Subject to and seller finance are two different ways to buy assets with existing debt or paid off. Subject to means taking over an existing debt and becoming the new owner, while seller finance means the asset is free and clear, and the seller acts as the bank by financing the purchase. Subject to deals usually involve pain, while seller finance deals usually involve gain. Seller finance is popular for paid off real estate, which accounts for 40% of all homes in the US. Sellers choose seller financing for various benefits like tax benefits, avoiding real estate agents, no surveys needed, and more. Becoming the bank also frees sellers from managing properties, providing a win-win situation for both parties.
Patrick Donley chats with Pace Morby to discuss his new book, "Wealth Without Cash". You’ll learn how to build a portfolio of off-market deals without using your own cash, what the difference is between subject-to and seller financing, how to find motivated sellers, how to overcome common seller objections and create win-win scenarios, and much more.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
02:40 - What Pace learned from his father about real estate.
02:40 - How the story of an F-150 helps sellers understand terms and becoming the bank.
06:06 - What he learned from his first mentor.
06:06 - What the “bunny story” is all about and how solving people’s problems helps everyone.
06:06 - Why it’s a requirement for success to do things you don’t understand how to do yet.
06:06 - Why 85% of Pace’s deals are structured using creative financing.
06:06 - Strategies to find motivated sellers.
46:13 - What the process of creating Wealth Without Cash was like along with the video companion guide.
46:33 - Who the book is designed for.
50:54 - Understanding the 7 layers of your “why”.
52:18 - How creative financing provides a wide variety of tools to close deals.
52:18 - What the difference is between “subject to” and seller financing.
52:18 - Why his real job is as a storyteller and educator.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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