Subject-to Deals for First-Time Home Buyers

Introduction

• Topic: How to find subject-to deals as a strategy for first-time home buyers.
• Presenter: Pace Morby

Key Concepts

• Subject-to Strategy: Taking over the existing mortgage payments of a homeowner without qualifying for a new loan.
• Target Audience: First-time home buyers who can't get traditional loans.

Finding Leads

1. Wholesalers and Agents: They find motivated sellers (e.g., foreclosure, probate, distressed properties).
2. Online Listings (MLS, Zillow, Redfin): Less likely to find motivated sellers, as these sellers usually seek top dollar.

Steps to Get a Subject-to Deal

1. Generate Leads: Become a wholesaler/marketer or find one who communicates directly with sellers.
2. Use Batch Leads: A platform to pull lists of distressed properties.

Practical Example

• Batch Leads Walkthrough: Demonstrated using batchleads.io to find distressed properties in a chosen location (e.g., Dallas, Texas).
• Types of Distress: Pre-foreclosures, absentee owners, properties free and clear.

Example Cities

• Kauai, Hawaii: Few distressed properties.
• Dallas, Texas: High number of foreclosures.

Why Sellers Go into Foreclosure

• Lack of Equity: Sellers might not have enough equity to sell the property traditionally.

Advantages of Subject-to Deals

• No Need for Personal Credit or Loans: Avoid qualifying for a new mortgage.

How to Approach Sellers

• Direct Calls: Call sellers in foreclosure and offer to take over their payments.
• Batch Leads for Lists: Use batchleads.io to obtain lists of distressed properties.
• Partner with Wholesalers: Engage wholesalers who are already contacting distressed property owners.

Using Facebook Groups

• Networking: Use real estate Facebook groups to find wholesalers and potential deals.
• Example: Creative Finance with Pace Morby Facebook group.

Practical Tips

• Negotiate with Sellers: Learn from Pace’s YouTube playlist for seller calls.
• Understand Paperwork: Seek help in Facebook groups for legal and procedural guidance.

Conclusion

• First-Time Home Buyer Strategy: Match distressed sellers with buyers willing to take over mortgage payments through creative finance.
• Resources: Utilize tools like batchleads.io and real estate Facebook groups to find and execute subject-to deals.
• Further Learning: Watch related videos and join community groups for ongoing support and education.

Call to Action

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