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Morris Smith’s story is proof that financial freedom through real estate is possible for anyone willing to work hard, think strategically, and never give up.
Growing up in Montgomery, Alabama, Smith faced serious challenges. He didn’t have a father at home, and his mother worked three jobs just to keep food on the table. Despite these struggles, Smith went on to build a real estate portfolio of over 30 properties.
His path wasn’t a straight line. In fact, his first steps into real estate started while cutting hair in college. A loyal customer, who happened to be a real estate broker, encouraged him to get his license.
Smith didn’t have a real estate background and even failed the licensing exam twice before finally passing. But that persistence set the stage for what would become a thriving career in property investing.
Building Wealth with House Hacking
Smith’s investing career took off at just 23 years old when he purchased his first home. Like many first-time buyers, he thought of it as a personal achievement rather than an investment. That changed when he refinanced the house at a 2.2% interest rate and realized he could move out and rent the property for an $800 monthly profit.
That first taste of positive cash flow reshaped his thinking.
“When I moved out of that property and started cash flowing, everything started making sense,” Smith said. “The personal attachment was left, and I started making money. That’s what pushed me to buy more properties.”
Looking back, Smith admits his only regret was not starting with a multi-unit property. His advice to new investors is clear: start with house hacking. Buy a duplex, triplex, or fourplex, live in one unit, and rent out the rest.
This strategy lowers your living expenses while creating monthly rental income.
As Smith explains, “Your biggest expense is going to be your living expense. If you can cut that down, that’s half the battle when it comes to making money and cash flowing.”
The Power of Mindset and Mentorship
Smith’s success wasn’t just about strategy. He credits much of his progress to his mindset and the people he surrounded himself with. Growing up, his football coaches stepped in as father figures and taught him discipline, teamwork, and resilience. These lessons carried over into real estate.
For those facing difficult circumstances, Smith offers four pieces of advice:
- Change your mindset about what’s possible.
- Surround yourself with people who push you to grow.
- Invest in education and content that inspires you.
- Accept challenges as part of the journey, rather than seeing them as roadblocks.
Smith also saw the struggles of his peers in the barber industry.
“In the barber industry, we don’t have 401(k)s or retirement benefits,” he said. “Many barbers make six figures in cash but don’t know where to put it.”
That reality inspired him to create Beyond the Clippers, a platform to help entrepreneurs learn how to build wealth through real estate.
Scaling Through Partnerships and Raising Capital
House hacking may have been the starting point, but scaling came through partnerships and learning to raise money. Smith stresses that credibility is built by action.
“When you locate a deal, you need to know where to take it,” he explained. “The trust comes when people see you already working. People have to see you doing the work before they can trust you.”
Networking became a significant part of his growth. By attending real estate conferences and meetups, he connected with investors who wanted to partner with him.
This visibility created new opportunities without him having to chase them.
As Smith puts it, “I get people all the time asking me if I have any deals they can partake in.”
Finding Deals in a Competitive Market
Today’s real estate market is highly competitive, but Smith continues to find deals by thinking outside the box. One of his strategies involves buying tax lien properties. While he warns they are “very challenging” and require plenty of homework, they can open doors to discounted real estate.
“You can find tax lien lists at your local tax assessor,” Smith said. “Every state is different when it comes to tax liens. For example, in Georgia, it takes a year and a day before you can actually get a deed to the property.”
Smith also believes the market will continue to rise, driven by:
- Growth of short-term rentals like Airbnb.
- Active house flipping.
- A nationwide housing shortage.
- Migration from large cities to smaller, affordable areas.
His advice is direct: “If you haven’t gotten into real estate in the next few years, I think you’re going to miss the bus.”
Key Lessons for New Investors
Smith’s journey shows that real estate success is possible regardless of where you start. By focusing on house hacking, building strong relationships, and exploring creative deal sources, you can make a portfolio that creates long-term financial freedom.
His story is a reminder that you don’t need perfect conditions to begin. You need persistence, the right mentors, and the willingness to take action.
Frequently Asked Questions
Q: Is getting a real estate license necessary for investing?
No, but Morris Smith recommends it. A license helps you learn industry terms and laws and builds credibility. However, he emphasizes that it doesn’t teach investing strategies. You’ll still need to study how to find, analyze, and manage deals.
Q: How can someone with limited funds start investing?
Smith suggests starting with house hacking. Buying a duplex or fourplex, living in one unit, and renting out the others can cut your living expenses and provide income. From there, your track record can help attract investors.
Q: What should beginners know about today’s market?
According to Smith, prices will likely keep rising due to housing shortages and migration trends. That means finding off-market deals, tax liens, or creative financing strategies may be the best way for new investors to get started.
Q: What’s the biggest mistake Smith regrets?
Smith wishes he had started with a multi-unit property instead of a single-family home. That’s why he encourages new investors to consider house hacking right away.