Is SubTo Legit, or Is Pace Morby a Scam?

By Mike Calloway · Last Updated: November 12, 2026 (Price & Content Verified)

If you’re Googling “is SubTo legit” or “Pace Morby scam,” I get it.

Any time a guy says you can buy houses with no cash and no credit, your spidey sense should tingle.

So I checked. Trustpilot. Court records. The SEC. The fine print on the checkout page.

Here’s the short answer: SubTo is not a scam. It’s a real company, with a real community, teaching a legal strategy.

But “legit” and “safe for your bank account” aren’t the same thing. And the real risk isn’t Pace. It’s the loan you’d be holding.

Why Most Real Estate Courses Suck

Is SubTo a real company?

Yes.

Per the checkout terms, the seller is NRE 2, LLC (New Reach Education), at 1050 W. Washington St. in Tempe, Arizona.

The product is a paid community that teaches subject-to and seller finance. The homepage claims 53,995+ active members in the past 12 months, across 518+ U.S. metro areas, with 10 named coaches who each show a deal-count band.

You don’t get that kind of structure from a fly-by-night operation. A scam doesn’t usually list its coaches by name and tell you how many deals they’ve done.

Is Pace Morby a scam?

No. I’ll say it plainly so nobody screenshots me out of context.

Pace Morby is a real investor with real businesses. He was on A&E’s Triple Digit Flip. He wrote a book with BiggerPockets Publishing. Subject-to is legal.

Now, here’s what I will say. His own numbers move around a lot. His A&E bio from 2021 says he and a partner built over $32 million in buy-and-hold properties. His 2023 book blurb says $150 million. His website now says over $450 million.

That spread doesn’t make anything a scam. It does mean you should treat the big numbers like a fishing story at a family barbecue: probably based on something real, and probably getting bigger every summer. More on that in who is Pace Morby.

What does Trustpilot say about SubTo?

It’s very positive.

• subto.com: 4.9 stars, 1,201 reviews
• pacemorby.com: 4.9 stars, 540 reviews

That’s a strong score. A lot of members are clearly happy with what they got. I’ll come back to the unhappy ones in a minute.

Is Pace Morby being sued?

This is the “pace morby lawsuit” question, and I want to be careful, because this is exactly where the internet gets sloppy.

Here’s the only case I could verify:

Bristow v. NRE 1, LLC, No. 2:24-cv-11398, in the Eastern District of Michigan. (PacerMonitor)

• It was a TCPA case. That’s the federal law about unwanted telemarketing calls or texts.
• It was removed to federal court from St. Clair County Circuit Court.
• The defendants included NRE 1 LLC, NRE 2 LLC and New Reach Education LLC (SubTo’s operating entities), plus one individual.
• Pace Morby was not a named defendant.
• The case was settled and dismissed with prejudice on July 25, 2024.

That’s it. A case about calls or texts, settled, closed.

What about other lawsuits?

A CourtListener search I ran on November 12, 2026 found no federal dockets with “Pace Morby” or “SubTo” as a party name.

And the SEC Form C for SubTo Fund LLC, filed in April 2024, stated the fund was “not subject to any current or threatened litigation.” Per that filing, the fund’s manager is SquadUp Management LLC, which is managed by Pace Morby and Mathis, LLC. It also lists related names like New Reach Education, KeyGlee and AstroFlipping.

What about the rumors?

Yes, there are forum rumors. You’ll find them if you dig.

I couldn’t verify any of them in a court record or official filing. So I’m not repeating them here. If it isn’t documented, it doesn’t go on this site.

If you see a big claim on a forum with no case number, treat it like a group-chat screenshot of a “news story.” Probably not worth forwarding.

So why do people call SubTo a scam?

Mostly because they spent a lot of money and didn’t get what they hoped for. That’s a real feeling. It’s just not the same thing as a scam.

Here are the recurring themes in the 1–2 star reviews on Trustpilot (paraphrased):

• The cost isn’t worth it
• Aggressive sales follow-up by call, text and email
• Slow or missing support
• Trouble getting refunds
• Weak onboarding
• Community members who haven’t done deals themselves
• A few mentions of lost money

One reviewer on the pacemorby.com page summed up the sales experience in four words: “Sales team is ridiculous.”

Add in the checkout terms, which say “all sales are deemed final,” and a footer “Refund Policy” link that returned a 404 when I checked, and you can see why some buyers feel stuck. I lay out every term on the SubTo cost page.

Legit, but is it risky?

Yes. And here’s where I think the real conversation should be.

The earnings disclaimer

SubTo’s own earnings disclaimer says the results it shows “are not typical.” It also says the average person who buys “how to” information “gets little to no results.”

That’s not me being cynical. That’s their legal page.

The due-on-sale clause

With subject-to, you take the deed, but the mortgage stays in the seller’s name. That loan very likely has a due-on-sale clause.

Federal law, the Garn-St Germain Act, lets lenders enforce those clauses. It lists exemptions, like transfers to a spouse or into a living trust. A sale to an unrelated investor isn’t one of them.

So the lender may call the whole loan due. Not must. May. If it does, you pay it off or refinance at today’s rates, and the cheap-old-mortgage math that made the deal work goes out the window.

Even SubTo’s how it works page lists this risk, right next to the line “No money down doesn’t mean no money.”

I go deeper in the due-on-sale clause, explained, and there’s a calculator for the worst case on subject-to risks.

I’m not a lawyer, and this isn’t legal advice. Talk to a real estate attorney in your state before you sign anything.

My verdict: is SubTo legit?

Legit? Yes.

A real company. A real community. A legal strategy. A 4.9 on Trustpilot. The only lawsuit I could verify was a settled TCPA case where Pace wasn’t even a named defendant.

Low-risk? No.

You pay $9,800 up front, on terms that say all sales are final. Then you take on a house with a stranger’s mortgage on it, and a lender that may call the loan whenever it decides to.

If you want the full rundown, it’s in my SubTo review.

What I’d do instead

I don’t think the question is really “is SubTo a scam.” It’s “is this the kind of risk I want to carry?”

For me, the answer ended up being no. Not because the strategy doesn’t work for anyone, but because I didn’t want my income sitting on top of someone else’s loan.

The real estate I like now is a website. It ranks on Google for a local service, and a local business rents it because it makes their phone ring. No seller. No lender. No tenant.

You found this page on Google. That’s the whole idea, working on you right now.

What I'd Do Instead of SubTo