Posted on: February 09, 2021

We have today Pace Morby, an expert on putting terms together. Doing business based on terms is what keeps the business good for Pace. He is doing deal after deal, building his portfolio terms-based, while showing people how to do it and wholesale those deals from leads coming from TTP (Talking To People) or cold calls done by an outsourced team. He is a wizard in earning people’s trust and getting the job done. True enough, he has made over 2,000 appointments with leads that led him to Fifteen contracts, Six came from door knocking, last December 2020.

In this episode, Pace will share his experience doing business based on terms and talk about his support team: the cold callers, his lead manager, and his team for door-knocking that helped him do business smoothly. He will also share how he earns big in wholesaling deals and what drives him to get things done.

If you are into wholesaling and want to find something new to boost your business, this episode may help you find that light bulb. Don’t miss this episode!

Key Takeaways

  • Outsourcing his cold callers to get leads
  • How he looks at pains from leads in getting deals
  • What his lead manager does
  • Involving other decision-makers in dealing with elderly clients
  • The benefit of laying all options down for his clients
  • Lining up renters to take over the house and start earning
  • How he earns big in wholesaling deals
  • How he makes deals in justifying the value through terms
  • The philosophy on getting deals done
  • Getting deals from having a door-knocking team

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

Subscribe to Wholesaling Inc

Episode Transcription

Brent Daniels:
Hey, you’ve got Brent Daniels, TTP, and I am with the one and only Pace Morby. Pace here is going to just blow your mind. He’s doing deal after deal after deal every single week based on terms, and you’re building up not only your portfolio, but you show people how to put terms together and wholesale those deals.

Pace Morby:
Absolutely. And the best part about it is that these leads are coming from our original lead flow on Wholesale. So a lot of your students probably throwing a lot of these leads away …

Brent Daniels:
100%.

Pace Morby:
… because they can’t get the price, and because they don’t understand how to go in through the terms door, they just throw it away, and it goes in the trash bin.

Brent Daniels:
But I think that this third part here is so critical. The “you” part to this is they have to trust you to get the job done.

Pace Morby:
100%.

Brent Daniels:
They have to trust you, like you, they have to feel that you know what you’re doing, and a lot of that comes with the certainty that you bring to these appointments, a lot of this comes … But you’re the master at it, you’re a wizard at this. You’ve been studying sales for a long time. You’ve been on … How many appointments do you think you’ve been on in your lifetime when it comes to distressed property owners?

Pace Morby:
Easily 2000, probably.

Brent Daniels:
2,000 appointments. Guys, this is the absolute master I’m bringing you. No, it really is. People fly into Phoenix just to spend an hour with you driving around. And if you haven’t seen his Instagram, what’s your Instagram?

Pace Morby:
PaceJMorby, guys. PaceJMorby. Please follow.

Brent Daniels:
All right. So let’s get into it. Let’s talk about a deal literally that you did last night.

Pace Morby:
Let’s do it.

Brent Daniels:
Let’s break this all down. Let’s put it in. We’re in the classroom. Let’s use the board.

Pace Morby:
So real quick. Lead comes in. Where do leads come from?

Brent Daniels:
Leads come from talking to people.

Pace Morby:
Talking to people, right?

Brent Daniels:
Talking to people.

Pace Morby:
So basically right out of the gate, TTP started this lead right down our funnel. Our leads manager-

Brent Daniels:
So this is a cold call.

Pace Morby:
This is a cold call.

Brent Daniels:
Now, who do you have doing your cold calls?

Pace Morby:
So we have a company out of the Philippines. We have three full-time cold callers. They generate … And actually, we went to your video on YouTube to base our lead flow before it goes into Podio. If it doesn’t hit the pillars, it doesn’t go to our lead manager, right? So our lead manager works inside of Podio and runs our CRM once it’s already a warm lead.

Brent Daniels:
Got it.

Pace Morby:
Does that make sense?

Brent Daniels:
So guys, he’s got a team of people that are doing the cold calling from out of the Philippines, the four pillars that he’s talking about. Whenever they’re talking to them, they’re trying to get the condition, the timeline, the motivation, and the price out of the distressed property owners. Remember, we are focusing on distressed property owners, okay? We’re going after that group, but sometimes these people, they either don’t have equity or they want more than what we could give them from a wholesale basis.

Pace Morby:
In our world, we look at it as a completely different type of pain. So pain number one I look at is the wholesale pain, which is bankruptcy, divorce, my house is burning down, disrepair, I lost my job, whatever, catastrophic type of stuff. On the other side, there’s a lot of leads you give, people go, “Ah, I don’t know. I just want retail. I want this, I want that.” There’s pain there, right? They might have a job opportunity in another state, that’s actually a good thing, that they’re willing to relocate and leave their house behind, but they want a very specific number to let that happen. And unfortunately, as wholesalers, those deals don’t work for us, so we, for the most part, used to throw those away.

Brent Daniels:
Pace, I’ve thrown out hundreds.

Pace Morby:
Oh, no doubt.

Brent Daniels:
Hundreds. If my acquisition managers were here right now and they were like, “How many people wanted retail?” And guys, how many of your leads want retail? It’s a ton. [crosstalk 00:04:26]

Pace Morby:
It’s a lot, and it’s actually getting more and more as the market goes up and it turns into a stronger sellers market. It’s crazy.

Brent Daniels:
Yeah, absolutely. Okay, so it goes to your lead manager.

Pace Morby:
So lead manager, our lead manager’s name is Howie, okay?

Brent Daniels:
Howie.

Pace Morby:
So Howie calls the seller, “Hey, you spoke to one of our representatives yesterday. It sounds like blah-blah-blah-blah-blah confirms everything.” His job is to either set an appointment with an acquisition manager on the phone or to set an appointment with me. Typically, if there’s somebody 65 and older, they want to see somebody face-to-face, so I go out and I go on that appointment, right?

Brent Daniels:
Great tip.

Pace Morby:
They just want that comfort. You’re a real person. You’re not some BS artist, whatever. So Howie talks to this lady. She’s 83 years old. Her name is Penny. So we go to the appointment, because Penny actually asked us to come out on the appointment, and what Penny wanted was $200,000. Challenges, ARV is $200,000, retail value we would call, so what you could sell it for on the market, retail value. So if she sold it today for the highest possible amount of money, she could potentially get $200,000 for it.

Brent Daniels:
On the market, on the MLS with a real estate agent, the whole thing.

Pace Morby:
Right. So when we were TTPing and asking the four pillars, price, timing, all of the stuff, she said, “I want $200 grand.”

Brent Daniels:
Right.

Pace Morby:
Why would I go on that appointment?

Brent Daniels:
I wouldn’t.

Pace Morby:
Why would I train Howie to get me out on that appointment?

Brent Daniels:
Because there had to be some motivation there, there had to be some distress that you had pre-qualified out of her. Why did she want to sell?

Pace Morby:
She wanted to sell because she no longer wants to be away from her family. Her family is all taken away from Arizona. She has a daughter in Vegas and a son in Montana, and she says, “I need to go live with them, because now I’m 83.” I need somebody to start taking care of me, because I’m starting to have some issues. While my mind is in a good position, I want to make good decisions right now.”

Brent Daniels:
Got it. Yep.

Pace Morby:
So she’s 83. She has no time for BS. What did she say? She goes, “I absolutely do not want to sell through a real estate agent, and I own my house free and clear.”

Brent Daniels:
That important. Okay. So you know that she has a ton of equity.

Pace Morby:
Tons.

Brent Daniels:
She’s got all the equity in the world, and then you know that she’s motivated because her timeline’s short. She wants to make decisions right now while she feels that she can make good decisions. Now, does she have anybody helping her with this?

Pace Morby:
Yes.

Brent Daniels:
A lot of times, now this is really important guys, a lot of times when people are 70, 80, 90 years old, there’s another decision maker, whether it be a family member, whether it be a pastor, whether it be a sister or brother, whatever it is, that’s involved in this that they feel that they can rely on to make the decision.

Pace Morby:
Right. So she was ready to sign. I actually put a photo of this on my Instagram of her getting ready to sign the contract. We stopped her, and we told her, “Hey, penny? We need to have somebody, whether it’s your son in Montana or your daughter, to verify that this is a good decision for you.” And she goes, “Oh, my gosh. You guys would be willing to do that?” We said, “We don’t want the contract unless somebody else is involved.”

Brent Daniels:
Right.

Pace Morby:
So we got her son, who’s a CPA, involved, and we sent him the contract to verify that it was a good deal for his mom.

Brent Daniels:
This is an accountant.

Pace Morby:
It’s an accountant.

Brent Daniels:
This is an account who looks at numbers all day. This is somebody that’s unemotional, right? This is somebody that’s going to look at this from an analytical standpoint, make sure that it’s a good deal.

Pace Morby:
Hell, yeah. Absolutely.

Brent Daniels:
That scares a lot of us. A lot of times when you hear that the seller’s a CPA or they’re an attorney or a real estate agent, a lot of people get frightened. I’ve done so many deals where the son or the daughter or the cousin or whatever is an attorney or a CPA and everything, and it goes way smoother, because once they sign off on it, it’s done. It’s done, it’s done.

Pace Morby:
Stamp of approval. Done. They have no questioning. The good thing about this situation, whenever you run into an attorney, a CPA, or somebody at a high level of education when it comes to financial decisions, even if you don’t get that contract, they’re going to pick your deal apart, and you’re going to learn a lot about it just by talking to people and getting through that process. I told my partner, I said, “This is a good deal for her.” However, we structured a 0% deal with her, where my payments go directly to paying her down.

Brent Daniels:
0% interest.

Pace Morby:
0% interest.

Brent Daniels:
So break it down.

Pace Morby:
I essentially got a free house is the way I look at it.

Brent Daniels:
Right, yeah.

Pace Morby:
When I sent that over, I go, “Her CPA son is going to come back with some crazy amount of interest.” Not at all.

Brent Daniels:
Nope.

Pace Morby:
All he cared about was, “Is my mom getting $200,000, or are you going to take commissions and all that stuff out?” And we go, “No. $200,000 is net to her, and we’ll pay the closing costs.”

Brent Daniels:
So when we talk about price, terms, this is what we’re getting into, so let’s look at these terms here that you’ve put together. This is to add to your toolbox, okay? This is just an example of something that’s real life where you can get a property for essentially free. There’s a little bit of probably closing costs in there, right? But for a couple thousand dollars, get a free house. Not only that, we’ll get into what your cashflow is.

Pace Morby:
Right. So here’s the way the deal worked out. She wanted $200,000, so what I did is I created value here just to make sure she knew she was getting a good deal. I said, “Well, Penny, if you did sell for $200,000 today, you’d have to hire an agent.” I walked her through that whole process, and I said, “It’d probably take you about three months. Are you willing to wait that three months?” And she goes, “No. That’s why I was willing to meet with you guys.” “Perfect. I just want to confirm that.” Here I am, subtly planting little seeds to make sure that when I go for the close, it’s very clear what the value is that I’m providing. So I said, “Look, if you sold through a real estate agent, after the percentages and the commissions, you’re probably going to walk away with about $170,000 to $185,000, depending on the final offer and BINSR repairs and all that stuff.” So she goes, “Yep, you’re right.” I confirm that. I then move on to my offer. I said-

Brent Daniels:
BINSR repairs means the inspection repairs. Traditionally, a real estate inspector comes in, a home inspector comes in, picks apart the house, and then either you decrease the price, or you have to make a ton of repairs.

Pace Morby:
Either one costs you money, right? So depending on that situation, she was going to walk away with $170,000 to $185,000, but in her mind, her neighbor sold for $200,000 down the road, and she felt like her house was nicer. “So I need $200 grand.” I go, “Okay. Well, if you sold through anybody else, you’d get this. And in fact, if you sold through a traditional wholesaler,” or I’d said, “investor, what other offers are you getting?” She says, “I’m getting about $130,000 to $150,000.”
I said, “Okay. So if I came up to $200,000,” because I never say, “I’m going to give you $200,000,” because then you’ve got commission breath. “I want the deal! I want the deal!” So I said, “If I come up to $200,000, would you be willing to give me terms?” And she has no idea what that means, other than she goes, “Hmm, I’m not sure. What does that mean?” I go, “Well, what that means is I will pay your full asking price. In fact, I will pay $30,000 over anybody else if you would in turn let me make payments against that $200,000.”
She goes, “Yeah. I have no reason to say no to that. I don’t really need the cash. I’m mostly,” she goes, “Actually, I really like that, because how much would the payments be?” And so I said … I already knew, because when we went to the appointment, I had Howie, very important, I had Howie work out what I could rent this house out for at the end of the day. I already knew I could rent this out for $1,700 a month.

Brent Daniels:
As is.

Pace Morby:
As is. So I knew what the difference, if I was at $1,600, $1,500, $1,400, it was a great deal. 0% is a home run. It’s a free house. It’s crazy. So we worked out a deal, $1,300 per month, and I pay closing costs.

Brent Daniels:
And this is just until this $200,000 is paid off?

Pace Morby:
Until that $200,000 is paid off. Now, if I had a 3.5 interest rate or a 4.5 interest rate, what I actually would be buying that house for is about $400,000.

Brent Daniels:
Absolutely.

Pace Morby:
Crazy. So now what happens is we’ll take this. She’s going to move out on close of escrow, COE, so the day that we actually take control of the property and she moves out is January 15th. So on January 15th, I will already have a renter lined up, because I put in my deal that I have access to the property while she’s moving her stuff out.

Brent Daniels:
Love it.

Pace Morby:
So I’m going to show the property, I’ll have somebody already lined up to take over the property on February 1st, and that renter, like I said, is going to pay $1,700 a month. So I took over a property, mint condition, four bed, two-and-a-half bath, probably 10-year-old house, tile throughout, no carpet. It’s an older lady. You know she took care of the house. Cherry. Closing costs, the house is mine, and I’m immediately cash flowing from day one. This is a deal that two years ago I would have just thrown that away. “Ah, freaking sellers want too much money.”

Brent Daniels:
They want retail.

Pace Morby:
They want retail, and I’d throw it away, and meanwhile, I’m missing out on cashflow and long-term wealth. That’s the big thing that a lot of these guys are missing.

Brent Daniels:
And not only that, guys, here’s the thing. Not only can you keep this forever, cashflow, get it paid off, and now have it in your portfolio forever for long-term wealth, but you could, if you needed it, you could wholesale this deal.

Pace Morby:
Oh, my gosh. I could wholesale this deal right now. Believe it or not, even though I paid retail value for this, I could take this $200,000, because I bought it on such great terms, I could wholesale this out to somebody else at $220,000 …

Brent Daniels:
Easy.

Pace Morby:
… and what they do, they bring $20 grand to the table, my assignment fee, and they make the $1,300 payments, and they take over the free house. But I’m at a point in the game right now where I look at that $20 grand as more of an, it’s not as fun as owning a free and clear house, right? But when I first started and I was doing these types of term deals, I looked at that and I go, “Oh, my gosh. I can make as much money over-retail value home with the right terms as I could on any wholesale deal.” If the average wholesale deal right now in Phoenix is $12,000 to $15,000, maybe $17,000, dude, I can make $20 grand paying retail on somebody’s house? Bananas!”

Brent Daniels:
It is bananas, but not only that, but here’s the thing. There’s some principles here that you really have to just sink your teeth into. One, if you’ve got a paid-off house and they want more than you can offer them, start putting together the terms so that you can make that deal viable for you, make that deal possible for you, so that when you find somebody that has these properties that are paid off, wants more than what a wholesale price would be, start working with them on terms, okay? Listen, some people just want payments on a monthly basis to supplement their income. They don’t need the big money, they don’t the check.

Pace Morby:
I tell people all the time, the analogy for me in my life, the parallel, was when I had an F150. I loved that truck. You know how sometimes sellers get emotionally connected their house? I love this truck, I was emotionally connected, but it was only worth $4,000. This is about 10 years ago. I put it on Craigslist, and I said, “I want to sell this for $10,000.” I want to sell it for literally double or two-and-a-half times what it’s worth, but what I did is I said, “Will take payments.” Five minutes, done, sold, and that family made me a payment of $200 against that truck until that $10,000 was paid off. So it doesn’t matter if it’s a house or this shirt or anything else, you can create terms to justify the value.

Brent Daniels:
I love it, I love it.

Pace Morby:
Right? So the guy who bought the truck from me was a painter. He’s like, “I’m just getting into the business. I don’t have a big down payment. My credit’s not amazing.” I go, “No problem. Here’s your truck to get you into the business, $200 bucks a month.” Created crazy good value for him, and I made two-and-a-half times what it was worth. Win-win. Same thing for her. If she got that $170,000, she’d be $30,000 less than what I’m giving her, right? Crazy good deal for both sides.

Brent Daniels:
Love it. Love it, love it, love it. You have a philosophy that’s literally every appointment you go on, you should be able to get the deal.

Pace Morby:
100%.

Brent Daniels:
Right?

Pace Morby:
Yeah.

Brent Daniels:
How many deals a month?

Pace Morby:
We’re doing about 30 deals a month.

Brent Daniels:
30 deals a month, guys, with three callers.

Pace Morby:
With three callers, yeah.

Brent Daniels:
Right. Love it. And also, he has an incredible door-knocking team. “What? A door-knocking? Nobody’s talking about door-knocking,” but you guys are out there knocking on all the pre-foreclosures.

Pace Morby:
Dude, we had the biggest week of our year last week in December. We had 15 contracts, and 6 of those contracts came from door-knocking. Unbelievable, crazy good week.

Brent Daniels:
Incredible.

Pace Morby:
Three of those were wholesale, three of those were terms types of deals.

Brent Daniels:
Yeah. Love it. And he’s part of the TTP family.

Pace Morby:
That’s right, brother.

Brent Daniels:
All right, guys. Well, if you got value out of this, if you’re interested in being proactive in your business, make sure you go to wholesalinginc.com/ttp. It is the most proactive family in real estate investing, holesalinginc.com/ttp. Until next time, guys. Love you.

Pace Morby:
Yeah.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling