The mechanics of this are not you you are not there's nothing else you need intellect wise you just need to learn a few things and then go out there and start calling taking action 99% of people in life don't have the life that you want so find the people that have the life you want and listen to only those people. Welcome back to another video I've got Pace Morby here with me and we are just knocking out content you know it's so easy to do I love just talking with you we can cover everything anything. Get yourself a friend like Jerry Norton.
You know what I'm saying? Like you could just talk about real estate all day long and talk about life and family and future and legacy and all that kind of stuff. It's easy to talk to. We should just do a live where we just start at 9 a.m.
and go till 5 p.m. That would be so easy. Just see where it goes. Let's do something challenging, bro.
Yeah. So guys, we got a really great topic today. This is something that comes up quite often in my community more than I ever have seen before. I think it's going to continue to happen. I'm actually really proud of this.
I'm... impressed by this. You have this same thing happen quite a bit that you're starting to see.
And it's a younger group of people coming into real estate investing. And we're seeing now high schoolers and we're seeing kids right out of high school. I've got some students that are like, you know, dropped out of college because they're doing so well with their real estate business.
And so the question is around, you know, I'm 17 years old. So the question we got on one of our videos that patient I did, I'm 17 years old. How do I get started in real estate?
I can't sign. I can't sign on a contract yet. Do I get a co-signer?
You know, I had one kid, it was really funny. He's, this is hilarious. He said, so I'm 17. I got a deal and my dad said that he wouldn't sign the contract for me. What do I do? So I said, go ask your mom.
Right? Am I right? So my kids do. Dad says, no, go ask mom.
We're the other way around. Yeah. So it was kind of funny, but I'm just like, dude how cool is that yeah it's really cool you're 17 you found a deal you know what were you doing at 17 oh my gosh i mean what were you working to make money at 17 so i was so dumb they held me back so i didn't graduate high school till tracks 19 tracks i turned i graduated like i turned 19 june 15th graduated you know june 2nd and went on my church mission you know july whatever oh my gosh like 10th yeah so it was all like that's pretty so i was like a junior in high school you know when I was 17. So you weren't working at all?
Oh yeah I was working. Oh yeah I worked at a tree nursery. There we go.
So I was bagging groceries my senior year in high school in Pleasant Grove just right up the road here at Smith's Groceries in Pleasant Grove, Utah. You've probably driven by a thousand times. I worked as a bagger half the day.
What'd you get paid an hour? I was getting paid $5.85 or something like that an hour. I was five and I worked really hard and I got up to $5.50 an hour. I was... And I'd go right after school for like three hours and then all day Saturday.
I think work, like here's a big reason why people succeed in life is because you fall in love with work and you don't have to be convinced to work. You have to be convinced not to work. Like that's a big, that's a thread in all of our DNA of high achievers is that we have to be told to slow down.
And we just want to learn new things. We have an insatiable appetite for new learning and challenges and whatever else. I would finish my bagging job at Smith's. and I would go to my neighbor's house who owned a machine shop in his garage and I would do machine work for him until like nine o'clock, 10 o'clock at night.
And I had two incomes as a freaking 16 and 17 year old kid. Yeah. So I say all of that to say, kudos to you for working your guts out and trying to do something with your life, something better. I have a girl on my team. Her name is Hannah Gustafson.
She worked at Red Robin as a 16 year old. And her mom is one of my transaction coordinators. Shout out Allison Gustafson.
And she goes, Pace, would you mind if I had my daughter come and work as a transaction coordinator? I was like, oh my gosh, please. Like you should not be going out and flipping burgers. You should go and work in an escrow office. You should work for a transaction coordinator.
You should in the very minimum, go and work on an acquisition team for another wholesaler. But if you are trying to be a wholesaler, this video will answer how to go and do that. There's a lot of ways to get into the business.
Working for somebody else at 16, 17 years old, even 14 years old, you could go out and be a wholesaler. Heck, like as a 12, 10 year old you could go and do what we're going to talk about. I have a... He's now a partner of mine, Brian Russo.
He did his senior year in high school, did a hundred... What was it? A hundred thousand?
Ninety-two thousand? Almost a hundred thousand. While he's in high school.
And it's fascinating. He would get home from school and he'd get on the phones for like three hours a day. and he did a hundred thousand dollars his senior year in high school wholesaling and Because he couldn't sign contracts, he would JV. Easy. With another wholesaler.
That's a good solution. So you either JV with another wholesaler, you can split. That's a great option.
I really like that. And he let that other guy sign, you know, so he did all the work. And then that guy would go and dispo it?
Yeah, or they would, yeah. Okay, cool. So here's what I learned when I first jumped into the business. I could have done this. I did it at 30, 31. I freaking wish I learned creative finance and...
wholesale when I was 18, 17 years old. You guys are so lucky. Imagine where you'd be today. Me too.
I'd be living on a lake in Montana. I might even have two lakes next to each other in Montana. Not one, two.
I'd have two. Okay. So the thing that I did is I would go on appointments with my buyers and my buyers would just tell me, I'll buy it at 200 from you and whatever you can get underneath this in this appointment, we'll just sign the contract for whatever that is. So one of my buyers was Zach Keeps.
become a good friend of mine, he would go on appointments with me because I go, man, I don't, I'm not really not good at paperwork and I'm not good at comping. I'm not good at this stuff. So he would go on appointments with me. I was good at making friends with the sellers and negotiating, but I wasn't really great at all the paperwork side of things. So I would bring my buyers to my appointment with me and my buyers would sign underneath their company name and they would either a pay me on another line item on the HUD or pay me outside of set up.
Because you found the lead. I found the lead and I negotiated the lead. And okay.
So you found the lead, negotiated a lead and they were, they wanted the deal. Yep. And they wanted to fix and flip it. And they were, and they, so they valued that you had this lead willing to go on appointment, willing for you to make some money. They were all fine with that because you found the lead and they saw value in that.
Yeah. And I learned, I learned the difference between what a bird dog is and what a wholesaler is. And maybe you have a different description, but a bird dog is looking for. maybe one buyer up to five buyers.
You're not looking for a hundred buyers or 5,000 buyers. A wholesaler typically is going out and blasting out and then calling some of their select buyers. A bird dog is probably a younger person just starting out in the business and goes to one buyer like Jerry. Jerry, what are you looking for? Jerry goes, I want to build properties in Paradise Valley with lots this size and dah, dah, dah, dah.
And the bird dog goes, I'm only looking for those types of deals and I'm retrieving those. That's why it's called a bird dog, a retriever. I'm a golden retriever.
I'm retrieving the gold for Jerry. And I'm a golden retriever, bird dog, and I bring that deal to Jerry. And then Jerry negotiates and contracts. Either I negotiate, if I'm good at it, or you negotiate.
When I first started out, my buyers were helping me negotiate because I didn't know what to say and how to do it. So I'd bring my buyers with me. They'd sign on the dotted line. I'd make a little bit less money, but I realized I was making more money.
than if I went to another wholesaler and let them dispo because there was less transparency. Okay. So I define it a little bit differently.
Same idea though. I define a bird dog as finds the deal, brings the deal to investor and the investor negotiates and contracts. I like that. Okay. So, so they've, they found it, but, and you know, there's, there's a whole lot less value in that because you didn't negotiate and contract it.
Because once you transition from, hey, I found this great deal, I'm bringing it to my buyer who I know wants a deal, and then I'm letting him kind of negotiate and contract, that has value. But when you own the contract, you now can call the shots and you can call the price and you have other options, right? So that's where when you grow up in life, you go from a bird dog to a true wholesaler, you own the contract now. Yeah, you have the true leverage of saying, I have five other buyers, whoever. one, gives me the highest price, and two, puts their earnest money in the fastest, gets the contract.
You can do all sorts of things when you have control. But you're right. I mean, so I had a bird dog in Paradise Valley when I was doing, before Puerto Rico, I was doing three to six luxuries there.
And he knew exactly where I was looking, north-south facing, one acre, these streets. And then he would go door knocking on old houses. And then when he got a yes, We kind of had a pre-negotiated, like I told him, I said, here's my price.
And so he would sort of negotiate, but I was his buyer. He didn't really have any other strategy. And so that would probably be like what you're saying. That's more like a bird dog, right? Yeah.
And I think maybe a bird dog is probably best defined as somebody who's just getting started in the business, doesn't want to have to worry about learning all of the skills, negotiating sales, all up front. Also, I want to leverage my buyer a little bit more. whether it's letting my buyer negotiate on my behalf or letting my buyer come sign the contract or having my buyer just tell me the purchase price, the maximum allowable offer.
Because a lot of times people let comping hold them up. And what I see a lot of times is buyers, I'm sorry, wholesalers will go get a seller under contract because the seller says yes. Seller says, yeah, I'll sell to you at that price.
You have no idea that that's a good deal or not. Then you come to me on my DMs and you go, Pace, I have this contract or I have, no, they say, I have a deal that I can't find a buyer for. And I go, then you don't have a deal.
Because deals are things that buyers buy. Like if I go to Walmart right now and there is a, you know, ketchup aisle that says, hey, big bottle of ketchup for 50 cents, Heinz tomato ketchup, 50 cents. That's a deal. Okay.
It's flying off the shelf. It's flying off the shelf. That's a deal.
Otherwise you look at that same, you go around the corner and there's another shelf of the same exact ketchup, but they're selling it for $45 a bottle. Nobody's buying that. It is not a deal. It's just ketchup. Yeah.
Okay. So when people come to you, go, I have a deal and nobody's buying it. That means you don't have a deal. You just have a piece of paper that says somebody would sell to you.
Or you haven't talked to enough people. Right. That happens a lot too. It's either not enough eyeballs or you bought it too high.
Right. That's it. It's interesting though, around this idea of like young people doing wholesale real estate. You can learn this and it's not really that complicated. Like a teenager could do it.
I'm just thinking of like all these different ways that young people can get into real estate and, and to not let, you know, all the people tell you, no, no, no, no, no. You know, you go to your teachers at school who are making whatever they're making. 50 to 70 a year. Okay. You can make that on two deals, right?
Or. you know, Brian Russo did a hundred grand his senior year, a couple hours a week, a couple hours a day after school, right? Like stop letting, if you're young and you're watching this, stop letting everybody tell you, no, you can't, no, you can't, you gotta be this, you gotta be 18, you can't sign a contract.
If you can learn at this age to let no, no, no, no, you can't, just roll off of you and go into it. The mechanics of this are not, you are not, there's nothing else you need. intellect wise.
No. You just need to learn a few things and then go out there and start calling, taking action. I mean, you're going to spend the time this summer getting a summer job or something. You're going to spend time learning a skill to go get a paycheck somewhere, I'm sure.
Why not just use the skills that you learned on Jerry's channel to go and get your first deal? I just hired a personal assistant. Her name's May. Shout out May. She's awesome.
She texts with you all the time. Yeah, she's great. She's on top of things. She has a master's degree in child development, works at a school. teaches a class of kids that, um, who have autism and she has two, um, assistants that work underneath her and she makes roughly 50 grand a year.
Okay. She's my personal assistant. She just got her first sub, her first deal is a sub two deal that her and, um, a JV partner went and knocked on the door of, of 15 foreclosures. They got their first contract and she's going to buy and keep the house to live in for herself. Amazing.
And she's like, if I knew the options that were available for me. before I went to school to get a master's degree, to get capped in my income, basically telling me people, other people telling me like Jerry's saying, what's possible and what my life should look like. I would have never gone down that path, but now I have the options. Guys, you have the options. One thing I'm doing, this is cool. I don't know if maybe your sons want to collaborate with this on with my son, but I'm putting a kids discord server together.
So all the kids of like your students and my students and Jamil's students, Veena's students. They can, all the kids can come in and learn how to bird dog and help each other out to find deals for their parents and watch other kids doing the same thing. And it's kind of a cool like. Amazing. That's really cool.
Tell me more about that. That's great. I think we're going to launch that in like four or five months.
It's interesting because in the past few years, my wife and I have been talking a lot about, you know, wealth transfer to our kids. And, you know, I grew up with this idea when I first got into real estate, like, man, I want to leave a legacy. I want to leave assets to my kids.
And I've since. in recent years completely changed my mindset around that. Really, the wealth transfer needs to be education.
Like if I can teach my kids what to do. Yeah, resourcefulness. Why would they need my assets?
In fact, if I give them my assets when I die, what do I really think about them? What I'm really saying is, I don't really believe you can go make your own life. Yeah.
Here, take my stuff, take my money, take my wealth, so you don't have to now what? go grow and develop and make something of yourself and provide impact in the world. That's not what I want to do. But if I can transfer knowledge to you and you go now make your life something special, that's the real wealth transfer.
I want that. I want it to be that. You don't want to just go, hey kids, I made your life perfect because what you've done is you've created soft children and soft children create hard times. And you see a lot of rich people, their kids are the laziest knuckleheads of all time.
Versus guys like you and I, we grew up, I grew up, my dad worked two, three jobs. We had food in the fridge. But I learned to work and I learned to love work. And you learned to love work too.
You grow, look at your, all your brothers. Yeah. You and all your whole family, you guys love to work. You love, you love to-All entrepreneurs.
All entrepreneurs. Yeah, it's interesting, Pace. I sat down with my kids, the older ones, and I said, I said, I'm just curious if you had to choose, not that you do, but if you had to choose between getting all of dad's money, eventually get all my money. Which means that I would be working a lot right now to build this massive empire for you.
So I'm not home or you don't get any of it, but I'm here. I spend time with you. I do things with you.
I have a relationship with you now. So all this money later or time with me now, if you had to choose today, which one would you choose? And they all said, I don't really care about the money later. I'd rather have you in my life now. Yeah, I want my life.
So I kind of look at it like, you know. presence, it's, that's something that I put a lot of value on in, in my life with my kids. And it goes along with the same ideas.
Like, do I want to, do I want to just hand them things and say, look, skip the hardship, skip the obstacles, skip the, the falling down on your face again and again and again. That's what made me who I am. Why would I rob you of that experience?
You wouldn't. Of making you something great by doing hard things, right? We, we have a we have a quote in our family.
It's Norton's do hard things. And like the Spartan we're doing, I got some boy, my daughter and my son doing that with us. And they're nervous about it. They're worried. I'm worried about it.
They're worried about it. You know, it's going to be brutal. The way to not be nervous about it is just forget that it's happening. Yeah.
And then when you show up, you're like, okay. And it's interesting. I'm doing, um, I'm doing the 75 hard thing right now and they're watching.
And I've had to start over a couple of times now, but my 18 year old, he's, he's asking me every day, where are you at? Have you done your second workout yet? And so I've got my own pressure on myself, which I'm great at putting pressure on myself to do things.
But now I've got my kids watching what I'm doing. And so I feel that sense of like I got to make them proud. I got to show them that dad does hard things too.
So that's going to be that example. Norton's do hard things. That's gangster. You should put that on a t-shirt, bro.
That's cool, right? But you guys that are watching this, you know, going back to that Brian Russo, that senior. It was funny, at the end of interviewing him on my channel, I'm like, there's something unique about this. There's something, what would drive a kid to do this in high school?
And he said things like, I've always wanted to be an entrepreneur. And I'm like, yeah, yeah, yeah, that ain't what I'm looking for. Like, what's going on here? And then finally he says, you know, my mom died a few years ago and I want to make her proud.
And so it's like... You said this yesterday, two days ago, we were speaking at ARIA and you said, if your why doesn't make you cry, it's not big enough. It's not big enough. If your why doesn't make you cry, it's not big enough.
Clearly this kid has some compelling reasons why he wants to make his life mean something. He's willing to put in the work now. Wow. So, you know, I also said then like money is the worst motivator, right?
People think I want to make a hundred grand or I want to make 200 grand or whatever. If money's the motivator, You're not going to do the work because it's going to be too hard, right? What is a compelling reason? So you young guys that are watching this, find that compelling reason and let that drive you. Don't let what everybody else says, like you can't sign a contract.
There's so many ways around solving that problem. 99% of people in life don't have the life that you want. So find the people that have the life you want and listen to only those people.
Love that. That's a great way to end this video, guys. Hope you found inspiration. It wasn't really about creative finance, but really impactful if you're a young person trying to Make a life for yourself and get into this business. Appreciate you guys.
We'll see you on the next video.