Underwriting A Creative Finance Deal: The Morby Method

Subscribe to my YouTube Channel right here.

Another question what to do if you can, maybe underwriting won’t be met, the deal that I’m working on right now is a million dollar house. And I think the only way to make the mortgage method work is if I buy at a million or like 1.1. She owes 750 to her mortgage, and then another 50,000 to the HOA, I want to do straight sub two, but her attorney shut it down. She said she’s been working with this attorney for 10 years, and I don’t want to fight that I didn’t want to go back and forth with her about that attorney.

So I’m like, Okay, well, if I can get your name off the mortgage, will you finance the roof? She said, Yeah, I just need to know if these numbers make sense. Okay, so a couple of things about the attorney. So I’m gonna do has an attorney attached to his deal. I put my attorney and his other attorney in a group email, and just putting those two attorneys in the same email got rid of that attorneys issues, there’s like, Oh, damn, they have an attorney too. That’s like, gonna tell me I’m wrong. So what I would do is I would suggest to her like, Hey, would it help if my attorney talk to you or talk to your attorney?

Or why not just buy this on an agreement for sale and let her keep full control the issue an attorney has with a subject to deal is that your name is on the deed, her name is on the mortgage? So why not let her stay on the deed and on the mortgage? Do a on an agreement for sale? And have her seller finance that deal? Until let’s say five years down the road? Are you going to keep this one in your portfolio? What do you think? Yeah, I’m planning on keeping this one. And it’s not like I need the depreciation right now. Anyway, so if it was me, I would do an agreement for sale appease her attorney.

So I would write it her an email, or maybe even chat with our attorney asker get in the habit, Darrell of getting used to talking to their attorney and just saying, I think I have a pretty good solution. Why don’t we just buy this on an agreement for sale, she retains control of the deed and her name stays on the mortgage, I take over through an agreement for sale. And at some point in five years, I refinance it with my own loan, once there’s enough equity in the deal, and I can get her all the way out. That’s the easiest way. Okay, yeah. Here’s the first step of Morby method.

Download our FREEBIES: Pacejmorby.com

Okay, I’m in the middle of his six package deal in Florida right now. Okay, on the Morby method, so what I do on any Morbi method is I get the seller to say yes, before I like finalize and finish my inspection period, I tell the seller straight up all right, here’s what I’m going to do. Let’s get into a purchase agreement for a 30 day or 60 Day clothes, probably a 60 day clothes. And yes, more we method is basically a seller wanting too much money down or needing more specifically, they need more money down, it’s not so much want at this point, it’s more like they absolutely need it and there’s no way I can negotiate out of it.

That’s the mortgage method. So what I do is I get the seller into a contract, the seller and I are going to enter into a partnership agreement in the Morby method, you understand that part and the seller then instead of creating a seller carry back for me for that equity, they actually retain a part ownership of my LLC making sure that my lenders happy and all that kind of stuff, whatever I tell the seller straight up I can’t move forward on this deal until my lender says they can give me this much money and once they say they can give me this much money and at this interest rate, then I can come back to you and we can finalize the numbers.

So many people are like I’m gonna get the seller into a Morby method thing and dude, the Morbi method is so transparent with the seller of like I’m in a deal right now. Jared Penner, Florida six properties all Airbnb operating Airbnb right now sellers name is Caesar. I tell the seller I can do this Moremi method. Caesar says I love it. Let’s move forward and go here’s the problem. Cesar I’m gonna go to my lender. My lender is gonna give me a term sheet, what terms they’re willing to give me on this specific property, how much money down how much interest rate, well, this, that and the other?

What’s my payment until I know those numbers from my lender, I cannot come to you and finalize my negotiation with you. So I’m going to open a contract with you. We are then going to I’ve got one right now I got one back from Tanya, the lender actually you referred over to me on the six package deal. Now I go to Caesar and I have a conversation with Caesar I go, here’s what my lender has given me. This is how much you know. And we work out the Finalize agreement and we create a separate agreement in our partnership, if that makes sense. It’s a more complicated way to do it. So for me, it works. It’s amazing. I love it.