Pace I Literally just did my First Wholesale Deal and it happened to be a On-Market Full Renovated SUBTO deal!! In GA 🥰the cool part is that the seller waived their right to use the mortgage interest for Tax purposes that my end buyer can now claim as an additional write off. It’s a Negative Equity property that he is going to Wrap to create cash flow. Oh and I protected the end buyer and seller using a living trust. ALL ON MY FIRST DEAL! ❤
@@FredHerrman The Trust provides anonymity not asset protection. County Clerk will record SUBTO Property under a Living Trust "123 Trust" as opposed to an LLC or using your actual name and risk the greater trigger of the Due On Sale Clause
@@Homeoffersunited Revocable Grantor Trust. It's not Needed for SUBTO deals, it just adds an additional layer of safety if done properly. A quit Claim Deed is most commonly used to circumvent the "Due On Sale Clause" .
One should note. PITI won't always stay flat especially when expecting appreciation of the home. True that the mortgage and interest will remain flat, considering a fixed rate mortgage, the insurance and property taxes will almostly certainly rise over the years, but typically slower than rent growth. Other than that, great video
Payment doesn't stay the same. There are pesky little expenses called property taxes and homeowners insurance which are skyrocketing all over the country.
Your numbers seemed to be working for me until you mentioned that your mortgage payment will stay the same for 30 years. I watched your other videos about how the subject to works and effectively, the previous owners mortgage stays in place - under his name. In your subto video you discussed subto contracts that have an exit clause right? And, that exit is needed by the previous owner at some point in the near term, correct? The previous owner is not going to want this house on his credit statement for the next 30 years when he/she is not getting anything out of it, and that existing mortgage might prevent him from buying a new house right?
Hey Love your content, THANK YOU!! AND Want to point out that your not correct in *one area, your payment will go up as your taxes and insurance will go up, most likely in step with your rental rates but just want to point out your statement is not totally correct.
How do you logistically arrange for payment on the original mortgage since you are now responsible but it has to stay in the name and address of the original borrower? -Without causing a stir obviously.
I hire a company called Weststar Servicing which takes the money out of my account and puts it into their account and they distribute that money to the seller's mortgage.
Thank you for the vid , just started watching your content. Question. If you don't plan on financing it down the line how this method affect the seller you bought it from since they are the ones with the mortgage ? Thank you
@fitlifeconrad, How are you since your last post? Did you get your questions answered? I can be a resource for you or even funds your transactions if you need it. Feel free to reach out using this account !
Have a seller that is willing to give the keys to their home for $0 down. Details are 350K mortgage at 2400 a month 5.5% interest. The rent in the area is $2100. -$300 cash flow, is this a deal or should I wholesale this.
Pace, my calculations show you'd get about $12K/yr depreciation. Please explain how this "earned" you $89K in tax benefits. I lost something. Thanks in advance!
Pace I Literally just did my First Wholesale Deal and it happened to be a On-Market Full Renovated SUBTO deal!! In GA 🥰the cool part is that the seller waived their right to use the mortgage interest for Tax purposes that my end buyer can now claim as an additional write off. It’s a Negative Equity property that he is going to Wrap to create cash flow. Oh and I protected the end buyer and seller using a living trust. ALL ON MY FIRST DEAL! ❤
Explain the living trust
I’m in GA looking for properties!!! Let’s connect!
As long as the living trust protects them against probate, but not asset protection.
@@FredHerrman The Trust provides anonymity not asset protection. County Clerk will record SUBTO Property under a Living Trust "123 Trust" as opposed to an LLC or using your actual name and risk the greater trigger of the Due On Sale Clause
@@Homeoffersunited Revocable Grantor Trust. It's not Needed for SUBTO deals, it just adds an additional layer of safety if done properly. A quit Claim Deed is most commonly used to circumvent the "Due On Sale Clause" .
Pace you’re the best I’m so glad I joined the Subto community two weeks ago I can’t wait to get my first rental here in MN
What part of MN? I am down in Rochester
I have a property where the seller is willing to do an owners finance @5% it will break even the first year and a couple hundred the following year.
Thanks, Pace! As always fun but informative video! You are an inspiration for my videos! 💪
Fire. Making mistakes pitching creative to agents and sellers but learning
Amazing as always, Thanks to PACE TEAM!
Love your channel! I'm joining subto now!!!
One should note. PITI won't always stay flat especially when expecting appreciation of the home. True that the mortgage and interest will remain flat, considering a fixed rate mortgage, the insurance and property taxes will almostly certainly rise over the years, but typically slower than rent growth. Other than that, great video
Amortization
Depreciation
Little or no positive cash flow
Appreciation (delta) on a 5+ year hold period
⚾️⚾️🧢
Payment doesn't stay the same. There are pesky little expenses called property taxes and homeowners insurance which are skyrocketing all over the country.
Subscribed and literally manually turned on notifications to ALL
Your numbers seemed to be working for me until you mentioned that your mortgage payment will stay the same for 30 years. I watched your other videos about how the subject to works and effectively, the previous owners mortgage stays in place - under his name. In your subto video you discussed subto contracts that have an exit clause right? And, that exit is needed by the previous owner at some point in the near term, correct? The previous owner is not going to want this house on his credit statement for the next 30 years when he/she is not getting anything out of it, and that existing mortgage might prevent him from buying a new house right?
Hey Love your content, THANK YOU!! AND Want to point out that your not correct in *one area, your payment will go up as your taxes and insurance will go up, most likely in step with your rental rates but just want to point out your statement is not totally correct.
I Appreciate your teaching and showing the way❤
❤❤❤❤❤❤Lots of Love n Blessings!!!
Thanks for all you do PACE!!!!!
Once you divided $350,000 / 27.5 when calculating depreciation, why did you multiply again by 7 to reach $89090?
@@firstLast-jw7bm I multiplied by 7 because the IRS will let you take 7 years of depreciation in the first year.
How do you logistically arrange for payment on the original mortgage since you are now responsible but it has to stay in the name and address of the original borrower? -Without causing a stir obviously.
I hire a company called Weststar Servicing which takes the money out of my account and puts it into their account and they distribute that money to the seller's mortgage.
Thanks Pace! 👍
Another great content! You're the best!
THANK YOU!
What was the interest rate of the mortgage you took over ?
Scorpion traps. what is going on . Wow
Thanks Pace
Creative finance is more about sales than real estate 🤫
I want to do Subto deals !!!
Thank you for the vid , just started watching your content. Question. If you don't plan on financing it down the line how this method affect the seller you bought it from since they are the ones with the mortgage ? Thank you
How do you pay back the private lenders?
Question, what if you have the money upfront to be able to pay someone for the property to move out via sub 2 do you need opm?
@fitlifeconrad, How are you since your last post? Did you get your questions answered? I can be a resource for you or even funds your transactions if you need it. Feel free to reach out using this account !
Found your answer below (thanks much!), but how the devil do you accelerate 7 years?
Have a seller that is willing to give the keys to their home for $0 down. Details are 350K mortgage at 2400 a month 5.5% interest. The rent in the area is $2100. -$300 cash flow, is this a deal or should I wholesale this.
Squad up in the free Facebook to get insight from my SubTo students bro! paceapproves.com/freefb-ytc
Pace .How do you structured and distribuited the % of commision to pay..the Agent($5k),wholeseller($2k) and your student($15k)..Do you use a formula ?
you negotiate that. You try to give as little as you have to but at the end of the day its a negotiation. No formula
Pace, my calculations show you'd get about $12K/yr depreciation. Please explain how this "earned" you $89K in tax benefits. I lost something. Thanks in advance!
I multiply the first year by 7 because I take 7 years upfront.
@@PaceMorby incredible!
WHAT YOU'RE GOING TO DO WHEN THE BANK SAYS IT'S DUE?
Wayne. we have done over 10,000 of these. The banks dont call them due. Go watch my due on sale clause videos.