99.9% of time you can structure this where you own this house with no money out of your pocket. Let me briefly talk about what the Morby method is. The Morby method is actually two separate transactions. The first transaction is an all cash transaction utilizing a loan and private money lenders. So the Morbi method is two separate transactions. Okay, the first transaction is I am buying this house from a seller. So, here’s my seller, I get a contract on this house and I open escrow at a title company. So t’s just stands for Title Company, the contract price of this house is let’s say one, not say one that sounds lame.
There’s no houses for 100,000 Nowadays, guys, let’s say $500,000. I’ve got this seller saying I am open to seller finance, but I need a large downpayment. Okay, so remember, the Morby method is primarily utilized when sellers are open to seller finance, but they want a larger downpayment than you are open to getting and giving them and the seller doesn’t have any other option available to them. In fact, I’ve got a seller right now. He says I’m so down with seller financing to you.
I’m 100% down with seller financing. However, I have a really big project that I’m in the middle of and I need, I feel the need a chunk of capital, I need a chunk of capital. And while I understand why you want to give me a low downpayment totally makes sense. I’m an investor too, I get why you want to give me a low downpayment. However, I need a large downpayment, because I want to roll that into a big land development, this is a real situation going on right now. And I go okay, well, no problem, would you be open to seller financing a portion of it so that I can bring some money to the table from a non recourse lender.
Now guys, remember, I’m not going down to Bank of America, I’m not going down to chase or Wells Fargo and I’m not getting a conventional loan, I’m getting a non recourse investor loan. In fact, we’re using a couple of different companies right now the one that I have vetted and I have been promoting and talking about is a company called My investor loan.com. That’s who we have used, that is who we have successfully completed multiple transactions with that is who I’m currently talking about, because I know they’re legit. There are other people.
Do you want to understand how to structure the Morby Method? Watch these videos.
We’ve talked about a girl named Tanya, that I’m in the middle of testing, but I cannot verify that she’s a legitimate lender, because I personally have not completed a transaction with her. Okay, so what I do is I go to a non recourse lender, and I say, okay, Cesar, he wants $350,000 down. So I go to my investor loan.com, I obtained $350,000. And then I go to a private money lender, or I’m going to call this a transactional private money lender, meaning they’re only going to help me for the transaction, only all of this money 350 and 150, go to the title company.
And the first leg of the transaction is now completed because I brought all $500,000 to the table completing the purchase price on the first leg of the transaction. Okay, so don’t get confused. The mortgage method is very simple. On the first leg of the transaction, where it gets a little complicated is the way you structure the backend. What doesn’t happen in the first leg of the transaction is that this full 350 And this $150,000 does not actually get dispersed to the seller.
What happens is the title company holds that and they wait for the second leg of the transaction and the second leg of the transaction, the title company, which is holding the money, they follow a set of Escrow instructions that you fill out. And there’s going to be some customization in the sense that the way money gets dispersed is going to be different on every deal. However, the escrow instructions are going to tell the title company how to disperse that 500,000 They could say okay, well that 500,000 We’re only going to send $300,000 to Caesar. I know originally that it was 350.