Busting The Biggest Myth In Creative Finance -- Complete Guide For Due On Sale Clause | Subto Breakout
Wholesale Hotline | Brent Daniels
Wholesale Hotline
4.9 • 586 Ratings
🗓️ 27 June 2025
⏱️ 133 minutes
🧾️ Download transcript
Summary
On today's Wholesale Hotline Podcast (Subto Edition), Pace Morby breaks down why lowballs are necessary to run a business with deal breakdowns.
Show notes -- in this episode we'll cover:
- Pace Morby breaks down exactly why a $315K "deal" in Mesa, AZ with a $460K ARV is actually a money-losing trap—despite a $145K spread on paper.
- The real math behind flipping: Pace reveals his full cost breakdown including purchase, closing, renovation, holding costs, agent commissions, and concessions—showing how thin margins kill deals.
- Why real estate agents label investor offers as "lowball"—and how Pace explains it's usually due to lack of investing experience, not malice.
- A masterclass in investor mindset: Learn to say no to bad deals, identify seller pain, and move quickly when the numbers (or motivation) don’t work.
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🚧🚧🚧 DISCLAIMER 🚧🚧🚧
❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a Podcast for entertainment purposes ONLY ❎
Transcript
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| 0:00.0 | Hey guys, Pace Morby here. Welcome to Wholesale Hotline Podcast. Today, we're going to be talking |
| 0:03.7 | about wholesaling and how you can get started. But I want to tell you, wholesaling is not just an |
| 0:07.8 | amazing way for you to get started in real estate, but you can also build cash flow and build |
| 0:12.7 | a portfolio in the process. Today's episode, you will walk away with tremendous notes. |
| 0:18.0 | And I want you to remember, we do a live episode every Monday night |
| 0:22.4 | over on my YouTube channel, YouTube.com forward slash pace morby. |
| 0:27.1 | Head over there and you can meet other audience members and do deals in the live chat. |
| 0:31.9 | Remember to subscribe, give us a little bit of love, and make some comments in the show |
| 0:36.4 | notes down below so we know what to talk about in the future. |
| 0:39.2 | Enjoy today's episode. |
| 0:45.5 | Hi guys, Pace often gets questions on the do on sale clause, so we put together the ultimate do on sale clause podcast of all time. |
| 0:54.9 | We'll be breaking this episode into seven chapters covering everything due on sale clause related. |
| 1:01.0 | We hope this will be a comprehensive guide you can use to refer back to whenever you have questions about the do on sale clause. |
| 1:10.0 | Enjoy. Chapter 1, the basics. |
| 1:13.6 | I keep getting comments on the do on sale clause. Let's break this down one more time. |
| 1:20.6 | I want to make sure we whiteboard and explain to you what the do on sale clause is and how you can overcome it. |
| 1:25.6 | Most of the time people are worried about do on sale clauses as it comes to subject two, right? When people are doing subject two |
| 1:31.4 | transactions. But essentially in a sub two transaction, Pace or you, the investor, we're looking |
| 1:36.4 | to avoid banks. We're looking to avoid credit. We're looking to also help a seller in a situation |
| 1:41.7 | that subject two actually helps. I have a seller. I called her last week. This is a real story of a real deal we are actively in contract on. |
| 1:50.0 | Ginger, her husband, got hit by a semi-truck. |
| 1:56.0 | Semi-truck hits her husband, he loses three limbs, he loses also the ability to pay his bills because he lost |
... |
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