Buying A House Subject To -- Everything You Could Possibly Know | Subto Show
Wholesale Hotline | Brent Daniels
Wholesale Hotline
4.9 • 586 Ratings
🗓️ 11 April 2025
⏱️ 13 minutes
🧾️ Download transcript
Summary
On today's Wholesale Hotline (Subto Edition), Pace breaks down a real-life Subject-To deal in extreme detail, showing how he acquired a house with zero dollars out of pocket and turned a break-even rental into a $20K/year cash-flowing asset.
Show notes — in this episode we'll cover:
- What made this property so prime for creative financing, what Pace said and how he pulled it off.
- Pace explains how expired listings (especially those bought between 2020-2022 with no equity) are a goldmine for Subject-To deals and how one of his students sourced this deal using the “Kevin Cho List” strategy.
- Full financial breakdown: $55K total capital (paid by a private money lender), monthly payments of $1,268 (mortgage) + $366 (private lender), and various exit strategies including wraps, lease options, and group homes that can 10X cash flow.
- By turning the home into a group home rental, Pace increases potential rent from $1,800 to $3,600/month, transforming a break-even property into one generating $1,800/month in net cash flow—proof of how exit strategy is everything in creative real estate.
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👽✌️ Learn from Pace and Cody 👽✌️
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⚠️ #CreativeFinance #Investing #Wealth #RealEstateInvesting #Wholesaling #SubjectTo ⚠️
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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as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself.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, it's Terry Norton. Welcome to the Wholesale Hotline podcast and the Flipping Mastery Breakout. |
| 0:08.0 | We want to know how we're doing, so please leave a comment and give us a rating. |
| 0:17.8 | If you're a real estate wholesaler or aspiring wholesaler or any real estate investor who interacts, |
| 0:23.4 | communicates, or transacts with distressed sellers, pay close attention to this video. |
| 0:28.6 | If you don't want to get sued, find, or go to jail. |
| 0:32.3 | I'm Jerry Norton, and it's time for another heart-to-heart talk. |
| 0:35.4 | In light of recent events with the Arizona Attorney General |
| 0:38.7 | suing a group of wholesalers for allegedly, quote, stripping equity from pre-foreclosure sellers, |
| 0:45.6 | it's importantly address how to properly transact with sellers that will keep you out of trouble. |
| 0:51.3 | But first, let me give you some context to what's been happening and why this is relevant. |
| 0:56.1 | Since 2019, the wholesaling industry has been under attack. |
| 0:59.8 | At an accelerated pace, regulation is sweeping across the country state by state. |
| 1:05.1 | From the outside, this movement is in the name of protecting the consumer from the harmful |
| 1:09.5 | practices of wholesalers. |
| 1:11.9 | Some regulatory and consumer protection agencies view the practice of wholesaling as predatory, |
| 1:17.3 | unfair, unethical, dishonest, and harmful to sellers. |
| 1:21.2 | There is a progressive sentiment that distressed sellers are a protected class |
| 1:26.3 | and incapable of making decisions about selling |
| 1:29.1 | their unwanted properties and should be protected from wholesalers who cheat these vulnerable |
| 1:33.9 | and unsuspecting homeowners from their hard-earned equity. Now this pervasive narrative is getting |
| 1:39.2 | more and more traction in the marketplace and this Arizona lawsuit is another strike against wholesalers. |
| 1:45.9 | The truth is, is that while yes, there are occasional bad actors just like every industry, |
... |
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