Episode Details
Back to EpisodesBuying A House Subject To -- Everything You Could Possibly Know | Subto Show
Description
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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