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

3 ай бұрын

Thanks man, really appreciate you!

@christianstill.6654

Ай бұрын

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

@thenurseceo

28 күн бұрын

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

@melodeelucido1446

28 күн 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.

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

2 ай бұрын

Thanks!

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

🎯 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

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

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

15 күн бұрын

Good luck man!

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

3 ай бұрын

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

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

3 ай бұрын

I am the best choice!

Professional, empathetic, strategic, educational. Gold ✨️

@PaceMorby

Ай бұрын

Thank you!

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.

Thanks Pace and community, learning a lot. Appreciate you

@PaceMorby

3 ай бұрын

Glad to hear it! Thanks for being here!

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

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

@neckhammockothermusthaves7476

3 ай бұрын

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

@PaceMorby

3 ай бұрын

Glad you enjoyed!

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

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!

1:29 Thank you Pace Great call

@PaceMorby

3 ай бұрын

Glad you enjoyed!

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

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

@PaceMorby

3 ай бұрын

My pleasure!

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.

@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

3 ай бұрын

Exactly!

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

@PaceMorby

3 ай бұрын

Thanks glad you enjoyed it

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

Absolutely great job

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

3 ай бұрын

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

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.

Very smooth closer! bravo! 👏

@Mike_the_negoatiator

2 ай бұрын

Very smooth lol 🔥

@vividhaiku

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.

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

@PaceMorby

3 ай бұрын

Thank you glad you enjoyed it

pace, you are awesome, putting all the pieces together

@PaceMorby

Ай бұрын

I appreciate that!

This is gold. Thank you!

@PaceMorby

Ай бұрын

Glad you enjoyed it!

Genius as always!

Wow this was amazing!!!

Needed this thanks pace

@PaceMorby

Ай бұрын

Happy to help

This was so enlightening! Thank you

@PaceMorby

Ай бұрын

You are so welcome!

What a beast! Great job Pace!

@PaceMorby

3 ай бұрын

Appreciate it!

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

3 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

3 ай бұрын

I have the same exact question

@rafaeloropeza7544

3 ай бұрын

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

@rafaeloropeza7544

3 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

3 ай бұрын

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

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

3 ай бұрын

That is awesome!

Freakin LOVE THIS❤

Wow, this is amazing!

@PaceMorby

Ай бұрын

Happy you're getting value from it!

Brilliant!

Another Awesome video!! ❤🔥🔥

@PaceMorby

3 ай бұрын

Thanks 🔥

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 ?

Awesome man! Thanks Pace

@PaceMorby

Ай бұрын

Any time!

I called your program and asked for help and your guys asks for 9k? Wow!

amazing thank u

Great content Pace. As usual. How can i reach out to you about a AirBNB opportunity in Greenville, NC? Waking distance from the ECU stadium.

Pace is The Best!

@PaceMorby

3 ай бұрын

Aw shucks.

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

@PaceMorby

3 ай бұрын

Gold bars I like that!

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

3 ай бұрын

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

Amazing… Pace is cool hand Luke on the phone ☎️

@PaceMorby

3 ай бұрын

Wow thank you haha

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

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?

Nuggets 🙌

@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

Ай бұрын

He’s using a deed transfer

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?

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?

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

3 ай бұрын

Boom. Mic drop.

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

2 ай бұрын

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

Pace an Ace!

How would he pay the DP for the new house he wants to buy or needs to buy if you pay him his equity in 24m?

Shoutout to the agent who was willing to put their pride to the side and allow Pace to explain how things work. Not to many agent are willing to do that.

@PaceMorby

3 ай бұрын

The few are great though!

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

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.

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?

@loyasrentals

2 ай бұрын

Was wondering this too

@OneLeggedTarantula

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.

Any listing agent worth their salt should know the settlement numbers for their seller. The payoff amount to bank should be readily available on that call.

@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

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.

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

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

🔥🔥🔥

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?

Super 😊 awesome 😎 Video ❤😊❤

@PaceMorby

3 ай бұрын

Glad you liked it!

I’d like to know how much the agent got paid and how much the family ended up needing to get into the next house and where that money came from. I understand it can come from a PMP but if the PMP is waiting 5 years to get paid back it seems they would be hard to find but maybe not. Thanks

@PaceMorby

3 ай бұрын

Stay tuned for when the next couple of videos in this series drops!

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?

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

3 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

3 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

2 ай бұрын

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

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

@PaceMorby

3 ай бұрын

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

@lolfemfaillol3933

Ай бұрын

Lose your up front investment

@seanh.6268

5 күн бұрын

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

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

@MedicalShorts191

3 ай бұрын

he said he uses PMP

@alankalupa7585

3 ай бұрын

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

@seanh.6268

5 күн 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.

Wow😊

How do you overcome the issue with the loan officer?

@Aaron-wu9ob

3 ай бұрын

the new loan officer just needs to see evidence the old loan is being serviced by somebody else. Pace provides whatever evidence they want. Its not hard to do since Pace and his new tenant are the ones servicing the old loan that the new loan officer is asking about

One question though, how do you get around if an owner can't get another home with an existing loan on their credit?

@denbleygv9238

Ай бұрын

They state in some document that the first mortgage is being serviced by Pace's company and not by the owner who sold it. So that frees up the owners Debt to income stats.

Question, “newby here,” what if the original lender does a deed check and sees that the deed was transferred and asks the original seller to pay the loan in full. Or what if the seller goes bankrupt Is this where the contractual Documents come in handy?

@icaangelmassage

Ай бұрын

"Newby here" You as the buyer lose your investment! This is what Google told me.

@steppaboss

Ай бұрын

​@@icaangelmassageWrong Not true

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

10 күн 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

5 күн бұрын

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

So if the buyer in a subject-to arrangement defaults on payments, Robbie's left holding the bag and his credit becomes compromised? Seems very risky for the seller...am I missing something?

@PaceMorby

3 ай бұрын

That's why the seller has to make sure the buyer can cash flow/continue making payments

Where is the video where you show us how to get the DTI issue fixed?

@PaceMorby

Ай бұрын

Check out the next video in this playlist kzread.info/head/PL2Y6uEs9DYr2XAt58W2KTJG__p8Fe7htL&feature=shared

How do the sellers buy another house if they still have a mortgage on this one?

@PaceMorby

2 ай бұрын

Check out this video and the other parts of the series: kzread.info/dash/bejne/dWlrts2caK-wpbw.htmlfeature=shared

Property taxes and Insurance?

Who is this realtor? I’m doing business in the Raleigh/Durham area and would love to send her some business

Doesn’t the seller need his equity in cash as a down payment for his new loan? Without that cash, his mortgage payment will be higher and then they’ll add PMI on top of that.

@PaceMorby

3 ай бұрын

He did not need it.

@vividhaiku

Ай бұрын

Very rare situation

@lolfemfaillol3933

Ай бұрын

​@vividhaiku very common situation

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

@FaheemAhmed-lc5vm

3 ай бұрын

Or the other way around the seller goes foreclosure?

@19nexx

2 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

2 ай бұрын

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

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

3 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

3 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

3 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

Even if interest rate falls to 2.5% you likely can't refinance because you will need it to be it on your credit and a primary home. And u can do that a few times not 100

So how you avoid pay off the bank when the bank says " If ownership of property changes loan is due".? How you can change deed and make payments ,when bank says loan is due.

@videomax702

3 ай бұрын

The banks don’t actually care as long as the loan stays current.

@jabs_carter84

3 ай бұрын

Look up Due on sales clause by pace. He goes over this question in specific

@JohnSmith-ez9dx

3 ай бұрын

@@videomax702 The bank has a clause that load is due immediately if ownership changes.And since now the rates are 6%+ and ppl have 3% they care. So how do we avoid that thing is my question.

@PaceMorby

3 ай бұрын

I have a whole playlist on this. Here's one video kzread.info/dash/bejne/hI6krbiqobjAgLQ.html

@Aaron-wu9ob

3 ай бұрын

@@JohnSmith-ez9dx Pace has had 6 out of 6k "due on sale" clauses called on sub-tos. .999% of the time the lender just wants their money and doesn't want to file a $12k to $30k foreclosure with the court. In the highly unlikely event that you get a really dumb bank... Pace has a story about the owner of a bank that recommended he deed it back to the seller and restructure the deal as a lease with a balloon payment to buy at the end of the term that was equivalent to whatever was left on the mortgage minus the lease payments already paid. In my opinion that's a crappy way to do it since Pace won't get the depreciation. But its acceptable I suppose as long as its not more than 1 out of every 1000. Price of doing business

What do you tell his new lender that will allow him to get a new loan without 20% down? How are you going to raise rent that much?

😂😂😂 that dumb and dumber sniper had me 💀 😂

@PaceMorby

2 ай бұрын

🤣

Would love to know the lender .

@PaceMorby

2 ай бұрын

Follow me and DM me the word DONE on Instagram and I'll send a PDF of my private money contacts!

🎈 🎈 ❤

I’m tracking everything here so far however right now in 2024 it’s doubtful that the rates are going to drop below the 3.74 that the sellers have. So when you refinance, you’re not refinancing to a lower rate, you will refinance to our higher rate. Are you OK with that? And if so, why?

@vividhaiku

Ай бұрын

They won't

@steppaboss

Ай бұрын

The question is? Are people not buying houses today with over 7% interest rate🤔 If rates not falling but my rents cover the refinance rates what is the problem? I can also sell the property.

Pace said on the phone most seller get their equity in 2~4yrs, $120k in this example. If you dont refinance, wheres the $120k to pay Robert comng from?

@PaceMorby

3 ай бұрын

If rates haven't gone up when you're refinancing, you could sell the house

@user-nl9ny3zz6t

4 күн бұрын

What happens if they subto buyer files bankruptcy before paying the seller the equity they have in the house? Is there a form done between the subto buyer and seller where the purchased house goes back to the mortgage holder if there is a default by the person paying the mortgage? Lots of faith by the seller that the subtio folks do what is promised for possibly a long period of time.

How would you deal with a seller has no loan & 100%equity?

@rmw090

3 ай бұрын

That would be an owner finance deal, and the seller would be the bank and you would just pay them monthly for the property on whatever payment you decide on

@PaceMorby

3 ай бұрын

Ive done a lot of videos about that! Its seller finance.

I need a video explaining how to explain to a lender how the process works so I can speak to buyers lenders about it! Can anyone help me find a video about the back end of that process?

@PaceMorby

2 ай бұрын

The next video in this series is my conversation with the lender kzread.info/dash/bejne/dWlrts2caK-wpbw.htmlfeature=shared

@ClayThelin

2 ай бұрын

@@PaceMorby the rate at which this reply came in is actually crazy and very appreciated! Thank you! Top tier!

If you are not paying the equity upfront to the seller his next house payment will be higher because you only giving him the minimum down payment. And he will receive the equity whenever the rates go down which is unknown. So another wards you are not helping the seller you are taking advantage of his situation. He will be paying a higher monthly payment on his new house and wait for his equity for a long time.

@steppaboss

Ай бұрын

IF a seller agrees to everything on a contract,where are you taking advantage of them🤔

Im confused 😕. Why give away all the equity? Besides the cash flow what’s the benefit? $300 a month is not worth it.

@Aaron-wu9ob

3 ай бұрын

The guy had to move and couldn't rent it out because it would stay on his DTI preventing him from getting a new place. Maybe the guy got a better job elsewhere. Or maybe he got laid off and got a new job across the country. Who knows. People need to move all the time. For all kinds of reasons.

@lolfemfaillol3933

Ай бұрын

It will still affect dti

@steppaboss

Ай бұрын

What is there to be confused about? Relisten to the podcast and you will get your answer. Did you have $300 before that house🤔 Hiw about 30 houses at $300 each or 100 houses at $300 each🤔