In this week’s episode of the Turning Profit podcast, we’ll be interviewing the amazing Pace Morby.
Pace is a host for A&E’s Television show “Triple Digit Flip”, which has been signed for 6 seasons and is currently one of the top real estate shows on TV.
He is also one of the most creative real estate investors in the industry, with over 1,500 doors in his portfolio… most of which were acquired via creative finance.
Today, Pace runs the most active and connected real estate community called SubTo.com
In this episode, we’ll be discussing his business, how he got his start in real estate, why he includes his children in his business, what creative financing is, and more.
Are you ready?
Tune in now to learn more.
What Is Creative Finance?
Creative financing is a tool that’s been around for a while. It’s also been underutilized for a while. But not anymore if Pace, this week’s guest, has anything to do with it.
However, before you fully jump in, it’s only natural to learn what creative finance is exactly and how it works.
Here is how Pace defines creative financing in this week’s episode:
“If somebody says “What is creative finance?” I say it’s the process of buying anything, not just real estate, without credit, credentials, or your own cash. What’s cool about creative finance also is that for me, if real estate is a fire, creative finance is like gas that you can pour right on top of that fire and it just amplifies everything.”
Pace says that you can use creative finance in real estate for anything, from fixing and flipping to buying and holding to developing to wholesaling and everything in between.
Creative finance not only brings convenience, it also brings more profitability for both the buyer and the seller. Everyone wins financially.
In fact, creative finance helps you buy the deals everyone else finds too expensive. As Pace says in the episode above, 90% of the time when a buyer (usually a wholesaler or an investor) goes to talk to a seller, they find out they either don’t have enough equity or they’re asking for too much money, which makes them wary of striking a deal.
However, that’s not a problem for Pace, since with creative finance, he can swoop in and “just pick up all the great deals,” as he puts it.
Creative Finance: Never a Bad Idea
One of the big things that people always bring up is their negative perception of creative finance. They’re wary of it, and many think it’s even shady.
Well, Pace’s answer to this is clear: These ideas usually come from uneducated brokers or real estate agents who don’t know much about creative finance apart from what they’ve heard from others.
He then goes on and says that sometimes, he gets sellers who tell him their real estate agent told them creative finance was a bad idea.
Instead of convincing them of the opposite, Pace suggests they should talk to a real estate attorney who actually does this kind of transactions to learn more about how things go.
Once people understand how creative finance works, they are much more open to it.
Is Creative Finance Right for You?
If you’re wondering what kind of personality works for creative finance, well, we’ve got the answer for you. Or at least, Pace does!
When we asked him the question, he answered that anyone can work with creative finance. Yes, anyone.
Creative finance is just another skill that any of us could learn and use in our real estate endeavors. It doesn’t really take a specific type of person to be able to make money and succeed through it.
With the right education, you can completely change your real estate business. Because, believe or not, creative finance is ten times easier than cash deals, so, if you’re already doing cash deals, moving on to creative finance will make your business (and your life) easier to navigate and much more profitable as well!
As Pace says, “What I find is people that fail in wholesaling or fixing and flipping will succeed in creative finance because the reason they were failing is because they would call a lead and they couldn’t make the numbers work. So if creative finance fills that gap, then for me, I feel like it’s a much better solution than cash deals.”
We discuss all of this in more depth with Pace in the episode above, so make sure to watch it or give it a listen!