Morby method/stacking need a reliable lender

[Amritpreet Singh]

Anybody know a lender who do the Morby method/stacking? Basically structure a deal where the seller gets 70% from my lender and I finance the 30% with the seller. 

[Stuart Udis]

So now this is the “Morby Method”? At this point what real estate strategy is he not responsible for :) Call it what it is: a seller-financed second sitting behind the first-position lender, adding up to 100% financing. I don’t see any bank touching that structure. At best, maybe an expensive private or alternative lender would consider it, but even that’s a stretch.

In my opinion and most importantly beyond the financing hurdles, you have to ask why a seller is willing to carry a 30% second up to the full purchase price instead of selling the property in a normal, arms-length transaction. It’s usually because the real estate is challenged or overpriced, and these terms are the only way they can get someone to take it.

There was a Pace minion on here last year who insisted he’d buy underwater real estate financed at 100% as long as the property cash flowed.  That’s exactly why I’m skeptical of anyone following Pace’s tutelage—the logic behind these deals are inherently flawed but that's how he makes money. It's easier to get people to pay up for his education when they are being told they can buy real estate with zero money.