6 Reasons Real Estate will go Higher - Grant Cardone

hey grant cardone here and i want to share with you why multi-family apartments real estate particularly in the state of florida is not too high i know a lot of you out there right now worried about crash coming real estate crashing out um not to laugh at it's not a joke it is a possibility and i'm gonna share with you today though why multi-family particularly in florida fort lauderdale miami you go to orlando tampa the gulf coast of florida and why there cannot be a crash there and why in fact we're at the beginning of a super cycle in the appreciation of real estate values in the state of florida which will probably extend to all the states connected to it georgia alabama texas will benefit continually arizona will as well the carolinas and i'm gonna tell you why okay there's basically about six reasons six primary reasons number one interest rates are at all time lows now the kind of real estate we're talking about right here is particularly like these big buildings okay so what does interest rates have to do that typically interest rates are considered to be a driver of single family housing but what's happening with this particular asset class the multi-family is traditionally single-family houses you know for the 60 years i've been on this planet were bought by single family homeowners people that were interested in mowing their grass and fixing the roof and painting it raising kids there schools you know raising their children there and and settling down maybe getting married for the first time well those homes today are being replaced by investors because of the low interest rates three and a half percent four percent even lower in some cases investors are able to pay premiums on single-family homes that the rent from that single family home has never been done before in my lifetime and never before in the history of this country where investors are now investing because of low interest rates in single-family homes as a rental stock okay number two reason and that's not going to that's not going to cease by the way number one reason it's not going to go away because the fed has already said it won't be raising rates they're saying there could be some slight uh adjustments over the next year but we're at all time lows right now i just got a loan on this particular asset right here behind me i think the loan on that is going to be two point eight percent it's crazy below three percent is insane on a tremendous amount of money by the way it's 160 million dollar loan so that that makes that allows me to be able to actually pay more for the property and i think uh this is a bit of a contrarian view but i think that real estate interest rates will actually go down uh before they go up they might spike a little bit but they'll fall before it's over with i'm gonna spend three entire days talking about what kind of real estate will be supported by these six reasons if you want to grab that hit the link below i'll give you a free training then i'm gonna talk to you about a three-day training but i'll give you a free training if you want to take advantage of that click that link and i'll give you the free training if you want to come visit me for three days i'll give you that link as well here here below okay number two reason we got supply issues now the state of florida where i live here in miami and aventura the uh we've had a supply issue for 15 years housing supply shortage that housing supply shortage has also been extended to utah nevada texas texas a little less than others but they're still not building many single family homes right now if you look in your city in the carolinas georgia alabama they're building apartment buildings to replace the single family homes why is that because the cost of single family homes to build a single family home is prohibited and the builder the same builder the the guys that have been building for years the the major top three builders are actually building apartments rather than building single-family homes because they can make more money on an apartment deal than they can building a single family home they can actually do it in less time build out more units reduce their risk to their investors than their own money and so you're seeing a shortage of single family homes also back to number one that single family home shortage the supply is being consumed by investors creating even more of a supply problem and there's literally no way to fix that problem in this country on top of that there is a shortage of all affordable housing in america there's nobody building affordable homes there's nobody building affordable apartments it is not being built as a complete shortage which creates a tremendous upside opportunity to the affordable end of multi-family the middle side of affordable and the low one there's no low and there's no affordable and there's no moderate guess what pushes everybody up the food chain number three reason uh the return of the international buyer particularly in the united states of america especially in the state of florida okay the russians the europeans south americans and the mexicans have been removed from the market for two years because of a thing called covid 19. look they're not here those buyers have completely uh gone from the marketplace and the marketplace went nuclear without a demand without a buyer okay literally we lost five different buyer types the russians we lost the the europeans we lost the south uh south south american money we lost uh the mexican money maybe there's four four major the canadians yeah we lost those because they can't come down here and do do do diligence on deals so we've lost that buyer when covid the delta variant omnichrom whatever you call the next version of whatever this thing is when that finally dissipates and goes away and we get a solution to it to whatever it is those different five buyer types will push money back into the united states and start buying these same asset classes uh that they were buying before covet fourth reason we have migration massive amounts of migration you can dispute these six things as much as you want but the reality is they're reality and you cannot dispute the reality that we have migration from new york new jersey i don't even have to say the places everybody knows what they are the entire state of california is moving into arizona into nevada into utah they're going to continue to migrate west or east they're seeing that in texas you're seeing elon move out of silicon valley down into austin you're seeing expansion into the south and into florida with the spacex so that's going to continue to happen also new york city technology new york city fund companies hedge funds we're moving into miami and fort lauderdale like this place is on sale that has influenced the pricing and appreciation from palm beach to fort lauderdale down to miami like at rates we have never seen before in fact we have we have migration in florida this year from the state of california which used to never happen people never traveled that far at historic levels we have more people coming from the state of california than ever before in the history of the state of florida okay fifth reason big eye the old inflation inflation is here they say it's caused by money printing worldwide okay america is not the only country that printed ladies and gentlemen y'all talk about four trillion dollars printed or six trillion dollars what seven trillion dollars is printed by the united states government understand that every single country in the world printed as a result of the pandemic um so what happens when you print that much money when you print this much money guess what it's gonna lift pricing it's gonna lift pricing now pricing has only been lifted about 15 or 16 percent nationwide we printed 40 percent of all the us dollars in circulation today were printed in the last 18 months now remember that with real estate okay and again i'm going to show you there's a particular real estate class in a particular location in a particular size that i'm going to show you for free that you should be looking at in your city if you find these assets and you will if you look if you know exactly what you're looking for i'll show you how to buy it i'll show you how to do it with no money down i'll show you how to raise money if you need money most importantly i'll show you how to get debt on the deal and then i'm going to show you on top of all that i'm going to show you how to actually increase the value of that one property by at least a million dollars or more and doing that with no money no debt no credit no no no nothing i'm going to do that for free all you got to do is click that link and i'll give you that entire tr training all i ask you to do is go put it to use become an investor and then tell people hey grant cardone turned me on to this freaking super freaking hack in real estate but remember this if if we printed all this money okay and 40 of the us dollars were in circulation today that didn't exist before okay and then we have appreciation you'd have to expect some appreciation because of that let's see we had 20 appreciation okay this is not to scale but remember this is a massive print up here 40 of all the us dollars in circulation today were not in existence 18 years ago so these property values this building's value went up by default by twenty percent everybody's like oh my god uh housing's over price the apartments are overpriced people are paying too much well what you don't understand is this when i buy an apartment i'm borrowing four times my down payment so when you say there's four trillion dollars was printed actually four trillion dollars would buy 16 trillion dollars of real estate 16 trillion dollars you're talking about entire countries like maybe all of europe's gdp or some some ridiculous number right so these numbers the the value of real estate the argument could be made based on basic economics the the value of this real estate could literally go up to the same level of what the print was because i'm borrowing four times the money to buy real estate uh this particular property behind me okay i'm putting a fourth of the property's value down okay so i'm buying the property's value at this point and i'm only putting a fourth of the money well how much money was printed four or five trillion dollars four or five trillion dollars would literally buy 20 trillion dollars for the real estate so things could inflate another 50 percent easily maybe even 100 before we actually caught up with the money supply that has been created okay number five i think number five or number six the demand for yield is number six actually the demand for yield okay there is no place to get money today and this was the original inflation that's been happening over the last 10 years what nobody was talking about interest rates 10 years ago were about five percent then they went to four and a half then they went to 375 then they went to three and a half then they went to 3.18 then they breached three and everybody's like oh my god interest rates are so low at the bank i'm talking about what you earn today the interest rate in a bank today is point zero one eight that is literally one what is that one set one one eight one eighth it's like it's nothing it's a it's a it's a it's a you need eight years to earn one percent eight times point zero one eight is what 96 almost a hundred so one percent so you need eight years to literally earn one percent on your money every ten thousand dollars then earns one hundred dollars yeah one hundred dollars every eight years are you kidding me this is crazy swacko so point is how can real estate be overpriced already too high how could it crash here's six reasons okay money supply interest rates return of the uh international buyer migration patterns that nobody can dispute inflation and lastly money's got to find the yield ladies and gentlemen money must find a yield okay the average dividend of an apple stock is point zero one five percent it's almost a quarter of a percent or less okay uh bitcoin pays no yield ethereum pays no yield checking accounts pay no yield money markets pay no yield mutual funds pay almost no yield att yes it pays a yield it pays eight percent and it lost thirty percent of this value this week okay so the things that are paying yield typically have more risk with them they'll probably reduce that yield like they did during copay by the way dividend yield and when there's no dividend yield guess what people have to buy they got to go to buy real assets they provide cash flow that's why i believe these apartments they're trading for three and a quarter cap right now okay five years from now there'll be a two and a half cap two and a half count the cap rates will actually go down which means the prices will go up if you want to learn more about this and how to take advantage of it in your own backyard click that link my guys gonna give it to you for free it's a three hour training completely free no strings attached grab that thing then if you really love that you're really serious come to one of our live trainings it's a three day training with me i'll share with you exactly what look what you're looking for how to buy it how to find it maybe i'll even put money in with you okay our three-day class we put together investors and people start looking at deals together is it a good deal is it a bad deal is the location right can we get a loan can we get a better loan can we get a better price how can we raise the money maybe from that audience so this is free just click the link it's completely free if you want to come see me at the three day event uh make that decision later and then i'll hook you up with other investors banks lenders due diligence underwriting's done for you literally i walk you through the entire process and show you how to find your first million dollar deal it's in your own backyard maybe three million maybe five million look my first deal made me 3.8 million dollars on my first deal with no money down okay that deal is out there in your marketplace today go grab it hope you enjoyed this subscribe to the channel uh we drop a lot of video here and i'll give you a link to the transcript of this if you want uh that'll be in the link below uh make sure you got notifications turned on i drop video like this constantly i want to show you how to get the game i started with no money we have four billion dollars worth of real estate and for whatever reason i take the time once or twice a week to drop a video like this to share with you because i know i'd want that if i was going to come up what i'm learning from the real estate game how you can get in the game hopefully it provides you with inspiration and a strategy and maybe you're one of those people that actually takes the information and uses it puts it in place and all i ask you to do is turn other people on to it let them know hey man this guy grant cardone is helping me in the real estate game i can't buy everything but maybe the two of us together can start buying more stuff okay god bless be great go get that deal [Music]

Channel: Grant Cardone

Views: 60,288

Keywords: grantcardone, grant cardone, 10x, money, finance, business, sales, motivation, yt:cc=on, WeAre10X, 10XNation, 10XStrong, 10XLife, 10XEverything, inflation, interest rates, supply issues, international investors, international buyers, migration, massive amounts of migration, demand for yield, return, return of investment, opportunity, multi-family, mexican, russians, Canadians, europeans, 6 reasons Real Estate will go higher, higher, lower

Id: YuLHuIawFus

Length: 15min 34sec (934 seconds)

Published: Sun Dec 05 2021