What I love about this. Is, and I’m guilty of it too. We all have watched folks like Cardone and others and think “no way we are going to be able to even think about getting half way up to where they are” and he you watch this and realize how much information there is out there and how folks even like cardone don’t know it all. It gives confidence. This is great
@12:10 there is another reason that people do Master Lease Option instead of Seller Finance. The lease option gives the potential buyer an out of it turns out that he or she cannot make the property (usually value add) as profitable as anticipated. The owner takes the property back without the need for deed transfer and the potential buyer is not burdened with trying to find a new seller.
The cleaner way is to do an All Inclusive Trust Deed much like a subject to but the grant deed is held in trust signed by the seller... Threre is a new note that wraps around the existing first and any equity the seller has at a n interest rate equal or greater than the first mortgage.... The buyer makes all the payments to the escrow each month and the escrow disburses the payments to the 1st, seller, taxes, assn., ins..... Then at an agreed upon time the buyer refinances it usually after 24 mos so they can prove a good mortgage history...We did this a lot in California... This is very common and right now sellers can make money on the sale of their home by charging 5% on their underlying existing 1st of 3% plus their equity at 5%.... Love this stuff.... I am now in Florida and most brokers have no idea how to do this or have even heard of this...
Grant does know about due on sale. I’ve heard him talk about it a ton of times. I think he just wanted to the conversation to go deeper for the listeners
Glory to God! Thank you guys!! This is awesome stuff, learning all kinds of new things! - I love it when Grant says “ I didn’t know any of this and I thought I knew a little bit in real estate” 😂😎
taking real estate school to the next level.. literally stuff they teach you in classes but only actualized. this is the stuff real estate teams tell their agents to disregard.
Ive been following Pace, Jerry Norton, and RJ bates for a couple months and these guys are good. Grant you should watch these 3 guys call sellers. Its Amazing lol
The fact that these two real estate "tycoons" are discussing media production with such passion and knowledge should tell you a whole lot where their priorities lie ;)
Grant I am very familiar with creative financing. I listed foreclosure for banks for years. Now I buy creatively and rehab. I also have a property management company in Fayetteville NC. ( military base) I can manage all your properties 💪✌🏼
First of all, Brilliant Content and thank you. However, in the beginning of the video 0 $ down, 0% financing was the focus but then "an average of 35k per property for fix, upgrade and stabilization" came out for a couple seconds towards the end. Still, a huge opportunity.
Networking knowing people who will lend money to buy real estate. Most people don't have enough money for down payments to buy real estate to get started.
I could be wrong but I believe , If the seller wants another loan, the loan officer contacts the person assuming the mortgage payments and asks them what they want to get the loan through and often it’s a matter of creating a lease to own contract, which becomes obsolete the day after the loan is approved, so that the loan officer can show that the current property is being paid for by what is basically a lessee as if it were a rental property in the eyes of the bank and so the debt to income ratio then satisfies the loan officers approval criteria. I learned this from watching one of his other videos. Cheers.
I would never sign over the deed and still be stuck with the mortgage. He could screw me royally, by selling the house and I'd still have to pay on a house I don't own.
Depends on your definition of difficult. Pace has videos addressing this. In short the debt and monthly payment is still on their credit.. but the seller should have documented proof that the payments are being made by someone other than them, so it can supposedly not be counted towards debt to income ratios.
I just filed bankruptcy, if I can save some money is there anything stopping me from being able to take over someone's mortgage? I don't have to have good credit or anything, right?
Basically, the value of the payments extend over a long period of time to equate to the sellers desired price. If the seller just sold that property based on its book value they would: 1. Not get their asking price. 2. Incur a gigantic tax burden.
Sorry I must be extra slow: if he “sold” the property yes there would be a huge tax liability- agreed! But they’re not selling they are basically swapping a big monthly asset $38k/mo to a smaller monthly asset $11k/mo. Right?
I wanna go make my whole neighborhood my tenants now 😂😂here's thirty grand cash sign over your deed and by the way u gotta new roommate moving into your basement
Okay so the lady was making $1,650 a month from her tenant. You’re telling me you got her to accept $350 a month and lost the home? Your f150 example would be if someone is basically already renting the f150 for more than you would be paying. Grants acting all completely shocked lol. Wow I can’t believe it! lol
Literally, 10 days of financial education can make you a king. Pace is that guy. He basically legally robbed him. That guy only gets a total of 6.9M USD over 50 years. Average Monthly Cashflow of 11,000 USD. You put it in an index fund for 50 years (10% CAGR) & do monthly withdrawals of 0.375% per month. That is 11,250 USD at the start with capital of 3M USD. You get 265M capital after 50 years + average monthly income of 231,809 USD per Month.
There is no profit. It becomes negative cash flow...unless you're an investor on TH-cam or x in which case not only is the income killing it, but so are the investments.
They make profit off of the terms. Although they are taking over someone else’s debt, they get the asset. Now if the payment is low enough because it was a pre-existing loan and a wildly low interest rate, there is enough spread over to “cash flow” as a rental, short term rental like Airbnb or you become the bank, and sell the home note to another person. This is called a wrap, you can sell the “seller finance loan” deal to someone else and make a commission. Or to someone who is looking for their primary residence but having trouble qualifying with a traditional bank. If you sell to someone like that, you can charge a higher interest. Any interest above what you are paying for it, is your profit. It will be over time, But since you are the bank and taking risk, you ask a big down payment from who buys it from you. If they fail to make payments, you foreclose on them and sell the property again, they don’t get their down payment back and they would have paid down some principle over that time. You can make profit in those ways, cash flow, wrap the mortgage or just hold it. If you hold, the tenant you place in there will hopefully cover the note, and you sit on the negative equity until the principle gets paid down or the market appreciates. Go to local real estate meet ups and network with who can teach this to you, avoid guru prices and find someone who actually does this and is will to answer your questions. Here’s a hint tho, bring some value to them before you start bothering them.
It’s comical that people think someone can go from nothing to over 40 billion in real estate he manages and still know nothing about real estate. He didn’t know about one part of real estate, but he definitely knows something
Is anybody not surprised that Grant Cardone the self proclaimed real estate guru doesn’t have the first clue about 1031 tax exchange laws, depreciation, title or installment sales? Hello, three orders of snake oil, please.
The up and comers and Im thinking I am one.... Do to all helicopters it is going to be hard to live and learn. The new generations will all be looking for confirmation on all decisions. You have to touch the stove to really believe it is hot. It does not matter how many times you were told you just have to test to believe. It takes being put outside, shown where the water is, how to get back home when you hear mom calling or when the street light comes on.
So as far as the house where you told the lady the F-150 story what happened to the wholesaler who brought the property to you? Did he get screwed out of his commission?
👣👣💉💉"Hey Trump🙉🇺🇸, You 👀Look 💉perfect 🫀for this comment coming ALL the way from Houma🏘️ Louisiana .. Quote on Quote "I won't be fighting you in a 💉💉💉 BAR 👣FIGHT 🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑!" Said WHO before that ambulance ride??🫀🫀🫀🫀🫀
I JUST signed up for the Training Grant! I’ve Been Getting Previous emails and you’ve been Lightweight Blowing me up for a while now…PLEASE DONT NEGATE this Comment! I am A.B R O C K! I WILL Take this Info and make this Make ME SUCCESSFUL! As long as Your Info and Training IS free and IS Genuine!
This interview took places months ago, and I’m sure they have already made a shit ton of money in the new fund. KEY TAKEAWAY DO BUSINESS WITH PEOPLE WHO ARE WILLING TO DO BUSINESS WITH YOU.
Charleaton Sheets zero down course is legendary. Had that course on cassette tapes in the 80s 😂
Insane 🔥love the energy!!! Can’t wait to see you two take down more deals!!! ❤
I throughly enjoyed this conversation... I gained so much knowledge.. u da man
Awesome! Thanks for the support! #10X
My wife & I have done over 400 sub to deals in Houston, TX. Loved this conversation
Good stuff guys, lots of good info.keep up the good job Pace, looking good uncle G.
What I love about this. Is, and I’m guilty of it too. We all have watched folks like Cardone and others and think “no way we are going to be able to even think about getting half way up to where they are” and he you watch this and realize how much information there is out there and how folks even like cardone don’t know it all. It gives confidence. This is great
2 of my mentors who i love to follow in one room!! id love to sit in person and watch this...
this was great! Grant is always eager to learn 🧐
Straight Gold, I can’t wait to apply this with all the foreclosures coming up
Thank you!! And best of luck with your endeavors! 🏡✨
Love this information. Seen some of Paces videos before.
Great minds think alike! Keep it up 🤝
@12:10 there is another reason that people do Master Lease Option instead of Seller Finance. The lease option gives the potential buyer an out of it turns out that he or she cannot make the property (usually value add) as profitable as anticipated. The owner takes the property back without the need for deed transfer and the potential buyer is not burdened with trying to find a new seller.
Best interview you have ever done IMHO!!!
Wow this is crazy AWESOME information
Crazy awesome? That's my middle name! Just kidding, but I do try to bring the best content to my viewers 🤝 #10X
Huge strategy! Thank you both of you
I'm glad you found the strategy helpful! Now #10X those profits! 💰
Grant is being nice to this guy. Anyone in the multifamily business, IYKYK.
If you know, you know! 😏😉
Good stuff. You guys are awesome
The cleaner way is to do an All Inclusive Trust Deed much like a subject to but the grant deed is held in trust signed by the seller... Threre is a new note that wraps around the existing first and any equity the seller has at a n interest rate equal or greater than the first mortgage.... The buyer makes all the payments to the escrow each month and the escrow disburses the payments to the 1st, seller, taxes, assn., ins..... Then at an agreed upon time the buyer refinances it usually after 24 mos so they can prove a good mortgage history...We did this a lot in California... This is very common and right now sellers can make money on the sale of their home by charging 5% on their underlying existing 1st of 3% plus their equity at 5%.... Love this stuff.... I am now in Florida and most brokers have no idea how to do this or have even heard of this...
you are Izzy’s dad
You should make a video of this info...so many questions this raises
Can’t believe that Grant didn’t know due on sale, sub2, and the difference between Deed and Mortgage!😮😮
It is a good reminder that you dont need to know everything to become a billionaire.
@@PaceMorbyyou are 10000% correct Pace
Grant does know about due on sale. I’ve heard him talk about it a ton of times. I think he just wanted to the conversation to go deeper for the listeners
This was great want more
What about the due on sale. Do you use a trust to transfer title.
Good at chess! I like the view of the big board.😊
I love your perspective! It’s all about strategy and thinking several steps ahead ♟️
Glory to God! Thank you guys!! This is awesome stuff, learning all kinds of new things! - I love it when Grant says “ I didn’t know any of this and I thought I knew a little bit in real estate” 😂😎
taking real estate school to the next level.. literally stuff they teach you in classes but only actualized. this is the stuff real estate teams tell their agents to disregard.
i know that there’s a part 2 grant. where’s it at ?
gonna watch this twice
Ive been following Pace, Jerry Norton, and RJ bates for a couple months and these guys are good. Grant you should watch these 3 guys call sellers. Its Amazing lol
Team work make the dream work
Totally agree, teamwork all the way! #10X
I love seeing Grant confused! Mind blow moment
Shows that even the best can be surprised and still keep learning! 😏💡 Always #10X
@@10XStudioshe’s acting. He knows how This strategy works really well.
The fact that these two real estate "tycoons" are discussing media production with such passion and knowledge should tell you a whole lot where their priorities lie ;)
I love you pace!! You’re amazing 😎
Basically selling your debt
Can we hear more about this strategy?
Grant I am very familiar with creative financing. I listed foreclosure for banks for years. Now I buy creatively and rehab. I also have a property management company in Fayetteville NC. ( military base) I can manage all your properties 💪✌🏼
you need to tell the bank that the property will go from owner occupied to a rental
Perhaps, but that doesn’t change their opinion.
First of all, Brilliant Content and thank you. However, in the beginning of the video 0 $ down, 0% financing was the focus but then "an average of 35k per property for fix, upgrade and stabilization" came out for a couple seconds towards the end. Still, a huge opportunity.
Thank you for your feedback! We hope it's still clear for you after all.
I think Paces greatest skill is storytelling.
Networking knowing people who will lend money to buy real estate. Most people don't have enough money for down payments to buy real estate to get started.
boy yall said a mouth full
I’m ready for a big fish 🐟 to teach me!
How can I learn
The video freezed
I want to learn
Subscribe to @10XStudios and @GrantCardone that's a great way to start! #10X
i would like to be a part of this
With the mortgage still in the sellers name, how can the seller finance another property?
I could be wrong but I believe , If the seller wants another loan, the loan officer contacts the person assuming the mortgage payments and asks them what they want to get the loan through and often it’s a matter of creating a lease to own contract, which becomes obsolete the day after the loan is approved, so that the loan officer can show that the current property is being paid for by what is basically a lessee as if it were a rental property in the eyes of the bank and so the debt to income ratio then satisfies the loan officers approval criteria. I learned this from watching one of his other videos. Cheers.
Makes sense
I would never sign over the deed and still be stuck with the mortgage. He could screw me royally, by selling the house and I'd still have to pay on a house I don't own.
Not at all, the house automatically gets deeded back to you if he misses a payment. It's literally in the contract.😂
When the Terms are in your favor, and your backed into a corner, you will be suprised what you're willing to do. People do it everyday
you dont get the deed until the note is paid off ?
There are many naive people , ready to be brainwashed from all sources.
You would if you could not pay your mortgage and are about to loose your house!
Tennessee
Pace is a master negotiator 🫡
Been in the game for long enough, he knows what he's talking about 🔥 thanks for your comment!
Just a general contractor building a dozen homes a year 5M+$ and paying taxes out the ass....tryna figure out how to not be classified as a flipper
Is that Ken M textin?
Question to all the experts: If the seller keeps the mortgage, will it be difficult for them to obtain another mortgage?
Depends on your definition of difficult. Pace has videos addressing this. In short the debt and monthly payment is still on their credit.. but the seller should have documented proof that the payments are being made by someone other than them, so it can supposedly not be counted towards debt to income ratios.
Going forward
I'm recieving all the statistics n codes to solutions
Just sayin
I just filed bankruptcy, if I can save some money is there anything stopping me from being able to take over someone's mortgage? I don't have to have good credit or anything, right?
Nothing stopping you but the seller. If you convince the seller, you don’t have to get anyone else’s approval.
@@STELLASCUTENESS what about the PML? Will they want a credit report or is partnership in the deal what they look for?
Great conversation but got damn Grant stop over talking people lol
Whis this would works in Canada...
Amazing content, be creative!!
So Grant Cardone doesn't know what a subject to deal is or what a due on sale clause is? WTF?
People learn something new everyday
My first thought as well.
the property brings in $38,000 /mo but the owner is agreeing to $11,000/ mo? am i missing something?
Basically, the value of the payments extend over a long period of time to equate to the sellers desired price. If the seller just sold that property based on its book value they would:
1. Not get their asking price.
2. Incur a gigantic tax burden.
Sorry I must be extra slow: if he “sold” the property yes there would be a huge tax liability- agreed! But they’re not selling they are basically swapping a big monthly asset $38k/mo to a smaller monthly asset $11k/mo. Right?
I want in new fund.
So Grant is a talker, talker? 😂😂😂
Grant can talk the talk and walk the walk!
That's a great market right there!
I wanna go make my whole neighborhood my tenants now 😂😂here's thirty grand cash sign over your deed and by the way u gotta new roommate moving into your basement
Okay so the lady was making $1,650 a month from her tenant. You’re telling me you got her to accept $350 a month and lost the home? Your f150 example would be if someone is basically already renting the f150 for more than you would be paying. Grants acting all completely shocked lol. Wow I can’t believe it! lol
🔥🔥🔥
This blew my mind and made me rethink about picking up single family homes.
Gold
Literally, 10 days of financial education can make you a king. Pace is that guy. He basically legally robbed him. That guy only gets a total of 6.9M USD over 50 years. Average Monthly Cashflow of 11,000 USD.
You put it in an index fund for 50 years (10% CAGR) & do monthly withdrawals of 0.375% per month. That is 11,250 USD at the start with capital of 3M USD.
You get 265M capital after 50 years + average monthly income of 231,809 USD per Month.
How do most of you guys still make profit, even with the downturn of the economy and ever increasing life standards
There is no profit. It becomes negative cash flow...unless you're an investor on TH-cam or x in which case not only is the income killing it, but so are the investments.
Subscribe to @10XStudios and @GrantCardone, that's how! 😏💡
@@10XStudiosyou guys 😂😂😂
Do the Cardone scam! make people pay for info you don't have
They make profit off of the terms. Although they are taking over someone else’s debt, they get the asset. Now if the payment is low enough because it was a pre-existing loan and a wildly low interest rate, there is enough spread over to “cash flow” as a rental, short term rental like Airbnb or you become the bank, and sell the home note to another person. This is called a wrap, you can sell the “seller finance loan” deal to someone else and make a commission. Or to someone who is looking for their primary residence but having trouble qualifying with a traditional bank. If you sell to someone like that, you can charge a higher interest. Any interest above what you are paying for it, is your profit. It will be over time, But since you are the bank and taking risk, you ask a big down payment from who buys it from you. If they fail to make payments, you foreclose on them and sell the property again, they don’t get their down payment back and they would have paid down some principle over that time. You can make profit in those ways, cash flow, wrap the mortgage or just hold it. If you hold, the tenant you place in there will hopefully cover the note, and you sit on the negative equity until the principle gets paid down or the market appreciates. Go to local real estate meet ups and network with who can teach this to you, avoid guru prices and find someone who actually does this and is will to answer your questions. Here’s a hint tho, bring some value to them before you start bothering them.
It gets comical how much Grant cardone doesn't know about real estate.
It’s comical that people think someone can go from nothing to over 40 billion in real estate he manages and still know nothing about real estate. He didn’t know about one part of real estate, but he definitely knows something
🔥🔥
🔥✌🏽
Uncle G Cousin P
Uncle G and Cousin P make quite the dynamic duo 😄 you nailed this!
41:15
Is anybody not surprised that Grant Cardone the self proclaimed real estate guru doesn’t have the first clue about 1031 tax exchange laws, depreciation, title or installment sales? Hello, three orders of snake oil, please.
👍👍👍👍👍👍👍
The up and comers and Im thinking I am one.... Do to all helicopters it is going to be hard to live and learn. The new generations will all be looking for confirmation on all decisions. You have to touch the stove to really believe it is hot. It does not matter how many times you were told you just have to test to believe. It takes being put outside, shown where the water is, how to get back home when you hear mom calling or when the street light comes on.
So as far as the house where you told the lady the F-150 story what happened to the wholesaler who brought the property to you? Did he get screwed out of his commission?
lol
Mmmm🤔
🚑🚑🚑🚑For Real Trump a different kind of FIGHT.🚑🚑🚑
😮
Hahaha
🙉🙉🙉🙉🙉🙉🙉🙉🙉🙉🙉🙉🙉🙉🙉
👣👣💉💉"Hey Trump🙉🇺🇸, You 👀Look 💉perfect 🫀for this comment coming ALL the way from Houma🏘️ Louisiana .. Quote on Quote "I won't be fighting you in a 💉💉💉 BAR 👣FIGHT 🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑🚑!" Said WHO before that ambulance ride??🫀🫀🫀🫀🫀
Hahaha look at scam Cardone gets ide for new one Hahahah. Karma is coming
I JUST signed up for the Training Grant! I’ve Been Getting Previous emails and you’ve been Lightweight Blowing me up for a while now…PLEASE DONT NEGATE this Comment! I am A.B R O C K! I WILL
Take this Info and make this Make ME SUCCESSFUL!
As long as Your Info and Training IS free and IS Genuine!
This is My Daughters acct btw. Haha
This interview took places months ago, and I’m sure they have already made a shit ton of money in the new fund. KEY TAKEAWAY DO BUSINESS WITH PEOPLE WHO ARE WILLING TO DO BUSINESS WITH YOU.
Money talks, doing business with like-minded people is key 🔑 #10X