Success in Real Estate Investing: Strategies and Mindset

June 29

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Real estate investing success necessitates thoughtful planning, wise choices and a confident attitude. It’s not merely about purchasing properties; it encompasses hiring practices, financial freedom experiences, time management strategies and overcoming self-limiting beliefs.

This blog post will delve into these crucial aspects of successful real estate investment. We’ll explore how money can transform your business operations through effective hiring and creating unparalleled experiences for clients. You’ll learn about regaining control over your precious time by achieving financial independence through investments into multi-family, residential real estate and others.

We also aim to tackle self-limiting beliefs that often hinder success in this industry. By surrounding yourself with successful individuals and understanding influences shaping successful mindsets like Pace Morby’s, you can redefine your perspective towards success in real estate investing.

Table of Contents:

The Power of Money in Real Estate

Money is essential for any venture, and in real estate, it serves as the catalyst of success. Having the right resources can open up a world of possibilities, such as recruiting talented personnel, providing clients with remarkable experiences, and having control over your schedule.

Hiring Top-Notch Professionals

With sufficient funds, you can hire experts who bring their A-game to the table. From property managers to marketing gurus and legal advisors – each individual contributes significantly towards enhancing operational efficiency and increasing profits. (source)

Creating Unforgettable Experiences

Money allows you to create memorable experiences for your clients. Whether it’s staging homes impeccably or using cutting-edge technology like virtual tours, financial freedom gives you room for innovation that sets you apart from competitors. (source)

Regaining Control of Your Time

Financial independence through real estate investing means regaining control over your time – one of life’s most precious commodities. Instead of being tied down by 9-to-5 jobs or worrying about monthly bills, successful investors enjoy flexibility and peace-of-mind knowing they have passive income streams supporting them. (source)

The power of money goes beyond tangible assets; it seeps into every aspect of running a thriving real estate venture – from staffing decisions to client experience enhancement strategies and personal lifestyle choices made possible by financial freedom.

Overcoming Self-Limiting Beliefs for Success

Real estate investing success depends on your mindset. Overcoming self-limiting beliefs is crucial to reach your full potential.

Change Your Perspective by Surrounding Yourself With Successful People

Successful people influence your perspective and actions. Spend time with those who share your goals and aspirations, so you can benefit from their expertise and glean wisdom on how to surmount obstacles. Check out Pace Morby’s journey for inspiration.

Mentors, Fellow Investors, and Clients: Your Key Influencers

Learn from mentors who provide guidance based on their experiences. Interact with fellow investors for fresh perspectives and innovative solutions. Use client feedback as a tool for improvement. Steve Trang’s Real Estate Disruptors podcast is a great resource for learning from top investors across the country.

Overcome mental barriers and don’t let your own doubts hinder progress. Embrace change by surrounding yourself with successful individuals who inspire and motivate you to reach greater heights.

Coaching & Accountability: The Keys to Real Estate Success

In real estate, coaching and accountability are like Batman and Robin – they work together to save the day. With their help, entrepreneurs can soar to new heights and achieve success in this competitive industry.

Why You Need a Coach

A coach is like a GPS for your real estate journey, achieving success in real estate investing without a coach is like ignoring the highway bridge going over the crocodile invested river and deciding to swim across instead. They provide guidance, support, and valuable insights based on their experience. A coach holds you to your objectives, guaranteeing that you remain on course and concentrated on what needs to be done.

Real estate investors who have achieved serious net worth, know the value of a coach. Whether you’re in single-family homes flipping or trying your hand at airbnb or a rental property, trying to go down the route of investing for passive returns in multi-family or funds or trying to go down the route of raising capital with syndications, being an actively involved in property management, a coach will help you pick the right path forward.

It’s a challenging time to be in commercial real estate but there’s always money to be made somewhere but doing it without guidance is tough.

Successful real estate investors leverage the power of connection. 

The Power of an Executive Assistant

Think of an executive assistant as your sidekick – they help you save time, stay organized, and maintain professionalism. With their help, you can focus on the big picture and leave the administrative tasks to them.

  • Saves Time: Delegating tasks allows you to focus on what matters most.
  • Maintains Organization: An assistant can help you stay on top of important details.
  • Fosters Professionalism: Having an assistant can help you make a great impression on clients.

Don’t think of hiring an executive assistant as a luxury – it’s an investment in your business’s growth and success.

By partnering with an executive assistant, you’ll gain the necessary guidance and accountability to propel your real estate business forward. With their help, you’ll be unstoppable.

Building Community as a Resource for Others

As a successful investor, Pace Morby believes that establishing yourself as an invaluable asset within your network through providing guidance and assistance is essential for success. According to successful investor Pace Morby, becoming an indispensable asset within your network by sharing knowledge and offering assistance is crucial to success.

Importance of Being a Go-Giver Within the Community

Forbes Real Estate Council highlights how creating meaningful relationships with other industry professionals can lead to mutually beneficial partnerships and collaborations.

Leveraging Tribe Mentality to Share Ideas and Trade Deals

A tribe mentality encourages collaboration over competition. In his YouTube video series, Pace Morby shares how he has leveraged this mentality in his own investing journey, leading him to share ideas freely and trade deals with fellow investors.

  • Fostering Collaboration: By fostering an environment where everyone feels comfortable sharing their insights and experiences, you create a supportive ecosystem that nurtures growth for all members involved.
  • Cultivating Trust: Transparency fosters trust among group members which is vital when trading deals or partnering on projects.
  • Gaining Knowledge: The collective wisdom gained from different perspectives within the tribe can be invaluable when navigating challenges or exploring new investment strategies.

Creative Financing Strategies in Real Estate Investment

Understanding the Process of Buying Properties Without Acquiring New Debt

Buying properties subject-to existing mortgages is a creative financing strategy used by experts like Pace Morby. Essentially, you take ownership of the property while leaving the original loan intact – making payments directly towards it until paid off completely. Creative Real Estate Online provides more detailed information on this topic.

Achieving Passive Income Through Creative Financing

Pace Morby has successfully utilized these creative financing techniques to generate consistent cash flow from his investments without needing large amounts of capital upfront. InvestFourMore offers further insight into achieving passive income through such tactics, proving that thinking outside traditional parameters could open avenues previously unexplored.

Key Thought: 

Building relationships and being a go-giver within the real estate community is crucial for success, as it fosters collaboration, trust, and knowledge sharing. Additionally, creative financing strategies such as buying properties subject-to existing mortgages can lead to passive income without requiring large amounts of capital upfront. Thinking outside traditional parameters could open up new avenues for investment opportunities.

Creative Financing Strategies In Real Estate Investment

Real estate investment can be a daunting venture, especially when it comes to financing. However, experts like Pace Morby have found innovative ways to navigate this challenging terrain by using creative financing strategies that allow them to buy properties without acquiring new debt.

Understanding The Process Of Buying Properties Without Acquiring New Debt

The traditional way of buying real estate involves taking out a mortgage or loan from the bank. By taking on new debt, one’s financial security may be jeopardized if things don’t go as intended. But there’s another method that savvy investors like Pace Morby use: they take over existing mortgages instead.

This strategy is known as “subject-to” investing and it works by having the seller transfer their property title while leaving their loan in place. You then make payments on their behalf until the loan is paid off, effectively allowing you to control and profit from the property without ever needing to qualify for a new loan yourself.

Achieving Passive Income Through Creative Financing

Beyond just avoiding additional debt, these creative financing methods also open up opportunities for generating passive income – an essential component of any successful investor’s portfolio. By taking over an existing mortgage, one can leverage rental income to exceed monthly payments and build equity in the property.

  • Rental income often exceeds monthly mortgage payments providing positive cash flow every month.
  • You build equity in the property with each payment made.
  • You benefit from potential appreciation of property value over time.

All these factors contribute towards creating a steady stream of passive income which not only helps cover your expenses but also accelerates your wealth-building journey significantly.

Pace Morby has successfully utilized these techniques throughout his career in real estate investing demonstrating how effective they can be when implemented correctly. His approach serves as an inspiration for many budding investors looking into alternative ways of breaking into real estate without being burdened by massive amounts of debt right off the bat.

such as those used by Pace Morby offer unique advantages that traditional lending options simply cannot match – making them worth considering regardless whether you’re just starting out or already have some experience under your belt.

FAQs in Relation to Success in Real Estate investing

What is the success rate of real estate investments?

Real estate investments have a high success rate, with an average return of 8-10% annually.

What are the 5 keys to property investment success?

  • Location
  • Market trends
  • Property condition
  • Financing options
  • Exit strategy

What is the #1 rule in real estate investing?

The #1 rule in real estate investing is to always do your due diligence before making any investment decisions.

If an investment property looks too good to be true, it probably is.

Conclusion

Real Estate Investing: The Key to Financial Freedom

  • Want to achieve financial freedom? Invest in real estate with VonFinch Capital and watch your wealth grow!
  • But it’s not just about the money – mindset shifts, accountability, and community building are also crucial for success. With the right coaching program, you can set yourself up for future success.
  • By hiring the right people and creating memorable experiences for clients, you can take control of your time and focus on growth.
  • Surrounding yourself with successful individuals and embracing coaching and accountability can help you overcome self-limiting beliefs and unlock your potential.
  • Building a supportive community is also essential for propelling your real estate business forward.
  • And don’t forget to explore creative financing options like buying properties without acquiring new debt or achieving passive income through innovative financing methods.

Success in Real Estate Investing: Strategies and Mindset Transcription:

Steven Pesavento [00:00:00]:

By being in a community like that where people know that they can trust the other folks in the community because they're all on that same journey. They're all looking to publish some of the same things can be a really, really powerful place to let go of some of those fears and adopt some new beliefs so that we can actually start having those conversations about money and investing that end up leading you to really changing your whole life. Welcome to the name your numbers show presented by the investor mindset. We're on a mission to help create financial independence for over a million investors. And we believe when you name your number, the number that you want to earn passively every single month, that creates your ultimate quality of life. Then I believe you've achieved real freedom. Today, really excited. Got a very special guest in the studio today. PACE Morby. How you doing today, PACE. Love in life, brother. Thank you for having me. I appreciate it. Yeah. I'm excited to get in for you for all those who don't know PACE. He's an author investor and founder of sub 2. He's acquired over $250,000,000 of real estate assets through Creative Financing, and he's a cohost of Amy's top performing show, triple digit flip, and prolific out in the teaching and education base. You've helped a lot of people, a lot of my friends, seen a lot of your content. I'm excited to be able to dive into your story here. You ready to get started?

Pace Morby [00:01:28]:

Yes, sir.

Steven Pesavento [00:01:29]:

Well, before we get into all of the amazing things that you've done, I'd love to start out on a personal note by looking back at earlier in your life, what events or influences from your childhood shape to who you are today, and how has that impacted your money or investing journey?

Pace Morby [00:01:49]:

Both good and bad. My parents taught me to work hard and not only work hard but to enjoy working hard to point where I grew up and became addicted to it, like it like it's a video game. And I never looked at it as a bad thing. where most people look at work is like, oh, you need to take time off. You need to take time off. Bro, if my work is my hobby, why would I take time off? Right? So there's things there. There's a lot of really good things there. But on the bad side of it, what I was taught was to work hard, not to work smart, not my parents didn't teach me leverage. My parents didn't know to teach me leverage, and my parents also didn't teach me how to build teams and build companies. My dad deal to this day at 65, sixty six years old as a solo preneur. And so the bad side of that is through my twenties, I strung and failed multiple times, not because I didn't have a good business, but because I could not figure out how to scale out of being the operator myself and doing everything literally myself until the point where I basically self sabotaged every business I created until I figured out how to leverage teams?

Steven Pesavento [00:02:55]:

This idea of working hard and working all the time, a lot of successful people all feel that I know personally love what I do. It sounds like you love it as well. What do you say to those people who are listening? They don't love what they do. How can they get on that path towards being in alignment so that they can apply that hard work ethic towards, you know, something they enjoy.

Pace Morby [00:03:17]:

The older you get, the more unapologetic you become. So I apologize for not apologizing. I'm sorry for not being sorry to the people I'm gonna say this to, but You don't believe in your religion because you just woke up one day and believed in your religion. You don't have the political affiliate you have because you just woke up one day and believed it. Even to most people, the sports teams that you choose to root for, the religion you're in the schools you went to, your interest, the job you ultimately ended up in was because of your environment. Your parents, your immediate circle of influence, the people on your street that you hung out with. We are a herd animal. We do what the herd does, and I'm no smarter than that. You just have to figure out which part of the herd you wanna hang out with. And once I figured out that the people that were making the money to attain real financial freedom -- Mhmm. -- were not hanging with the people I was hanging out with, I was like, man, I'm in the wrong circles. And more and more often, I the older I get, the more I realize I had nothing to do with my success It was always somebody else's influence in my life that had everything to do with my success. And along the way, all your I look at myself as Tarzan swinging from from vine to vine to vine. And I will use one relationship in a positive way and I'm hoping that that vine that I'm holding on to that relationship swings as far as possible, and I can hold on to that relationship. But at some point, if you're working really, really hard towards a goal, you will inevitably outgrow a lot of the relationships that you needed at some point along the way. And you even right now, I'm in a transitionary period. I'm one of my very, very best friends. I'm losing him as a very best friend because he chose to stop growing, and he can't keep up with my goals. And so I have to go find people that are on a different wavelength so I can continue on the path that I wanna stay on. So, again, it goes all the way down to who you're hanging with. If you're listening to this, you'll somebody already is nodding their head like, yeah. You're right. You're right. Guys, the last time I spent with my mom, my dad, my siblings, the last time I spend with my friends from my high school and college, the more money I make. k? And the more time I spend with them, it doesn't mean I don't spend time with them and I don't love them. But the guys, money is everything. People that tell you otherwise are are lying to themselves and they're probably broke. Money is everything. It's how you hire people. It's how you pay for experiences. It's how you buy your time back. It's how you Like, right now, I I was going through my work my morning workout and I was going through what are the things I don't wanna do today, And I go, oh, you know what? There's 15 things I I keep doing every week. I don't wanna do those anymore. I'm gonna hire somebody to do them. Guess what? I give somebody a job because I have the money to do so. Money everything. It allows me to spend time with my family and my close relationship. So guys, get a you have to get around people that are making the money you wanna make and doing the things that you are doing.

Steven Pesavento [00:06:20]:

Yeah. Or you want to do. Sorry. Yeah. And that's it's so true. Like, money is such a powerful tool, and when you don't have any of it, you're missing the ability to have that that that universal key that opens every door can solve most of the problems that you have in your life that can allow you to have the the ability to invest in yourself to continue growing and changing or hire people that can help support you. But a lot of the times, people get stuck Right? It's until you get surrounded with other people who are living that life, and they're going out, and they're making a lot of money, and they're going in adventure and they're loving the work that they do every day, that you don't really believe that it's possible until you see it. And when all of your friends are doing it. And every time you take a trip with your friends or you're going on some adventure or you're doing something that's that's exciting and you look around and you're like, yeah, man. We made it. We we're doing it. We're doing it because we're surrounded by these people, and that often takes an investment. have to bring value to that type of community. You're either gonna have to pay to be in a mastermind where other people are being curated to be in kind of group, you're gonna have to be that type of person that other successful people are gonna want to be hanging around. And and it's it's so important for you, when you were growing that those early businesses before you got into the space and state that you are today, what is it that

Pace Morby [00:07:56]:

of hiring people, being afraid of being responsible for another human being, being afraid of if I hire this person, they have children. And if I fail I will put them in a bad situation. So it was all mindset and not believing in myself, and then it was also a lack of being around other people that were doing and doing it successfully that gave me the blueprint because there's only so much you can learn on a podcast or YouTube or a book or a seminar we are very physical people, and so we have to be in the presence of somebody doing the thing. It's kinda like when I was trying to learn how to be a a framer, there's books on how to frame, like, you know, framing for dummies. Right? And I could read a book all I want, but it's not until I have my boots on and I get my drill and I've my hammer and I've got my nails and I've got the tools and I'm on the job site watching somebody else frame a house that I'm actually going to learn. And so For me, here's here's the big push. I needed somebody to push me. The guy who pushed me was a guy named John Baum. I was paying him at the time I this is funny. I was forced to hire him because somebody I was working with at the time, Steve Mike Mike stuff. Steve Mike says, shout out Steve Mike's. I haven't even said that name in probably 10 years. Steve Mikesta says, if you're gonna be on my team as a loan officer, this is back years ago, I require everybody on my team to have a personal coach. I'm like a personal what what the hell do I need a personal coach for? I could watch YouTube. He's like, gonna say this one last time. If you don't have a personal coach, you're fired and you're off my team. I go, fine. Give me a referral. And I he's given me a refer of a guy named John Baum. And now just to give you the quality of this human being, John Baum is now the head mindset coach of the Phoenix Cardinals or the Arizona Cardinals. And but at the time, he he wasn't a big prolific name. And I would pay this guy $500 an hour -- Mhmm. -- to sit in a Starbucks with him And the first time I sat down with him, I internally, in my mind, I'm like, wow. What a waste of money. This guy's a con artist. He's convinced these people that $500 an hour with him, not even sitting in a real office is worth this time. And I'm telling you within 15 minutes, that guy changed my life. Mhmm. He was a he was a non interested third party that didn't have any opinion about my life, my religion, my you know, any of my path, he just, like, spit complete facts at me. And the second I loved every minute of, he re altered my brain told me that, you know, you should do this. You should do this. You know, very technical. I'm I'm a very, like, technical guy. You can't just tell me, go do better, and I go do better. That's not how it works. You need to tell me You need to hire an executive assistant that does these 15 tasks. Here's how you manage her. Here I like, that's how I that's how I learn. You have to be very specific with me. John did that in our first meeting. He goes, I can already tell you everything you're failing at. You don't have anybody helping you. You're doing it all yourself. This is back when I was a contractor slash like loan officer on the side. Mhmm. And he says, go hire somebody. So I go, alright. Cool. No problem. I come back 30 days later for my next meeting, 500 another $500. and he I walk in and he stands up from his where he's sitting. And I'm thinking it was to greet me, but he says, don't sit down. this is the last time we're gonna meet. And I'm like, what what you mean? This is the last time we're gonna meet. He says, I can tell by the way your walking that you did not hire anybody in the last 30 days, and I do not wanna do business or be around people that don't do what they say they're gonna do. and do not value 30 days of their life doing things the wrong way. And I said, oh my gosh. No, man. I value you. The last meeting we had was so beneficial. He's like, it's only beneficial if you put it to action, you asshole. And he sits there and he's cussing me out in in Starbucks. And man, am I grateful for him? He he he goes, if we're gonna meet, sit down, open up your phone, put an ad out right now, and watch you like a child. k? I'm gonna watch you like a damn child and you're gonna put an ad out. We're gonna hire you an executive assistant today and do not come back and meet me next month if you if you don't have somebody in in place. bro, I was so afraid of hiring somebody at $3000 a month just to get started with me. That's how small my mindset was. and I end up hiring this girl. She tripled my business in 30 days. You know how she tripled my business? is because she actually picked up the damn phone, and she would collect the bills, and she would do all the things. And I'm like, oh my gosh. What have I what have I been doing for the last 7 years? And it wasn't until John Baum forced it wasn't until Steve. Mike stuff forced me to hire a coach. And then John Baum treated me like a child, which is what I needed, that I finally changed my life and starting put putting pieces together and thinking intelligently. And at that point, I was like, wow. Okay. Spend money Be around the right people. Spend money. Be around the right people. Spend money. Be around around the right people. And now, sorry to give you such a long answer to this, but it is such a great question. Oh, is great. Now I am at a point where I spend this year, I I'm a I joined a mastermind that's a $100,000 a year. So the most I've spent on a mastermind, but I've spent a lot of money on masterminds, and here's why. Just like if I go to Instagram right now, it's gonna feed me very specific things based on what I have set my intention for. I spend time looking at people that are talking about real estate or market updates or whatever else. So all of a sudden, the algorithm starts feeding me, feeding me, feeding me, feeding me. Right? The the longer life on, the more we all become segmented. Right? It's why certain people only watch CNN, certain people only watch Fox. And so the whole world is becoming so fragmented because the algorithm of life is putting us in our own little buckets. Right? Mhmm. So I realize I have to go choose which buckets I wanna be put into. And so I found a mastermind this year that requires you to be generating $1,000,000 a year in revenue in your business just to be able to get into the mastermind. And I'm like, that's a filter or an algorithm that I'm willing to invest in. And now I'm only gonna be rubbing shoulders at these masterminds with people that are doing 5,000,000 a year or more in revenue, And I'm sure that next year, I'll I'll go and upgrade to a $300,000 mastermind where I only spend time around people that are doing 20 30, $40,000,000 a year in revenue. So it's just a compounding essentially, it's just a goal of how do I my surroundings every year, and then how do I put into action all the things I'm learning in those surroundings as quickly as I they can.

Steven Pesavento [00:14:32]:

Yeah. There's 2 really big takeaways there, PACE. It's like there's nothing more powerful than having somebody in your life who can give you that real direct feedback, the way that you need to hear it, hold you accountable to taking the action, and be willing to walk away because they set a hard boundary that they're not going to mess up their record by working with somebody who's not gonna actually take the coaching and the mentorship and the advice and go and do it. Because after that happened, you took an immediate action. It got uncomfortable. You did really wanna do it. It was a little bit scary. And so many of us are listening to this and thinking, man, that's kinda harsh. But that's exactly what you needed in that exact moment. And you need those people so that you can truly step into what you were meant to be able to do for you to be able to have that experience of hiring that person Obviously, at this point, you have 100, if not a 1000 plus people that are working for you and on your team because that lesson ended leading you to the place that you're at today. And I think the second big takeaway is when it does come down to the power of community, the power of the people you surround yourself with. Sometimes you have to have a filter like that where somebody else where somebody is taking the time to put together a group of people. They've attracted people who are at a very high level so you can be in the same room. And some you know, when I hear a 100,000 dollars. I've spent a lot of money on a lot of masterminds and coaching, and I'm a big believer in it. I know that when some people hear a $100,000, they think, well, that's insane. That's crazy. That's so much money. But the outcome, the upside of that investment is that you get to be not only stepping up yourself to another level. You're gonna see things that other people who are not in those groups don't see. You're gonna be having conversations at a higher level, but those relationships, you never know where a connection can come from. I know that's a big part of your business. You've really done a phenomenal job of building a community as well as going and tapping into other people's community to help other people get what they want so that you can get what you want. I'd love for you to talk a little bit about the power of

Pace Morby [00:16:45]:

being a valuable resource in communities because I know through the creative financing space, you've really set your self up as that go to person in a lot of other people's circles as well as your own. Again, out of a out of a necessity, I built my own community, and then you know, now you have a lot of people in the real estate space emulating me and going, oh my gosh. Paces figured it out. I'm gonna copy him. Good for them. I'm I'm happy that they they are you know, it's a positive direction. I 2 things happened to me. 1, I took a mentorship. It was $47,500 for a guy here in Arizona an absolute waste of my money. The guy hadn't done a real estate transaction in over 10 years. He wasn't keeping up on, you know, state laws. would only meet with people one time per month for 6 months for, like, 47,000. I didn't know any better. Right? And so I said, I got burned so bad. How about I create a free mentorship for people on my YouTube channel, and I have a free creative finance Facebook group to essentially eliminate the guys out of the industry that are charging people $50,000 for a worthless mentorship And I wanna provide more free value to everybody than most people have the ability to to pay for. Like, it's it's it's insane. So I did that was necessity number 1. So it created a lot of free value. And then the second necessity is that I found that when I was doing deals across state lines, I had a lack of collaboration. I had nobody I could rely on through a vetted process. In fact, what I did is I had a deal that was in Denver, Colorado. The the Phoenix the the deal was in Phoenix, but the seller lived in Denver, Colorado. it was a secondary home for him. He his wife fell ill. They decided, hey, we're not gonna go on more anymore vacations. We're getting too old. Let's sell this home in Phoenix. Our our vacation home. So I strike a price with him, and I said, hey. I'll send over the contract. He says, no. You're not sending over the contract. You're gonna meet me in person to sign the contract. And I was like, okay. He doesn't like DocuSign. He doesn't like the digital stuff. Okay. No problem. Yeah. And I said, okay. I'll send you a DocuSign. He goes, no. If you're not here physically in person I'm not signed in the contract. I'm like, okay. Cool. I'll I'll send a mobile notary. He's like, no. I wanna look the man in the eyes that I'm doing a real estate transaction with and shake your hand like we should, like men. And I was like, okay. Great. No problem. He said I said, I'll I'll send my either myself or my partner to Denver to meet with you. And what I was thinking, I was thinking, okay, I'm gonna go find somebody in Denver that can go and meet with this guy so I don't have to fly out there or drive out there. and do this whole thing. So I go on at the time. The only place that you could get any sort of help in real estate was this website that was just a bunch of it was a forum, kinda like a Reddit forum, but only for real estate. Mhmm. And I go on there, I ask for help, and I say, hey, I've got this property. I need to get somebody to basically my be my JV partner, my joint venture partner on this one deal alone. We'll split the the profits 5050. but I need somebody to go and meet with this guy face to face. And number 1, I had a ton of people ridiculing me. Like, why don't you just go do it yourself? You're you z blah blah blah blah blah. Just ridicule ridicule ridicule. I'm like, dude, I'm just trying my best here, man. Like, where's the love? Yeah. Like, where's where's the help? And after 3 days, the guy call the seller calls me up and goes, hey. We're meeting to we're meeting in 2 days. Are you coming up here? Oh, yeah. Yeah. Yeah. got I'm don't worry. I'll figure it out. And that day, like, maybe 4 or 5 hours, I had a guy see my post, calls me up his name Steve, And Steve calls me up and he goes, hey, I saw your post. I'll be your JV partner. I'll go meet with the seller. I go, thank goodness. Amazing. This is this is so helpful. Thank you so much, man. So what does Steve do? Well, Steve goes to the property. He prints out my forum post And he shows it to the seller and he says, hey, PACE isn't intending to buy your property. He's actually just fishing for other people to pose as his partner. And I just wanna buy the property with you directly. Let's cut pace out of the deal. Well, welcome to real estate, like, Yeah. 5 years ago. k? That was real estate 5 years ago. And so I Been there. How did I find this out? Well, the the seller calls me And he says, hey, PACE. I promised you I'm a man of my word that I was gonna sell the property to you. This guy, Steve, that you just you know, tried to partner with just went around your back to try and steal this deal from you, and I'm a a man of my word. I'm still gonna sell the property to you I don't care what you do at the property but we have a a price I've agreed to, you still need to get here. Well, now it's Thursday night. and he told me he's gonna signs it with me or somebody else by Friday at 5 PM. So I drive all the way up to Denver, Colorado, 16 hour drive because I couldn't get flight at the time. And I go meet with this guy, get the deal signed, shake his hand, and I'm driving home 16 hours, and I was just so aggravated by the fact that there was no way for me to collaborate with people across the country, and all I could run into were a bunch of Cheysters and backstabbers. Mhmm. And so for that whole 16 hour drive back home from Denver, Colorado, I dreamed of a community of people that were gonna be vetted go givers that will go out of their way to help you across the country. And now I've built it. I've built a community of 10,000 people that, like, yesterday, I go to Vegas, and I post 1 I make I make one post on my private Facebook group in my community. I go, hey, guys. Taco party on me at at noon. I'm looking at properties. 150 people show up in, like, 45 minutes. And I'm sitting there watching them. They're all doing deals with each other. They're all hugging each other. They all get to see each other all the time. they're not they don't own businesses together, but they're trading deals like Pokemon cards and they're just and I'm like, this all came because a guy stabbed me in the back. And I have I had to build my own community out of necessity and fight the way that he the natural human tendency is to fight for your own. But the proper way that the universe will reward you is you go out and you build something for somebody else and you do everything, and and you create an ecosphere and people will come, the the highest quality people will come to this community. And unfortunately, I have two people inside my community. Their full time job is to vet people into the community and then vet people out of the community that are not go givers and are not giving and it's been a lot of work, but it's how I've amassed a lot of real estate is because I've taught these people in this community how to trade deals with each other and help each other out. And now we do I think it's 36 Zooms a week with each other. Like, tonight, I'll do we we'll do 6 Zooms today, and I'll do one Zoom tonight. That's hours long just helping people do deals all over the country. And so community for me was everything. It was how I went from doing 5 to 10 deals a month to now doing 20 to 25 deals a month because I can rely on a community of people.

Steven Pesavento [00:23:50]:

Well, it's so it's so true. And, unfortunately, I've experienced that, buying deals, having people try to circumvent you or or or try to get around something. And and it's unfortunate, but what's so power full about what you're saying is that there's really something in the tribe mentality when there's when there is a clear tribe with a set of values and knowing that if you don't hold those values, you're gonna get removed. And that keeps people honest. That keeps people who have those same values moving in the same direction. And I think the really important example that I see within this is that if you're somebody who's just getting started in real estate, you're somebody who's looking to to continue to grow your business and do more deals. And and you're more on the active side. It's super important to those people in different places that you can be able to share ideas, but also being able to trade deals. The fact that you can call upon people across the country and come in and add value and support to those individuals. While they also add value and support back to you, it's so key. And a lot of times, people when it comes to money and investing, there's a lot of fear around talking about money. There's a lot of fear around sharing openly how you're doing, and and I really see that as kind of a middle class mindset. That's the way I grew up learning. Like, let's not talk about money. Let's not talk about success. Let's not talk about how much this thing cost or or what this thing was. And I think that's something that a lot of people need to break. And by being in a community like that, where people know that they can trust the other folks in the community because they're all on that same journey. They're all looking to accomplish some of the same things can be a really, really powerful place to let go of some of those fears and adopt some new beliefs so that we can actually start having those conversations about money and investing that end up leading you to really changing your whole life.

Pace Morby [00:25:44]:

Yeah. 100% agree with that.

Steven Pesavento [00:25:47]:

So, PACE, when it comes to your specialty, you have really become come one of the go to people, if not, the go to person for creative financing in real estate. As we're getting close to the end of the episode. I know there's a lot of listeners who you know, they're earning some good money in their career, but they don't really quite have the cash that they would need to start investing passively or starting to really grow their wealth just from investments that are more hands off always see creative financing as a great way to get involved in real estate so that you can not only continue to increase your in come, but you can start to really be able to create a great skill. So could you share a little bit about kind of what we mean when we say creative financing and and why you think it's such a valuable skill for people to learn if they want to become an active real estate investor?

Pace Morby [00:26:45]:

Okay. Yeah. No problem. Creative Finance is the process of buying anything. Cars, businesses, real estate, without a going out and getting new debt. k? So, for example, if I wanna buy a car, go to the bank, and I go, hey, bank. Hey, bank. I wanna I need $20,000 to go buy this $20,000 car. Or that's that's the traditional way. Alright? I need I need credit. I need some cash as a down payment, and I need some credentials. They wanna see that I have the ability to pay, and they wanna see my w 2, they wanna see my tax returns, creative finance obliterates all of that. I just go directly to the seller and I go, hey, will you either a Let me take over your existing car payments, and I'll give you, like, a thousand bucks, and I'll just take over your existing car payments. I have a lot of exam not examples, but very specific stories with VIN numbers and everything on my YouTube channel. You can go and watch how I buy I bought a I bought a Kia, multiple Priuses, motorcycles, golf carts. I just bought a a 2023 Escalade by just taking over somebody else's payments, and I become the owner. That's called subject to. I'm buying something subject to somebody else's debt. That's what I do in real estate. I find real estate. it's so there's so much of this that I don't do any traditional real estate. That's that's how possible this is. So I find sellers that are in a situation whether it's they bought the property a year ago, and the property hasn't gone up in value yet. So they owe just about as much as the house is worth. And they're like, I don't wanna sell my house because I don't have any I don't really really don't have equity. okay. No problem. I'll just take over your payments. We'd probably do one of these a day. Just my little team does one of these a day, but I see thousands of them all over the country every single day all the time inside of community. So I just take over somebody else's payments. Nobody checks my credit. Nobody checks my credentials. Nobody cares if I have a job history. They don't look at my bank statements. They don't look at my tax returns. They don't look at anything. And A lot of the times we buy properties with no money down. And then we turn we put a renter in the property. The renter not only pays the payment that I just took over, but I have the additional spread of the the passive income, which is great. Seller Finance so that's subject to taking over somebody else's payments. Seller Finance is if I go to guy who owns the car and I go, hey, how about I take over your payments? And he goes, I don't have payments. I paid my car off free and clear. I go, okay. Well, why don't you just let me make payments to you? 500 bucks a month for the next 40 months. Right? That's seller finance. And so I do that with real estate. I do it with multifamily. I do it with RV parks. I do it with if I open up my email inbox, all my email inbox is full of is Dozens of deals, 12 plexes, RV Park, single family homes, multifamily properties. I got a 24 unit in San Antonio. My biggest deal I've done with Creative Finance is a $20,000,000

Steven Pesavento [00:29:34]:

256

Pace Morby [00:29:35]:

unit multifamily deal. I'll do bigger once. Right? The better I get, the bigger the bigger the deals will get. And so I look at all the other real estate strategies. I'm like, why would anybody do any of these? I don't don't it doesn't make sense for me to go to a bank and acquire debt. My my average interest rate that I'm taking over on people's existing payments list. So while everybody else is going to the bank and saying, I wanna go, you know, buy this rental property and put 30% down, welcome to being a real estate investor, you're not getting a 20% down loan, you're getting a 30% or maybe you have a 35% down loan right now at 8% interest. I'm getting properties at 0% down, maybe upwards of 10% at the very very very highest, including my closing cost, including my furniture, including everything. to get it ready. And my average interest rate's 3% that I'm taking over. I bought a property in Hawaii, 2%. I bought a property yesterday in Vegas, two point 75%. Bought a property today in Phoenix, 2.5%. So I'm just taking over existing debt and a tenant in it that pays it and then gives me the rest of it goes to me in passive income. So for me, I don't know why anybody wouldn't be doing the strategy if you're in real estate. It's it's absolutely crazy for you to do anything else.

Steven Pesavento [00:30:50]:

Yeah. Well, I think it's such a strong strategy, especially right now. I mean, it's good in any kind of market, but what we're seeing is, you know, the last 3 or 4 deals that we've purchased have either been have all been seller financed all between 2 to 4 percent rates and, you know, interest only payments or taking over, you know, an assumption of somebody's loan. And these are some of these are smaller deals, 50 units, and some of these are are much larger deals But right now with the current debt market, a lot of deals don't make any sense. And so when you can come to the table and be creative, and be able to make those kind of offers to sellers whose properties are sitting, and they want to sell, they want to be done. it makes so much sense. It really, really is a a phenomenal strategy in it. And those folks who are active in real estate who aren't doing it, you're absolutely missing out. And for those of you who are investing passively, it's great to know a little bit more about why these strategies are so official because when you can buy a property and you can get a 2%, 3%, 4% loan, and currently, we're seeing, you know, 6 or 7% loans, that's a huge savings, especially on big deals, but it's great on small deals as well. PACE, we're just out to to wrap up here. You've got one last question. Would you share

Pace Morby [00:32:15]:

with the audience how they can follow you or or get in touch. Can always follow me on YouTube? I also answer all my Instagram DM. So if you guys ever have a question about in anything, just DM me on Instagram. I literally as I was coming on the show today, just answering people's DMs the whole day. So I I love answering DMs, helping people, whatever you guys need help with. I'm I'm here.

Steven Pesavento [00:32:34]:

Yeah. And what's that? What's your handle on Instagram?

Pace Morby [00:32:39]:

Just pace, Morby. Every everywhere Pace Morby. Twitter, TikTok, Facebook, YouTube, everything's Pace Morby. On YouTube, I think we we've got, like, Think we're at almost 200,000 subscribers and we get about 4 and a half to 5,000,000 views a month. So people seem to like our YouTube channel. So if you guys wanna learn more, I'm crazy. Like, I will give you all my addresses I buy. I'll give you even people go, this is impossible. I'm like, great. Here's settlement statement with the title company. It's been recorded public record. Here's the address. Here's the settlement statement. Shows I have put $0 down. I own the property. Go look up public record, you can see my LLC that owns the property. I'm crazy. So when people like this doesn't sound real, I I just say go to my YouTube channel. I give it all away for free.

Steven Pesavento [00:33:22]:

Yeah. Well, the last question is on passive investing, and I just wanted to make sure people had that before we get to the last question. But what I'm curious about I know the audiences as well is that you're the creative financing king. And so how does creative financing lead into being able to actually use it to create passive income because I think a lot of people have a belief that if they're gonna go and use creative financing, they're gonna be stuck doing the day to day management and making all the decisions along the way?

Pace Morby [00:33:51]:

I have roughly 1800 doors, which sounds daunting to even say And if you told me that 4 or 5 years ago, I'd be like, you're crazy. I won't get there that fast. So it sounds crazy. but I don't know one tenant's name, not a single tenant's name, nor have I ever known a single tenant's I've never been over to fix a single thing on any property. Guys, welcome to 2023, 2024. Everything is managed by other people. Technology has taken over. all this whole thing of, like, oh my gosh. So the tenants are gonna reach out to me. Okay? I use a company called Mind Property Management, n d nationwide. They handle all my traditional rentals. I use a company called padsplit.com for all of my co living businesses or all my co living houses. And then I have other management companies that do my Airbnbs and all that kind of stuff. I literally don't manage anything. I truly am a passive investor. I hear this all the time. People like, oh, real estate's not truly a passive invest investment. I go, oh, you must not be a real estate investor. You must be real estate hobbyist because I actually have people that manage my assets that keep me passive and I get a weekly report every Friday, If there's a maintenance request, somebody else handles it. I'm not involved. I all I do is I get the actual passive income and When I want to, I'll send Molly, my COO. I'll send her a text message. I go, hey. Do we have any vacant houses we've recently recently purchased so I can go and do YouTube content? And then I have to call her and go, okay, what's the story on this house? I'm at we're at a point now. I don't even know how we got the houses. Like, I have a team of acquisition people. They're closing it. we're going through the whole process. Welcome to running a business. Right? It's like a subway sandwich franchise owner saying, I don't wanna own a subway franchise because I'm gonna have to make all the sandwiches. That's such a stupid statement. You you own the business, you hire people to run it, and you check-in on it from time to time. I'm at a point now where somebody else checks in on it and then just gives me the report every Friday. So, yes, real estate creative finance, it truly can be a passive thing contrary to what Dave Ramsey will teach you and put you into his mental scary prison of appealing to your lizard brain, so you'll buy his $35,000, you know, financial, you know, get out of jail course or whatever it is that he has. Yeah. guys, real estate truly is the only passive investment I've ever been a part of.

Steven Pesavento [00:36:14]:

Yeah. And what I'm hearing from you is really it's passive when you build the system in the business. When you have the people that can make those decisions on a day to day business, it can put you in that position. I think that's the fear a lot of people have is they've gone and owned rental or they've gotta done some of this stuff. But then at the end of the day, they still have to be the one making the decision to oversee making sure that property manager does the things, but that's like any business You have to put the right people in place, and you have to be able to manage those people.

Pace Morby [00:36:44]:

And, yeah, and for me, own multiple businesses. Real estate is my favorite one because it is passive compared to all the other ones. The other ones that I'm dealing with human beings and their emotions, and I wanna raise, and I want more time off, and I want this. And why does that person make more money than me? And what did you deal with all of these things and all of your all of our other businesses with employees. So for me, real estate, I don't deal with that. A a management company deals with the tenants. Management company deals with the with the issues and the tracking and all that kind of stuff, and they said the technology lets them deal with all the maintenance. And every Friday, I get a report. Here's what's happening on all your properties. Here's which ones are vacant. They fill the units, they turn the units, they do the carpet, they do the paint, they literally do everything, and it just comes out of the the cash flow that comes from the property. So I don't know another business, at least I haven't found one that is truly as passive as real estate.

Steven Pesavento [00:37:37]:

Yeah. It was one of the reasons I love it. There's so much potential. There's so many different strategies. PACE is so great to have you on the show. Thanks for joining us. Definitely go follow. PACE Morby on all the channels knowles. He's got a lot of great content out there. And thanks for listening. We'll see you guys on the next episode. Thank you for listening to the investor mindset set podcast. If you like what you heard, make sure to rate, review, subscribe, and share with a friend. Head over to the investor mindset.com to join the insider club. where we share tools and strategies from the top investors and entrepreneurs on how to take it to the next level.



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