All Forum Posts by: Pace Jordan Morby

We have had the due on sale clause called 4 times this month... but knowing your way around it is crucial. Either A: revert to a lease option with the option price being the mortgage balance when the option is executed... or B: Use an executory contract instead of SubTo. Land Contract. Contract for Deed. Agreement for Sale etc. I talk about this on my youtube channel. 

Hi! My name is Pace Morby and I would dare to say not many people, if any, have done more subto, seller finance, lease option type of deals than my organization. 

My youtube channel has 1600 videos on it and several of those videos are over 4 hours long. 

The main thing you need to know is WHERE ARE YOU LEADS or DEALS COMING FROM? 

ASK THIS QUESTION FIRST: WHAT WOULD YOU DO WITH THE DEAL IF IT LANDED IN YOUR LAP??? Wholesale it? Flip it? Or Hold it? THOSE ARE YOUR ONLY OPTIONS!!!! THATS IT!!!! Pick one!

Are you going to get your deals/leads from one of these sources: 

1. Direct To Seller. Challenging and expensive. Writing letters/Postcards. This is also doorknocking or driving for dollars. Cold calling. PPC,SEO, Facebook marketplace ETC. In order to do this strategy... you have to find a group of people that are MOTIVATED and likely to sell. For us the biggest lead source is EXPIRED LISTINGS.... Foreclosures etc. YOU NEED LEADS!!!! The challenge is here in NOT about creative finance...t the challenge is learning the discipline of working on leads and having courage to fail forward... this is why most people default to NUMBER 2. 

2. Direct to Agent. New people often use this strategy because they hope that the agent will help them find a deal. A lot of people find success with this but this is NOT my preferrred method... WHY??? Because most agents dont own their own real estate investment properties and are not taught on how to find good deals. So in essence you either have to A: Find agents that own real estate themselves and GET IT or B: you have to educate agents on real estate... which they dont like. 

3. Business to Business. Referrals. You can work with probate attorneys, I have several youtube videos on this. You can work with Financial planners. Most people wont put in the work to be honest. 

4. Direct to Auction. Foreclusure.com or similar. Sheriff sales. ETC. This is someone has already offered this on market. 

5. Wholesalers. This is pretty easy. I have a facebook group full of them selling deals. FREE facebook group with 90K members. 

6. Work for Someone else. A lot of people have come to work for me and then left to build their own business. Imagine working for someone who has already figured it out and you get the CHEAT CODE. 

GREAT QUESTION! I do about 1 -2 Subject To deals per day. This market has doubled my creative finance deals... so you are definitely asking the right person. I am also answering this question LIVE on my Youtube channel if you want to go watch it after this. 

1. Yes. We do Subject To deals all the time.... and yes you can LIVE in them because you own them. I have lived in a subject to house for the last 7 years. 

2. BEST LIST RIGHT NOW: Expired listings is AMAZING. You do not have to go through agents. No offense to agents, but they simply are a barrier to getting deals done. I prefer lists that do not involve them. That being said I do a deal a week with an agent and some agents are REALLY GOOD at creative finance... but most are not.... so avoid them.  SECOND BEST LIST is No Equity and 100+ days on market PLUS add the filter of loan origination dates between 2018 and Jan 2022. You can get these lists on propstream, batchleads etc. THIRD is high pain point like foreclosures. 

BONUS ANSWER: Free to go to the county BUT the best place to go is to a Title Company or Closing Attorney and get a list from them. You can ask my SubTo students in your area which title company they use!!! I just did a video for biggerpockets Youtube channel where I SHOW you how to do this. Should come out soon. I did it and recorded it so you can watch how to ask and speak to a title company about a free list. 

3. YOU NEED A COMMUNITY OF PEOPLE who will help you!!! I have hundreds of students in the detroit area who are doing deals. Both cash deals and creative deals. In fact we have students in every part of the country. Go to my free facebook group called CREATIVE FINANCE with PACE MORBY and find them there. THEY WILL HELP YOU!!!! 

4. We always close with a title company or closing attorney depending on the state we invest in. Arizona for example... title company. Georgia for example is a closing attorney. Depends on the state. 

Go find my SubTo Community and they will help!!!  We have the biggest gogivers in the industry. 
 

Joseph.... first off... congrats on taking action and jumping all over this!!!!

I have done a few thousand seller finance and subject to deals in my career. In my experience the seller is not looking to sell to an investor and most likely does not care whether you will cashflow or not. 

I would assume that this seller is not HIGHLY motivated and I would put them in the "follow up" category. 70% of our deals (we bought 15 this week) come from 13 follow ups or more. Our team does not try to create motivation... we try to wait for motivation through follow up. 

If you are looking for a deal TODAY that will give ZERO dollars out of pocket... and yes they are abundant... I would go FOCUS on motivated sellers. In fact Im typing as I do a youtube LIVE and Ill talk about a few deals this week I purchased with zero down and between those 15 deals our average interest COMBINED is less than 3%. 

Where are the motivated sellers?

A: ON MARKET.... Listed properties OVER 120 days on the market. I would never reach out to a broker/realtor and ask for creative terms with low down payment and less than 4% interest until they hit the 120 day mark. 

B. OFF MARKET... my preferred strategy. Go for Low Equity. Expired listings. Add a filter for homes that were originated in 2018 through 2021 and you will get ZERO down and VERY low interest. Go watch my youtube and Ill give a few examples. 

Great work man!!! 

I bought my own personal home utilizing Subject To. NO banks, no qualifying, no agents, no BS. Have you considered trying to buy a home Subject To? 

With 50K, you could buy 5-10 cash flowing properties SubTo or Seller Finance in Phoenix Arizona. 

Have you looked into buying a home Subject To or Seller Finance? I have purchased about 40 rentals in the last 5 months by utilizing that strategy. Never pulled my credit, never had to submit my credentials etc. Follow me on instagram to see me do this strategy on a daily basis. 

Will the seller allow you to purchase it on terms? Most of the properties I purchase are on seller finance. Have you spoken to the seller yet? 

A lot of the homes I am buying, we take over existing mortgages on them. Meaning I do not have to qualify or put a lot of money down. They all cashflow and these deals are EVERYWHERE. Our average purchase is 150,000