100% bonus depreciation. If you qualify for STR material participation next year you can harvest a great tax deduction.

[@rightright6582]

A question on a 500k house, what if the house loses value 50%? That means you are upside down, what would you do? What penalty is in place to protect the seller on such a low 10k deposit?, de-javu 2009-2012

[@allach1772]

Return the house back that’s the protection

[@Lrcomedy101]

🙏🏽❤️ for sharing and excited to learn more a part 2,3,more

[@ClintCoons]

You are so welcome

[@chrisduhon7922]

Do part 2 please. I have been following Jerry's wholesaling plan and have earned $$, but this strategy is really appealing. How is the air BNB business? Any chance of having to pay that note because nobody gets the air bnb?

[@theeffectiveprogressive]

How is the wholesaling going?

[@Pattiecake]

Great video Clint, very informative. I am getting ready to apply this to a deal I just came across. I do have a question though and may have missed it but would the seller still have a mortgage they are paying directly to a bank? How would I as the investor protect myself from them defaulting on the loan if I am paying them directly?

[@ClintCoons]

You could pay the mortgage directly.

[@adolfocastro4338]

Yes I would love to have a part 2 so that I can continue not only learn but also see how it is done you can sign me up for the next one.

[@ClintCoons]

Just finished it yesterday. Plan to have it up in a week or so.

[@ramseygilmore4763]

Pace, how can i write everything off?

[@happytown5]

i would love to know how these convos go, could you post the link please?

[@ClintCoons]

Yes we missed in it in the notes. I have reached out to Pace for the link. Check back in a few days.

[@relandeefabreuluxe9513]

How do I structure the deal like his to have the creative financing contract? is it done by a lawyer or the buyer?

[@helenawu3688]

this is amazing!!! where can we find those recording memo on his iphone?

[@crisgraham4062]

Hey Pace, on the Poyer couple's deal in Maricopa AZ, since it was a 0% deal..did you include a "substitution of collateral" clause? If no, what were thoughts as to exclude it? Thanks again for such amazing content, please keep adding value to the industry and being an example of the value we bring and how it can be done with intergrity!

[@lilwolfgirl5169]

Hi Cris can you explain what a substitiution of collateral is?

[@erikhernandez9146]

Pace, how do you convince a seller to do Sub To and explain they don’t have to worry about the mortgage under DTI. Or still being reliable. And about the contracts how or where to get them etc..

[@allach1772]

Contracts hard to get unless you are a student. Or unless they are partial. To reduce DTI build leasing agreement.

[@godedaza8]

Hello I have a question if someone can answer it please Mr Pace Morby says at the end of the video that "Easiest way to get a Subject to deal as a first time home buyer." My question is if I already own my house that I bought/financed with a banking institution (Wellsfargo Mortgage), I can't buy a house under Subject to why wouldn't it be my first house?

[@ClintCoons]

Subject to investing can be used on any property with a willing seller. If you are asking can you do it with your current property the answer is that shipped has sailed but you could try it with new investing opportunities.

[@IWBVS]

Do you get to write off the interest you make to the seller? The servicing company would 1099 the seller and you at the end of the year?

[@ClintCoons]

Yes the interest you pay is deductible.

[@richcascio]

Pace did the money that you put up come out of your pocket or did you, partner,/borrow from someone?

[@charlesrobichaud-parahawkm4088]

outstanding, thank you. I learned a lot.

[@ClintCoons]

Very welcome

[@kayyknight]

Question. Say you do find someone that gives you the opportunity for sellers financing…once you guys draft up the terms and agreements are you able to put tenants in that space or no since the property is still in the original owners name? How would that work or is that even possible?

[@ClintCoons]

Yes, once the deal is complete you are the owner of the property - the seller is the lender. If you are using a land contract then title will remain in the seller's name but you have equitable title.

[@oracioflores9664]

Where can we find the note? I would love to read it over.

[@abeeiland2996]

Please let me know of the meeting clint of you and pace, I am interested 😊.

[@tammyjordan1013]

I need a love button, like is not enough!

[@bluerabbit1236]

Thank you Clint. This was an eye opening video. My only concern is, in these type of seller financed deals you assume the landlords are going to do their parts. What if a landlord defaults on the mortgage payment, or dies etc? What happens to all the payments you've made then, since the mortgage is still under his/her name?

[@ClintCoons]

Great point and that is why you should be making the mortgage payments directly to make sure it does not fall into default or else you can get screwed.

[@singingwindrider9881]

I would add that your agreement should spell this out as well.

[@antoniostephano]

I was confused by that math Wouldn't $129k on a $30k investment be 430% rather than 230%? Did Pace invert the numerator and denominator in his calculation? Someone please let me know if I am misunderstanding.

[@ManishPatel-cb2ge]

You sound right. Inverted numbers

[@revl595]

Love this! Signing up with Anderson Business Advisors was such a great decision for us!

[@ClintCoons]

Thanks Rev.

[@geminivending]

Can you also breakdown the #’s on the Air b & b? The rates, vacancy rate, monthly fees for service/air b&b upkeep 🙏 ✌️

[@natusfreedom472]

What if the , bank calls for the loan due .. it’s uncommon but they can call the loan due ? Because the sale of the property

[@ClintCoons]

Yes they could and you would need to pay off the property.

[@pamnugent1062]

Yes add more info on this!

[@ClintCoons]

Noted!

[@57muzic]

This is good stuff, thanks!

[@ClintCoons]

Thanks for watching

[@dmoore4698]

hi guys .... great infor and greatly appreciated. could you explain how managing the property as AirBnB can be taken against W-2 income, thanks ....a part 2 and maybe a part 3 would be great ... part 2 where you guys show us how to get these opportunities and part 3 the benefits of managing the first year of an Air Bnb property.

[@ClintCoons]

I am releasing a video on this soon.

[@BigNeckSmallWaist]

So the way it will reduce your W2 income is as follows. He is likely assuming that you are going to be filling a schedule C with your return to show the gov all the income and expenses related to the rental real estate business you now own by engaging in this activity. If you are smart and open an LLC or even if you do nothing the government would still assume you as a sole proprietor the moment you start conducting business as a business the gov assuming you are a sole proprietor unless you tell them otherwise by filing corporation documents. Both LLC and sole proprietors need to file a Schedule C with their personal 1040. So if you have W2 income of 100,000 and then you fill out the schedule C which is basically an income statement for your business so they want total revenue and expenses (there is more to it than this but obviously this is the top-level idea) let's say you made rents of 30,000 over the year and had expenses of 50,000 ( which include the furniture and your mgmt fees etc.) that means your business lost 20,000 over the course of the year. The next step is to net all your income sources and show the government your total income for the year so they can calculate the total tax owed. You made 100,000 W2 and have a (20,000) business NOL (net operating loss) for a total income of 80,000. From there you do all the other tax work with credits/ deductions etc but that is why is he saying that the expenses from your rental will deduct from your W2 income. More accurate would be to say it will deduct from all your income. So if you made a profit on the rental it wouldn't end up reducing your W2 income but the expenses would still lower your total income. If we take the same example I gave above but let's say you made 20k instead. In that example, you have 100k of W2 income plus 20k of rental income instead of loss ( you still were able to lower total rental income by the amount you paid for furniture and the MGMT company, etc which is why you are not using the total rental income amount but rather rental income less expenses) you would now have 120k total adjusted gross income to report and then proceed to go through calculating your credits etc. In this example the rental made your income go up instead of down. Hope that helps.

[@allach1772]

@@BigNeckSmallWaistthan you this was very informative, in this case would you have to buy property as an investment property or primary residence…. to qualify for such reduction?

[@BigNeckSmallWaist]

@@allach1772 no, so the rule the IRS follows is “as long as you are operating as a business, you are considered one” regardless of if you have filed for any corporate paperwork or not, if you have not filed any corporate paperwork, you are considered a sole proprietorship by definition. So that being said, you don’t necessarily have to purchase a building to be considered a business, you could, for instance be a property manager, who does property management services on the side and you get consulting fees for managing the property in this case you would own no properties but you would still have a business managing properties allowing you to be able to deduct all the expenses related to your property management activities. If your property mgmt income less expenses ends up being negative then that negative number would still be allowed to be deducted from your W-2 income. Hope this makes sense..I am a CPA so if you need further help with this, I am happy to jump on a zoom and walk you through it.

[@sjconley52]

Very insightful -- Thank you!!

[@ClintCoons]

👍

[@jimsestito8207]

Tough to find material (video or article) on benefits on seller financed from the side of the seller.

[@lyndastarwriter]

What's a HUD - if I understood the term properly?

[@ClintCoons]

Housing and Urban Development - now you typically receive a Closing Disclosure rather than a HUD1 statement.

[@flipposgarage]

I’m in OKC would love to JV or add value where I can I’m just getting started! Growing my network

[@stevenkyler4937]

Part 2! I’m curious about the air bnb listing also

[@ClintCoons]

We did it a few months back. You can find it on my channel.

[@loulupero4147]

With subto deal is there anyway defer capital gains on balloon payment with seller?

[@ClintCoons]

Not that I know of

[@loulupero4147]

@@ClintCoons Thanks

[@loulupero4147]

@@ClintCoons Thanks

[@ellenmiller563]

Pls. do Part II to this video.

[@ClintCoons]

Its on my channel.

[@thelmaclark5482]

I really want to learn the step by step on this seller financed property. I have somebody who wants to sell their house while the market is still good for the seller and get the price they want, get their money and rent from the new owner(buyer) for a year, wait for the market to shift downward, or until they find the right property they wanted to buy without any pressure from the new owner that they will be kicked out of the house anytime. Can you please show me how to calculate the numbers on both the seller and the buyer side so that it will be a win-win situation for both sides? Thank you.

[@jimoconnell2883]

Part 2 please…..We are ABA clients…..can we use our account to connect on the Sub To / Seller Financing p-work?

[@ClintCoons]

I will check with Pace and see if he can send over some of the forms he uses so we can upload them into the platinum portal.

[@reodconstructionfacilities1619]

Great Information