Pace Morby’s SubTo Review: Is The Morby Method Legit?

March 26, 2024

SubTo mentorship is a real estate coaching program by Pace Morby that teaches you how to invest in real estate using creative financing, including the subject-to method. There are 3 mentorship packages to choose from depending on the degree of support you prefer. With what you learn from SubTo, you’ll be able to use creative financing to make money investing in real estate without spending any of your own money.

SubTo means subject-to, which refers to a method wherein a buyer takes control of a property with an existing mortgage and assumes continuation of the payment. The lender of the mortgage is not informed and the payments are still made under the seller’s name. This method allows investors who have no capital and cannot qualify for a mortgage or long term loans to buy property.

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What Is The Morby Method?

Creative financing in real estate refers to non-traditional methods of securing funding for buying property. This method allows you to secure low interest loans even with a low credit score. The Morby Method is a creative financing strategy meant to solve the problem of the seller wanting too much in down payment. By using the Morby Method, you can even get paid to buy houses. The Morby Method works for any exit strategy.

However, as many expert real estate investors have mentioned in the real estate forums BiggerPockets, the Morby Method is very risky and is looks more like fantasy. Most attorneys would not even want to touch such deal.

How The Morby Method Works

If you find a seller who is open to owner financing but wants a higher down payment, the Morby Method adds a little spin to offer, makes it irresistible, and creates advantages for you. Here's a simplified example of how it works.

A typical real estate sale goes like this:

  1. 30% of the total price as down payment while the remaining 70% becomes a loan.
  2. If you don't have the capital, you will need to open a short term loan for the 30% down payment.
  3. The deal is closed and the remaining 70% will be paid in installment or in full, depending on your agreement and exit strategy.

A typical Morby Method deal would go like this:

  1. You offer 60% down payment while the seller does seller finance for the remaining 40%.
  2. You then get a long term DSCR loan, which has lower interest rates that short term loans, for 70% of the purchase price.
  3. Temporarily loan the remaining 30% from a hard money lender.
  4. Once the deal is closed, the money will be distributed with 60% going to the seller and 40% going to you.
  5. Finally, you pay back the 30% from the hard money lender. This leaves you with 10% off the total property cost in cash.

Pace Morby’s SubTo Review: Pros and Cons

Pace Morby’s mentorship is legit. You will get value from his training and coaching programs. Access to the Facebook group with over 10,300 members where you can ask for support, get contacts, and find great deals to partner on is cited to be one of the most useful parts of the program. About 5,000 students have studied the SubTo course. Pace has earned over $40 million from his SubTo mentorship.


Pace Morby has a wealth of experience in various businesses.

Multiple coaching calls, including weekly negotiation coaching calls.


Prices are on the high end and there are no refund policies.

Pace Morby has questionable business history and practices.

Affiliate program makes it hard to distinguish the genuine positive reviews.


It costs $7,800 for basic Core training, $10,800 for the Standard package, and $12,000-$19,000 to join Pace Morby’s Mastermind group.

Refund Policy

There is no refund policy, so you cannot cancel your SubTo membership. The lack of a refund policy has been grounds for the complaints of many unsatisfied SubTo members.




Mixed reviews. Affiliate program makes it hard to distinguish legit reviews.

Who Is Pace Morby’s SubTo For?

subto mentorship
  1. Beginners who want to invest in real estate. Subject-to financing allows them to invest in properties with little capital.
  2. Real estate investors who want to learn about subject-to financing. This is a good alternative to those who want to scale their property investments without capital.

What Do You Get With Pace Morby's SubTo Real Estate Coaching Program?

  • Core - The basic package comes with the 6 week intensive training on creative financing. The module is designed for beginners and experienced investors to learn the Morby Method of investing.
  • Standard - This package comes with additional modules for other investing methods like Astroflipping, probate, and more, which brings the training program up to 11 weeks. You also get your own virtual assistant for 3 months, a onetime transaction coordinator to do all the paperwork for you, and a CRM.
  • Mastermind - The mastermind package includes all the training modules, a transaction coordinator, and invitation to any live SubTo events. You will also get 1 invitation to spend time with Pace Morby and accompany him on ride-alongs.

How Do You Make Money With Pace Morby's SubTo Real Estate Coaching Program?

  1. Find a seller - SubTo teaches you that the best properties to invest in are distressed properties. Buying distressed properties from motivated sellers will allow you to use creative financing methods, such as seller finance, to your advantage.
  2. Negotiate the deal - Negotiation is a main focus of the SubTo program. There are weekly negotiation training calls for students of the mentorship. Being a good negotiator is key to convincing sellers to agree to a subject-to purchase which will allow you to invest without putting down any of your own money.
  3. Secure the funding - The mentorship teaches you how to use the creative financing method, seller finance, to fund all your deals. You will learn how to secure funding without applying for bank loans or even needing a good credit score. You will also learn how to use Pace’s own “Morby Method” in your negotiations.
  4. Exit strategy - There are several exit strategies to choose from. How much profit and how fast you earn will depend on your exit strategy. Wholesaling has the lowest profit margin but can earn you money quickly. Fix and flip is risky but can yield high profits for a reasonable amount of time. Buy & hold will continuously bring in profits and is great for the long term. 

Are Students of Pace Morby's SubTo Successful?

SubTo has a 4.7 rating on Trustpilot. Most of the positive reviews point to the plentiful coaching calls and the community. However, these reviews seem to lack any real world examples of success. The negative reviews mostly point to problems the students are having as individuals. Keep in mind that these reviews are not verified, so take them with a pinch of salt.

William Welch- Progress Update 6 Months Into Pace Morby’s SubTo Program 

William Welch’s Background Story

Before joining SubTo, William Welch was reselling items on Facebook and eBay. He didn’t have much success in his reselling ventures, so he decided to try Pace Morby’s program, hoping for a better life for himself, his family, and his girlfriend. With just a couple of months’ savings, he dove head-first into real estate investing. His days were packed with walks around his neighborhood while on the phone, chatting with over 120 SubTo folks, and building new connections. But, even with all this effort, money got tight pretty fast. He had to start doing some part-time maintenance work locally to keep himself financially afloat. William even needed his girlfriend’s help to pay off his $500 monthly car mortgage. 

William Welch's Current Business Status

As of the last update, William Welch's business in the SubTo program is showing positive signs of growth, despite some initial challenges. He successfully closed his first real estate deal six months into the program, involving a B2C contract and an assignment to an investor, which resulted in a $12,000 profit split three ways. William is an optimistic guy who built connections with private moneylenders. He was also involved in real estate projects in sober living facilities in Texas and Florida.

William’s Top Business Tips and Lessons

Setting Realistic Expectations: He learned the importance of managing expectations, especially if you’re new to the real estate business. William advises new real estate investors to prepare for the learning curve ahead because they can go for six months without income. 

Building Relationships and Skills: William says the key is to focus on skill enhancement. He emphasizes the importance of tracking progress using KPIs and using systematic practices. 

Community and Expertise Leverage: He recommends the SubTo program because it helped him shift from a 'how' to a 'who' mindset. The collaboration and expertise of realtors inside the community are also valuable. 

What's not mentioned in the testimonial: 

William’s breakthrough deal made a $12,000 profit. This profit was split in three ways, so he only earned $4,000. However, he did not mention that the course costs around $19,000. This means he is still far from recouping his investment on the program 6 months later. On top of that, there are also certain risks involved in SubTo investing like the due-on-sale clause, which gives the lender the right to demand full repayment of the loan after the property is sold. 

SubTo investing also requires a deeper understanding of real estate transactions, financing, and legal implications. Lack of knowledge and inexperience can lead to significant financial losses.

Who Is Pace Morby?

pace morby

Pace Morby is a real estate investor, mentor, and entrepreneur from Tempe, Arizona. He is the founder of the SubTo mentorship program and the co-host of the Triple Digit Flip TV show on A&E with Jamil Damji. Pace owns $32 million worth of real estate properties and has 14 income streams from a variety of businesses, from real estate, to lending and insurance. Originally from Ogden, Utah, Pace has a degree in business management from Weber State University and Utah State University.

Pace Morby got started in the real estate industry as a contractor for 10 years in Arizona. He renovated over 7,000 properties, earning $15 million a year in total revenue on paper, by doing 50-60 renovations a month with about 175 employees. A lot of clients weren’t paying or were delayed on payments with one big client filing for bankruptcy, which cost Pace $1 million cash. Taking what he learned from real estate investor clients over the years, he moved to wholesaling. He discovered subject-to and did his first deal that he got from his friend Jamil Damji.

Pace Morby has 2 books and 1 ebook. His published books are “25 Exit Strategies Your Competition Doesn't Know About,” and “Wealth without Cash: Supercharge Your Real Estate Investing with Subject-to, Seller Financing, and Other Creative Deals.” 

Pace Morby Controversies

There are controversies with Pace Morby's methods and business history. His unorthodox Morby Method is a risky strategy and so far, there is no record of any student that has pulled the method off. He also talks about doing what is called a net listing, which is illegal in most states and can have your real estate license revoked. In 2021, Pace's contracting company, AZ Contracting Group LLC, had its licensed revoked in due to 7 different violations.

Pace was also the subject of investigation back in Utah in 2009. The company he co-owned shut down and could not pay workers who then filed a complaint. The other co-owner, who is Pace's dad Douglas Morby, was in prison on a federal employee tax conviction.

Is Subject-To Worth Doing in 2024?

Subject-to is not an illegal practice, however, it violates loan terms. If the loan is not assumable and the lender finds out, the usual penalty is that the loan will be called in or the property will go under foreclosure. Selling a house subject-to holds high risk for the seller. This is why subject-to deals are usually offered with higher down payment.

What Is the Subject-To Risks for Sellers?

  • Buyer unable to pay mortgage - If the buyer can no longer pay the mortgage, this can be a problem for the seller as the loan remains under their name. For example, a bad tenant did not pay rent or caused some damages to the property which the buyer cannot carry. This could affect their ability to pay the mortgage, which could lead to issues such as the seller covering the loan.
  • Risk of foreclosure - If the buyer is no longer able to continue paying the mortgage, the property could go into foreclosure. A loan contract could also be non assumable and if the change of ownership is discovered without settling, the property could go into foreclosure.
  • Can affect the seller’s credit score - As the mortgage is still under the seller’s name, any infraction would reflect under their name. The seller would then have a harder time applying for new loans.

Subject-to real estate can still be beneficial to both parties. Depending on circumstances, subject-to can be the best option.

Benefits of Subject-To Real Estate

  • Easier to finance - Subject-to real estate is great for investors who don’t have the capital nor the credit score to qualify for a loan. As the buyer is simply assuming the existing mortgage, there is no need to open a new mortgage.
  • Lower closing costs - There are fewer entities involved in a subject-to sale. This leads to fewer up front and closing costs.
  • Faster equity - Since a percentage of the mortgage has already been paid, you’ll gain equity much quicker.
  • Quick sale - Subject-to is a great way to sell a property quickly and be free of the mortgage. This benefits sellers in distressed situations, or investors looking to quickly flip a property with existing mortgage.

Ultimately, subject-to can be a great strategy in real estate investment. It has high risks, especially for beginners who are inexperienced and have no cash flow. Subject-to is recommended for successful and experienced investors who can deal with the risks.

Related Articles on Real Estate Investment

  • Ryan Pineda’s Wealthy Investor - One of the most famous and well-rounded real estate investment coaching programs. For beginners and experienced real estate investors, the program covers various kinds of investment strategies.
  • Jake Strong and Jon Steltzer's Owner Finance Pro - A real estate investment course with a focus on creative financing. The course specializes in owner finance.
  • James Hodges's REI Game Changers - REI Game Changers offers customized coaching based on your market and experience. There is also a heavy emphasis on marketing training that could help you find deals and scale quickly.

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  1. Hey I am Bill Welch. You used my video in your article. I appreciate that. You are incorrect about the cost of the program. It was $8k when I signed up. Feel free to text me 866-794-1618

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