236: Rookie Reply: Creative Financing 101 with No Cash, Credit, or Credentials w/Pace Morby

Real Estate Rookie

BiggerPockets

How To, Entrepreneurship, Business, Education, Investing

4.7 • 1.8K Ratings

🗓️ 19 November 2022

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Pace Morby’s name is synonymous with creative financing. In fact, you could say that he’s brought back a revival of strategies like subject to and seller financing. He’s been so successful with these strategies that Pace has been able to buy over six hundred rental units this year without using a single bank loan! He believes that now, even with rising interest rates and high inflation, rookie investors have a chance to get better deals than ever before! Welcome to this week’s episode, where we’re live from BPCon2022! We’ve brought in Pace Morby, friend of BiggerPockets, to talk about everything related to creative finance. If you’re brand new to this topic, don’t be alarmed. While some of Pace’s methods may sound complicated, they aren’t actually so difficult in practice. And in just one episode with Pace, you could be convinced to try them out on your next deal! Pace shares how he’s finding deals, where he’s buying, the negotiation tactics he uses, and why now may be one of the best times to buy. He also discusses why sellers are so open to trying alternative financing options, how you can pick up real estate deals for zero dollars down, and why creative finance options offer far better returns than bank financing in 2022, 2023, and beyond! In This Episode We Cover Creative finance explained and why now is a great time to try it Seller financing vs. subject to, and when to go after pain vs. gain How creative financing builds a win-win scenario for buyers and sellers Whether or not rising interest rates and a shaky housing market affect these strategies Negotiating with a seller and how to sweeten your offers so you get deals on your terms Where to find the deals best-suited for seller financing and subject to And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Ashley's Instagram Tony's Instagram Real Estate Rookie Facebook Group Zillow MLS Airbnb Craigslist Kelly Blue Book OfferUp Facebook Marketplace Leasetrader Opendoor LandWatch ListSource PropStream Weststar Loan Servicing AirDNA 300 Doors, 100% Creative Financing with Pace Morby The Essential Elements of the Creative Financing Toolbox Connect with Pace: Pace's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-236 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is Real Estate Rookie Episode 236.
0:04.4	People confuse debt and ownership, meaning I can take over payments on a house and people go,
0:11.5	how? Don't you have to pay off the debt in order for you to become the new owner? No, I don't.
0:17.6	Think about it this way. If I go into a grocery store and I use a credit card and I buy a bunch
0:22.5	of groceries, who's the owner of those groceries if I use a credit card to buy it? How do you know that?
0:27.5	If I use somebody else's money, how am I the owner of those groceries? My name is Ashley Care
0:32.7	and I'm here with my co-host, Tony Robinson. And welcome to the Real Estate Rookie podcast,
0:36.6	where every week, twice a week we bring you the inspiration, motivation, and stories you need
0:40.5	to hear to kickstart your investing journey. And I usually read a review at this point, but I
0:44.3	didn't pull one up. So I'm just going to ask you guys, leave us an honest rating review on whatever
0:47.6	platform it is you're listening to, and we'll give you a shout out on the show. So Ash, we have
0:51.6	an amazing guest, one of my favorite episodes we've done recently. We have Pace Morbure in the
0:55.2	podcast. And this was like an encyclopedia of everything subject to. And we are going to have
1:00.5	him back on and do a live workshop. So we're super excited about that too. But Pace talks about
1:06.3	creative financing. So doing subject two deals and seller financing breaks down what the
1:11.4	differences between them, who is, you know, the motivated seller to actually want to do these
1:17.2	deals with you, how to negotiate what the steps you take to actually get these deals done.
1:21.3	He also talks about how a truck with over 300,000 miles is what prompted his whole journey into
1:26.6	creative finance. It was a really great store. So make sure you listen for that as well. So hold on
1:30.4	before we dive into today's episode, let's take a quick break. We know you've heard it before.
1:36.1	Cash flow is getting very hard to find. There's always long distance investing, but you may be thinking,
1:41.9	I don't have a team enough experience or the market knowledge to get in. That's where you're wrong.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.