The Iced Coffee Hour

Episode: The Housing Market ‘Great Reset’ - How To Buy A Home For $0!
Guests: Pace Morby
Hosts: Graham Stephan & Jack Selby
Date: September 7, 2025

Brief Overview

This episode features Pace Morby, a prolific real estate investor specializing in creative financing strategies. Together with hosts Graham Stephan and Jack Selby, they dive deep into the evolving U.S. housing market, the impacts of rising rates, investment opportunities in “the great reset,” and how everyday people—regardless of credit or savings—can start buying homes for little to no money down. The conversation also tackles the wider economic future, automation's effect on the workforce, and the psychology that prevents most people from taking action.

Key Discussion Points & Insights

1. The State of the Housing Market

Investor’s Market vs Retail Buyer’s Market:
- “It is the best time to buy real estate if you are an investor. It's the worst time if you're a retail buyer.” – Pace (00:24)
Massive Price Reductions:
- Sellers are dropping prices but investors like Pace approach them with creative finance instead of negotiating down.
- “Stop reducing your price. Just give me seller finance. I'll give you the number you want, but you just gotta take payments over time.” – Pace (03:04)
Creative Finance Basics:
- Eliminate banks, credit checks, and traditional down payments by buying directly from sellers.

2. Creative Financing in Action

Pace’s Portfolio & Cash Flow:
- Owns ~2,000 units, nets close to $1M/month (with partners) (01:19-01:36).
- Example: A 161-unit building bought with seller financing brings $77,000/month net, no bank or credit needed (02:40).
Single Family, Co-Living, and RV Parks:
- RV parks as high cash flow, low-maintenance investments: “You're renting dirt... There's no maintenance, no issues.” – Pace (04:07)
Subject-To & Seller Finance:
- Everyday people can buy “sub-2” houses (subject to the existing mortgage), often with $0 down.

3. Real-World Inspiration—Maddie Story

Helping the Homeless Buy a Home:
- Maddie, a previously homeless woman, leveraged creative finance to move from a shelter into a home (06:31).
- She secures her first deal by acting as a connector, not needing a license, bank, or money (08:39).
- Her path: finds a buyer’s criteria via Facebook, brings the deal, earns a $5K fee. Buys her next with “subject to,” rents out rooms via PadSplit, nets $2K/month living expense-free (10:06).
- “If I do it, I can promise that anybody can do it.” – Pace (06:31)

4. Risks, Rental Income & PadSplit Model

Risks for Subject-To Buyers:
- If tenants stop paying? “If these tenants don't pay, then she's not educated... You don't buy something that you can't handle.” – Pace (10:22)
PadSplit:
- Nationwide club-based co-living management, skirts landlord-tenant laws and rent control.
- “They fill the rooms, collect the money, the occupancy... even if you had two or three tenants move out at the same time, this property will still cash flow.” – Pace (11:20)

5. Macro Market Predictions

Cycle Charts, Rate Cuts, Crash Pundits:
- Pace disagrees with mainstream crash projections; expects prices to stabilize and climb again after a 2025-2026 rate cut (13:56-14:45).
- “I don't think that's going to happen... The only people that want the market to crash are YouTubers...” – Pace
Interest Rate Debate:
- “If he (Trump) can get interest rates down closer to 2 or 3%, how is the market going to crash? It will do the exact opposite.” – Pace (14:45)

6. The Retail Buyer Paradox

Why Most Don’t Buy Creatively:
- Education & psychology are key barriers—information is out there, but most won’t act (18:28-19:30).
- Renting vs. Owning
  - Average net worth for renters: $8,400; for homeowners: $400,000 (20:08-20:12).
  - Arguments: Renters rarely actually save or invest the difference; the American dream of home ownership is a “forced savings account” (23:43).
Hosts’ Counterpoints:
- Graham: “Renting is a superior option to buying unless you plan to keep the house for at least 10 years...” (20:35)
- Jack: “I don't think anyone's gonna do that. I have so many friends... who haven't saved.” (22:04)

7. Mindset & How to Deploy Cash

Make vs. Save Mentality:
- “You're thinking about, how do I save money rather than how do I make money? That's the difference between the Dave Ramsey audience and me.” – Pace (00:31, 31:28)
Active Lending & Joint Ventures:
- Pace lends to real estate developers/businesses, targeting returns much higher than most traditional investments (30:49-32:51).
- Hard money, private lending, and JV splits explained for both advanced and everyday investors.

8. Syndications, Variable Debt, & Investor Pitfalls

Why Recent Syndications Fail:
- “I have a fund... The only assets I buy with other people's money are properties with no variable rate interest.”
- Syndicators with floating debt are facing “trillion-dollar losses.”
Everyday Investors’ Options:
- Most won't access the commercial “fire sales”; best bet is creative finance or lending, or investing via platforms like fractional.com (49:35-55:12).

9. Club Model, Legal Loopholes, and PadSplit

Bypassing Rent Controls:
- The “Membership Club” approach (via PadSplit) helps skirt rent control laws and traditional evictions.
- “PadSplit's already done this. They've been in court, they've won multiple times...” – Pace (56:18)
- Rapid expansion of co-living is fundamental in both value and affordable solutions.

Notable Quotes & Memorable Moments

On Action:
“If I could invent one pill, it would be the take action, stop being in analysis paralysis mode pill.” – Pace (86:09)
On Creative Finance as an Equalizer:
“I'm not an agent. I'd like to make an offer on your house today, but I'd like you to let me take over your PACE payments, we get a yes out of 20 of those calls.” – Pace (58:02)
On AI and The Future of Work:
“My hand is being forced... Prop AI outperforms 15 human beings... Everybody's losing their jobs and where are they going to go? That's my question to you.” – Pace (67:14-68:52)
On UBI:
“I think universal basic income is going to keep is the only way to keep people surviving.” – Pace (67:04)
On Market Opportunity:
“You can either be the 90% that hide their head in the sand or you can be the 10% of people that take advantage of the 90%...” – Pace (74:08)
On Feeling Wealthy:
“Striver's curse... I feel like I haven't done the thing that I set out to do. I have a lot more gas in the tank.” – Pace (91:33)
ROI on Happiness:
“Having a beautiful house for your children to run around in... Greatest ROI I've ever had.” – Pace (93:09)

Timestamps for Key Segments

00:24 — Best time to buy real estate (for investors)
01:19–01:36 — Portfolio overview and cashflow
02:40 — Seller finance deal details
06:30–10:06 — Maddie’s journey from homelessness to homeowner
11:18 — PadSplit overview and risk mitigation
13:56 — Market cycles and rate speculation
18:28–19:30 — Why most people won’t buy creatively (education gap)
20:08–20:12 — Average net worth: renters vs. owners
23:43–24:04 — Forced savings argument for homeownership
31:28 — “Save” vs. “Make” — Dave Ramsey vs. Pace mindset
49:35–55:12 — Syndications, commercial deals, and what’s left for most investors
56:18 — Legal defense of PadSplit and membership clubs
67:04 — Fear of UBI and automation’s impact
74:08 — 90% sit idle; 10% act
86:09 — The action paradox; why most won’t do it
91:33–92:46 — Pace on feeling “rich” and real wealth
93:09 — Highest-ROI happiness: home, family, and giving

Where to Learn More & Take Action

For creative deals / education:
- creativelisting.com, dealsauce.io, PadSplit, Fractional.com
Pace’s buy criteria: pacesbuybox.com
Tour updates: whereispace.com
Connect for JV/lending opportunities: Pace’s Instagram

Final Takeaways

Creative finance is a powerful—and accessible—tool for anyone, regardless of credit, savings, or background.
Biggest limiters are mindset and willingness to act, not market conditions or information scarcity.
The housing market isn’t “crashing,” but opportunity is shifting; only those who adapt, learn, and move will benefit.
The gap between investors and “retail” buyers grows; education and action can close it.
Workforce, automation, and UBI are converging into an uncertain but opportunity-filled future.
Happiness and impact, not just asset count, drive true wealth.

The Iced Coffee Hour

Episode: The Housing Market ‘Great Reset’ - How To Buy A Home For $0!
Guests: Pace Morby
Hosts: Graham Stephan & Jack Selby
Date: September 7, 2025

Brief Overview

Key Discussion Points & Insights

1. The State of the Housing Market

Investor’s Market vs Retail Buyer’s Market:
- “It is the best time to buy real estate if you are an investor. It's the worst time if you're a retail buyer.” – Pace (00:24)
Massive Price Reductions:
- Sellers are dropping prices but investors like Pace approach them with creative finance instead of negotiating down.
- “Stop reducing your price. Just give me seller finance. I'll give you the number you want, but you just gotta take payments over time.” – Pace (03:04)
Creative Finance Basics:
- Eliminate banks, credit checks, and traditional down payments by buying directly from sellers.

2. Creative Financing in Action

Pace’s Portfolio & Cash Flow:
- Owns ~2,000 units, nets close to $1M/month (with partners) (01:19-01:36).
- Example: A 161-unit building bought with seller financing brings $77,000/month net, no bank or credit needed (02:40).
Single Family, Co-Living, and RV Parks:
- RV parks as high cash flow, low-maintenance investments: “You're renting dirt... There's no maintenance, no issues.” – Pace (04:07)
Subject-To & Seller Finance:
- Everyday people can buy “sub-2” houses (subject to the existing mortgage), often with $0 down.

3. Real-World Inspiration—Maddie Story

Helping the Homeless Buy a Home:
- Maddie, a previously homeless woman, leveraged creative finance to move from a shelter into a home (06:31).
- She secures her first deal by acting as a connector, not needing a license, bank, or money (08:39).
- Her path: finds a buyer’s criteria via Facebook, brings the deal, earns a $5K fee. Buys her next with “subject to,” rents out rooms via PadSplit, nets $2K/month living expense-free (10:06).
- “If I do it, I can promise that anybody can do it.” – Pace (06:31)

4. Risks, Rental Income & PadSplit Model

Risks for Subject-To Buyers:
- If tenants stop paying? “If these tenants don't pay, then she's not educated... You don't buy something that you can't handle.” – Pace (10:22)
PadSplit:
- Nationwide club-based co-living management, skirts landlord-tenant laws and rent control.
- “They fill the rooms, collect the money, the occupancy... even if you had two or three tenants move out at the same time, this property will still cash flow.” – Pace (11:20)

5. Macro Market Predictions

Cycle Charts, Rate Cuts, Crash Pundits:
- Pace disagrees with mainstream crash projections; expects prices to stabilize and climb again after a 2025-2026 rate cut (13:56-14:45).
- “I don't think that's going to happen... The only people that want the market to crash are YouTubers...” – Pace
Interest Rate Debate:
- “If he (Trump) can get interest rates down closer to 2 or 3%, how is the market going to crash? It will do the exact opposite.” – Pace (14:45)

6. The Retail Buyer Paradox

Why Most Don’t Buy Creatively:
- Education & psychology are key barriers—information is out there, but most won’t act (18:28-19:30).
- Renting vs. Owning
  - Average net worth for renters: $8,400; for homeowners: $400,000 (20:08-20:12).
  - Arguments: Renters rarely actually save or invest the difference; the American dream of home ownership is a “forced savings account” (23:43).
Hosts’ Counterpoints:
- Graham: “Renting is a superior option to buying unless you plan to keep the house for at least 10 years...” (20:35)
- Jack: “I don't think anyone's gonna do that. I have so many friends... who haven't saved.” (22:04)

7. Mindset & How to Deploy Cash

Make vs. Save Mentality:
- “You're thinking about, how do I save money rather than how do I make money? That's the difference between the Dave Ramsey audience and me.” – Pace (00:31, 31:28)
Active Lending & Joint Ventures:
- Pace lends to real estate developers/businesses, targeting returns much higher than most traditional investments (30:49-32:51).
- Hard money, private lending, and JV splits explained for both advanced and everyday investors.

8. Syndications, Variable Debt, & Investor Pitfalls

Why Recent Syndications Fail:
- “I have a fund... The only assets I buy with other people's money are properties with no variable rate interest.”
- Syndicators with floating debt are facing “trillion-dollar losses.”
Everyday Investors’ Options:
- Most won't access the commercial “fire sales”; best bet is creative finance or lending, or investing via platforms like fractional.com (49:35-55:12).

9. Club Model, Legal Loopholes, and PadSplit

Bypassing Rent Controls:
- The “Membership Club” approach (via PadSplit) helps skirt rent control laws and traditional evictions.
- “PadSplit's already done this. They've been in court, they've won multiple times...” – Pace (56:18)
- Rapid expansion of co-living is fundamental in both value and affordable solutions.

Notable Quotes & Memorable Moments

On Action:
“If I could invent one pill, it would be the take action, stop being in analysis paralysis mode pill.” – Pace (86:09)
On Creative Finance as an Equalizer:
“I'm not an agent. I'd like to make an offer on your house today, but I'd like you to let me take over your PACE payments, we get a yes out of 20 of those calls.” – Pace (58:02)
On AI and The Future of Work:
“My hand is being forced... Prop AI outperforms 15 human beings... Everybody's losing their jobs and where are they going to go? That's my question to you.” – Pace (67:14-68:52)
On UBI:
“I think universal basic income is going to keep is the only way to keep people surviving.” – Pace (67:04)
On Market Opportunity:
“You can either be the 90% that hide their head in the sand or you can be the 10% of people that take advantage of the 90%...” – Pace (74:08)
On Feeling Wealthy:
“Striver's curse... I feel like I haven't done the thing that I set out to do. I have a lot more gas in the tank.” – Pace (91:33)
ROI on Happiness:
“Having a beautiful house for your children to run around in... Greatest ROI I've ever had.” – Pace (93:09)

Timestamps for Key Segments

00:24 — Best time to buy real estate (for investors)
01:19–01:36 — Portfolio overview and cashflow
02:40 — Seller finance deal details
06:30–10:06 — Maddie’s journey from homelessness to homeowner
11:18 — PadSplit overview and risk mitigation
13:56 — Market cycles and rate speculation
18:28–19:30 — Why most people won’t buy creatively (education gap)
20:08–20:12 — Average net worth: renters vs. owners
23:43–24:04 — Forced savings argument for homeownership
31:28 — “Save” vs. “Make” — Dave Ramsey vs. Pace mindset
49:35–55:12 — Syndications, commercial deals, and what’s left for most investors
56:18 — Legal defense of PadSplit and membership clubs
67:04 — Fear of UBI and automation’s impact
74:08 — 90% sit idle; 10% act
86:09 — The action paradox; why most won’t do it
91:33–92:46 — Pace on feeling “rich” and real wealth
93:09 — Highest-ROI happiness: home, family, and giving

Where to Learn More & Take Action

For creative deals / education:
- creativelisting.com, dealsauce.io, PadSplit, Fractional.com
Pace’s buy criteria: pacesbuybox.com
Tour updates: whereispace.com
Connect for JV/lending opportunities: Pace’s Instagram

Final Takeaways

Creative finance is a powerful—and accessible—tool for anyone, regardless of credit, savings, or background.
Biggest limiters are mindset and willingness to act, not market conditions or information scarcity.
The housing market isn’t “crashing,” but opportunity is shifting; only those who adapt, learn, and move will benefit.
The gap between investors and “retail” buyers grows; education and action can close it.
Workforce, automation, and UBI are converging into an uncertain but opportunity-filled future.
Happiness and impact, not just asset count, drive true wealth.

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

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Summary

The Iced Coffee Hour

Brief Overview

Key Discussion Points & Insights

1. The State of the Housing Market

2. Creative Financing in Action

3. Real-World Inspiration—Maddie Story

4. Risks, Rental Income & PadSplit Model

5. Macro Market Predictions

6. The Retail Buyer Paradox

7. Mindset & How to Deploy Cash

8. Syndications, Variable Debt, & Investor Pitfalls

9. Club Model, Legal Loopholes, and PadSplit

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Where to Learn More & Take Action

Final Takeaways

Summary

The Iced Coffee Hour

Brief Overview

Key Discussion Points & Insights

1. The State of the Housing Market

2. Creative Financing in Action

3. Real-World Inspiration—Maddie Story

4. Risks, Rental Income & PadSplit Model

5. Macro Market Predictions

6. The Retail Buyer Paradox

7. Mindset & How to Deploy Cash

8. Syndications, Variable Debt, & Investor Pitfalls

9. Club Model, Legal Loopholes, and PadSplit

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Where to Learn More & Take Action

Final Takeaways