Why The Morby Method Is A Dangerous Strategy 

Agreed - it's all about the transparency with everyone haha

Exactly!!! So wild

Bull, there is no bank involved in this method

@Ballroomdancelifestyle that’s just not true at all. Watch the video when he promotes this method or just watch the full video here. There are banks involved, otherwise it’s just seller financing and there’s nothing wrong with that

no NO NO AND NO! You guys aren’t getting it and you really should do more research before blasting somebody. First off, I don’t know what morby method you are doing, but nondisclosure of any position has nothing to do with anything! There is no second position loan in the Morby method! The reimbursement on the second leg should be secured with the seller via partnership agreement within your LLC. This way, the seller does not have to take second position, there’s not a second position on the home, and their name is on the title just like you via your LLC. Do you want to structure a partner ship agreement with the seller for their 30 to 40% reimbursement on the second leg. It’s a partnership agreement you secure so they don’t have to take second position.

@user-ds2rd2oq1r just watch the video. It’s Pace’s words, not mine. He’s encouraging fraud.

Glad you enjoyed it!

That's a good question. In commercial, it's probably over 90% of banks that will call the note. Subto is rare in commercial but not entirely uncommon in residential

I love creativity but there are still boundaries in real estate 😅

Yes he is!

"Many of the wholesale guys are practicing Real Estate without a license if they do not have the ability to actually close on the deal" That is always going to be hard to provide. The "ability to close on a deal" is not a term that is defined anywhere. Going under contract for an option to buy a property with a contingency to secure financing is how most people do it. There are lenders that only require that you fog a mirror with a double digit interest rate. So I'm not sure how you will prove they knowingly entered a contract unable to close unless they were orders to not practice real estate by a court somewhere. I also wonder how you consider every syndicator that needs to raise capital for a deal while under contract.

Saw a guy yesterday selling a $40k mentorship where the mentor would stay with you until you net $1m from your Cre investments and the average student does that in 14 months. Not a chance that’s legit. These mentorship / courses are getting crazy. Why can’t people just provide good information instead of making these outlandish claims and preying on people without money

@@piRatCaptain We are referring to 2 different categories of buyers I believe. The ones I have seen locally prey on the elderly and financially illiterate, go under contract way under market value without the intention or capability of ever closing the deal. They then shop the deal to the real estate community to sell the contract. This is a gray area that can be argued but at the very least is unethical. @piRatCaptain

@@TylerCauble If the guys were that good why are they out selling "mentorships?" Because they are so kind and altruistic they want to prop everyone up to help them for the nominal fee of $40k? It is just very frustrating to watch these con men take money from folks. Thanks for taking the time to make this video about Pace. The community needs more professionals calling out the shady claims and practices.

100% agree. I did my course because, despite all of the YT videos I make, people still kept asking questions. But I charge nowhere near that much and don't take out all of the actually helpful information in my YT videos / podcast@@mclaughlinrk

Yep - I've got a handful of videos on this channel on creative financing and buying commercial properties with no money

Yea somebody answer this how is this any different than the Morby method? Is it just the fact that there was disclosure to the bank? If that’s the only issue and not the concept of Morby method itself than I am going to assume Morby method works.

@user-sj1sw1ps4e the Morby method doesn’t work. At its core, you are defrauding your lender by not disclosing a material fact to them. There is nothing wrong with having a 2nd position note on a property as long as the senior lender knows about it, but that’s not what the Morby Method teaches you to do.

@@TylerCauble okay so as long as I communicate the fact that the down payment I am bringing to the table is in the form of the seller carry back for the 30% down payment, the bank will loan the other 70% of the money to the deal? (Let’s assume the seller agrees to take 0% interest no payments for 5 years while the property gains value. Thanks for the quick response, you just earned a subscriber.

@user-sj1sw1ps4e I appreciate that! And they won’t always be ok with that, but you do have to disclose it. I recommend telling them that at the very beginning so they’re aware and you get a quick yes or no. Some banks are fine with it and some aren’t, just depends on the bank, but nearly all loan docs will require that to be disclosed or you’ll be put in default of the loan. Hope that helps 👊🏼

I’m not sure - I don’t know why the seller’s bank would be involved. But if you’re not disclosing items like that, you’re committing bank fraud so it’s always best to fully disclose everything and consult your professionals (attorneys, CPAs, etc)

Well, that's a huge red flag right there

@@TylerCauble they told me that is was for the contracts. $8000 to get in and they will finance it. Also. I have met Pace twice. Very approachable guy and will give you the shirt off of his back. But again, it's what we don't see that bothers me.

100%

@@thomsieloff3463 That is the bubble I'm talking about. It seems to me to fly in the face of his want to spread real estate to the masses and educate everyone but then charge thousands and make people sign NDAs about their activities. I didn't even know about the NDAs.

Games not taught its sold

Wow that's unbelievably shady

That's insane, in my opinion. Way too much leverage but it could pay off for him, who knows

In that scenario, couldn’t you rent them out section 8? That’s a guaranteed government check that’s recession proof. Otherwise, yeah you’re so fucked 😂

@@Bsilbs you could but section 8 is usually paying you below market rent. Also, all of the rent isn't always being paid by the govt. A portion might come from the tenant. How about if they don't pay their portion?

We break down his entire video, where he teaches you to commit bank fraud. Maybe he teaches you to do the right thing behind paywalls, but it’s odd to see the free info that he gives out literally promote fraud. There’s nothing to defend here unless you agree with defrauding lenders.

@@TylerCauble perhaps that is the case in marketing videos and that would be wrong. I haven’t seen your subsequent critiques so I can’t speak to that. But yes behind paywalls is what I can speak to. There is step by step encouragement for total transparency.

Don’t disagree that you should use investor capital or debt to leverage your returns when you can. The major point here is he’s teaching you to defraud your lenders

Man you’ve been brainwashed pretty well 😂 it’s not my opinion, Pace Morby is literally teaching bank fraud in this video

@@TylerCauble I really want to support you on this but I have a question. Pace also says that hes done over 1000 deals and has only had the due on sale clause called 5 times, and of the 5 times ZERO actually required the payoff. My humble logic is that lenders are in the business of lending and capturing interest, not requesting payoffs. The low equity argument is valid, but how would it be fraudulent to lenders? (Im unbiased, Im not a sub to student but just curious myself)

😂😂