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29: Creative Financing: 2022’s Antidote to High Interest Rates

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Subject to is a strategy that most real estate investors aren’t aware of. It’s often done to buy deals with no money down, surprisingly low interest rates, and without closing costs or any other upfront fees. It sounds almost too good to be true until you understand how subject to works. For the past two years, subject to deals slowly started dying out. Since homeowners had equity in their properties, there was more incentive for them to sell on the market. But, over the past few months, things have changed in a dramatic way.

Pace Morby, the internet’s creative financing poster child, has seen subject to deals explode as desperate sellers try to get out of homes they didn’t think they’d be stuck with. This presents the perfect opportunity for investors who don’t have a lot of cash but want to buy real estate as the housing market hits a soft spot. On today’s show, Pace will walk through multiple real-life deals that helped him create six-figure cash flow without any money out of pocket.

But Pace isn’t only interested in subject to deals. He’s bought numerous seller-financed properties as wealthy sellers are looking to exit without paying a high agent commission or capital gains taxes. Pace sees serious opportunities in multifamily and commercial real estate. Much of this means that more deals are available for any buyer willing enough to pick up a phone and talk to a seller. The question is: will you place the call?

In This Episode We Cover

The subject to strategy explained and why 2022 presents a perfect opportunity to try it

Creative financing and how to buy properties without using the banks or traditional lending

Building six-figure cash flow with no money down and rock-bottom interest rates

The pain vs. gain seller and which strategy works better for each seller 

The antidote to high interest rates and why many sellers are willing to give you a great deal

Housing market forecasts and why sellers need to start getting more realistic 

Why sellers choose to sell via owner financing and subject to strategies 

And So Much More!

Links from the Show

BiggerPockets Forums

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On The Market

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Connect with Other Investors in the “On The Market” Forums

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Dave’s BiggerPockets Profile

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Henry’s Instagram

James’ BiggerPockets Profile

James’ Instagram

Jamil’s BiggerPockets Profile

Jamil’s Instagram

Kathy’s BiggerPockets Profile

Kathy’s Instagram

Pace’s Episode on The “BiggerPockets Real Estate Podcast”

Subject To Real Estate Explained

Book Mentioned in the Show

Real Estate by the Numbers by Dave Meyer

Connect with Pace:

Pace/Yourself – Real Answers with Pace Morby

Triple Digit Flip on A&E

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-29

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