Hey guys, Pace Morby here. Welcome to Wholesale Hotline podcast. Today we're going to be talking

about wholesaling and how you can get started. But I want to tell you, wholesaling is not just an

amazing way for you to get started in real estate, but you can also build cash flow and build

a portfolio in the process. Today's episode, you will walk away with tremendous notes.

And I want you to remember, we do a live episode every Monday night

over on my YouTube channel, YouTube.com forward slash pace morby.

Head over there and you can meet other audience members and do deals in the live chat.

Remember to subscribe, give us a little bit of love, and make some comments in the show

notes down below so we know what to talk about in the future enjoy today's episode the team behind us

does 62 deals every single month and it's not the deals that they do that I love

it's actually the deals that they don't do.

The reality is not every real estate deal is a deal.

We have to look at hundreds of deals every single day in order for us to buy one.

The deals that we don't do actually save us from two years of turmoil, legal fees, evictions, all sorts of problems. And so today, we're going to be talking about how I saved somebody

from an atrocious deal. We're going to be breaking down in front of a live audience. And this is

actually only a short version of this. If you want to see the whole video, click the link down

in the description below. But in the meantime, enjoy it. I think before you understand creative

finance, you look at this deal and you go, oh yeah, this is a deal. Five million dollars. This is how a traditional investor looks at it. They go, okay, I'm going to bring $1.5 million to the table. That's a little bit less than 30%. A little bit less than 30%. The problem is what people want to do is they want to see a big spreadsheet before they say yes or no. not even going even going going to look at a spreadsheet. Rule number one, spreadsheets are stupid because it doesn't get you to the heart of the problem, doesn't get you the heart of like what's really going on here. Did you see how quickly I ask, well, what's it bringing in? 54,000 gross. Okay, what's my DSCR loan? 28,000 172. Okay, what goes to your mind when you start looking at, oh, $54,000? It's bringing in $54,000 now,

and my cost of the loan is $28,172. What pops in your mind? Not much left after what? What are the

things that you got to do? One, the number one thing you've got to consider is cost of the capital.

And this is where nobody pays attention are sitting here going, yeah, I'm willing to put one point mother-freaking $5 million in a deal and not consider the fact that that thing has a cost of capital. Well, it's my money, pace. It doesn't cost me money. Oh, it doesn't. Does your $1.5 million, is it not currently being eroded away by the federal government and inflation? No matter where it goes, you need to consider that money needs to be making you at least 5% to

7% to break even, correct?

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