How I Scored a $3.7M Ranch for Just $1 Down!
HTML-код
- Опубликовано: 4 июл 2024
- In this video, Pace Morby reveals how he scored a $3.7M Kalispell, Montana property for just $1! Dive into this subject to/seller finance hybrid deal and discover the secrets behind why you’d buy an expensive property even if you think you can’t afford it.
Pace breaks down how he purchased this luxury home part subject to, part seller finance, and why the seller chose him. He shares the seller's backstory, their pain points, and how he turned their pain into gain. Why would a seller opt for seller finance and not just sell the traditional way? Pace walks us through the seller's mindset and educates the seller on the subject to process, emphasizing the benefits for both parties.
Watch as Pace takes you step-by-step through the negotiation process. From proposing a $0 down payment to settling on $1 DOWN due to the seller’s attorney, he shares every detail. Learn about the terms of the deal, including the down payment, purchase price, interest rate, and duration. This hybrid subject to and seller finance deal is a creative finance masterpiece!
Pace also breaks down the financials: a 4% interest rate and a $17,000 monthly payment. Wondering how he manages such a high payment? He stresses the value of any investment is not the price, but what you can do with the asset instead. For this deal, Pace plans on hosting large-scale events at the property, which will cover the high monthly payments with ease (as the house can sleep at least 20 people).
Don't miss out on this exclusive breakdown of a high-stakes real estate deal. Like, subscribe, and hit the bell to stay updated with more content around this Montana ranch bought with creative finance!
► Join The Subto Community & Learn Creative Finance Directly from Pace: ✌🏼
joinpacescommunity.com/
► Learn How to Make Money on Other People's Deals - LIVE Training this Saturday:
joingatortribe.com/yt
► Join Our Free Facebook Group to Connect with Pace and his Students:
paceapproves.com/freefb-yt
► Become a Top Tier Transaction Coordinator and Make Money Doing The Paperwork For Real Estate Transactions:
jointoptiercommunity.com/
► Listen To Pace and His Students Share Insider Secrets To Real Estate Investor Success:
getcreativepodcast.com/
🔌 PLUG IN & SUBSCRIBE 🔌
Instagram: / pacemorby
TikTok: / pacemorby
Chapters:
0:00 - Intro
0:27 - Story of the Seller
2:45 - What is Creative Finance?
4:40 - How Did I Get $1 Down?
5:31 - What Are Terms?
9:48 - How Am I Affording the House?
➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖
⚠️ #CreativeFinance #Investing #Wealth #RealEstateInvesting #Wholesaling #SubjectTo #HowToGetStartedInRealEstate ⚠️
🚧🚧🚧 DISCLAIMER 🚧🚧🚧
Pace is 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.
It’s amazing when your a subject matter expert things just work. Blessing for the playbook!!
A deal always starts with a motivated seller. Understanding the seller's situation is crucial in finding the best way to help them and close a deal. This insight shows the importance of empathy and problem-solving in real estate.
Thank you Pace for another beneficial video! Im the idiot who is learning off of your videos (but paying for a community not this precise). Meet you soon!
The #s part is the most beneficial part of your videos especially tax.
Thank you for this video brother! Was waiting for this one! A lot of value and thanks for the resources given also! Going to purchase my future ranch using creative financing!
Good luck bro!
This is what I've been waiting for!! #PopcornTime 😀
Thank you Pace. Very creative. Very informative. Very interesting. Thank you for all that you do.
Much appreciated
And under IRC 453, when you take the property "subject to", the $2m in your example is treated as a "recovery of basis" (e.g. if cost basis is indeed $2m, seller reports NO gain in year 1. However, he has now extinguished his basis meaning that EVERY $ you pay him on his $1.7 seller finance will be CAPITAL GAIN! Also, there is risk to the seller that his gain is ORDINARY since it seems like he may be a "dealer" - ordinary tax rates - YOU SHOULD CONSULT A QUALIFIED TAX ADVISER Mr. Pace!
I SEE GREATNESS IN YOU
Absolutely great video! Short, sweet, and to the point. Thanks Pace!
Glad you liked it!
Nicely done!
Thanks
Thanks
Capital gain tax is 0%-20%. How is it calculated that 50%, 850K is tax saved for the seller , with 1.7 equity , by using seller financing?
I had a similar question. Montana’s cap gains tax is only 4.9% (Oregon, where I live, is 9.9%). Maybe there’s depreciation recapture but that’s capped at 25% (Federal). And even if it is 50% - which Pace is waaay more experienced, so I’m still inclined to believe him - doesn’t it the seller still slowly pay that each year for income received? I think it’s more accurate to say seller financing defers the taxes. Maybe? I’m still not sure.
@@JamesFurlo , 50% of tax saving on capital gain is a big mislead in this video. In fact, Maximum capital gain tax is 20%
I would like to know the true reasons for seller to choose seller finance
@@carrie4579 , there are lots of reasons. I had one who offered seller financing because he had read some investment books and wanted to “feel” like an investor by offer us a loan. Another was in pre-foreclosure and needed a quick close. Plus, by catching up his loan & making payments we helped his credit. I find the quick close to be a big motivator. Plus, I tell them I can pay more with a subto b/c I don’t have to raise funds from investors who want 10-12% returns.
Got 2 for you in the flathead
😮😮😮😮😮
Why do you say "the way I structure the deal, the seller will avoid all capital gains tax..."? Then you say otherwise.
viral