Podcast Summary: The Mello Millionaire with Tommy Mello
Episode: Making Millions in Real Estate, No Money Down with Pace Morby
Release Date: June 6, 2025

Introduction

In this electrifying episode of The Mello Millionaire, host Tommy Mello engages in a deep dive with Pace Morby, a trailblazing real estate investor known for his mastery in creative financing. With a portfolio boasting over 1,800 properties and a community of 10,000 students, Pace shares his unconventional strategies for building wealth in real estate without relying on traditional banks or credit.

Meet Pace Morby: The Creative Finance King

Pace Morby positions himself as a key player in a niche real estate market that defies traditional barriers. From the outset, Pace emphasizes his dedication to excellence in his chosen field:

Pace Morby [00:00]:
"I'm in a very interesting niche in real estate. A niche that makes a tremendous amount of money, doesn't require banks, doesn't require credit, literally none of that. I'm like, let me stay in my lane because I want... I want to be good at it, I want to kick everybody's ass at my one thing."

Tommy introduces Pace as a "creative finance king," highlighting his unique approach to structuring deals that most investors overlook.

Key Discussions and Insights

1. The Power of Creative Financing

Pace delves into the essence of creative financing, emphasizing the importance of unconventional deal structures to circumvent traditional financing hurdles:

Pace Morby [04:31]:
"I'm in a very interesting niche in real estate, a niche that makes a tremendous amount of money, doesn't require banks, doesn't require credit. Literally none of that."

Tommy complements this by defining seller financing for listeners unfamiliar with the concept:

Tommy [05:50]:
"Seller financing, a real estate transaction in form of creative finance, where the seller acts as the lender, allowing the buyer to pay the seller in installments instead of securing a mortgage from the bank."

2. Seller Financing Explained

Pace elaborates on how seller financing can be a game-changer for both buyers and sellers, especially those looking to minimize capital gains taxes:

Pace Morby [05:10]:
"When a seller sells something, right? They have... they want to be done in with their money. If I buy it on terms, he doesn't have to pay the capital gains tax."

This method allows sellers to receive steady income without the burden of lump-sum taxation, while buyers like Pace secure properties with minimal upfront investment.

3. Investing in RV Parks and Real Estate Niches

Pace shares his strategic focus on RV parks, highlighting their scalability and consistent cash flow:

Pace Morby [06:11]:
"I've just been buying a ton of RV parks lately because Blackstone and all these other companies are going after RV parks... The cash flow, $25 grand a month right out of the gate."

He contrasts RV parks with single-family homes, noting the latter's management complexities and higher risk factors.

4. Comparison with Other Syndicators

A discussion arises comparing Pace's approach to that of industry giants like Grant Cardone:

Pace Morby [12:07]:
"I've spent a lot of time with Grant. His net worth is about 1.4 billion. I think their assets under management is closer to $5 billion."

Pace criticizes the high fees and aggressive scaling methods of some syndicators, advocating for a more sustainable and self-reliant investment model.

5. Diversification in Real Estate Investments

Pace emphasizes the importance of diversifying within the real estate sector to mitigate risks:

Pace Morby [06:11]:
"You've got to diversify. You got to go mobile home park, RV park, small multi-family."

By spreading investments across various property types, investors can ensure steady income streams and resilience against market fluctuations.

6. Scaling Home Service Businesses

The conversation shifts to the challenges of scaling home service businesses compared to real estate investments:

Tommy [18:13]:
"Most companies really, really, really got to work hard to get past a couple million bucks."

Pace concurs, highlighting the operational complexities and reliance on human capital that make real estate a more appealing and manageable investment avenue.

7. Mentorship and Learning from Influencers

Pace credits his success to the invaluable mentorship he received, particularly from John Bohm, and the influence of industry leaders like Dan Martell:

Pace Morby [19:00]:
"I've looked up to... Dan Martell. I've hired him as a coach. He's become a good friend."

He underscores the importance of surrounding oneself with knowledgeable mentors to accelerate learning and success.

8. Advice for Beginners in Real Estate

For newcomers to the real estate market, Pace offers pragmatic advice:

Pace Morby [10:23]:
"Join a team. Get on somebody else's team that's buying real estate. Find somebody that's doing exactly what you want."

He advocates for hands-on learning and mentorship as the fastest pathways to mastering real estate investments.

9. Personal Insights and Financial Guidance for the Next Generation

Pace shares his approach to teaching his son financial responsibility and investment principles from a young age:

Pace Morby [19:48]:
"As a father for my son, I got him his first rental. He had to earn his first rental. We bought, took over somebody else's payments."

This strategy instills a sense of responsibility and entrepreneurial spirit, ensuring his children are well-equipped to manage and grow their wealth.

Notable Quotes with Timestamps

• Pace Morby [00:00]:
  "I'm in a very interesting niche in real estate... I want to be good at it, I want to kick everybody's ass at my one thing."

• Pace Morby [04:31]:
  "I'm in a very interesting niche in real estate... literally none of that."

• Pace Morby [10:23]:
  "Join a team. Get on somebody else's team that's buying real estate."

• Pace Morby [19:00]:
  "I've hired him as a coach. He's become a good friend."

• Pace Morby [21:01]:
  "The only thing that's certain in life... real estate will be around in 30, 40 years."

• Tommy Mello [21:18]:
  [Closing remarks with the "Tommy Truth" advice]

Conclusions and Takeaways

This episode of The Mello Millionaire underscores the transformative potential of creative financing in real estate investments. Pace Morby's methods illustrate how bypassing traditional financial barriers can lead to substantial wealth creation. Key takeaways include:

1. Embrace Creative Financing: Utilize seller financing and other unconventional deal structures to acquire properties with minimal upfront costs.
2. Focus on Niche Markets: Investing in RV parks and mobile home parks can offer steady cash flow with lower management complexities compared to single-family homes.
3. Seek Mentorship: Learning from experienced mentors accelerates success and provides invaluable insights into the market.
4. Diversify Within Real Estate: Spread investments across different property types to mitigate risks and ensure sustainable income.
5. Long-Term Planning: Teaching financial responsibility and investment principles to the next generation ensures continued legacy and wealth growth.

In his closing remarks, Pace Morby emphasizes the enduring value of real estate, cautioning against sectors vulnerable to technological disruption like home services. He encourages listeners to focus their efforts on areas poised for longevity and growth.

Final Thoughts

Pace Morby's unabashed confidence and innovative strategies offer a fresh perspective for both burgeoning and seasoned real estate investors. His commitment to mastering a specific niche and his emphasis on ethical, sustainable growth make this episode a must-listen for anyone aspiring to build substantial wealth through real estate.

Tune in next week for another insightful episode of The Mello Millionaire as Tommy Mello continues to uncover the strategies behind extraordinary success with the sharpest minds in business.