Pace Morby has Blown my Mind!!

Cleveland, Ohio
Creative Real Estate Financing
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Pace Morby has Blown my Mind!!

Beth Anderson
Geauga County, OH · Member since 2024 · 38 posts · 23 votes

I am so excited about what I've been learning from Pace. I'm consuming his content as fast as I can. I have purchased his book bundle from Bigger pockets, watched all of his podcasts on here, and I am so amazed! I have been stuck in a rut of thinking that we have to buy our first deal, a house hack, with traditional financing. I just realized tonight that if I can get a place on seller financing or subto, I don't HAVE to move my family into a multi-family for one year before we can move on and move up! So many doors are open to me now!! But I do have so many questions. Can anyone help me with these? I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.

1. If I buy a place on seller finance and it needs rehab, where do I get the money for that rehab and how do I pay it back?

2. Should I still get a home inspection before I buy?

3. How do I find a title company that will know how to handle seller finance or subto?


Thank you for any advice! 

Beth

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Beth Anderson:

I am so excited about what I've been learning from Pace. I'm consuming his content as fast as I can. I have purchased his book bundle from Bigger pockets, watched all of his podcasts on here, and I am so amazed! I have been stuck in a rut of thinking that we have to buy our first deal, a house hack, with traditional financing. I just realized tonight that if I can get a place on seller financing or subto, I don't HAVE to move my family into a multi-family for one year before we can move on and move up! So many doors are open to me now!! But I do have so many questions. Can anyone help me with these? I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.

1. If I buy a place on seller finance and it needs rehab, where do I get the money for that rehab and how do I pay it back?

2. Should I still get a home inspection before I buy?

3. How do I find a title company that will know how to handle seller finance or subto?


Thank you for any advice! 

Beth


 I would be careful about drinking the kool-aid to fast. It is not as "easy" as many make it out to be. There are roughly 4.5M home sales a year, of which around 1% are seller financed/sub-to. So that is approx. 60,000 homes a year. The average down payment on seller financing is 25%. So the "I can get a seller financed home with zero down", is extremely rare and if you asked the 100,000+ in the public FB group how many have done that, its probably not a large amount. 

Even if yuo do get a home in that fashion, just realize you are immediately over leveraged and underwater in most instances on that property. 

It is great to be enthusiastic, but realize there is also a huge sales and marketing tactic to get you to buy into those programs. 

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  • Ellis San Jose
    Specialist · Westlake Village, CA · Member since 2010 · 1k+ posts · 781 votes
    2y

    1) Rehab money can come from 2nd Mtg/heloc if you have enough equity. Private lender or JV partner. How you pay it back is with your income so make sure it's within your means. You can possibly refinance with a new 1st mtg & payoff the existing 1st & 2nd IF you have created enough equity with the rehab.

    2) Yes, get a home inspection.

    3) Title company & escrow should be able to handle a seller finance. Sub-to not as easy to find. I believe there are Transaction Coordinators Pace's group uses that can provide a recommendation in your area.

    2Reply
  • John CardinalePro Member
    Member since 2021 · 76 posts · 44 votes
    2y
    Quote from @Beth Anderson:

    I am so excited about what I've been learning from Pace. I'm consuming his content as fast as I can. I have purchased his book bundle from Bigger pockets, watched all of his podcasts on here, and I am so amazed! I have been stuck in a rut of thinking that we have to buy our first deal, a house hack, with traditional financing. I just realized tonight that if I can get a place on seller financing or subto, I don't HAVE to move my family into a multi-family for one year before we can move on and move up! So many doors are open to me now!! But I do have so many questions. Can anyone help me with these? I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.

    1. If I buy a place on seller finance and it needs rehab, where do I get the money for that rehab and how do I pay it back?

    2. Should I still get a home inspection before I buy?

    3. How do I find a title company that will know how to handle seller finance or subto?


    Thank you for any advice! 

    Beth

    3. If you know any other investors or wholesalers, you could ask them about the best title companies around. Also ask in local meet ups like REIA meet us or the like about the best title companies to work with for investors. Finally, a realtor with a lot of
    experience should be able to help you find a title company that can facilitate owner financing. 
    1Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    Hey! I love your enthusiasm for creative financing in real estate however it appears that this is all very new to you and that can be risky. In my opinion, having an experienced partner or mentor is crucial to helping you navigate the world of subject-to-and-owner financing. They can fill knowledge gaps, manage risks, and provide valuable insights that YouTube and books might miss. In this industry, ignorance can be risky, so having a mentor is key to success. Good luck on your journey!

    [email protected]443-812-0357
    Schwartz Realty Group5116 Reviews
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    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Beth Anderson:

    I am so excited about what I've been learning from Pace. I'm consuming his content as fast as I can. I have purchased his book bundle from Bigger pockets, watched all of his podcasts on here, and I am so amazed! I have been stuck in a rut of thinking that we have to buy our first deal, a house hack, with traditional financing. I just realized tonight that if I can get a place on seller financing or subto, I don't HAVE to move my family into a multi-family for one year before we can move on and move up! So many doors are open to me now!! But I do have so many questions. Can anyone help me with these? I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.

    1. If I buy a place on seller finance and it needs rehab, where do I get the money for that rehab and how do I pay it back?

    2. Should I still get a home inspection before I buy?

    3. How do I find a title company that will know how to handle seller finance or subto?


    Thank you for any advice! 

    Beth


     I would be careful about drinking the kool-aid to fast. It is not as "easy" as many make it out to be. There are roughly 4.5M home sales a year, of which around 1% are seller financed/sub-to. So that is approx. 60,000 homes a year. The average down payment on seller financing is 25%. So the "I can get a seller financed home with zero down", is extremely rare and if you asked the 100,000+ in the public FB group how many have done that, its probably not a large amount. 

    Even if yuo do get a home in that fashion, just realize you are immediately over leveraged and underwater in most instances on that property. 

    It is great to be enthusiastic, but realize there is also a huge sales and marketing tactic to get you to buy into those programs. 

    7e investments53 Reviews
    WebsiteView Page
    11Reply
  • Sam YinPro Member
    Los Angeles, CA · Member since 2021 · 583 posts · 738 votes
    2y

    @Chris Seveney

    I was going to use your first and last line, but you beat me to it.

    DITTO! High energy in your post, but tread carefully.

    1Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Beth Anderson:

    I am so excited about what I've been learning from Pace. I'm consuming his content as fast as I can. I have purchased his book bundle from Bigger pockets, watched all of his podcasts on here, and I am so amazed! I have been stuck in a rut of thinking that we have to buy our first deal, a house hack, with traditional financing. I just realized tonight that if I can get a place on seller financing or subto, I don't HAVE to move my family into a multi-family for one year before we can move on and move up! So many doors are open to me now!! But I do have so many questions. Can anyone help me with these? I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.

    1. If I buy a place on seller finance and it needs rehab, where do I get the money for that rehab and how do I pay it back?

    2. Should I still get a home inspection before I buy?

    3. How do I find a title company that will know how to handle seller finance or subto?


    Thank you for any advice! 

    Beth


     Be careful, he can blow your wallet too! 

    Hurst Real Estate, INC4.989 Reviews
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    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y

    your getting the MLM  enthusiasm you deserve it pitch. reality is far different as stated above.

    Sub to is very hard to do . its usually distressed assets etc etc.

    But do check back in when you land one and let us know how you did

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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    4Reply
  • Beth Anderson
    OP
    Geauga County, OH · Member since 2024 · 38 posts · 23 votes
    2y

    Thank you for your genuine concern, everyone! I have so much to learn!!!

    Beth

    1Reply
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