3 Types Of Novation Agreements

[@chefwltr]

Never once considered a novation for preforeclosures 🔥🔥 Thank you, always. Even though I’m in the mentorship, I STILL watch all of your KZbin videos lol. Forever the 🐐✌🏾

[@PaceMorby]

Walter, appreciate you. Thank you bro!

[@SmartLifeSolutionsWork]

@@PaceMorby Pace, I want to sell my house with you utilizing a novation partnership. After some TLC, it will again be a beautiful home. i bought it for my parents who have now both passed. the house has mold damage and needs about $25,000 of work to be sellable for $540,000. Or you could do $50,000 to also convert the den into a legal bedroom and build out the upstairs bonus room to ADD not only a 5th bedroom but also 420 square feet making the ARV $640,000. I owe ~$215k. I don’t care how you renovate it or what you sell it for, but I want to net a check of $300,000. And, I have a guaranteed buyer in cash begging to buy it if/when i sell it. Im all about being creative. If you do the value-adds, you will make $75k and never have any closing fees or a huge loan. Lets make this work.

[@SmartLifeSolutionsWork]

@@PaceMorby I should also definitely mention that the loan balance is about to shrink by $20k thanks to the govt printing money for the “Build Back Better” state HAF grants, so you could actually make $95k using the low end of the current price range per square foot this month in the area with great comps of $212/sqft easily converting a 3 bed, 2.5 bath 2,600 sqft house to a 5 bed, 2.5+ bath 3,000 square foot house.

[@chrisz7083]

@Pace Morby Can you do a novation with flipping a piece of land? Or is this just basically using an option agreement?

[@RealestateByMoe]

Thanks!

[@PaceMorby]

I appreciate you man!!

[@TheMyssLK]

Awesome information! Thank you for sharing this, in addition to the resources mentioned and provided. God bless you, Pace!

[@PaceMorby]

Thank you! I appreciate you.

[@brandonmix]

Damn Pace, you continue to impress with your in depth knowledge. Thanks for clearing up what novations are and the different ones. PURE GENIUS!

[@PaceMorby]

Brandon. Awesome. You're welcome man!

[@richfinesse3116]

Pace Morby your a flipping genious

[@queencloser]

Lol. This is so well put!! Super grateful to be in SubTo! Negotiating a Novation in Orange, CA as we speak. Chuck F’n Billy is a rockstar! I aspire to be Jen F’n Closer 😁✌🏼

[@tonynorton6439]

I want to thank you for sharing your knowledge and experience with us! Also, I hope you're doing well ( I saw the hospital wristbands) and I'll keep you and yours in my thoughts and prayers!

[@PaceMorby]

Tony. Appreciate you.

[@epep425]

Pace is a lyrical genius with his knowledgeable words! You are the man Pace!

[@vmagnus8457]

Literally In the middle of trying to structure one of these! Watched the Sunday service episode on this along with the chuck billy case study! Awesome stuff!

[@PaceMorby]

Awesome! Thanks for tuning in!

[@RealestateByMoe]

Loved it! Great structure.

[@PaceMorby]

Glad you think so bro!

[@KyleRoesler]

I think you just convinced me to join the sub to mentorship.

[@PaceMorby]

That's awesome dude! We're ready for you. Join now.

[@PaolaOrtiz-mm6vw]

So once you get the novation agreement signed between you and the seller, do you take it directly to title company just like wholesaling? Or where do we go to secure that novation deal?

[@rtmoorer2]

Bro this information is so dope. I am going to do this strategy today. And I will join your Facebook group. Wow!!!!!!

[@PaceMorby]

Roderick. That's awesome! Here's the link to the free Facebook group if you still need it: shor.by/Si74

[@letfreedomring9093]

I've done something similar in the form of a lease option but this is interesting.

[@yolimonty9604]

AWSOME , JUST PULLED A LIST OF FAILED LISTING, LA COUNTY AND SAN BERNARDINO COUNTY

[@LifeAfterAwakening]

Thank you for sharing, Pace. So, what happens if the property is sold for less than expected and the buyer is dissatisfied with the payout that is selling price minus repair cost minus investor's profit (if fixed sum) and they blame investor for making ineffective rehub, overspending on repairs etc.? Is there some minimum promised to the seller with novation deal? What can be the replications? Can he take an investor to court? If so, how to avoid it and protect yourself?

[@gradydustin1]

what standards do you use to determine that your buy-sell margins are where you need them?

[@cbdbotanicaltherapy]

Does the homeowner remain in the house as renovations are occurring with a novation agreement?

[@Directhomebuyers]

I’m a licensed agent, would I have to go thru my brokerage to do a net listing?

[@AlEntrepreneur]

🔥✌🏾🔥✌🏾🔥✌🏾 *Great content! Have you or your students completed a novation in an attorney state? 🤔 If so, a case study video would be awesome!* _Creative transactions tend to go smoother in title states_

[@williamhollis1201]

Second that!

[@PaceMorby]

Hey man! That's a great suggestion. I make a video of it in the future!

[@haroldbaez3014]

Yes that would be great!

[@adamgonzales8031]

Do you go threw title company with a novation or is that until its ready for mls?

[@withdawind]

In a Novation Agreement, when do you check the title? What protection do you have from the seller trying to blow up the deal after the agreement? I know - show up...

[@nazlymaestrerealtor]

It don’t matter if the house still has debt? thanks

[@philfinote3731]

This is great! Question: do you do a title search to confirm marketable title before beginning renovations?

[@mountainsidepropertiesllc8988]

Good information! Where can I get a novation agreement?

[@CoachJonBarbera]

What about if the property has title issues that you don't know about and you already renovated it? Do you check title beforehand?

[@PaceMorby]

Hey man! I check the title before making any renovations.

[@inmate0054]

I was just thinking. I wonder how I can pull this off then 2 days later this video. Thanks

[@PaceMorby]

You're welcome, Bruce! Appreciate you being a subscriber bro.

[@NVISIONFB]

AMAZING VIDEO PACE, Quick Question what percentage do you typically pay back on the loan from a private lender?

[@roqueramirez4207]

What if sellers have mortgage still?

[@tdot8398]

Yo pace, hope someone in your camp sees this but who pays the capital gains tax? If you sell the property for 400k & the money comes to you before you give the sell his 300k do you get taxed on the whole 400k sale or does the seller? Also what if the seller decides to bot sell? Could they stay & do a cash out refi & give you the profit margin we're looking for?

[@PaceMorby]

The owner pays the capital gains tax. Other great questions that are too lengthy to answer in a comment. Post them in the Facebook group: shor.by/Si74

[@Pennconst101]

This sounds incredibly similar to an option agreement. Am I wrong? And this would require the elusive simultaneous close😎Super curious what the differences are from your eyes. I appreciate you sharing the knowledge.

[@AndNew137]

Why not sub to first? Just to protect yourself? What if they sold it after you renovate?

[@ZTZ330011]

What is prime corporate credit? They do LOC or they help you build business credit?

[@Pcoxproductions]

How did you know I live in Houston

[@EFGeneral1]

If I'm understanding this video, in a novation agreement, I'm paying the owner of a sort of run-down house to flip his or her house. When the house is flipped, the original owner you paid still owns the property?

[@real_josephmtz1162]

Can you do a novation agreement with an agent involved

[@suhailaashraf7543]

Guys any ideas on how to pitch it ?

[@cristinaciganek9225]

is a notation agreement the same as a wrap around mortgage?

[@loopums]

Hi Pace. My realtor brought me deal where the owner has a rehab that isn't finished but she wants out. I can't offer over $80K without losing money and she wants $95K. I want to do a novation agreement where I pay for the rest of the rehab but I don't want to flip it. I want to purchase it myself. After the rehab, it will hit an ARV that I need to be able to give her the $95k she wants, pay my realtor for the deal, recoup my rehab costs, then rent it out as a midterm rental. I want to make sure this all makes sense since I'm not exactly flipping it.

[@real_josephmtz1162]

Did you ever get this figured out? I’m trying to understand how this agreement would work with an agent involved

[@loopums]

@@real_josephmtz1162 I didn’t. The lady was still trying to keep her home so we moved on. But my agent was going to add his fee after she officially sold it to me when the rehab was completed.

[@StevenSloan-sh6hx]

The description of novation as given seems much like an "assignment" but with terms that permit the purchaser (me) to make alterations/improvements to the property before "assigning" or "novating" the contract over to a potential buyer. I guess my question would be what is the difference between an assignment or traditional novation agreement and a Pace Morby version of a novation agreement?

[@rmblocker]

Yours is the correct legal definition of novation a contract. Not sure why Pace is using that term when all he is doing is a JV with the seller. Been done for decades.

[@americafixyourcredit8490]

Your website /start gives a 404 error can you update me on a new way to search my area?

[@PaceMorby]

It works fine on my end. Try this link: pacejmorby.com

[@jamarmills7928]

Awesome Can we do Novations Agreements on mobile homes

[@brianvaughan4336]

Of course!

[@PaceMorby]

Jamar. Yeah, go watch this Sunday Service where I talk about novations. kzbin.info/www/bejne/qanMdGyjgrx5gLc

[@jjjryan]

Can you...Have you done a novation agreement with an option to the seller? An option that allows you to go out and find that buyer first, then complete the novation agreement with the seller.

[@PaceMorby]

Ryan. While you're renovating you have the ability to do that already without an additional agreement in place.

[@gageschultz6019]

Would you have to use contractors or can you do the work yourself?

[@PaceMorby]

Hey Gage! I prefer to use contractors. Appreciate you being a subscriber!

[@brothehandyman2011]

I have been searching and searching and can't find a solid answer to a question i have. I've been reading and learning the wholesale real estate business. I just learned awhile back that the state I live in requires a real estate license to wholesale. (Which is Oklahoma) I'm not yet financially able to get yet. Questions: 1.) Can I wholesale virtually from another state that does require a license or do I need a license to do real estate wholesale just because I live in OK? 2.) How would you do a deal if I'm unable to get a license just yet and the state I live in requires it? (I'm not want to completely avoid a license I need to make a few deals to be able afford to get the license.)

[@tonynorton6439]

You do a double close instead of an assignment agreement. It's just a bit more expensive because you have to pay an extra set of closing costs but still doable.

[@tonynorton6439]

Also... you have to follow the laws of the state the DEAL is in not where you're located, so yes, you can do assignment agreements in other states that don't require a license.

[@brothehandyman2011]

@@tonynorton6439 thanks for the info greatly appreciated

[@PaceMorby]

Bro the handyman, reach out in our Facebook group with over 43,000 investors nationwide. We got you covered on those questions. shor.by/Si74 Make a post!

[@dayzeo]

I need to work this strategy! I’m joining SubTo!

[@PaceMorby]

Awesome man! We're ready for you, anytime. Join now. go.subto.com/pace-yt

[@autofashi0n]

In some states Net listings are illegal!

[@PaceMorby]

Oh, good to know.

[@dagame4035]

Yeah but what if he goes behind your back and sell to someone else the title is not clouded with a agreement in some cases a memorandum agreement doesn’t work so you will lose

[@catearsmedia]

Anyone see the hospital band on his wrist?

[@coryda]

So you are not going on title before completing the renovation, if so how do you know you don't fix everything and the owner doesn't change their mind about the Novation unless this is all in the contract

[@PaceMorby]

Cory. Always protect yourself within the contract.

[@trisham22333]

Hello Pace. As a beginner house flipper, is it best to start off small like with a mobile home for example, that is in foreclosure that I can purchase for 8 or 10K? Then renovate it for around the same amount or a ranch style home, etc

[@PaceMorby]

Hey Trisha! There's no right or wrong way to start. It all depends on your goals.

[@doesitmakeanysense882]

Does anybody know how is it called in Spanish?

[@rmblocker]

proyecto conjunto

[@doesitmakeanysense882]

@@rmblocker thanks a lot!

[@anthonyroche4979]

Hi Pace I cannot access the Facebook page, it doesn't even appear when I search for it. Can you help?

[@PaceMorby]

Anthony. This link should work! shor.by/Si74

[@lisacarson3825]

What off u cannot sell it

[@lisacarson3825]

I mean if

[@_realsavyinvestor]

I get that there's a bit more nuance but I appreciate you explaining the nuts and bolts. People always tell me I make sound too simple 🤦🏾

[@wesniemiec9467]

Can you wholesale one of these agreements and just make a fee and give it to a flipper?

[@adamgonzales8031]

Yes you can from what I've learned from youtube.

[@Leo.KillerOfBaseballs]

Hey Pace, I have a very motivated seller and is open to seller finance, could you help me structure the deal where I don’t put any money down, no rehab money no interest etc

[@PaceMorby]

Awesome! Here's a video where I discuss how to structure a seller finance deal with no money down: kzbin.info/www/bejne/gZaTn62wjr14nM0

[@MrMicah8]

Where is the novation contract agreement?

[@PaceMorby]

Hey Chaun! Unfortunately, those contracts are for my students eyes only. If you want access to them, reach out to them on the free Facebook group and work on the deal together! paceapproves.com/communityytc

[@themirandas2023]

Anyone have contracts

[@josuecruz3116]

How does this video only have 672 views SMH, this is gold

[@PaceMorby]

Josue, thank you brooo!

[@romanogold82]

Would y’all great folks in here please do the homie PJ a solid and SMASH THAT LIKE BUTTON so the algorithm can get it in front of more people? This is news you can use!!!✌️✌️✌️

[@PaceMorby]

Jamari, you're awesome bro! Thank you.

[@Cashclosechris]

Pace what camera are you using? This thing is SUPER clear! Thanks again for the amazing content. I'll definitely be using this in my investor tool belt.

[@PaceMorby]

Hey Christen! I'm using a Sony A7 SIII. Thank you for being a subscriber bro!

[@Gxctor]

any of Paces students want to JV with me on a 5/3 house w/ 2,400 SQFT?

[@Truly_JD]

Aha🔥

[@PaceMorby]

Hey Joshua! You should also check out my other video about novations. kzbin.info/www/bejne/rqKwloCqedScd80

[@sepperso]

Am I the only one who thinks the volume is extremely low?

[@janellem9332]

Pace giving away all the info his students paid $8000 for. 😂💵😂

[@PaceMorby]

Janelle. The whole subto fam is about being go-givers. ❤️

[@repurposeyou]

I remember doing these 4 years ago, too late because the hype is here. Don't recommend them.