Latest / The Hannah Hammond Show / How to Buy Real Estate with $0 Down | Pace Morby

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How to Buy Real Estate with $0 Down | Pace Morby · The Hannah Hammond Show

0:00
Robert Kiyosaki is always going to be more popular than I am.
0:03
He's going to have a bigger brand than I am.
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But I will change more people's lives directly than Robert
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Kiyosaki has the capacity to do it.
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I want to find a homeless person and I want to show the world
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that I can take somebody with mindset issues, drug abuse, and
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I can still make them a successful real estate investor
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by giving them very specific steps.
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It's insane. You have half a billion dollars
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of commercial and residential real estate.
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You pretty much are the creator of creative finance.
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Creative finance is the ability to buy anything that you want
0:31
without any money of your own, without credit and without a
0:34
bank and without a license. So I can take this phone and
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give you 1000 bucks, but I'm going to give you $100 a month,
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10 months in a row to get you to that 1000 bucks.
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So giving them terms, that's creative finance.
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There's been a lot of times where I tried to follow this
0:47
person because I thought that was the path.
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But when you find out who you are, you'll wake up excited
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about what you're doing and you're going to relentlessly
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pursue that thing that excites you, and you're going to be
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inevitably successful. Everyone's coaching is burning
0:59
to the ground because they don't give it about people.
1:00
I don't sell courses. I give courses away.
1:03
I think in 20 years when I'm Grant Cardone's age, I think
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I'll have hundreds and hundreds of millions of dollars to just
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triple that stuff. How?
1:11
Welcome back to the Hannah Hammond show.
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I'm here today with Pace More we for podcast #2 and I'm so
1:17
excited. For those who don't know Pace,
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you have over 1,000,000 followers on your social
1:22
accounts. You've built an incredible
1:24
community, one pretty much like I've never seen before, like a
1:28
cult like following. But you just like the MO.
1:30
You actually care about people and what you're building and
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helping people. And I really want to dive into
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that today. But you have half a billion
1:38
dollars of real estate, both commercial and residential real
1:41
estate. You pretty much are the creator
1:44
of creative finance. And I wish I was the creator.
1:47
I wish I was the creator I. The one that people.
1:49
Know, yeah, yeah, I'm the, I probably have popularized it and
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simplified it. And back in 2013 when I got
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started and I started learning creative finance, I was like,
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why doesn't everybody know this? And the person I was learning
2:02
from at the time was like, because nobody can teach this to
2:05
people. And I was like, well, I'm a
2:07
person and if I can, if I can learn how to understand this and
2:10
like communicate in the way that I would need it, I think I could
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normalize this. So my first goal in 2013 was to
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normalize the conversation around creative finance.
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And now you look at companies like Loopnet,
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krexilandwatch.com, all these websites have now taken the
2:24
strategies and the conversations I've had with them and they have
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full on sections on their websites just doing seller
2:29
finance on all these websites. It's the freaking coolest thing
2:31
ever. So yeah, I, I did some cool
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things. I, I would say that like seller
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finance, I didn't invent that. I, I helped perfect it sub 2.
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I did not invent that, but I did perfect it.
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Morby method is a strategy. I did create dating contracts.
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I created a whole bunch of other things I created, but I wouldn't
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have known those without the people before me.
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So like I would say Robert G Allen and a lot of people way
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before me knew way more than I did, and I was just lucky to
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kind of follow in their footsteps well.
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For those who don't know what it is, what is it?
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Creative finance is the ability to buy anything that you want
3:03
without any money of your own, without credit.
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Hell, you don't even need a Social Security number to do
3:08
anything that I'm doing, and without a bank and without a
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license. So what would that mean?
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It'd be like if I want to buy an iPhone, Let's say if I want to
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sell this phone on Craigslist for $1000, I could sell it put
3:19
on Craigslist for 1000 bucks and I'd probably get a lowball offer
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at like 700 bucks, 800 bucks cash, right?
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That's pretty typical. And that's the traditional real
3:27
estate market. You put something on market and
3:28
somebody's going to come in at 2030 forty, 50% lower than what
3:31
you're trying to get it for. And I just go to the person
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says, say, hey, I'll buy that iPhone exactly for what you
3:37
want, but you need to give me payments.
3:39
You need to let me make monthly payments to you.
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That makes sense for me. So I can take this phone and
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give you 1000 bucks, but I'm going to give you $100 a month,
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10 months in a row to get you to that 1000 bucks.
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So giving them terms, that's creative finance.
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And I take this phone and I go make more money with it than the
3:56
$100 cost me. That's what I basically do with
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RV parks, mobile home parks, apartment buildings, contractor
4:01
garages, planes, trains, automobiles, everything you can
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imagine that's so awesome. It's fun.
4:06
And when did you start getting into the commercial side with
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creative finance because you started?
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In way too late. Yeah, way too late.
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Hannah, if I could tell myself one thing, it'd be like, cap
4:15
your single family portfolio at 25 houses.
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Yeah, I was so dumb. How many do you have?
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Do have you started? Selling I hit 300 single family
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homes. That's 275 too many.
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That's a lot. It's a lot.
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It's a lot to manage. It's a lot to manage.
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They're also in 15 different markets.
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So my team hates me. So we're down I think to like
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15160 somewhere in that range. We are selling.
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We just sold like 25 in the last six months and I'm 1030 wanting
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my profits into larger assets like RV parks, mobile home
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parks, etcetera. So I got into commercial stuff
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in 2017 when I was lending money to people who needed money for
4:52
their RV parks. And so I had people that were
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learning from me. They're like, well, I'm going to
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take what you're doing in single family and I'm going to go do it
4:59
in commercial in RV parks. And this person came to me in
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2017. They go, I have a $7,000,000 RV
5:04
park. The seller only wants $100,000
5:07
down payment. Will you lend that $100,000 to
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me? I'm like, hell yeah, great,
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$7,000,000 for only 100. I know I get these all the time.
5:13
It's bonkers. And I could give you guys
5:15
addresses too. If you guys are new to me,
5:17
you're you'll think most of the stuff I say is and I would call
5:21
to go check my addresses, my Huds, my settlement statements,
5:25
I put them online. I prove all this stuff to you.
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I even interview every seller I do a deal with so I can go this
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is the seller. He just sold the property to me
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for $0.00 down 0% interest like crazy stuff.
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So in 2017 I did a loan on a commercial deal and then I was
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able to see the behind the scenes of like how much money
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the RV park was making. I'm like what the F am I doing
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in single family? So I started jumping into
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commercial stuff like 2018. That's so awesome.
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And for the audience, I know we talked about this all the time
5:51
on my show, but if you don't know what a 1031 exchange is,
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it's one of the best parts about real estate because any capital
5:57
gains that you have, you can defer having to pay taxes on
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those capital gains because when you sell the asset, So he just
6:02
sold a bunch of his residential houses, He had big profits on
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those houses. Instead of paying the 21%
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capital gains tax, he just rolled those into another
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purchase of commercial real estate.
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It doesn't have to be the same. It doesn't have to be single
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family home for single family home.
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It's just a real asset for a real asset.
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So you were able to roll those profits into RV parks.
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RV parks and commercial real estate is amazing because it's
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not actually valued off supply and demand like residential.
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Like you can actually force appreciation and know exactly
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how much that value of that property is going to be.
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The only real variable is like market cap rates, but those
6:36
don't shift tremendously. But I'm also not too worried
6:38
about the traditional world of like you look at I just
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interviewed Brandon Turner about his big $15 million loss.
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We saw that. I just had a big Zoom with him
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yesterday. And the biggest challenge he
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dealt with is he bought all of these department buildings with
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traditional real estate or traditional financing that had
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temporary like what I call toxic debt.
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And so you're buying adjustable rates.
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And so rates go up like crazy. So now the assets worth half of
7:00
what it is. But now his debt has an
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expiration date. He's getting toasted, right?
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And he's one of thousands of people, right?
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And so, and by the way, shout out Brandon, he came on this
7:09
interview and was, it was just a great learning lesson for
7:11
everybody. So love Brandon, amazing dude,
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Good, good net positive for this industry.
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He's a good dude. But I don't worry so much about
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cap rates. And the reason being is because
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I work directly with the seller to get my interest rates.
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So when the Fed rate is going up and down and everybody else is
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dealing with what the banks are giving, I'm like, I can, what's
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cool is if I want to get out of an asset, let's say I buy an RV
7:32
park and I get 4% interest with the seller, I can turn around
7:36
and I can resell that park because I can, I now have
7:39
control of the debt at 4%. I can finance my buyer at 6%
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using the seller's 4% note. So I can wrap my own terms on
7:48
top of it and I can resell it to somebody with my own terms and
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make it so like cap rates and whatever is going on.
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The traditional market really doesn't pertain to me if I want
7:55
to do that. But mostly what I'm doing is
7:57
just holding and, you know, keeping them for my legacy and
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all that stuff. Are you doing?
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Yeah, I saw your video on the School of Hard Knocks.
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I know we were both interviewed by him.
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And then I saw your video that you recently posted about.
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You're saying it, you'll have a $300 million portfolio and
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triple net commercial, triple X buildings at in what, 20 years
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or something? Probably like no management, you
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know, kind of Ben Ben Mala style, like just own stuff that
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you don't have to manage. I don't want apartment
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buildings. I, I own 1500 apartment doors.
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My favorite asset that I have is an apartment building in Tucson.
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It's 161 units. I love it.
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But I have 7 employees that run that one asset versus like if on
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my triple net stuff, I have no employees that run that asset.
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Basically my controller, my, the lady in my office, Madison, she
8:42
just collects rent payments, right.
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So I think in 20 years when I'm in my 60s, when I'm Grant
8:48
Cardone's age, I think I'll have, you know, hundreds of
8:52
hundreds of millions of dollars to just triple net stuff.
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Yeah, that's my end game too. I mean, that's the best.
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So if you don't know what triple net is, it's amazing because I
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mean, you they're a little bit more expensive because they're
9:01
truly passive. People say real estate is
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passive. Real estate for the most part is
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not passive unless you're in triple net.
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Like there's man, you just said you have 7 employees to manage
9:10
your apartment complex, right? You get the check every month,
9:13
but you have to manage 7 employees.
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And so same with a single family home.
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Like it's not fully passive. You can put a management company
9:20
in place, but then you always have to end up managing the
9:22
manager, right? Like you really can't just go to
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sleep for 30 years and wake up and all your checks have been
9:27
there, right? Unless it's triple net.
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If it's triple net, that means so think of like a Chick-fil-A,
9:32
a Starbucks, any of the a Walgreens, any of these
9:35
buildings, the tenant will pay all the Nets of the building,
9:38
which is your taxes, your insurance, and your maintenance.
9:41
So basically they own the building, except they.
9:44
Don't and a lot of times they pay for their own improvements
9:46
too. Like you look at Starbucks.
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We own one Starbucks building and I'm, I'm like, I was blown
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away to to learn 10 years ago that Starbucks owns 0 real
9:55
estate. Like they're just leasing from
9:56
people like you and me. And that's might be news for the
9:59
audience, but Starbucks came in, they did the renovation, they
10:03
decorated the way they wanted. They didn't even want an
10:05
allocation of like 10 improvements, right TI So
10:08
sometimes these tenants will ask the landlord, us, hey, I'll rent
10:12
from you for 15 years, but I want you to make this thing look
10:16
the way I want it. Starbucks didn't do that to us.
10:18
They came in, did all the renovation, made our building
10:21
nice, signed a 15 year lease with us.
10:23
And every five years, our rent rate goes up.
10:26
And so that really is a 15 year, I can forget I even own it type
10:30
of type of thing with a corporate guarantee.
10:32
But they are more expensive and your return is a lot lower.
10:36
You're making like 5 to 7% on your money.
10:38
You're not making a lot of money, a lot of money, but
10:40
you're making good money with 0 management.
10:42
So I think it washes out to actually be a better return at
10:45
the end of the day. Right.
10:46
And I mean that's your cap rate. So your cash on cash should be
10:50
higher, but you're still making not a high return even on cash
10:54
on cash, but you still get the depreciation, you get all the
10:57
tax benefits from it, and it's truly passive income.
11:00
And it's just a great way to store wealth that is protected
11:03
from just putting it in the market or things like that.
11:05
So yeah, I. Think I'd like something to say
11:07
to your audience. I'll look directly at you
11:09
audience. When you hear somebody say that
11:11
real estate is not passive, immediately discount everything
11:16
that person says about real estate because real estate is
11:19
passive. You just have to choose what
11:20
asset type to jump into. So triple net leases like Hannah
11:24
saying very passive, like 99.999% passive.
11:28
I would worry less about a triple net lease than a stock
11:31
with NVIDIA. Like truly I own the asset.
11:34
I don't have to worry about what what you know Nvidia's doing and
11:38
looking at the stock price all day long and worrying about
11:40
that. I think you're spending more
11:41
time on just a stock portfolio than you would on a triple net
11:43
lease. So yes, there is passive
11:46
investments. The other one that is very
11:47
passive compared to all of the assets I've owned.
11:51
Contractor garages, super passive.
11:53
Also very close to a triple net lease.
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Another type of passive income is a master lease on single
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family. So for example, I buy a single
12:02
family property, especially the way I do it, I go take over
12:05
somebody's mortgage subject to where I buy something.
12:07
Seller finance and then I sublease it to a silver living
12:10
facility and they do a five year lease.
12:12
Same thing. They pay for every expense and
12:15
they're usually paying two or three times what the regular
12:17
rent rate is. I don't have to deal with
12:18
anything. Zero tenants, zero anything.
12:20
So there are passive investments #1 like king of King of passive
12:27
investments is RV parks as far as I'm concerned because I'm
12:30
renting dirt. Like what am I maintaining
12:33
gravel landscape? And you contract that out.
12:36
You don't have to worry about it.
12:37
I've got an RV park we just closed on called Goldsmith RV
12:40
Park in Goldsmith, Texas. I will literally never go there
12:43
in my entire life. No employees on site.
12:45
It is a check yourself in, check yourself out type of situation.
12:48
It's all ran with AI cameras. So somebody pulls their RV in
12:51
there, they stay for two weeks and it bills them.
12:54
So when they go in and they check in, they get their credit
12:56
card on file and when they leave, they finally get like
12:58
their final bill. It is completely passive and we
13:02
bought that on seller finance. The seller wanted to retire.
13:04
So if somebody tells you that there is no such thing as
13:07
passive investments, stop listening to anything they have
13:09
to say. Right.
13:10
Yeah, because there's so many opportunities for passive and
13:12
then there's also opportunities for semi passive, you know where
13:15
you do have more like the apartment complex that you just
13:17
talked about earlier. And then there's also ground
13:20
leases similar to the RV park style.
13:22
So like your Dutch Bros, your scooters coffees, your bikini
13:27
beans, like a lot of those places, they will come in and
13:29
they'll actually pay to build their own building and they'll
13:32
just do a long term ground lease and you literally just own the
13:34
dirt and you have. I did not know this.
13:37
I learned this from Hannah. Just 10 seconds.
13:39
I didn't know that. I didn't know Bikini beans did.
13:41
That yeah, I'm pretty sure that's cool.
13:42
Don't quote me on that, because I don't.
13:44
Know the but if Dutch Bros is doing that too, that's cool.
13:47
Yeah, yeah. So you basically you find good
13:48
dirt and what a lot of developers will do is they'll
13:50
buy these like retail centers and then they'll, you know,
13:54
carve out a pad that's like a main and main pads with good
13:57
frontage. And it just needs to be a little
13:59
tiny piece of dirt. And then these Dutch Bros will
14:02
build like a, I don't know the exact number, but a small
14:04
building. They'll build a very small
14:05
building and they pay for the bill.
14:07
They build it exactly how they want it because businesses,
14:10
unlike McDonald's, McDonald's is in the real estate business.
14:12
But most businesses like Starbucks, Dutch Bros, these
14:15
types of companies, they don't want to invest all their money
14:18
and buying very expensive real estate.
14:20
They want to invest their money on getting their locations
14:22
everywhere that they possibly can in the country or the world,
14:24
whatever their their model is. And so the ground lease model is
14:27
super efficient for them because then they only have to pay for
14:30
the small building to be put up and then they have a long term
14:32
lease in place and they don't have to pay for that premium.
14:35
And then that is again, truly 100% passive.
14:38
You just own the dirt and then you can when their lease is up
14:42
and these are usually really long term leases.
14:44
When their lease is up, they can either renew it and you can
14:46
renegotiate or it can be a second Gen. coffee building.
14:49
Or you can just tear it down and and do it again with a new
14:51
concept and the the next tenant will come in and build their own
14:54
new concept and the the. Possibility of loss on a triple
14:58
net lease let's say with the Starbucks is almost 0 versus
15:01
let's say I'm an LP or limited partner in somebody else's
15:04
investment. I decide, hey, I want to invest
15:05
in somebody's multi family deal. I throw 100 grand into their
15:08
deal. Yeah, it's pretty passive,
15:10
right? Somebody else is operating the
15:12
asset, somebody else is managing the employee, somebody else is
15:14
doing all of that kind of stuff. But there's a likelihood of
15:17
loss. Probably, you know, you have a
15:18
20% chance of losing your money. I that's a made-up number, but
15:21
somewhere around there, whereas a triple net lease, you got a
15:24
corporate guarantee from Starbucks that they're going to
15:27
pay their rent. And if they don't and they
15:29
decide to cancel the lease, they'll pay you for the
15:32
remaining balance of the entire 15 years because they give you a
15:35
corporate guarantee on 15 years, which is insane.
15:38
And so 1 does not start in triple net lease typically.
15:43
Usually we start in like a single family atmosphere or an
15:46
easier commercial kind of space. You don't start in triple net
15:51
lease because you can't really raise money around it because it
15:54
doesn't give enough returns for investors.
15:57
You can, but I'm just saying typically people are going after
16:00
things that they can force a lot more appreciation like apartment
16:02
buildings and whatever else. So.
16:04
Yeah, exactly. But it's kind of the end all be
16:06
all once you have enough wealth and you want to preserve the
16:09
wealth and you want truly, truly.
16:11
Yeah, you want to be lazy. Yep, exactly.
16:13
It's awesome. I know my company because I have
16:15
the finance company, HP Capital, my executive managing director,
16:19
he's been a, you know, the best in, in triple net lease is
16:23
forever. So we finance those and it's
16:24
really cool because if you're a developer and you find a really
16:27
good piece of dirt or you find a center where you could carve out
16:30
a good piece of dirt, banks will lend 9000% on those because you
16:34
already, if you already identify a tenant and it's a Starbucks or
16:36
a corporate backed tenant, they're like, yeah, we'll fund
16:38
the, the build on this and then you can build it.
16:40
And that's where the upside lays in the development of it.
16:43
But yeah, if you're just going and buying something that
16:45
already has a triple net lease in place, then you're you're
16:48
more wealth preservation and. Yeah, you look on like
16:50
krexy.com, there's a lot of triple net lease type of deals
16:53
out there where people will go do the development, force the
16:55
growth and then sell the thing to you for cash knowing that
16:58
you're either a 10/31 buyer or you're preservation buyer saying
17:02
I'm just preserving my wealth. You're not going to make a lot
17:04
of money on those things. But you know what, it's going to
17:06
be a lot better than losing your money in the stock market or
17:08
you're going to lose your money somewhere else.
17:10
It's a lot less of a gamble and a lot more guaranteed.
17:12
And you get the tax advantages, which is amazing in the stock
17:16
market. So yeah, triple net is amazing.
17:21
And small Bay industrial like you were talking about is
17:23
amazing too because it's so little TI, right?
17:26
It's like a a box. It's a concrete box with a
17:28
little office component. And that's the thing that has
17:32
the least amount of risk towards from AI.
17:35
And same with RV parks. Like that's experiential, right?
17:37
It's. Experiential and also blue
17:40
collar workers. So like the oil field for
17:42
example. I own half of my RV parks are in
17:44
the oil field. So like Odessa, TX, Big Spring,
17:47
TX at Lubbock, Amarillo, all of those areas, I've got a bunch of
17:51
RV parks and these oil field companies come in to rent out my
17:55
spots for five years at a time. They go, hey, we want our people
17:57
to be able to be able to live here because these towns cannot
18:01
support the housing that is usually temporary employees that
18:04
are coming and going, coming and going.
18:05
And so it, there's a lot of different types of RV parks, but
18:08
yes, even the recreational ones that I own in Montana or the one
18:12
I own in New York or California, those are people that are
18:16
traveling with their family or what's happening now, like huge
18:20
because of Starlink. Dude, shout out Elon Musk.
18:22
Holy, that guy is the best. He made Internet so fast that
18:27
now people that are working from home are like, I'm just going to
18:30
work from an RV. I'm going to go travel every 30
18:32
days. I'm going to go visit a new
18:33
place and live in a National Park and, you know, telework and
18:37
whatever. And so I'd say 30% of my RV park
18:40
tenants now are living in their RV's, are working from the road.
18:44
And so it's experiential, but they're also out there working
18:46
and raising their families on like homeschooling.
18:48
Homeschooling is like surging as well.
18:50
And it's affordable housing. Like think about this, if I'm a
18:53
family of two kids, husband, wife, type of scenario, one dog,
18:58
I'm renting a house for 2500 bucks a month, something like
19:00
that. And it's, you know, of course
19:02
going to be a lot more expensive as well. 2500 bucks plus
19:05
maintenance plus utilities. You can rent an entire piece of
19:08
dirt from me in a cute little park that's near a National
19:12
Park, utilities included, sewer included, Internet, everything
19:15
included and a couple of like amenities.
19:18
You're like 800 bucks a month. So it solves affordability as
19:22
well. So even I think, I don't know, I
19:26
think what's going to happen in the next five to seven years is
19:28
people's jobs. Like I'm so deathly afraid of it
19:32
that I'm like trying to get out of anything luxury related,
19:34
anything that's going to be hammered by AI.
19:36
I'm trying to go into anything that's affordable housing, so
19:39
mobile home parks a lot more of, RV parks a lot more of.
19:42
And then you can have Grant Cardone, good friend of mine, he
19:44
can go do the A class luxury stuff because that's needed as
19:47
well. The rich are going to get rich
19:48
richer and the poor are going to get poorer.
19:50
I'm focusing more on the poor people like RV parks, mobile
19:52
home parks. Yeah, I mean, the wealth gap is
19:55
huge, huge. And AI is going to take out a
19:57
lot of jobs. Yeah, like, do you ever sit
20:00
there? You go to dinner.
20:01
Last night you were dinner in Scottsdale.
20:02
And you look at these bills like I'm the guy that always pays the
20:04
bill. Yeah, it's insane.
20:06
I'm like how does anybody normal live life?
20:09
My valet was $70 exactly. It was $60.00 plus tip for a
20:14
valet and. You're just like F what the F?
20:16
Like how do normal people live? Well, they don't live the way
20:19
her and I live. So like my son is currently
20:22
flying planes. OK.
20:23
And I'm I just got him licensed. He's just turned 18, just
20:26
graduated high school and I go, I don't want you to go to
20:29
college. And he was doing real estate
20:30
deals with me when he was 1516. And so he has some passive
20:33
income coming in on off a couple of Airbnb zones.
20:37
So he's never had to work. But I'm like, OK, well, you need
20:39
a career. Do you want to jump into real
20:40
estate? Do you want to do stuff with me?
20:41
He's like, I don't know, I don't know, I don't know.
20:43
I'm like, all right, I'm not going to drag you, but you're
20:45
not getting a job because I don't want you to learn how to
20:47
do a 95 job. So I go, you need to be a pilot
20:51
because at the time I was learning how to fly and until
20:54
you tell me there's something cooler than being a pilot when
20:56
you come to me and say there's a better idea, then you can get
20:59
out. So I get him into doing this and
21:02
I look at my bill every month for paying for his flight
21:04
lessons and rental the plane. And I'm like, how can anybody
21:09
afford to have a child? Like you want your child to go
21:12
to college, You want your child to do anything and you got to
21:14
pay for that kid. Like holy crap.
21:17
The other day he went and flew in Scottsdale Airpark.
21:20
He flew for two hours and it cost me three, 3000 bucks.
21:24
They have to get like 1000 hours to get a job.
21:26
So like, think about that. I got to spend almost $1,000,000
21:30
on flight lessons just to get the kid to go get a job.
21:32
That's insane. It's insane.
21:34
So look, I know that's not everybody.
21:35
I'm just saying everything super, super expensive.
21:37
And so the point is the wealth gap is getting bigger and
21:40
bigger. So either A, focus on the ultra
21:42
wealthy or B, focus on the affordability.
21:45
One of the things I made a mistake on, going back to why we
21:47
got into this conversation, is I bought too many regular rentals
21:51
that were working class, like regular middle class rentals.
21:55
And that's a really hard target market.
21:57
Like it's really hard. They can't afford rents, They
21:59
can't afford their mortgage. And so people are downsizing or
22:02
people are like, I'm getting the hell out of here and they're
22:03
going into ultra luxury or they're, you know, buying up.
22:07
And that middle gap is just getting smaller and smaller and
22:10
smaller. Like it The gap is getting
22:11
bigger, but that group of people is getting smaller.
22:13
Yeah, I know. I have friends out here in in
22:15
the Phoenix market that are flippers and that middle market
22:17
is just sitting. I have my friend Macy's, I think
22:20
she's had one on the market for like a year.
22:22
And it's not an expensive house and it's not a super cheap
22:24
house. It's just right there in the
22:25
middle. Yeah.
22:25
Like 45550, like I have four or five flips on the market right
22:29
now too. I flip on the side as like a
22:32
side, not a side hustle. I just have always flipped and
22:35
I've always had crews and people for 15 years.
22:39
And so I've never turned that off.
22:40
And so I have a team that's always running that.
22:41
We do probably 10 to 20 flips a year depending on same thing.
22:45
Dude. I'm refinancing and and holding
22:48
them as rentals because I'm like I can't sell them or I'm selling
22:51
them on lease options so I can at least get people in there and
22:54
like start making payments because I've got 5 flips that
22:57
comped out perfect. They're just sitting in.
22:59
Meanwhile my luxury flip sold in a day and my ultra cheap like
23:02
mobile home stuff sells in a day.
23:04
The middle market is just sitting.
23:06
That's the same price point she's in.
23:08
Yeah, it's, it's terrible. And we thought it was safe
23:11
because you're like, we'll stay at the like average purchase
23:13
price of Phoenix, AZ, which is like 425.
23:15
Yeah, 3 bed, 2 bath, safe middle market.
23:18
Safe bro. No it ain't safe.
23:20
A catering to the middle class is not safe.
23:23
And it's, it's, and then back to the affordability thing, like
23:25
both. And that's exactly how I feel
23:27
like too. I'm like, I, you know, I, I make
23:30
top one percentile right money. And I'm like, I don't feel like
23:34
I'm just loaded in cash, swimming in cash, you know?
23:37
And so I'm like, I don't know how people actually survive and
23:41
have kids. And actually I just read
23:42
something that the birth rates are way down because people are
23:45
like, I can't afford to have children.
23:47
And then yeah, it's just, it's super sad, but to real estate,
23:51
you know, to the investments, I think just just like you said,
23:53
to focus either on ultra luxury or affordable housing is going
23:57
to be important. And then you talk about, you
23:58
know, parents go spend $1,000,000 on their kids go to
24:01
flight school or to get their medical degree or whatever.
24:03
And then you don't know if in a few years planes will be auto
24:06
flying, which they probably will, and surgery will be done
24:09
by robots, which it probably will.
24:11
And so it's like really scary right now if OK, This is why
24:14
it's so important to invest in assets, to invest in real
24:16
estate, because regardless of what happens with AI, everybody
24:19
will still need a place to live. It's probably going to be a
24:22
pretty big gap of either like affordability or extreme luxury
24:25
until hopefully Elon's prediction comes through where
24:28
we have like extreme abundance I.
24:30
Don't see how that's possible. But he's never, he's not wrong
24:32
often. So I don't see how, I don't see
24:34
how it's possible. And I'm praying like here's how
24:37
worried I am. So I have hundreds of hundreds
24:39
of employees and a bunch of companies.
24:41
I've got a company right now that I'm launching here locally
24:44
that I'm like, this is a complete gamble.
24:46
And the gamble is it's a franchise that I bought called
24:49
Fun Box. So it's like for kids that jump
24:51
around on these like big bouncy house type of things, but it's
24:54
indoors and they're huge and they generate about $3,000,000
24:58
top line a year and I will end up netting probably 6 or
25:02
$700,000 a year. They're really good businesses
25:05
to own. And I'm buying two of them right
25:08
now, one in Paradise Valley and one in Goodyear.
25:11
And I'm like, how are people going to afford this in three
25:14
years, five years, when half people are lost, have lost their
25:16
jobs? And everybody keeps telling me,
25:18
well, jobs are going to be created.
25:20
What jobs are going to be create?
25:23
Please convince me like garbage truck people gone.
25:27
A robot can do that. Barbers I think will stick
25:30
around. I think most everybody else is
25:34
gone. Like I've downsized.
25:35
Even my office, we have less employees than we did two years
25:38
ago. We have twice as much production
25:40
with 20% less people. So I look at it and go, I'm
25:43
really worried about this. So I'm gambling on some things,
25:46
other things I'm not. I'm going affordable housing,
25:48
affordable housing, affordable housing is probably 80% of what
25:51
I'm focusing on. And then I'm gambling on the
25:53
other 20%. Like I, I don't know if fun box
25:56
is going to stick around. It could just people go, I can't
25:58
afford to have my kids have a birthday party at a bouncy house
26:00
thing like I could. Those businesses could fall
26:02
apart. I know it's scary.
26:05
It is really scary. Yeah, so don't have kids.
26:08
Just kidding. Don't have kids and buy assets.
26:10
Yeah, even me, like I, you know, I have a responsibility beyond
26:13
my wife and my kids. I have a responsibility for my
26:16
employees. And so I looked at my core team.
26:18
I have a core team of like 12 women and we are buying a
26:23
wedding venue, RV parks. We're buying cool things that
26:26
are actually making money. And my goal with them is to say,
26:29
hey, guys, in three years, I want these things making enough
26:31
money that we all profit share and you don't have to work
26:34
anymore because I am actually worried about your job.
26:37
And I'm telling them honestly, like I'm worried about your job
26:39
in three to five years. And I think Elon, maybe his
26:44
prediction will be correct in 10 years, but what happens between
26:47
year 3? Chaos.
26:49
To year 9. Absolute dystopian.
26:51
Holy. Nobody has a job.
26:53
The government's printing Ubi checks.
26:55
That's what I think is going to happen.
26:57
I agree it's got it's not going to be a smooth road to
27:00
abundance. We, I mean, I, I pray and hope
27:03
that that is a reality that happens in the future, but it
27:05
definitely isn't going to be tomorrow.
27:06
And people need to actually not just think, oh, everything is
27:10
going to be OK and everything is going to work out because it's
27:13
so true. I mean, unless you're in a
27:15
Barber or a plumber or HVAC or electrician, electrician, until
27:18
robots take that over all the other stuff and let you know
27:21
it's just leading AI. That's really what it is, is
27:24
sales relationships and managing AI and but AI can even start
27:29
like manage itself, it can fix itself, load itself and start to
27:31
do all those. Things I was, so here's a here's
27:34
a tip for everybody. Yesterday I go to pick up some
27:36
upholstery that I had to redone. OK, I had this, I had this couch
27:39
in the backyard. Arizona just beats our stuff up
27:41
and I went down to this upholstery company.
27:45
I could have had my housekeeper do this, but I'm like, I want to
27:47
go check out this upholstery company and see how big they
27:49
are. So I go down there like 2 miles
27:51
away. I drop off my couch cushions to
27:53
get reupholstered and it's one guy, he's been doing it for 40
27:57
years in this teeny little building.
27:59
And I go in there and I go, how much for the thing I like?
28:01
What do you think this will cost?
28:02
He goes like 1200 bucks in labor, $500 in material tax,
28:05
blah blah, you're 1800 bucks. I go, OK, whatever, cool.
28:08
I go, how much you going to make on this?
28:10
He goes, I'll make 1000 bucks like take home and I go, how
28:13
long will this take you guys? 3 hours.
28:15
I'm like, OK, that's pretty good. 300 bucks an hour that
28:17
you're actually working. I go, how long you been doing
28:19
it? 40 years.
28:20
Are you going to sell this? Because nobody, nobody wants to
28:23
sell. I've tried to sell this company.
28:25
I've put it on biz buy, sell. I've had brokers try and promote
28:27
this thing. I take home 400 grand a year.
28:29
I work 3 hours a day and nobody wants to buy this business from
28:32
me. I'm like, what the hell?
28:35
Like that is not a company that's going to be taken over by
28:37
AI or robots because you've got these intricate situations,
28:41
right? If it's duplicatable over and
28:43
over and over. If he was doing upholstery on
28:45
the same couch cushion every single day, then yes, he'd be at
28:48
risk. But he's got people coming and
28:50
going. Hey, this couch cushion, this
28:52
pillow, this thing, my car seat has a RIP in it.
28:54
My boat thing has a RIP, my RV. So it's very custom.
28:59
Every single job is a custom job.
29:01
And so it's an art that cannot be replaced by AI or robot.
29:05
Maybe at some point in 50 years, I don't know, 20 years,
29:07
whatever. But I look at this, I'm like,
29:09
why is that? Some young kid not buying this
29:12
company? And he goes, well, to make
29:14
matters worse, I want you to know I bought this with $0.00
29:18
down. I bought this company on seller
29:19
finance 40 years ago and I've offered zero down seller finance
29:23
and still I cannot sell the company.
29:26
Jeez. And I'm like, Oh my gosh, it's
29:29
too small of a company for me to buy.
29:30
But I went and put it online and he sent me a text and he goes, I
29:34
got like 30 people wanting to buy the company.
29:35
I'm like, the problem is people just don't want to go and do the
29:37
work. They don't want to go out and
29:38
find the company or the commercial asset or the RV park.
29:41
They don't want to go find it. They don't want to do any of
29:43
that work. They want to just consume more
29:45
content. And they're stuck in this like,
29:47
I don't know, this world of thinking if I dream about it
29:51
hard enough, it's going to happen.
29:52
Meanwhile, you go to the dry cleaner, you go to the car wash,
29:55
you go to the upholstery company, you go to the RV parks
29:58
when you're vacationing. All of these people want to
30:00
retire and they all want a monthly payment after they
30:02
retire. Like, there's so many ways to go
30:04
out and win and buy assets right now and people just aren't
30:07
doing. I don't get it.
30:09
Because they're lazy, they don't, you know, they wanted to
30:11
drop in their lap, which is a perfect segue into your
30:14
community. I want to really dive into how
30:16
you built that community and how how it's been so impactful in
30:19
your business and the importance of like being in the business of
30:22
trust, right? And and being able to market.
30:24
Like, just like you said, it's not that nobody wants to buy the
30:26
company, it's that it wasn't being marketed to the right
30:29
people and normal people. They don't want to go out there
30:32
and do the legwork and they don't trust it like they trust
30:36
you. So if you post something,
30:38
they're like, I trust pace. I should look at this business.
30:41
But if it's just some random posting on Craigslist or biz
30:44
buy, sell or whatever Facebook marketplace, they're like, I
30:47
don't know this guy. What if I get screwed over?
30:49
And there's a lot of stories where people get screwed over
30:51
and selling businesses and all that stuff.
30:53
So what, when did you start the community?
30:56
How has it impacted your life and your business?
30:59
And what then we'll dive into like some of the lessons learned
31:03
from just building your, I mean, you've done crazy things.
31:06
You and Jamil traveled, I think 50 states in 50 days.
31:09
And we're teaching for free about creative finance.
31:13
And like all these different cities.
31:14
It's like, it's like, I want to just dive fully into your
31:17
community and how because you built it so fast, how many
31:19
people are in your community now?
31:21
Paid people in the community and then I have like a free Facebook
31:25
group with you know 200,000 and then you know millions of
31:28
subscribers on other stuff but I don't consider people that are
31:31
subscribers my community those are just an audience community
31:35
is like a private vetted group of people that are actively
31:38
doing deals with each other and people will go oh, it's my
31:41
school community meanwhile they're just like getting
31:42
information from you. I don't think that's a
31:44
community. I think that's an HOAI think if
31:47
you anyway, So I got a lot of opinions about the stuff, but it
31:51
was 2015. I got screwed over on a deal
31:54
from somebody on bigger pockets and I love bigger pockets.
31:58
I have their most popular book that has that they've ever
32:01
launched and I love them in the collaboration with them has been
32:03
amazing. So I'm not criticizing them.
32:05
But at the time in 2015, the only community was bigger
32:08
pockets forums and it's full of just license.
32:11
Sorry, I'm not a license agent and I'm not a broker.
32:14
Nothing wrong with them. I love doing deals with them,
32:17
but I just think that they sometimes get very
32:18
self-righteous and they think everybody should be them and be
32:21
on underneath their downline and all that kind of stuff.
32:23
I wasn't built to be a licensed person.
32:25
I just wasn't So. And I would say the same thing
32:29
about some of your other guests like Cody Sperber and some other
32:31
people just never built to be that.
32:32
Like we're just deal finders, right?
32:34
So 2015 I get a call from a seller.
32:38
This is a this is a 3 minute story.
32:40
OK, get a call from a seller. And this is where the community
32:43
thought process came from of why I was like I'm going to build
32:47
something nobody else has ever built before.
32:49
It was actually out of anger and spite.
32:51
It wasn't like I was motivated to do as pissed off.
32:55
So I get a call from a seller. He lives in Colorado, deal is in
32:58
Phoenix, AZ. It's a second home.
33:00
His wife has cancer. They're not going to vacation
33:02
there anymore. Hey, let's work out a price.
33:04
I work out a price. It's Tuesday.
33:06
He says, well, yeah, no problem. Let's just get face to face.
33:09
Let's sign the contract and let's get the deal done.
33:13
And he goes, if you and I don't get this deal done face to face
33:16
by Friday at 5:00, I'm going to sign with this other person
33:19
that's in my family that I've already committed to.
33:21
And, you know, he has a family member that's been on vacation
33:24
there with him. And he's like, I want that
33:25
property, Sam. Please sell that property to me,
33:28
Sam. I I want it, Sam.
33:29
He's like, hold on. So he pushed that kid off till
33:32
5:00 Friday and then I go no problem, I'll just send over a
33:36
DocuSign, we'll get this deal done.
33:37
Why do I need till Friday? Like here's the DocuSign.
33:39
He goes am I doing the deal with DocuSign?
33:43
Like like no, he goes then I'm not signing on DocuSign.
33:46
I go OK no problem, I'll just sell, send a mobile notary.
33:49
He goes, am I doing the deal with a mobile notary?
33:52
Like bro, like I've never had never before and never
33:55
afterwards if I ever had a seller so hell bent on seeing me
33:58
face to face to sign a contract. And so I go, no, you're not
34:03
doing a deal with the mobile mobile nerd.
34:04
He goes, well, I suggest you get your ass up to Colorado and we
34:07
figure out man to man sign this contract.
34:09
It's my family's vacation home. It's important to me that I'm
34:12
doing business with somebody. I can see he's an older guy.
34:15
I go, OK, great. So I'm like, dude, I, I already
34:18
plan on wholesaling this deal anyway.
34:21
It's only going to be a $20,000 profit.
34:23
I'm not going to go freaking fly up there.
34:25
That's crazy. So what I do is I go on Bigger
34:27
Pockets and they make a post and I go, hey guys, I have somebody
34:29
in Colorado. I'm looking for somebody to help
34:31
me in Colorado. And I'm sitting there like
34:34
gambling on putting this information out there.
34:38
And all I did was just get criticized in the comments
34:41
saying get a license, all this BS.
34:44
And I'm like, all right, whatever, but I'd put my e-mail
34:46
in there. So Thursday morning I get a call
34:48
from a guy and his name is Steve.
34:50
And Steve says, hey, I saw your post, I live really close to
34:54
this guy. I can go sign the deal and we
34:57
can JV joint venture on the deal.
34:58
Let's sign up a temporary partnership agreement called the
35:00
joint venture for those of you out there and I'll do the thing.
35:04
I'll meet the seller and we can just share the profit.
35:06
You make 10, I make 10. Cool.
35:07
And I already had a buyer lined up.
35:08
So like this was easy for Steve to just make this money.
35:12
So he I give him the information, call the seller,
35:15
set up the appointment 2:00 in the afternoon Thursday, and then
35:19
what ends up happening is I don't ever hear from Steve
35:21
again. He blocks his phone number.
35:23
What's he do? Buy the deal.
35:24
Son of a Here's what happens. The seller calls me like 6:00 at
35:30
night Thursday, and he goes, hey, so Steve just left the
35:35
house and he brought a screenshot of your post on
35:42
Bigger Pockets to prove that you guys were not partners.
35:47
Like, what a piece of wow. But that's not rare.
35:52
Yeah, that's common bullshit in this real estate industry or
35:54
anything. It's like humans being human
35:56
bull, Right? And I've never been that way.
35:58
I'm always collaborative. I'm like, whatever resource you
36:00
need, it's whatever I have is yours, right?
36:02
And I know you're the. Same.
36:03
It's abundance versus scarcity. It is abundance versus scarcity.
36:06
You're right. And it's like, you see, like I'm
36:08
looking at this wall with like a lot of the guests that have been
36:11
in the show, like I'm friends with literally all of those
36:14
people, right? I'm not a competitive person.
36:16
I've like, if you look at my characteristics, my competitive
36:19
characteristic is 34th out of 34 characteristics in my
36:23
personality type. I could not give a about winning
36:26
a deal or winning over somebody else.
36:28
So it's hard for me to understand this about people.
36:30
But the seller calls me and I'm like, OK, well, congratulations.
36:33
You sold the deal to to Steve And he goes, I didn't sell the
36:36
deal with Steve. I told you, you had till Friday
36:38
at 5:00 PM. And if you don't get your ass
36:41
here, I am going to sell it to either my nephew or I'm going to
36:43
sell it to Steve. So I'm like, Oh my gosh, what I
36:46
do, I look at flights and my gosh, no flight there.
36:50
This before I could afford charter or whatever else.
36:53
And I didn't even know how to look up charter at the time.
36:56
And so you know what I did? I jumped in my Prius and I drove
36:58
all the way up from Phoenix to all the way up to Denver.
37:01
I drove all night long around the clock.
37:04
I get there like 4:00 in the afternoon.
37:07
I barely make it in time. Get the contract signed, shake
37:09
the guy's hand. And as I'm leaving the house, I,
37:13
this guy lives on like 100 acres.
37:15
As I'm leaving the house, there's this truck driving down
37:18
the road that's like billowing up dust behind it because he's
37:21
driving so fast. And I'm like, oh, it's Steve.
37:25
He's going to come and beat my ass.
37:27
You know what I'm like, I'm a small guy.
37:28
I'm not Cody Sperber. I'm not 6 foot 7.
37:32
I'll freaking take this guy down.
37:34
Son of a well, anyway, the guy jumps out of the truck, comes
37:38
rushing over to me, puts his hand out to shake my hand.
37:41
And I'm like who, who, what the hell is going on?
37:44
He goes, I'm Sam's son and my dad was telling me about what's
37:48
going on with you and Steve and how Steve was backstabbing you.
37:51
And he says, well, I, I asked my dad, do you think Pace is
37:55
actually going to show up or you going to sell it to, to our
37:57
nephew? And he goes, I think Pace is
37:59
going to show up. And I told my dad, there's no
38:01
way that you're going to show up, otherwise you wouldn't have
38:03
found Steve in the 1st place to get screwed over.
38:06
And you proved me wrong. You showed up, you drove through
38:08
the night, you signed this deal. I just want to shake your hand
38:10
and say I was wrong. I was like, wow, what a cool
38:12
feeling. Anyway, so now I've got a long
38:15
drive home and I just gone through this little like
38:18
emotional roller coaster. I got this deal.
38:21
I'm going to make 20 grand on it.
38:22
And I'm like, yeah, that's right.
38:23
You son of Steve. F you Steve and son of a Steve.
38:27
And after that anger kind of died down, I had a 12 hour drive
38:30
to get home. And I was like, why is the
38:33
industry like this? Why is everybody so competitive?
38:36
Why can't we collaborate? Why can't I go put a post
38:39
somewhere in New York City and I have somebody else go on the
38:43
appointment for me. I have somebody else go do the
38:45
transaction coordination. I have somebody else lend the
38:46
money on the deal. And I dreamt of this incredible
38:49
community that was more like an economy where 50 different
38:53
personality types could converge and do deals with each other.
38:55
Because think about a real estate transaction.
38:57
You got private money lenders. You got the person that found
38:59
the deal, you got the wholesaler, you got the
39:01
transaction coordinator, you got the escrow officer.
39:03
You got all these people that do things differently.
39:05
You got the contractor, you got the project manager.
39:07
And I'm like, how can I create something where literally
39:10
everybody makes money together and I build a real economy?
39:13
And I had this goal. I was like, I know that I will
39:16
be successful if I built a private economy that does a
39:19
billion dollars a year in transactions.
39:21
And last year we did $25 billion in transactions.
39:25
Insane, insane. So thank you Steve.
39:28
And also at the same time, screw you Steve.
39:30
So that's that was in 2018 ish and I didn't know how to build a
39:37
community. Nobody was talking about it.
39:38
Nobody like everybody now uses the word community.
39:42
Nobody, literally nobody but churches were using the word
39:45
community. I was cringe worthy talking
39:48
about I'm building a community, not a coaching program, not a
39:50
mentorship. And it wasn't until like 2021
39:52
when Alex or Mosey like bought school and started saying school
39:56
community. He's I have a screenshot.
39:58
I posted it. It's like sitting on my desktop.
40:01
He says he sends me a text. He goes brother, you figure you
40:05
crack the code. The word is community.
40:08
And so people started taking this word community.
40:10
And Alex took this and I, I'm grateful he gave me credit for
40:13
it. He sent me this nice text, but
40:15
he was like, you figured it out. And how he knew I'd figured it
40:18
out was he had a member in one of his masterminds join sub two,
40:21
my community that went back to Alex and said, Alex Pace is
40:24
doing something different than anybody else.
40:26
You got to copy what he's doing. We thought you were the best.
40:29
Pace is doing things that you're not doing.
40:31
And so Alex and I became friends back in 2021-2022 time frame
40:36
because of this. And so here's what happened.
40:40
I didn't know how to build it. So what I did is I just go
40:43
Instagram stories, Anybody that wants to come hang out with me,
40:46
I'm going to do these like F Steve, ride alongs.
40:50
You meet me at Circle K on Saturday morning at 6:00 AM.
40:52
Anybody that wants to jump in my Prius, I'll take you on
40:54
appointments, I'll go to projects, I'll show you where
40:57
the lead came from. I'll take you into the business.
40:59
I'll let you smell the cat piss. I'll let you see the
41:01
cockroaches. I'll let you see the whole
41:03
entire business. If I'm meeting my attorney that
41:05
day, you can hear any conversation that I have with my
41:07
attorney. If I'm meeting with my private
41:08
money lenders, I'll let you have my private money lenders names
41:10
even at the risk of you stealing my private money lenders, I'll
41:13
walk you through everything. The first day I did this, nobody
41:17
shows up. I don't have a brand and at this
41:18
time, 2017, 18, I don't have a brand.
41:21
Like locally, people knew who I was because I was doing a lot of
41:23
deals, but nobody nationally knew who I was.
41:26
And so nobody showed up the first time.
41:29
But that didn't stop me. What I did is I took like selfie
41:31
photos of myself and I put them on Instagram stores.
41:33
Like man, the people in my Prius right now are getting so much
41:36
value. So the next week, OK, I did it
41:39
again and Debbie Lou, Scott Garcia and and Tim Smith, three
41:44
people showed up. They're all now worth multi,
41:46
multi, multi millions of dollars.
41:48
And I took them on their first appointment and they were like,
41:52
this changed our life. First off, the lady, the first
41:55
appointment I ever took them to also first time I've ever seen
41:57
this happen. Lady answers the door full
41:59
naked, 350 like full naked. And she has Crocs on.
42:03
OK, she's wearing Crocs. We I'm like, what the and I've
42:06
got three people I've never met before.
42:09
I picked up like, think about this.
42:11
You're in my car. Oh my God, you're in my car for
42:14
the first time. You just meet me for the first
42:16
time at a circle kit 6:00 in the morning at a gas station and the
42:19
1st place I take you to. The lady answers the door naked
42:22
and Crocs. I can't get the image out it's.
42:25
So bad dude, it's so bad. So we go into the appointment
42:28
because the lady's like come on in.
42:29
I'm like what the fudge? She sits down.
42:33
I signed the deal. I still own the house to this to
42:35
this day. I bought it sub two, saved the
42:37
lady from foreclosure. I sold it on the lease option.
42:39
It's up in like Whitman area and her daughter came out.
42:43
I was like, mom, are you not going to tell them that you're a
42:45
nudist? And like this is like blah,
42:46
blah, blah. Did you not tell them?
42:47
She's like, no, I don't need to tell people.
42:48
This is my body. And there's like the weirdest
42:50
appointment. And I was like, I questioned
42:52
myself, should I keep doing this?
42:54
But on the, on the drive home, Debbie and Scott and and Tim,
42:58
we're all like, we've paid 50,000 in education, 100,000 in
43:02
education. This three hours that we just
43:04
spent with you was worth all of that times 10.
43:07
I was like, how do I do more of this?
43:09
And so I started doing a lot more of this.
43:11
And the next week at Circle K, 63 people showed up at Circle K
43:15
parking lot because Debbie Lou and Scott Garcia were talking
43:17
about it. And, and Circle came, came
43:20
outside and was like, what the hell are you doing?
43:23
Who are you? Do you not have a place to work?
43:25
I was like, yeah, actually I do have an office.
43:27
I, I, I don't know why I was doing Circle Ki.
43:29
Do know why I would just stop there before I went out on my
43:32
appointment. So I started doing a Friday
43:34
event every single Friday where I would just I bought this 26
43:38
foot whiteboard. I had a custom built whiteboard
43:40
26 feet from one door jam to another door jam.
43:43
And I had this thing built in and seven people had to carry
43:45
this thing. It was so big.
43:47
And I just started telling people, whatever questions you
43:50
have from 8:00 in the morning till 8:00 at night, I'm going to
43:52
answer your questions. We're going to answer the the
43:54
questions on this whiteboard. We're going to fill up the whole
43:56
whiteboard. And I would do this month in and
43:59
month out and next thing you know, 34500 people are showing
44:02
up to my parking lot. We had Taco trucks and all sorts
44:04
of things. And then it just went crazy and
44:08
I was like, I can't handle this. Meaning I can't answer the same
44:12
question 50 more times. I need to create something that
44:16
actually helps these people when I'm not available.
44:19
And so I built a free Facebook group and I would then that
44:23
skilled my ability to organize my questions and answers and all
44:26
of these things. And then about a year and a half
44:29
later, these meetups were getting so big that I couldn't
44:31
do them anymore. They were so big I couldn't even
44:33
do a pop up event without 300 people showing up.
44:35
It was just wild. And you weren't charging for
44:38
anything. Nothing, Zero.
44:39
And then my my partner today, Josiah Grimes, calls me up and
44:44
he goes, hey, so you should have a coaching product.
44:47
I go, I'll never have a coaching product because I was burned by
44:50
a coach. I had a guy charge me, his name
44:52
is Johns, charged me $47,500 and screwed me over.
44:56
Did hadn't done a deal in 10 years.
44:58
And I was just disgusted by that business, you know, and I think
45:01
we all kind of have that discussed.
45:03
And so a lot of people are like, oh, pay sales courses.
45:05
I don't sell courses. I give courses away because I
45:08
feel like information is not the thing you need.
45:10
I think real community with real people is what you need.
45:12
So Josiah came to me in 2019. We should launch something of
45:16
Nope, not going to do anything. He goes, dude, you're changing
45:19
the world, but you need to scale this in a way.
45:21
And he goes, I can bring a team behind you and I can fulfill
45:25
your vision. I go, my vision is to build the
45:26
only community that exists in real estate.
45:29
And it's a real community where everybody from diverse
45:32
backgrounds globally, locally, different age groups, different
45:36
colors, sex, everything, everybody meshes together.
45:40
Want to build a real community? And he's like, I don't even know
45:42
what that means, but I'll help you build it.
45:44
So we launched in June of 2020 and we have we're the largest
45:51
coaching group in the entire world.
45:54
Like in terms of, I think financial top line, but also in
45:58
success. We're trending to 100% success
46:00
rate with our students. Like you join sub two, you're
46:02
going to be successful. That's insane.
46:05
And why is why did we do that? Well, because I made it a
46:09
requirement for people to come in my office for a week and do
46:11
deals with me live. So like right now, if you go to
46:13
my office, this whole week I've had 300 students in my office
46:17
doing mobile home parks, RV parks, and some commercial stuff
46:20
with me live. So I generate the leads for
46:22
them. They set appointments for me and
46:23
50 other closers, and we just do deals all week long and I pay
46:27
for all the leads. By the end of the week,
46:28
everybody's gotten a contract. And then they go into the
46:30
community the rest of their life and they're just skyrocket.
46:34
And so they're just flying out here to your office and doing
46:36
deals. With you and that cost no money
46:38
either. And I meet every single one of
46:39
them. I take a photo with every one of
46:40
them. I remember their names and then
46:43
I do crazy wild where I'm like, OK, here's here's the stuff that
46:47
nobody will do. And also I don't get a chance to
46:49
talk about on social media because nobody gives a like if
46:52
it's not viral worthy, it's hard to talk about.
46:54
So you saw the homeless lady that I helped last year.
46:56
Do you not know about that? See, that's what I'm talking.
46:59
About. Like this is what I'm talking
47:01
about is like, if it's not like a viral worthy post, it's really
47:05
hard to find out what I'm actually doing.
47:07
So what I do is I go, all right, 30,000 people, 87% of them are
47:13
successful. Let's go target the 13.
47:15
What's the third? What's the problem with the 13
47:17
percent? What's going on?
47:18
Is it our education? Is it the way we're teaching?
47:20
Is it the live Zooms? Oh, it's not that.
47:23
It's that they have some mindset issues or they believe they
47:25
can't do it or whatever it is. OK, let's find out what the
47:27
common denominator is of each one of these groups.
47:29
And I find out the top common things are I have no money.
47:33
I have a mindset issue about whatever I'm I'm physically
47:36
incapable, I'm a wounded vet or whatever else or have Ms. or
47:40
have whatever. I'm too old, I'm too young.
47:42
Anyway, there's ten of these things.
47:44
I go, all right, well, I'm going to go crazy.
47:46
I'm going to move my family to that person's house that has
47:50
that excuse and I'm going to document that and live stream it
47:53
just for my community and we're going to pair people up.
47:55
So right now, Oh, dude, I'm you're insane.
47:58
Oh, bro, bro, listen to this. So last year, Jamil and I, who
48:03
you're really good. That's How I Met you is through
48:04
Jamil A&E wanted to have a 30, another 30 episodes in 2025.
48:09
They'd go, hey, we want 30 more episodes on your TV show.
48:11
And I go, I don't really flip houses, I flip people.
48:14
So if you're not willing to do the TV show about us flipping
48:17
people, I'm not I don't want to keep going.
48:18
And they're like, what do you mean?
48:20
I'm like, I want to find a homeless person and I want to
48:22
show the world that I can take somebody with mindset issues,
48:24
drug abuse, you know, all these things.
48:26
And I can still make them a successful real estate investor
48:28
by giving them very specific steps.
48:31
And they're like, that's not cool enough.
48:33
And I go, all right, cool. So I went to Netflix and and
48:37
shout out to Jesse, my producer. And I said, Netflix, will you
48:39
guys produce a show if I go create a big sizzle reel of
48:41
being doing wild? And they're like, yeah, in fact,
48:44
we might name the show Wild with Pace Morby.
48:47
I was like, OK, cool, let's do that.
48:48
Not literally while it'd be like wild, whatever.
48:50
So a couple of weeks later, Universe delivers this e-mail to
48:54
me. This is April of last year.
48:57
And it's an e-mail from a lady named Maddie, 59 year old black
49:00
lady, 4 foot 11, really small little lady.
49:03
I'm saying I'm homeless. I've been on the streets for
49:05
four years here in Maricopa County.
49:06
And my husband was murdered when I was 55.
49:10
My life is this, that and the other.
49:11
And I live really close. I know you live in Mesa, but I'm
49:13
in a women shelter in Mesa. Is there any advice you have for
49:16
me? I go, how about this?
49:18
I'll come pick you up. So me and my camera guy, Eric
49:21
went picked her up. We spent 17 hours with her.
49:23
She flew to LA with me because I was in the process of buying a,
49:25
a, a company out there and I just got to know her story.
49:29
Like, how did she get onto the streets and all of that stuff?
49:31
And they go, cool, How about this?
49:33
If you let me document this entire journey and I give it
49:35
away for free on YouTube, then I want the world to just see the
49:39
story. And I'm going to write a book
49:40
called 0 to hero about you and five other characters.
49:43
And will you do that? She signs a media release.
49:45
She says, yes. So what I do is I take these
49:48
characters and then I live stream only inside of my
49:50
community, the help I'm giving them.
49:52
So my community is following along.
49:54
So like people on YouTube don't get this and also they wouldn't
49:56
pay attention. Homeless person has nothing to
49:58
do with me. So Maddie in 20 days gets her
50:02
first wholesale deal. She makes 5 grand.
50:04
She then gets her first sub two deal in 90 days.
50:06
She now lives in a $700,000 house.
50:08
She rents out the rooms. Those rooms pay for her mortgage
50:11
plus $2000 in her pocket. She's off the streets in 90 days
50:14
now. She's done 30 deals in 12
50:16
months, bro. Like, that created the this
50:19
insane groundswell in my community that's already doing
50:22
billions and billions of dollars of transactions.
50:24
But it just inspired people to #1 like, get over the mindset
50:28
bullshit and #2 let's help some other people.
50:30
So I, you know, as a leader in your community, you have to do
50:32
things to create energy because you're the leader, right?
50:35
The leadership goes from the top down.
50:38
Cool. So this was so successful that I
50:40
go, all right, next character and a lot of people go, but I'm
50:42
physically incapable. I, I, I, I'm wounded that I'm at
50:45
this. And whatever their excuses are,
50:46
I'm targeting now like that little sliver of people that are
50:49
not successful. So I find a woman in my
50:52
community. I just got back two weeks ago.
50:55
Her name is Jennifer Lindsay. Her husband died of dementia 3
50:58
years ago. She's had Ms. multiple sclerosis
51:00
for 23 years. She cannot move.
51:02
And I go, I'm going to move to your house and I'm going to show
51:06
you in four days that I can build an entire portfolio with
51:08
no money, but you're going to do the work.
51:11
And so we go and do this thing where I moved to San Antonio.
51:15
I leave my my wife, my business and everybody behind and I go
51:19
and help this lady build a portfolio.
51:21
We got 3, two single family houses and an RV park under
51:24
contract, no money out of pocket.
51:26
She generated all of the leads herself.
51:29
And we went out and let's see, I want to show you this picture of
51:34
me and her. This is what I had to do with
51:37
her every single day. I had to carry her around
51:39
everywhere I went. Oh my God.
51:41
This was two weeks ago. Wow.
51:44
Yeah, you can the. Camera can see this but.
51:48
Yeah, we had I had to pick her up.
51:49
She she couldn't do it. So she's in the community.
51:52
She joins sub two, but she hadn't done a deal yet.
51:56
And I'm like, why? I'm targeting this small group
51:58
of people like why have you not done a deal yet?
52:00
I will fly my ass to your house. I will make sure so people like
52:03
it's no watch the videos at that.
52:05
That's not my style because I'm not a video watcher.
52:09
I want people to be face to face with me.
52:11
I want to learn that way. I'm AI grew up as a contractor.
52:13
So if I'm going to learn how to swing a hammer and build a
52:15
house, I want to stand next to the guy that's swinging the
52:17
hammer building the house. So we just got back and what I
52:21
did, and this is the wild like really creates a successful
52:24
community as I invite 500 members to this warehouse.
52:28
I rent the warehouse out and I go, Hey, 500 members, if you
52:31
haven't done a deal yet, I'm going to have me and Jennifer
52:33
work in front of you and you guys are going to pair up with
52:36
each other. So I got 50 of my leaders and
52:39
built 50 tables and I put 10 newbies with one leader.
52:43
And then the leader did what I was doing for Jennifer.
52:47
They did it for the other 10. And we built this all in person.
52:50
And this was at in San Antonio. Cost me a quarter, $1,000,000 in
52:53
my pocket. Didn't televise it, didn't
52:55
broadcast it didn't talk about an Instagram.
52:57
I'm just doing these things behind scenes and then 300
53:00
people, 400 people get their first deal because they were in
53:03
a room and that inches up the success rate, inches up the
53:06
success rate. So I'm doing this five more
53:09
times this year. One with a 92 year old lady
53:11
who's like, I'm too old. I've never done a deal.
53:13
She joined my community six months ago.
53:14
She still hasn't done a deal. I'm like, why?
53:16
She's like, I'm too old. I'm like bullshit.
53:18
So I'm going to fly to her house.
53:19
I'm going to do the deal with her and I'm going to invite 500
53:21
people that have not done a deal with me in person and not charge
53:25
for. I will spend a quarter
53:26
$1,000,000 doing the thing and of course I'll end up making all
53:29
my money back. How will I make my money back is
53:32
I will write I'm writing a book called 0 to hero if you guys
53:35
want to pre-order it. This is a promotion but I make
53:38
no money on the book. I'll tell you how I'll make my
53:39
money. The book pacesnextbook.com you
53:42
guys can go there. Maddie Richards, the homeless
53:44
lady, Jennifer Lindsey, the lady who has Ms. and then I've got a
53:47
92 year old lady. I'm looking for a real estate
53:49
agent that is sick of being a real estate agent that wants to
53:52
be real estate investor. And I'm looking for somebody who
53:54
believes they're too young. And then I've got another
53:57
character, which will be somebody who is international.
54:00
So I've got to move to Canada or some crazy and I've got to do
54:03
all that this year. But what am I doing?
54:05
I'm doing all this privately. I'm recording it and then I'm
54:07
giving all the video content away to the people who buy the
54:09
book. So like Jennifer Lindsay,
54:11
content was over 400 hours. Well, because we were recording
54:15
the group and recording me and Jennifer.
54:17
So like nothing was missed. So you'll get that for 29 bucks.
54:21
How will I make money for this? I'll make money from buying
54:24
probably 50 pieces of real estate from the people that end
54:26
up doing deals. I'll buy RV parks, mobile home
54:28
parks. I'll buy all sorts of crazy from
54:30
people because they finally took action and they bit off more
54:33
than they could chew. They find a deal that's too big
54:35
for them. Like I've got one of the coolest
54:37
assets I bought this year was an asset called In Town RV Park.
54:41
It's the third most beautiful RV park in the country.
54:43
Just voted by USA TODAY. And that came from a student
54:46
that was in one of these rooms with me, with me doing wild for
54:49
Maddie, the homeless lady. She, this lady takes it action,
54:52
names Monica and she goes out, finds this thing, gets it on
54:55
seller fines. She goes, I can't close.
54:56
I go, I'll close it and I'll give you 60%, I'll take 40%.
55:00
And so I'm wild. I just do wild.
55:02
And so where people are like Pace is the greatest community
55:05
builder. Then like beyond all of this,
55:08
Jamil and I go on the road. 120 cities in 100 days, 50 states.
55:14
But we went to Canada, 4 provinces, Puerto Rico, Mexico.
55:18
And I did a meet up every night and I helped everybody in that
55:21
meet up get their first deal 129 days in a row.
55:24
So we helped over 30,000 people get their first deal in like 120
55:27
days. That's.
55:29
Insane, insane. So like people will look at me
55:31
and they'll go, oh, he's a oh, he's a coach, he's a guru.
55:34
Guys, spend one day with me and I will make your ass cry.
55:39
Not just because like I can't go to an airport without people
55:41
stopping and going. You changed my life.
55:44
I don't want to be the most popular, most coolest person.
55:46
Like I respect the people that I'm going to say their names.
55:49
But like Robert Kiyosaki is always going to be more popular
55:52
than I am. He's going to have a bigger
55:53
brand than I am. But I will change more people's
55:57
lives directly then Robert Kiyosaki has the capacity to do
56:01
it. He will do it at a very high
56:02
level. I'm never going to try and be
56:04
him because he already did that. I'm trying to go down lower and
56:07
like meet the people where they are.
56:09
I would say that the most impressive thing.
56:12
Let's see who who do you know? OK, Russell Brunson.
56:14
So I'm with Russell Brunson. He came to one of my events and
56:17
we're taking photos with all my people and it's like 3 or 400
56:20
people and these 3 or 400 people come through.
56:22
I'm talking I have 30,000 people in the community.
56:25
We're taking photos and these people coming in, I go, hey Tim.
56:28
Hey Sarah. Hey, I said, hey Mel, I heard
56:32
you just moved out of your condo.
56:33
Congratulations. And Russell's like, are these
56:38
like your VIP people in the front?
56:39
You just know all them. I go, no, I'll bet you $1000
56:43
right now that I can name every single one of these people all
56:45
the way through and he's like, there's 500 people.
56:47
I go, I'll name 500 people's names and I know their spouse
56:50
and I know their kids and I know the last deal they did because I
56:53
care. That's the difference is the
56:55
difference is I care so much. So like, think about it.
56:58
We pay attention to what is important to us.
57:00
And these people are important to me because number one, I came
57:03
from a big family, 12 kids. That's just how I was raised,
57:06
came from a church that like if somebody moved into the ward, we
57:10
Mormons call it like our geographical area, a ward.
57:13
If they moved into the ward, my mom's making carrots like a
57:15
casserole. My dad's going over and helping
57:17
them move. My dad's lending tools to them.
57:19
And I just grew up that way. My mom did two things that stuck
57:24
with me, and I hope that helps the audience too, is my mom
57:27
trained me from a very early age that the first thing you do in
57:31
the morning is put your shoes on.
57:33
And my, and I was like, I think I might have said this on your
57:35
show earlier. And my mom, I was like, mom, why
57:38
do we do that? And she says, because you never
57:39
know who's going to call and need your help.
57:41
You're ready by all times. Somebody's going to call and
57:44
they need your help. Put your shoes on first thing in
57:45
the morning. It's like, OK.
57:46
And so that trained my mentality of like, my job is to serve,
57:49
right? And so she would also tell us
57:51
the words attitude of servitude. You have an attitude of
57:54
servitude. You want everything in your mind
57:55
is like, who am I going to serve today?
57:57
So that was instilled in me. But then the second thing my mom
58:00
did is she put a sign, a little placard right next to the door
58:04
jam as you're walking out the garage door, said to return with
58:06
honor. And my mom would teach us, you
58:08
don't leave my house unless you touch that placard on your way
58:10
out. And it returned with honor,
58:12
Return with honor, return with honor.
58:13
So think about what that does to your psyche when you're touching
58:15
that sign all the way up until you graduate.
58:18
Then I went on a mission for my church.
58:19
What do I do on my church? In my church, I learn a language
58:22
to help people in rice paddies have a better life.
58:25
And I did that all the way until I was 21.
58:27
So when I got home and I jumped into construction because that's
58:29
what my dad was doing, I was like, where's the collaboration?
58:32
Where's the help? Where do people actually care
58:34
about each other? And so I turned it into a
58:36
business that does hundreds of millions of dollars a year
58:38
because I was like, I'm going to find the thing I love to do and
58:41
figure out how to make money doing it.
58:43
So I nobody can compete with me in that regard.
58:45
Because I actually like, if you came to my office and spent a
58:48
week with me and you saw how I built community, you would be
58:50
like, I can do this too in your own way.
58:53
I'm not going to be as crazy as Pace on these things, but I also
58:56
could do things better than Pace can do on these things.
59:00
And what's cool is like this is a cool stat.
59:04
The average deal that's done in the sub two community involves 5
59:07
other members. So that that's an insane stat
59:09
that that that many people are collaborating and helping each
59:12
other out. The average deal that's done has
59:14
five other members involved. Somebody's ATC, somebody's a
59:17
private money lender, two people were partners, whatever it may
59:19
be. Somebody cold called somebody
59:21
bird dog the deal, whatever it may be.
59:22
So somebody else was the buyer. And so it's very, it's an
59:26
economy I built, I didn't build a commute.
59:28
I built an economy that's crazy to say it's insane.
59:31
Yeah, yeah. And you've done it just like
59:33
nobody else has ever done it before.
59:35
And I don't feel like I've even done.
59:36
I feel like I'm just starting like you.
59:38
The plans I have right now are just, they're scary.
59:40
My team is like, he's going to do it, We're going to do it.
59:43
Like dude going on the road for seven months during the winter
59:46
time and visiting every large city in person and paying for a
59:51
meet up. I had Monster Energy behind me
59:54
shout out monster. They gave me a bunch of money.
59:55
A bunch of other people gave me money so we didn't have to lose
59:57
money. But it cost me $1,000,000 and I
1:00:01
got sponsors to help me get across the road and buy.
1:00:03
I had a professional driver. I I'm in hotels.
1:00:06
I'm putting my wife and my kids through this and by my wife is
1:00:09
like I'm down let's go like because my wife gets DMS all day
1:00:13
long saying from women saying. My husband joined Pace's
1:00:17
community and Pace met him in person and did a deal with him.
1:00:20
I never thought about that. I thought it was a coaching
1:00:23
course. And my wife's like, no, my
1:00:25
husband doesn't have a coaching course.
1:00:26
He doesn't have a mentorship. There's 5000 mentors and sub
1:00:29
two, they're all leaders. Like that's the cool thing.
1:00:32
And so if you're going to build a community, you have to, you
1:00:34
have to think about it like a church.
1:00:37
At least in my church. We have a prophet in our church.
1:00:42
Are you a Christian? OK, and what church do you go
1:00:45
to? Do you guys have like a
1:00:45
hierarchy? I don't actually go to church.
1:00:47
Oh, you don't? OK.
1:00:48
But I, yeah, I'm my own Christian.
1:00:50
I mean, I go to church here and there, so.
1:00:52
When you look at I don't go to church a lot either.
1:00:54
There's like been stints where I don't go for seven or eight
1:00:56
years. So like I'm not hyper going to
1:00:57
physical church, but you look at like really well ran churches or
1:01:01
organizations, you're like, OK, well there's leaders that
1:01:03
volunteer, but more importantly the volunteer.
1:01:05
The leaders that volunteer are financially benefited in some
1:01:08
way. So I'm like, how do I build
1:01:11
something where I can have regional leaders all over the
1:01:14
country and I can have meet up locations?
1:01:16
150 meet up locations happen every single week in my
1:01:20
community all over the country where I'm not there.
1:01:23
How do I set this up? And so I set it up in a way that
1:01:25
if new people join in, let's say Dallas and I have Myron and
1:01:28
Carolyn Briley that are running the meet ups or Diane and Roger
1:01:31
Oquist are running the meet ups in like Fort Worth, the people
1:01:35
go to the meet ups and bring deals to them or private money
1:01:37
to them or what have you. And so the regional leaders are
1:01:39
financially benefited. So I built a community that
1:01:41
people make money by being leaders.
1:01:44
And so it doesn't all rest on my shoulders.
1:01:46
And so I'll go to a meet up, my like a sub two meet up and
1:01:49
there's 500 people there. And I'm not the coolest person
1:01:53
there. It's the leaders that have been
1:01:54
running that regional area and it's freaking cool.
1:01:58
That's amazing. It's amazing.
1:01:59
How do you manage all of the communication and operations?
1:02:04
I have 4 community directors in my office down there.
1:02:07
AI is really helpful as well. I had a team of 12 MSA's at one
1:02:11
point, member success advisors 12.
1:02:13
So like when you join sub two, most people don't go about any
1:02:17
of this, but hopefully this is helpful for you.
1:02:19
But I had when somebody joins sub two, I was like, how do I
1:02:22
make this not feel like a product, like a coaching course?
1:02:24
Like you watch the videos and then you do a deal like the
1:02:27
videos of course. Are there 567 years of thousands
1:02:31
of Zooms we've done right? But I was like, how do I make it
1:02:34
so somebody is immediately attached them for at least six
1:02:37
weeks? And so you get a dedicated MSA
1:02:39
when you join sub two. And the MSA helps out the
1:02:41
communication. They introduce you to your
1:02:43
regional leader. They introduce you to 15 other
1:02:45
students in your local area. So like the second you join sub
1:02:48
two, you've got 15 friends. And Mark Zuckerberg said this
1:02:52
thing. He's like, we found that when
1:02:53
somebody joined Facebook, if they had seven friends within
1:02:56
their first week, they're never leaving Facebook.
1:02:58
And so I'm like, how do I double that?
1:02:59
So I went to 15 and I said I want to make sure people have 15
1:03:02
friends in their first week of sub two that are within 100
1:03:04
miles of them that are similar to them.
1:03:06
If they're married, we find the married people.
1:03:08
If they're single dudes, we give them a couple of other single
1:03:10
dudes. Like if they're single women, we
1:03:11
give them a couple of other single women.
1:03:13
And what's bonkers is my community is 51% female.
1:03:17
Really. Yep, 51% female.
1:03:19
We have 15,800 women in our community and like 14,000
1:03:23
something men. But I came from a family of
1:03:27
eight sisters. I primarily hire women, so I
1:03:29
attract a lot of women to the the community because a lot of
1:03:32
our educators, a lot of our teachers are also women as well.
1:03:36
And when you make women feel safe, I mean, there's so many
1:03:38
men out there that just don't make women feel safe.
1:03:41
And you do. You're such a great leader.
1:03:43
Yeah. And I tell look, and I'm, I, I
1:03:45
think that there's, I'll give you some transparency here.
1:03:48
I, I have a partner named Rinda Emmick.
1:03:49
Shout out Rinda Emmick and I came from a big family of
1:03:53
sisters. And so I have no problem hanging
1:03:55
around women. And so Rinda Emmick joins up to
1:03:58
three years ago, her husband hated me for like a year because
1:04:02
he's like, who is this guy talking to my wife on Zoom and
1:04:06
he knows my wife's name And she goes to events and pace gives
1:04:08
her a big hug. And then I just saw them at our
1:04:11
RV park we owned together. And he was just like, dude, I
1:04:15
just want to say you are exactly the opposite of what I thought
1:04:18
you were. I thought you were this, like,
1:04:19
bad person. He's like, you really treat all
1:04:22
these women like they're your sister.
1:04:23
I'm like, yeah, I grew up in a church where you called each
1:04:26
other sister and brother. And this is how I operate.
1:04:29
This is not something that it's on Mac.
1:04:30
This is how I grew up from age 0 all the way until I'm 43 years
1:04:33
old. It's the exact same way.
1:04:34
So like, I got a lady, a woman sent me a text this morning.
1:04:38
She was, dude, thank you so much.
1:04:39
I can't wait. We're buying a second RV park
1:04:41
together right now. Her name is Monica.
1:04:43
And I reply back to her. And I was like, love you sister.
1:04:46
And I was just like, that's how I communicate with all of them,
1:04:48
right? I really genuinely care about
1:04:50
them. And so when you care about
1:04:51
people and there also is a financial gain, I'm not doing
1:04:55
this altruistically. I am making money.
1:04:59
I am buying significant amount of deals and I could have fun in
1:05:03
the process. I just bought 20 horses the day
1:05:05
the other day on creative finance from a from with horses.
1:05:09
It's a like horse rental company that like takes people out on
1:05:12
trail rides and it makes like 400 grand a year.
1:05:15
And so we just bought this on creative finance and I bought it
1:05:17
with a brand new member. His name is Reza.
1:05:19
And and Reza's just like, dude, I thought I was just going to
1:05:21
get a bunch of videos. So, you know, you and I were
1:05:23
voice memoing the other day talking about like, give them an
1:05:26
experience that makes it feel like an anti coaching product.
1:05:29
And if it does feel that way, they will feel attached to it.
1:05:31
And then if you go out and you do wild, you represent that
1:05:36
entire community. So if you go out and you go, all
1:05:38
right, Hannah is going to go do something wild, I'm going to go
1:05:41
move to Afghanistan for a week. Don't move to Afghanistan.
1:05:43
But you know my point, I'm going to go move to Canada for a week
1:05:48
and I'm going to prove that somebody living in Canada can
1:05:50
virtually do a commercial deal in America.
1:05:52
That would be a great piece of content.
1:05:54
Your audience or your audience is great.
1:05:57
They'll end up, you know, converting into your community.
1:06:00
But the people in your community are going to be like, that's us.
1:06:02
They're not going to be looking at it like that's Hannah.
1:06:04
They're going to look at that and go, that's us.
1:06:06
Like that's our leader, our leader's doing cool.
1:06:09
That gives us permission to do cool too.
1:06:11
And so I would say that most people have coaching products or
1:06:14
mentorships don't do any of that stuff.
1:06:17
And if you spent a week with me or any amount of time with me,
1:06:20
you would see the amount of stuff I do.
1:06:22
Like even last night, Brandon Turner, good friend of mine, I
1:06:25
go, you know what, Brandon Turner is getting roasted online
1:06:27
about this $15 million he lost. And look, I agree with the
1:06:31
people that are mad at him. They deserve to be mad at him or
1:06:33
whatever, for whatever reasons. I, we don't need to talk about
1:06:35
that. But I go, well, he's my friend
1:06:37
and I'm going to support him because I'm just a good friend
1:06:40
till death do us part. What can I take from this and
1:06:44
bring Brandon in to teach My private community did a Zoom
1:06:47
last night with like 2800 of my private community that will
1:06:50
never go on YouTube. And I just kept it really
1:06:52
private and very intimate. And the community was like, wow,
1:06:57
you didn't use anything of this as negativity.
1:06:59
You didn't use it as a way to go get, you know, branding out
1:07:02
online. You just helped your friend
1:07:04
Brandon teach some lessons that he learned in this really that
1:07:08
he's going through and you kept it all private.
1:07:11
And So what does that do? That gives permission to our
1:07:13
community that we do things in a positive way.
1:07:15
We keep things private and need to be private.
1:07:17
So what I do shows up in the community.
1:07:19
And so building the community is is a little bit more intricate
1:07:21
than just going, I have a platform and I give you videos
1:07:25
and I do some Q&A like it's a little bit more intricate than
1:07:27
that. Right.
1:07:28
And especially now in a world of AI, it's like nobody wants an E
1:07:31
course, nobody wants a video, nobody wants just information
1:07:35
overload because information is free now, right?
1:07:38
You can get free information from anywhere and there's no
1:07:40
reason to pay for it. People need human connection.
1:07:43
People need to have an energy exchange, energetic exchange.
1:07:47
And that's really what a sale is.
1:07:50
It's an exchange of energy, right?
1:07:51
So for somebody to be successful, they can't.
1:07:54
I mean, you can, but it's in today's age where there's so
1:07:58
much information, there's so many inputs is thrown at us all
1:08:01
day long. We need connection.
1:08:03
And just like that's why you know what you're doing in that
1:08:05
those in person groups, those in person meet ups and you going
1:08:09
out and actually changing people's lives.
1:08:12
It's like Tony Robbins interventions, right?
1:08:13
Like having intervention. You could read a book about NLP
1:08:17
or how to quit smoking or how to stop being an alcoholic or
1:08:20
whatever. But until you actually have that
1:08:22
energetic exchange and that intervention with a live human
1:08:25
that actually cares, that has their focus on you, it's very,
1:08:28
very hard to transform your life.
1:08:30
You and I are very lucky as well.
1:08:31
So like, this would be a challenging thing.
1:08:33
Like I've gone and talked in Cole Gordon's mastermind, you
1:08:36
know, Cole Gordon. Yeah.
1:08:37
OK, so love Cole. He has a really high level
1:08:39
mastermind. And I told people on the stage,
1:08:41
I was like, I could teach you this what I'm doing, but it's
1:08:44
not going to work for you the same way it works for me.
1:08:46
And the reason being is because you and I are in an industry
1:08:50
that if I help somebody do a deal, I have the opportunity
1:08:53
making money. So there's a financial outcome
1:08:55
and benefit to me to help somebody get a real estate deal
1:08:58
done because I can buy that deal or I can lend on that deal or I
1:09:01
can borrow or whatever it may be.
1:09:03
And so even with your lending company, like think about this,
1:09:06
you want more clients for your lending company, right?
1:09:09
So go make more people successful in commercial deals.
1:09:13
It's it's dude, it's the greatest cheat code on planet
1:09:15
Earth. So you genuinely create yourself
1:09:20
a carrot that you have to chase that gives you a massive
1:09:24
financial benefit. And in order to get there, you
1:09:27
have to help this big group of people in order to get your
1:09:29
carrot. You'll win.
1:09:31
Because look, I love helping people.
1:09:33
I know you do too. But at the same time, you have
1:09:35
to grow your empire and you have to take your responsibility
1:09:38
serious. So why can't mix them all
1:09:39
together, your lending business, your portfolio, your fund,
1:09:42
whatever it is that you want to build, go help a big group of
1:09:46
people get exactly what they want.
1:09:48
And in the process, they're going to use your lending,
1:09:50
they're going to do deals with you, they're going to join your
1:09:51
fund, they'll lend money to you, whatever it may be.
1:09:54
And it is the cheat code. So like people that are like,
1:09:56
oh, I teach, you know, I have a community of people that do, you
1:10:00
know, construction management or whatever.
1:10:02
I'm like, good luck with that. Like I would love to help them,
1:10:06
but I have no financial benefit if they're successful.
1:10:09
And so I wanted to make sure that I built something that the
1:10:11
more success we found in the community, the more deals I'll
1:10:13
buy. And so I've had years where I
1:10:14
bought $100 million in real estate from students in my
1:10:19
community. That's insane.
1:10:22
Like there's other people out there.
1:10:23
I'm going to build an acquisition department and I'm
1:10:24
going to have like, dude, I'm the anti acquisition department.
1:10:27
My acquisition department is a successful student that found a
1:10:29
deal based on the templates and the systems that I gave them and
1:10:32
the in person experience I gave them to go find that deal in the
1:10:35
1st place. They bring it back to me and I
1:10:36
go, I'll buy that deal, I'll keep you in the 20%.
1:10:38
So like if you build a, a commercial community, you have
1:10:42
the same capacity, you have this incredible ability to go, what
1:10:46
are the five ways I'd like to make money?
1:10:47
If the, if I can make 1000 people successful in commercial
1:10:50
real estate, how could I make money from that?
1:10:52
Forget about coaching, forget about the, the income from the
1:10:55
coaching 'cause that's never going to be significant enough
1:10:58
to make you happy. And there's certain portions of
1:11:01
my community like Gator loses money, top tier TC loses money,
1:11:04
but it's important to my overall ecosystem.
1:11:07
And so I'm OK losing money on some of my coaching products to
1:11:09
make sure that these people come in, we do deals together.
1:11:12
And then these other things I make money with.
1:11:13
I'll my I will be doing probably 2, three, $4 million a a month
1:11:20
in net positive cash flow within the next couple of years just
1:11:23
from the deals I buy for my students.
1:11:25
That's tremendous. Meanwhile, people are quitting
1:11:27
coaching because you can't make money in coaching.
1:11:30
You can't make money in coaching because you never let your
1:11:33
students make money from your coaching.
1:11:35
Right, Yeah, everyone's coaching is burning to the ground because
1:11:38
they don't give a about people. They are trying to make money
1:11:41
selling a course dude. I'm having a throat surgery done
1:11:44
in 30 days because I talk so much 12 hours a day on average.
1:11:50
I'm talking all day long. I've got a hole in my throat.
1:11:53
And so I'm talking, talking, projecting, teaching, doing all
1:11:55
this stuff, talk calling their sellers.
1:11:57
I'm doing the that they need and I'm relentless about it.
1:12:01
But I set it up in a way that I'm not going, gosh, I got a
1:12:05
white knuckle my way through this and I got to like force
1:12:08
myself to do this. It's like, no, I figured out
1:12:10
what I want to do and where I can show up.
1:12:12
And you'll find that out with you too.
1:12:14
And like, if you end up building something, I'll sit down with
1:12:16
you and spend a couple of days with you.
1:12:17
Will whiteboard like how how can Hannah show up in a way that
1:12:20
nobody else can show up? And I show up in very specific
1:12:23
ways and whatever ways that my students need that I'm not going
1:12:26
to show up in. Like, for example, I'm not going
1:12:28
to walk through a contract with my students 50 * a month, but I
1:12:31
have people that will. I want to be on the phone with
1:12:34
the sellers. I want to be on the phone with
1:12:35
the attorneys. I want to be working the the tax
1:12:37
advantages. I want to be doing the fun stuff
1:12:39
for me. So then I fill in the gaps of
1:12:42
the and I find those people and I bring them all together and we
1:12:45
build this cool empire. And those people that are in the
1:12:47
transaction coordination, they are financially benefited.
1:12:50
So I hope you build an ecosystem that is more of an economy that
1:12:54
will make you 10s of millions of dollars just from helping people
1:12:57
become successful. Thank you.
1:12:58
Yeah, I'm so excited. You deserve it.
1:13:01
I appreciate it. I told you last time, why don't
1:13:02
you have something? I know you're like, I remember
1:13:05
you telling me people are in the store of Hannah and you have
1:13:07
nothing to sell them. Yeah.
1:13:08
The shelves are empty bro. Yeah, and that's what Robert
1:13:10
Kiyaki told me, too. He's like you.
1:13:12
He actually yelled at me. He on my birthday.
1:13:16
Yeah, he yelled at me. He's like, you are robbing
1:13:19
people of something like of your gift and of your message.
1:13:22
You are stealing from people that you need to help because
1:13:26
you because I'm afraid of like, having a fun and losing people's
1:13:29
money. Like I'm afraid of a Brandon
1:13:30
Turner situation because there's always risking things, right?
1:13:32
But but ultimately it's like I know my values are pure.
1:13:36
I know my intentions are pure. I know that I love helping
1:13:38
people more than anything else in the world.
1:13:40
I know I have important things to share through my own lessons
1:13:43
and journey from coming from nothing and being suicidal and
1:13:46
building multi millions of wealth through real estate and
1:13:48
entrepreneurship and these other things.
1:13:50
And so I just need to get over all of that limiting beliefs and
1:13:53
remove all those bricks from my head as my mentor tells me.
1:13:56
And have people like you like it's who not how right?
1:13:59
Have people in your corner who believe in you and support you
1:14:02
and who have already been there and learn from me like I would
1:14:05
love and thank you for that. I will take you up on that.
1:14:07
I I would love to spend. I dude, I'll tell you, I've, I
1:14:10
did this thing. So I was part of this mastermind
1:14:12
for a couple of years and it was just a mastermind about coaches,
1:14:17
like coaches, coaching coaches, like helping each other become
1:14:19
coaches. I stopped going like five years
1:14:21
ago because I would just get pinned up against the wall and
1:14:24
people go, how are you doing what you're doing?
1:14:26
Everybody else is hurting right now and you're thriving.
1:14:28
And like guys, it's so simple, like just care about people and
1:14:32
do it in a way that you can make money.
1:14:33
If they make money, it's that it's not that hard.
1:14:36
And so they wouldn't stop asking me questions.
1:14:39
So I did this big event at my office and I said, I'm leaving
1:14:42
this mastermind. I'm not going to be here
1:14:44
anymore. So I'm going to give you guys a
1:14:45
big parting gift. I'll spend an entire week with
1:14:47
you. I'll show you my systems, my
1:14:49
ads, my funnels, my webinars, my, this, my that, my internal
1:14:52
processes, how I make money on the back end.
1:14:54
And I spend the whole week with them.
1:14:56
Guess how many of them ever took action on it?
1:14:58
None. 0 Sixty of them. Sixty of them flew their asses
1:15:01
to my office, spent a whole entire week in my office.
1:15:03
Not one of them changed their processes because they don't
1:15:05
give a SH. And so when I find somebody who
1:15:08
actually want like Jamil Damji, Jerry Norton, do you know Jerry
1:15:11
Norton? Jerry Norton and Jamil Damji are
1:15:15
the purest coaches I've ever met in the business.
1:15:18
And so I spend all my time with them because I want to
1:15:20
collaborate with them. I want to talk to them about
1:15:22
what they're up to. So when you find somebody that
1:15:25
actually cares, then I want to put all that time in there.
1:15:28
Think about finding the greatest restaurant on the planet and
1:15:32
never being able to tell anybody else that it exists.
1:15:34
That's or the best band or the Best Song or the best whatever.
1:15:38
You can't share it. So when I find something that I
1:15:42
love and I'm obsessed with and there's somebody that can
1:15:44
actually benefit from it, that will actually do something about
1:15:47
it. Bro, give me all the time.
1:15:49
I'll I'll break it all down for you.
1:15:50
Thank you. Of course, I'm excited.
1:15:52
We'll get that on the books, of course.
1:15:53
All right, I know you have another podcast, so we'll wrap
1:15:55
up here. I was like to do school hard
1:15:57
knock style. OK, How old are you when you
1:15:59
became a millionaire? 30.
1:16:01
What line of business are you in?
1:16:02
Real estate. What's the most amount of money
1:16:04
you've made in a single year? Our companies do like $120
1:16:06
million a year in in Robin Hill. It's pretty good.
1:16:09
That's insane. What's insane about that is like
1:16:12
when you look at the amount of companies that ever hit that and
1:16:15
what's funny is I never had the goal of doing 120 million in a
1:16:17
year. I just had a goal of like, let's
1:16:19
just help people. And that quote, that's like, if
1:16:22
you help enough people, you'll get what get what they want.
1:16:24
You'll get what you want. I was like, all right, just do
1:16:26
that. And you wake up one day and
1:16:27
somebody goes, do you know we do 120?
1:16:29
I actually found out about this in a weird way.
1:16:31
It was like maybe five years ago and somebody's like how much of
1:16:34
your company do in revenue and go, I don't know, 30,000,040
1:16:37
million and I could text my partner and I go, hey, what's
1:16:39
our top line revenue this year goes $120 million.
1:16:43
They might oh, OK, sounds good. That's how disconnected I am
1:16:47
from it. Yeah, me too.
1:16:49
I just do what you do best. I don't want to think about the
1:16:51
rest. Yeah, that's that's insane, $120
1:16:54
million. Yeah.
1:16:55
What's the best piece of advice you ever received?
1:16:59
Who not how you'll never do it on your own.
1:17:02
Collaboration over competition. Always always, always.
1:17:05
And if I could have gone back in my 20s and told myself that,
1:17:09
like, find the person that needs the thing or has the thing, I
1:17:12
would have just written a check. I'm writing a check right now.
1:17:14
Do you know Victoria Keller? I don't think.
1:17:17
So, OK, you should interview Victoria Keller.
1:17:18
He's incredible. He's one of my current mentors
1:17:21
and he'll be a lifetime mentor for me.
1:17:23
But he sold the company to Warren Buffett for $6.1 billion
1:17:26
in 2019, and that's insane. And so he's mentoring me right
1:17:31
now in car washes. And so I'm like, what do I know
1:17:33
about car wash? I could read books, do the
1:17:35
thing, buy a course, do this, or I could just pay somebody who
1:17:37
already knows what they're doing.
1:17:39
So I went to Victoria Keller and I go, how do I learn from you?
1:17:41
And he goes, buy car wash equipment from me and I will
1:17:43
help you build every one of your car washes.
1:17:45
And I'm like, OK, so you make money when I make money, He
1:17:47
goes. Exactly.
1:17:48
So yeah, the best piece of advice I got was find the person
1:17:51
that could help you the fastest and make sure that they make
1:17:54
money in the process and incentivize them to help you
1:17:56
out. Who is your hero?
1:17:58
I have a lot. Steve Harwood, Jerry Norton, a
1:18:02
lot of time. Even Cody Sperber.
1:18:03
Even as wild as he is, he's one of my heroes.
1:18:05
He's helped me open up doors. Dean Graziosi, Tony Robbins, Jim
1:18:08
Quick, Victoria Keller, Randy Garne.
1:18:12
Do you know Randy Garne? Oh my gosh, number one person
1:18:15
you need to know. And Mel Robbins, Barry
1:18:20
Baumgartner, probably my #1 mentor in the last five years of
1:18:23
Barry Baumgartner. You know, Barry, I've paid this
1:18:26
lady a couple $1,000,000 the last couple of years to teach me
1:18:28
how to do certain things. And I feel like I significantly
1:18:31
underpaid her millions. I've paid her millions.
1:18:35
So Barry Baumgartner is one of my biggest heroes right now.
1:18:37
Wow. If you could send one text to
1:18:39
your younger self, what would it say?
1:18:41
Other than who, not how? I would say be yourself.
1:18:45
Don't emulate anybody else. Be unapologetically yourself
1:18:49
because there's been a lot of times where I tried to follow
1:18:51
this person because I thought that was the path.
1:18:53
But when you find out who you are, you'll wake up excited
1:18:58
about what you're doing and you're going to relentlessly
1:19:00
pursue that thing that excites you, and you're going to be
1:19:02
inevitably successful. And I wish I knew that, but I
1:19:05
didn't learn that until I was like 30.
1:19:07
I wasted a lot of my 20s. You can pay me to go back to my
1:19:09
20s because I was following everybody else's advice about
1:19:12
their personality types. And I should have just, I wish I
1:19:16
could send a text myself and say be unapologetically yourself.
1:19:20
If you could leave one message with the younger generation,
1:19:22
what would it say? The the world is ultra positive
1:19:25
when you look at it and in an ultra positive way.
1:19:27
It's very negative if you hang out with the wrong people.
1:19:29
And I would tell you stay off the news.
1:19:31
Just go buy assets. Don't use banks.
1:19:34
Tank the bank. Don't think the bank is what
1:19:35
I've been telling people like just tank the bank in your mind.
1:19:38
It's not you don't use banks and go buy an asset.
1:19:43
Like right now, what I would do for, let's say I'm in my 20s, I
1:19:47
would make a hard goal to myself and say I have 90 days to put an
1:19:51
offer on my first RV park, my first mobile Home Park.
1:19:54
I didn't say buy the deal. I said put an offer on it.
1:19:56
Like get over that first hump of like, I'm putting an offer, put
1:20:00
a disgusting offer on an RV park.
1:20:02
Like an offensive, a disgustingly offensive offer on
1:20:06
an RV park in the next 90 days and take that first step of
1:20:09
action. And within a couple of years,
1:20:11
you'll own a couple of RV parks. You'll never have to work again
1:20:13
in your life. But you'll now work twice as
1:20:15
hard, I think, because once you get to a point you don't have to
1:20:17
work and you can work on the things you want to work on, it
1:20:19
doesn't feel like work and you just go take over the world like
1:20:22
like Hannah Hammond. Yeah, like like face Morvie.
1:20:26
If if we could all just not, I mean be like face Morvie, but in
1:20:30
our own. You don't be.
1:20:31
I know that's what I just. Said don't be like don't.
1:20:33
Be face worthy. Take the advice and don't be
1:20:35
face worthy. Yeah, I, you know, this trip I
1:20:37
just did on this RVI have like a hip surgery I have to do from
1:20:40
sitting in this RV for seven months straight, driving like
1:20:44
40,000 miles. I have a hip problem now from
1:20:47
like the developed over the seven months, like don't do what
1:20:50
I do. I'm a lunatic and I want to be
1:20:52
in front of people. And although it hurts my voice
1:20:54
and my throat and my tongue is constantly raw from talking all
1:20:57
day long. I love what I do so much that I
1:21:01
just stomach through the pain and I do do the thing.
1:21:03
So and I was talking to Tony Robbins at his house and he
1:21:05
goes, man, you're going to have my voice.
1:21:08
And I'm like, what do you mean? He goes, you're you won't stop.
1:21:12
You keep talking and you won't stop.
1:21:13
And you love these people like I love my people.
1:21:15
And he goes, I have permanent damage to my voice.
1:21:17
That's why I talk the way I talk.
1:21:18
And he goes, good luck. You're going to sound just like
1:21:20
me. I was like, can I be as tall as
1:21:22
you and as rich as you? Well, you're one of the most
1:21:25
incredible people I've. Ever met on the next episode?
1:21:27
The next episode we should be doing is on my podcast and the
1:21:30
next episode should be talking about you launching your
1:21:32
commercial community and talking about and you should tell people
1:21:36
like I, if you're successful in this community, I will lend
1:21:39
money to you. And if you're successful, I will
1:21:41
buy deals with you. And if you're successful, I'll
1:21:42
do this. I want to build a community that
1:21:44
will financially benefit me. When you are successful and when
1:21:47
you figure out those four or five things that you can make
1:21:49
money on, girl, you'll take over the world.
1:21:51
Let's. Do it.
1:21:52
I'm excited. Thank you.