Digital Social Hour - Buying Houses with $0 Down and During Childbirth & Working with Grant Cardone I Pace Morby DSH #422

Episode Date: April 19, 2024

Pace Morby comes to the show to talk about buying houses with $0 down, buying a house during childbirth & working with Grant Cardone APPLY TO BE ON THE PODCAST: https://forms.gle/D2cLkWfJx46pDK1MA BUSINESS INQUIRIES/SPONSORS: [e-mail] SPONSORS: Deposyt Payment Processing: https://www.deposyt.com/seankelly LISTEN ON: Apple Podcasts: https://podcasts.apple.com/us/podcast/digital-social-hour/id1676846015 Spotify: https://open.spotify.com/show/5Jn7LXarRlI8Hc0GtTn759 Sean Kelly Instagram: https://www.instagram.com/seanmikekelly/ Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit podcastchoices.com/adchoices

A little bit over $100 million in the portfolio just from Creative Finance. Jeez. I saw one of the deals you were in the hospital when your kid was being born. Yeah, two deals that day I closed. I was getting texted from my notary and she's like, hey, where are you at today? My son's being born. She's like, can we meet you at the hospital?

I'm like, yes, actually. That'd be great. I would love to do a deal in the hospital while I'm waiting for my son to be born. That'd be cool. That is insane. Wherever you guys are watching this show, I would truly appreciate it if you follow or subscribe. It helps a lot with the algorithm. It helps us get bigger and better guests, and it helps us grow the team. Truly means a lot. Thank you guys for supporting,

and here's the episode. All right, we finally made it happen. We're here with Pace Morby. We're trying to do this for like a year now. Look at your studio, man. It's nice, right? Your team is solid. This is an amazing experience. Thank you so much for having me. I appreciate it. Absolutely, man. So what's new in the sub two world? Any new deals? Actually, last year, we bought so many deals. We bought so many houses, RV parks, apartment buildings, all using creative finance. I have a different goal this year. The goal this year is actually to buy less. We had a big problem the last quarter of the year. We bought so many deals

that my team couldn't keep up. Because just because you buy a piece of real estate doesn't mean it's going to manage itself, right? You have to, what we do, what we call is onboarding. So I buy the property, seller moves out of the house. I now own the property. I've got to take that property over, make a determination of what's my exit strategy. Am I going to Airbnb it? Am I going to turn this into a midterm rental, like nursing home? What am I going to do with this house? That takes a couple of days. Then you make a determination of how much you're going to spend. Okay. Then you get the contractors in there. And then it's, you know, imagine having three houses a day that you buy and you have to have three new decisions every single day and three new crews on houses every single day. And that compounds to a point where you go, dude, we

got to slow down. So the goal this year is to actually do 20 or 30% of what we did this last year. We just grew and blew up way too fast. So you were buying three houses a day? There was weeks that we did. Yeah. I bought over a thousand rentals last year and put them in the portfolio, a little bit over a hundred million dollars in the portfolio just from creative finance. Jeez. I saw one of the deals you were in the hospital when your kid was being born yeah two days till two deals that day i closed the debt i was getting texted from my notary and she's like hey where are you at today my son's being born she's like can we meet you at the hospital like yes actually that'd be great i would love to do a deal in the hospital

while i'm waiting for my son to be born that That'd be cool. That is insane. That's cool. Business is important. Yeah. Business is important. I mean, you want to have a story to tell your kids. Obviously you want to set an example for your kids. And I want to be able to tell my son, Hey, just so you know, the day you were born, I signed two deals right in the waiting room and you know, real estate is your legacy. And this is important. I mean, he could do whatever he wants to do for all I care, but you know, showing him that this is what the family does. And this is how we've built our wealth. wealth, giving him at least some parameters and saying real estate is our thing. We signed two deals while we were waiting for you to be born. It's kind of a cool story. It is. I love your strategy too, because you're not risking your own money.

I'm not. I'm not risking my own credit. It's crazy. So we have 2,100 rentals in the portfolio. We have about 300 single family homes, 1,700 of the other doors are multifamily, RV parks, mobile home parks. And we also buy businesses with Creative Finance, which is a lot of fun. Cars. I mean, everything you can imagine. I own my personal home, my ranch in Montana's Creative Finance. Businesses we buy, everything's with Creative Finance. I'm not using any credit, which 10 years ago when I was just a contractor

building houses, you know who Opendoor is? I've heard of it. So Opendoor is a big, massive real estate buying company. Same thing with Zillow. I was Zillow's contractor, Opendoor's contractor and Offerpad's contractor. That's what I did in my twenties. And then when I learned about real estate and I learned about creative finance, the first thing I said was that's, there's no possible way that you can go buy a piece of real estate without using any credit, without going to a bank, without using tax returns, without using, like showing your job history and saying,

hey, Mr. Loan Broker, I need a loan for this house. I have not done that in 10 years. We have 2,100 rentals in our portfolio and not one of them is on my credit. Wow. Not one of them is on my credit. Not that I would ever let the houses go and fail, but if let's say the whole entire world imploded,

I died, my company fell apart, none of those houses would ever hit my credit. Didn't use my credit to acquire them, won't hit my credit if I end up losing them for whatever reason. That's insane. So you put them all under a business LLC? I put them under a business LLC,

but to acquire them just for people to understand so I can tell the people, I acquire them by one of two methods. One, I'm either taking over somebody's existing payments. Kind of like if you think about it from a perspective of if somebody is sick of their car payments, can I just go over to that guy and say, hey, I'll take over your car payments? Yes, of course.

Technically, you can do that. Well, guess what? You can do that in real estate. You can do that in businesses too. A lot of businesses have these like EIDL loans or the PPP grants and all that kind of stuff. We just take those payments over and take over people's full-on businesses.

Like we bought a business this year on June 10th. It was generating $6 million a year in revenue. Took over half of it with no money out of pocket, no credit check, no banks, no nothing. So whether I put it in my personal name or I put it in an LLC, it does not matter. I didn't use credit to get that property in the first place. Wow.

Like zero. I've not had my credit pulled. I see all these people go, let me build credit. Let me do all this stuff. Cool, you guys do that thing. I don't know my credit score. And I have $450 million in our portfolio. I don't even know my credit score.

What if you had like a 300? I might. I mean, I have one American Express right here on my phone, one American Express. I pay it off every single week or somebody on my team pays it off every week. I have no debt outside of real estate, but I imagine my credit's probably pretty phenomenal since I pay my Amex off every week. Or somebody would tell me, don't pay your Amex off every week. I don't know. It's too confusing for me. So I just don't care.

Yeah, that is so cool. How are you sourcing these deals? A lot of different ways. I would tell if somebody's brand new right now and they want to go get a deal, a couple of places I would go. I would go to expired listings. So what is an expired listing? Expired listing is real estate agent.

Actually, you have Lisa Song Sutton that's going to be coming in the studio in a couple minutes. I'm a good friend of hers. And she's a good friend of mine. I love her. She's an agent. Actually, you have Lisa Song Sutton that's going to be coming in the studio in a couple minutes. I'm a good friend of hers. And she's a good friend of mine. I love her. She's an agent. So right now in Las Vegas, where you're at, there's about 800 real estate agents that get fired every single month. That's about 20 to 30 a day. They get fired because they couldn't sell the house for six months. So the agent gets hired by the seller. Seller says, hey, Mr. Agent or Miss Agent, will you sell my house? Yeah, absolutely. I can sell it in two weeks.

This is not going to be a problem. Typical agent answer. Agent can't sell it because of one of two reasons. One, the seller wanted too much money, right? Sometimes sellers are crazy and they want too much money. I love those leads. And I'll tell you why I love those leads. Or the seller doesn't have any equity.

That's where we take over their payments on a house that they don't have any equity on. So agent gets fired after six months, can't sell the house. We call the seller directly and we go, hey, I'm a buyer. If you will let me make payments to you, I'll pay whatever your price is. Seller says, well, I had it listed for 400 and we were getting offers at 320. I don't want to sell my house at 320. Great. You want 400?

I'll give you 400. But I want to do a $0 down deal and I pay you 3% interest and I give you a monthly payment and you become the bank on this deal. So the way I explain it to people is, let's say I want to sell my phone. What do you think this iPhone 15 is worth?

A thousand. A thousand bucks. Okay. So I want to sell this iPhone 15 on the market. What's the market? Craigslist, let's say, right? I put it on Craigslist. Am I going to get a thousand bucks or will I get like 890 or 910 or 950? Somebody will lowball me, right? So if I go to the seller that's selling that and I go, hey, I'll pay you $1,100 for that iPhone. But what I want is to give you $100 a month for the next 11 months. Will you then sell it to me? That's seller finance. Now that seller is letting you take the phone

and you're paying them a hundred bucks a month. So the majority of our deals come from expired listings. And if you don't want to be the person calling and doing the cold calling and calling the seller, there's a lot of people in my community, the sub two community that do all the calls and they'll just wholesale you a deal. In fact, right here, Eric, right here in the studio sold me a four plex 2.9%, like 30 days ago and sold me a duplex 2.5%, like 45 days ago. Wow. So I, it doesn't matter if it's single family, multifamily, small multifamily RV parks. We've just bought a $5 million RV park in Montana. Are you interested in coming on the digital social hour podcast as a guest? We'll click the application link below in the description of this video. We are always looking for cool stories,

cool entrepreneurs to talk to you about business and life. Click the application link below. And here's the episode guys. Um, same thing, $5 million purchase price, $150,000 down payment, which is like 2% down. You can't go to a bank and get 2% down. Seller gave me 4% interest and 30-year terms. 4% is amazing these days. Yeah, they're really, really good. Yeah. Really good. They're like 8% through the bank right now. Yeah. So expired listings is number one. Another really great way to get them is from other people that are finding them. I have a free Facebook group that a lot of people just post their deals in there. It's called Creative Finance with Pace Morby. And that Facebook group has tons of people just throwing

deals in there and going, Hey, I've got a deal in Vegas. I've got a deal in here. Pay me 10 grand and you can have this deal. Wow. Yeah, it's great. So, um, that's an, that's another great way to do it. A wonderful way to do it is call agents that are having a hard time selling their houses. So go on Zillow filter by houses that have been on the market for over 100 days and call the agent and say, hey, agent, would your seller be willing to let me make payments to them? And they become the bank.

It's called creative finance or seller finance. Yeah. And the challenge with that is now you have to learn how to negotiate and you have to acquire that skill. But isn't that what we're here for is to acquire skills? Yeah. What are some good tips on the negotiating side? Become friends with people.

Every time I get on a phone call with an agent, I'm not trying to get a deal. I'm trying to acquire a relationship. Because if all I do is I look at this house that they have on the market, they can't sell. And I go, OK, I'm going to try and close this agent on this house. What I'm forgetting is that agent and that house might not be a good fit for me right now. The seller might not want to let me take over payments. The seller might not want to let me take over payments. The seller might not want to give me seller finance, but the agent's going to go get another deal two months later, two weeks later, and two years later. I want to build a relationship with that agent.

And people ask, well, how do you build a relationship with an agent? I don't know. How the hell do you build a relationship with anybody? Can't you have a conversation? Read the book, win friends and influence people. A lot of people say, well, what's the script, Sean? I don't know. Did you go on a date with your girlfriend, your spouse, your wife, whoever it is? And when you went on the date, did you have a script in order to have a date with somebody? No, you know how to have a conversation with somebody. You know how to communicate with people. So build a relationship with an agent and just let them know what your business model is. So when I talk to agents, I say, hey, I buy properties that other people won't purchase

because the price is too high as long as your seller is willing to let me take over payments. Agents are like, okay, I'll let you know when I run into that. And we, again, this year we bought a thousand doors and a hundred million dollars in real estate from that exact method. Wow. So you did nine figures in one year. Nine figures in one year. Yeah. That is incredible. It's crazy. What's crazy about it is that like, you don't need a thousand doors, right? You don't need to be Grant Cardone. I'm sitting, I was voice memoing him just a little bit ago. You don't need to be

Grant Cardone with 12,000 doors. That's bonkers, right? That's like, what does he have? $5 billion in assets or Brandon Turner, another good buddy of mine. I think he has like $3 or $4 billion in assets. You don't need to be that person. What you need in life to never worry about money ever again is like 10 rentals. If you get to 10 rentals, those 10 rentals are going to average $400 to $500 a month in cash flow on each one.

That's $5,000 a month. In three years, you'll raise the rent. Now it goes from $5,000 to $8,000. In three years, you're going to raise the rent again. In three years, you're going to raise the rent again. In three years, you're going to raise the rent. Meanwhile, your tenant is paying off all these houses. So you're building all this equity and you're building this wealth. So think about what happened during and all these houses that I own went up in value. I think during the year 2020, I made like $15 million in equity growth on just

sitting on houses. You don't need to have thousands of houses to have that happen. It's magnificent what real estate does. Yeah. And are you taking loans against your balances? Every like four to five years, we'll pick a bunch of houses that are maybe not the best performers or they don't have the best interest rates. Maybe I've got a seller finance deal at 5%. And I'll say like in 2019, we did this. 2019, we did a big refinance. I pulled $7 million out. I have not done a big refinance since then. The next one will be huge. Next one will be massive.

So I think if rates go down this year, the market's going to go bonkers. And I will probably do a refinance, a significant refinance in 2025 that will probably be like a $50 million refinance. All tax-free. Incredible. Which sounds stupid. Like when people are listening to this, like $50 million, oh my gosh, this is going over

my head. I don't have this opportunity. Guys, I started as a contractor not knowing how to comp a house, how to fill out a contract. I started not knowing any of this crap. You don't need 100 properties. You need 10. And the cool thing is you can find other people that know how to find them and just go, Hey, bring that deal to

me and I'll just buy it. Then that way you don't have to find them. You don't have to negotiate. You don't have to learn sales skills. You don't have to learn any of that kind of crap. Okay. Most people are learning the BRRRR strategy. Like if you go to biggerpockets.com, a company that's like the Goliath in our industry. And I publish a book with them and I love them. So this is not a criticism, but the majority of people that are on that forum are learning how to do the BRRRR strategy. And the BRRRR strategy requires credit, 30% down payments. And right now you'd be getting a 7% rate. That's not a strategy anybody wants to use. I use most of the time, like before we started, I told you, I just bought a ranch in Whitefish, Montana.

Yeah. 20 acres, 8,000 square foot house, 3,500 square foot barn, brand new home. I bought it with 4% interest, $1 down. Gave the seller $1 down on a $3.7 million purchase. Why? Well, because I understand taxes and so does the seller. If the seller sold their $3.7 million house to me that they built and they're all in for $2 million, how much of a gain do they have?

$1.7 million, right? So it took them a year and a half to build the house, $2 million. They move into it and they realize, we don't want to live here anymore. We want to live 20 miles that way. And he goes, I don't know what to do with this house now. Well, I guess I'll throw it on the market. Throws it on the market, finds out if he sells it for 3.7 million, he pays agents, right? Two agents, because he's the seller. Then what he does on top of it is he has a $1.7 million gain that's taxed at 40%. Jeez.

Yeah. Capital gains. It's a... So what I do is I go, I will buy your property at 3.7, $1 down. Why? Because the larger, people only get taxed on money they receive. So if he sold the property on the market for cash, $3.7 million, he would have actually received the 3.7 million and received the gain, and he would have had to pay the 40% to the tax man. If you stretch out the payments over a 10-year period, you can get rid of the capital gains. So that $1.7 million

gain that he has, he goes, well, you got to give me a down payment. I go, the bigger the down payment I give you, the more taxes you're going to pay on that down payment. So let's do a small down payment, $1, And then I'll start making payments to you. And he goes, there's no way that that's true. And I go, call your CPA, have them read this in the IRS code, have them do this, talk to this seller. I've done this a thousand times. CPA comes back and goes, yeah, actually, this is the best way for you to sell your house and get all your money. And think about it. Now that seller, I took over a $2 million loan. Okay. So he has, he had a $2 million loan. I just took it over. No credit check. Just bought it subject to,

which is my main thing I teach. And then he has $1.7 million in equity. I give him $1 down payment towards him and I pay him monthly payment with 4% interest. So now he's making 4% interest on his $1.7 million. Wow. So instead of him paying a big capital gains tax of 40% on the 1.7, he actually gets to get all his 1.7 with interest on top of it. It's like a win-win basically. It's a win-win. It's the only real estate strategy, mark my words, anybody that's a real estate person that disagrees with me, it's the only real estate strategy where the seller gets what they want and the buyer gets what they want. It's the only strategy. Yeah, because you're both saving on taxes. both saving on taxes.

Both saving on taxes. I'm getting into a deal with as little money as possible. I'm not having to go through banks. By the way, when I strike a deal with somebody in a traditional real estate market, it's going to take 60 days to 120 days for that piece of real estate to close. Wow. In creative finance, I just go to the seller. We work out an agreement. Three days later, I own the house. Damn. It's that fast. I don't need, there's no banks. There's no appraisers. There's no, there's none of that crap. Oh, so you don't get them appraised. I can, but what do I, I'm not buying properties based on an appraisal. I buy properties based on their ability to cashflow. Got it. So think about this. I'll get, I'll give you a really good example.

I bought a 43 unit in San Angelo, Texas. The seller, Mario, was trying to sell it on the market for $3 million. So he hires a commercial agent. They put it on the market for $3 million. It was only worth 2.8. Why does a seller try and get more money than what the market says it's worth? Why would they do that? Well, you got to understand the seller. The seller is retiring.

So he's trying to be super gung-ho and try and sell his house for $3 million, hoping he can find a sucker on the seller. The seller is retiring. So he's trying to be super gung-ho and try and sell his house for $3 million, hoping he can find a sucker on the market because he's like, if I'm going to retire and I'm going to have all these taxes I have to pay out of the sale of this property, and I'm only going to have what's left over for my retirement, I'm going to push the sales price as high as I possibly can. This is why sellers are crazy because they're trying to retire. So I look at them and I go, okay, well, Mario, you're on the market for five months. The property is obviously not worth 3 million. So all the traditional knuckleheads that use banks to go get deals done, they're looking at it and

go, I can't pay 3 million. I'll pay you 2.6. He goes, I can't do 2.6 because I'm going to retire. And after I get my 2.6, I'll pay taxes. And basically I'm going to walk away with 2.1. That's half a million dollars. It's going to take out of my retirement. So I go to, he fires in his agent after six months, and then he calls me up and he goes, what was your offer again? I go, my offer is I'll pay you $3 million, but I want to do $0 down. And I talked to him about the taxes. The less money you take down, the less money you're going to pay in taxes. He goes, okay, well, what about my pay? Like, when do I get my 3 million? I go, Mario, what are you trying to do? He goes, I'm trying to retire. I go, well, how much do you need to retire? He goes, I need like 10,000 bucks a month to retire. I go, perfect.

I'll pay you $11,000 a month every single month until you die. And then when you die, I'll pay your kids $10,000 a month until the whole entire loans paid off. And he goes, yeah. And he goes, okay. So we did a 50 year agreement. It's a 50 year agreement at 10,000 bucks. Damn. 50 years, 50 years. So people say stuff like, well, I'm going to get a 30 year mortgage. I'm like, dude, I'm out here getting 50 year mortgage. But why would I do a 50 year mortgage? Because the payment goes down, right? Because if I'm paying 3 million and I stretch those payments over a long period of time, here's what's great. Mario did $0 down, 4% interest. So he's making money on his $3 million

and his loan that he gave me is tied to a piece of real estate that he used to own. So he understands it. He knows the tenants. He knows the area. If I die and he has to take the property back over, it's an asset he already understands. The best part is he avoids the taxes, avoids the agent's fees, avoids all the timeline. Actually, Eric went with me. We flew out to San Angelo. I contracted with him on like a Thursday. We closed on Tuesday the following week. Wow. So what the other agent couldn't accomplish in six months, I accomplished in four days, gave the seller the 3 million bucks. Now the seller, I pay him $10,000 a month.

Now people go, well, you overpaid for the property. Did I? Did I overpay for the property? Because I put $0 down of my own money. I used no credit of my own. Nobody checked my credit. Nobody asked my bank balance. Nobody asked, hey, Pace,

how much money do you have in the bank? Nobody asked me that. I took over a cash flowing property. The property generates today, it's 43 units. It brings in $37,000 a month. Wow. So if I'm paying Mario 10, 11,000 bucks, and I've got insurance and taxes, property taxes, I've got management, I've got broken windows and tenant vacancies and whatever else, we net 10 grand a month. And that's from month one too. That's month one. Month one, I netted 10,000 bucks. Same thing with the RV park I just closed on.

The seller, his name's Eric. Eric is like, I don't want to be in the RV park business. I live in Bozeman. My property's in Kalispell. It's a five-hour drive. I don't want to deal with it anymore. I don't want to manage it. I go, I have a house in Kalispell.

I want that RV park. So we buy it. And similar situation. We buy the deal with almost no money down and month one for this payment, we're paying to Eric for being the bank minus all my expenses. We're netting like 7,000 bucks a month. So when somebody says you overpaid for the property, I'm like, I don't, I disagree. I'm making $10,000 a month with no money out of my pocket. Who overpaid for what? You know what I'm saying? So when I was a contractor and I

thought about the traditional world, I was like, I have to save up money. I have to get my credit right. I have to get these banks and build these relationships with banks. I don't know a single bank person. I don't have a banker. I don't go into banks to get loans. I don't, nothing. My $3 million house I live in, my ranch, $3.7 million. My businesses, all same thing. My, my industrial built, my commercial building that we office out of every single thing I acquire is with creative finance escalate. We bought a 2022 escalate. How much did we put down on that escalate? Do you remember? $0 down. I just bought a car two days ago. How much did you put down? You don't want to know. Oh yeah. So 2022 Escalade decked out $150,000 Escalade. A guy goes, my wife doesn't want it. She wants the Denali. I go,

how much are your payments? He goes, oh, it's they're 1500 bucks. I've got a 2% rate on it. I go, I'll take over the payments. He goes, wow. You'll take over the payments. I go, yeah, we had to, we had to have somebody drive it from North Carolina, but that was my only expenses driving it across the country. For nothing down for that car. That's amazing. Yeah, it's amazing. We put it into my son's Turo fleet. So that $1,500 payment, he's bringing in 4,500 bucks a month off that Escalade, just sitting in a parking lot and people renting it out. So did we overpay for the Escalade? No, I put $0 down. It's making $3,000 gross every single month. Nobody checked my credit. Nobody checked my bank records. Nobody asked for my tax returns. None of that crap that I thought I needed to buy business, buy real estate, buy cars is ever needed ever again.

Insane. You're able to get cash flowing assets with no money down. No money down. It's the best strategy ever. When I first heard about this stuff, I was like, it's such, there's no possible way that's not a scam. No possible way. So what I did is about three years ago, I had so many people were like, that's, in fact, I like, we made a post about the Montana ranch. I just closed 210 Kaufman lane, uh, Calispell, Montana. Go look that up. It is real. Go look it up. It's public record. When I give you an address, it's public record. So I, three years ago, I had so many people like,

there's no way you're doing this. So I built a YouTube channel and I said, let me, every time we buy a piece of real estate, let's go visit the piece of real estate and let's give the settlement statement, like the proof of documents that get recorded on public record. Let's give it in the show notes on the YouTube channel and let's call the channel the real deal. And we've done that for three years. Now we have 2,400 videos and we record all these big assets that we buy and we go, here's the proof. Here's the paperwork. Here's the thing. Here's the da, da, da. And more importantly, I think you've communicated with some of my students like Carolyn and Myron. Yep. They, when they met me 24 months ago, they had zero properties. They'd never done a deal. A year and a half later, they have 110 properties. Damn. A year

and a half later, 110 properties. How many of those doors did they use credit credentials or their own cash? Zero. Zero. That is insane. It's insane. Just a year too. That's 50K a month. No, it's 24 months. Oh, two years. Still, that's 50K profit a month.

Most people will go their whole life going, how do I get five rentals to supplement my income? These two were like, we were reading books. We were going to seminars. We're doing all this stuff. It wasn't until they learned creative finance. Like, wait, hold on. We have no limitation on how many we can buy and when we can buy and what we can buy. We have no limitation. The limitation is the ability for you to go out and find the deal. Right. Right. And it's just like anything else. Like you want to go meet, like Sean, you've got a kick podcast. You want to go get the, the guest you want. Guess what? You're gonna have to make a phone call, a text message. You're going to follow up. You're going to have to schedule. You're going to do all that stuff. How is that

any different than going out and finding a piece of real estate? It's not. It's not. So people, me being one of them, I romanticized this real estate world as if it was this mystical land that I'll never be able to play in. And then once somebody else, I had a lady, this was the lady that changed my life. I had a lady named Eileen Brown that had been in the business for 51 years. And she's the one that was like, why are you a contractor? Why are you doing this? Why are you doing that?

I don't know. And she whiteboarded what creative finance was for me. And I was like, wait, you're telling me that this is not the, all those radio ads I heard for these like seminar things. She goes, no, I'm telling you, I'm the one that does all the paperwork for these transactions for 51 years.

I own, I'm the owner of the title company. I'm telling you, these are legit. Here's an attorney. Here's a person. Go ask these people. Go talk to the person that wrote the Dodd-Frank Act. Go ask. I did my research and 30 days later,

I'm like, what the freak? How does not everybody on the planet know how to do this? Wow, so this has been around. It's been around for a long time, yeah. I didn't know that. I thought it was a newer thing. No, I mean, you know, the company DuPont, like big, massive company, billion, billion, billion dollar company. They invented nylons. They owned half of GM for a long time until a month, like the anti-trust

act came along and like broke them up. DuPont is like top five wealthiest families in the world. They use creative finance, the entire duration of the 300 year history of their business. Wow. I have a deed. This is one of the coolest things one of my students gave me. I have a deed. A deed is like the receipt of real estate. So like if I wanted to take, if I wanted to give you a piece of my real estate, it's a one page document called a deed. I sign off on it. I hand it to you. You now own it. It's kind of the same thing with a car title, right? You sign off on it. You hand me the title. I own the car now. It's that simple. Like transferring real estate is truly that easy. Just one page document. I have a deed.

It's the original deed. You know, Sam Adams, one of the founders of our freaking country, right? Sam Adams' wife, after Sam Adams died, she sold 162 acres on seller finance to somebody in the army that worked underneath General Washington, I have the original parchment. It's 300 years old. It's insanity. So when people are like, oh, this has been around a long time, I'm like, our founding fathers have been using this. That's so cool.

But you get to a point where you meet richer people, more wealthy people. They move differently. They talk differently. They talk differently. They do things differently. Every single piece of multifamily real estate that you walk around, you see these big multifamily things, people are doing seller finance on the land. People are doing seller finance on the lumber.

They're getting terms on the lumber. Like, give me the lumber today. I'll pay you in a year. That's seller finance. I'll pay you. So like one of the biggest developments I ever did, I had a 50 house development in Arizona and the seller gave me the land, 50 acres. He gave me every acre he wanted to sell for 15,000 bucks cash. He's like, I want cash. I go, I'll give you

16,000, but I'll pay you the 16,000 after I build the house and I find my buyer and my buyer comes to the table and pays the house and all this stuff. I'll pay you 16 grand. Then he's like, oh, so I'll make an extra 50 grand if I just wait like eight months. I go, yeah. So he seller financed the land. I didn't put any money down.

I didn't have any payments. And I paid him all of his 16,000 times 50 when we sold all the lots. Wow. You can do it with land. You can do it with multifamily. You can do it with business. Bro, I look at everybody that's running around doing traditional things with cash.

And I'm like, how are you guys acquiring anything? Yeah. It takes so much money, so much effort, credit, all this stuff. Bank telling you you can and cannot do something. Oh, well, you have a blemish on your credit from six years ago. Sorry, we got to have a letter understanding why you did that. bro. I haven't had to deal with that ever. And that's amazing. And this is what they teach everyone too. So people will get upset when they don't qualify, but they can just use other methods like this. Yeah. They use other methods. You can go to like, I'll tell you how easy this is.

Go to landwatch.com. I don't own the website, but landwatch.com is a really good indicator of how easy this is. Go to landwatch.com, go down to the category, type on, click on owner financing, and you'll see there's 13,000 active listings right now just on land, acreage, RV parks, mobile home parks, lodges, all sorts of on landwatch.com. You go to Crexi, C-R-E-X-I, crexi.com.

You click on owner finance. You want a car wash? You want a laundromat? You want a post office box? What do you want? You'll find it on Crexi on seller finance. It's there right now. This is being done. It's just that people aren't freaking talking about it. It's like the 1% wealthy people know this little trick. Yeah, because you can accumulate wealth way faster than this. Too fast. Last year, it was too fast for me. I bought too much real estate.

I have to slow down. Now, if Uncle G, Grant Cardone was in here, he's like, oh, 10x it, 10x it. I'm like, bro, here's what I'm going to 10x this year. I'm going to 10x my team and 10x my skills and 10x my management style because we have too many properties right now that I'm like, we're going through and onboarding and getting them into the portfolio because you don't manage magically buy the property and then it's in your portfolio and you got a tenant there. It takes a couple of months. And so when you have a hundred of them sitting there and you have payments on a hundred properties, you bought them too fast. So that was a problem I had this year. Yeah. Speaking of grant,

you taught this method to him. It was really fun watching that video. Has he done any of this yet? They have reached out to me. I locked up a couple of contracts and I sent it over to Ryan Secko on their team. And they're like, ah, you know, we're going to keep focusing on what we're focusing on, which I respect, right? It's like telling Dairy Queen, hey, Dairy Queen, you guys should be adding a different ice cream flavor because Baskin Robbins crushes it on this flavor. They're like, dude, we're not going to emulate them. We're going to have our own niche. But that was a fun episode. That was, man. You blew his mind. I did, yeah. I saw his eyes. They were excited, man. What that also highlights to me is that there's so many different ways to succeed in real estate, that somebody who's a billionaire, Grant has way more money than me. He's 25 years older than me.

I told this to Eric today on the flight here. I said, I will surpass Grant before he, I will beat Grant's wealth before Grant's age. I'm at 40, he's 65. I got plenty of time. If I just sit on the real estate I own right now for 15 years, I'll surpass Grant by the time I'm 55. I'll become a billionaire just by sitting on the real estate. And it'll double, all my real estate will double in the next 15 years.

So all I have to do is sit on it. But I love Grant and I love what he does. I love his marketing. I love how smart he is and all that kind of stuff. A lot of people criticize him, but why do people criticize Grant? Jealousy. Jealousy.

Anytime somebody's going to criticize me, they'll say, I get people that say, oh, this guy's, what do they say? What do the young kids say? They say, this is straight capping. What do they say? I don't get it. But this guy's like, oh, this guy's hard capping he's such a liar i'm like go to my youtube channel look at the address i pull it up on public record go to the county

recorder's office walk down there ask them does this guy actually own this property they go yeah it's on the freaking website you knucklehead shows it right here i'll give you i can give you hundreds of address you can go pull them up and you can see no down payment. A lot of my sellers will give me 0% seller finance. Wow. Like 1906 South 78th Place in Mesa, Arizona. I did a zero down deal. Seller paid the closing costs and they gave us 0% interest.

Damn. Yeah. That is awesome. And I took over tenants. So tenants were already in the property. 1906 South 78th Place in Mesa, Arizona. Go look it up. I bought it for 100 grand. It's now worth $270,000, but the best part about the deal is 0% interest.

Go look it up on public record. You can see the agreement and the interest rate is 0% seller finance. Yeah. I think no matter what you show, they're still going to hate. They're going to hate. It's just part of the game. It's part of the game. And I, you know, I had my, my team a couple of months ago had this guy criticizing me online. And they're like, oh, you need to reply to this guy. I'm like, no. If somebody's hating on us, that means we're doing a good job. We're getting attention. That guy is just, that's a positive energy right now in my mind.

And they go, no, we need to reply. So I replied to him. And I was like, dude, I immediately regret replying to these people. They're just hateful because they're stuck in life. They're in this, they're, they, they haven't figured out what their next step is. Right. And I look at people trying to get into real estate and I go, guys, it's not that hard. It really isn't that hard. It's all as much as I hate to say, it's all between your ears. It's what you don't know. And I will tell you, just go like, if you go to my free Facebook group and you go in there, you scroll five, six scrolls, you'll see properties that people are like, hey,

here's a 0% seller finance deal. You can buy it from me for 5,000 bucks or 10,000 bucks. You can go get a 0% seller finance deal today. No credit check. Take over somebody's payments or just get a seller finance deal. 0%, 3%, 4% today without you having to find the deal, call the somebody's payments, or just get a seller finance deal. 0%, 3%, 4% today without you having to find the deal, call the seller, negotiate, deal with paperwork, and just buy the deal from somebody else. Yeah. We're going to do it for me. We'll have to make

a follow-up video. We will do it for you. Let's do it, man. Pace, it's been a blast. Where can people find you? YouTube channel, man. Check out the YouTube channel, youtube.com forward slash Pace Morby. And one day I hope to have a studio as nice as yours. You're building one right now, aren't you? I don't think I'll ever get this dope. This is too dope. I feel that, man. Well, thanks so much for coming on.

Thank you, brother. Thanks for watching, guys. See you tomorrow.