Pace Morby’s Real Estate Secret: How to Find the "Bunnies" & Get Rich

Ever feel like the traditional path to wealth is just one giant loop of trading your time for a paycheck? You aren't alone. In a recent episode of the School of Hard Knocks Podcast, real estate mogul Pace Morby sat down to break down exactly how he built a half-billion-dollar portfolio and why most people have the wrong idea about how to get rich in real estate.

Pace didn’t start at the top. He began as a contractor, running a massive construction business doing $25 million a year. On paper, he was successful. But a blunt conversation with a client named Bethany changed everything. She told him, “You’re not in real estate. You’re a slave to me. I own the house; all you’re doing is working for me”. She pointed out that while she could replace a contractor or an agent with a quick Google search, the person who owns the asset is non-replaceable.

Finding the "Bunnies"

The most legendary part of Pace’s journey, and the core of his investment philosophy, is the story of his very first deal. He was trying to buy a house from a retiring school teacher named Janie. Other investors were outbidding him, offering $165,000 when his mentor told him not to go over $150,000.

Instead of walking away or getting into a bidding war, Pace asked a simple, human question: "Is there anything I can do to help you?".

It turned out Janie’s biggest stressor wasn't the price of the house. It was three Flemish Giant bunnies the size of small children that she couldn't take with her to retirement. Pace called his mom, found the bunnies a home, and Janie sold him the house for $150,000, turning down higher offers because he was the only one who actually solved her problem.

From that day on, Pace’s logo became bunny ears. His secret? Stop looking at the property and start looking for the "bunnies", the actual problem the seller needs solved.

Breaking Free from Banks

One of the most eye-opening parts of the podcast is Pace’s take on Creative Finance. Most people think you need a high credit score and a massive down payment to buy real estate. Pace argues that going to a bank is actually "stupid" when you can go directly to the seller.

Through strategies like "Subject To" (SubTo), he takes over existing mortgage payments, often with 0% interest and no credit checks. He explained it simply using an iPhone analogy: if you want to sell your old phone for $500 but someone offers you $600 paid out in $50 monthly installments, you make more money, and the buyer doesn't need a lump sum upfront. In real estate, this allows him to acquire massive assets, like an 85-pad RV park, by solving the seller’s tax problems rather than asking a bank for permission.

The Mindset of a Visionary

Even after making $25,000 on his first wholesale deal, it took Pace four years to leave the construction world. Why? Mindset. He was stuck in his identity as a contractor.

He eventually realized that to scale to a nine-figure business, he couldn't do it alone. Drawing from the book Rocket Fuel, Pace explains that every business needs a Visionary (the person who attracts energy and ideas) and an Integrator (the person who handles the operations). Most entrepreneurs stay small because they are "control freak" "bitches" who refuse to share the pie or delegate. Pace’s advice is clear: find a partner who is your polar opposite so you can focus on what you’re actually good at.

Who Are Your Five Friends?

Pace ends with a challenge: audit your circle. You are the average of the five people you spend the most time with. If your "Board of Advisors" consists of people who aren't where you want to be, you’ll stay stuck in their frequency.

Real estate isn't just about buildings; it’s about proximity, problem-solving, and the patience to let your seeds grow. If you're willing to stop yelling at the seeds and start looking for the bunnies, the wealth will follow.

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Easy Takeaway: Success in real estate isn't about having the most money; it's about being the best problem solver. If you find the "bunnies" (the seller's true pain point), you can close deals that others can't touch.

Favorite Quote: "Concentration builds wealth and diversification keeps it".

Relevant Question: "What is your problem?" (The most important question to ask any seller to find the real deal).

Source: They’re Lying To You About Buying Real Estate… Here’s How To Get Rich | Pace Morby, School of Hard Knocks Podcast, YouTube.