You're listening to the Sub 2 Breakhouse with Pace More Beyond the Wholesale Hotline podcast.

All right. So there's a deal in Vegas right now being sent to me from somebody who doesn't

understand creative finance. There's a seller who's in foreclosure, has a house. I

already know my exit strategy on that house would be a pad split. How do I know that? Well, I

texted Mandisa, who's my rep at PadSplit. You guys can go to split your pad.com. And so here's

the house. Three bed, two bath, thousand square feet. You see this carport.

Close that carport, make two more rooms. And I would turn this existing three bed, two bath house into a six bed two bath house. Why? Well, you'll find out at the end. I'll tell you the number breakdown.

I already know what I want to pay for this property. It's a subject two deal. I want to basically be no money out of pocket on this deal. I'm going to call her and I'm going to gather all the information before I tell her what I would do. This is a house in Vegas. Hey, Pace. Hi. The deal is sellers in foreclosure. Agent hasn't been able to sell the house.

This is all off market. Okay, so why is the agent involved then? So the agent brought it to me. He wanted me to give him a cash offer. So of course I did and it was like she would have had to bring like almost $100,000 to the table. So I know she's looking to sell because they want to move to Texas. But he was saying that she wants to stay in the house

until mid June, but she would looking to sell because they want to move to Texas. But he was saying that she wants to stay in the house until mid-June, but she would like to do like the whole sub two if possible before then. So she wants like a post-possession until mid-June. It's a horrible interest rate. I know. That's why I wasn't sure, but I was like, ah, I'll shoot my shot anyway. What is the agent want on the deal? So I didn't ask him yet. He just asked, how do I get paid? And I said, we would pay you. But I didn't tell him an amount. I didn't say how much. So that's still up in the air. Okay, I will buy the deal. There's only one exit strategy that will actually work for that house. Here's the problem you have. The sub two payment, if I took that

payment and I turned into a regular rental, it would lose money. Vegas is cracking down, Atlanta's

cracking down, and so short-term rental is not an opportunity. So I have one exit strategy that will

work, but I have to put a good amount of money into it. I want to get into the deal as little

as possible, like couple grand to the agent, couple grand to you, nothing to the seller, the house is mine. I will talk to him about that for sure. I've been in contact with him since February. So. Okay, call him up and say, my partner says he thinks there's a weird way we can make this work, but he would have to take over the payments, the existing payments, seller walks walks away with nothing. The seller needs to make the payments while she's in the property. Okay, I'm not going to let the lady live for free. Let me tell you a couple things. You're not one of my students, right? No, no, not yet anyway. I'm going to teach you something that I teach everybody. Buyers or liars. Sellers are worse. I know that line. And and agents are the devil.

Ooh, I didn't hear the last one, but I okay. I like it. Agents will lie more than a seller will lie.

And a seller will lie sometimes because they don't even know what the truth is. You will find out

the wildest things from sellers after you open escrow

and you're like, you didn't even know that you were in forbearance or you didn't know you were in foreclosure. Oh, no, I didn't know. So I think what's going to happen on this is that we'll open escrow and then we'll find out what's really going on. So I think you tell that to the agent. You call the agent and go, hey, look, we got a weird exit strategy that my partner is going to attempt to do.

It's going to cost a heavy lift.

We're going to have to

enclose the carport, spend a bunch of money to even make this work. The interest rate that we're going to take over is really not ideal. Do you know the highest interest rate I've ever taken over? Probably like 4%.

I just bought one today from one of my students.

...