How I'd Start in Real Estate in 2026 (If I Had to Start Over)

Summary

Pace Morby’s central advice is to build real-estate income around your current financial position. If you have a stable, good-paying job, he recommends keeping it and using the income to acquire passive assets—especially RV parks—instead of immediately trading one demanding job for another. If you dislike your job and are struggling financially, he suggests first pursuing single-family real estate to replace active income.

Playbooks and Operating Principles

Learn to Underwrite Before Committing Capital

Morby recommends reviewing listings on Crexi and LoopNet and attending one SubTo underwriting Zoom per week. Ask the group to explain why a deal doesn’t work, then keep practicing until you can assess deals independently.

His suggested cadence is roughly two hours of work in the first week, followed by about 20 minutes a day searching for a deal to review at the next Zoom. He estimates that a beginner may start to understand underwriting after 3–5 weeks and that consistent practice could lead to ownership in an RV park within six months.

Partner to Build Experience

Morby suggests bringing an RV-park deal to an experienced buyer and negotiating an initial 10% ownership stake plus an upfront fee. After learning from the first deal, seek a larger share on subsequent deals and eventually buy independently.

Work Backward from the Cash Flow You Need

Rather than focusing only on purchase price, estimate operating costs, debt payments, repairs, insurance, utilities, and team expenses. Then negotiate terms that leave the business with a target monthly net income.

Understand Acquisition Before Choosing an Exit Strategy

Morby argues that investors often learn how to operate an Airbnb, rental, or other strategy before learning how to find and acquire deals. His preferred sequence is:

1. Generate leads and find motivated sellers.
2. Acquire and assess the property.
3. Choose the appropriate use—such as Airbnb, Section 8, or co-living—based on the asset and its constraints.

The property determines the exit strategy, not the investor’s preferred strategy.

Limiting yourself to one use can rule out many otherwise viable deals.

Seller-Financing Process

Morby illustrates seller financing with an Apple Watch analogy: a seller may reject low cash offers but accept a higher overall price in exchange for monthly payments. He says the approach is most promising when a listing has been on the market for a long time and the seller is frustrated with low offers.

His described process is to:

• Ask why the seller has not sold and identify the seller’s real motivation.
• Offer terms that address the seller’s needs while supporting the buyer’s cash-flow target.
• Reverse-engineer the monthly payment from the amount the business needs to retain.
• Document the agreement with a promissory note, which Morby says is recorded as a lien.

He emphasizes that creative-finance deals can be structured in many ways; the terms must work for both parties and for the property’s economics.

Case Study: 43-Unit Property in San Angelo

Morby describes buying a 43-unit property from Mario, whose family obligations had made managing the property a burden. The property had been listed for a long time. According to Morby, the seller wanted to spend more time with his son while also leaving money to his family.

The figures and terms Morby gives include:

• Purchase price: $3 million, though Morby says he thought the property was worth closer to $2.3 million.
• Seller payment: Approximately $16,000 per month at 3% interest.
• Term: Extended to 50 years to make the monthly payment fit the deal.
• Revenue: Approximately $40,000 per month, according to Morby; he also cites around 5–7% vacancy.
• Reported net income: About $11,000 per month after seller payments and operating expenses. Morby says he had targeted at least $8,000 per month in net income.

Morby says he framed the long-term payments as a way for Mario’s family to receive recurring payments over time. He presents the example as a highly negotiated, motivation-driven deal, not a standard structure.

Growth Example and Milestones

Morby cites Jordan Rays as an example of the progression from partner to operator:

• Jordan bought one park with Morby.
• He brought Morby a second park and reportedly received a $90,000 fee.
• He bought a $5 million park independently as his third deal.
• Morby says Jordan later pursued additional parks and businesses, including a handyman business and a painting business, using creative finance.

Morby also recommends tracking progress against personal expenses. List your bills and work toward covering them with income from successive assets—for example, rent, car costs, phone, and groceries.

RV Parks Versus Airbnb

Morby presents RV parks as an overlooked alternative to Airbnb. He distinguishes RV parks from trailer parks and mobile-home parks, while noting that some RV parks include trailers and are “hybrids.” He gives the example of a park in Big Spring, Texas, where oil workers reportedly stay for several months at a time, producing longer stays than typical short-term rentals.

He argues that some investors pursue Airbnb mainly for tax benefits and warns that a tax-motivated strategy does not guarantee a profitable operation. He cites an article claiming that 400,000 Airbnbs had been removed from the platform, characterizing many as poorly operated. That figure is Morby’s claim in the video and is not independently verified here.

The video also discusses tax qualification rules and short-term stays. These tax comments are the speaker’s summary, not tax guidance; eligibility and requirements should be confirmed with a qualified tax professional.

Key Metrics and Timelines

• Underwriting: One Zoom per week; four Zooms available weekly.
• 3–5 weeks: Estimated time to gain initial underwriting confidence.
• Three months: Recommended period of consistent deal review and learning.
• Six months: Morby’s projected timeframe to gain ownership in a park through the suggested path.
• Initial deal target: 10% ownership plus an upfront fee. Morby suggests negotiating for 20–40% on later deals as experience and value increase.
• San Angelo example: 43 units, roughly $40,000 monthly revenue, 5–7% vacancy, $16,000 monthly seller payment, and about $11,000 monthly net income, as stated by Morby.
• Jordan Rays example: A reported $90,000 fee on a second park and a $5 million third-park purchase.

Presenters and Sources Mentioned

• Pace Morby — Main presenter.
• Adler — Interviewer and camera operator in the Apple Watch analogy.
• Jordan Rays — Investor example.
• Mario — Seller in the San Angelo case study; Morby says he has also appeared in an interview on the channel.
• Other resources and people referenced: SubTo underwriting Zooms, Crexi (auto-captioned as “Krexy”), LoopNet, the Owners Club, Carl, Brian, and Bill Faith.