How Pace Morby Built a $450 Million Portfolio Without Using His Own Money

Next Level Agents: The Kevin & Fred Show - Interviews with the best and brightest minds in the real estate industry

In today’s market, most of us are coming up against the same problem - belligerent sellers who think their home is worth more than everyone’s saying it is. Under normal circumstances, that means no deal, but there’s strategy for these kinds of leads, creative finance.

Creative finance is an incredibly simple strategy that many in real estate treat as illegal or wrong. The truth is, the people who do creative finance, make the water muddy so you think it’s deep, it’s actually something a lot of us can easily do.

We have thousands of creative finance deals sitting in our database, and there’s an easy way to go after them. Pace Morby has built a portfolio of 2132 doors, worth $450 million without using his own money or borrowing a single cent. Today he shares why every agent should be using this strategy and how it works.

Change your identity

Pace worked as a contractor for many years, and one day a real estate investor he was working with said, “you’re not in real estate, you’re a slave to my business - you’re a simple Google search away from being replaced.” As agents, we are service providers to the people who own the real estate. Just because you helped someone else facilitate a sale in real estate, doesn’t mean you’re an investor.

Investing and Taxes

The IRS wants people to solve affordable housing for the country, and they’ll incentivize investors to create more housing and offset their income so they don’t have to pay taxes. If you make millions of dollars in cash flow, why wouldn’t you want to use your own money? If someone can lend me their own money at 10%, it’s a lot better.

A Huge Opportunity

50% of investments bought in 2022 were back on the market in 2023, because people think owning real estate is easy and when they discover that it’s not, they want to get rid of the home.

How to explain seller financing to a seller

Most sellers think their home is worth more than everyone is telling them. When you use creative financing, you actually want the sellers who want too much money because you can offer them payments. Let’s say you’re trying to sell a car for $10k, and you don’t get any bites until you offer payments.

There’s More to Real Estate Than Listings

Real estate agents are only focused on the listing, that’s like playing 18 holes of golf with a putter. You should have more than one golf club. Low inventory isn’t the problem, low affordability is, and creative financing is how you solve it. In this scenario, everyone wins - buyer, seller, agent and investor. Where can you find creative finance deals - through expireds. You can approach them and say, “I know buyers who are open to paying the price if you give them terms.”

Go to Propstream and filter for homes purchased between 2019 and 2022, VA or FHA loans, homes bought with almost no money down, sellers with low equity and homes on the market for over 100 days.

Guest Info

Pace Morby is the host of A&E’s most popular TV show ‘Triple Digit Flip’ and one of the most creative real estate investors on the planet. Using dozens of non-traditional strategies called Creative Finance, Pace has acquired 1,000’s of doors nationwide and built a portfolio totaling over $450 million in assets. Each week, Pace teaches tens of thousands of students in his online communities which is becoming the #1 source for anyone looking to get started in real estate utilizing Subject To, Seller Finance and the Gator Method!

Go to https://pacemorby.com/ for more information and follow @pacemorby on Instagram.

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