yeah go for it uh go ahead uh yeah Cody you had a question what's your real name yeah uh my real name is Dakota but I've been called Cody my whole I get called Dakota as like professional legal stuff nice man where where you calling from oh I'm I'm in Illinois Central Illinois okay cool yeah so my question was uh so if you take over a uh property that's like subject to what happens to the owners of that property's his Equity so on that example I think you already answered this but I just need to I need you to explain the little but okay so we had that $300,000 house if the owner had say $120,000 in equity or on yeah 120,000 so he'd already paid $120,000 and we take over those payments that would leave us with what uh $80,000 left correct okay this is a beautiful question and uh if is cash in here cashley is going to love this because she's going to know exactly what we're talking about here in a second so they have a mortgage right what yeah they have a mortgage what I'm asking okay yeah yeah okay wonderful cashley you're gonna like this one so there's a house that's worth 300,000 that that's what it's worth currently and they have a mortgage of 180,000 and we're going to sub to this $180,000 loan we're going to take over these payments but that leaves us $120,000 in equity and this is where negotiations come in you could could give him $120,000 cash that's what the that's what the owner of the property's already paid for his mortgage payments uh no not technically so let's say Pro actually no um because he may have bought this house in I don't know let's say he bought the house 10 years ago for 200 and I don't know 220,000 but it's appreciated and now it's worth 300,000 right so right it could have just appreciated maybe he's maybe he's only paid $40,000 of his well actually if he bought it for 220 he probably had a down payment he could have only paid 10 20 $30,000 of his mortgage up to this point but appreciation has caus his house now to be worth 300,000 does that does that make sense to you yeah so so if I have a kind of a follow-up question to that if he had gotten that house if he had gotten that house for 300,000 and then kind of fell behind but he had he had already made like 120,000 in in his mortgage payments but he still owed 180 and then we come in and say hey we can take over your payments uh what happens to his to that that money that he already put in does he is does he get compensated for that somewhere yeah we're going to talk about that right now so one that example is not likely in current situations because if you've already paid off half of your mortgage pretty much $120,000 is probably like 20 years of a mortgage payment I know that doesn't make a lot of sense guys because you're like that 20 years that's probably how it works because you pay more interest at first so imagine you PID for 20 years your house has gone up in value there there's no way in real estate where real estate doesn't go up over 20 years but let's just run with your example let's say you bought a house for 300,000 and he's paid $120,000 of the of the loan uh yeah because it's it's it's worth 120 so that comes back to this it just a pure negoti what we're talking about is when you have Equity this is equity how do we pay this Equity now that's up for you to decide you could come cash sorry that was that was my overall question sorry I made it's hey we love complicated situations you could pay this cash I mean that's not very creative but you could and if I was going to pay this cash I wouldn't pay a full value so maybe you could say hey here's $40,000 cash but they're like dude I have 120 Grand in equity take it or leave it go and try to sell that what you so you could come in cash and try to get a good deal that's one option or you could say let do a hybrid deal you hear that cashley let's do a hybrid deal and what's a hybrid deal well we talked about in our last video but that's pretty much saying I'm running out of space here this 120 Grand we're gonna do one fun thing we're gonna seller finance that big shout out to Pace he's the one who who made hybrids famous we're going to set up a second note and seller finance this we can talk about this more another time or what pace morby does mostly is he says hey your Equity what I'm going to do is I'm going to get a private money lender and I'm actually gonna get a loan from somebody like you or me who actually lends out money and they're going to loan me that 120 Grand and then I'm GNA give you that 120 Grand cash and then I'm gonna pay back my private money lender over time that's an option if you have a good lender but just know that's probably going to cost you like 12% interest so those are really the three ways to pay off equity it's either cash it's or it's getting a a seller getting a loan from the seller which is seller financing that's called a hybrid deal when you sub to in seller finance or it's getting a loan from a third party a private money lender