The Housing Market ‘Great Reset’ - How To Buy A Home For $0! | Pace Morby

**Graham Stephan** (0:00)
What you want to see is what I've called a property earning democracy. Well, the Trump administration is considering declaring a national housing emergency here in the coming months.

**Pace Morby** (0:08)
It is the best time to buy real estate if you are an investor. It's the worst time if you're a retail buyer.

**Graham Stephan** (0:14)
Do you own any stocks?

**Pace Morby** (0:16)
Why would I?

**Graham Stephan** (0:16)
What about gold?

**Pace Morby** (0:17)
You're thinking about like, how do I save money rather than how do I make money? That's the difference between the Dave Ramsey audience and me. Save, save, save, save, save, save, save. I want to make, I want to learn skills that I can go and make more money.

**Graham Stephan** (0:29)
Bitcoin?

**Pace Morby** (0:30)
Bitcoin is a gamble at the end of the day. Real estate is a gamble. It's all a gamble. I'd rather go get a property with no money, let the cash flow then buy the Bitcoin. I do not take active income and buy Bitcoin with it. That's crazy. Why would I take real money and then take the risk on something that might fluctuate because Elon Musk posts a tweet.

**Jack Selby** (0:48)
So what should the everyday investor do today if they want to deploy their money?

**Pace Morby** (0:52)
If I was going to start over from scratch and I was going to do it over, I probably would...

**Jack Selby** (1:00)
Well, it seems like your specialty has always really been real estate at the end of the day.

**Pace Morby** (1:04)
Yeah.

**Jack Selby** (1:04)
How many units do you currently own?

**Pace Morby** (1:06)
About 2,000.

**Jack Selby** (1:08)
What does that generate every month in cash flow?

**Pace Morby** (1:10)
It generates cash flow. Is cash flow in my pocket or is cash flow income?

**Jack Selby** (1:17)
Both.

**Pace Morby** (1:17)
No, very different.

**Jack Selby** (1:18)
I'm curious what the gross would be and what the net is and what the debts look.

**Pace Morby** (1:22)
Your audience needs to know the difference because one person will say like Brandon Turner, a good friend of mine, he's been on the show. He'll say the word cash flow, then another real estate investor will say cash flow. One guy means net, the other guy means income. You have properties like that. My portion of that is close to a million dollars a month, but there's other partners in there that take their distributions as well. That's on the net side. On the gross side, oh my gosh, here, I'll show you one of my properties. I actually just got the income statement. I'll show this to you guys. Income statement on 161-unit deal that I've owned for about a year and a half. I bought it seller-financed, so no bank involved, no credit check, none of that stuff. This property, let's see, it is one bed, one bath. The income statement is right here. The first month I bought it, orange, that's the net that's in my pocket. What's that number?

**Jack Selby** (2:17)
29,904.

**Pace Morby** (2:19)
Okay, cool. So now, a year and a half later, let's look at my net now. What's my net?

**Jack Selby** (2:25)
Ah, $77,795.

**Pace Morby** (2:28)
That's net in our pocket on one unit. And so it changes, right?

**Graham Stephan** (2:33)
On one unit or like one...

**Pace Morby** (2:34)
One property, right? So it's 161 units, that property we bought. So for your listeners, if they want to go find this stuff, you can go to like creativelisting.com. You could go to craxi.com. Have you guys ever heard of Craxi? Have you ever heard of Loopnet? Yes. Okay, Loopnet, their competitor, which is a way better company, I think, is craxi.com. I don't own it. I don't get paid to promote it, but craxi.com. That seller was on craxi.com trying to sell for 20 million. He kept reducing his price, which is happening right now. It's like the number one thing happening right now. You heard Ben Mala and all these people talking about this on your show. People are reducing their prices. I go to a seller like that and I go, stop reducing your price, just give me seller finance. I'll give you the number you want, but you just got to take payments over time. That seller on that property, I think we pay him like 40 grand a month, but he's our bank. I'm sorry, $54,166 a month the seller gets. Instead of me paying a bank, I pay the seller, right? Where does that money come from? The units, 161 units generate $165,000 a month in income. Our net is $77,000 a month. No banks, no credit, no down payment, no money out of my pocket, $77,000 on one property. That's while other people are saying, oh, the market's slow. That's a property that I just got my distribution today as a partner on that deal. So depends, every deal is a little bit different. If I was going to start over from scratch and I was going to do it over, I probably would jump into RV parks because they make the most bang for your buck. That's $20 million I bought that for. Again, I'm not coming up with any money, but that's $20 million for $77,000. There's RV parks you can buy for $3 million and you net $22,000.