How to Buy Property with NO MONEY Using the "Subject To" Strategy
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- Опубликовано: 1 авг 2024
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"Subject to" may be the best way to buy property with NO money. We’re talking $0 down. No saving up cash, talking to banks, or paying for a seven percent mortgage rate. Instead, this strategy lets you take over a seller’s mortgage, even if it’s still at the rock-bottom rate of 2020 or 2021! If you think it can’t be done, look at Pace Morby’s success. He’s been able to scale a rental portfolio of over a thousand units, almost entirely using creative financing strategies like subject to and seller financing.
But if this strategy is so solid, why isn’t everyone doing it? Pace breaks down the EXACT list he uses to find motivated subject to sellers, the two types of routes you can go, and the one that requires no cash out of your pocket. While every other investor focuses on buying on-market properties at list price, Pace is getting deals at a STEEP discount, either on the purchase price or the rock-bottom mortgage rate. Pretty sweet deal, right?
If you want to learn how to build wealth without cash and start collecting $0 down deals, you’ll want to grab Pace’s new book “Wealth without Cash.” Pre-order today, and you’ll unlock exclusive content that will walk you step-by-step through getting your first creative finance deal in the bag. Pre-order Pace’s new book here: get.biggerpockets.com/5fbfac0...
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Creative Financing 101 with No Cash, Credit, or Credentials:
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Instagram: @pacemorby or / pacemorby
00:00 Build Wealth WITHOUT Cash
01:54 Where to Find $0 Down Deals
06:03 $0 to $2,000/Month in CASH FLOW
07:57 Pick Up Pace’s New Book!
This was super helpful! Do more.
You might be a legend when it comes to gurus. The gurus from the past never gave as much info as you do.
Does Subject to work for every State? Can we get the contracts from BP?
Thanks you for the video!
Thanks!
How many times does the book mentions "My students"?
😂 jp I'll pick up an audio version.
I don't get it! How come you buy a property with no money?
I pre-ordered the book, where do I see the videos?
likely and link in the video for you to type in your browser and and individual password to view
Yo pace what happens when the bank calls the note due when they see the transfer of title ?
you have to assume a mortgage that are assumable and that would be in the contract or original mortgage which you would do your due diligence and read before you make the deal
This is not mortgage assumption.
A lot of details missing. It’s not your mortgage so it’s technically not your home. You’re paying someone else’s mortgage for them while renting it out per a contract. There’s no way you are the legal owner. Especially when the bank doesn’t even know there’s a subject to.
The deed is signed over to the subto buyer. Deeds are the legal document that determines ownership.
Why would someone do this when they technically still have the mortgage and it would seem that these deals would be hard to come by
Gems right here!
Dude PACE!!! You freaking ROCK BRO! I wish I discovered you and BP and Jamil like 2-3 years ago… I definitely pre-ordered the book and after I finish Astroflipping, I am going to look into the Subto Crew or Gator training… thanks again for what you do😊🎉
I love BP and have for years, but can we please stop with these “omg this is going to blow your mind” thumbnail pics? You’re not a shoddy/ questionable REI group trying to reel people in. You’re an established and well respected site with solid info :)
Agreed!
You have a point there.
Been thinking the same thing! Those other gimmicky people do that, not u guys.
📕
They want to attract more people, but most importantly keep their content in root of what BP is all about. I don't like it either, not because of their "cringe" thumbnails, but because I am selfish with these information and I haven't purchased my first property yet! I am doing the slow delay gratification method so I guess by then there will more competition.
great video
Thanks!
How $2000 but $6000 for rental? Where did the $4000 of value come from?
he said short term rental. Hawaii is tourist State you can rent more for weekly than on a yearly lease.
Big book sales pitch.
This doesn't sound like normal Pace Morby.
This is what AI had to say about this strategy:
"Subject to" financing can be risky because it involves taking over the existing mortgage on a property without paying it off. This means that the original borrower is still legally responsible for the mortgage, even though you have taken over the payments. If the original borrower defaults on the mortgage, the lender could foreclose on the property and you could lose your investment. Additionally, "subject to" financing can violate the terms of the original mortgage, which could result in legal consequences. So, it's important to fully understand the risks and benefits before using this strategy."
No thanks.
How can original borrower default if YOU are making the payments directly to the lender?What is there for the original owner to default on?
@@bannertraveller5879 They can choose to spend the money on anything else
2% 2018-2021 ....so then they had to remortgage? And if that's the case where do you get 2% from??
No. The last 3 years primary home interest rates got into the low 2s and 3s. Up until inflation hit and rates soared. So the goal is to find a Subto with a super low rate and hold forever
Please, as a non US resident, how can I access such deals.
Does the seller give up any equity he might have?
Would you guys please chime in on the comments. There are so many great questions and ah ha moments that go unaddressed. You're here to help, right?? I'm sure you all are extremely busy, but it would be greatly appreciated!! ❤
They're here to sell books, courses, and services lol
Creative finance is a game changer! Being a SubTo student of Pace’s, I can honestly say these creative strategies have completely changed the way I look at deals now. Able to bring so many more solutions to the table for sellers. Add these tools to your tool belt!
Whats the best deal you have made with these strategies?
@@Cris_V_00 Just recently closed a 12 unit where I got paid $5k to buy it. Funds came from the seller to cover all renovation costs too. I’ve got a video breakdown of the deal on my RUclips channel.
I really am trying to get back into it, but getting an angry call from shawn casey telling me i was an idiot for not spending 13k on their program has had me not tuning in for a month -.-
😂🤣 Pace is always angling to get sub to students. He is very knowledgeable but 13k is unreasonable for something I learned from him via RUclips for free 🫡
Make a detailed playlist about RAL's. That will be ultra ultra helpful. Btw Love the knowledge you provide, so happy to find @pace on youtube
how and when you will pay the equaty?
The goal is to find sellers with low or no equity and thus his point of no down payment. The more equity a seller has, the more you need to put down.
Can subject to be done in any state? I live in Texas.
Ordered the book Pace! Thanks for all you do! Does the book include your Subto Contract and or Gator Lending Contract documents?
Do we still have to pay the seller the equity that they have on the house so far and the transfer tax fee? Wouldn't the seller be losing money because they've paid out of pocket for the initial cost of buying the home?
I pre-ordered the book and for some reason I couldn’t upload the receipt but I’m looking forward for the book and staying tuned on BP podcast. Thank you for this great video. 👍
But how does the seller get any money?
If they have equity you would have to pay it to them otherewise they get none unless you offer something but at least they no longer have a house that they can't afford or dont' want.
How can I do a subject 2 on my grandma property in San Diego?
have her put you in the will. Much less hassle.
What profitable options might I have if I get a deal like those and want to live in it for a season each year?
Will there be an audiobook of it