Pace Morby Review (2023): Is Subto Mentorship a Scam?

In this article, we’ll discuss Pace Morby’s Subto online course, which aims to help you with your finances. We’ll explore the key aspects of Subto.

Financial experts often stress the importance of starting to invest early because we can’t work forever. Investing is crucial if you want financial security in your retirement.

When it comes to investing, you typically have two options: the stock market or digital currencies. However, many experts also consider real estate to be a safe and reliable investment.

Unfortunately, not everyone can afford to buy real estate outright, especially in lucrative but expensive areas. For most people, the first step to homeownership is applying for a loan. In contrast, the Subto Mentorship program claims to teach you how to buy real estate without the need for a loan application.

I want to clarify that I have no affiliation with Pace Morby, so my review is unbiased. Towards the end of this article, I’ll also introduce a better alternative that has helped me generate a full-time passive income online.

In this Pace Morby review, we’ll cover the following topics:

Who is Pace Morby?

Pace Morby, known as the Subto Storyteller, is a prominent figure in the world of real estate investment and entrepreneurship. Born in Ogden, Utah, Pace has built a formidable career and reputation in the real estate industry, gaining recognition for his innovative approaches and educational content.

Pace’s path into real estate began with a solid educational background, as he pursued business management at both Weber State University and Utah State University. These educational experiences equipped him with the knowledge and skills necessary for his future endeavors.

Throughout his career, Pace Morby has been actively involved in various business ventures, showcasing his versatility as an entrepreneur:

  1. Arcadia Holdings (2005-2008): At the remarkable age of 23, Pace Morby assumed ownership of Arcadia Holdings, a prominent holding company based in Salt Lake City, Utah. This company specialized in gas and oil manufacturing, boasting annual revenues exceeding $15 million. Under Pace’s leadership, Arcadia Holdings employed over 200 individuals, marking a significant achievement early in his career.

  2. LifeNumber (2011-2012): In 2011, Pace founded LifeNumber, a technology company that focused on providing a standardized method for identifying patients through their Personal Health Records (PHRs) and Electronic Medical Records (EMRs). His entrepreneurial acumen led to the successful sale of the company in 2012.

  3. AZ Contracting (2011-2019): From 2011 to 2019, Pace Morby served as the founder and owner of AZ Contracting, located in Phoenix, Arizona. The company specialized in acquiring and rehabilitating residential properties, contributing to the revitalization of real estate in the region.

  4. HomeVestors Franchise (2016-2019): Pace ventured into the world of real estate franchising by becoming a franchise owner of HomeVestors from 2016 to 2019. As a franchisee, he purchased challenging-to-sell homes, offered cash to property owners, and subsequently undertook renovation and resale or leasing of these properties.

In late 2019, Pace initiated the Subto Coaching program, aimed at educating individuals on real estate investment using the subject-to method. Through this program, he has empowered numerous aspiring investors with the knowledge and confidence to succeed in real estate.

Pace’s influence extended significantly in 2021 when he co-hosted the TV show “Triple Digit Flip” on A&E alongside Jamil Damji. The show was dedicated to sharing strategies for achieving $100,000 or more in profits through the fix and flip method.

Currently residing in Phoenix, Arizona, Pace Morby has accumulated an impressive portfolio of properties valued at $32 million across the United States. His extensive experience includes constructing over 300 new homes, completing more than 500 fix and flips, and overseeing over 7,000 home improvement projects as a licensed general contractor. In addition, he has executed over 1,000 Creative Finance transactions and handled 500 wholesale assignments.

Pace Morby’s commitment to education and community outreach is evident in his substantial investments in travel, lodging, and marketing between 2016 and 2022. These efforts were dedicated to organizing grassroots events and providing free educational resources to individuals throughout the United States, solidifying his reputation as a leader and influencer in the real estate industry.

Pace Morby

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What’s Inside Subto Mentorship Program?

The Subto Mentorship Program, offered by Pace Morby, provides aspiring real estate investors with valuable training and support to excel in the industry. Here’s an overview of what you can expect from the program and its membership packages:

Core Membership – $7,800:

  • Duration: 6 weeks
  • Content: A comprehensive video course covering step-by-step processes in contract management, marketing strategies, business scaling, and various exit strategies.
  • Benefits: Access to a private Facebook group and daily Zoom calls with Pace Morby or other mentors.

Standard Membership – $10,800:

  • Duration: Extends the training to 11 weeks, building on the Core membership.
  • Additional Strategies: Includes advanced strategies such as Astroflipping, probate, and more.
  • Support: Provides a virtual assistant for 3 months to assist you, a free Customer Relationship Management (CRM) tool, and a transaction coordinator to handle your paperwork.

Mastermind Membership – $19,000:

  • Comprehensive Package: Offers everything available in the Core and Standard memberships.
  • In-Person Experience: Includes the opportunity to spend 2 days in Phoenix with Pace Morby in person, participating in a ride-along experience.
  • Networking: Eligibility to join Subto Mastermind live events, providing valuable networking opportunities.

In addition to the paid memberships, Pace Morby offers a free ebook titled “Subto Seller Spells.” This ebook equips you with effective communication lines and strategies for dealing with sellers who may raise objections such as the need for an attorney’s review or requesting a higher price for the property. It provides valuable tips on successfully selling a subject-to deal to the seller, helping you navigate common challenges in real estate transactions.

The Subto Mentorship Program aims to empower students with the knowledge, skills, and support needed to excel in real estate investing, particularly in the subject-to method. It offers a range of membership options to cater to different needs and budgets, and Pace Morby’s expertise and mentorship provide valuable insights into the industry.

Who is Subto Mentorship Program For?

The Subto Mentorship Program is designed to accommodate different types of students:

  1. Beginners: If you’re new to real estate investment and want to explore subject-to investments or other strategies, this program is a practical starting point.

  2. Active Real Estate Investors: If you’re currently involved in real estate but face challenges in making progress, this program offers fresh insights and approaches to overcome obstacles.

  3. Experienced Real Estate Investors: Even if you’re experienced, this program can help you scale or expand your business with advanced strategies and guidance.

Recommendation: Make Passive Income Online

How to Make Money with Subto Mentorship Program?

Making money with the Subto Real Estate Coaching Program primarily revolves around mastering the subject-to real estate investment strategy, one of the 15 different strategies covered in the program. 

Subject-to is a process where a buyer essentially takes over the seller’s existing mortgage without formally notifying the lender. This means buying houses without needing to qualify for a new loan or provide bank and tax records or proof of funds.

Pace Morby, the program’s mentor, teaches 7 exit strategies within the subject-to approach:

  1. Rent: You can rent out the property to tenants at a rate higher than the monthly mortgage payment. This allows you to generate monthly cash flow.

  2. Lease Option: Find an investor willing to pay you more than the monthly mortgage payment with the intention of eventually buying the property. They typically write you out and refinance with their lender.

  3. Wrap-Around: Sell the property with the existing mortgage in place, often requiring a down payment of $15,000 to $35,000. This strategy is ideal for individuals who can’t qualify for their own mortgage.

  4. Sub-Tail: Essentially, you fix and flip a property with the existing mortgage in place, avoiding the need for a new loan. You take over the seller’s mortgage for the duration needed to renovate and sell the house.

  5. SRRR (Subject To Purchase, Rehab, Rent, Repeat): This approach is similar to the BRRRR method but without the need for refinancing. You bypass hard money loans and the 6-month waiting period for refinancing.

  6. Group Home: Operating the property as a group home can yield higher income potential, making it an attractive option for generating revenue.

  7. Airbnb: Convert the property into an Airbnb, which can be highly profitable with the right location and demand. Airbnb rentals often command higher nightly rates compared to traditional long-term rentals.

Read more: How to Make Money from Real Estate

What Does “Subject To” Mean?

The concept of “Subject To” in real estate refers to a buyer’s assumption of an existing mortgage when purchasing a property. This approach is used when a house is sold, but the mortgage is not fully paid off. 

When a property is sold, the existing mortgage may not be fully paid off. In such cases, the buyer can choose to assume the existing mortgage, which means they take over the responsibility for making the mortgage payments.

In a traditional real estate transaction, the seller receives the remaining money from the sale once the mortgage is paid off with the proceeds of the sale.

Alternatively, the buyer can opt to take over the remaining mortgage payments, a process known as “mortgage assumption.”

An intermediate option is “Subject To.” In this scenario, the buyer agrees to make payments to the mortgage company on behalf of the seller until the mortgage is paid off in full. This means the buyer is responsible for repayment, even though the mortgage is still in the name of the original owner.

The buyer may need to make a large one-time payment to pay off the mortgage or make regular payments over an extended period.

There is typically no formal contract between the parties involved in a “Subject To” transaction. In some cases, the buyer may not be required to make additional payments on the mortgage after the transaction closes.

If the buyer fails to make mortgage payments, foreclosure may occur. Initially, the seller assumes a higher risk because the buyer is not obligated to make the mortgage payments. However, the buyer becomes the legal owner of the property, even if they default on the mortgage.

Foreclosure may take place if the buyer does not fulfill their obligation to make mortgage payments, which can motivate the buyer to meet their financial responsibilities.

Benefits and Risks of Pace Morby’s “Subject To” Approach

Pace Morby’s “Subject To” real estate investing strategy is a creative financing approach that offers both advantages and risks for both buyers and sellers. This strategy distinguishes itself from other methods due to its unique characteristics. 

The subject-to method stands out in creative financing because:

  1. No Qualification Needed: Buyers don’t need to qualify for new financing, making it accessible to individuals who may not meet traditional lending criteria.

  2. Potential for Low-Interest Rates: Buyers can benefit from the existing low-interest mortgage rate on the property, which could be more favorable than current market rates.

  3. Lower Up-front Costs: There are fewer up-front and closing costs compared to traditional financing methods. This means no dealing with banks, title companies, agents, or loan officers.

  4. Equity Building: Since a portion of the mortgage has already been paid by the seller, buyers can quickly build equity in the house, potentially leading to long-term financial gains.

Benefits for the Buyer

  • Accessibility to real estate investment without financing hurdles.
  • Potential for favorable mortgage interest rates.
  • Reduced upfront costs and simplified transaction process.
  • Opportunity to build equity quickly.

Risks for the Buyer

  • The risk of losing the property if monthly mortgage payments are not made on time.
  • The lender can call the loan due, leading to foreclosure if payments cannot be made within 30 days.
  • The need to purchase a new insurance policy for the property.

Benefits for the Seller

  • A subject-to deal can be an ideal solution for sellers facing foreclosure, as it can save their credit.
  • Sellers can sell the property “as is,” avoiding the need for costly repairs or renovations.
  • Investors looking to finance new and more profitable deals can quickly dispose of a property.
  • Sellers are not responsible for closing costs in subject-to deals.

Risks for the Seller

  • As the mortgage remains in the seller’s name, the buyer’s failure to make timely payments can negatively impact the seller’s credit score.
  • The lender may enforce a “due on sale” clause, requiring the outstanding mortgage to be paid upon sale. This can result in less profit for the seller.

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Are Pace Morby’s Students Getting Results?

There are both positive and negative feedback from students of the Subto program on review websites like and However, I’ve noticed that most of the positive reviews about the program appear to be generic.

Here are some negative reviews that, in my opinion, come from real students:

Pace Morby negative review

Pace Morby negative review

Pace Morby negative review

Pace Morby negative review

Here are some positive reviews of the Subto program, and as you can see, they don’t provide specific details about their results:

Positive review of the Subto program

Positive review of the Subto program

Certainly, you can find success stories on their official website.

Subto success stories

Recommendation: Make Passive Income Online

Praise for Subto Mentorship Program

1. Expert Guidance from Pace Morby

Students can benefit from Pace Morby’s extensive experience as an active real estate investor. His mentorship provides valuable insights and practical knowledge, whether you’re a beginner or an experienced investor.

2. Access to a Supportive Community

You can join a private Facebook support group with over 5.4K members. This community offers a platform to share experiences, seek advice, and network with fellow investors. Plus, you’ll find regularly updated scripts, contracts, and spreadsheets, all vetted by Pace Morby’s legal team.

3. Extensive Zoom Call Support

After signing up for the course, students can engage in 10-25 hours of weekly Zoom calls. These live sessions allow you to interact directly with Pace Morby and other mentors, enabling real-time Q&A sessions, clarifications, and personalized guidance on various real estate investment topics.

Criticism of Subto Mentorship Program

1. High Cost, Especially for Beginners

The Subto Mentorship Program can be quite expensive, which may pose a significant challenge for beginners looking to enter the real estate industry. The substantial financial commitment required may deter those with limited resources or those seeking more affordable learning options.

2. No Refund Policy

A notable drawback is the absence of a refund policy for the program. This means that once you invest in the program, there’s no option to get your money back, regardless of your satisfaction or changing circumstances. This lack of flexibility may be concerning for students who need more assurance.

3. Questionable Reviews and Marketing

The program has faced criticism for its reviews and marketing practices. Some reviews promoting the course have raised doubts about their authenticity, which can make it challenging to trust the program’s reputation. Of course, there are also legitimate negative reviews from students. 

Is Pace Morby a Scam?

Pace Morby’s Subto Mentorship Program isn’t a scam, and it offers a genuine opportunity for real estate investing. However, some students have concerns about its cost, especially when additional expenses for tools and services are factored in. There have been allegations of persistent upselling, with members feeling pressured to buy more products or services to succeed.

Questions have also arisen about the community dynamics within the program. Some students claim that critical posts are censored, concerns are removed, and differing opinions may be suppressed. These practices raise doubts about the program’s transparency and fairness.

It seems that the program’s priorities may have changed over time, potentially affecting the quality of mentorship and support. There are also accountability issues, with promises made to members that may not have been kept.

It’s essential to remember that real estate investment is not a quick and easy way to make money. It often involves small profit margins, requires a significant commitment of time, energy, and money, and entails complex financial and legal aspects. Success, especially for beginners, often necessitates a dedicated team and strong work ethic, as solo efforts can be challenging.

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