Everyone got paid accept you. Still monthly mortgage payments till find a tenant. Is that for a long run investment with practically no cash flow and also for first time buyers? Breakdown was great, but income generation is a bit unclear, only if it goes as rental. Thank you for the video :)
@@LucianaTobalThat's literally exactly what I was thinking. That why they dangel 25k to the seller. Most people don't think like investors. They just wanna get rid of it and move on. They don't want to deal with people in renting.
@@LucianaTobal I think he explained, rent is about 1800 and in 12months you get a break even( and he also said its a preference), you actually increase the cash flow, monthly!
After months of, actually more than a year, of research and trying to figure out how to not get a mortgage and buy in a creative way, I finally learned something substantial. Finally someone who is not screaming in your face and selling you something constantly, but truly teaching. It's obvious the honesty here. Finally! Thanks!
My group has some cash ready and we're looking to buy any properties willing to do sub to asap! Do you have any listings with seller's who would be willing to sub to!?
@@jakevegasrealestateshow me someone who is actually selling their house in this market, and whether they admit it or not, unless that property is free and clear, I'll show you a desperate person (and even that's no guarantee cuz property taxes)
Agreed! Been following a bunch of the Sub To Videos for the past month learning A LOT and this video really connected all the dots. Appreciate it Pace and your team!
You're just on here giving out this kind of information for free. Its realistic and shows you dont need 100s of thousands of dollars to get started. I have a deal where there was a death in the family and i started looking up different tactics and im thankful i found these videos. Thanks brutha.
I... a newbie of 5 months into being a Real Estate Investor (and am proud and joyful saying this), became more fascinated, confident, humble, and mission purposed that I was not wrong to say real estate is my passion and life. The more because of watching (and cannot stop) and following Pace. Thanks to Pace with his free training and no-crap approach such as in this YT video. I am in Pace's Elephant Challenge (I immediately got a Subto Student reached out to me when I inquired a Co-wholesaler) and a subscriber on Pace's UA-cam channel, but not yet in Gator Method and SubTo Student. Thank you so much.
Pace, I think you presented all that information in as bright a light as is possible. There is enough detail for someone to understand what you're doing and enough direction of where to look if someone wants to break it down further. It's a great overview with enough detail for some to grasp the concepts of all the moving parts. Your sense of humor in presenting info always makes it entertaining.
It keep saying error when I try to subscribe but now I’m getting the full break down thank you ❤ I’ve learned more in this video than any other video I’ve watched on UA-cam and he is funny too and serious at the same time I actually took notes this time
Very helpful that you were so detailed and even better for me is that you give so many real life scenarios….you are awesome! This is something I’ve wanted to do for a decade+ but just didn’t have all the details to actually get it done. But this is exactly what I knew I could do…listening to you is gonna finally make me jump. Yay!
Hey Pace. Just wanted to let you know that I appreciate all your time and effort. I do understand that this is not a necessity for you and that you're not trying to sell anything. And I appreciate you going over everything step by step in order to broader the horizons and shed light on the subject matter. I subscribe to your channel and did as you asked because I want you to know that I do appreciate it. I saw you with Grant cardone on a quick skit in regards to the subject to and obtaining a home taking over the current rate and mortgage. To give you a rundown of myself I'm a sales manager at a Volkswagen dealership. I purchased my first home about 2 years ago. I have a four family with three bedroom units. The house was in disarray but had an excellent foundation such as roof updated electrical and plumbing. So I did a 203K loan where all I really needed was $9,000 3% down and right now I'm living for free and cash flowing$1,300 a month. But not only that in fixing up the house getting new tenants and raising rents I'm currently in a position where I have about $100,000 in positive equity in my home. and I want to keep building and growing to provide a better future from my family. Thank you again for your time and effort. I could use a mentor. To help me build my portfolio. I would love to have a conversation if you have a half some time. I've been thinking about investing in land and putting up prefab apartments. What do you think about that. I want to leverage this hundred thousand dollars to obtain as many units as possible.
Awesome job pace, gearing up to joining the Gator Tribe very soon and looking forward to closing my first deal. I don’t think there’s any one on the planet who can teach Subject to, Creative Finance or as a matter of fact Real Estate better than you. Seriously Thank you for all that you do to help others change the trajectory of their future lives .
@@PaceMorbyboss I got a house in Yorktown Virginia 23693 that is similar problem to he had and willing to sell it that way with a 2.89 rate 112 Richard run Yorktown Virginia 23693
Great strategy if you have three things: -agent or student to find free deals -lots of money in the bank to assume mortgage payments in between rehab and rentals -private money lender with deep pockets who will lend at moments notice An exit strategy is great for a ten year plan but how do I make money over the next ten years? I can’t follow. Also novation and assignment is typically illegal on most mortgages these days. I don’t know how you smooth over these giant obstacles as if they’re no big deal. Works great on white boards only. Sorry to sound cynical but I’ve been in the real estate investor space for a long time and have attempted to employ many of these strategies to no avail. My biggest obstacle to over come has always been financing. I’ve got the creative part, just no banks or investors bite. Maybe it’s my area. Chicago metro Subscribing though and watching some content.
I was wondering the same thing about how you actually assign a mortgage as most are Not assignable, more info would on this topic would be greatly appreciated.
Just learning this method but I believe that the mortgage stays in the seller's name and the buyer goes on the deed only. Title is transferred via trust and payments are made in the seller's name. That's the gist of everything I've read so far. However you are correct in that deep reserves are needed for payment/rehabs/transactional costs to seller I am sure there is a sweet spot for properties with this method as the goal would be to find an end buyer quickly and putting as little into the property as you can for rehab purposes
This was the first of your video that I watched (out of many dozens) that you wrote down all the steps and numbers., instead of just saying them off the top of your head.
Dude, love this video. Thank you for breaking it down so well. I passed on a sub to deal as a seller last month and regret it. Sold it conventional and made less than I would with sub to. Lesson learned and never again
There’s way more liability in with a sub to and most lenders don’t even allow it. If they find out someone else is making the payments they can call for the whole loan due in 30 days and if you don’t have it they’ll begin foreclosure
The big catch with this strategy is how do you get over the fact that seller is still on the hook for the mortgage after the sale, and therefore he will need to turn over the responsibility of his credit future to the buyer’s hands. That’s a big deal and wish you addressed this. I would think only a desperate seller with terrible credit (hence not much to lose) or someone who is irresponsible financially will give up control over his credit.
You’re right. I see either you have a proven trusted buyer or out of desperation. That’s where it’s a dog eat dog world. Many people mismanage their lives and that’s an opportunity for you to get ahead. You taking advantage of the situation is likely to improve their situation if as the buyer you actually make the payments you saved them from their mistake and helped them profit. So a through case by case analysis is what’s needed
From a newbee perspective, and lets be honest I hardly know what the word perspective means, This video is very informative and the best part of it is, you can rewind it and watch it again, Thanks Mr. Morby Because you put this together so well, I still believe in myself and the future of my Real Estate carrier, Amen, and God bless you all, and Thanks for all your hard work!
My husband and I literally listened to this today on a road trip. We are making a subject to offer Monday. Still need to review the Executory Contract, and obtain all required docs as we’re not familiar with that aspect. We are so excited!!! Thank you for this detailed breakdown!!!
This is the first video I’ve watched of yours and I’ve learned more or get the bigger picture in the video’s time frame than I have of hours of bs hype from the so called well known “ x10” , used car salesman types. I do t need to be motivated, I need to be taught. Thank you for the clear and step by step descriptions. Can’t wait to learn more! Good video! Refreshing to have a professional who knows what they’re talking about and happy to explain immediately from the start. To other video UA-camrs…follow this guy’s lead. I don’t watch UA-cam to be intertwined or bs’d..I watch to hopefully learn something. Well done again 👍
Question. Not sure if you explained this before but How does sub to buyer get the mortgage interest payment at end of yr from lender for tax purposes if debt is still in seller’s name?
This is VERY helpful as a person starting from scratch. Never purchased a home and I want to learn everything I can to be the first homeowner in my family...
But this is just like the other 7 documents that we are not privy to. This is exactly like saying I will tell you all you need to know on how to make a Big Mac just like McDonald's and telling us add the special sauce but not given us the ingredients to make the sauce to put it on the burger 😂😂 @PaceMorby
Pace, you did an EXCELLENT job on explaining SubTo. I got my agent for 12 years to finally hear you and she was like WOOOOW why nobody explained that to me... I was like, I tried but you were closed minded...Anyhow, I love your channel and Yes I did subscribed... Thank you very much Auf Viertezen...
Great video!!! Question: how does the seller find a new place if their credit report says they're current on a mortgage (for a house they don't own)? Also, how does the seller minimize counterparty risk of us failing to pay? Thanks!
Probably proof of debt to income ratio. If the current debt of the mortgage is being covered, then any money that the seller is not spending on the current mortgage (because it is being covered by the renters) then they now have an excess amount of funds to cover a new mortgage.
I've heard him mention this in an interview, something about providing the new lender with a copy of the assignment or agreement that shows the assignee to pay the old note. Certainly would want to verify this with lenders to see what they would need to facilitate a new note if you had a sub2. A list of lenders and what they would require would be a powerful tool when talking to a motivated seller.
Great video! I would add it to one of the training modules if you don’t already have one like this in Subto. I also scooped up a copy of the book! Thank you so much for all the helpful content.
New to real estate but have to ask, why would an average investor do a deal like this? I get you can potentially sell in 10 years but what if you cant rent out the space? Also did you include taxes in the monthly payment? Feels like a money drain from the example. That's not even considering potentially large renovations/issues that can happen that 10k wont cover.
The private money lender gets his money back when? Are you finding they’re ok with getting monthly payments for the next few years? As opposed to only lending the money let’s say a year or less.
Monthly payments for the next few years?? You borrowed 55k from private money lender, and paying him back $366 a month going to take over 10 years to pay that back
Is there ever a situation where the lender catches wind of transfer of ownership and calls the loan "due on sale"? I've heard some horror stories of this with certain types of deals like this but wanted your experience/opinion. Great video very thorough!
We also asked this question and there has been no response yet. From what we’ve researched, no conventional lender would allow a property to be retitled if they have a lien on it. There’s counterparty risk involved since they dont know the creditworthiness of the new buyer.
@@synvestable8262 @1fullerjason I agree. Waiting on a response. From my understanding the seller is still liable. Although, I assume they would keep the down payment if buyer defaulted. Most concerning issue would be the due on sale clause from lender. I’m curious as to how you get around it. Would be nice if he walked us through a maneuver around these issues, if there is one that doesn’t impose risk.
@@1fullerjason thank you for that! Our overall view of this system is that in only works under specific circumstances. First is that it's under the assumption that housing prices rise forever, which they are not right now. The second is that it's not in a higher interest rate environment because lenders will not allow a title to be changed and will call the due on sale clause. This potentially could work only for VA, FHA loaned properties, but then again the seller's credit is on the hook and they bare all the risk.
Pace you’re crushing it! I’m not even into real estate but I’m gaining an interest in it from all you videos. Your video about setting up LLCs even helped me think a lot deeper before I start my completely unrelated to real estate business. Thanks Bro
I just subscribed to your channel. I am single and I work full time but I have financial struggles. I live in my moms house. I've spoke with a finance company and he called me left a message on my vm a great news you are pre approved . He quoted me presently it would be at 8% and pa😊yments alone would be roughly $700 . Basically they planned on me having the home in the event of there passing. I hate that thought . I've lived here my whole life. It's precious property to me. The thought of losing it from the family after my whole life of being part of it is heart crushing . So far I'm told we need to have a real estate agent to contract made between my mom and myself ...I am so confused
Pace you did a DAMN GOOD JOB! And youre sincere and knowledgable. Youre not hiding the golden nuggets which most UA-camrs are doing nowadays. Ill go watch your seller financing video now. Thanks again
Great content! Thank you so much Pace! I have a question, does the 2020 - 2022 refer to the year the homes were purchased or the year the list were obtained?
When you take over paying payments on someone’s loan I’m assuming they are still technically liable for that loan. Does this mess up their debt to income ratio making it so they won’t be able to buy another house? What do you do about his and how do you explain this to the seller?
This was my same exact question! Really would like to know the answer because eventually they may be in a better place years down the road and want to buy again
@@Diamond_789 if you follow his podcast he explains it. All they have to do is show proof that someone else is paying the mortgage (most will use a 3rd party mortgage servicing company) and then they won’t count that against your debt to income. Which makes sense because they count my income that I get from rental units without question.
Finally Pace ,Thank You Bro...I was trying to get a deal and educate owners and agents without education myself...I put my album aside to focus on making my Mom n Pops proud so i was giving up, so I think Im ready...I appretiate u Pace...
Pace, man. Your explanations are great. I've been looking into creative finace for a while. I even signed up with another mentor but he never broke it down like you have. Greatful for the chance to learn more and make life changing creative finance deals.
My brother in law just introduced me and my husband to this concept and Subto! 🎉 We are so excited to learn this! Thank you for the video breakdowns. 🎉
You went well beyond the quota of explaining the process at the most simplest way you could. Your video is very clear and straight to the point very understandable and informative. Please don't make any adjustments to your presentation. The way you produce your information is dead on.
I love your content...LOVE your videos...so informative...to the point. I learn more from just 1 of your videos than I've learned spending $1,000's of dollars on other courses! Love your energy and teaching style. Brilliant. Thank you for the amazing editing, too...makes your videos fun to watch and easier to learn.
Awesome video as always Pace! Just discovered you a few weeks ago and SO happy I did! What a great channel! Thank you!! I watched a bunch of your videos for a few days to absorb much education as I could. With my 20+ years of experience in Real Estate I have never done a Sub2 deal but WOW mind blown!!After watching your videos I got right to it calling leads I generated on my own looking for sellers offering sub2 and found one, talked to her and locked it up! Has great terms at 3.6% interest rate no balloon low entry fee and LOTS of equity seller is not asking for! I need a lender or partner on this asap please! Signing contract today! Got this deal with only making 10 calls!! Thank you Pace!! YOU GUYS ROCK!
Pace, I dont know how but I do understand this whole process...I have scheduled a meeting with your team this coming tuesday. This content is awesome, Im sure there is more to this but, I love the way u explain this.... this is my chance to get started in real estate and build wealth!
Been looking at this stuff for a while now I didn't know the title set up servicing. I also finally realize why someone would pay such a high entrance fee for getting a property like this. Initially I thought it was insane the entry price Ive been seeing. Thank you thank you. It's all starting to make sense.
I've been doing Subject to for 20 + years. Acquired around 22 to 23 properties this way. But you take it to a hole new level. Your content is Awesome. I just heard about you today. Im going to watch all your stuff. Just wanted to reach out and say thank you. Mitch
Explain please how you change the title/Deed and make payments to the bank when Bank clause states “full loan is due if ownership changes”. Thats my issue.
that initial phone call is what i keyed in the most. YOU HAVE to have a team in this industry. point blank period. there’s a lot i bring to the table; but mason can’t do it all. (lord knows i would if i could) but building a network of motivated people to seek, search, learn and contribute daily is where the success lives. PACE i watched you live once and you taught this 30 yr lad some lifetime wisdom 🙏🏽 thank you. you have honestly kick started a fire within me. im ready to put my name in the game. im mason again btw. my name will be known
I love the explanation, I love the presentation, I love the jokes this is absolutely amazing. Sometimes individuals needs to be flamed to learn new things.
Everyone got paid accept you. Still monthly mortgage payments till find a tenant. Is that for a long run investment with practically no cash flow and also for first time buyers? Breakdown was great, but income generation is a bit unclear, only if it goes as rental. Thank you for the video :)
Its a co-living property and it cashflows about $1500 per month NET in month.
@@PaceMorbyI ran across your youtube channel and I'm really interested. How do I contact you. Thanks
Why not rent it?
@@LucianaTobalThat's literally exactly what I was thinking. That why they dangel 25k to the seller. Most people don't think like investors. They just wanna get rid of it and move on. They don't want to deal with people in renting.
@@LucianaTobal I think he explained, rent is about 1800 and in 12months you get a break even( and he also said its a preference), you actually increase the cash flow, monthly!
After months of, actually more than a year, of research and trying to figure out how to not get a mortgage and buy in a creative way, I finally learned something substantial. Finally someone who is not screaming in your face and selling you something constantly, but truly teaching. It's obvious the honesty here. Finally! Thanks!
THANK YOU SO DANG MUCH!!!
I also find PACE very honest & sincere!
❤❤❤❤
Beautiful just Beautiful
I’m a UNICORN AGENT in UTAH! This is my JAM!
Unicorns are not real
@@torsten6777 They are asreal as dinosaurs, just extinct now
Awesome!
My group has some cash ready and we're looking to buy any properties willing to do sub to asap! Do you have any listings with seller's who would be willing to sub to!?
A distressed seller is more important than a distressed property.
It distress seller is high motivation!!!
Ok and how do you find a distressed seller
@@jakevegasrealestate pre foreclosures are the best way to find distressed sellers.
💯
@@jakevegasrealestateshow me someone who is actually selling their house in this market, and whether they admit it or not, unless that property is free and clear, I'll show you a desperate person (and even that's no guarantee cuz property taxes)
I think I learned more on this video than I have in the past 10 years
THANK YOU
Agreed! Been following a bunch of the Sub To Videos for the past month learning A LOT and this video really connected all the dots. Appreciate it Pace and your team!
Thank you! @@brucepomerleau7068
@@PaceMorbyinterested
You're just on here giving out this kind of information for free. Its realistic and shows you dont need 100s of thousands of dollars to get started. I have a deal where there was a death in the family and i started looking up different tactics and im thankful i found these videos. Thanks brutha.
Thank you Nick!
I... a newbie of 5 months into being a Real Estate Investor (and am proud and joyful saying this), became more fascinated, confident, humble, and mission purposed that I was not wrong to say real estate is my passion and life. The more because of watching (and cannot stop) and following Pace. Thanks to Pace with his free training and no-crap approach such as in this YT video. I am in Pace's Elephant Challenge (I immediately got a Subto Student reached out to me when I inquired a Co-wholesaler) and a subscriber on Pace's UA-cam channel, but not yet in Gator Method and SubTo Student. Thank you so much.
I am in the same boat, I truly believe being a REI is my purpose, I look forward to helping people!
I have a brokerage of 250 agents. Never payed attention to this before. This makes so much since I’m teaching my three sons to do this. Thank you
YESSSSSSSS
Maybe teach your 250 brokers as well.
As a Realtor, I am beginning to learn about creative financing to better serve myself and my clients. Thanks for the information, Pace. Subscribed!
Beth, you're being smart and willing to learn to stand out, that's awsome.
Hey Beth, what area of the country do you work in? Trying to build a network of smart, open minded agents. Please let me know!
Pace, I think you presented all that information in as bright a light as is possible. There is enough detail for someone to understand what you're doing and enough direction of where to look if someone wants to break it down further. It's a great overview with enough detail for some to grasp the concepts of all the moving parts. Your sense of humor in presenting info always makes it entertaining.
Thank you sir! Truly appreciate this comment!
It keep saying error when I try to subscribe but now I’m getting the full break down thank you ❤ I’ve learned more in this video than any other video I’ve watched on UA-cam and he is funny too and serious at the same time I actually took notes this time
Glad you're enjoying! Thanks for being here
Very helpful that you were so detailed and even better for me is that you give so many real life scenarios….you are awesome! This is something I’ve wanted to do for a decade+ but just didn’t have all the details to actually get it done. But this is exactly what I knew I could do…listening to you is gonna finally make me jump. Yay!
Got 3 pages of notes and lines all over the place … looks like schematics for building a home! Well… building wealth! Pace, you’re breakdown is 🔥
Yesss! We love to see it!
Hey Pace. Just wanted to let you know that I appreciate all your time and effort. I do understand that this is not a necessity for you and that you're not trying to sell anything. And I appreciate you going over everything step by step in order to broader the horizons and shed light on the subject matter. I subscribe to your channel and did as you asked because I want you to know that I do appreciate it. I saw you with Grant cardone on a quick skit in regards to the subject to and obtaining a home taking over the current rate and mortgage. To give you a rundown of myself I'm a sales manager at a Volkswagen dealership. I purchased my first home about 2 years ago. I have a four family with three bedroom units. The house was in disarray but had an excellent foundation such as roof updated electrical and plumbing. So I did a 203K loan where all I really needed was $9,000 3% down and right now I'm living for free and cash flowing$1,300 a month. But not only that in fixing up the house getting new tenants and raising rents I'm currently in a position where I have about $100,000 in positive equity in my home. and I want to keep building and growing to provide a better future from my family. Thank you again for your time and effort. I could use a mentor. To help me build my portfolio. I would love to have a conversation if you have a half some time. I've been thinking about investing in land and putting up prefab apartments. What do you think about that. I want to leverage this hundred thousand dollars to obtain as many units as possible.
WOW thank you so freaking much!
Subject 2 for dummies...you are explaining very well.
Awesome job pace, gearing up to joining the Gator Tribe very soon and looking forward to closing my first deal. I don’t think there’s any one on the planet who can teach Subject to, Creative Finance or as a matter of fact Real Estate better than you. Seriously
Thank you for all that you do to help others change the trajectory of their future lives .
THANKS MAN!
@@PaceMorbyhow do I become a student ? I’m very interested in learning and growing I would love the opportunity thanks.
@@PaceMorbyboss I got a house in Yorktown Virginia 23693 that is similar problem to he had and willing to sell it that way with a 2.89 rate 112 Richard run Yorktown Virginia 23693
@@blewcheese5386How’s the journey? I’m on the same path
THANK YOU PACE FOR SETTING THE STANDARD FOR CREATIVE FINANCING TECHNIQUES ❤
You explained it so well & really made it simple enough for any serious person to understand. Thank you so much.
Thanks!
Great strategy if you have three things:
-agent or student to find free deals
-lots of money in the bank to assume mortgage payments in between rehab and rentals
-private money lender with deep pockets who will lend at moments notice
An exit strategy is great for a ten year plan but how do I make money over the next ten years?
I can’t follow. Also novation and assignment is typically illegal on most mortgages these days. I don’t know how you smooth over these giant obstacles as if they’re no big deal. Works great on white boards only.
Sorry to sound cynical but I’ve been in the real estate investor space for a long time and have attempted to employ many of these strategies to no avail. My biggest obstacle to over come has always been financing. I’ve got the creative part, just no banks or investors bite. Maybe it’s my area.
Chicago metro
Subscribing though and watching some content.
I was wondering the same thing about how you actually assign a mortgage as most are Not assignable, more info would on this topic would be greatly appreciated.
Just learning this method but I believe that the mortgage stays in the seller's name and the buyer goes on the deed only. Title is transferred via trust and payments are made in the seller's name. That's the gist of everything I've read so far.
However you are correct in that deep reserves are needed for payment/rehabs/transactional costs to seller
I am sure there is a sweet spot for properties with this method as the goal would be to find an end buyer quickly and putting as little into the property as you can for rehab purposes
This was the first of your video that I watched (out of many dozens) that you wrote down all the steps and numbers., instead of just saying them off the top of your head.
Dude, love this video. Thank you for breaking it down so well. I passed on a sub to deal as a seller last month and regret it. Sold it conventional and made less than I would with sub to. Lesson learned and never again
Can you explain how you made less selling conventional? Thank you
There’s way more liability in with a sub to and most lenders don’t even allow it. If they find out someone else is making the payments they can call for the whole loan due in 30 days and if you don’t have it they’ll begin foreclosure
Yes subscription is on the way!
Pace always breaks down deals in such a way, that it motivates one to take massive action!!
This was the best explanation of sub to EVER! Pace, you are the man!
The big catch with this strategy is how do you get over the fact that seller is still on the hook for the mortgage after the sale, and therefore he will need to turn over the responsibility of his credit future to the buyer’s hands. That’s a big deal and wish you addressed this. I would think only a desperate seller with terrible credit (hence not much to lose) or someone who is irresponsible financially will give up control over his credit.
You’re right. I see either you have a proven trusted buyer or out of desperation. That’s where it’s a dog eat dog world. Many people mismanage their lives and that’s an opportunity for you to get ahead. You taking advantage of the situation is likely to improve their situation if as the buyer you actually make the payments you saved them from their mistake and helped them profit. So a through case by case analysis is what’s needed
😊
pace talks about this. IF the seller wants a new house he can call the lender and have this mortgage removed from their debt to income ration.
I see the biggest issue with cash flow basically covering nothing and if you need to exit you should find a group home or start an AIRBNB.
Right. A newbie with no track record might default and then the seller is screwed.
From a newbee perspective, and lets be honest I hardly know what the word perspective means, This video is very informative and the best part of it is, you can rewind it and watch it again, Thanks Mr. Morby Because you put this together so well, I still believe in myself and the future of my Real Estate carrier, Amen, and God bless you all, and Thanks for all your hard work!
Thanks for breaking it down step by step! Fantastic job!
The pace was perfect
My husband and I literally listened to this today on a road trip. We are making a subject to offer Monday. Still need to review the Executory Contract, and obtain all required docs as we’re not familiar with that aspect. We are so excited!!! Thank you for this detailed breakdown!!!
I know Pace is the best!! Good luck to u both on this new endeavor!!
Did you get an attorney to draw up the documentation?
Damn good job 👍
Did you end up doing it? did it work?
Love the slow breakdown.
Quick question - How are you getting 55k over value of the property as a second at 8%? Doesn't seem to have any collateral for this loan.
This is the first video I’ve watched of yours and I’ve learned more or get the bigger picture in the video’s time frame than I have of hours of bs hype from the so called well known “ x10” , used car salesman types. I do t need to be motivated, I need to be taught. Thank you for the clear and step by step descriptions. Can’t wait to learn more! Good video! Refreshing to have a professional who knows what they’re talking about and happy to explain immediately from the start. To other video UA-camrs…follow this guy’s lead. I don’t watch UA-cam to be intertwined or bs’d..I watch to hopefully learn something. Well done again 👍
Question. Not sure if you explained this before but How does sub to buyer get the mortgage interest payment at end of yr from lender for tax purposes if debt is still in seller’s name?
😂 no replies to this one
You (buyer) log in to their account when you first buy the house and change original owner’s mailing address to yours. Really easy.
Thanks!
Thank you Pace for taking the time to break things out so that newbies will understand! Keep up the good work! Dam good Job!
YOU ARE SO WELCOME!
This is VERY helpful as a person starting from scratch. Never purchased a home and I want to learn everything I can to be the first homeowner in my family...
Thank you for taking the time to make these videos. You did a damn good job!
Pace you are a great teacher , the details are on point
Excellent video. Question. Are there clauses to protect you from a seller who files bankruptcy?
Yes there sure are!!!
But this is just like the other 7 documents that we are not privy to. This is exactly like saying I will tell you all you need to know on how to make a Big Mac just like McDonald's and telling us add the special sauce but not given us the ingredients to make the sauce to put it on the burger 😂😂 @PaceMorby
Pace, you did an EXCELLENT job on explaining SubTo. I got my agent for 12 years to finally hear you and she was like WOOOOW why nobody explained that to me... I was like, I tried but you were closed minded...Anyhow, I love your channel and Yes I did subscribed... Thank you very much Auf Viertezen...
Great video!!!
Question: how does the seller find a new place if their credit report says they're current on a mortgage (for a house they don't own)?
Also, how does the seller minimize counterparty risk of us failing to pay?
Thanks!
Probably proof of debt to income ratio. If the current debt of the mortgage is being covered, then any money that the seller is not spending on the current mortgage (because it is being covered by the renters) then they now have an excess amount of funds to cover a new mortgage.
I've heard him mention this in an interview, something about providing the new lender with a copy of the assignment or agreement that shows the assignee to pay the old note. Certainly would want to verify this with lenders to see what they would need to facilitate a new note if you had a sub2. A list of lenders and what they would require would be a powerful tool when talking to a motivated seller.
Pace You did a great job!
Great video! I would add it to one of the training modules if you don’t already have one like this in Subto. I also scooped up a copy of the book! Thank you so much for all the helpful content.
This video can not be any clearer… I totally get it. @Pace I love how you explain real estate in plain language!
I do it for the people who are like me and need it explained thoroughly ✌🏼
New to real estate but have to ask, why would an average investor do a deal like this? I get you can potentially sell in 10 years but what if you cant rent out the space? Also did you include taxes in the monthly payment? Feels like a money drain from the example. That's not even considering potentially large renovations/issues that can happen that 10k wont cover.
Beautiful presentation Pace.
The private money lender gets his money back when? Are you finding they’re ok with getting monthly payments for the next few years? As opposed to only lending the money let’s say a year or less.
Pace’s philosophy is LOAN to OWN that’s what he mainly teaches. Would recommend you to check out one of his videos where he talks about PM.
Monthly payments for the next few years?? You borrowed 55k from private money lender, and paying him back $366 a month going to take over 10 years to pay that back
@@ckkendrick7861 Right! & Why would a lender lend money on a no equity property?
@@pethacks3653 I know. Seems hard, but I don't think that sub to is easy to begin with. To me sub to is the hail marry to sell a home
Love this master class in real estate investing! Love seeing the full picture!
Is there ever a situation where the lender catches wind of transfer of ownership and calls the loan "due on sale"? I've heard some horror stories of this with certain types of deals like this but wanted your experience/opinion. Great video very thorough!
Asked the same question, would interested to know
We also asked this question and there has been no response yet. From what we’ve researched, no conventional lender would allow a property to be retitled if they have a lien on it. There’s counterparty risk involved since they dont know the creditworthiness of the new buyer.
@@synvestable8262 @1fullerjason I agree. Waiting on a response. From my understanding the seller is still liable. Although, I assume they would keep the down payment if buyer defaulted. Most concerning issue would be the due on sale clause from lender. I’m curious as to how you get around it. Would be nice if he walked us through a maneuver around these issues, if there is one that doesn’t impose risk.
He responded to my other comment and said, “it has happened to us a couple times and there is a solution IF it happens” but didn’t give any details
@@1fullerjason thank you for that! Our overall view of this system is that in only works under specific circumstances. First is that it's under the assumption that housing prices rise forever, which they are not right now. The second is that it's not in a higher interest rate environment because lenders will not allow a title to be changed and will call the due on sale clause. This potentially could work only for VA, FHA loaned properties, but then again the seller's credit is on the hook and they bare all the risk.
I'm starting to understand this and seeing the light! Thank you for this video Pace!
Pace you’re crushing it! I’m not even into real estate but I’m gaining an interest in it from all you videos. Your video about setting up LLCs even helped me think a lot deeper before I start my completely unrelated to real estate business. Thanks Bro
I just subscribed to your channel. I am single and I work full time but I have financial struggles. I live in my moms house. I've spoke with a finance company and he called me left a message on my vm a great news you are pre approved . He quoted me presently it would be at 8% and pa😊yments alone would be roughly $700 . Basically they planned on me having the home in the event of there passing. I hate that thought . I've lived here my whole life. It's precious property to me. The thought of losing it from the family after my whole life of being part of it is heart crushing . So far I'm told we need to have a real estate agent to contract made between my mom and myself ...I am so confused
You are killing it Pace!! Thank you for the content. Making it easier to understand for the common man or woman.
Pace you did a DAMN GOOD JOB! And youre sincere and knowledgable. Youre not hiding the golden nuggets which most UA-camrs are doing nowadays. Ill go watch your seller financing video now. Thanks again
Great content! Thank you so much Pace! I have a question, does the 2020 - 2022 refer to the year the homes were purchased or the year the list were obtained?
What a Discovery...pace your the star...
When you take over paying payments on someone’s loan I’m assuming they are still technically liable for that loan. Does this mess up their debt to income ratio making it so they won’t be able to buy another house? What do you do about his and how do you explain this to the seller?
Also what if the wholesaler stops making payments. As the seller I'm still on the mortgage but no longer on the deed. That would be a scary situation.
This was my same exact question! Really would like to know the answer because eventually they may be in a better place years down the road and want to buy again
@@Diamond_789 if you follow his podcast he explains it. All they have to do is show proof that someone else is paying the mortgage (most will use a 3rd party mortgage servicing company) and then they won’t count that against your debt to income. Which makes sense because they count my income that I get from rental units without question.
Finally Pace ,Thank You Bro...I was trying to get a deal and educate owners and agents without education myself...I put my album aside to focus on making my Mom n Pops proud so i was giving up, so I think Im ready...I appretiate u Pace...
Pace, man. Your explanations are great. I've been looking into creative finace for a while. I even signed up with another mentor but he never broke it down like you have. Greatful for the chance to learn more and make life changing creative finance deals.
My brother in law just introduced me and my husband to this concept and Subto! 🎉 We are so excited to learn this! Thank you for the video breakdowns. 🎉
Good luck!! If you have any questions, hit up the free FB paceapproves.com/freefb-ytc
What's up Pace. I found Your UA-cam content about a month ago. U are truly a remarkable man, and I'm grateful to be able to learn from You!
This video is way too long and I wish you would have gone into more detail!;)
Lol
Excellent breakdown . If I missed a point, easy to stop, rewind a bit and review, then go on. I'm a newbie and it was VERY helpful.
This is great, Thank you! I love the breakdown you did and I finally feel like I understand this so much better!
Excellent Pace!
OMG this was so good. Thanks for breaking this down in such detail. This was a masterclass!
You went well beyond the quota of explaining the process at the most simplest way you could. Your video is very clear and straight to the point very understandable and informative. Please don't make any adjustments to your presentation. The way you produce your information is dead on.
I love your content...LOVE your videos...so informative...to the point. I learn more from just 1 of your videos than I've learned spending $1,000's of dollars on other courses! Love your energy and teaching style. Brilliant. Thank you for the amazing editing, too...makes your videos fun to watch and easier to learn.
You are an incredible teacher! Made it so simple and easy to understand.
Thank you! Glad you enjoyed the video
Awesome video as always Pace! Just discovered you a few weeks ago and SO happy I did! What a great channel! Thank you!! I watched a bunch of your videos for a few days to absorb much education as I could. With my 20+ years of experience in Real Estate I have never done a Sub2 deal but WOW mind blown!!After watching your videos I got right to it calling leads I generated on my own looking for sellers offering sub2 and found one, talked to her and locked it up! Has great terms at 3.6% interest rate no balloon low entry fee and LOTS of equity seller is not asking for! I need a lender or partner on this asap please! Signing contract today! Got this deal with only making 10 calls!! Thank you Pace!! YOU GUYS ROCK!
That's so awesome! Congrats! Find PMLs in the free Facebook: paceapproves.com/freefb-ytc
Pace, I dont know how but I do understand this whole process...I have scheduled a meeting with your team this coming tuesday. This content is awesome, Im sure there is more to this but, I love the way u explain this.... this is my chance to get started in real estate and build wealth!
Been looking at this stuff for a while now I didn't know the title set up servicing. I also finally realize why someone would pay such a high entrance fee for getting a property like this. Initially I thought it was insane the entry price Ive been seeing. Thank you thank you. It's all starting to make sense.
Excellent break down!!! People should watch it at least twice maybe three times to understand and let it sink in!!
Exactly, this is the way to do it!
Made it clearer for sure. Thanks Pace!
Very helpful! Thanks for the step by step explanation!
I appreciate your time and expertise good Sir.
Great work....and seasoned with Humour!....
I came over from your joint work with Jerry Norton...ton of excitement and value..
Love Jerry! Thanks for being here!
your stuff is sick love it please continue i liked and subscribed
I've been doing Subject to for 20 + years. Acquired around 22 to 23 properties this way. But you take it to a hole new level. Your content is Awesome. I just heard about you today. Im going to watch all your stuff. Just wanted to reach out and say thank you.
Mitch
Welcome Mitch! Glad you enjoyed
Explain please how you change the title/Deed and make payments to the bank when Bank clause states “full loan is due if ownership changes”. Thats my issue.
Greetings Pace, does this work in Australia? Gratitude bro.
that initial phone call is what i keyed in the most. YOU HAVE to have a team in this industry. point blank period. there’s a lot i bring to the table; but mason can’t do it all. (lord knows i would if i could) but building a network of motivated people to seek, search, learn and contribute daily is where the success lives. PACE i watched you live once and you taught this 30 yr lad some lifetime wisdom 🙏🏽 thank you. you have honestly kick started a fire within me. im ready to put my name in the game. im mason again btw. my name will be known
That's the spirit!
Just started following you after watching Ken Channel I'm liking what I'm seeing
I love the explanation, I love the presentation, I love the jokes this is absolutely amazing. Sometimes individuals needs to be flamed to learn new things.
Well said!
I subscribe, thank you for the information ❤
Awesome! Thank you!
You did a damn good job.
Thanks man
You did awesome pace!!! Thank you for that break down. Tomorrow I have a call with Janelle...I'm excited to start
Thanks Pace for all your teaching - I am learning but still not clear how to succeed/start. Will continue watching
You did a damned good job, Pace!!!
Glad you found it helpful
great job!!!!!
Yes. Videos long but I’m learning so much and rewatching it so I can relearn it.
😮amzing !!!you did super good - Thank you for sharing
Thanks David
Love the videos you make! Pace has a whiteboard on every wall in his house.
Yo, U did a damn good JOB breaking down this Sub2
Love that you're breaking it down like this that's what I needed thank you so much
Glad it was helpful!
Great Strategy. Thank you. I'm looking into a couple now.
I very much appreciate the slow pace and breakdown. Thank you!!
YOU DID A DAMN GOOD JOB PACE!!! 👍
I'm loving you explanations I have beeeen searching for simplicity
Pace, this video is so beautiful! Thanks for the info, so helpful
Thank you!
dude, you did a great job! I’m not even in this industry, but I completely learned this from scratch from you, and completely understand it