Why Creative Finance Crushes Cash Transactions

Рет қаралды 7,298

Күн бұрын

In the second part of this 6-part agent series, Pace Morby walks us through how simple it is for creative finance to save a conventional (cash) real estate transaction. He talked with the agent about this deal during February’s Elephant Challenge, getting her perspective on why she believes finding a cash buyer would be the best option after the buyer canceled. Pace disagrees, saying he wants to do a subject to deal to take over the payments.
Pace whiteboards the transaction we saw in the first part, tying it back to why a real estate investor would never pay retail price for a property; investors are looking for a DEAL. Afterward, Pace questions why not just let him take over payments? This conversation comes back to the fact that everyone thinks creative finance transactions are too difficult. Creative finance is the easiest and quickest type of transaction you could do. He then emphasizes that it all comes down to the debt-to-income (DTI) ratio because what signifies a good deal is how low the interest rate and down payment is.
See the entire series here!
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Chapters:
0:00 - Intro
0:16 - Call With Real Estate Agent
9:11 - Investors Don’t Pay Retail Prices
9:45 - Deal Breakdown
14:59 - Why Cash Won’t Work for This Deal
23:35 - Using Creative Finance
26:00 - Debt-to-Income Ratio
30:46 - Subject To
33:30 - Re-Listing Property
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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as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself.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 KZfaq video for entertainment purposes ONLY ❎

Пікірлер: 30

@stevenmolina1219 4 ай бұрын

Wow, I love watching this. I wished my wife would get on board so we could make things happen.

@PaceMorby 4 ай бұрын

Keep trying man! You got this!

@rogelioordonez777 4 ай бұрын

❤ so amazing light bulb moments going on here in understanding Sub-To Transaction better, Very Helpful....Thank you Pace!!!!

@ParadoxxedMedia 4 ай бұрын

Great video, lot's of learning moments (even for the agents ;-)) What I love about Sub-to is how many problems it can solve and is likely the most abundant type of deals you'll come across as an investor... if you actually know what the heck you're doing. Most deals will be novations and sub-to you'll come across... below market deals are fugazi and literally like finding needles in haystacks, whereas these types of deals will literally fall on your lap!

@PaceMorby 4 ай бұрын

Love it! Even for the agents haha

@realestatemanzo 4 ай бұрын

Great work Alex Keene!!

@IMARBAN 4 ай бұрын

I will await for next Video 😊❤😊❤

@natzjunkandtrash7454 2 ай бұрын

Hi I am new to the channel I want to learn how to get into this field always wanted to get into this but never knew how too

@joshbryant7363 4 ай бұрын

Furthermore, how much EMD did they walk from? Pace - “I would take their dog!” 😂😂🤣

@johngleue 4 ай бұрын

Irrelevant really but probably 1500

@courtneypedraza5200 4 ай бұрын

I thought this was giving us the update. I watched it live.

@toddbankscreativefinancech3550 4 ай бұрын

I remember this zoom

@ReesJasso 8 күн бұрын

Is the part 2

@johngleue 4 ай бұрын

So, in this situation, would you offer them a subto and then just make sure the cash you give them straight away covers their downpayment on the new house they want to buy? Then you could work on giving them installment payments out of your cash flow up until the time when you can refinance and get them the rest of their equity in the home?

@marla1115 3 ай бұрын

What about the money she needs to put down on the new house. Since you’re not giving them their equity it kind of put a hall on buying a new house. Maybe the payments are too too high without the down payment. No 20% down you have to pay mortgage insurance.

@BusinessManDevin 3 ай бұрын

This guy has a slick mouth

@dewholdingsllc1050 4 ай бұрын

I’m looking for a subto or creative deal near ASU Polytechnic Campus in Mesa Arizona. Any subto folks with a real deal or lead.

@PaceMorby 4 ай бұрын

Link up in the free FB group, that's where you'll find people in your market paceapproves.com/communityytc

@dewholdingsllc1050 4 ай бұрын

@@PaceMorbybeen a member some time, post there and msg a couple of AZ members there, just saw this post by PM and posted our buy box and exactly where our target sub market is. ASU Mesa Poly campus.

@marla1115 3 ай бұрын

Yeah, I disagree on some of the motives from everybody. These people needed their equity to make the down payment on the new house. A higher payment and Mortgage insurance Is what eventually would happen. What if they don’t have excellent credit and they really needed that down payment. Using creative finance on this one you better be a creative Wizard.

@cremedelaclutchexotics7770 4 ай бұрын

Great video, but another reason most Realtors are whack. She wants her AND her daughter to get paid. That's greedy. "Co-listing agent" what a bunch of 💩

@marinarbekka 4 ай бұрын

So what happen with this? Who locked it up?

@jimmullinnex 4 ай бұрын

My weirdo friend named Pacer😂😂😂

@tylerferguson3575 4 ай бұрын

Who is Alex? I must be missing something haha

@PaceMorby 4 ай бұрын

She's on my social media team!

@torreypines3074 4 ай бұрын

This is why this deal won't work. Seller should demand sub2 contract contingent on new lender counting your [Pace's] upcoming payments on existing loan as income for seller, because new lender will require at least 6 months seasoning proof of payments. Also may not comply with Dodd-Frank legislation.

@PaceMorby 4 ай бұрын

Subto means there is no new lender. That's the point, securing the original mortgage rate.