All Forum Posts by: Cody L.

We charge $50. Our cost to process is $18. The difference goes towards the labor of the applicable property manager to confirm employment, check references, etc.

I've thought about increasing the amount we charge as if the managers spend even an hour on an app, it's about break even. Any more and we're paying to run an app.

I'd be shocked if anyone could get away with $200 on a typical class C apartment. Though at $50/each we charged almost $100k total since Jan of 2022 (so under 2 years). The exact amount of apps ran isn't simply $100k/$50 but it's close. So about 2000 apps. Which means if we charged $75 vs. $50 (assuming that didn't result in a drop of applications) we'd have made an extra $50k

0 Votes

Houston, Texas

Best thing to ask when looking into this group/program is ask what THEY have bought. What THEY own. I'm not saying these guys are not big players in the space, but I've never heard of them.

Beware of people who just teach classes as their income. You want to learn from someone that makes money DOING THE THING, not from someone that makes money from TEACHING THE THING

0 Votes

Quote from @Jay Thomas:

Cash flow is the least important factor in buy-and-hold real estate, with appreciation, leverage, and tax benefits taking precedence. In the current environment, it's challenging to find positive cash flow properties due to rising interest rates, inflation, and high prices, but focusing on appreciation, buying below market value, and long-term holding can still lead to success. In Houston, consider Inner Loop neighborhoods like Montrose, suburban areas with job growth like The Woodlands, and up-and-coming areas such as East End.

Respectfully I couldn't DISAGREE more...

I'm starting to get calls every day by brokers, owners, and banks.. They're all looking to sell properties that were bought in the last few years, at studpi high prices, by people who didn't care about cash flow. They thought the appreciation game would last forever. Rent increases would last forever. etc.

Now they can't pay their bills. And they're ready to give the keys back to the lender.

Meanwhile I'm offering the same price on the properties that I was a few years ago. It's just a few years ago I was getting outbid by people who didn't care about making money. Now, luckily, most of those people are gone. And we're back to a market where people by income properties based on -- wait for it -- the income a property can generate.

I'm loving this correction and hope it continues. People that overpaid need to get flushed out.

2 Votes

Fort Worth, Texas

Quote from @Himashwetha Gowda:

Quote from @Jonathan Greene:

I think Pace is smart and knows a lot, but why pay $7,800 when he gives away all of the information to understand it for free? If you are able to implement on your own, you can get all you need for free for sure. If you want the camaraderie of the group, etc. I am sure it's not a scam at all and would be of value, I just don't think anyone should be paying for these courses when it's all available on YouTube or in blogs or on podcasts for free.

Hey Guys, if you are looking to start investing in real estate, if you are already investing in real estate and want to grow your portfolio, then subto is the place to be. Pace Morby, the amazing human being that he is, he gives and gives so much value that once you are in the community there in no other way but to succeed. The content on youtube is just for educational purpose, inside the course there is much more value. Do not think twice, just join in and grow your real estate portfolio.

omg this is such obvious spam. But I'll play along...

How many sub2 deals have you done after joining? Can you provide some details on them?

3 Votes

Quote from @Garret Wilson:

PACE MORBY SUBTO - Truth of it is...

I know a lot of people are skeptical of programs. I have paid a combined total of roughly $75k for mentorships, courses, and programs in the last 18 months. I own my own marketing company and properties in the PNW. I am NOT a large investor but working towards bridging the gap I paid for and joined the subto community.
I have flown all over the country and met people and experienced the value each program I have joined offers. I will say this, for what Pace Morby's program is it should be 5x the cost. Anyone, and I mean anyone who says its not worth what he charges falls in one of three categories:

1- Already thriving and do not feel they need extra assistance in their REI journey.

2- Believe it is just a course and don't want to spend that much money on an education. Or they did spend the money and they simply looked at it as a course.

3- You can just get the information for free online or somewhere else for cheaper.

These folks dont understand what SUBTO is aside from an "education" or "mentorship". It is a massive community with PMLs and like minded folks who are doing deals together. People are doing deals unlike anywhere else I have seen. This is also NOT just another 6 month program. It is a lifetime of relationships with people who want to partner or learn from each other and share success. As someone who has been through the countless "mentorships" I have found value but never as much as this. I dropped over $50k on one mentorship which pales in comparison to Pace's community with Subto.

This is not some overhyped review to get you to join. I would actually prefer you don't because if you need convincing you probably won't actually take action and do deals. you will just watch videos and live inside the zoom vault watching content never making it happen. If you do need convincing then just take on the free content online. You will get less than 10% of what you get within Subto, and each year that % drops more and more.

I'll just say this. i was a full time Police Officer working in the largest agency in the state and feeling burnt out. This community gave me both growth in REI and friends and a community i LOVE connecting with. The single greatest financial decision I have ever made and its more than paid for itself. But I took action and did not sit idle.

Note: this review and so many other ones are because Pace has given his community some MASSIVE value and he just asked us to find ways to share the value he gives without going overboard. I would love to say more but people wont believe the truth, they will only believe what they think is true. Join or dont - it is truly only going to affect you alone. Find me on social media and reach out if youd like. Instagram - bwillyg , FB - GJ Wilson. Whatever you do, I hope the future is bright for you! The best program is the one you will use and connect with the most. Find that one and get going!

How many sub2 deals have you done after joining? Can you provide some details on them?

0 Votes

Quote from @Chris Boselli:

Quote from @Jay Hinrichs:

Quote from @Chris Boselli:

@Chida Truong I know this is an old post but wanted to leave my thoughts here as well...

Does the program cost money?

Yes, it isn't cheap

Should you still do it?

Appreciate the feedback Jay! He definitely does market his business a lot but what business owner wouldn't, just a new age with social media. Nothing different than Brandon Turner's "No money down" book I guess...

Concepts definitely aren't new and 95% of deals still require some cash, but just like Brandon Turner's book it simply lays out some alternative options to your standard "go get a loan from the bank" buying/selling real estate methods. I have only been investing for ~5 years myself, but current market conditions force even the best of them to adapt or die!

That being said I don't get anything out of sharing this just leaving my honest opinion so others can make the best decision for themselves, best of luck with your business

My guess (and just a guess) is he's one of these guys that makes money teaching people about "sub 2" vs. making money doing what he teaches.
I mean -- after 2008, which is when I started in this business, I did tons of deals that were sub2, wraps, and other creative solutions

(side note: I used to share an old blog post I wrote on the topic 10+ years ago but BP deleted my post once as 'promotion' and that's when I removed all info about my company)

I don't see any reason to pay someone to teach you. I was doing it before it had a trendy name and 'gurus' teaching classes. And no one taught me. And there was almost zero information online. It's not that complicated. Someone owns a $100k home with an $80k mortgage. You agree to buy it from them for $100k. Rather than pay $100k (via cash or new loan), which would result in the owner walking with $20k, you can offer them $20k but keep their existing debt. Which you either assume (which is unlikely to happen in a formal sense, so by 'assume' I mean start payments), or you do a loan with the seller for $80k. You pay him. He pays the bank. If you miss your payment, the deal is structured so he takes back the house.

There, saved you $8k

3 Votes

Short answer: No

I've sold a few of my smaller deals recently. I've been happy to seller finance them. I get a higher rate than I would with that cash in the bank. And I have little to no risk as if they don't pay, I just take back the asset I'm already comfortable with (and keep the down payment)

In fact, last week I bought a large deal from a guy who has owned it for 20 years. I was going to pay cash, then refinance later. I asked him what he was going to do with the proceeds and he was going to buy 10 year treasuries. So I suggested I could pay him a point more than a 10 year and he could seller finance. His income would be the same and he was able to keep almost $1m in his pocket.

With rates where they are, seller financing (or doing wraps, assumptions, subto, etc) is going to become more and more common.

0 Votes

Houston, Texas

I don't do STR directly, but I have about 4 different groups who lease ~50 units from me for STR (they rental arbitrage). These are in Houston. Popular areas (Montrose, galleria area, etc).

While I don't have access to their numbers (our deal is they pay me a fixed amount that's equivalent to what rent would be), I know they do well based on the fact they've been doing it for a while now and many of them ask us to take on more units.

So for some areas of Houston, I know it can work well.

1 Vote

San Diego, California

Quote from @Matthew Rolf:

@Cody L. Thanks for the response. What's your companies name?

I'll message, I try to keep it out of public comments so I can't be accused of 'advertising'

0 Votes

Houston, Texas

All Forum Posts by: Cody L.

Cody L. has started 35 posts and replied 3663 times.

Post: Off-Market 50 units in Houston, TX-Cap 6.64%- 70K/Unit

Post: $200 Non-Refundable Application Fee? + PM Recommendations

Post: Anyone have experience with total wealth academy in Houston

Post: CASH FLOW: Why you have been analyzing your deals all wrong.

Post: Pace Morby Mentorship

Post: Pace Morby Mentorship

Post: Pace Morby Mentorship

Post: Calling it quits and selling out via owner finance… Mistake?

Post: How many STR do you have and what have you learned in your journey?

Post: Client Looking for Property Management Employment in Houston