They’re Lying To You About Buying A House - Do THIS Instead! | Pace Morby

June 28, 2026

AI Summary

5 min read

Pace Morby has bought roughly $500 million in real estate using exactly $0 of his own money and $0 of bank credit. He has never signed a mortgage application or a personal guarantee. The debt he carries—about $400 million—is owed almost entirely to the sellers of the properties, not to banks. If the economy collapses and he loses everything, his credit score is untouched. This is not a boast about risk tolerance; it is a description of a system called creative finance, and Morby argues that for the first time in years, the conditions are perfect to use it.

The Mechanism: Creative Finance as the Only Bank You Need

Creative finance means buying an asset without a conventional bank loan. Morby’s primary strategy is called “subject-to” (sub2): he takes over the seller’s existing mortgage payments without formally assuming the loan. The deed transfers to him, but the mortgage stays in the seller’s name. He makes the payments through a third-party servicing company that pulls money from his account and pays the lender. The bank usually never notices. If a small bank that still holds the original loan does invoke the due-on-sale clause, Morby reverses the deed transfer and converts the deal into a lease-with-option, which the bank accepts. He learned this workaround from a bank manager 13 years ago, not from a lawyer.

Continue reading the full summary in the app — free to try.

Read Full Summary →

Free • No credit card required

Listen to Audio Summary Open in App

Never miss an episode of The Iced Coffee Hour

Get every new episode summarized in your inbox — free, ~5 minutes to read.

No spam. Unsubscribe anytime.

What you'll learn

1 (00:26) **Portfolio Overview** - Pace reveals ~$500M in real estate with $350-400M in seller-financed debt and zero personal liability
2 (02:37) **Why Creative Finance Matters Now** - Distressed sellers cannot sell conventionally due to rate lock-in, creating acquisition opportunities
3 (04:08) **Mechanics of a Sub-2 Deal** - Deed transfers while mortgage stays in seller’s name; third-party servicer handles payments
4 (08:02) **Due-on-Sale Clause Reality** - Rare enforcement; banks prefer updated records over foreclosure
5 (14:52) **Non-Recourse Structure** - Name never appears on loans or applications, protecting personal credit in downturns
6 (16:35) **Infinite ROI Model** - Zero money or credit invested at acquisition; net cash flow begins immediately
7 (20:59) **Finding Deals by Targeting Pain** - Foreclosure, divorce, job loss, and long days-on-market listings are the real targets

+ Full timestamped outline available in the app

Show Notes

Ethos: Get Your FREE Life Insurance Quote at https://ethos.com/icedcoffee HIMS: Get personalized and affordable care for Hair Loss, ED, Weight Loss, and more at https://Hims.com/ICED ZipRecruiter: Post jobs for free at https://ziprecruiter.com/ICH Shopify: Sign up for a $1 per month trial period at https://shopify.com/ich Follow @PaceMorby Here! *𝗖𝗢𝗡𝗡𝗘𝗖𝗧 𝗪𝗜𝗧𝗛 𝗨𝗦* 𝗜𝗚: https://www.instagram.com/icedcoffeehour 𝗝𝗔𝗖𝗞: https://www.instagram.com/jlsselby 𝗚𝗥𝗔𝗛𝗔𝗠: https://www.instagram.com/gpstephan 𝗖𝗹𝗶𝗽𝘀 𝗖𝗵𝗮𝗻𝗻𝗲𝗹: https://www.youtube.com/c/TheIcedCoffeeHourClips 𝗫.𝗰𝗼𝗺: https://x.com/TheICHpodcast 𝗧𝗶𝗸𝗧𝗼𝗸: https://www.tiktok.com/@theicedcoffeehour 𝗦𝗽𝗼𝘁𝗶𝗳𝘆: https://open.spotify.com/show/5c2uoXBQkOjIiCOf60jJj7 𝗔𝗽𝗽𝗹𝗲: https://podcasts.apple.com/us/podcast/the-iced-coffee-hour/id1515070058 00:00:00 - Intro 00:00:57 - $500M Real Estate, $400M Debt & Why Creative Finance Works 00:04:48 - Walking Through a Sub-2 Deal & Is This Even Legal? 00:09:01 - How Mortgages Really Work & Why Banks Don't Care 00:13:35 - Non-Recourse Debt, Infinite ROI & Biggest Losses 00:16:42 - Sponsor: Ethos 00:18:02 - Multiple Strategies, Creative Finance Defined & Building the Operation 00:23:23 - Why Smart Sellers Should Never Sell for Cash 00:25:54 - Graham's LA Property: The Lease Option Math 00:28:35 - The Afterparty Strategy, Homeless Lady Deal & Where He Buys 00:31:14 - Sponsor: Hims 00:32:33 - Sponsor: ZipRecruiter 00:33:29 - Execution, creativelisting.com & The Gator Program 00:36:00 - Best Deal Ever & Buying Graham's Primary Residence 00:38:01 - 10-Year Predictions & The Affordability Crisis 00:41:35 - The Shrinking Middle Class & Jason Oppenheim 00:43:52 - Five Trends: Co-Living, Oxford House, PadMission 00:46:42 - How the House Determines the Strategy & PadSplit 00:51:26 - Where He Won't Buy: California & Blue States 00:54:04 - Fixing Housing & Middle Class Survival Strategies 00:56:31 - The RV Park Buy Box & Why Brokers Don't Get Creative Finance 00:58:00 - Sponsor: Shopify 00:59:40 - Logic Over Sales Tactics: Accidental Landlords & workamper.com 01:02:00 - Car Washes & Why RV Parks Are Most Profitable 01:05:19 - Oil Field Parks & Why BRRRR Is Dangerous 01:08:09 - Multifamily Bloodbath & Ken McElroy 01:09:35 - The Great Rent vs Buy Debate 01:17:32 - Lending Money: Double Closes & Gap Lending 01:22:34 - Worst Deal Ever & Why Private Jets Are Irresponsible 01:26:12 - Tiers of Wealth: $1M to $100M+ 01:28:53 - Family Offices & Asset Protection 01:31:58 - What He Spends Money On & Creative Finance on Trucks 01:36:00 - Real Estate Agents vs Brokers & Income Tiers 01:39:19 - The Dangers of Creative Finance & Rapid Fire 01:43:45 - Final Advice & Wrap-Up For sponsorships or business inquiries reach out to: [email protected] Apply for The Index Membership: https://entertheindex.com/ For Podcast Inquiries, please DM @icedcoffeehour on Instagram! *Some of the links and other products that a