- LOAN PORTAL
The Morby Method is a dynamic creative financing strategy developed to help investors structure deals when sellers require a significant upfront payment. It blends traditional financing with seller financing, allowing you to meet the seller’s financial goals while minimizing your out-of-pocket expenses.
This method isn’t limited to single-family homes—it’s highly adaptable and can be applied to multifamily and even commercial real estate. The key to success lies in understanding the seller’s needs and crafting a deal that provides a win-win outcome for everyone involved.
Here’s a step-by-step guide to how this powerful strategy unfolds:
The foundation of any creative deal is rooted in solving problems. Sellers who demand large down payments often have a specific need—such as paying for a wedding, medical bills, debt, or other life events. Your role is to uncover that motivation and explore how you can meet their need creatively.
Next, you’ll work with a lender—such as a DSCR lender or a private money source—to finance the majority of the purchase price. For example, on a $500,000 property, you might secure $300,000 through traditional financing.
The remaining balance is structured as a seller-financed note. In the example above, the seller may carry back $200,000 as a second-position loan. This allows the seller to still receive value from the deal while giving you flexibility on upfront costs.
Here’s the creative part: You use a portion of the loan proceeds to meet the seller’s cash requirement. The rest is returned to you as part of the seller-financed arrangement.
For instance:
You secure a $300,000 loan.
The seller receives $250,000 to meet their cash needs.
The seller then carries back a $200,000 note and returns $50,000 to you as part of the agreement.
This structure enables you to reduce your cash investment while still delivering on the seller’s request.
With the seller’s needs met and your financing structured efficiently, you finalize the transaction—acquiring a property with minimal cash out of pocket while building a long-term financing relationship with the seller.
The Morby Method unlocks new possibilities for real estate investors who are looking to scale without using all their own capital. Here are the top reasons to use it:
✅ Minimizes Cash Outlay
By leveraging OPM (Other People’s Money), you preserve your capital for future opportunities.
✅ Solves Seller Challenges
You’re not just negotiating—you’re solving real-life problems, which helps close more deals.
✅ Expands Your Deal Flow
Many investors walk away from deals that require large down payments. With the Morby Method, those become opportunities.
✅ Builds Trust & Collaboration
This method encourages win-win partnerships with sellers, brokers, and funding partners.
At Levine Capital, we’re not just familiar with the Morby Method—we specialize in it.
As active members of the SubTo, Gator, and creative finance communities, our team has helped countless investors structure complex transactions using the Morby Method, including:
Subject-To Acquisitions
Wrap-Around Mortgages
Seller Finance Hybrid Deals
Gap Funding & Transactional Lending
DSCR Loans as Primary Financing
We’ve worked hand-in-hand with sellers, investors, and brokers to create creative deal structures that wouldn’t be possible with traditional lending alone. Whether you’re a first-time investor or an experienced dealmaker, we’re here to guide you through the entire process—from quote to closing.
Need help structuring your next Morby Method deal?
👉 Submit your deal to us or request a free Proof of Funds letter—Levine Capital has your back.
Let’s say you’re acquiring a property for $400,000, and the seller is asking for $200,000 upfront.
You secure a $300,000 DSCR loan.
At closing, the seller receives $200,000 to meet their needs.
The remaining $100,000 from the loan is returned to you.
The seller carries back a $100,000 second-position note.
Result: You acquire the property while keeping your personal capital intact—and the seller walks away happy.
The Morby Method is more than a technique—it’s a creative mindset. It empowers investors to think outside the box, solve seller problems, and structure win-win deals that traditional lenders often wouldn’t touch.
Whether you’re a seasoned pro or just getting started, understanding and applying the Morby Method can help you close more deals, faster—and with less of your own money.
Ready to dive deeper into creative finance?
👉 Join the SubTo community, subscribe to my YouTube channel, or connect with Levine Capital to start structuring better deals today.
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