Real Estate Mogul Paul Morris Opens Doors To Priced Out Homebuyers Using His Own $1M

Paul Morris runs one of the most successful real estate brokerages in the country. As CEO of Los Angeles-based Keller Williams Forward Living, he leads a team of more than 3,000 agents and his firm averages $8 billion in annual sales. He’s amassed a personal portfolio of more than 600 rental units, and he has never lost money on a single deal. 

Morris has earned the perks that come with that level of success, including a posh office in Beverly Hills and a home in the Hills with views that stretch across the San Fernando valley…but he’s never forgotten his humble roots.  

“I grew up in a blue-collar neighborhood in Pittsburgh,” says Morris.  “We didn’t have a lot, but our parents were hard working and were able to afford a modest home in a decent neighborhood to raise us.”  

So, when he looks out his living room window at the hundreds of thousands of homes that dot the San Fernando valley, it’s not lost on him that a staggering number of families simply can’t afford to buy them. 

“There’s no way my parents could have afforded to buy here today. In our current market, droves of formerly qualified buyers are priced out and losing their chance to participate in the ‘American dream’ of homeownership,” says Morris. “That’s unacceptable.” 

Morris fervently believes the cornerstone to building personal wealth is home ownership. He’s written a NY Times best-selling book called Wealth Can’t Wait, and he’s just been tapped to host a new podcast, Radical Wealth Plan, in partnership with Entrepreneur Media, elaborating on his winning formula. 

So emphatic in his belief that home ownership is the starting point of building personal wealth, he’s created a fund Dream House Capital (www.dreamhousecapital.com) which he started with $1M of his own capital to partner with first time homebuyers who are otherwise priced out of the market.  

“This isn’t purely charity,” explains Morris. After developing and implementing a strategy that has allowed him to invest in real estate for more than 25 years without ever losing money on a single deal Morris states: “I don’t do deals that put my capital unnecessarily at risk, but there’s no reason I can’t create a win-win where I help someone get in the game and buy their dream home.”  

Here’s how it works:  

First time homebuyers find their target neighborhood, then Morris finds the best value-add property in that neighborhood. 

“There are dogs in every neighborhood, those dated and neglected houses that no one wants to live in…yet,” Morris says. “That’s our entry point, because no one wants to buy it, we can acquire the property at a price significantly under market value.” 

The homeowners provide the down payment, then Morris funds and spearheads the renovation, targeting key areas to increase the home’s value, and manages the design and renovation efficiently. 

 At the end of the renovation, Morris gives the family an estimate of what the newly renovated home would sell for, and the family makes a choice—either move in and enjoy the remodel or put the house back on the market and split the profit of the sale with Morris. If they stay, the family refinances at the increased home value and pays Morris back for the remodel, landing them in their dream home with significant equity. 

“It’s a win for me no matter what they choose,” says Morris enthusiastically. “And it’s a win for them because they’re either in a newly renovated house in a neighborhood they couldn’t get into before, or they have a larger nest egg to invest into their future dream home.” 

Morris explains that even if they decide to stay and he’s just being reimbursed for the renovation, “I’ve still gained working knowledge of a new neighborhood that I wouldn’t otherwise know about and can share that knowledge with my team and other homebuyers.”  

Morris’ goal is to use this concept and his fund as a teaching model to show buyers how to finally get off the sidelines and into the world of real estate ownership, even in this daunting market.  

Morris has a close friend who is living this exact scenario. Lisa is an editor in Los Angeles and she and her husband have been searching for a home for themselves and their two young children. They had budgeted for a $1,800 per month payment on a $400,000 starter home in the artsy, up-and-coming Highland Park neighborhood.  

Interest rates have doubled since they first started looking. “That same mortgage payment buys them only a $250,000 house—and none of those exist in Highland Park!  They don’t want to leave LA, but they know their future cannot be in a 2-bedroom apartment.”  

Morris knows this issue is pervasive throughout the entire country, including his hometown of Pittsburgh. Morris says this fund is his way of doubling down on his formula and commitment to get people into homeownership while “helping the greater good because it proves out a model that can be used by people far outside of my network’s reach.” 

“Was I dreaming about living in a house in the Hollywood Hills when I was growing up in Pittsburgh? No, not even close,” he admits, “But when I did imagine my future, it was always in a comfortable, peaceful home somewhere. That’s what everyone wants. And If I can teach people how to get into the game this way, I don’t mind putting my own money on the line to do it.”  

Listen for Radical Wealth Plan’s first episode airing this August. http://www.entrepreneur.com/listen You can find Paul Morris on Instagram and Facebook @paulmarkmorris  

You can purchase Wealth Can’t Wait on Amazon.com