• Pace Morby

How To Use Creative Financing To Counteract Rising Interest Rates

When you first start shopping around for a home, the first things you start to look at our location, cost and features.


You’re not going to look at a anything that isn’t big enough for your family, or is out of your price range or doesn’t work for where you want to be.


So, why are people still looking at houses that don’t fit the economy?


Money is a big consideration within real estate. We’ve seen the cost of homes skyrocket within the last few years. Then inflation rose. Now interest rates for loans are shooting up to combat inflation.


This is causing a lot of potential home buyers to hesitate, because they don’t have the money they need to put down cash on expensive homes, and won’t make enough cash to pay off high interest rates.


If you’re getting homes through creative financing, this kind of stuff doesn’t worry you.





I’ve already spoken about this before with the guys at BiggerPockets, but investing in real estate is actually a really great way to fight the fear of interest rates.


I invest in real estate for a few reasons – the cash flow, appreciation of property value and to hedge against inflation. It seems counterintuitive, but when the value of the dollar goes down, real estate prices actually go up. There’s a negative correlation with a positive exchange for people who know how to get involved.


Guys, interest rates don’t scare me. Screw buying houses with giant loans from banks and hoping to pay them back eventually. Screw buying houses and filling them with tenants to charge them the cost of my loan.


I’m making deals with sellers that get me into properties with 0% interest and no money down and I’m doing it without loans from banks.


That’s the power of creative financing. By partnering up with sellers, I acquire the property they want to get out of for a price they want and no interest for me.


Pace, how is that even legal? Well, if you think of interest rates as a tax on money you owe to a bank, for example, it makes more sense. The bank is going to tax you for giving you money. Now banks are taxing you even more than in the past.


I avoid the traditional banks and go straight to the seller of the property and offer to buy the homes for the price they like, as long as they act as my bank. We then decide that because they’re my bank and I’m giving them the money they’re asking for, they’ll do it over time without taxing me for it.


It’s that easy when you’re working with the right people.


This is what I’m teaching people how to do every day in the SubTo community. I didn’t invent this method, I just perfected it and made it easy to use for first-time home buyers, real estate investors and the average Joe.


Heck, I’m teaching it in a way that my students are now experts that are teaching others exactly how to close deals that make everyone happy.


So, if you’re trying to get in a home or start investing, hop over to my free Facebook group and see how my community and I can help.


Let’s go close some deals together.