According to mortgage industry experts, real estate continues to be one of the best investments for building long-term wealth. However, the high capital requirements preclude many people from entering this highly profitable market. Fortunately, with the innovative Gator Method created by real estate financier Pace Morby, now anyone can get started in real estate investing without money or experience.
As a full-time real estate investor and educator with over 15 years of experience, I have seen countless people transform their lives using Pace‘s powerful yet easy-to-learn Gator system. In this comprehensive beginner‘s guide, I will walk you through exactly how it works and provide step-by-step instructions so you can quickly get up and running.
The Gator Method is a revolutionary approach to real estate investing that allows complete beginners to provide alternative financing for other investors’ deals and earn strong returns without needing any capital or credit.
It works by becoming a “Gator Lender” who offers short-term transactional funding for crucial expenses like earnest money deposits, allowing real estate wholesalers and flippers to secure more lucrative deals. In return, Gator Lenders receive a share of the profits when the property sells, allowing you to grow your wealth exponentially.
For example, you could provide $5,000 in earnest money to an investor who locates a $100,000 discounted property. When they quickly resell it for the full $100k, you would get back your original $5k plus an additional $10-15k in profits – a 200-300% return in just a few months!
The initial funding can come from any source – personal loans, credit cards, home equity line of credit etc. The key is leveraging other people’s money, not your own, so you can start investing immediately regardless of your financial situation.
The first step to become a Gator Lender is getting approved for a line of credit, which will act as the capital to provide transactional funding.
Thanks to a special partnership with Prime Corporate Services, Pace is offering complimentary applications for lines of credit between $2,100 to $53,000. Simply visit primecorporateservices.com/pace, fill out the 60-second form, and his team will handle completing the application process for you free of charge.
According to students’ reviews, approval rates are extremely high (over 80%) even if you have less-than-perfect credit. By leveraging Pace’s proven techniques, such creating business entities which improve eligibility, most people have success obtaining a sizable line of credit to start investing.
John, a member of Pace’s coaching program, shares: “I was skeptical when Pace said he could get me approved for a $50k business line of credit as a complete beginner with average credit. But sure enough, a month after applying through Prime Corporate Services, I had the funding to start writing my first transactional loans for other investors’ real estate deals. It was almost unbelievable how easy the whole process was thanks to Pace’s step-by-step guidance.”
Once you have a line of credit secured, it’s time to start strategically lending money to up-and-coming rehabbers and wholesalers in return for a portion of their profits when the deal closes.
This allows you to build a thriving lending business that generates impressive returns without needing to personally source or manage any real estate yourself. By focusing solely on providing the capital, you can minimize risk and maximize reward.
Pace teaches his Gator Lending students to target smaller local investors who are less likely to qualify for hard money loans from traditional lenders. These investors are hungry to find alternative financing and willing to split substantial profits in return for the capital to purchase inventory and fund their flipping or wholesaling businesses.
Ashley, one of Pace’s top students, recounted: “As a Gator Lender, I don’t have to deal with tenants, maintenance, or repairs. I just fund other investors’ deals with my line of credit and receive double-digit returns in 6 months or less. It’s extremely passive yet extremely profitable! Last month I lent money to 3 different wholesalers and earned over $50k in profit. The month before I worked with a rehabber flipping luxury homes and brought in $112k.”
To identify promising lending opportunities, you can leverage Pace’s network of vetted rehabbers and wholesalers eager to joint venture, get referrals from local real estate agents, or even post on industry forums advertising your alternative financing. The key is building relationships with credible, experienced investors poised for growth so you fund reliable deals.
Structuring a mutually beneficial agreement with reasonable terms is critical to success as a Gator Lender. Transparency and alignment of incentives allow both parties to maximize profit.
Here are some best practices to follow when negotiating your first few lending deals:
Analyze Numbers Closely – Review the after repaired value (ARV), purchase costs, rehab budget and anticipated total profit. Is the spread wide enough to support both your target returns and the other investor’s requirements? What about worst-case contingencies?
Align Interests – The higher the other investor’s skin in the game, the more motivation they have to sell quickly and profitably. At minimum aim for a 20% down payment from their capital.
Milestone Payouts – Don’t release the full loan upfront. Tie payouts to completion of repairs to ensure progress. Conduct site visits to verify funds are allocated properly.
Profit Split – 50/50 splits are common for newer investors. More seasoned ones may only need 30-40% of profits to hit their goals. Ultimately negotiate to keeps terms fair and attractive for both sides.
Paperwork – Formalize agreements clearly in writing. Use escrow services or title companies when possible. Record lien position to secure your investment, especially with larger dollar lending.
While finding and funding your first profitable deals may seem daunting initially, Pace provides dedicated support through every step of the process. All members get access to sample business plans, educational resources, meaningless term sheets, a lending deal checklist, preferred vendors, and training videos capturing actual case studies.
Mark, a chef with a 640 credit score and only $7k savings, reveals: “I honestly didn’t know anything about real estate, lending, none of this stuff before finding the Gator Method. But by using Pace’s done-for-you contracts, following the step-by-step formula, and leaning on the group’s expertise anytime I had questions, I was able to start writing transaction loans within 2 weeks of getting my line of credit. In 18 months I went from nearly $0 to close to 7 figures in net worth, all fueled by my lending.”
Once you gain competency as a Gator Lender orchestrating your own midsize deals, graduates who wish to scale have the opportunity to join Pace’s team to fund high-tier projects. He regularly looks to deploy over $1 million from his lines of credit and investment capital into commercial developments and has openings for additional capital partners.
By pooling resources Gator Method graduates can participate in larger value-add multifamily rehabs or ground-up construction opportunities through mezzanine loan structures. These projects allow for both substantially higher individual loan amounts and a larger gross spread to distribute profits.
For example, rather than lending $20k on a $100k single-family fix and flip, you might commit $100-500k into a $5 million purchase of an apartment complex (2-10% loan-to-value ratio). When the remodeled and restabilized building refinances or sells 12 months later, your returns scale proportionally to the deal size. Spread across more units, the relative risk also diminishes.
The minimum investments on this upper echelon of Gator deals often starts around $100k+ , hence why scaling your lending so you have more free cash flow to deploy is so valuable long-term. The key advantages of participating in Gator pools for these larger financed properties include:
-
Access high-quality ventures Too big for newer investors to handle solo
-
Leverage buying power and expertise of an established group
-
Mitigate risk across hundreds of units and multiple markets
-
Tap the deal flow and rolodex of an 8-figure annual fund manager
-
Reduce relative transaction costs with larger loan sizes
-
Accelerate portfolio growth hitting 1M+ quicker
Through providing different tiers of graduation, Pace has built an unrivaled ecosystem to foster members’ success regardless of skill level or starting capital. His proven framework guides you each step of the way until you have the knowledge, confidence and institutional backing to tackle major developments at scale.
After observing hundreds of students walk Pace’s path to prosperity through Gator Lending, the merits of the system are undeniable. It remains the only business model I have come across in my career that consistently helps ordinary people with limited time, experience or funds generate truly passive yet explosive wealth.
Ultimately, success comes down to mindset and the community you surround yourself with. Too often, lack of money, credit or knowledge are used as convenient excuses justifying inaction. The reality is anyone at any stage can take control of their financial destiny through alternative real estate finance. They just need the right vehicle and mentorship.
The Gator Method masterfully unlocks this by removing traditional hurdles, streamlining support, and cultivating an empowering environment. If money was no object, what step would you take today? Ask yourself honestly then be willing to make it happen. With Pace as a guide, AJ second chance around the corner..