What to Say to Sellers on the Phone | Pitching Creative Finance

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@Trentmack13 10 ай бұрын

This was a master at work, He basically broke down sub two in that little bit of time, and he killed the call from the very start when he asked the questions about the kids and the rooms wow. My favorite part was the phenomenal breakdown of the mortgage regarding the payment of $340, Absolutely brilliant.

@PaceMorby 10 ай бұрын

Thanks man, really appreciate you!

@christianstill.6654 7 ай бұрын

you're gonna look back at this and realize how simple it was. genius.

@thenurseceo 7 ай бұрын

@PaceMorby I wanna be a genius like you when i grow up! lol

@melodeelucido1446 7 ай бұрын

Pace is the master. Non solicited testimonial. I am not an official student/member . . . Yet. Have been in the crei biz for way more than a decade. Whathe is sharing is absolutely right on. When I recover from a hurricane disaster I will be one of Pace's students. This is real guys. Listen to this a bazillion times and then lip-sync him to get comfortable with the process. EVERY minute, every HALF minute is pure gold.

@inthevanwithalexa 6 ай бұрын

⁠@@PaceMorbyPLEASE TELL ME HOW THIS UNDERWRITER WRITES OUT THIS DEAL WHERE THE EXISTING MORTGAGE DOESNT SHOW UP ON SELLER SO HE CAN BUY ANOTHER HOME I MEAN THATS THE WHOLE DEAL YOU CANT EVEN DO THIS DEAL WITHOUT THAT INFO ! I NEED THIS INFO ALSO WHO IN REAL ESTATE IS GOING TO KNOW AND HELP PUT THIS DEAL TOGETHER LEGALLY WHAT PEOPLE DO I NEED TO MAKE IT TANG-ABLE AS FAR AS PAPER WORK AND SENDING TO WHOEVER TO HAVE IT LEGAL ? LISTEN I TALK TO LENDERS AND THEY ALWAYS TELL ME I CANT BUY ANOTHER HOME BECAUSE I OWN A HOME AND I DONT MAKE ENOUGH MONEY TO AFFORD TWO LOANS ITS RIDICULOUS LITERALLY GOING TO RENT THE NEW HOUSE OUT I JUST AM AT MY WITS END I NEED YOU !

@JDegen-jt1bw 10 ай бұрын

🎯 Key Takeaways for quick navigation: 00:00 *📞 Introduction to the Seller and Situation* - Pace introduces himself as a real estate investor. - Discussion about the seller's situation and their plans. - Pace offers to explain creative finance as a potential solution for the seller. 01:47 *💰 Explanation of Creative Finance and Terms* - Pace explains the concept of creative finance. - Benefits of creative finance for the seller, such as quick closing and flexibility. - Discussing the focus on terms rather than price in creative finance deals. 03:23 *🔑 Benefits and Challenges of Creative Finance* - Pace outlines the advantages for him as the buyer in a creative finance deal. - Addressing challenges, such as dealing with equity and payment structures. - Explanation of how commissions and expenses are handled in creative finance transactions. 08:25 *💡 Creative Finance Deal Structuring Discussion* - Explanation of potential deal structures in creative finance. - Importance of determining seller's interest and minimum down payment. - Detailed scenario walkthrough with considerations for a smooth transaction. 09:50 *🏡 Simplifying Creative Finance Process for Sellers* - Pace explains the process of him taking over payments and handling commissions. - Real-life example of a similar deal solved using creative finance solution. - Addressing seller's concerns and emotional aspects in the deal-making process. 11:14 *💰 Handling Equity and Payment Terms in Creative Finance* - Detailed explanation of handling equity in a creative finance deal. - Discussion on repayment terms and refinancing strategies. - Managing monthly payments and long-term financial strategies in creative finance transactions. 16:39 *🏡 Creative Financing Strategy Discussion* - Explanation of showing the new lender the change in payment responsibility. - Importance of ensuring financial feasibility and understanding debt-to-income ratio. - Collaboration with the current lender for a smooth transition to the new loan. 19:26 *💸 Evaluating Cash Flow Potential in Creative Finance* - Detailed breakdown of potential cash flow calculations in a creative finance deal. - Emphasis on managing expenses and ensuring positive monthly cash flow. - Factors influencing cash flow, such as rental rates and expense budgets. 20:32 *💡 Value in Creative Finance Deals* - Explanation of the true value in creative finance deals beyond purchase prices. - Emphasizing the benefits of low down payments and takeover of existing low-interest rates. - Introduction to leveraging private money partners for deal financing and sharing profits. 24:24 *📞 Effective Communication with Sellers* - The importance of building rapport and creating a connection with sellers during phone calls. - Addressing objections and sympathizing with the seller's situation. - Planting seeds for future discussions and ensuring the seller's understanding of their best solution. 27:04 *💰 Addressing Equity and Refinancing Terms* - Explaining the process of handling equity payment and refinancing in creative finance deals. - Clarifying the role of transaction coordinators in setting terms for refinancing. - Emphasizing the importance of clear communication and avoiding overwhelming sellers with excessive information. 30:28 *💡 Focus on Speed and Effective Deal Structuring* - Identifying and addressing the seller's primary objection to expedite the deal process. - Contrasting the mentality of cash transactions with the benefits of creative finance in terms of equity and deal structuring. - Highlighting the advantages of creative finance in providing win-win solutions for all parties involved. 32:58 *🔀 Creative Finance Explanation in Practice* - Explanation of creative finance concept in dealing with sellers. - Clarification on the process of creating notes for financing without using upfront cash. - Discussion on the strategy of paying the seller through financing and handling the mortgage payments. 35:02 *💸 Reasons for Buying Real Estate* - Detailed breakdown of reasons for buying real estate beyond just generating cash flow. - Explanation of anticipated appreciation in value and tax benefits. - Insight into leveraging real estate investments through refinancing to access additional funds for future investments. Made with HARPA AI

@webuydehouses 5 ай бұрын

❤❤❤

@Sborges02 10 ай бұрын

The way pace directs the conversation with sellers makes it look like to the seller hes the only choice and the best choice and its absolutely beatiful!

@PaceMorby 10 ай бұрын

I am the best choice!

@aaronbroderson186 24 күн бұрын

Chris had a great question! And the way you visited with the Homeowner you gave them the confidence and impression that they would get them their equity fairly quickly and realistically you probably won’t see a lower interest rate until after that loan is completely paid off. I personally would have a somewhat of a hard time sleeping at night without letting them fully understand that

@EverydayMiniVlogs 7 ай бұрын

This is GOLD!!! I’m about to call a seller right now that’s been trying to sell their property for over a year and 3 months. Wish me good luck.

@PaceMorby 7 ай бұрын

Good luck man!

@vanessasimmons5631 6 ай бұрын

@@PaceMorbyI have a great deal in McComb ms that this video will help. So genius! Is there anyone that would like to participate or know how I can give it to pace?

@pudliciousxiong 3 ай бұрын

I need an update

@TRANSCENDANT_LOVE 3 ай бұрын

I was coming to say the same😂@@pudliciousxiong

@jamespak8053 3 ай бұрын

What if the seller or realtor says that the interest rate WILL NEVER go below 3.5% EVER again? Which just means you will NEVER pay that equity to the seller? This creates concerns for me.. So even though we are solving their problem initially.. wouldn't it be a bit concerning to never pay that equity to the seller? I mean the loan will get paid back to the bank.. but the seller sold their property for a 20-40k down payment (essentially, bought a 340k property for 20-40k).. isn't that manipulative and downright unethical? I mean is that 24 months only for a cash refi CONTINGENT upon interest rates going down below or around current interest rate? Or is there an actual ballon period where the seller will be paid out the remaining equity?

@imeldainterino7747 10 ай бұрын

Awesome video Pace! I closed my subto deal today learned from you. I am in the process of joining the Top Tier TC program ❤🎉

@PaceMorby 10 ай бұрын

Let's go! That's awesome so happy for you.

@jamespak8053 3 ай бұрын

@Higherself321 10 ай бұрын

The most professional sales people I’ve ever met in my life, bring up objections and disarm them before the prospect. It’s complete and total control and you make it very hard for them to say no. Especially in this case.

@MereiaRanadi-h4k 10 ай бұрын

Very professional and really helpful because you know the downside of it and already put the solution in place- you empathize and put yourself in the situation because its not always about the money but People

@jamespak8053 3 ай бұрын

@santiagobenitez6818 5 ай бұрын

Pace is a gangster. Dude is a beast! Great teacher. Makes it look so freakin easy! I’ve watched this call several times and it doesn’t get old.

@lucybalyanify 10 ай бұрын

so you take over sellers loan payments & rent out the house or sell it via wholesale & use the money to pay the equity or the loan @3.75%. Waiting until rates are below 3% coukd take a long time. What if seller wants their equity money in a certain timeframe.

@gavinvanhouten 9 ай бұрын

Not completely sure but my best guess would be getting with a PML or HML (Private Money/Hard Money Lender) and giving them 50% of the deal if they can get the seller their equity.

@rafaeloropeza7544 9 ай бұрын

I have the same exact question

@rafaeloropeza7544 9 ай бұрын

What if the interest rates never go under 3.75? Or it doesn't happen until after 10 years?

@rafaeloropeza7544 9 ай бұрын

Also this is perfect scenario where you are putting the money to pay the agents and to pay the down payment to the seller. If you get private money to pay all that then you have to consider interest on that money, which will dilute the monthly cash flow

@rafaeloropeza7544 9 ай бұрын

It seems to be a very good but very long term strategy

@johnPxIV 8 ай бұрын

That's a good network! The agent is bringing you deals, and prepping a good lender the seller's next purchase. Very good convo, Pace!

@PaceMorby 8 ай бұрын

Thanks!

@codytyler8447 10 ай бұрын

I have the same question as Chris, so how will the seller want to move forward with this deal with Pace knowing he is putting those terms in the contract that states "I will not refinance until the interest rate is 2.5%"? Or is that not what you tell the seller? I can just see that becoming a problem down the line when the seller wants to collect their money.

@The_Hand283 10 ай бұрын

I guess all the smart questions are still unanswered here in this comments ! Only flowers and roses they see:)))

@butchgreene 5 ай бұрын

At 40:00, he has paid down the loan a ton & gained a ton of equity. If the seller calls & says my wife was in an accident & I need my $100k equity, he’d be able to refinance & pay the seller with virtually any bank because the loan would be half the appraised value & it would be an easy commercial loan too because he has a proven income stream from the tenants

@J.Zealuis 4 ай бұрын

@@butchgreenebut why would he refinance at a higher interest rate??? So let's say it doesn't ever go down?

@jamespak8053 3 ай бұрын

@jayroduarte9118 10 ай бұрын

This video came out at the PERFECT! time for me. Cleared up so many questions. Thank you Pace

@neckhammockothermusthaves7476 10 ай бұрын

You and me both! :) Good luck!! :)

@PaceMorby 10 ай бұрын

Glad you enjoyed!

@jamespak8053 3 ай бұрын

@topdollarjoseph 2 ай бұрын

Wow, sub to's are awesome. I've been a real estate broker for 27 yrs. and I never seen a real estate strategy that comes close to sub to's. Pace, you're a genius!!!

@mandeepsahota6550 10 ай бұрын

This is such a great call, Pace you are the "GOAT" !!!!!

@PaceMorby 10 ай бұрын

Thanks glad you enjoyed it

@Michael-vc2cs 5 ай бұрын

32:34 Thanks for clarifying! I often tell people you have two choices in any market, real estate or otherwise. You can sell it in a short time for a discount and this applies to all products someone could purchase. Or, you can sell it for more money and it will take longer to sell. Overall, creative financing is the long term play. You can give the seller everything they’re asking for, just not today. It’ll take time. I like presenting all options. Brilliant video!

@jamespak8053 3 ай бұрын

@DiscipleshipwithDani 8 ай бұрын

Professional, empathetic, strategic, educational. Gold ✨️

@PaceMorby 8 ай бұрын

Thank you!

@MichaelKingen 10 ай бұрын

@PaceMorby - My favorite part of this video is minute 40:00 to 41:00 LOL , so funny . This is gold though- This video is a small glimpse of what is inside the mentorhip....Just another day at the office though

@PaceMorby 10 ай бұрын

Exactly!

@corpralsam 5 күн бұрын

I like the way you do it. I like how you make your calls and talk to the potential client. You dont seem sleazy. Keep up the good work. Perhaps if I can get out of my own head, Ill be able to join you and start making some money!

@oldskoolfunk71 10 ай бұрын

1:29 Thank you Pace Great call

@PaceMorby 10 ай бұрын

Glad you enjoyed!

@rmw090 10 ай бұрын

You’re on fire pace. That call, that deal, insane. You’re extremely on point and well spoken and know exactly what to do!

@PaceMorby 10 ай бұрын

Thanks so much! Glad you got value out of it!

@nandingpanelo 10 ай бұрын

Thanks Pace and community, learning a lot. Appreciate you

@PaceMorby 10 ай бұрын

Glad to hear it! Thanks for being here!

@Ryansacrobat 6 ай бұрын

Have you ever had a seller ask for a guaranteed time to repay the equity and if not how would you answer that?

@purehenny10 10 ай бұрын

🏆 this is the greatest videos explaining how real estate is so powerful

@PaceMorby 10 ай бұрын

Thank you glad you enjoyed it

@LisaKing-k6s 6 ай бұрын

PACE...you always bring the FIRE and so much value! LOVE LOVE LOVE your style and your brilliance. THANK YOU for sharing with us!

@StejamTravels 10 ай бұрын

I just got hired by a wholesaling company and I am studying up to be better on the phones. I've been binge watching your videos and I want to thank you for teaching what you teach. This is gold. I've bought all of my properties with 20-25% down payments but this is a much better strategy as long as you have a tenant paying off your debt payments!!

@PaceMorby 10 ай бұрын

That is awesome!

@ryanvanrensselaer5517 5 ай бұрын

Pace great job educating that seller. I have a couple questions, what happens if the interest rates don’t come down in the next 2 to 4 years? What happens if the real estate market crashes and the value is 10 to 20% less? How will you pay back the seller has equity?

@TroyDandridge Ай бұрын

I'm an Designer Troy Dandridge but as a designer with out a shop to Make what Troy designs then all Troy Dandridge has is an Wonderful idea But Creative Finance is Troy shop class why? Pace Morby shows how it WORKS!!! PACE is the how to do so now Troy looks for homes for sale or Home for failed agents list, or 20 unit for how Subto Gator Methods Creative Finance will use it for income and buy and hold property

@brandonmix 6 ай бұрын

Pace, love you man and I always gain valuable insight and strategies from listening to your calls. I’m also a SubTo/Gator student. Here’s the question that you didn’t touch on that I feel is extremely important for others to remember and to research…the $380 net cashflow you quoted is based on the current PITI payment. Considering the seller had significant equity and not knowing when they purchased the property, I have to assume they purchased the home probably 10+ years ago. Their tax base is probably much lower than what a new buyer would need to pay. So there will probably be a reassessment at the $340k mark. What that new annual tax amount is, I don’t know, but it is something every investor needs to be aware of and factor into their numbers. More than likely, their PITI will increase after the purchase.

@lesliegraves2069 Ай бұрын

Brilliant! Looking to do that for our home and next home! Wanna bag the whole bank experience 😅

@chade8888 10 ай бұрын

Mahalo -Thank you Pace …excellent call as an example…Aloha!

@Lars.Lottrup 10 ай бұрын

Really great job. What do you do if house marked go down? Then you can't free the equaty with a refinance. I wish that system would work here.

@lizfitness1108 Ай бұрын

Loved this! Lots of great sales built into this example. New to sub 2. Question that was not answered directly. Does the purchase agreement state that the seller can expect to receive the remaining equity upon refinance OR upon sale of the home? Is there a definite time frame provided to the seller providing a time upon which the remaining equity will definitely be provided? In other words, if the contract states that the equity will not be paid back UNLESS the interest rate to refinance gets to 2.5%, is there a chance the seller NEVER gets the equity? I am a mortgage broker and I know that rates can be bought down. It is just a matter of $ thrown at it. Does the purchase agreement specify which rate has to get down to 2.5%? Does the purchase agreement give a specified time frame upon which the equity is paid back? Would you as the buyer pay the equity back upon sale of the property and is that put into the purchase agreement between you and the seller in a sub 2 agreement?

@BrianClark-w3l 2 күн бұрын

If you wholesale the deal how do you know you can trust the person to pay the notes and know the person won't put a lean against the house

@jamesgibbons8855 7 ай бұрын

This all sounds really good, I still have one unanswered question and would love if somebody could help me. Since there was no guarantee to refinance within 24 months, how long does this loan burden the seller in their life moving forward? This is a quickfix for the seller, but in the long term doesn’t having two mortgages make any subsequent financing for them more difficult, until the buyer pays off the loan? Still not convinced it’s the right thing for everyone involved.

@whatskevindoing 4 ай бұрын

As a mortgage lender the issue I see with this conversation is that the seller is still financially obligated to the payments on the subject property. Therefore it is not as simple as just giving them 20k to go through with the pending purchase of their new home. They would have to qualify for the new mortgage with both the existing mortgage payment that Pace is taking over AND the new payment on their new home. The only other option is to lease it to Pace prior to closing to negate the debt and then finish the Sub To transaction after they close on the new home.

@JadenMarkCapital 3 ай бұрын

Obviously not an issue given the hundreds of transactions he’s done. He addressed your concern in the video. You obviously didn’t watch the whole thing.

@jamespak8053 3 ай бұрын

@@JadenMarkCapital What if the seller or realtor says that the interest rate WILL NEVER go below 3.5% EVER again? Which just means you will NEVER pay that equity to the seller? This creates concerns for me.. So even though we are solving their problem initially.. wouldn't it be a bit concerning to never pay that equity to the seller? I mean the loan will get paid back to the bank.. but the seller sold their property for a 20-40k down payment (essentially, bought a 340k property for 20-40k).. isn't that manipulative and downright unethical? I mean is that 24 months only for a cash refi CONTINGENT upon interest rates going down below or around current interest rate? Or is there an actual ballon period where the seller will be paid out the remaining equity?

@JadenMarkCapital 3 ай бұрын

@@jamespak8053 Pace mentioned that the nitty gritty details aren’t talked about in the first meeting just to keep from confusing the seller and getting “buy-in” to the idea because it’s very unique for 99% of the public. However, ALL the details are gone over in the second meeting. Remember, all those people have to risk is losing their home. Pace has a multimillion dollar business and reputation to keep from losing. So, you can bet all the sellers concerns will be addressed. Plus, everything’s spelled out in the contract. I doubt Pace is going to jeopardize a multi/million dollar a year business to skate someone out of $100,000. As the seller, I wouldn’t do ANYTHING I didn’t completely understand and have my attorney understand also. I’ve never heard Pace prevent someone from doing their due diligence. In fact, he encourages it for the reasons I explained above. Just my take.

@kimmieshimmie Ай бұрын

@@jamespak8053there would be a balloon, with potential to extend for an additional period if there is not enough equity yet to refi (like if the value of the house goes down).

@idus Ай бұрын

It’s not an issue if you can prove some other entity is covering the monthly payment. It frees up your DTI for another loan.

@katastrofikRQ 9 ай бұрын

34:54 So the answer is that when the interest goes down, you will then get a loan that will cover what is owed. Easy day. However, most people don’t believe that the rates are ever going to dip that low so how would you overcome a seller objection being if your plan is to refinance when rates drop and we have no reason to think that is going to then I am never going to see the equity in my house. At the very least if I were Seller, that’s what I would be thinking. Because if the equity in my house is tied up waiting for you to get a better rate, there’s a possibility that I will never see the equity in my house and I’m not sure why I would want to do that. How do you overcome that objection or how would you explain it to somebody who was thinking like I am thinking? Are you not refinancing and instead of just taking equity out of the house to pay? Can you take out equity subject to mortgage? That seems like it would be tricky. How would you do that?

@EliteTime 7 ай бұрын

I hope the seller is out there who has the same situation, watching this video, Pace. Then, they may ask for help solving their's! If I had known you before, I wouldn't have gotten into the foreclosure!

@laroca2692 8 ай бұрын

@Pace you are a BEAST man. The only question I have is, how can you refinance if the loan is not in your name?

@lovelymoe78b77 8 ай бұрын

He’s using a deed transfer

@epauloconnor 9 ай бұрын

@Pace Morby I'm wondering about a few different things... 1. The seller still has the debt in their name, for them buying another house, how does that mortgage (on the house that you're buying Subject To) not go against their debt-to-income ratio and effect them buying the next house? **** Answered at @15:05 **** 2a. With the mortgage in their name still, they could choose to do a refinance, HELOC, or second mortgage on the property still, right? 2b.The bank doesn't know that title work was done and that the deed has been transferred... if the sellers do the above mentioned HELOC and default on the loan... and the bank begins foreclosure proceedings... what happens then? You sue the seller? The bank is just SOL, because they can't foreclose on the home and have to try to sue the seller and go for any assets that they might have? They still foreclose on the home, but go after you for the amount that you are under contract with the seller for? This is tricky.

@theTXwolfman 8 ай бұрын

Not an expert but have done several of these deals in past. 1) Just like any landlord lease deal, the landlord has their own house in their name and may have 5 or 10 other houses they lease out, all mortgages are IN THEIR name, but those mortgage payments are taken OFF their DtoI ratio because someone else is making the payment on those ie: the tenants, it's the same thing. 2a) The seller with the mortgage still in their name CANNOT do a refinance or heloc or whatever because they DON'T OWN the house any longer. Can't get refi money out of a house you don't own. That should answer 2b) as well since it can't happen. Hope that helps.

@Bellatopia 6 ай бұрын

You are awesome!!! These are the best videos on investing i've seen yet...and i've seen ALOT.

@MonteMitchell 6 ай бұрын

This was incredible! I need to learn this. I own 17 houses 22 doors & ready to scale!

@CashOUT-x8o 5 ай бұрын

Cool, Calm and Collected. Impressive, as usual and extremely helpful.

@PaceMorby 5 ай бұрын

Glad it was helpful!

@jeremykalma6061 7 ай бұрын

Wow! That was awesome the way u broke everything down.

@mido9f 10 ай бұрын

Very smooth closer! bravo! 👏

@Mike_the_negoatiator 8 ай бұрын

Very smooth lol 🔥

@vividhaiku 8 ай бұрын

They cherry pick the most motivate people out of THOUSANDS of leads they're getting from their "students" and so it looks easy.

@yougeo 5 ай бұрын

I want to hear how the warranty deed allows the new lender on their next house to give them another mortgage. And how does that affect the tax benefit a homeowner gets when they're rolling the equity from one house to the next house without having to pay a tax on that game because it's the homeowner rollover exception.

@realtalkaccelerated351 10 ай бұрын

If rates do not fall below the assumed loan rate, then what? How will the seller receive the equity?

@PaceMorby 10 ай бұрын

There are a couple other options, such as sell the property if it comes to that

@lolfemfaillol3933 7 ай бұрын

Lose your up front investment

@seanh.6268 6 ай бұрын

Yes, this only works assuming rents and housing prices always increase.

@Cloudsever Ай бұрын

wait so then u told him a half truth w the 24 mth refi knowing ur paperwork or "team" say you can refinance contrary to what was said otp. rigght?

@TroyDandridge 2 ай бұрын

PACE they're in the best shape by letting you solve their 1411 dollars what's Cool is Pace Morby is showing the Deal of 3.5 interest rate!

@topdollarjoseph 2 ай бұрын

Pace, can you post a link of who you use for escrow and title? Thanks.

@christopherallcox3545 28 күн бұрын

So what happens when rates keep rising instead of coming down? How would cash out their equity then? Asking because rates will not be coming down.

@michaeltheshadowpoet9716 8 ай бұрын

pace, you are awesome, putting all the pieces together

@PaceMorby 8 ай бұрын

I appreciate that!

@conradmyers3310 3 ай бұрын

So the equity is just left in limbo. Is there some kind of contract that guarantees the seller that they'll get their equity paid back? Does it have a time frame in it? If so, what is this contract called or what does it look like?

@OfficialJordanWildman 2 ай бұрын

what about when you have the homestead exemption fall off and having a rental policy on the property. in this exact scenario I would imagine that eats up the remainder of the cash flow.

@angelaford6754 Ай бұрын

Thank you so much pace

@georgeneufeld6271 5 ай бұрын

Where are you getting the cash to pay the realtor commission and closing?

@ryanabitz 5 ай бұрын

The only thing I don’t understand fully (very new to this), but like the dude that called in asked but didn’t finish imo, is, if the interest rate NEVER goes back to 2.5% (which seems very realistic rn), you just never pay him his equity? Or only when you finally sell the home down the road whenever that may be?

@entrepreneur510 10 ай бұрын

What a beast! Great job Pace!

@PaceMorby 10 ай бұрын

Appreciate it!

@suzannebonham583 24 күн бұрын

Pace, I thought I heard you mention someone by the name of Molly who can refer us to an appropriate title company in our state - is this correct?

@kingrae2789 8 ай бұрын

You say for the past 8 years (in other videos you have not used your credit for anything. How then would you get a refinance if its not an FHA or if you have already exceeded FHA limit?

@arielgonzalez9852 10 ай бұрын

Meanwhile the sellers wait for their equity. Equity they could have used for furniture, new car, etc. Have any of these Gators received threats by sellers ? Since it takes years before refinancing ?

@luketillery2687 6 ай бұрын

There’s no equity to wait for if you can’t sell the house…if there was a better deal, it already would have sold.

@michaelalexander-h4u 6 ай бұрын

What about needed renovations during the long term of owning the rental? Such as a new roof (big expenses). I know you said 500 a month goes to managing the property. Is the big expenses included in that?

@johngleue 10 ай бұрын

If you're not making money then you're not providing value. Money is a measurement of the value you're providing. In a free society our richest would be those who provide the most value and would be acknowledged for the heroes they are. That's the beauty of win - win voluntary trades and the true value of cooperating with other individuals. Every person out there in the world is a potential value to your own life when you embrace these principles. The productive businessmen are who's responsible for the constant increases to our standard of living. Knowledge is power so be aware and open for new opportunities to learn.

@PaceMorby 10 ай бұрын

Boom. Mic drop.

@Arthurboss_777 2 ай бұрын

What happened if you not going to be able refinance due to interest rate will not drop?

@yrnpatrickbang788 8 ай бұрын

Needed this thanks pace

@PaceMorby 8 ай бұрын

Happy to help

@MIKE.SHAPIRO 10 ай бұрын

Great work bro,learning lots from ya.Thank you🤙

@PaceMorby 9 ай бұрын

My pleasure!

@Realestate_efrenortiz 10 ай бұрын

Another Awesome video!! ❤🔥🔥

@PaceMorby 10 ай бұрын

Thanks 🔥

@shawnsae 6 ай бұрын

But will this work w standar mortgage.. is only for va or fha??

@jamesgibbons8855 7 ай бұрын

I’m just now learning about subject to financing and listening to as much content as I possibly can. Can somebody help me understand a few things? The sellers name, doesn’t that continue to damage their credit for any subsequent years moving forward, until the loan is completely paid off? Also, what sources are you using to pay down the remaining loan in 24 months?

@vividhaiku 8 ай бұрын

I refinance "when rates go lower" When is that exactly?

@MizZzChAvVvOzZz 3 ай бұрын

Only the insiders in federal government know when this Will happen

@EAllison-dr8tb 3 ай бұрын

What websites to find these pre foreclosure homes?

@pablosaracho7448 9 ай бұрын

My question is what if you can’t refinance, what if for the next 2-6 years the rates are higher than what you locked it in for?

@loyasrealestate 9 ай бұрын

Was wondering this too

@OneLeggedTarantula 8 ай бұрын

he doesn't lock in on a time frame (i.e. 24 months), the contract states he MAY do when when the rate goes below 2.5% I don't think the seller understood that, smooth but misleading.

@user-es5jq6yy9l 5 ай бұрын

@@OneLeggedTarantulamisleading

@J.Zealuis 4 ай бұрын

@@OneLeggedTarantulathat's so misleading and fucked up cause if he signs a contract where he can't get out of it....then what if I takes 20 years 😅

@robertmorgan5467 10 ай бұрын

Absolutely great job

@yougeo 5 ай бұрын

I do like one aspect of this deal and that is it is not a foreclosure and the law in many states and district attorneys tend to look more closely at real estate deals that are done in foreclosure because they believe the seller is under more duress and the public likes to look at those deals as the buyer is scamming the person who's about to lose their house out of their house. Well of course that's not true they're not scamming them because they're going to lose the house anyway but it's a perception problem whereas a guy like this a DA really can't make a case that somebody's ripped this guy off because the guy is probably going to buy a bigger and better house so it's his choice to sell his current home in the situation that he is in and he's got a job and he's not under the same kind of financial duress he's merely under a time frame and deal duress. And it's really only a question of how he's going to get his money not whether he's going to lose it all.

@rashidkhalil4631 6 ай бұрын

I would have structured this deal a little differently to reduce risk to Seller and put myself as a buyer at risk with seller - 1/3 of equity in cash on closing - carry 2/3 of equity at 0% with without a monthly payment and a full loan due in 3 to 4 years - guaranteed written refinance at seven year or early Now I understand it is not gonna look as lucrative as space terms, but I believe the only way anybody will accept if they are in an extremely desperate situation or they do not know the commitment they are making

@MizZzChAvVvOzZz 3 ай бұрын

Great. Do you have the funds to cover that?

@scottfrazier-buildingonpurpose 8 ай бұрын

This was so enlightening! Thank you

@PaceMorby 8 ай бұрын

You are so welcome!

@quietkaoscorp 6 ай бұрын

I have a question what if you decided to not pay the mortgage wouldn’t that mess them up? House is still under their name how could you guarantee that? Or assure them ? Is there a specific way

@PaceMorby 6 ай бұрын

Yes that's why the seller needs to make sure the buyer can continue making payments (which they usually do since we're investors in it for the cash flow and other benefits)

@seanh.6268 6 ай бұрын

Wow it's the seller's problem to make sure the buyer is and stays solvent?

@quietkaoscorp 5 ай бұрын

@@seanh.6268 yea I think that’s wild but that’s just me

@b.reasonable7215 4 ай бұрын

What i love is that you're taking future profit from a bank by not refinancing at a higher rate instead of current equity from the seller

@MotiveNationAI 10 ай бұрын

Pace is The Best!

@PaceMorby 10 ай бұрын

Aw shucks.

@robreke 9 ай бұрын

Yes the payment you’re taking over is around $1400 a month, which you say gives you a $389 cash flow each month, but what about the monthly expense of taxes and insurance AND isn’t there a monthly payment on the money you have to borrow to pay them their $20,000 (or whatever amount they come up with ) down payment on the next house? Won’t these reduce or eliminate the positive monthly cash flow?

@PaceMorby 9 ай бұрын

I don't buy houses just for the cash flow though. Depreciation and other factors are why I buy real estate too.

@robreke 9 ай бұрын

@@PaceMorby I get that and those are very valid reasons, but did this end up being a breakeven or negative cash flow house? after the taxes, insurance and financing to pay the owner some equity?

@ClayThelin 9 ай бұрын

The mortgage is 1,411 and in that mortgage payment taxes and insurance are included

@dubya2010 5 ай бұрын

@@ClayThelinHow do you know that without knowing what the buyers original loan amount was for

@thatbusinesstrainer1414 10 ай бұрын

What is the answer to "what happens if you default on making payments on the loan that is still in my name?"

@FaheemAhmed-lc5vm 10 ай бұрын

Or the other way around the seller goes foreclosure?

@19nexx 9 ай бұрын

The seller would simply take back the property and all the has been paid to him(seller doesn’t lose here) he simply gets it back… now, pace is not setting himself up here to lose and that’s why he ll be able to serve that loan and keep everybody on safe.. my only question is, how does the seller gets the remainder of their equity of the property is Pcae is not able to refinance with a lower interest? And I’m Guessing Sell the property; that’s the only solution I see in that case ..

@19nexx 9 ай бұрын

@@FaheemAhmed-lc5vm seller won’t go foreclosure unless Pace don’t pay and serve the existing loan on that property

@stevegarza1643 9 ай бұрын

Is sub two mainly used to turn around and make it into a rental? Wouldn’t make sense to flip this if you still have to pay them back their equity? Is all this worth the $300 a month (net) is rent? Thanks!! Do you use equity in the home to pay them the down payment?

@PaceMorby 9 ай бұрын

Real estate is all about the long game. It might be $300/month now, but rent will increase every few years

@elizabethdimarco8167 4 ай бұрын

do you have any free courses on raising capital money??

@DanielWeisberg 10 ай бұрын

what happens if when you have to refi in 3-4 years you get a higher rate? What about the debt paydown in that time, is that yours?

@yougeo 5 ай бұрын

Pace are you buying these homes through llc's or something? And how does it affect your ability to pull money out in the future as alone against the equity you'll build up in 5 or 10 years if it's held in an LLC without having to pay tax on that loaned money?

@juancortes8617 10 ай бұрын

Where do you get the $ to pay commissions and closing costs? You pay out of pocket or do u use opm?

@MedicalShorts191 10 ай бұрын

he said he uses PMP

@alankalupa7585 10 ай бұрын

Your money, private money loan, private money partner on the deal.

@seanh.6268 6 ай бұрын

What return does an investor get for loaning the money for down payment? It would have to beat money market return of 5% by alot to take on that risk.

@jimeckert607 7 ай бұрын

Wow, this is amazing!

@PaceMorby 7 ай бұрын

Happy you're getting value from it!

@mab1552mb Ай бұрын

Great info . Thank you

@the.eagrone 4 ай бұрын

What happens if the buyer defaults on payments?

@sidneyrobinson2362 3 ай бұрын

What happens if interest rates don't go down?

@NaoShouaFamily 10 ай бұрын

I’m gonna try remember this whole verse of pace pitching sub to here..not gold nuggets but gold BARS

@PaceMorby 10 ай бұрын

Gold bars I like that!

@corypnw_ 6 ай бұрын

Wouldn’t we have to at least wait until the principle balance is less than ~80% of the appraised value to refinance? Who would finance a re-fi at 100% LTV?

@vasiliibaban2475 10 ай бұрын

Freakin LOVE THIS❤

@paulpapamarkos252 10 ай бұрын

Great stuff! But are really going to refi? The rate is never going to go to what the sellers rate is now or even lower. The below 4% rates are a thing if the past and most likely will never be seen again.

@MedicalShorts191 10 ай бұрын

he said he won’t until the interest rates go down. so unless the rates go down then no he isn’t.

@paulpapamarkos252 10 ай бұрын

@@MedicalShorts191 I get it but we all know rates are never going that low again. Even if they go below 4 why would you refi into a 30 yr when the sellers loan has less years on it from paying it down. I’ve done subto I tell seller that most likely I’m never refinancing it’s less deceiving to the seller and more transparent

@paulpapamarkos252 10 ай бұрын

@medicalShorts191 yes but why would you refi a loan with an already low interest and paid down years to a me 30 year low intrest. It’s deceiving to say to the seller you will refi when you know damn well that’s not happening