Subto & Seller Finance Deal Walkthrough | 2.5% Interest Rate
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- Опубликовано: 24 июл 2024
- Join Pace Morby as he tours a home in Kalispell, Montana that he bought part subject to, part seller finance (with a 2.5% interest rate). You’ll get answers on why an agent would do creative finance, why a seller would sell their house using creative finance, and how much each party made. Pace tours the property with SubTo student, Landon Moore, and the agent on this deal, Chelsea O’Shea. He also explains why having long-term relationships with a creative finance partner can lead to many deals in the long run.
See the FULL settlement statement for this deal below!
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Pace & Landon's video on "How To Recognize Subject To Opportunities and PROFIT": • How To Recognize Subje...
This deal's settlement document:
resources.pacejmorby.com/sett...
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Chapters:
0:00 - Intro
1:26 - Deal details
4:57 - Why buying single-family homes is better than buying a business
5:31 - Talking with the agent
10:27 - Seller objections
12:48 - Why would the seller sell their house?
14:00 - How much the agent got paid
14:40 - Exit strategy?
17:43 - How can agents find more deals?
19:41 - House walkthrough
24:21 - Buyers’ objections
24:39 - What the seller had to do
26:22 - What other deals are happening?
27:45 - Get the settlement statement for this deal!
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⚠️ #CreativeFinance #Investing #Wealth #RealEstateInvesting #Wholesaling #SubjectTo #HowToGetStartedInRealEstate ⚠️
🚧🚧🚧 DISCLAIMER 🚧🚧🚧
❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a RUclips video for entertainment purposes ONLY ❎
Bought a hot tub and got a house, I love it Landon✌🏻
Great job huh! He's a badass!
Yea
Thanks for the video!
Good job guys ✌🏾💪🏾🎯❤️
The property itself seems like a great find, especially with no personal cash involved. Big shoutout to your private money lender, Debbie, for making it happen! 😄
What an awesome new project!
Thank you Marc!
Please ask whatever questions you might have below so we can better serve up great content in the future!
Hello
1) What are the terms with the private money lender
2) Willl you hold long-term with the future perception of the home value going from $500k to $700k
3) What is the potential cash on cash returns
So it looks like this is a midterm rental now, and is cash-flowing. What work was put into the house, how long did it take to complete, and what was the renovation cost? I am curious what the revenue is as a mid-term rental as well.
According to the settlement statement, the property is part of a HOA ---
Pace got the property at $500k
The potential “rental amounts “ mentioned in the LIVE video was up to $3,000……
I am guessing this home is for tax purposes via depreciation & potential long term appreciation, whereas the acquisition & potential rent roll is below the 1% rule
@@robertruschak7083 I'd say that's probably a fair analysis. I can't see this one being a property any newer investor could take on with all of the unknowns that surround this deal. Definitely seems like one that a seasoned investor would have to scoop up and be able to play the long game with.
Sir !
Question: I am immigrant, does not have much money to buy a house, If I use "Subject to" strategy to buy home for $ 300 K with remaining unpaid principal of $ 200 K , for what part of mortgage I will be responsible ? For $ 300 K or for $ 200 K in this case ? Simply to say: how much I have to pay to mortgage bank if decide to sell home in few month , $ 300 000 or $ 200 000 ?
Great
Hey Pace, do you have students based in the UK? Love your work but not sure how to implement your strategies over here
Thanks for the content Pace! Was wondering....which part of the deal was the "sub-to" portion? I understand the seller finance terms but was not certain of where "sub-to" played a part in the deal? Thanks!
The seller had a mortgage of $200,000. That portion was purchased subto
@@MooreDeals gotcha, thanks man! Keep up the great work!
This is not a good deal. Just because you get favorable terms does not make the deal worth while. The numbers make no sense, it will take a decade just to break even if you’re lucky…
Why do you feel it’s not a good deal? I think there are a few things you are missing. From a standpoint of a long term rental exit strategy the cash flow is not extraordinary but you have to remember it has a 2.5 interest rate, it will be a great offset on your taxable income for the year, if chosen to go the mid term rental route or even a possible pad split the cash flow would be much greater, plus you basically purchasing a house with a tad bit over 10% of the purchase price. (Not including any Reno) Considering all those factors it is a good deal. Just all depends on how you look at it and what your plan and exit strategy is.
Its already cashflowing before we posted the video my friend. Not sure where you got your data. Go drive by the home... we gave you the settlement statement.
@@JlDaBlackSuperman Its a great deal. The problem is people are short sided and dont understand why people buy real estate. Its already cashflowing and I have no money in the deal of my own money. Works out amazing for me.
Phenomenal deal. I could have flipped it and made $50K. I could have done so many things with it... but we just turned it into a mid-term rental and its already cashflowing. So sorry! Break even was not just accomplished in 3 months, but its NET cashflowing a few thousand per month already.
@@PaceMorbycongratulations. do you have people in different area manage Mid Term rentals? Also on the deal 2000$ is subto payment and 1000$ is principal only payment to seller finance then total purchase price is 360k+ commission+ cc?
Thank you.