All Things Real Estate - Cardone Zone LIVE!

hey welcome back to the cardone zone it has been too long i have been gone from the zone like a ding dong for too long and grant cardone here i'll come to you every monday as long as i don't go off and do some stupid project like undercover billionaire the most crazy ridiculous thing i've ever done in my life was to go off to pueblo colorado last what was it johnny february so about one year and three months ago i went to pueblo colorado if you guys haven't seen the show you can find it on discovery plus you can download the entire show i think it's six bucks for discovery plus you could binge on it this weekend it's called undercover billionaire on discovery plus the only place to watch the show is the entire thing is sitting there on the app you could binge on it be done with this weekend and you will learn how to go from zero okay from zero uh oh we already got issues from zero to 5.5 million dollars it gets documented on tv i have no money i can't use my name can't use my credit can't call my friends and that's why i haven't been doing the cardone zone by the way the last time you saw me here i was talking about going bankrupt and i was going bankrupt grant cardone became lewis curtis lewis curtis had nothing no friends no money no name no fame but today i'm back and i'm back as grant cardone cardone zone every monday put it on your calendar 12 p.m eastern standard time this is also drop down to what is it uh what podcast formats do we have so we got itunes we got stitcher and we got spotify we got it all just for you okay to get you to dream and everything else you want okay today and the monday show is always about real estate everything to do with real estate what i'm gonna do is spend 30 to 40 minutes with you today talking about real estate at the end of this i actually have a group of people a small exclusive private group of people that are going to do q a with me on a zoom call um and ask me questions they're finding deals i'm working deals with them that group of people how many people are on the zoom call right now johnny we have 500 people 500 people on a zoom call at the end of this i'll be answering questions doing a very private exclusive q a with them every monday up until july 26th 27th and 28th when they come to spend three days with me uh either virtually or flying into miami and spend three days with me at the turnberry hotel right here across the street it's called the grant cardone real estate summit if you guys want to take advantage of that it's only 9.97 you get the six weeks of coaching private calls q a calls that we do each monday and then you also get the three-day event in miami either delivered to you virtually i deliver the entire three days by the way entire time i'm there three full days i did five hours and 20 minutes on saturday i promised people two hours i did five hours and 20 minutes a phenomenal uh webinar on how to get involved in the real estate game today though okay what's the website what's the link for the audience people watching johnny for the uh to take advantage of the the uh the coaching and the summit call that's a five thousand dollar ticket by the way for nine months last summer grant cardone.com summit is where you can grab that grant cardone.com forward slash summit uh it's a steal take advantage of it uh and you'll get either the virtual ticket the virtual ticket here or you'll get the executive live ticket okay and i'd love to see you in july spend three days with you and start showing you how to play the real estate game look i started the real estate game with zero dollars i mean unless you consider thirty thirty five hundred dollars i mean really just to be completely honest my first real estate deal did not cost me zero it cost thirty five hundred dollars three thousand five hundred dollars and it bought it bought a seventy eight thousand dollar house it bought a seventy eight thousand dollar house so i immediately see i thought this was a great deal i thought thirty five hundred this is 25 years ago this is before real estate was in the news like it is today i'm gonna show you that what i mean by that right now i took 3 500 and i bought something where 78 000. do you guys understand that that immediately increased my net worth i went from being zero to having something valuable something that would go up in value i had a toyota truck and a piece of real estate for the first time in my life i mean i had some speakers at my house that i had paid for some old speakers i had an old table you know that i worked from i mean i guess that was my net worth my clothes maybe i think i had an old used rolex it was worth about 1500 bucks at that time it's probably worth 100 grand now but but the point is i didn't have anything real real okay i had nothing in my life that produced income for me until i bought this piece of real estate now more important than this piece of real estate and and i'm gonna go to what's in the news today and what's going on today because some of you are like i could never find that today that was yesterday i'll show you that deal today i'll show you how to find those deals wherever you live right now today because it's not how much you pay it's how can you get in how little can you get in for and how much can you make okay this is what i'm gonna do every monday for you guys put this note hit the notifications uh the little bell on on youtube if you're watching this at youtube i'll come deliver to you on youtube if you want to watch it at apple or itunes whatever you want to do i'm good we'll keep disseminating the information so that i can help you find your first deal this is what i wish somebody would have done for me when i was 25 years old man show me the way dawg now watch this okay this piece of property rented for 575 a month and my note was 375. i was making 200 a month i know it doesn't seem like a lot to a lot of you guys some of you ladies out there flipping baseball cards crossing your fingers on the nfts going to the thing on sundays what's that thing on sunday you go to and you try to sell stuff oh the the trade show no not the trade show the garage sales and what's that other one people do the flea market i mean y'all go there looking i bought something for five dollars i'm gonna send it for sell it for 25 i was making 200 and i never went to the damn flea market i did one deal that made me 200 bucks every month on a piece of real estate that today is worth that piece of real estate is worth 420 000 today maybe more than that and as soon as somebody buys it they're going to tear it down to the ground oh the rent on that unit the rent on that unit let me just give you the math on this deal 3 500 about 78 000 you're like is that a good deal you don't need to do an appraisal to find out that's a good deal that's a good deal would you take 35 and buy 78 000 worth of bitcoin i would would you take 35 100 and buy an elephant that was worth 78 grand yeah but you got to keep him somewhere okay the point is that that house today is probably worth 480. okay the rent when i bought it was 5.75 notice i paid 3 500 for 575 dollars of rent that's cool that rent today is 3100 then and now so you guys are spending all this time doing appraisals and stuff i'm buying a piece of property in houston texas right now i told them i will give them 2.5 million dollars without inspecting the property i will buy the property give you 2.5 million dollars and if i find out anything that i want to back out i don't like it anymore you keep my money because i know that what i pay for this property i paid 3 500. the contract said 78 000. you follow what i'm saying so let me bring you to today okay this is in the news today uh can you show my computer screen the impeccable incredible new york times okay which we know is always correct about everything not renting is cheaper than buying almost everywhere according to a new study renting costs less per month in the 50 largest metropolitan areas in the united states i have been telling you guys for at least five years rent where you live okay this is your house you're gonna have little babies here okay you're gonna make some little babies here and they're gonna cost you a couple million bucks maybe you get a little dog okay and that's your house that's where you live you live at your house and this house by the way you should rent okay rent where you live live rent and take the money that you would have spent on this house the money and the time dude just rent in something a duplex don't even make it nice make sure your kids don't even like it that way they don't hang out with you okay get them out of the house okay so take the money i want you to trade the money and time a lot of people don't understand it's like well if i don't buy the house what am i gonna do no you're gonna take the time and the money and the effort plus the effort because buying a house takes a lot of effort energy things are broken things need to get fixed things need to get moved you get emotionally involved in it your heart gets involved that's going to cost you money man emotions cost you money and then you're gonna take that and you're gonna buy okay multiple doors you could buy one door if you want to i'm gonna do one close i'm gonna do one close about four units rather than doing one close and buying one unit i'm gonna live here rent over here i'm gonna collect rent i'm gonna own it and rent it okay now watch i've been telling you guys for you oh god i'm going to pay more rent where i live do you you're dropping out the second part of the equation which is you're going to earn rent that you don't get right now i would pay more rent for this one house to collect rent at these houses it's the number of units okay this number the number of units is the single most important thing in real estate investing it's not the price it's not the cap rate it's not the interest rate it's not the appreciation it is the number of units because the more units you have the more cash flow you get and cash flow is the name of the game okay so this article talks about rent or buy for those with a choice there's a lot to consider renting doesn't tie you down you can see this at new york times dot com forward slash just go there and you'll see the whole article okay it's going to talk about the different markets and new york for instance new york the median rent in new york i don't believe any of these numbers um to rent you can rent for 1400 bucks you probably can actually get a pretty good deal in new york right now just because of what happened here in the last year the cost with a mortgage is 2 800. typically by the way the cost with a mortgage does not include what about that big down payment okay so what what happens when you own something uh right now if it's above 400 grand you're putting 20 down you're probably going to put 20 down in the gap of the appraisal because most of the property in the marketplace in the united states right now is not appraising so i i'll give you i watched a buddy he was trying to buy a house here the house was 3.1 million dollars he was going to have to put 620 000 down hadn't furnished it yet and then what happened was it didn't appraise by 500 grand so if he wanted to buy that he had to put 1 million 120 000 down because it didn't hit the appraisal so that person would then have to pay 1.1 million dollars to buy a three million dollar house before he puts insurance property taxes uh maintenance furniture etc etc okay now when i rent i would do the same thing when i rent okay but the difference is i get income okay and income is the name of the game when it comes to real estate because if i can income the deal look at san jose california average rent in san jose this is not next to not next to facebook by the way 2200 dollars a month that 2200 includes 1970 built product okay to own that a cost with a mortgage would be 3 300 a month if you can even find the house and again that does not include the down payment let's go to san diego 1658 a month that includes a 1950 apartment as well as a brand new apartment so you know there's gonna be some rents in there that are four and five thousand and there's gonna be some rents down there at 1100 so that's how you get that average rent chicago 1122 cost to own hundred the cost in almost every situation is somewhere between seven hundred and thirteen hundred dollars more to own but that doesn't even tell the best part of the story okay best part of the story is this i bought it i bought a single family rental second house i ever did first house cost me 3 500. second house i learned how to do it with no money i paid what did i pay 92 million 92 million 92 500 that's what i do now look i can't even stop putting the zeros on it uh the my first deal cost 92 500 i just bought a deal in delray was 92 million but that deal i sold for 125 000 i made 500 whatever that is right uh 30 2 32 500 on a zero down payment the return was infinite no money 32 grand after all the payments the rent etc okay i collected rent on it for about three years while i did this and i took no money and turned it into 32 grand that property today because this doesn't take into account the the rent or possibility that house today is probably worth 1.8 million dollars it's in bel air texas the address is 5422 braeburn you can look it up yourself and i could help you find these deals because they're in your market and they're in your market right now okay so if the cost to own in tampa i'll give you an example what you're looking for is the gap the cost to own in tampa is 14.58 for a mortgage plus pmi plus property taxes okay plus maintenance plus uh furniture you got to do all that none of this is tax deductible pmi is not property taxes aren't uh well there might be some degree of the property taxes that are the furniture definitely you could own this deal i'm sorry you could rent this deal or you could you could get 20 of these to be rentals collect 11.23 pmi you won't have pmi property taxes tax deductible the interest rate on the loan tax deductible infinite number in housing it's only the first 750 000 if you own it uh so let me put interest rate on here as well and and then um there's no chance there's no chance that you're going to make huge money on this you're looking for the gap you're looking for the gap between what it costs to own and what it costs to rent and what somebody has to do to own this deal right to own this deal what do you need to do guys got to put 20 down what down payments do you have here zero pmi pmi is basically a fu tax that the lender puts on you because you didn't put enough money down you don't have a pmi the renter doesn't have a pmi i'm talking about my consumer now when you're starting a business you want to know hey does the business work do people need this is it a is it a desirable business right yeah they want it okay they need to live somewhere they can't afford the 20 down payment they can't afford the pmi maybe they can't do the taxes in tampa if this if this house is uh let's see 14.58 let me see what this house would be worth i can back into this divided by point zero zero zero five five this house is worth a couple million dollars maybe is that right two million dollars let me see what i can borrow two million dollars four times no no no that's too high that's 200 1458 a month divided times 12 17 000 a year divided by yeah this house is a four or five hundred thousand dollar house right so he'd have to put four or five hundred thousand dollar house you have to put twenty percent down 100 grand 80 80 to 100 grand you got your pmi you're gonna have your property taxes property taxes on that are gonna be about point zero two times eighty-five percent of that uh property tax is going to be seven thousand four hundred thirty dollars a a year that's another six hundred bucks a month by the way 1400 i own it 600 a month 600 a month 620 a month just for the property taxes so why am i telling you that okay i'm not telling you that because you're going to go buy something i'm telling you that because your renter is making the same decision they're looking at do i own or do i rent in some of these markets none of this even matters because they can't find inventory there's no inventory for people to buy so they're like i have to rent two people that i know that are in miami right now trying to buy a house cannot buy the house for the price they want to pay plus the price they were willing to pay plus the price the seller wanted they cannot get the seller to sell the house even though they're getting the price they want because the seller cannot find a house to move to okay so what do you do okay what do you do where do you get started how do you get started let me pick a city do we have a way for people to post in comments where they are right now yes sir okay and then we're going to open up the phones for our coaching call here in about 10 minutes so you guys just hang in there i got a bunch of people in this chat room right now look at them go crazy atlanta tampa memphis los angeles chicago tampa houston oklahoma city detroit miami east oh man look at the number look at the people charlotte okay so i'm gonna pick charlotte i'm gonna go to charlotte north carolina i'm gonna go to to look for multi-family okay multi-family now let me just tell you this is not really what i would use i'm looking for for sale multi-family this is not what i would use to find deals uh i i would have a list of the brokers i have them in our in our in our coaching booklet i don't know where my booklet is maybe somebody can grab my real estate booklet i guess they took it away from me so i'm looking for multi-family to buy in charlotte and i come out here oh there's one i just found one okay here's here's five units let me just show you this deal okay north carolina i don't i don't know anything about this it's gastonia north carolina i've heard the name but i don't know where gastonia is so i'd have to do some more research right so notice what i'm looking at right now johnny if they can if you can show this i have a five-unit deal and you're like man look at this thing it's a pig side by side man that's sick cardone zone guys if you're watching this on youtube or facebook hit your little reminder your notification so that that uh we just need to pop this up johnny so i don't look so i can't quite tell where i am or we got to dig this out down here one of the two okay and if you guys are enjoying this show if you like the show i'm gonna do it every monday as long as you guys keep showing up uh i'll be taking your calls your questions and i'll be picking places all over the world not just in the united states of america but all over the world okay so this deal is seven hundred thousand dollars it's five units i might go to the bank and say look it's not really five units it's really four units it's only four units the reason i want to do that is i want to get a i want to get an easier loan okay anything under five units uh allows you to get a five percent loan thank you this is the book that i was talking about okay this has all the brokers in the country so i would basically go here to north carolina and where's my guys at in the uh oh yeah here they are okay i'd call i'd call justin good jeff glenn taylor mark alan lynch hunt hunter barron any of these guys are in the carolinas roger edwards uh they're with hhf llp uh and and it gives me a foothold gives me a foothold to start calling people if the loot net doesn't provide me so look i could buy this deal with about 35 000 down i'd finance 715 000 the loan on this is going to be about 28 thousand dollars 30 000 bucks a year i'm gonna go a little high on this this is my debt my payment my annual payment and i teach this in the course never ever estimate on a on a a monthly basis you estimate on an annual basis the reason i don't really care about my monthly note is i i can't keep it for one month and get rid of it so what am i talking about 700 638 665 000 i do math like this the first time i do it is typically wrong there's nothing wrong with doing bad math yeah 26 600 is my annual debt that's my annual debt not monthly debt okay you want you want to do monthly debt on a home good but that's not the way you should do things and you shouldn't do it when you're investing this thing is good it's like the elephant example i gave you you're like what's the elephant got to do with anything because if you get a good deal on an elephant now you need a place to keep him you can buy the elephant you just can't clean up his dung what's it called dunk the dumb okay okay so look my debt is going to be 26 000. the difference between this 700 000 investment this five units and one house is i get to write this off all of it it's an investment your house is the place you live okay when you get the 750 000 worth of debt on a home you can no longer write off the interest okay it becomes everything above 750 and it's going to become harder and harder to write that interest off in the future biden might try to get rid of all of it so that you can't write any of it off i could have seven billion dollars worth of interest on uh commercial real estate and i can write it all off but but once you get to 750 you can't write off anything okay you got it so i'm just showing you some of the benefits and the advantages okay we still don't have a place to live no big deal i'm trying to make money right now i'm not worried about my house i got my priorities right my priority is to create wealth and freedom for my family when i'm 25 years old not to have a cool place to live y'all want to look cool i want to be rich which one you want to do i want i don't care what people say about my watch my car or where i live right now like the people people people coming to my house now they're like do you own or do you rent nobody asks me man people don't ask me if i own a rent people people they know the stuff i'm doing the business that i'm building so get your priorities right and look at the advantages to buying this deal and what's going on and these deals are available today i'm looking at this deal 428 north carpenter 4 87 square feet somebody is going to rent that apartment somebody is going to live here it might not be you but it's going to be somebody love the pine trees okay the rents so now i'm gonna underwrite this deal how do i know this deal makes sense okay uh the rents are six two bedrooms and one one bedroom that's cool seems cool to me 8.50 a month 6.95 a month affordable seems like it to me okay so look if i get five units that pay me an average of 800 bucks a month that's four thousand dollars times 12 equals 48 000 less than 26 000 i manage this thing myself and i make 22 grand a year that means i make 1850 a month and i charge the water the electricity the gas and the maintenance back to the uh renters so all i did was you show me a house that's going to pay you 22 000 a year now what if i could take this house what if i could take this place what if i did something cool there maybe put in a little i don't know what could i do that would be cool at this place i picked a random place right somebody's already fixed this up so they're going to make a bunch of money on you which is that's fine with me too i don't care make some money on me they're going to regret selling this deal in the future at this place yeah well i i probably don't have the room to put in a gym or a pool you could put one of those little plastic round pools in the back have a community pool i don't know you got to you got to figure out how to come up with something cool or creative here or maybe you just found a place where you can raise the rents 200. if i could take those rents from 800 a month to a thousand dollars if i could i'm not saying i can but if you could it'd be cool if you did okay okay 200 times five is a thousand dollars watch what happens times how many units five it's five thousand dollars more a month times twelve sixty grand more a year what did i put down would i pay for this place 35 000 that means i'm collecting on the rent increase okay i'm collecting back my down payment almost twice a year every year i'm getting twice my down payment after i made 22 000 a year so now what am i making i invested 3 500 would i invest in this deal 3 500 and i'm getting 22 000 i feel like i did something wrong with this yeah this is a hundred hunjani it's 5 000 a year isn't it yeah yeah so see i do it like this i do it wrong equals 500 times 12 equals 6 thousand dollars i did it wrong i knew that was too much i got carried away i 10x myself okay so watch 3500 equals the first 22 000 of free cash flow plus six thousand dollars now i'm making 28 000 a year on one rent increase okay let's take some of our callers i just want everybody to understand what's going to be happening with callers here maybe we just let everybody stay for the first one johnny if you guys want to be a part of this every week grantcardone.com forward slash summit that's how you join the second half of this and come to the three-day class the three-day class is five grand and when you go to grant cardone.com forward slash summit you come down to miami or you plug in virtually and you spend three days a friday it's i think it's a win uh wednesday thursday friday what is it thursday friday thursday friday saturday it's a sunday monday tuesday sorry it's a sunday monday tuesday three days with me live in a big classroom right here uh in miami you have the choice to do it virtual you can do it virtual stay in dubai or if you want to travel from dubai or detroit or wherever you are you can either watch it virtual or you can watch it in person i'll give you a great seat it'll be a great time you'll be around investors we're going to actually look at deals we'll underwrite deals and we'll raise money for your deals so if you find a big deal maybe you want to come pitch your deal to me we're going to have a pitch fest there let's talk some of our callers eight six 305-865-8668-305-865-8660 eight and when you come on i'm gonna ask you do you have a question or do you have a deal 305-865-8668-305-865-8668 just so everybody understands when i'm not doing a whiteboard on my deals i have i don't know i probably have i've probably spent 20 000 on legal pads in my career i do all my deals on a legal pad just like this there's no spreadsheet no xl all my smart people put it on an excel but i do it i do it just like this i make mistakes i go back and rework it and then i make my decisions based on location of the asset the cash flow the asset can i get a loan on that asset we'll go over this all the three days how to buy it how to buy it how to fund it how to raise investors for it how to get other people excited about it and then most importantly how do you scale it so you're not buying five units you're buying 5 000 because watch if i put this bad boy on steroids okay if this is 28 grand on my first deal 28 000 on my first deal that's 2 000 bucks a month on my first deal and i only paid 3 500 bucks to get the deal and i still have the deal what if i could do that 10 times okay if i 10x that that's 280 000 a year and now i would have 50 units remember that number i said the most important number i'd have 50 units that pay me 280 grand a year starts getting interesting 10x that you're making 2 million a year 200 grand a month 500 units 10x that let's talk to a caller all right matt from north carolina hey oh matt how you doing matt where is gastonia gastonia north carolina from where you are grant i'm in uh wilmington north carolina but i'm calling about a deal out of charleston okay okay but let me let me ask you do you know where gastonia is yeah i do it's uh suburb of charlotte yes is that is that a good is that a good market or what you know from what i know i'm i'm on the coast out here so i'm a few hours away but the whole charlotte metro is is hot yeah yeah red hot and it has been red hot for at least five or six years it's not a new thing it's just keeps getting hot so okay tell me about your deal in charlotte yeah so this field grant is on a it's on loop net it's on it's a 16 unit apartment building asking price seven hundred ninety five thousand give me the address uh 2107 rondo rndo okay south carol charleston right oh charleston's a hot market man okay okay okay yeah i'm looking at it it's an old motel that's been converted right yep that's it uh-huh okay so i i ran the numbers on this you know i listened to your call over the weekend and you said you know look for situations where it's fully rented and there's you know there's probably a chance to do some value add and raise rent yeah so so give me the numbers again let me let's just walk through the deal how many units 16. and they want one million seven hundred thousand right yep okay my first question is uh what what how would you look uh how would you rate the location that's probably the only criteria i see that's missing here is location i i don't think it's great yeah so look man i always say you remember what i said the other day on on the call location's number one don't don't don't don't ever compromise the location now that being said okay that doesn't mean it won't be a great location like it's just it's got to have potential like if i can buy something it's a good deal maybe maybe i am in gastonia maybe i do you know it just depends you got to put all the factors together but you're going to rate that on a scale from one to five what would you give it five being perfect probably two and a half two and a half oh right in the middle man you really hate this place okay good so 1.7 million dollars you're going to need about 400 grand to buy this deal because it's 16 units okay above four but four it's considered a commercial purchase so you'll need about 25 down maybe 20 percent let me get you down to 20 percent uh we put more than that down on our deals so you're going to finance 1 million 350 000 do you know what the income on the property is 750 per unit fully rented and it's fully rented okay so this is where this is where it becomes interesting okay so 750 a unit uh he's fully rented times 12 how many 20 16 16 is a good number that's that number because if i can raise the rents 400 bucks per unit i make a million dollars that's the math 400 for 16 200 for 32. for every 32 units if i can raise the rents 200 bucks i make about a million to a million and a half dollars on any apartment building anywhere in the world so it's just math it's just a formula we use okay so 200 uh i'm sorry 750 750 times 16 equals twelve thousand dollars times twelve is a hundred and forty four thousand dollars a year do they have an noi on this on this deal do they have something that refers to as like an noi uh actually yeah uh what what is the noise do they say that the noise eighty six thousand four hundred dollars no i see the noi 115 250. yeah 115 250. because they're self-managing the property okay so what what happens is the real noi is not 115. it's really closer to 87 000 so but but if it is it's because they self-managed 12 times 750 is uh 12 000 a month we all know that 12 000 a month is 144 000 a year okay i took basically 60 percent because it's a smaller deal i took sixty percent as as the noi okay noi basically i'm just taking the expenses out of the deal i think i can operate this deal for sixty percent of the gross collected and i come up with an eighty six thousand four hundred dollar noi the difference between these numbers is expenses and again guys look i'll do this every monday for you if you want to keep coming back to the show you just want to watch a show you never want to buy anything from me just click your notifiers on youtube or facebook or or on the itunes podcast wherever you're you're listening or watching just make sure you get the information and you keep getting it every week because every week i'm going to be building on the information from the week before if you want to come to the summit take advantage of the offer it's grantcardone.com for slash summit you come for three days you save yourself four grand and i'll work with you for the next six weeks before you actually attend the summit okay um the debt on this deal is going to be uh 1.3 million dollars that's good debt it's great debt to have have you tried have you priced the loan yet no i have it and wouldn't i have to bring the 400 wouldn't i have to bring the 20 you you need to bring the 350. but i can get you 350. let's get the loan first if you can get the loan first this is how you do things the deal first the debt second then the money that is the right order most of you guys are running around you're running around looking for for the equity cash and thinking you can't buy a deal when you haven't even found the deal find the deal then the debt then the equity the equity will always come so my debt on this deal is going to be about 54 000 a year okay and if it's a good deal in a good location it produces good income you can get debt this is an easier loan to get than your house loan so everybody understands and when the bank sees that you hadn't taken the time to go buy a house that you're more interested in buying this kind of real estate they're going to even have more appreciation for you they're going to be like oh they got they got their priorities right so you don't show up you don't show up at the bank in a rolls royce and you're on the come up you don't show up and you've got all these assets all these liabilities on your net worth statement i got a lamborghini lease i owe somebody for a watch i got college debt oh yeah i went and bought a house because i think i'm i deserve to have a house when i'm 24. jesus didn't even have a house yet he was on a roll he was moving man he said i need some sandals that's all i need okay so let's see uh 1 million 350 000 if i get an interest rate of 4 you can get it less than that i'm borrowing money for three and a quarter right now the loan would be fifty four thousand dollars from the noi okay goes like this it goes gross income less expenses equals noi and this i'm doing all this extra stuff now for the guys that are on this zoom call right now you guys this is what we do at the end of the 30 minute cardone zone the noi less the debt i'm basically showing you the structure of the deal now and this is cf free cash flow gi less expenses equals the noi less the debt equals my my free cash flow the number i'm most interested in on all of this is the bottom number the bottom number is the number that will allow me to keep real estate for 10 years 15 years 20 years or forever cash flow is the reason donald trump had to get rid of the probably the top five best properties on the entire planet he lost the uh plaza hotel because he because he didn't have the cash flow his dad never lost any real estate by the way because his dad always had the cf cash flow his dad had i think they had 43 000 units in new york okay after the world war ii uh they were just cash flowing 400 bucks a month 400 bucks a month times you know 40 000 units okay so look my debt's going to be 54. my free cash flow in this deal is going to be 32 400 do i like the deal what's the gentleman's name from carolinas no if i did my bathroom okay what did i put down on this deal 350. 350. i'm earning 32 000 a year it's a nine percent a nine and a half percent cash flow i don't love this deal bro i i i i want to race it and hug it i want to race over there and steal it from you right now because let me show you what i really like about it and you brought this up because you listened to me on on on the call you said it's full 100 full the only way something's 100 percent full is because 100 of them have rents that are too low so if i could take this times 200 if i could raise the rents going there i'm doing it to a deal right now we just bought a huge deal right here in boca raton about 35 minutes from right where i'm at literally closed on it thursday friday we started raising rents i didn't do anything i didn't even steam wash the place okay that's 3 200 bucks a month times 12. watch this thing watch this thing just go up into the what is that uh thirty six thousand probably thirty eight thousand dollars twelve times thirty six hundred thirty two hundred thirty eight thousand i'm sorry i was off by 400 bucks 38 400 new income new income what was the last income 32 000 the 200 actually gets me more cash flow than the entire building does plus the 32 000 i was getting now it does 70 000 that's a 20 return how excited are you now brother i'm starting to think that location is starting to get a little better i'm like damn i'm getting a woody on the location i'm starting now but but look this is what i said man if you got to compromise something don't compromise location there could be a better location the same deal in a better location but i'd probably try to tie this deal up now last thing and then we'll take another call you got to know how to exit when you get in okay i spent 16 hours where's the book where's the other the real estate course this is the real estate course book that we sell online for 2 500 bucks there's another course a course is 16 hours long we sell that course for 9 000 the course book is what i'm going to be going over in the summit okay we spent five hours talking on this topic on friday or saturday people are like man i can't believe you're never going to talk about real estate again here it is monday morning and i'm talking about it again all right on the cardone zone welcome to the cardone zone the codon zone is back can you y'all give me that video somebody looking for that the other booklet somebody had it in their hand man i know they are i know they i got a great team over here okay good and then and then check it out what you got to know now is what is my exit on this deal i told you guys 16 units 32 units these are critical numbers times the 200 a month let me show you what the new value of this property is assuming i get the old price assuming i bought it and i wasn't an idiot makes me almost 10 a year before i did my improvements and then what i do oh yeah that's why let me let me show them what they're bringing in here to me this is one of one two three four five six books 16 hour program just throw it back up here i guess we'll be talking about it for the next three weeks anyway so they're going to show you what this course is built up is 16 hours of video i deliver the video to you rather than you having to read the books so let me get back to my deal 16 times 200 produces 38 thousand dollars let's assume that i keep the entire 38 400 let's assume that i increased the rent and by increasing the rent by going from 775 to 975 it didn't cost any money to do that i just said i'm changing rents we're going to increase the rents now okay and let's say let's say it doesn't cost me money i'm not saying it won't because because it could cost something in expenses people may want more out of the property because of that if i divide that number by a six cap the return a new buyer would want for this location a two and a half location this money right here this new money if i kept it all results in 640 000 of new value that means the next guy if i could pull this off if my friend from the carolinas could pull this off if he could take these 12 units is it 12 units see i did 16 right here see that's what's wrong sometimes you do bad math so let me fix it great it's 16 you have right oh i had it right okay good beautiful 16. so i did have it right so dude there's another 640 000 worth of value the next guy if i only can keep half of that because maybe when you raise the rents 200 everybody's like you got to do this now you got to do this you got to do that well maybe maybe maybe then then it you're still gonna pick up three or four hundred maybe five hundred thousand i say johnny you got a bell say do the deal or don't do the deal i need some sounds for do the deal or don't do the deal do this deal so uncle g talk to me okay because this would be my my first deal i've got the deal it looks like i've got the down payment yeah what do i do what do i got to do do what you need to do is you need you need to put an loi together you need to make a phone call to the selling broker is there a broker on this deal yep what but is he the listing broker you know if he's the listing broker no i don't know man yeah dude don't talk to anybody else but the listing broker don't talk to some hack oh yeah i can i can get you that deal what did you what tell me tell me a 16 unit deal you've gotten in your career oh i i never have gotten a 16 unit deal good don't talk to them only talk to the listing broker this deal who has this listing if you can't get to that person you call the seller and you tell the seller hey i want to buy your property i love your property your property is unbelievable there's an entire one and a half hours that i teach on just how to make that call how to make that pitch i love your property i want your property i actually have money now i have money burning a hole in my pocket i need to buy the property and you want to almost act like a victim it's the white flag negotiations put an loi together say i got an loi and then ask the seller how would you like to see the loi structure the price the down payment the the refundable or non-refundable money the closing time the due diligence how many days do you think is fair let them tell you how to write that menu like you go into a restaurant what do you want to eat let's go man let's do it dude let's do it and and stay with me every monday i'll be keeping track of you what's his full name you got his full name so let's get his full name and then we'll we'll keep we'll keep uh um track of him to see if we can get one of these deals done and same for everybody out there watching you guys that are on the zoom call right now if you have a deal you can't do it you got a deal and you got a question you got a deal and you want to take it down you want my help money you want my helping questions let's take our next caller this is part of our bonus round today coaching mentoring for our real estate summit that's coming up in july manu how you doing man how are you grant very good what about you good my friend good to see you there thank you so i have two small questions number one i'm another u.s citizen and my dad bought three apartments here in miami he's going to sell one of them for 650 000 and he doesn't have idea about what to do and i i would have tried to help him so what do you suggest me to do so he's going to sell the unit for 650 yeah and is he making money on it no not really is he is he uh does he is it paid for yeah okay what and what does he want to do he he wants his question is what he doesn't know what to do with the money once he sells it he wants to diversify and i'm doing airbnb so i'm trying to do something like together you know yeah what's the location of that property like do you know the high beach house highlander beach yeah yeah sure holland dale beach there yeah you got an address 4010 south ocean drive and and what did he pay for this 730 something like that yeah yeah yeah 4010 south ocean drive yeah it's the high beach house hollywood hollywood beach hyde beach house yeah oh yeah this is a condo right yeah it's a condo uh-huh i mean he has he has one condo and two under the 34th floor that is not like a condo but yeah yeah what is he renting this for how much does he rent the hot house is this is this it right here the one i'm looking at right now can you see it yeah yeah it's similar like that yeah okay how do you wonder yeah two bit two bed two one two bedrooms okay and what's he renting it for i'm randy by airbnb live for five thousand to six thousand a month yeah and her and the other two that he he has in the floor 26 and 27 we cannot rent it so because he's in the hotel program and he's not doing well that's what okay so this is what i would do with these okay i mean is he is he open is he open to uh selling all three of them if he has a good deal yeah the only way he's going to get a good deal is to package the three deals so the way i would do this because what he's going to do now is he's going to grab an investor rather than a lover i know you guys think you can make more money on somebody that falls in love with something actually people that fall in love with something typically don't have money investors have money okay you want to go for the money man the vein is the money not the heart they go for the money find the money okay so if he's got three deals at 650 uh 650 thousand dollar what does he what he paid 700 grand for that deal yeah so he's got a million he's got a million now he's got a million 350 000 worth of deals i threw in a little something for myself there okay is that right one point no that'd be two million two million and fifty thousand dollars yeah two million fifty thousand or two million dollars whatever i threw in another hundred for myself there and i would go to a guy and say look man i got already got rentals i would either show the airbnb model as the potential i would probably do the airbnb um as the potential and then i would do the long-term rental as the downside on the deal okay which would be i mean yeah the thing is that in that building you cannot do more than six months right yeah yeah so oh you can do no more than six months no a six-month rental because it's a hotel yeah uh-huh okay so and what do you what can you get for per month for the rental for 5 000 maybe for for a rental uh for rental i i i mean no nobody does that so i don't really know yeah dude so like if you can get three grand a month i mean i'm just telling you this deal is a freaking screamer right it's that's ten thousand dollars let's just add it's ten thousand a month it's a hundred and twenty thousand dollars a year you're paid for in eight years i don't know how this is a not a good deal and i don't know why your dad's in a hurry to sell it where you listen to that that property is right on the beach yeah i mean i know the property this property could you might be able to get five thousand dollars i'm doing worst case scenario here at three grand a month so i i'm probably going to rent my house that i just bought just down the street from this probably three blocks from where you are right now uh i've already had an offer of a hundred grand a month to rent my house so three grand is not out of the question per night uh you know if your dad wants to blow it out i probably can find somebody that would like to buy it maybe buy them all he look there's a lot of people out there just don't want the headache anymore how old was your dad uh 54. yeah he's like i'm done with this it's he's probably already rich no not not yet okay no okay so so but he just he's just tired of this game he's probably tired of the tenants tired of the problems tired of the tired of the agents that's the kind of real estate you guys are looking for you for everybody listening you're looking for his dad to sell at the wrong time because what happens is you go through three or four or five years bad in real estate and everybody's like i want out of this i don't want to do this anymore and then right when it's getting good he sells there's a lot of people out there just have bad timing and i'm not making your dad wrong when i say that i'm just saying sometimes people just get tired so i don't know if that answers your question but i would air b and b all three of them once the the long term the longer term rental comes off of the other two the location is sick it's just going to get better north miami is in it will end up it won't beat south miami in the future but it will be a contender for south miami trust me people once people go down to south beach and they're down there for a little while and when they finally come once the inebriation wears off they're like i can't keep coming back down here it's like going to vegas every weekend without the vegas okay next caller guys every monday every monday i'll be doing this call live with our zoom call we have 500 and 646 people in the live call right now i got vinnie that's got a question how about i just ask vinny can i just move to these questions johnny i got somebody on here okay then i'll go to vinnie i got igor here jeff and karina we got we got what's going on what's going on you have a deal or do you have a question just just let her know that you're talking to me me i'm talking to you oh i'm sorry i thought you were on the phone can you hear me yeah oh hi grant so i have a question um that's with a deal well a question i was out yesterday looking after listening to you on saturday and there's a community well a new town center that's being built with um 500 apartment units 300 town homes office building that's for sale as well office areas over there it's a brand new senior living area over there as well and it's called melford town center i don't know i'm just getting back into real estate so i don't really know how you would handle this type of situation or deal and i wanted to see if it was something you would be interested in well how big is it what do they want i mean well that's that's my question so i guess i need to contact them directly but it's all new construction i have the website i went on their site yeah where do you live where do you live i'm in maryland okay and the deal's in maryland right so this is a 466 acre comprehensive mixed use uh live work play community this is a development deal is that right correct okay so look there there's nothing there you you want the office buildings are there already okay good that's you don't need office buildings what you need to do is you need to go where people want to live you need to find a deal now i i say big go big or go bigger but don't go insane like go big and go bigger but go where there's income that's why people listen to one thing that i say they come in one week and they listen to one thing and they either take it as a gospel or they're like they miss me dismiss me as a as a devil so like you got to put all the data together there's no cash flow you need to go find a deal with cash flow that you can buy because you can't get a loan on this deal that's why they're trying to raise money you need and they they'll be able to get a loan it's going to be a short-term loan but a new player to the game will not be able to do this you need to be looking this weekend today starting today in your neighborhood do you rent or do you own where you live um you own okay good so within within a half a mile of where you live there's probably an apartment building is that true yeah good i want you to find one that you hate and i want to i want you to find one that you love and i want you to underwrite those two deals and compare them to each other i want you to learn about the rental apartment market in your neighborhood and so you're going to find one you love and you're going to find you're going to find one you love and you're going to do this you're going to basically underwrite the two of them and one you hate and you're going to find a little eight unit deal over here and you're going to find out that the rents are 800 bucks a month you're going to find this deal you love over here and it's going to be it's going to be 20 units and the rents are 1200 bucks a month and i want you to check off why then i want you to figure out how much of a down payment you would need how much of a price you would have to pay and how much free cash flow that each of these two deals will give you just find the one you love and find the one you hate man and just do it like you do when you you pick somebody to go out with i love her but she won't go out with me and i end up going out with the one that hates me or that i hate her whatever right so you do make compromises in relationships and every time you do it does get you something but it gets you something else too sometimes it comes with a disease sometimes it comes with a bad attitude sometimes it comes with bad memories but sometimes it comes with moments of exhilaration temporary exhilaration with real estate by the way you can't you can get rid of a girlfriend or boyfriend easier than you can do you can get rid of rid of a 20-unit deal you just cannot get rid of it just understand this whether it's the one you hate or the one you love it's coming with bed bugs and termites it's coming with toilets that break okay all kind of and trust me it is worth it i love bed bugs i have made millions of dollars off of bed bugs and termites i am i will may i will become a billion a billion dollar forbes player in my lifetime because of termites bed bugs leaking roofs and even some mold issues hey sandria how you doing what's your question question or deal hi grant um it's a question okay um i have two questions actually if i maybe my first one my first one would be what is your opinion on robert kiyosaki's teachings uh i think robert should teach less and buy more again i think he's a great teacher he's a great teacher he's a great educator he's awesome i mean there's so many things i like about him you know i think he's i think he's been waiting for the for the end of the world for quite a while the entire time he's been talking about the world coming to an end i collected almost 3 billion worth of real estate so um you know i what you want to do is you want to look at what people are doing not what people are saying yeah just think that other questions but me and robert if me and robert sat down and we will we i was planning to go see him spend some time with him um we'll chop it up and and you're going to see that we agree on a lot of things i i don't agree on the end of the world scenario okay okay cool and then the other question i have is um would you go for turn turn key ready apartments yes i would distress yeah look at look at the stuff that i'm buying i'm not buying distressed stuff i'm buying turn i'm buying stuff that in most cases is 95 92 93 occupied i'm buying stuff that's operational we're looking at doing some development deals right now for the most part i mean johnny i don't let me just show you this deal that i just i just tied up uh here in the last week look at what i'm doing folks oh it's this one um so many laptops around here man uh show you this deal look at what i'm doing don't just listen to what i'm saying i just bought this deal 235 units 33 east camino real boca raton if you want to come rent there you can okay it's beautiful location's sick it's across from a trader joe okay i'll show you how i bought this deal deal with 69 million dollars in this order what did i make a decision on first the first thing i made a decision on was the real estate it was not the numbers i saw the deal hey would you sell me that deal this deal was bought off market yes i would excellent how much money would i have to give you to buy the deal then i figured out the price then i figured out the debt then i figured out the equity in that order the last thing i worried about was the money not because i have the money but because i know if the deal is good and the debt's there and the real estate's sick good man i can get it done okay this deal was 69 million dollars i put 55 million dollars worth of debt on the deal we we financed not 24 but 24 million plus five and the fives for rehab so about 29 million dollars will be raised on this deal the debt came for me i basically said i'm going to lend the property 55 million i paid cash for this literally but i could have got a loan on it for 55 million but rather than giving the loan to the bank where they were going to charge me a couple of points i just decided to carry it because i do have the money this money here once i showed people this deal i'm like here's the deal i think i'm 20 million dollars i think i paid 20 million this was last week not 10 years ago i think i'm 20 million dollars below the market but the possibility and the potential on this deal remember this number the old 69 okay i think when i refinance this deal i think i can get the noi to 3.6 million dollars that's an increase of almost a million dollars of noi noi is the number you're going to hear net operating income gross income less expenses equals noi everywhere in the world is this going to work in singapore yes because the damn profit and loss statement is exactly the same in singapore and sydney in cincinnati and in montreal it's not it does it doesn't change your languages changes the culture changes the prices change but noise noi man just like income is income expenses are expenses all over the world okay so this is going to be 3.6 million dollars and i think this thing trades at a three and a half cap meaning the next buyer probably gonna be a life insurance company hey man i'll buy that deal uh 3.6 million divided by .035 what did i say i thought i'd sell it for would i pay for it 69 plus 5 74. i think i'm gonna make 20 28 million dollars there i think i'd do that i think i can do that in under 12 months pick up 28 man now when i was on the come up this is what i was doing i was like okay if i could if i could find an asset literally this is all i did in my free time if i could find an asset if i could find an asset i could make one million dollars and then i would be like if i could do that 10 times i'd have 10 million bucks this is how i thought all the time i find one asset i can make 1 million now i need to figure out how to do it 10 times i was never thinking about how to do it one time one time boom i remember i made a million dollars on a deal it's like bam second deal i made five million dollars on a deal i'm like if i could do that now i only have to do that two times and i'm like i can do this two times if i did it once i can do it twice okay so you start playing the game 28 million man then i start thinking hey man how many times do i need to do this to kill a billy 35 times are there 35 pieces of real estate it's all math this is straight out of the millionaire booklet simple math man how many different paths are there to where you want to get to okay corey what's going on buddy grant [Music] can you hear me yes sir good to see you man good to see you man you're looking good you're looking you're looking good in that white you got your tan working man hey thank you clearwater florida beautiful wow what what a market huh i it is it is i am i'm sitting here trying to soak all this in and be a player so um i i i think i'm stuck quitting a six-figure uh in income a year your job as far as getting loans so i'm stuck at you know february of this year i quit that job uh to to run a business a couple businesses on my own i'm i'm pretty much making the same kind of money but it's not provable as far as w-2s go so i get stuck as far as you know how i'm going to get this long without knowing somebody like you or yeah dude okay so let me just say this for everybody this is a great question for everybody in the room you guys got to remember like when when you when you when you there's only a couple ways to get a job a loan right uh the way to get a loan is you got a good credit score you got a job and you got stability okay and you got you got a record you got a record that says hey i i can pay this thing off that's probably part of number one the good credit score and then people like i want to give you some money typically corey they only want to give you money when you don't need it though so that's one way to do it now if you if you don't have the job anymore and you don't have what looks like is stability what you guys got to do is add the optics of the job in the in the in the stability and the thing that is most stable that can appear to be a job is real estate so when you quit your job folks don't go into another new job i'm going to be an entrepreneur that and i'm going to start a new business that makes no money go buy some real estate that produces cash flow the bank there is nothing the bank likes more than cash flow you know i was with my banker uh i was on a phone call with him yesterday yesterday on sunday he's grant you know what we like about you man bro your your businesses make so much money but your real estate okay my real estate does not make the same amount of cash flow my businesses make he says your real estate will beat you because the stream beats the rock i'm out here pushing and shoving all day long every day but look man that real estate is going to keep pushing when i can't it's just going to keep providing that little drip if you've ever seen bubble drip irrigation you know the little bubble drips they put around a tree it doesn't it doesn't sprinkle the way our parents threw water all over the universe it just drips right to that freaking thing that's what real estate is so cory i would just tell you man find a deal number one find the deal two find out what price that deal is going to be three who would be the debt who would be willing to give you a loan okay the loan is going to look like this 100 percent the the the the the real estate's value okay you're going to put 25 down and basically there's going to be some bank some some carnivore out there some you know they're like yeah we'll lend you 75 of it bro and we don't want you to lose it but if you did we know we can get rid of it so that's what you're looking for so get get your debt handled first find a good piece of real estate the better the real estate and the more cash flow it can provide you because they're going to look at this piece of real estate with a dcr now we'll be talking about this is a little more complicated i don't have time for it today and neither do you guys but when we get into the summit the three-day summit grant cardone.com forward slash summit uh then i'm gonna start breaking down dcrs and debts i'm actually going to bring a couple of debt guys in to talk to you about how to get debt what they look at why do they look at certain things dcr is typically a 115 to 125. this is not complicated for all of you that grab the course this weekend start going through your course it's a little more complicated but only because you don't know what the debt the dcr stands for which is debt coverage ratio so if the bank is going to give you a loan for a million dollars and that note let's say that note is uh 55 000 a year yeah 55 000 a year they're going to want you to have about 70 000 worthy income times 125. they're going to want you to have about seventy thousand dollars well the income from the property net noi they're gonna want a 125 cover i'm gonna keep you guys the higher the dcr the the higher the dcr the more the bank wants protection so corey the last thing i want to tell you is this the one question you didn't ask that you need to know is your credit the real estate first then your debt and then your management experience your banker is going to underwrite your management experience harder than they are your income your finances or your credit score you could have a 680 is 680 a high credit score what's a high credit score uh you could have a 900 okay whatever i don't even know what my credit score is can somebody pull my credit score up don't even care stupid dude if you got net worth you can get money the way to wait you know so so two things you need net worth and passive income as long as you got passive income that somebody can tap into they're cool okay grant cardone here every monday i'm gonna do this if you guys found this valuable please let me know we also might do some bonuses during the week so don't be surprised if i don't send you an email keep your emails make sure they're not going to your trash box because i could send you an email in three days and say hey i'm gonna do one of these friday nights so come if you've ever joined anything i've ever done before i always deliver more than i ever promised to deliver uh we we were gonna do 30 minutes today we're an hour and 15. saturday saturday i i said two hours i did five hours and 20 minutes so make sure my emails to you are not coming to your trash i know i send a lot of emails out if they bother you sorry i'm trying to help you ass okay so um i'm gonna keep sending you emails until you block me you block me you don't want my emails anymore no problem i'll find you some other way you can't get away from somebody that's committed and i'm committed to helping you guys this is what i wanted when i was 25 years old what i'm giving you today i didn't need it from 50 people i needed it from one person like if i was 25 years old today i would not be on instagram watching 500 people i all i ever wanted was one person that i could emulate and be more like okay that doesn't mean you're going to be exactly like me there's things i say there's colorful things i do there's crazy things i blanch off into you know whatever you know that you they might even offend some of you um but uh but uh you know whatever man i'm not asking to be just like me i'm saying hey if i can help you get more just if i can help you reach a little closer to your potential because i know you can do more everyone out there i know you guys can do more you know you can do more and that's not pie in the sky that's not like oh 10x and everything's just fl it's a fluffy idea i'm telling you you can do more i know you can so find great real estate do what i told the lady find a piece you love and find a piece you hate and underwrite them against one another why do you love one why do you hate one you might find the one you hate is a better deal by the way look i've been out with some people before where i'm like i thought i was in love and it was like oh my god this is the worst decision i ever made in my life my eyes were in love this thing came with so much drama i couldn't i couldn't like so just because it looks good don't mean it is good so do your underwriting do your homework study the game and the last warning i want to give everybody is this okay in addition to find somebody you can study they don't need to be perfect number two you got to decide what you're going to study so when i was trying to learn real estate i was not studying nuclear uh physics i wasn't i wasn't trying to become a social media influencer just so everybody understands grant cardone uh who who just rated me the number one social media influencer in the world no no it was somebody else i just saw it pop up today i did not go after i did not try to create a social media influencer that was never uh oh i'm gonna become the top rated i got it from forbes last year and somebody put me on their list this year so what i have been trying to do the whole time is get a bunch of damn real estate i have never bought a piece of real estate that didn't make me money i bought pieces of real estate that made me more money than less money but i've never bought a piece ever that didn't make me not just passive income every month but also a score later and some of these scores were massive and i'm telling you they're in your backyard the reason i'm giving you this information is if i was 25 years old this is what i would want from somebody and number two i can't be where susan is i cannot be where denise is i can't be where mary is okay gwen gwen morgan she she she is where she is and she sees real estate city that's already been built and tap into the income i don't need to build a plane i need to buy one man it doesn't make any sense i want income i'll let some guy make 20 million on me to build it and and and sell it to me so that i can earn the income i don't care it doesn't bother me at all so if i can learn how to build this stuff for for 30 percent less we're looking at doing that this year we'll i will be teaching you about development deals in the future uh bettina tina you got deals in your backyard might be a screamer so over the next six weeks for everybody in our program look i want to meet you in person ask jared how many people confirm for the live on the virtual summit like as many can come as you want but if you're coming to the live summit if you're going to come here in july you should get your room get your hotel get it booked because it will sell out there's only going gonna be about a thousand people there i've sold 34 000 person events out so trust me this thing will sell out so if you're willing to spend the time and the money to travel to miami it's in july it's balmy so good for the skin i love july man that's when you just walk outside and you just you just oh the skin's so tight and right and you know i'm telling you i go to arizona i look 10 years older come here i'm all plump feel like a little baby good good and i'll get to him in a second johnny i just want to finish this okay so if you're coming to miami and you want to be here in person this event will sell out okay no matter you already bought your deal and everything if you call and say hey i want to be there live and i can't be it's because i have a physical number of seats that i can sell and that's it how do they make sure they get a live event how do they do that jared do we know so they're going to go to grand cru no no no no no that's not what they're going to do you're you're you're listening to something else uh you need to ask jared that's got nothing to do with it i'm saying we got a bunch of people there's 813 people confirmed live okay so i got 170 left hello and thank you jared doesn't answer my phone anymore he's got some weird google device so um yeah you got to select the lab when you go back if you didn't hey man come in here okay yeah he didn't answer my call but he took my facetime uh yeah so look we got like a hundred of these left and there's more people that want these seats than we have these seats so if you're going to do that grab that because i want to you know if you want to be here i want to meet you it's three days we're not in a rush it's in july what i mean is the three days i don't have to rush the content and it's cool man and the the people you're going to meet there by the way bring your deals you've got about six weeks to start putting your deals together because i'm going to grab people from the audience and say come pitch your deal now the deals that excite me if you want me as an investor it's got to be 200 units at least 200 units come here man okay if if you want to raise money from the crowd it could be less than that it can be less than that but don't like you could bring me a 30 unit deal a 20 unit deal and i could get all excited about and say i'll do that deal let's go you be the sweat i'll be the money jared's seen me do this before so we've made we've made huge money on smaller deals i always say i'm looking for 200 units we bought a 104 unit deal that we made eight million dollars on eight million and we'll continue to make more and have no money in it i put in 400 grand in the deal i put in 300 jared put in a hundred we made eight million dollars i feel like i'm almost feeling like it's right like it's wrong okay all right jared so this is for everybody that that uh steve joe chris they took advantage of the offer but maybe they haven't committed to the live yet i'm just trying to explain and we'll continue to explain to everybody and we'll get more people in every one of these calls but if they want to be there live who wants to be there live who knows you want to come in and be their life just put yes in the comments if you want to be there live me you want to meet me the team uh elena will be there you know what i was saying what is that the and we do all kind of crazy stuff once y'all get here we do okay man i was just going to say that like the networking it does it's feeling very the network the networking at this vent alone will be worth you getting on a plane and flying here the real estate crowd is like any other crowd unlike any other crowd we know you can't ever you can't do a real estate deal by yourself you got to get connected with people uh the networking is going to be off the hook that'll be crazy it'll be it'll be and the thing i'm looking for is people that come in the reason i'm so excited about you guys coming in and we meet i mean zoom's cool right but ain't nothing cooler than meeting people so just say we still have room if you want to come live yeah so so and the reason why i want to meet you is because at the end of the day i'm not just investing in real estate i gotta like we got to do eyeballs the zoom's cool but i have been tricked before you know what i'm saying i have been triggered before i i've been on instagram before when i met somebody i'm like uh you're a different person yes angela you can change to live just call the office or email events at grantcardone.com i met i remember before elena i was dating i forget what the dating site was back then but i was dating match online was it match match.com anyway it i don't think it was kristen mingles because christian mingles because match was the original it could have been christian mingles though i'll go there and anyway this woman showed up in san diego i flew across the country and i'm like uh that's that's that that's not that's not what was advertised here we it was so different it was like and that was that's cool too like it's not a bad thing it's just don't don't misrepresent so anyway i want to do business with you guys i want to help you guys if you can come down to miami great uh i want to finish on this debt coverage ratio thing so i don't leave this unfinished for you basically the dcr the dcr is if you have a million dollars a million dollar loan or you could take the zeros away it's a hundred thousand dollars if you have a million dollar loan and that loan is going to cost you 55 000 a year this property needs to produce 125 percent of this noi in order to get this loan checked off okay so so i'm gonna do the math on it we'll do this i'll be going we'll be going over a bunch of deals in the summit over and over and over again until you guys like i get it i had to see some of this stuff like 12 or 15 times before i'm like i think i just understood it for the first time uh ryan secco that works with me every day he came in here ryan had been here probably three months and i was on a deal and i said what's the noi on the deal and he starts scrambling looking and i looked at him and said he'd been doing real estate i think he did kiyosaki's class he did dave lindahl's class uh maybe one other one other class and i'm like ryan you don't even know what noi is do you and he's like yeah yeah i know i said well good show me how to figure it he did not know how to do the noi so and he'd been doing real estate a long time because the thing about real estate man is it's so forgiving just don't over leverage it your bank is your friend here so 55 000 times 125 is going to be 70 yeah 68 000 right i need an noi of 68 750 why is that important so that when i go to the bank i'm like hey what dcr do you underwrite to corey you remember that corey asked the question doing all the white and white hat and everything you asked the bank what dcr do you write to oh we write to a 128 125 131 a 115. the lower they go the more they love real estate this kind of real estate once they tell me that i'm like great dude i don't want to bring them a deal it's like a bank is like a a patron in a restaurant okay don't bring me lemon pie if i want banana pie i'm not gonna be happy with it man bring me some banana same thing with the bank right so i'm gonna bring them a deal i know i need an noi on a million dollar deal of 68 which means i need a 6.8 cap rate i'm looking for a piece of real estate million dollar piece of real estate that produces a 6.8 cap rate get it simple you don't get it 99 of the people that are on right now did not get what i just did i basically found a bank that would give me a loan and backed into a deal so now i know what i'm looking for but look just because you don't get it the first time that's why you got the course a 16-hour course start listening to it don't expect to learn it the first time i've been doing this 35 years i don't even i don't i'm still learning so what i ask questions i ask dumb questions all the time i make it a habit to ask dumb questions let's let's talk to to to one more caller who is that god dang man you 10xing me his mind's not working okay every monday make sure your emails make sure my emails are not going to your trash because i wouldn't be surprised if i don't wake up tomorrow morning and say we're gonna do one of these friday morning or saturday at noon maybe we do it this saturday i don't know but just be ready for it okay because if i tell you i'm gonna do six weeks i'm probably gonna do ten don't hold me to that but just be ready for that if you want to come live i think i think you can go back and clean up your your pick because we had a bunch of people email us over the weekend really appreciate all of you being here appreciate you being interested in your career in learning in education but mostly i appreciate the fact that you obviously have a commitment to financial freedom for you and your family because the cool thing about real estate folks real estate is not just about the buyer real estate lives on so long that it's about the family okay and it's about i sat down with an uh an estate planner the other day and he's like okay grant let's have this conversation this was on friday what if something happens to you i said brother what i need is the the plan on what gets sold and what doesn't get sold and so we started going through it you know i'm saying sell the helicopter sell the jet sell the condo sell the house keep all these things okay well keep all these things means keep the income from these things and now i'm going to decide where to redirect income the cool thing about real estate is once you buy it unlike your business by the way unlike your business real estate will continue to provide your family with cash flow tax advantages and the possibility for long-term appreciation because the last thing you want to do to your kids your grandkids or even your charity the last thing you'd really want to do is give them a bunch of money can't handle it man i don't need a fire hose i need a drip so my kids my kids i'm not going to give my kids 400 million 500 million dollars boom here two billion dollars worth of real estate but i can give them a drip every month same thing with my church i give my church a trip i can give my favorite charity a drip okay i was giving money to a charity a couple years ago found out they weren't doing the right things with the money dude boom i'll never give them another penny ever again ever last thing i want to do is dump a bunch of money on a bad organization so people change things change okay hey god bless you guys appreciate you being here next monday 12 p.m eastern standard time appreciate you being here thank you so much if you haven't taken advantage of the offer grantcardone.com summit it's only 997 bucks you get a three-day event with me and all the coaching calls thanks a lot you

Channel: Grant Cardone

Views: 40,555

Keywords: grantcardone, grant cardone, 10x, money, finance, business, sales, motivation, yt:cc=on, WeAre10X, 10XNation, 10XStrong, 10XLife, 10XEverything, real estate, real estate investing, investing in real estate, income, cash flow, apartments, single family, commercial real estate, section 8, housing, homes, owning a house, renting, rent

Id: QKwCotbR8PI

Length: 93min 59sec (5639 seconds)

Published: Mon Jun 14 2021