The Science of Flipping - $65 Million in Rentals and Not One Mortgage | Pat Grace

Episode Date: October 13, 2026

Most real estate investors are building a portfolio the same way buy, rehab, refinance, and watch their equity get trapped behind the walls of a mortgage while they pay heavy front-loaded interest for years. Pat Grace built $65 million in rental properties across 200 single family assets doing it completely differently and he does not have a single traditional mortgage. In this episode of The M.O.R.E. Show, Justin Colby sits down with Pat Grace, who discovered a banking strategy used widely in Australia that is almost completely unknown in the United States, and used it to build one of the most liquid and flexible real estate portfolios you will find anywhere. Pat breaks down his BERLOCQ method a line of credit-based approach to real estate financing using simple interest instead of compounding amortized debt and why once you see it, you cannot unsee it. KEY TOPICS COVERED Why traditional mortgages trap your equity and cost you far more than most investors realize The BERLOCQ method explained using lines of credit instead of mortgages to build a rental portfolio How Pat built $65 million in real estate with $35 million in available line of credit and zero traditional debt Why simple interest lines of credit beat compounding amortized mortgages every single time How one investor saved over $1 million in interest just by switching to this strategy How to get started with lines of credit from your first $750K line to scaling across all 50 states ️ TIMESTAMPS 00:00 — $65 million in rentals with zero mortgages the cold open 00:30 — Introducing Pat Grace 00:52 — What M.O.R.E. stands for and why this episode matters 01:43 — How Pat learned this strategy in Australia 02:07 — Why he left traditional mortgages behind 03:10 — How he started just like everyone else 04:30 — The problem with the BRRRR method most people miss 06:00 — Explained lines of credit vs amortized mortgage debt 12:00 — $35 million in available line of credit how Pat structures it 18:00 — How to approach a bank and what to ask for 25:00 — Unlocking trapped equity without a traditional refinance 32:00 — Using lines of credit for new construction and beach houses 38:00 — Protecting assets trusts, entities, and structure 43:00 — Pat's calculator save over $1 million in interest 44:00 — How to get started in all 50 states 46:00 — How to reach Pat Grace and get his free calculator Connect with Pat Grace Facebook: Pat Grace (search and friend request mention Justin Colby or The M.O.R.E. Show) Free calculator, workbooks, and resources available DM Pat on Facebook to access About The M.O.R.E. Show The M.O.R.E. Show is hosted by Justin Colby and is dedicated to helping real estate professionals, investors, and entrepreneurs maximize opportunity in any market. New episodes every week. Learn more: www.timeformore.com Invest with Elevest Capital: www.elevestcapital.com Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

I've got access to 35 in available credit, and I probably got 20 out. So right now, I'm sitting on access to capital, untrapped equity. In my portfolio, which is key. A lot of people have a ton of property, but all their equity is stuck. It's all trapped behind the walls of a mortgage. What is up? What is up the Moore Show family? As always, I bring you incredible guests who can help you and me maximize opportunities in real estate.

that is what more stand for, maximizing opportunities in real estate. And our guest today has 65 million in rental properties, 200 single family assets. And by the way, he doesn't have a single mortgage. So my question to our guest right now, Mr. Pat Grace is how have you done it with no mortgages? Awesome. Thanks, Justin. We've done a something that was I learned in Australia 15 years ago. and I came back and implemented, but all my debt is through line of credit.

And so I have no compound amortized mortgage type debt. I got away from that 15 years ago, and I started off with one line of credit on one commercial building and just kept duplicating and duplicating. And the other day we was talking just like Burr, but it's Burlock. And you should really go trade that. You should trademark that when we're, that's a really actually good idea. But the same thing, same concept, except when I refinance,

I ask the banks for line of credit. I do everything, simple interests, line of credit. And I'll walk through this for all you listening. We're going to walk through this. He has a bunch. He called me earlier this morning. He said, I got a bunch of giveaways. I want to make sure people can understand what I do.

Because it isn't rocket science. It's just using a different type of leverage. And so we're going to walk through this. So be patient, work with us. Probably take out some notes, by the way. And Pat himself has said he's willing to give you guys all the goods and all that stuff. So we'll get there. Before we dive in, I want to talk to you about L of S Capital.

If you're looking to build passive income through multifamily real estate, L of S gives you access to exclusive apartment investments that aren't available to the public. If you want to diversify beyond stocks and create real cash flow, visit L ofScapital.com. to learn more and to get on the investor list. I personally invest with L of S capital, and they have been incredible to work with. Their team is top-notch. I get passive cash flow distributions to my bank account every month,

and I'm always in the loop with what's happening with the apartments I'm invested in. The best thing is I don't have to worry about managing tenants or dealing with repairs. The team at L of S handles absolutely everything, and my income is 100% passive. And that's just the way I like it. So if you want to build wealth and passive income without all the work and additional risk, Visit l-of-s.com. Now, let's get to the show.

You didn't start out doing this, right? This wasn't your main way of acquiring rentals. No, no. So just like everyone else, you know, I too was taking mortgages and doing rehab loans, buying and rehabbing properties. And then I was refinancing, Freddie, Fannie, you know, type loan products, just doing regular mortgages. like everyone else.

And like everyone else out there, you know, I was pissed off because all my equity was trapped and I was paying heavy upfront interests and I felt like I was never paying anything down. And I, you know, so when I went to Australia, I just learned a different way

and how they bank out there. And I was like, holy crap, we have this exact same thing in the States, except nobody uses it and nobody really sells it. And so it's so simple and super easy. It's just like a little shift and a mindset shift that, you know, you might have to change some banking habits and change the way you think about things. But once you see it, you can't unsee it. Like, once you know. Yeah. So you have 65 million in valuation in your 200 rentals or so thereabouts, right? Yeah, yeah. And in how much do you have against

So how much debt do you have against that $65 million? So right now I've got $35 million in line of credit access. You know, so I've got access to $35 mil. I'm sitting on, I'm about to close another $5 million on a beach house that I just bought and got new construction on the ocean. And I use lines of credit for that as well. So really my title is pretty. Then you fund the $5 million.

You're down to $30 million access of line of credit. Right. Yeah, and so I've got access to 35 in available credit, and I've probably got 20 out. So right now I'm sitting on access to capital, untrapped equity in my portfolio, which is key. You know, like a lot of people have a ton of property, but all their equity is stuck. It's all trapped behind the walls of a mortgage. Even the problem in the basic principle, right, because you started doing the Burr method, the traditional buyer remodel refinance.

Even if your market appreciates, which we all hope we're in markets that appreciate, even if you're buying down the principle, you bought the home, you refinanced, you already got the highest loan. You know, even if you wanted to go refi cash out again, you're still waiting three or four years in the traditional burr model best case scenario. That means you're hyper paying down the principle and we all know the first seven years is basically interest anyways. you're overpaying, you're banking on your specific market appreciating greatly to get any level

of valuation to be able to refinance again in four or five years. And in that four or five years, in the model you're talking about, Pat, like how much can, and I don't know if you're going to have a direct percentage answer, but in that five years of paying that note on a heat lock, how much equity are you already building? Yeah. So what's unique about this program, and this is where that calculator that I'm going to give away for free at the end, this is where that comes in. And so what's awesome about this is it's hard to say in a podcast or on a video, everything's unique to you, right?

So it depends on your debt. It depends on your income. It depends on your cash flow. Cash flow is key here. Like if you don't have extra money every month and you don't have equity, this strategy is going to be hard for you. Okay, so this strategy is for people who have tons of equity and who have cash flow every single month.

They're just not having their cash flow work for them right now. And I'll explain all that as we get through this podcast. But the coordination of accounts is very important. Where you park your cash flow is of the utmost importance. And this isn't about rate. You know, this is about structure. So it's about taking a different debt structure than an amortized mortgage. So, and what you was saying earlier is completely true when it comes down to like,

if you're buying a house, you're getting a 75% rehab loan. And you've got, you know, most times when I was buying the homes, I was like under 75%. And you've got all and you refinance and you've got this equity just kind of sitting there. and you're in a mortgage. Here's the flaws with a mortgage. I'm going to dive in and jump into this. Yeah, go. So here's the two design flaws that a mortgage has.

The first design flaw is it's a one-way street. You only can put money in, right? You can't take money back out. So it would behoove you to pay extra to a lot, you know, a lot of your mortgage because the money's stuck. You can't get it back out. And so that's a big design flaw. all your extra principal that you pay is trapped.

All the value that the properties go up. I know like in Kansas City, the properties are going up 10% a year. All that money is trapped. You don't have access to it. So in four years, your property goes up, say, 30, 40%. You can't touch that money until you refinance or sell. And rents are going up three to five percent a year in Kansas City.

And so all that cash flow is just sitting in some checking account. getting wasted by inflation and there's another way. You know what I mean? And so I'll show you the second design flaw in the mortgage is the heavy upfront interest, right? So front loaded, you know, with interest on. And as soon as you close the mortgage, what do you get an amortization schedule, right? And all the interest is all baked in already.

They're telling you up front. Here's what you're going to pay month one. here's what you're going to pay month 15 and it's the exact same payment no matter what and all the interest is on the front of that loan and so that's the hard part and why you got to switch um you know to a to a line of credit uh type strategy all your early payments feed the bank and um that that's an issue you know and in all your early payments and it's literally your first five to seven years is so heavily swayed to the interest and not the principal. One of the things that, you know, Pat and I are at a high-level masterminds called the boardroom. I've had several guests on here. And so we're

just talking about this last week. And your equity, let's just say, Pat, in the traditional Burr model, you end up after you refy, after, you know, you remodel the home, you refy, and you end up with a 75% loan. Maybe, maybe you get 80% of value, okay? Maybe. But most likely, 75%. Now, if you bought the home right, sure, you can say you cashed out. Maybe you pull back 10 grand, 20 grand, depending upon your market. Okay, cool. You put 20 grand in your pocket. But for the remaining five to seven years, to your point, that 25 percent, 20 or 25 percent of equity is stuck. Now, again, you know, whether it's Kansas City or Miami or name the market, we hope it's appreciating. You hope you made the smart buy. Right. All of that appreciation is stuck. Stop. It's just stuck.

It's all stuck. And you're sitting here in a mortgage trap that people don't talk about. So let's talk about this trap. So on a $500,000 house, you pay over $522 grand in interest over 30 years. And that's at a 5.5% rate. So you're paying basically a million dollars on a $500,000 loan over 30 years. But nobody keeps the loan for 30 years, right? almost all Americans are going to refinance within five years.

And they're going to, and here's, I'm going to call it dumb money. Because once you refinance, you reset the 30 year and the heavy interest up front. And that's the hamster, that's the hamster wheel that you need to get off of. You cannot pay shit off doing it like that. Like it just doesn't work. And so on that $500,000 at 5.5% interest, in the first, five years, you're paying $132,000 toward interest. Only $37,000 actually hits principal. So that's almost 78% of every dollar you pay is going to interest in the first five years. That's a strategy I do not

want to be a part of, you know? Yeah, I agree. And if you ask my accountant, my account might say, yeah, well, that's a tax write off. Yeah. Listen, I would rather just keep more money than having to go pay into a tax right off, right? Yeah, let me, let me screw you over and then let you write it off on your taxes. That's what the government is basically saying. And so I'm not, that is not how I bank. And that's not, you know, what I'm doing. And so, and then most Americans will sit here and refy within five years and there's just,

and start the clock all over again. Now they're sitting here with the heavy front loaded intro. they might have dropped their payment by a hundred bucks, 150 bucks, whatever on the refinance, but now they're sitting here paying all this interest over again. And so this calculator I'm going to give to you at the end, you can put in your numbers that are customized to you,

what your mortgage is, what your rate is, you know, what you bring in every month, and what you pay out every month, and it'll take the excess cash flow and apply it. and I even have a button in there that has like what you have in your checking account and your savings account and you hit enter and it'll show you what you pay on a 30 year mortgage, what you're paying now,

and then it'll show you the interest you save and how many years you save. And I'm not talking 10 grand, 20 grand. I'm talking 300,000. These are hundreds of thousands of dollars of interest. This isn't small money and this is money that everybody's paying to the bank when you could be bringing that home to your family, bringing it home to your portfolio, bringing it back to you, keeping it with yourself instead of paying out, you know, to the banks. And really, here's a crazy stat.

On that $500,000 loan at five and a half percent, not until year, 17, 17 years before you actually pay more to principal than to interest. On a 30-year-old. Yeah. So this is the type of stuff. we need to educate the people on. And once you see it, you can't unsee it. Once you hear it, you can't unhear it.

And now that you know about this, and at the end of this podcast, you're going to know a different way. And this is going to be easy. It's going to be actionable. This is something that you could implement in the next 30 days, 30 to 60 days. Some people listening will pay their mortgages off in 30 days. And they got checking accounts sitting there. with tons of money in it. They've got tons of cash flow coming in.

For those people, those are the people we're going to help and solve a lot of issues, you know, for today. Now, let's talk about who this will work for and then who it won't work for. I think I want to make sure it's very clear. It might be someone listening here and has one single family home and they're all excited about this because every point you're making is the best points, it's the right points. Are they the right? fit what what needs to be happening who needs to be what qualifications should you be having should

you be looking at to see if this is going to be the right type of model for you at the time yeah okay so who wins in this and and who who's going to have a challenge with this okay so if you spend what you make you're going to have an issue with this strategy if your expenses are more than your income you're going to struggle with this strategy if you don't have equity You know, if your house is worth 250 and your mortgage is 250, you're not going to be able to get a line. Okay. And so you got to have equity. If you panic when rates move, you might struggle.

You know, that's the little shift that, you know, and you got to think a little bit different and coordinate your accounts. The people who this will work for, if you have equity in your home, your primary, your rentals, your commercial. buildings, your life insurance, your stock, you're non-qualified. You can't do 401k's in retirement, but, you know, your life insurance, non-qualified stock accounts, I got lines against everything. And so I have steady income coming in, a lot of cash flow, way more money coming in than what I'm paying out. And I want that money sitting against my balance on my line of credit, not sitting in some checking account making me nothing, you know, just getting killed by inflation. And so, you know, you got to have some discipline.

You got to be open to maybe something new, some new banking habits. And, you know, if you want access to your capital, this is what, you know, you need to do. And so it's really a two-step framework, real simple, real easy. this isn't hard, this isn't rocket science. So I'm going to jump in and give them the framework real quick. Yeah. Okay. So step one, you're going to replace your mortgage with a line of credit.

Okay? That's literally step one. So you're going to go into the bank and you're going to ask the banker that, hey, I just want a line of credit. I don't want, and most times I'm looking for a first lien line of credit. Okay, so remember, this isn't about rate. This is about structure. Okay, so I'll pay off a 7, 8% line of credit faster than you'll pay off a 3% mortgage simply because of the structure and the amount of cash flow that I can deposit into my line.

Right now, a lot of people listening and me included back in the day, I had no coordination. I had three accounts and nothing coordinated and nothing worked together. I had a checking account that I was depositing all my W-2 income, my rental income, dividends, sales, flips. You know, you're putting all this money into a checking account and you're not making no money on that money. I had a savings account at the bank and, you know, I might have made a point or maybe a half a point on that money. You know, so if you got a hundred grand sitting in there at the end of the year, you got 500 bucks. You know what I mean? Yeah, of course.

And so, you know, and then you have a mortgage. You know, and the mortgage is charging you heavy interests up front, and it's a payment that you have to pay out, and you can't get it back, and your money stuck, and your equity is trapped. And so there's a different way. and with one solution called the line of credit, it solves all these issues. So by me just opening up a line of credit instead of a mortgage, here's what happens. For one, my debt is now in the line of credit and not in a mortgage. Number two, the line of credit also becomes my checking account and my savings account. You can put, so now I just transferred everything from a mortgage, which is a one-way street,

I only can pay in to a line of credit, which is a two-way street where I can pay in and take out. Your line of credit is now your debt vehicle. It's now you're checking in savings account. So all three accounts that were uncoordinated and not working together are now working together. And here's what's powerful. So one simple step, eliminating the mortgage and taking your debt structure in a line of credit. You've eliminated compound amortized mortgage. You've eliminated front-loaded interests. You've eliminated fixed, forced payments.

And you've eliminated a structure where money can go in but never come out. You now have a line of credit where you have simple daily interests. It pays off the mortgage at closing. There's no forced payment schedule, no amortization schedule, and you can deposit in and you can take money out. Everything becomes one account. Your checking account, your savings account, your mortgage is now, your line of credit. Okay, so just think about that in a conceptual way that you now have one big account at the bank that is now your debt and your checking account and your savings account.

And because a line of credit is a two-way street, you can take the money back out, you can deposit all your income into this line. And every time you make a deposit, your balance goes down. So the more cash flow you have, the more cash flow you deposit, and I'll start using a word called sweep. Sweep just basically means deposit. Okay, so I sweep a lot of my cash flow, which is basically I deposit a lot of my cash flow. I have no checking account, savings accounts sitting all over the place. I have lines of credit and I put all my money into the line.

So if I have a $100,000 line of credit and I sell a house and make $25 grand, I sweep all 25 grand or deposit all 25 grand into that line. Tomorrow, my interest is based off a 75 grand. Doesn't work like that with a mortgage. And so, and if I need that money, I can go get it. If I need the 25 grand, it's sitting in the line of credit. That's right. And I can pull that money back out and I can go put on a roof.

I can handle maintenance. I can pay taxes at the end of the year. I can pay my insurance for the house. I can do it. So while I'm, if I don't need the money, it's just killing average daily interest until I need the money. When I need the money at the end of the month or at the end of the year, I can pull it back out. And if I need it, you know, if you don't need it. Well, now, let me ask you in your scenario, do you pay your personal bills with that money as well?

Yeah. So I pay, I don't really have personal bills. I have credit cards that I use for everything just probably like you is all business, you know. And so, but I do have like I pay myself. I do have a checking account. Banks want you to set up when you start this off. The bank wants the relationship. They're going to open you up a checking account.

And we're going to talk about pegs and stuff like that. So I do have checking accounts to pay, you know, for like groceries. Yeah, I was going to say, groceries or gas or, you know. Even gas is a business expense for me. All my gas goes on my business side. I don't, but groceries might be one of the only things that like personally, all my travel business, every, you know, almost everything I do, my clothes, everything I do is all business and I, for sure, 100%, I pay my credit card right out of my business line of credit, you know,

right out of the lines. That's what it is. So I can deposit all my income in, you know, on January 1st, and by January 20th, I'm paying bills and I'm writing checks right out of the line of credit. But for those 20 days that the money was sitting in there, all that daily interest is gone. And if I deposit, say I deposit, you know, 50 grand a month into the account, but I only need to pay out 15 grand at the end of the month in bills. And, you know, all that money just stays in there attacking the balance. and that's how I pay all my shit off in five to seven years.

I'm not sitting here taking 30 years of pay stuff off. You know, and I have access to all this cap. All that money. Yeah, because all my lines sit at 75% of, you know, 70 to 75% of the value. And so. And this is just so people can wrap their head. So I'm asking a question where I think they would be asking. they want to go buy their wife a nice purse for five grand.

They want to go buy a Rolex watch, something that is your accountant is going to say, this is not a business expense. Do you still use an account like that? Yeah, yeah. I buy everything. Like, I just bought my wife a purse for her birthday in Dallas. And all that stuff gets paid by a line of credit.

Oh, yeah. I mean, everything I have is line of credit. and somehow, you know, I can tie to a business. And so I put money into the line and I pay money out of that line. All my lines pay pretty much all my bills. And so, you know, I have like... But this is where people need to be really good with their money. I mean, I think we need a harp on that.

Like, you cannot be an overspender. To your point, you started the episode, if you're to some extent living, check to check, right? Maybe you save $500 or $1,000 a month. This probably isn't the right fit for you yet, right? You don't have enough cash flow coming in to work the model, right? Right. Well, that's where you use that calculator. So I don't want to say that. I think it's better at the end when we give them the QR code or the website or the Facebook page that I have. they need to put their scenario in to the calculator. And even if it's $1,000 that they have a month,

if they apply that to the line of credit instead of the mortgage and they transfer their debt and they do all this, they'll pay off. They might not pay off in seven years, you know, might take them 15. But the calculator... Right. The calculator will tell them that.

You know what I mean? And so they need to just jump on that calculator and play with that with their scenario. And we can play with it with their primary. They can just put their primary house in with the equity in their primary and, you know, play with the. And then they can take one rental property. They can take a commercial building. They can take a multifamily building. They can group up five rental properties and play with that scenario.

And so the calculator is probably the most powerful tool that I use with this. because it helps me structure, you know, the packages, I guess I would say. Because at this point, now, I'm not doing one property line of credit. I'm doing, you know, I'm waiting until I get 15, 20, and I'm doing five million dollars lines. And, you know, and I might have maybe 20 homes, 25 homes in one line of credit that I can, you know, that I can draw and pay, draw and pay from. And the crazy thing is, too, imagine this.

Once you have access to your capital like that, you don't, it makes you so free. I can close deals in literally three days as long as I have clear title. I can go to Florida, buy a piece of land. I don't have to get underwritten. I don't have to get a construction loan. I don't have to get a land loan. I don't have to do any of that. I can just buy a piece of land.

I can find a builder, sign a contract, start building a house, and use my line of credit. And that's exactly what I did in Florida. You know, and I'm probably in the property for $3 million. It's worth $5 million. And I've got, I use all my lines to build this house. Now, when you use a line of credit, you've got no lien on title. So now I've got this beachfront property with $5 million worth $5 million. all I got to do is put that up for collateral now,

and I can get a 75% line on that. That's the bur lock I was telling you about. And so I just basically, same thing like a burr, but I'm just using line of credit. And so when you have a vehicle, like a line of credit, that you can deposit all your money into, and if you need it, you can take it back out, that's a powerful, that is, that is truly a powerful debt structure and where you need to,

where you need to be. That's like eliminate, you know, the mortgage. And so there's lines of credit do you have because you just talked about using your current line of credit, built, buying the land, building the property, and then going and opening up a new line of credit once you have the valuation of $5 million and then you essentially start the new line, pay back the original line, now you have a new line of credit for five million. How many do you have? I mean, is I've got, I've got five banks and I've got three, six, nine, I got nine line of credit with three banks and then one bank does my life insurance and Raymond James does my stock account. And so I have, I really have three banks in Kansas City. and with those three banks, I have three lines of credit each.

And I might have one commercial building in one line, another commercial building in one line, one multi-family property in one line, and then I'll have 30 properties in one line, another 30 properties in one line, another 30 properties in one line, another 30. So usually I package mine up in 20 to 30 homes. But when I started, I didn't start like that. That's right. This is 15 years. in the game that I'm doing this now. When I started was one commercial building. Let me let me let me get go through that scenario real quick. Yeah. Because I think when they have a visual, you know, so when I first

learned this strategy in Australia, I had a commercial building in Kansas City, uh, in the city market that was worth a million bucks. I called my wife. I told her the strategy and I said, A, I'm going to call a banker. I'm going to get this thing appraise. Appraisal came back at a million bucks. The banker gives me a line of credit for 750 grand. I had a $300,000 mortgage on that building. So at closing, the first draw from the line of credit was the $300,000 to pay off the mortgage. So my situation at that point now, before I had the line of credit, I had a building worth a million bucks, I had a $300,000 mortgage, and I had $450,000 of equity trapped. Couldn't use it.

Just screwed, right? Yeah. And that's only at 75%. On a million dollar, I had $700,000 of equity just trapped in that building. I couldn't use it. And so as soon as I did the line of credit, the first thing we did was pay off that mortgage. Now I have a $300,000 line of credit. I have 450 available line of credit to me.

So I untrapped all that equity. So I got 450 access to more capital. And I had 150 grand sitting in the checking account from cash flow coming in from that building. Just sitting in a checking account. The day I closed the line and I had the $300,000 line of credit, the first thing I did was sweep the entire $150,000. into the line of credit. So now I owe $150,000 and I have $600,000 of available credit on that building at that moment. And I don't lose the $150 grand. If I need the $150 grand, I can go get it. It's just now my money's working for me 100% of the time.

Even while I sleep, my $150,000 is not sitting in the checking account. It's sitting in the line of credit. It actually paid down the debt. And if I need the money, I can go get it. So now I owe $150,000 on that building. Yeah. I get $15,000 a month coming in a rent on that building. I paid that building off in 10 months. All 15 grand deposited straight into the line of credit. You know what I mean?

I didn't need the money on that building to live off of. So all 15 grand went straight to the line of credit. Paid the building off in 10 months. I got access to $750,000 of capital that I can go buy homes, rehab homes, all cash, you know, all cash, you know, and just buy cash, rehab cash, buy cash, rehab cash. With 750 grand, back then, 15 years ago in Kansas City, I could probably do 15 homes, all free and clear. And so, yeah, and so now I got 15 homes free and clear. I packaged those up, put it up for collateral, went to the bank, got a line of credit on those 15 homes, and I just kept duplicating that process

over and over. I still own that building today. Now that building. line of credit on meaning how do you title line of credit so if you package 15 homes together is a line of credit under Pat grace and you just have it's under my it's under my LLC so you start a new LLC for every line of credit yeah okay and so I have I have uh yeah I have yeah so everything is specific to the assets in that line of credit so you know I have coamaka one coamauga two coa maka three you know But it's just there are different lines of credit with different assets in it. But I keep it real simple. And, you know, but I keep all the accounts separate.

So Coamaka 1 has these 15 properties. And when my management company, after I pay my management fees, I pay my whatever, you know, maintenance. I pay whatever deposits straight from the management company from that folio, it goes straight into my line. It doesn't even come to me in a checking account. I don't get any money. I don't get anything. I just deposit it straight to the line. And then here's the little shift.

Most people will feel comfortable. You know, like, hey, I like logging on. I like looking at my bank, online banking, and I like seeing $250 grand in my checking account. That's fine. I like logging in to my online banking and seeing $15 million available credit. You know what I mean?

Like, to me, that's way more powerful than looking at. So people like you can look at, you know, if you've got a line or, you know, with 500 grand in it and you got two, and you got 500 grand sitting in a checking account, if you got a line of credit, you can just take the checking account 500 grand, pay off the line. Now you owe no debt and you still got access to the 500 grand. This is what I was doing in boardroom and having people just completely pay their mortgages off in 30 days, literally. Can you do this on your single family home or is this only? going to be investment properties. No, no, you can do this on your primary. Your primary. I guess whatever. I didn't mean a single thing. I meant primary. Yeah, yeah. Your primary. You know, so you, know these guys, Justin. I won't say their names, but you know who they are. And one guy sitting

there with a million dollar house and a $500,000 mortgage, and he got $500,000 sitting in the checking account. I told him, I worked with him literally in 30 days. We went home, got his house appraised for a million bucks. We got a $750,000 line of credit for him. We paid off the $500,000 mortgage. He still has access to $250,000 a capital. He's got no $500,000 mortgage anymore, but he got a $500,000 line of credit. The second step is I took the $500,000 he had sitting in the checking account, put that into the $500,000 line of credit. Now there's no more line of credit. Now he has access to $750,000. You know what I mean? And that's the scares people, right?

It's like, oh, well, like, great example. This guy had a $500,000 mortgage, but he had $500,000 that could have paid it off. Right. But if he did it in the traditional sense with the loan, he literally would not have access to any more money. Right. And your structure allows him to go pay off the line of credit. And now he has access to all the $750 for any reason that he potentially desires. And now you don't need.

You don't, right. There's no more paid it off. And now. So now I taught them to go to your online banking. Stop looking at the checking account and just look at your available credit. Yeah. You've got access now to 750 where before, if you were sleeping well at 500, you'll sleep better at 750. It's just on behavior.

Like people who need, it's a hard thing to switch someone's behavior, right? Clichet saying old dogs, new tricks. And so you have to be open to there is a better path, right? It's sort of just going to say, this doesn't work and here's what, then this won't be for you. But if you're open to understanding there's better pass and better routes, you just got to change your behavior with your money. Yeah. And little mind shifts, little different shifts. And it's the little shifts that create the biggest outcomes.

And I'm telling you this, this works. Like, I live this. This is not, this is like a lifestyle for me. It's not even a strategy. Like, honestly, for me, this is a lifestyle. Like, everything I do, I try and get into as many deals as I can where I can create as many lines as I can. And as long as I have lines and I have access to capital, I've never had to raise funds. I never have a partner.

Me and my wife are, that's it. Just me and my wife and my base. You know, that's my whole business model is so simple. I never raise capital. I never have to answer to nobody. I never have to perform for anybody. Everything is just me, my wife, and my banks and my lines. What's your just because I don't know where everyone's at.

I'm going to use my house just as an example. I have a neighbor of mine just sold for $2.2 million. It's a smaller home. Let's just use $2 million. What's the biggest line of credit that you're aware of, right? Like, is there a limit to any of this? I don't know. Good question.

Okay, so here's the thing. banks have limits. So every bank has its own rules. So you need to go find out, you know, some banks might only loan 250 grand on your primary. Some banks might go up to 500. So here's a key. That's a good question because here's something.

On my primary, I had a $3 million house and I have a $2.3 million line on my house. One line, $2.3 million bucks. it's a commercial line of credit. So sometimes you got to ask for the commercial division, even if it's your primary house. All my other lines are commercial, you know, like my multifamily buildings,

my commercial buildings, the packages of properties are all commercial. But sometimes on your primary, you know, if you've got tons of equity in your primary, you can't go into the bank and ask them for a single family residential line of credit on your primary. They might give you $250,000. Right.

If you ask, you got to ask for the right product. You got to know what you're saying. Can you help everybody with all that? What to say, right product, right bank? You have all that packaged up, right? This is part of your big giveaway. This is where now that we're closer to end this episode, I want people to understand, you want to get with Pat, right?

He has what to say. What are the right products? What are the right banks? The calculator. Let's start there. How can they go get the calculator? Where do you want them to go and or where can they ping you, find you, whether it be Facebook or whatever.

Okay, so Facebook, you just go to Pat Grace. I don't do Instagram and TikTok. So Facebook for me is where I'm at. I'm old. And so if you just go to Pat Grace on Facebook and you DM me and just put Calculator Colby or, you know, Calculator Justin Colby podcast, I'll get you the calculator.

I've also got some workbooks that I've created that have step by step about the line of credit, the documents you're going to need, the financial portfolio you're going to have to put together, your personal financial statement, it has scripts on what to say to the bank, what exactly to ask for, the prompt that I put into Claude to find the banks that are in the zip codes that I live in. You know, I have, and then what One of the workbooks is the commercial workbook is where I talk about how I package up my properties and how I structure the deals with the banks and even my commercial. So say I got 15 homes in one line of credit.

On my titles, all my titles are percentages. And so asset one might be 10% of the line. Asset two might be 8% of the line. Asset three might be 12% of the line. And so if I sell asset three, I know that all I have to do is pay 12% of the payoff. You know what I mean? And so that way, because, and here's another thing, Justin, what you, I've got homes that are worth $300,000 in Kansas City. When you pull the title, it says $5 million lien because it's in a $5 million line.

Nobody's going to sue me. Nobody's going to come after me. You know, I mean. And then so there's so many benefits. None of this stuff is on my credit. None of this stuff is on my personal credit. These are all commercial loans. None of them.

None of this stuff shows up on my personal debt. All is not even your personal home. My personal home. If you get a commercial line, they're not using your... Not even... Not your personal home in an entity? It's in a trust. It's in a trust, okay.

My personal home is in a trust. So a lot of these, you know, without spending the next two hours, we're finding every question. You, the listener, the viewer, you're going to have nuance to your scenario. I encourage you, reach out to Pat Grace on Facebook, say, hey, you know, calculator Colby, or even just say, hey, dude,

I heard you on Colby's podcast. I have some nuance to Mike. Can we get on a call? Can we, you know, what can I get to answer some of these questions? Because you will all have nuance to your scenario. Yeah. Everybody's different. Like, every situation is unique to you, right?

There's nobody out there that, I mean, you know, your cash flow is your cash flow. Your debt is your debt. You know, your interest on your mortgage is different. Your debt is different. Your cash flow is different. So, I mean, that's why I created that calculator so that you can play with the scenarios and you can see. And that was the one thing when we was at boardroom, I had a lady come up to my wife and she

was like, holy shit, Marta. is this correct? Like they did the calculator together and the lady saving over a million dollars in interest just by it's crazy. Yeah. And the guy Mark said,

oh, I saved 25 grand a week in his, in his business just by switching to line of credit and getting off the mortgage. And so we've got like success stories and success cases. This stuff really works. The calculator is key.

The workbooks are key. And then I've got banks in all 50 states that can do this. It'll be easy for people to find the primary. You know what I mean on your primary. You might start running into some issues with big multifamily, commercial, you know, packages of properties. You've got to start off small. You can't just walk into a bank, no relationship and be like, hey, give me $5 million line. I didn't do that.

My first line was 750 grand. And so, you know, you got to crawl and then you got, you know, you start to walk and then you run. Then you sprint. I mean, that's kind of how you're going to do the same thing with this line of credit. And so I'll have three QR codes. Okay, the first one, the calculator. I've got some workbooks. And then if you need help and you want us to do it, I have a team that will handle everything for you.

We'll put your personal financial statements together. We analyze your portfolio and see how we can get the maximum lines against your life insurance, your stock, your primary, your rental property. You know, we just kind of give you a global outlook and exactly what we can do. And we can do all 50 states and we can do multiple assets, you know, buildings, apartments, whatever. And so I'll have that QR code too ready and just hit me up on Facebook. You know, just look for Pat Grace on Facebook and friend me on Facebook, follow me on Facebook. And we'll just go from that. That'll be easy.

And then just DM me or call me and reference Colby. Yeah, Justin Colby. Colby's reference me. He'll know you came from here and you can ask your questions that you need and take from there. For sure. Pat Grace, everybody, I appreciate you. This is, what are we calling this? Burlock. Burlock. A burlock, meth. They call it velocity banking. They call it equity banking. You know, and so, but if you're doing rental properties and refinancing and, you know, bigger pockets came out with this burr. Everybody kind of knows that term. But, you know, for the smart money,

We're burlocking. We're not burlocking. That's it. All right, everybody. Go to Facebook. The original Facebook. Go look up Pat Gray, send him a message. Let him know.

You want his calculator. You want his good. You heard him here right here on the Moore show. Justin Colby's maximizing opportunities in real estate. This is a big one, ladies and gentlemen. Brother, I appreciate you. And if you think someone needs to hear this, share this with at least two of your friends. Give us a five-star review.

We appreciate it. We'll see you on the next episode.