In this reaction video, Pace Morby outlines his "subject‑to" real‑estate acquisition method: he targets sellers of expired listings, offers to take over their mortgage payments while keeping the loan in the seller’s name, transfers the deed via a title company, and then rents the property to cover the payments. He claims that about 80% of sellers approached this way agree to the deal. The responding speaker (Speaker A) concurs with the overall process and the use of expired listings as a lead source, noting that 70‑80% of his own deals have come from such listings. However, he challenges Pace’s 80% acceptance figure, arguing from a decade of experience that a realistic acceptance rate is closer to 20%, warning that the higher claim sets unrealistic expectations for practitioners.
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Okay, cool. So I've got a house. Seller lives in this house. Seller has 2 things. They have a mortgage, separate document, and they also have a deed. A deed is a receipt of ownership. 2 completely separate documents. I, Pace, or maybe you watching this in the video, where I would go to find a deal like this is I would call sellers that are on expired listings. People who have already tried to sell their house, but real estate agents failed to do so. We call this seller and we say, hey, looks like you tried I know you tried to sell your house unsuccessfully. I'd love to just give you an offer of taking over the mortgage payments. Are you open to that? And I'd say 80% of the time the answer is yes. Oh my gosh, I would love to do that. I do a lot of these stories on my YouTube channel. And the seller says, how does that work? I go, well, the mortgage stays in your name. You move out of the house and the deed gets transferred to my name through a title company. And the title company issues insurance to make sure that all the paperwork was done and everything was done legally. I now have official ownership. Owner of that property is now gone. the owner. I am, and I can go find a tenant to go move in this house and make those payments on my behalf. That's subject to.
Completely agree with that entire process and even agree with the lead source. Absolutely love expired listings. We have done maybe 70 to 80% of the deals in which we've done over the past decade have come from expired listings. What I disagree with is that metric. There is no way that 80% of sellers out there from expired listings were willing and able to sell the property subject to the existing loan. Look, I've been doing this for about a decade, and the truth is that it's going to be absolutely flip-flopped. It's going to be maybe 20%, and that may be a high number of sellers that are willing to do subject to, especially right away. So flip-flop those metrics, and that way we don't have an unrealistic expectation out there, and you don't feel as though that you failed if you're not getting 80% of sellers on expired listings to sell subject to deals to
