How to Buy a House With $0 Down
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- čas přidán 13. 07. 2023
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There are two types of people when it comes to the housing market: people who want to buy a house, and people who want to sell one, but can't!
Today we're talking with Pace Morby who has a real estate portfolio that has over $150 million in assets. And if he looks familiar, it may be because you might have seen him on A&E's "Triple Digit Flip." He's an expert when it comes to buying houses with zero down, and we're wondering, is it a scam???
His secret is a process he calls "creative financing," and I'm going to tell you what that is and how it's possible to get into the housing market with no money and no real estate license and endless waiting. Of course, there are risks, and I'll tell you what they are and how to avoid them in this video.
What do you think about buying a house with no money down? Would you do it? Have you done it? Do you know someone who has? Comment below!
Thanks for breaking it down for us @PaceMorby
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While this creative financing strategy "sub-to", can be an incredibly smart and creative way to finance real estate purchases, it is not without its risks. Here are a few that are not explicitly discussed in the video:
1. Seller’s Mortgage Not Paid: If the original seller (whose mortgage is being taken over) gets into financial trouble, they might stop paying their mortgage. This can lead to foreclosure on the property.
2. Loan Acceleration: Some loans have what is known as a "due-on-sale" clause. This means that if the property is transferred or sold (which technically occurs during a sub-to deal), the lender can demand immediate payment of all outstanding loan balance. If you cannot meet this demand, you could risk foreclosure.
3. Potential Damage to Property: Since you do not technically own the property, you have limited control over what the seller or tenant can do. If significant damage occurs, this could result in repairs costs or reducing property value.
4. Overdependence on Rental Income: If your plan is to rent the property and a period of vacancy occurs, you may not have the income to cover the mortgage payments and could risk defaulting on the loan.
5. Credit Risk: If the mortgage isn't paid under this arrangement, it could negatively impact the original seller’s credit. As the investor, you have an ethical responsibility to prevent this from happening.
6. Insurance Coverage: Insurance can get complicated in a subject to deal. The original owner’s policy may not cover the new resident and getting a new policy in the name of the investor might trigger the due-on-sale clause.
7. Legal/liability Risks: The nature of these deals often involves complex legal contracts, which if not understood or properly executed, could expose parties to potential legal liabilities.
8. Market Risk: Like all real estate investments, changes in the property market - from a decline in property values to an increase in interest rates - could impact the profitability of the investment.
As with any investment strategy, it's crucial to fully understand the associated risks and to seek advice from an experienced real estate lawyer or a real estate professional who is familiar with such transactions.
Based on my experience since 2015...
1. Mortgage is paid by new "owner" via escrow account.
2. Bank only cares about mortgage being paid on time. They lose money if they exercise this option.
3. Your rental or lease purchase contract requires "tenants" to have insurance. In my experience, "tenants" take better care of property with lease purchase agreement and substantial non refundable down payment.
4. Again addressed in lease purchase agreement terms/conditions which is quite different from a traditional lease you're perhaps referencing.
5. Original owner is protected by terms of "subject to original financing" purchase agreement.
6. Not as complicated and again banks are not interested in foreclosing because they loose money.
7. Find an experienced real estate attorney who's familiar with executing "subject to original financing" deals.
8. This type of real estate transaction is market resistant because new "owner" is assuming the original financing and/or wrapping around depending on terms negotiated with seller.
I'm part of the Subto community and it is the best decision I've ever made. You will learn all types of creative deals opportunities, owner finance, subject-to, novation agreements, executory contract, wholesaling, Morby method, raising capital and more. Plus Pace is so generous, he always adding bonuses. You will Master real estate investing for sure!
Where do I find expire listings
Where can I sign up for this?!
Part of the subto community and HIGHLY RECOMMEND! It’s been life changing! Just the connections and community alone are worth millions!
I’ve watched a bunch of Pace Morby videos… this one is the BEST!! I appreciate how you broken this down into 3 phases:
1. Understand the process
2. Visually walk thru the process
3. Physically do the process
I would love to hear more in another video about how you are buying/leveraging real estate to reduce your taxes!!
smart and refined content as always. Thank you for enriching our knowledge, Codie!
Codie, The one question I anticipated being answered wasn't even asked...what keeps the mortgage from being called due?
I’ve something special for you..
Amazing! Loved it! Thanks for sharing Cody!
what happens if the original owner already has 100k equity on the house? i don't undertand, you own the house with the deed so the original owner basically gives you all the equity he invested? or is there some kind of deal where ultimately the original owner still owns the house when the mortgage payment is done and you only made passive income on the difference between the mortgage payment and the price you are renting it for?
If the owner owned the house free and clear, he could seller finance his own mortgage or seller finance a second mortgage after the bank applies the first mortgage.
@@728huey that makes sense for sure but i thought they were talking about taking over the current mortgage and not seller financing!
This channel is freaking awesome. Thx for sharing your knowledge.
This might be one of the most valuable videos on CZcams. Absolute GOLD. Thank you Codie for your indispensable content!
I agree!
It’s not. This is fraud
Can you explain why would a seller walk away from their house only having you take over the payment? They they leave with no money in hand, and the mortgage is still in their name, and on their credit, which ties up their credit preventing them from going to buy another house.?
They can't 😂
Such a great episode - thanks for posting this super clear explanation - Pace = 🐐
Thank You. Keep em coming
Subto community member here in CA-Bay Area ready to squad up and make deals happen. You 2 were the first people I followed over a year ago on this journey. Great to see go-givers working together to give more to the masses. Appreciate your content and what you stand for!
I'm also in the bay area looking into this. Would you be open to chatting?
In Ca neighbor of the bay and looking to squad up
@@jacobmccormick2314I’m in Sacramento area and looking to squad up wanna chat?
@@annakarstensI’m in Sacramento area and looking to squad up wanna chat?
"Great video! Thanks for teaching us about property. Really informative! 👍"
Awesome Collab. Love you guys
Love this video! Excited to see you 2 make some stuff together!
I am in Subto and this community is REAL JOIN, way more value and partnership found here than any other mentorship.
I’ve something special for you..
Excited to see y’all work together! ✌🏼😄 looking forward to helping anyone. I’m Jairo from TX and Part of the community.
Why would the seller be ok with keeping the mortgage in their name and how do they know you going to take over payments. The seller is legally liable if the mortgage is under their name
when you ask real questions, it starts to sound like a scam, but I think this might be legit. It just more risky for the seller. Seller no other way but to sell the house.(divorce, job loss)
Not to mention that the bank records a note on the deed of said house. When they try to transfer the deed to the new owner, the bank has to be involved. Either the buyer pays in cash, gets a new mortgage, or takes over the existing mortgage in their name. So that whole i never have to get my credit checked is BS. Also, some loans are non transferable. There are a lot of wholes in this story.
@@plamendobrev5416actually a quick claim deed can be done where the seller transfers the deed into another persons name and the bank does not get involved
@@Andre-jp4yt you are right. the seller is just uneducated and could rent their own house out themselves. These wolves are just inserting themselves as a middleman and profiting off of what the homeowners don’t know. I morally disagree with wholesaling. Which is what this is.
You are a legend. No better value per second on CZcams, anywhere
I’ve something special for you..
I don't understand one thing. What does the original owner of the house get out of this arrangement? Sure, they don't have to make mortgage payments on their house but they also didn't get cash money to even put towards their next house. They don't get cash for their next house, they lose the deed but the mortgage is still in their name so if Pace doesn't make the payment, the original owner's credit score takes a hit? There's got to be something else that isn't highlighted
Bingo. I’ll bet no answers come.
Guessz he just finds desperate people who want to move out
@@ShadowMonk609 And does it magically before a local Realtor does it. I know wholesaling works but that was back when a relative few were doing it. Like flipping - try to find a distressed property at a bargain price and meet a hundred of your competitors while doing it. Wholesaling requires less investment of time, so returns can be infrequent.
@ricseeds4835 these are homeowners who are in a bad situation for one reason or another (think foreclosure, hoarder house, overpaid for a house 2 years ago and now have to relocate). They almost always owe more than they would get selling on the retail market, so they don't have any equity.
Nice Job Codie, This is also done in Australia on a different level and it does work, both parties are on a win win.
Started doing this in Amarillo, now it's time to do this in all of Texas... I am also part of the Subto community
I'm a subto student located in Kansas & it's the best community on the planet.
Awesome video. I’m one of the original members of paces Subto mentorship. Buying in TX, FL, GA, Carolinas. I’ve built up a portfolio and took my cashflow to $20k/M in 3 years. Best community in business.
Ok, so maybe you’ll tell me what motivates someone to give title to someone who promises to make the mortgage payment? A couple months of vacancy and then what? You stop making mortgage payments and the bank goes after the original mortgage. Why would someone do this? The idea has been around forever but it rarely works - no deals made.
Subto mastermind student. Pace brings so much value everyday. Thank you brother!!
Reach out to squad up!!
I'm in Houston tx and my team does this all the time! Zero down life 🙌👍
😮
im in Houston too and I would like to learn more about the process if you don't mind@@aoyama173
I'm a part of the sub to community and I'm from Billings, MT. I'm not necessarily looking in Montana, would love to find properties in Arizona, South Carolina and Nevada also. Looking for a first deal and super excited for this in my life and you all too.
My team does this all the time. We help negotiate these types of deals regularly! Being in subto has been the most amazing thing to happen to me and my family!
How do you deal with the mortgage after the deed is transferred - you pay for the sellers mortgage and they get a bump in credit so you are kinda in the shadows? How do you handle the equity and selling it?
@@annakarstens great question! The monthly payment to the sellers mortgage can benefit their credit score. If they have a lot of equity when you buy, sometimes we pay it all cash or seller finance their equity. When you go to sell something you own sub to, the mortgage and any seller finance will have a lien on the property that needs to be paid off at closing
@@Maxsnearyis the lein that needs to be paid the amount the seller still owes to the bank on the mortgage? If not than what’s the difference between the lein and the mortgage?
@@riverafterivergood question. The mortgage can be one of many types of liens on the property. Mortgages, solar loans, loans for HVACs, fines from the city, etc. if you negotiate it correctly, you can take over payments on all of those OR pay off some of the smaller ones, so you aren’t meeting a lot of money to close on the deal. Hope it helps!
Creative financing is a game changer. I've only done 2 in my life, but hoping to do more throughout my life. Made great money on both.
Mind sharing the steps you've taken? I'm a little lost with the process on how to buy a home with $0.
Spencer is the goat
Pace is 🔥. Thanks Codie!
I’ve something special for you...
❤❤🎉🎉🎉Part two PLEASE!!!!!
So awesome to see the two of you collaborating!! My husband Steven and I learned all about creative finance strategies in subto and built a $10m portfolio in 1 year. This is the next exciting part of our journey! Learning how to acquire businesses with Codie!
only $10m? You guys are wasting your time with that. I have build a $200m portfolio in 3 years with 0 down. That is why I am taking the time out of my busy schedule to comment here.
This is great! I’m part of subto and wealthy investor and have been following Codie as well. We hope to build our portfolio too. We haven’t done any creative deals yet but hopefully soon.
Can you recommend a starting place and suggest a web site to get some more information! Thanks!
I call BS.
How much do y’all pay the owners to move? That’s missing in the video
The Subto communiuty is awesome, Pace is a beast for putting it together. Based in Waynesboro PA, reach out for questions, and lets get some deals done!
Yeah codie you should do it! like you said real estate is more stable then businesses, so you get best of both worlds businesses and real estate. Cash flow and big log turm earnings, bigger net worth
Subto mastermind student and I own properties with Pace. No money out of my own pocket. Always taking on new lenders and buying more deals. I’m based on VA and marketing in VA and NC.
Subto Atlanta in the house and this community is mind blowing! Here to help with creative financing in Atlanta and Tulsa.
Pace is awesome and glad to see this video happen between both great leaders!
I’m a Subto student in SoCal. I’m an end buyer. Pace created the best community on earth!!! Let’s connect!! ❤
Cody, I have a part that I’m still confused about. What if the seller has equity in the house? Do they just walk away from that? Or is it a very specialize seller who is maybe going to lose their house to foreclosure if it doesn’t sell? Why would they just leave their equity? Thank you so much! I love all your videos!
Not Codie, but was asking myself the same, most likely seller wont walk away from equity, but they might agree to lose portion of it depending on how much they need cash (health issues, emergencies..). So I believe you have following routes, either you have cash in hand to fulfill a down payment covering the equity (or portion), or the seller agrees to receive it also in monthly payments before/after mortgage, this would be part of the negotiation and it would still fit the 2 categories presented by Pace, 80% of them require down payment, having equity most likely will fall into that, 20% Zero down ("got the house yey, couple years later, crap I cant keep paying for this..."), if we think about it, this 20% is not that rare, it's a quiet common result given current economic conditions, thing is they are not that easy to find (i think, at least where I live, most of them are just rolling the debt ball and trying to cope without even looking for a broker to get out.
Yeah, many questions were not made by her.
I have the same questions and the only thing I can think about is you have to prey on people in bad situations...house under water so no equity anyway (mentioned in the video) or bout to lose the house in foreclosure....or a divorce settlement etc...ain't no way a person with equity in their house is just handing it away for nothing!
@@aduadAnd there's plenty of people in those situations that WOULD walk away dude. For real.
Hey! So I am in the community as well. These deals have to make sense for the seller. He is talking about low equity deals with agents have ZERO knowledge to help their seller, which forces them to basically write a check just to get the house off their back because when you sell on market, there are a lot of seller costs.
Subto Student here doing deals in Pennsylvania and North Carolina. This is exactly what we are trained to do. Lets do deals together! Thanks Pace!
I’ve something special for you...
Hey Codie. Thanks for having our mentor Pace come on your channel to share the power of Subto. I'm a Subto student in NC. Would love to help and connect with anyone looking to squad up!
I’ve something special for you..
It’s so real!! Take it from someone that didn’t believe it !
Smart duo!
Wait, the mortgage stays in the owner's name? What happens next?
And how does the owner make their money?
Exactly what I was thinking. The model makes no sense. The owner is literally giving their house away for free.
GOOOOOOOOOOD MOOORRNNNIIINGGG!!!!!!! Great video 😃👍🏻 - ONLY problem is Pace did NOT invent “creative financing 😉 “ nor Subject to - shoot I did those kinds of deals back in the early 90’s 😊 - He is great at the and has built a WONDERFUL machine, pero not the “inventor” - details and accuracy matter right? Because otherwise, we may discount all the good stuff by little errors like that 🥴 - And I certainly wouldn’t want that for you or Pace 🤗 - have an amazing day!!!!!!! 🤩
Hello I’m Marcella Sutton! I reside in Fayetteville NC. I’m pretty good at structuring terms. I also can help comp. 😊
I'm newbie.... What are the previous homeowners' advantages aside from the mortgage on the take over? Do they get cash? In Indonesia, when we take over the mortage, we also have to pay some money to previous homeowners.
They may get cash if there is any equity, but often they are in a bad situation that they cannot get themselves out of. Often the house cannot be sold through traditional means because they owe more than they could sell it for.
Proud to be a part of the Subto community. A community focused on giving and paying it forward. What do you need, and how can I help?
This is golden
💡 I'm trying to understand...What would be the reason a seller would agree to this? Are there any benefits to them?
I'm a SubTo student of Pace's and this stuff truly works. If you're interested in lending a deal, I've got too many deals to count 😀
@_CodieSanchezCT_ Gladly. How do I contact you?
I would love to learn
BIG question here... How does mortgage eventually get into my name without a refi? I'm trying to acquire a large piece of property near me that isn't selling.
Another question... He mentioned agent still gets their 3% can someone explain me how that works if it's no money down?
I’m confused about what happens if they end up defaulting. Does the original seller just get screwed?
@alexarobinson2850
In case of default, the original owner get the house back, get to keep the down payment and put the house for sale again. Double deep for the original owner 🤩
Robert G. Allen was doing creative finance years ago, but I love Pace!
I’ve something special for you..
So glad to be a part of the subto community, even when I'm based out in California 😆Pace has taught me so much and has helped me add to my portfolio without going through the bank!! Would love to connect and work with you all so we can all make money together
Hi Ethan I’m interested and live in Northern California Sacramento area. Would you like to connect sometime?
Proud SubTo community member in Arizona, buying here in AZ and Colorado. Simply put, Pace and this community has brought me to a complete paradigm shift in my mindset. One of the best decisions of my life to join an amazing community of people and learn from the G.O.A.T. of creative finance. He is the REAL DEAL and LEGIT! Yes, this has been around for a long time, but Pace has really pioneered making it understandable and executable. Lots of valid concerns/questions in the comments here that can be explained in detail and have safeguards in place to handle, a 15 min video is not enough time to fully go in to everything.
Always looking for new lenders, buying more deals, and helping others. I am also always happy and willing to answer any questions on SubTo and creative finance. Reach and connect with me! What do you need and how can I bring value to YOU!
where in COlorado are you?
@@ed9405 I am in Phoenix metro, but one of my business partners and one of our markets is in Denver metro.
Creative finance is SO Huge for people who didn't grow up with proper Business or financial literacy. I know people who have their BBA who don't fully understand the industries they're in. Many Americans who fell into our current consumer model of capitalism are starting to wake up, are finding it next to impossible get out of the hole the consumer model put them in.
Creative and seller finance needs to be developed to ensure protections for all parties, and brought to the mainstream to allow new avenues for those who want to build wealth they can share with their families and communities.
My team and I are building a platform to make this a reality. And there aren't any better Educators on this subject then @CodieSanchezCT and Pace Morby.
Codie's content has straight up saved my life, and now my team and I want to streamlines everything she teaches into 1 platform, making it easy for anyone with vision, drive and dedication, to actualize their Dreams.
We would Absolutely Love for @CodieSanchezCT to be a part of our journey, but barring that, we would sincerely appreciate and be indebted to you for any direction and guidance you might be able to offer.
Not so easy to find sellers here in Ohio to say yes to that. I've offered 5 times to sellers to do this and looked at me like I was a scammer. Sellers want it done in cash. Theses types of sellers are few and far between. If your lucky enough to find someone in desperate times.
Hey Codie you are AWESOME!! Been following you for a while!
Pace’s Subto member here from the Bay Area, I need to get started with a boring bzzz, any body here already doing it??
Vamos!!
Best
Roni M.
I’ve something special for you...
Ok more questions, still on the win. At the 9:02 point in the video, then when does the homeowner get their equity returned? Or are these all homes where the homeowner is upside down, didnt have any equity in it and are willing to walk away. This is the part Im not getting
Quick question: how do the owners of the properties get their equity out when they do creative financing this way?
All depends the amount of equity, if the owner needs some cash right after closing escrow and/or the owner finance the equity (simple interest)
It is amazing how this works for both sellers and buyers. By the way Pace Morby is my mentor 🤩✌🏼
@@verenicequiroz ??
0:45 seems as though these deals are made when the remaining mortgage is greater than the value of the property (i.e. there is no equity)
I’m also part of the SubTo community with the absolutely amazing Pace Morby. In the process of learning, networking and helping others and myself do deals! Would love to connect with other like minded people on here! We’re in the Phoenix AZ market but are also working in Northern Utah, and the Richmond VA area.
We are actively searching out subto’s to fix and flip and deals to flip to other investors so they can buy and hold.
I’ve something special for you...
This is great information! I just fell upon your channel & watched a few videos, as well signed up for your newsletter. I am retired on a decent pension, but can use more for enjoyment & a legacy for my boys. I am looking into what I want to do as a side hustle & will be reading some of the books you recommended. I do not own a home & would like to find a home I could live in, & find other homes to use as rentals, etc or selling. Can this be done for our first home without going thru the bank, as our own home? I’m paying off my $6000 debt in three months & will be saving the $2000 each month afterwards along with my tax returns. What top three books out of your list would you recommend for me to read first so I can get on my first steps? I will continue to learn more from your videos. Thank you for your channel! I am enthusiastic about what you’re sharing! It helps me feel like it’s not too late for me. ❤
Start your FREE, risk-free trial today & use promo code CODIE for 30% off your first 3 months as a paying subscriber. Just go to constantcontact.com/CODIE to get started with this offer.
Check Out 7 Ways to Buy a Biz for $0 Here: contrarian-thinking.ck.page/buy-biz-with-0
The music is too loud. Very distracting
There are NO FREAKING SECRETS! People have been doing this FOR DECADES! STOP ACTING LIKE THIS IS BRAND NEW OR THIS GUY HAS SOME SECRET INFORMATION. My goodness! I'm sorry it's just annoying when people say they have secrets that aren't secrets at all! Or new information that's been out for decades! If not centuries!
Creative finance is SO Huge for people who didn't grow up with proper Business or financial literacy. I know people who have their BBA who don't fully understand the industries they're in. Many Americans who fell into our current consumer model of capitalism are starting to wake up, are finding it next to impossible get out of the hole the consumer model put them in.
Creative and seller finance needs to be developed to ensure protections for all parties, and brought to the mainstream to allow new avenues for those who want to build wealth they can share with their families and communities.
My team and I are building a platform to make this a reality. And there aren't any better Educators on this subject then @CodieSanchezCT and Pace Morby.
Codie's content has straight up saved my life, and now my team and I want to streamlines everything she teaches into 1 platform, making it easy for anyone with vision, drive and dedication, to actualize their Dreams.
We would Absolutely Love for @CodieSanchezCT to be a part of our journey, but barring that, we would sincerely appreciate and be indebted to you for any direction and guidance you might be able to offer.
Lease option deals
Where can I find Pace?
80% of homeowners saying yes to sub2 on expired listings? BS. The most motivated leads are pre-foreclosures and foreclosures take $ to pay arrears. There is always money needed for a real estate transaction. Anyone that tells you differently is trying to sell you a course. Oh and, a Mortgage wrap is by far the best exit strategy for a sub2 deal. ✌🏼
I’ve something special for you...
I am in the Subto community and I’m in the San Antonio, TX market. I have done 2 deals in the last month, I have the HUDs to prove it! If you want to learn from one of Pace’s students, hit me up!
Yes, do the deal in Austin plz
I’ve something special for you..
Hey, I am from subto. I live in Texas
How do you cover the built up equity that the previous owner built up in the house?
A MAJOR part was left out. What happens if the mortagee stops paying and the bank comes and takes back the house??????
Yes, and no response.
The original owners credit gets F****d!
The original owner get the house back (clause in the contract in case default). The orinal owner get doble dip by getting the house back, keeping the down payment and can put it for sale again 👌🏼 some original owner may wish the default 😆
I was wondering the same question. Also how will the owner feel comfortable still having the mortgage in their names and feeling comfortable that I would pay every month like I said?
I would like to do this for myself so I can own a home. I need more info please! Is it really just calling the Seller and taking over their mortgage? Sounds too easy, what am I missing?
Found your channel about 3 weeks now, and now my mind feels like it was a paper plate with water floating in an ocean I had no idea about now I need to learn and try mote...question : would a nail salon and spa that's been around for 25 years be considered a " boring business"
How would this work in Aust, loan repayments are higher then rents??
Question: I take over the house sub to, I put a tenant in so I can pay the mortgage, the tenant stops paying rent, it takes months to evict the tenant, I can't pay the mortgage. What happens to the original owner's credit rating?
ʀᴇᴀᴄʜ ᴏᴜᴛ ᴏɴ ᴡʜᴀᴛsᴀᴘᴘ ғᴏʀ ᴘʀᴏғɪᴛᴀʙʟᴇ ᴛɪᴘs ☝️☝️✅_...
I want to know also.
Answer?
The answer is, this whole thing is bogus! This is the most ridiculous thing I ever saw. No homeowner will hold a mortgage while giving away the deed to a house for someone to play renter with it. Its ludicrous to even think this will literally happen. Are you out of your mind?!
If an owner can't sell a house, they usually rent it out and still keep it on the market for sale. There's no limit to how long a house can be on the market either. To think videos like this exist is why these financial problems occur in our economy. Everyone is crying "creative financing" as a means to say find a creative way to screw the system by avoiding the proper way of doing business. Of course, not every system is perfect and at times, there's loopholes but it not right or legal in some cases to exploit those loopholes.
This video comes with a disclaimer that says they are opinions and not financial advice. If any of this content was true and legal, everyone would already be doing it but since its just not the case, they protect themselves with this disclaimer to avoid responsibility for the content that's being put out there as a way to find the financial scam that works best for you.
Ladies and Gentlemen, 20% Down gives you an open door to real estate. Anything less, you might need to qualify with financial and legal programs to assist you. That's fact. If you can't afford to buy a house, its not a right, its a privilege. You gotta work hard for the things we want in life. That's also fact and that will never change.
@@StncRev That’s what I thought. Also, I noticed that they offer the houses available on this “system or scheme” to a list of their own “students”! The ones that comment here things like: “hey, this program is amazing! I started from 0 and now I have a portfolio of 10M/100M.” It’s like a pyramid scheme where they generate the people that will take this houses to keep the flow going and attracting more people, and so on and so forth.
I was kind of excited about this channel because I saw an interview with it’s owner, but I guess in this world everything is just about “how can I squeeze some people so I can get more of that thing called money, which is finite and it’s never enough?” Money is not just created, it comes from one place and goes to another. For someone to make a pile of sand on the beach they have to make a hole in another area. Nobody creates sand from nothing, and nobody creates money from nothing, it has to be taken from somewhere or someone else.
Dope
Codie offers a masterclass video which is live and about 60 minutes in length. She will give you a bunch of rah rah statements and make basic statements that you should have already known for the first 40 minutes and when that's done she will fly through and try to cram the relevant information into a tiny time window. This is done strategically so that you will have received just enough information to make you have a lot of questions. The questions can of course be answered in the future paid content that she offers. I tried to ask questions in the live set and got ignored and then banned because I asked the same question as about a hundred other people.
I'm torn about Codie. The thing you described doesn't bother me, as her business is, in fact, a business, and businesses don't last long if they give away all their content for free. That's fine. She also strikes me as someone who actually knows what she's talking about, which, if true, makes the information she provides worth paying for.
What bugs me is that her messaging/marketing has started to contradict itself. At first, she was all, "I'm here to help the little guy learn how to get out from under the 9-to5 grind and live the life he/she wants to live" and "let's keep small business alive by having small business owners buy them, instead of having huge faceless conglomerates take over all aspects of our communities!" She advocated for mitigating risk by buying existing successful small-to-medium businesses, and her role was to hold your hand through the process.
Then, suddenly, she started doing that repellant "never stop chasing more and more money" and "your goal in life should be to become Elon Musk" and "small businesses are for chumps - do everything you can to amass more and more (and eventually you too can become the owner of one of those faceless conglomerates I claimed to hate a moment ago)" and all the other cliches that all the gross "I'll teach you how to get rich quick for the low, low price of $X" scam-artist "entrepreneur" bros do. All she's missing is an opening shot of her standing in front of a Lamborghini in front of a McMansion.
The reason I'm troubled by this (aside from the obvious) is that you can't be both. These two stances - financial helper to the little guy vs aspiring-billionaire instructor - are diametrically opposed to each other. Which makes me think that this is all a scam after all. Which makes me sad, because I so, so, so wanted to believe in her desire/ability to share genuinely helpful information.
im a subto ✌🏼 student and also follow Codie, grateful these 2 finally got together! both core strategies they preach work hand-in-hand 👌🏼
Two of my favorite CZcamsrs! I’m part of the sub2 community.. love it
This seems off. How do they get around the Due on Sale clause in mortgages? And the seller stays on the mortgage until maturity? If the "buyer" decides to stop paying, the previous owner is still on the hook. What am I missing here?
How do you get the home owners phone number of the expired listing
Doing this can you refinance or do a HELOC
I don’t think that is 100% true, if you transfer ownership the lender will call for a full pay out of the mortgage before transferring ownership
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Oh yes 👍 ✌️✌️✌️ zero money down!! 😮😮😮
So you take over the mortgage payment, or does the seller then not require payment of the difference that they have already repaid themselves, or perhaps even more money for a successful takeover of the property?
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I love this video
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So how does the seller get their money out of the deal If you take over the mortgage ? And where does the agent make their money?
do this work on commercial real estate ?
love your hair!
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I’m a subto student. I can assist with the strategies Pace mentioned. Let’s squad up
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Let me get this strait. You convince a seller to transfer the deed to your name while the mortgage stays on theirs? And the bank is somehow cool with that? What about the note on that property? So many questions unanswered.
How much does the title company cost and who pays
What about the Morgate payment already done on the house?
Let's say 300K out of 500K is pending, Seller has already paid 200K in Morgate, how does that account for in this?
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Ive usually watch a few videos before I subscribe to a channel. For someone who owns several businesses, myself; I feel a lot of her vidz are click baity, as some (not all) of her advice seem a bit shady, unethical, and illogical. Everyone does business different is fact, but thats how you know who to stay away from. Good luck to all those on their adventures. Just be sure to follow the right people.
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Sorry if i missed him covering what type of homes these are. All I got was that they were trying to sell and realtor was unsuccessful. The homeowner could have a ridiculously high asking price because they bought too high, or more than likely its a situation the realtor got the contract, then took off for the beach waiting for the deal to come to them.😅
The question of being legal is incorrect. The question is does this invalidate contracts. The answer is yes, at least in FL and CA. First off, you can not get a transfer of the deed into YOUR name if there is a mortgage. The deed is in both the lender's and mortgage holder's name. The mortgage, more than likely, is not a commercial mortgage, but an owner occupied mortgage. Most homeowners who have a property and then go to rent it out don't realize that their mortgage requires them to be occupants. Then you run into the insurance issue. The mortgage company will require insurance on the property. How is that handled when the insurance company pulls the recorded records that shows that the original mortgage holder name is on it with XYZ lender, not your name.
This practice ended when banks stopped offering assumable mortgages, which I think was in the early 1980s.. There used to be mortgages that you could 'transfer' to someone else that the new mortgage holder could assume the existing mortgage, as long as they passed credit checks. At that point, the mortgage would now be in your name and the legal paperwork regarding ownership with the county/city was taken care of.
This method also brings up IRS issues. The seller is still liable for the note to the lender. Does the seller get to claim the interest deduction? The buyer is renting it, does the buyer want to claim depreciation on the property? Does the buyer try and claim an interest deduction?
The seller could lose out on the 2 of 5 cap gains issue. If they had the property for 20 years, bought it for 100k, the note was paid off, then 3 years ago took out a 100% LTV note at 3% for 400k, then sold it. As they still have a note on the property, how does the IRS treat the seller on that sale? Is there a cap gains on the 300k?
I still think that the bank will not care that much as long as they are getting paid. However, the bank is well within its rights to call in the note. Then what happens? You have three parties involved. You have the original owner, the 'buyer', and the renter. The bank's name is still on the deed, the bank MAY have allowed the 'buyer' onto the deed. The buyer may have gotten the seller to release the deed via quit claim and filed that. If/When the bank calls the note, then the 'seller' has no cash, the buyer has shown that they have no cash. Does the buyer get a new note? Does the buyer walk? What happens to the lease?
There are lots of things that are NOT explained in this video. The thing I respect the most is that they were honest in that it took between 50 and 100 calls to get a deal.
My husband and I are Sub to students and proud to be a part of the community ! We are based out of Anchorage, Alaska! How can we help?!
This is awesome 👏 Subto student located in AZ and NC market. Building that portfolio! Let’s link up and do some deals together!!!
Any available in VA?
What happens with the equity in the home?
In a subto deal, there is often very little equity, which is why the seller is unable to just sell on the mls. After closing costs and brokerage fees, they would have to bring money to the close. If they do have equity, they may agree to a down payment and seller finance the balance.