Pace Morby at Bigger Pockets: What You Need to Know

0:00Payday bars have a bone to pick with the other candy bars enough with the toppings and layers and stuff. K payday bars are just salty, crunchy peanuts and sweet caramel delicious. Payday, peanut caramel bar. Alrighty, folks. As you know, I was at bigger pockets or landau last week as a featured speaker. And because I was there, I got to see the one and only pace morbid pace morbid was in the house. And he actually laid out a story that I want to share with you and Bo and ask, what does this mean? What should we do before I get into that story? Bo, how you doing, man? What's going on? I'm doing well. I'm interested in learning. I'm most interested in what pace is doing. He's, you know, I think he's a thought leader. You know, he gets bashed a little bit on social media amongst everybody nowadays. But I think ultimately he is pretty any every time I've listened to him speak, I've been inspired. Yeah, I think he's a very smart guy. So again, I have not taken the time to validate this, but given that he put this out in the

1:02world, I'm sure he's taking this from from some facts somewhere. And that is he talked about Cisco systems. So Cisco systems that you don't know is a big tech company. Apparently about 90,000 employees. And what Cisco system did recently is they are rolling out AI agents to every single employee. Now, of course, this is being positioned as it will make you more efficient. It will help you with this and that. But what pace says and I get his logic is that is going to lead to massive layoffs. AI is basically going to learn your job and then do it better, faster and cheaper. And then Cisco systems sometime in the future will hold mass layoffs and have a better, better bottom line because they will have less overhead running the business. So again, I don't know that Cisco systems will do that, but you can definitely see how the seeds are being planted and how AI may come.

2:03Now, of course, this is just one company, but Bo, you and I have had talked about AI. You've talked about your massive use of AI. It's really empowering you to do so much more. So it kind of makes sense that in time Cisco will hold layoffs because they can get more done with less, but I'm curious, what does that mean for the employees, right? The employees basically training their replacements. What should they be doing in the meantime? Because this won't take long. It might take six months, might take a year shoot. It might take two years. But at some point, the AI agent will know in you. What should people be doing? Well, we're going to talk about a plan B. And I think that's always a wise decision, right? You should be looking at investment opportunities, businesses, real estate, of course. Like you should be building your exit, even if it's not immediate. And I would also be building skills too at the same time. So like if you're in a tech world that might be replaced, what can you do?

3:06And I would be learning skills on how to implement AI and work with the system. Because there's some really high pay jobs for people that know how to implement AI. I think AI implementation is a huge thing. What I can tell you from personal experience that when I rolled out my AI agent into my business, it's definitely amazing what AI agents can do. It really truly is. My AI agent interacts with my four VA's and I don't really even have to talk to him as much anymore. No, that's not maybe the best thing to do. You know, you should, but it's so much more efficient. Victors, the I use Victor and Victor, you know, I just read they just raised $75 million. That's the name of the a and it integrates with every system I use pretty much. It can go on to websites and do, I mean, it does, it can do everything. So and I'm not even an AI techie guy, right? No, you know, you're not called techie.

4:08Imagine if I had to sys Cisco, um, smartness behind me in that realm, like they have the best of the best AI engineers. Sure. So it's happening. Um, you know, I was just reading a report on, uh, I think so Relle is the name, but they in 2024 they put out a report about the great wealth transfer, right? So all this stuff is happening. Everything is happening right now. And what does it mean? It means we just got to grow and evolve. Yeah. And continue doing what we're doing. But it's funny. Um, I was talking to Adrian earlier this morning about the real estate blood bath. Because again, he's, he's obviously in real estate. But he, he led off the discussion. He's like, Michael, don't never forget the following statement. I'm like, oh, this ought to be good because Adrian's always dropping bombs. But here's one for you. And maybe for all the tech workers out there, um, it's not the strongest of the species that survives. It's also not the smartest of the species that survives. It's the most adaptable that survives.

5:10So in a world, so AI is coming. And I'm one of the guys that thinks we're going to have an AI blow up, right? I think the AI financial models are broken, but I think the AI tech is awesome. I just think the way they're absorbing dollars is foolish, but the tech is great. So again, I think you're absolutely right. I think there's a couple of things you've got to do, right? You got to lean in, right? One of the things I always told people in recessions is get close to revenue. Because if you're a revenue producer and they can look at you as bringing what's doing expense, it's far easier to stay employed. Today, it might be leaning into AI, right? Because there will be like, Cisco's not going to zero employees and 90,000 AI agents. That's not happening. But you know, could 10% 12% go? Sure. So again, lean in, become a AI, I don't know, engineer or whatever they're calling themselves. And really learn how to use that. But more importantly, to your point, I think this is about plan B. I think plan B has always been important.

6:11I think you need to realize that we are at a unique time. Because as you said, baby boomers are retiring and nobody in their family wants to take over their business. So if you could take over a boomer business who has a, has decades of referrals and five star reviews, who has not a lick of technology and you could bring tech in, you could go ham. Right. This could be a special time for some folks. 100%. I mean, it's the writings on the wall. It's all out there. And you can find something adjacent to the vertical you're in. Yeah, it doesn't. I mean, for example, I'm working on a loan right now and they're buying a property management company. They're real estate investors. Perfect. And it does short term rental property management, you know, and they're coming in and acquiring it. It's a, it's a big transaction. It's like 4.3 million acquisition price. The seller's carrying back 900 grand plus 5% of the equity.

7:11So they're coming in with 5% of 4.3 million, whatever that is, get the 200 something. Yeah. And now they're going to get a business that they can put 600, 700 grand a year in their pocket. Nice. So that's not a bad way to do it. But you got to be tight with your understand how these things happen and you got to be, you got to be able to come in and understand that the shoes you're filling, right? And if you can do that. But if I was in a tech worker, I was working with a candidate. And this would be interesting because this is a lot of like people in the ORAC community. Two, 300 grand a year job, working at a big company, you know, whatever it is, Cisco, Amazon, those types of company. Sometimes they look and when we start going through the analysis of like, you know, I got a pretty cushy. I get 250, I get paid time off. I go, you do. So what I started to realize is that we have to kind of, with some people, it's not immediate, you know, jump into something else.

8:12I wouldn't advise that. But there are business models for people that have that are a little bit capitalized, meaning they have some dry powder. They have 150 grand 100 grand liquid, you know, not somebody that's got 10 grand 20 grand liquid. But there are some opportunities that are more geared for people that want to keep in corporate. And if they're scheduled allows and they have the skill sets. So like we work with an automotive brand and what they do on some of them is they look for mom and pops and they buy and they do conversions and they convert. The franchise and put in the systems. So you could, you could walk in because the whole point is you're going to hire a general manager, right? So there's different, there's different buckets for everybody. It could be a gateway business like Fending, but you know, if you're a little bit more C sweet, maybe a little bit more ready to go and have a little bit more dry powder, then there's better. You know, bigger opportunities.

9:13I wouldn't say it's better, but it's bigger. Sure. And so that's what you have to evaluate. And then, you know, maybe that one store, you know, when it's probably when you get it up and running is going to, you know, put your pocket after expenses. Six figures, right? Yeah. Maybe you need to try to replace, you know, 250 grants and maybe own two stores over time, right? Then you get to the point where you replace that. That's all we're saying. You got to take a step in one direction. Yeah, this is, to me, this is, this is like, this is coming. It's coming sooner than you would like. And it's time to reach out now. The like, you don't want to get ready when it's too late. You want to prepare early. You want to know options, right? People should be reaching out to you one rental meeting.com. Just to have that initial conversation, right? Are they set up to do the gateway business, right? You know, a 10 pack of ending machine? Are they set up, you know, to, to build on a bolt, a bolt on business like property management or painting or AC or, you know, do have they found somebody that they could buy a business from and they come to you for the loan.

10:15Right? This is, I just don't want people to wake up sometime in the future, getting a layoff notice. And they got no plan B reach out now and have just having initial conversation. It's free. I mean, now with the tech, I mean, even personal finances, you can, like, there's a, there's come to call the monarch and I went on there yesterday for a treat, a free trial. And I linked up my like 15 bank, you know, bank accounts and my credit cards and it gives you complete snapshot. Like, and, and so like, use these tech platforms to your advantage. I was just on and I was building a, I built a website just now before this in 10 minutes. And now I have like a viable product. So there's like no reason not to my friend, Eric yesterday, I was having a conversation with him. He runs short-term rentals. He owns any, he bought him at the right time. He got 3% money on all of them. Like, he was really just perfect timing because a lot of those guys fell off.

11:16But he, he, he's got a nice business going. And, and we were just talking and he, and I was telling him what he could do with the AI. And I know he was like, yeah, you know, I have all these statements. He goes, I, I just know that I'm making money because after I pay all the mortgages and stuff, I have, you know, there's money left over. There's like 10 to 20 grand left over every month that I'm doing good. I'm like Eric, it's not that hard. You could take those and you could put them in and you could put them into AI and it'll create a KPI tracker sheet for you. One pager. So you see things for advantage. Just like I'm doing with my personal finance, which I'm very weak at doing. Like I just one thing I hate doing. It's like, I need a dashboard, right? How much money is going out? How much money is going coming in? Where can we tighten up when I bring in the AI agent? The AI agent is actually tracking the work of my virtual assistants and telling me who are the weak ones. What are they doing? And, and, and, you know, if I needed to lay off a, sorry, if you're, they're not going to add to this video. So that's okay. Yeah.

12:16Yeah. No, if it was my video, they'd be editing it. I'm saying, but like the point is is that it's giving me insight that I'm not having to go dig for. So like you can use these in the Colt, Cody Sanchez thing is like bring technology into the business, right? Which makes sense. Like what can you do? I, I hear about these guys in my groups. One guy was, he's been a researcher for two and a half years. Finally got a business under L.I. that I think he's actually going to close on, but it took him a long time to find the business. And this guy has sharp. He's got a million bucks it and his checking account. Gee. Finally got this business, but the businesses he's, he's buying is exactly what we're talking about. They have no technology. They still keep invoices on a written receipt. But it's a very profitable business. He takes over that legacy. So like, what's into the shoes? Yeah, just keep going. It's going to be awesome. What can you do to create that? Yeah. Folks, again, I don't, uh, this video is not meant to scare you. It's not just a big myth, maybe to give you some awareness, but again, it's, it's, it's probably a good idea to reach out and have a plan B. Least understand what's possible.

13:17So reach out to Bo one rental meeting.com. Get 15 minutes. It is free. Any is a wonderful and very nice man. So reach out and have a conversation. Any closing thoughts, Bo? No, just, um, I enjoy talking everybody. I mean, like, you know, some people aren't quite ready yet, but I open up their minds and, and, uh, you know, they just, there are opportunities out there and you just got to, you got to be prepared. The more you, if you start today, in order to be ready, you've got to get ready. So let's get ready, folks. Right. That's the whole key. Get ready. There you go. Bo, your steps. That's right. Do the work later. Nick Eek laser, this stunning tour, the thoughts of death. I don't like to dwell on them for longer than like 10 or 15 hours a day. So November 19th, Yamabah theater. No wonder women rushed to have kids were being trained for it since we were kids. They're like, here's a baby doll. Here's an easy bake oven. I got one of those.

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