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Podcast: Wholesale Hotline | Brent Daniels
Episode: This $5M Deal Was A Trap! -- How Bad Deals Will Destroy Your Cashflow | Subto Show
Description: On today's Wholesale Hotline (Subto Edition), Pace explains why “spreadsheets are stupid” and instead uses a simple cash-in, cash-out method to underwrite even multimillion-dollar deals.
Show notes — in this episode we'll cover:
Pace breaks down how most investors overlook cost of capital, showing how a $1.5M cash investment should earn at least 12%—otherwise, it's a bad use of funds.
A $5M Section 8 portfolio that seems promising at first quickly unravels under scrutiny due to underestimated expenses, inflated future rent projections, and deal euphoria.
Using creative finance—including DSCR loans, seller carries, and transactional funding—Pace transforms a bad deal in...