529: “Free Real Estate”, Negotiations, & Market Cycles | 'Takeover' Ep w Pace Morby

Nov 9, 2021

Dive into the world of creative financing as experts discuss how to overcome cash shortages and credit issues in real estate. Learn about innovative tactics like novation agreements for negotiating deals and the impact of current market cycles. Discover whether forming an LLC is essential when purchasing properties and uncover the advantages of outsourcing tasks to boost productivity. Lastly, find out what to do if a seller won’t budge on offers, ensuring you navigate negotiations effectively.

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INSIGHT

Market-Dependent Strategies

Creative financing strategies change with market cycles, especially concerning equity.
In low-equity markets, "subject to" is powerful; in high-equity markets, seller financing prevails.

ANECDOTE

2007 vs. Today

Pace Morby contrasts the 2007 market with today's, highlighting key differences.
Unlike the fictitious demand of 2007, today's market faces a genuine supply and demand issue.

ADVICE

Cash-on-Cash Return

Calculate cash-on-cash return by dividing annual net income by total cash invested.
Prioritize deals with higher cash-on-cash returns for better profitability.

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