In a world where traditional real estate advice often revolves around “save 20% down” and “get a good credit score,” Pace Morby is an anomaly. A former contractor who once described himself as a “slave to the construction site,” Morby has built a nine-figure real estate empire by mastering a skill most investors ignore: the art of the human connection.
In a recent deep-dive on the School of Hard Knocks podcast, Morby shared the blueprint that took him from manual labor to owning thousands of units across the country.
The “Bunny” Philosophy: Solving People, Not Houses
The most striking element of Morby’s brand is his logo, which features a pair of bunny ears. The origin story is a masterclass in negotiation.
Early in his career, Morby visited a seller who had been hounded by 30 other investors. While everyone else was focused on the square footage and the foundation, Morby noticed three giant Flemish bunnies in the backyard. The seller was paralyzed because she couldn’t find a place to move that would allow her pets.
“I didn’t buy the house; I found a home for her bunnies,” Morby explains. By solving her personal problem first, he secured the deal. This “Bunny” philosophy—finding the hidden pain point—is now the cornerstone of his business. He argues that if you solve the person’s problem, the real estate takes care of itself.
The Power of Creative Finance: SubTo and Seller Financing
For Morby, the bank is the ultimate obstacle to wealth. He advocates for “Creative Finance,” specifically strategies like Subject To (SubTo) and Seller Financing.
- Subject To: This involves taking over a seller’s existing mortgage payments. The debt stays in the seller’s name, but the deed transfers to the investor. It allows investors to acquire properties without qualifying for a new loan or needing a high credit score.
- Seller Financing: Here, the seller acts as the bank. Instead of receiving a lump sum, they receive monthly installments with interest.
Morby highlights that these methods are often better for sellers, too. By spreading out payments, sellers can avoid massive capital gains tax hits while creating a consistent “mailbox money” retirement income.
Escaping the “Contractor Trap”
One of the most pivotal moments in Morby’s life came from a harsh critique by a mentor. At the time, Morby was a successful contractor, but he was working 100-hour weeks. The mentor told him, “I can replace you with a Google search. The person who owns the house is non-replaceable.”
This sparked a realization: true wealth isn’t found in the labor of building a house, but in the ownership of the asset. Morby emphasizes that many entrepreneurs stay stuck because they are “visionaries” trying to do the work of “integrators.” To scale, you must find a partner who is your polar opposite—someone who can organize the chaos you create.
The “Board of Advisors” and Personal Brand
Morby’s advice for those starting out is less about spreadsheets and more about psychology. He suggests two main actions: - Audit Your Circle: Morby believes your net worth is the average of your five closest friends. If your “Board of Advisors” (your peer group) consists of people who aren’t where you want to be, you will remain stagnant.
- Build a Personal Brand: In the digital age, if people don’t know who you are, money cannot flow to you. Morby views his social media and public presence as the modern “sign on the door” that invites opportunity.
The Verdict on Real Estate
While many are lured by the “get rich quick” promises of E-commerce or Crypto, Morby remains a real estate fundamentalist. He argues that real estate is the only “certain” vehicle because it provides a physical necessity—housing—that cannot be replaced by AI or a digital trend.
“It took me four years to quit construction because I didn’t believe in myself,” Morby admits. But once he mastered the language of creative finance and the empathy of the “Bunny” philosophy, the transition from worker to owner became inevitable.
For Pace Morby, real estate isn’t just about property; it’s about the freedom to stop being “replaceable” and start building a legacy.
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