Understanding Subject To Real Estate Investing - Part 2

Welcome to Part 2 of our walkthrough on subject to real estate investing. In this video, we'll take a closer look at how you can become the owner of a property while the original owner stays on the mortgage. Specifically, we'll be breaking down the process of how this is done, and I'll be explaining it to Alex in real-time so you can follow along.

This video is perfect for beginners who are new to subject to real estate investing, as well as anyone who needs a refresher on the topic. It's also a great resource to share with someone who may be struggling to understand the concept of subject to.

So if you're ready to learn more about subject to real estate investing and how it can help you achieve your investment goals, be sure to tune in to this video. Don't forget to like, comment, and subscribe to our channel for more great content on real estate investing!

► Join The Subto Community & Learn Creative Finance Directly from Pace:✌🏼

► Join Our Free Facebook Group to Connect with Pace and his Students:

► Subscribe To My Second Channel:
/ @keepupthepace1

► Listen To Pace and His Students Share Insider Secrets To Real Estate Investor Success:

► The Ultimate Exit Strategy for Subto Deals:

► Become a Top Tier Transaction Coordinator and Make Money Doing The Paperwork For Real Estate Transactions:
—----------------------------------------------------------
► Get Our Vulcan7 Code:

► Get Our BatchLeads Code:

► Get Access To Privy
—-----------------------------------------------------------
🔌 PLUG IN & SUBSCRIBE 🔌
Instagram: / pacemorby
TikTok: / pacemorby
LinkedIn: / pacejordanmorby

🗝🗝 FREEBIES 🗝🗝
#RealEstate #Investing #CreativeFinance #Subto #RealEstateInvesting #PropertyDeals #RealEstateTips #Finance #InvestingTips

🚧🚧🚧 DISCLAIMER 🚧🚧🚧

❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a YouTube video for entertainment purposes ONLY ❎

[kp_hoodyheavy]

This 2 part series so far has been so beneficial. Thanks Pace and Team

[tonyluchiano]

There was going to be a texting script. That's what It said at 8:20 of the video. it said to click below I don't see a link for that Thanks

[andyscorner]

The minute that the deed is recorded the "due on sale" clause is activated notifying the bank ( SLS) that ownership has transferred. SLS now contacts you saying that have a lien on the property and that you must pay off the loan or be foreclosed upon. A) you can obtain a mortgage and pay off the existing mortgage or B) you hopefully can convince the bank to allow you to continue to make the payments. If the bank does not like option B, you either obtain a mortgage or get foreclosed upon. My question is simple: since you, Pace, are not the mortgage holder, doesn't Alex get the foreclosure notice and he is obligated to pay the loan? A mortgage is simply a lien on the property, so who is responsible for paying that lien off?

[nellosnook]

1. There are two essential elements to this transaction:
2. Seller approval of the contract terms for transferring the seller’s title to the property into the name of the transferee.
3. Legally validating the contract by processing the paperwork through a title company.
4. As to WHY a seller would comply with such a title transfer contract, essentially, it would be for the relief of situational “pain”, or the promise of greater monetary “gain”.
5. And a more personally-preferred, lower-cost, expeditious option than selling the property through a realtor.
6. Especially if the title holder has owned the property for less than two years.
7. Minimal equity & tax implications.

[LegalizeGA]

Need a bit more info before I can wrap my head around this:

1. Given that mortgage promissory notes come with a due-on-sale clause, how do you go about transferring ownership of the property (aka the mortgage company’s collateral) without the mortgage holder having to satisfy the debt in its entirety?

2. Why would a seller want to sign their property ownership away, while still obligating themselves to the loan on that property? The seller is just cool with giving away 100% of the asset (property itself) while keeping 100% of the liability ($100k+ loan)?

3. What assurance does the homeowner/seller have that the new owner will make the mortgage payment, and what happens if they don’t?

[js]

I love your content man 💪 I appreciate the knowledge that you’ve been sharing. I’m just getting started with everything and I’m absorbing as much knowledge as possible.

[CocoBold]

Pace, do you ever have to pay the seller money to move? Also, can you talk about if they have liens on the property.

[faze_fresh]

Pace, I know paper costs went up but I wish your book was double spacing. Your book is great!

[procasualty]

Do you leave the mortgage in the sellers name? How do you protect yourself and them from a loan callback?

[pasanmanula]

Everything looks great but I do have a critical question that I wish you'd answered. When transferring the title or deed from the current seller to the new buyer, if there is a mortgage on the property, does the new buyer will need to pass the lender’s eligibility checks ?

[kingsolarll]

I had no understanding about the title company until this video.

[jillcorsiglia]

Pace l sweat you're becoming an even more patient and informative teacher than ever before, how is that possible?! 🥰🥲🙏🏼🏡👍🏼☺️
We so appreciate your thorough breakdowns of the facts/steps involved in creative transactions, be it homes, infinite banking and more!!!🙏🏼🎶🥲🙏🏼

Gratefully Jill 🌹🙏🏼❣️

[jaybclemons]

This video was very informative, the question I have is...What information does the servicing company take and what happens to the mortage if "Pace" stops paying it? Would'nt this hurt the previous owners credit?

[_ramirocardenas]

Love the videos you have been doing lately with the part1-3 explaining it to the new guys, because the new guys ask all the questions I probably would have asked 😂 keep this series going!! Thank you for everything

[line-stein]

This is all awesome information. Thank you pace. My big question is is when the seller asks how do I know that you will pay the payments and you won't go MIA
On payments, what insurances do I have? What do you tell them and how do you solve that concern?

[angelreyes-realestateandbaseba]

Thanks for the video its really good, I learn a lot.

[RoutetycoonVideos]

What happens if when you take over subto, you can't AirBnB it for some reason, and now you can't make the mortgage payments for the original owner. Maybe the bank forecloses on them, realizes they transferred the deed to the subto buyer, the original owners have no asset to sell (since they transferred it), they go bankrupt and the subto person goes bankrupt too since the bank still has the lien on the negative equity property? If subto people don't have good credit, they'll probably botch this up too, and I'd love to hear when a subto property owner doesn't make the payments. Is there any video that addresses this?

[murrayshaulingtransport]

What happens if your plan does not work and you default on that mortgage? Now that distressed owner gets hit with the negative credit and possible foreclosure.

[amoosenamedgoose]

Does the title company insurance protects you from a due on sale clause?

[thomasedible]

Awesome! Please make a video answer the final question - how to structure this to sell a house and mitigate that 10% closing agents costs and capital gains (how to structure via a trust)? In this case did the seller actually sell it for 575k or how does that work in terms of capital gains etc...? Thanks! You are amazing!