Hey guys, Pace Morby here. Welcome to Wholesale Hotline Podcast. Today, we're going to be talking about

wholesaling and how you can get started. But I want to tell you, wholesaling is not just an amazing

way for you to get started in real estate, but you can also build cash flow and build a portfolio

in the process. Today's episode, you will walk away with tremendous notes. And I want you to remember

we do a live episode every Monday night

over on my YouTube channel, YouTube.com forward slash pace morby. Head over there and you can meet

other audience members and do deals in the live chat. Remember to subscribe, give us a little bit

of love, and make some comments in the show notes down below so we know what to talk about in the future

enjoy today's episode everybody wants to know this now i do a lot of novation agreements i teach novation agreements

but i rarely talk about it it's a little bit more of a ninja strategy in terms of acquiring and fixing and flipping a property. Now, first thing you want to know about

a Novation Agreement is that the strategy with a Novation Agreement is always going to be a

purchase and flip. You're not going to hold it. It's not a long-term investment. Novation

agreements are a fix and flip strategy only. Now, there are

three types of ways to do a novation agreement. First and foremost, let me explain to you what a

nomination agreement is. A novation agreement is where I go to a seller. Let's say that a seller has a

house and let's say this seller's name is Eric because this guy, Eric, has a videography business and he's pretty dope. But you know what? Eric's like, I'm ready to sell my property. I want top dollar. I'd say my house is worth $400,000 on Zillow or whatever, right? MLS, whatever. That's the ARV, $400,000. And he knows that his house has kind of run down because he's been treating it like a studio and beating the shit out of it so he knows that it's kind of run down he needs to

sell it for at a discounted price there's all sorts of investors that are offering like 275 right

that's where typically most investors are going to offer is 275,000

Eric says you know what dude like that's not good for me I don't want that 275,000 dollars but you, you know what, dude? Like, that's not good for me. I don't want that $275,000. But, you know, if I could get $300,000, I would sell. Well, the challenge there is that everybody's offering him $275. So the obvious answer is for a straight cash deal. The market is telling you, Eric, that this house should be sold for $275,000.

A Novation Agreement is technically your ability of telling the seller, I want to fix and

flip your property without ever buying it.

Yes, that is correct.

...