Morby Method Review: How the 60/40 Deal Works

By Mike Calloway · Last Updated: November 12, 2026 (Price & Content Verified)

The Morby Method is the strategy with Pace’s own name on it.

That usually means it’s the one he’s proudest of. Like a dad naming his barbecue sauce.

So what is it? Reportedly, it’s a way to buy a property using a new lender loan for a big down payment, then having the seller finance the rest.

That’s genuinely clever. It solves a real problem for sellers.

But it also means you walk out of closing owing two different people. Here’s my Morby Method review.

Why Most Real Estate Courses Suck

What is the Morby Method?

I couldn’t find an official Morby Method page or product. So here’s how outside sources describe it.

According to Levine Capital, the Morby Method is reportedly a seller-finance structure:

1. A lender, such as a DSCR loan or a fix-and-flip loan, funds a big down payment to the seller.
2. The seller carries the rest as a note, and you pay them over time.

One description uses a 60/40 split: 60% down from the lender, 40% carried by the seller.

For context, SubTo defines seller finance as “the seller is the bank: you sign a promissory note and a deed of trust and pay them directly.” The Morby Method, as described, is that, plus a lender in front.

How does the 60/40 Morby Method work?

Let’s walk through a made-up example. These are round numbers I picked to make the math easy, not a real deal.

Say a house sells for $300,000.

The seller walks away from closing with a big check. Then they collect payments on the rest.

You walk away with the house and two monthly payments.

Why sellers might like it

This is the part I think is genuinely smart.

Plain seller financing can leave a seller with very little cash at closing. And subject-to asks a seller to leave their old loan in their own name, which plenty of sellers won’t love.

The 60/40 structure, as described, gives the seller a large chunk of cash at closing and an income stream after. That’s an easier yes than “let me take over your mortgage, trust me.”

Credit where it’s due. It’s a creative answer to a real negotiation problem.

Is the Morby Method a course? How much does it cost?

I couldn’t find a standalone Morby Method product or price.

From what I could find, it appears to be taught inside SubTo, rather than sold on its own.

So if you want to learn it from the source, the price tag is SubTo’s: $9,800 in one payment, or 4 payments of $2,450, per the official checkout page. The checkout terms say all sales are final (except hard goods like books), with disputes going to confidential arbitration in Arizona. Full breakdown on my SubTo cost page, and my take on the program is in my SubTo review.

The risk: stacking a new loan and a seller note

Here’s where I get less excited.

You owe two people at once

You’ve got a lender loan and a seller note. Two payments, two sets of terms, two parties who expect to be paid every month.

The rent has to cover both, plus taxes, insurance, repairs and vacancy. That’s a lot of mouths to feed from one house.

The lender loan is a new loan at today’s terms

The big advantage of subject-to is keeping someone’s old, cheap rate. The Morby Method, as described, doesn’t do that for the biggest chunk. The 60% comes from a new lender, on whatever terms you can get now.

So if the deal’s math was thin, the lender’s payment is the part that can make it thinner. It’s the same rate-shock idea I show with the calculator on the subject-to risks page, just baked in from day one.

You have to qualify

A lender funding the down payment means a lender looking at you, the property, or both. That’s very different from the “no cash, no credit” vibe a lot of creative finance marketing gives off.

Two agreements to get right

How the lender loan and the seller note fit together, what happens if you miss a payment on either one, and what each party can do about it: that’s all in the paperwork. And the paperwork is doing a lot of work here.

I’m not a lawyer, and this isn’t legal advice. Talk to a real estate attorney in your state before you sign anything.

It’s like financing a car with the dealer and borrowing the down payment from your in-laws. Totally doable. But now Thanksgiving has a balance due.

Morby Method pros and cons

Show Me Real Estate Without a Mortgage

Morby Method vs subject-to vs Gator

Pace’s three big strategies put the risk in three different places:

• Subject-to: you hold a house on a loan in a stranger’s name that the bank may call under the due-on-sale clause. More on whether subject-to is legal.
• Gator Method: you lend cash to someone else’s deal and hope it closes. See my Gator Method review.
• Morby Method: you take on a new lender loan and a seller note at the same time.

None of them is “no money, no risk.” They’re three different answers to “whose risk is it?” and in every one, a big piece of it is yours. My full Pace Morby review covers how they fit together.

My verdict

The Morby Method is a smart structure. I mean that. Getting a seller real cash at closing is a better pitch than “trust me with your mortgage.”

But it’s still a house with two loans on it, and a landlord’s to-do list on top.

Me? I’d rather own real estate with zero loans. I build websites for local services, get them ranking on Google, and rent them to businesses that want the calls. No lender. No seller note. No Thanksgiving balance due.

You’re reading this because a website ranked. That’s the whole idea.

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