Tip 1: If you get paid at closing to buy a Morby Method deal, you’re over-leveraged on Day 1. Deploying that over-leverage into more over-leveraged deals is reckless. Deploying it into reserves, rehab, and value creation is much smarter. The Morby Method only works long-term if you underwrite for your exit leverage, not just entry terms. The question you need to answer is this....... At the seller-finance balloon date, will I need to write a check to refinance out of this note? If the answer is yes, you didn’t buy a deal — you bought a future liability.