Buying a House Vs Investing in Apartments - Real Estate Investing Made Simple

[Music] [Music] [Applause] [Music] hey welcome to court owned real estate investing made simple grant cardone here and every Monday I don't know why I use my last name and the introduction in this show every Monday 12 p.m. Eastern Standard Time I come to you to talk about real estate investing how to make it simple that making a lot of noise how to make it simple how to work out how you're gonna buy multifamily how you're gonna get investment passive income being invested so that you can start taking care of your family long after maybe your career or your job last alright today I want to take up a topic that I have been asked about it at least 80 times in the last since the last show that question is this Grant Cardone says that buying a home is a bad investment it cannot be true make people tell me it is impossible my daddy told me that buying a house is the one of the best things I can do actually at CM EC this week CNBC came out and wrote a report that said build a buying a house actually is proven now not to be an investment or a place to build wealth but but it is could be considered a place to save money so what I'm gonna do today is I'm gonna bring in my magical white board because I don't want you to make the mistake there's so many millions and millions can you look up how many millions of people in America owned a home how many millions of American owned a home number one number two how many millions more want to own a home cuz no matter how much I tell people don't buy a house I still have people reaching out to me dude uh you know I'm buying a house I got three hundred grand in a house I got a hundred thousand dollars to equity in a house I'm looking to buy a house I had a young gentleman starting his career starting his business twenty three years old talking to me about hey I'm thinking about moving out and buying a house and if I do that is it cheaper to buy a house is it is it smarter for me to buy a house I'm like dude don't okay how many times do I need to tell you guys it's call me 3:05 eight six five eight six six eight what I'm gonna do is show you this right now I'm gonna say let's say you have $300,000 you want to put down to buy a house okay you now have a nine hundred thousand dollar liability you got to pay this note every month that will cost you about $54,000 a year not bad okay you're like oh I would never buy a house I would never buy a million dollar house but that's the example I'm gonna give you this is really for all of those out there that have some money saved if you don't have 300 grand yet don't watch your show okay or if you think one day line you're gonna have 300 grand then maybe you want to watch this show because at some point you're gonna have 300 grand you're gonna be like what do I do with it don't do what your daddy did with it if you have 300 thousand dollars for the equity in your house right now you need to pay attention what I'm gonna tell you right now and yes I'm going to shake my finger at you okay look if you've got 300 grand in a house I'm gonna prove to you today that you would be better off investing that three hundred thousand dollars in an apartment deal okay I'm gonna take the same situation a million two hundred thousand dollar house if it's one door nine hundred thousand dollars where the liability it would cost you fifty four thousand dollars a year plus taxes plus insurance plus upkeep okay now I'm gonna put a stake in the freaking what's his name what was the guys that the only way you could kill him was with the steak Dracula okay this is your Dracula right here I got old Mon house I never have to own a house it's the American Dream man it's a way to get wealthy okay this is a way to get wealthy this is right here okay I'm the guy that cause on bullshitters this was the biggest laid on the American people by the banks this wasn't a conspiracy man this is the sales program the bank's sat around and said hey what could we new to get the the people every day people not the rich people do not the rich people okay how could we get everyday people there's not enough rich for the banks those banks are made on the backs of little people what program can we get to little people the everyday people on oh why don't we get him my a house man just freakin anchor him down dog lock him in 30 years I had to pay for that thing he'll never walk away from it the deal was so bad in 2008 the number one thing people walked away from in 2008 was their how they kept the credit card can you believe that people walked away from their homes and kept their little plastic card okay watch this I'm going to take the same 300 grand by the way if you got 300 grand in your house right now I would tell you to sell that house take the 300 grand buy a 1.2 million dollar property it'll buy you about 20 doors in Atlanta Savannah Daytona okay Mobile Alabama it'll buy you 20 units those 20 units should produce $30,000 a year in positive cash flow okay this $900,000 where the liability is no longer your liability this liability is transferred to the property not you and that debt will be paid down about $18,000 a year pay down on the debt about 2% of the debt total debt in this case nine under grand well born the same nine hundred grand but you don't have that liability anymore that liability has been transferred over to the LLC the limited liability corporation you don't have that liability anymore you are 30 grand pay down the debt eighteen thousand in ten years you will have $300,000 about a hundred and eighty thousand dollars paid down and by the way you didn't they give you the payments over here what do you got you still freaking mowing the lawn man this got his lawn mowed call me 305 eight six five eight six six eight if you can show me where I'm wrong I'll give you a ticket to my 10x growth conference in there five grand I'll give it to you right now while we're here do you understand what I just told you okay oh by the way in ten years which one of these is gonna be worth more money let's assume they're both worth a million to today in the year 2002 d7 which one of these is worth more money before you answer that question let me ask you this one which one did you pay the least for this one you're paying for every month this one pays you every month it's simple folks keep it simple I'm calling on the bullshitters [Music] rethink juicer experience rethink the digital sales process and rethink how you communicate with your customers pixel 506 is a digital design agency marketing and development company with one goal in mind how do you effectively simplify your digital presence to make your prospects do more business become excited and now who are involved in any network marketing direct sales or MLM company we have a full solution for you if you want to work from home or even make your downline in public sales bigger pay attention to this offer global affiliate marketing pros is now offering training on grant cardone sales training university camp will provide leads for you every single day all unique all fresh and willing to buy with full financing for your product sales and offer weekly grant cardone sales training mastermind calls we are your crm we've built your sales funnels and automated your sales follow-up process and we've built the foundation for your business already all you have to do is show up and drive and you can do this from anywhere in the world we've changed this industry forever the question is are you going to be a part of it we don't believe in following the path we believe in the pace it's time to become your own boss [Music] franchising is listed by Grant Cardone is one of the ways to become a millionaire let the experts have brain finders be with you every step of the way as your partner finding buying selling and promoting franchises with over ten years experience brand finders is the company that helped get set up the franchising to help you get set up with owning your own franchise and finding a franchise that's right for you visit Fran finders calm that's grand finders calm to get started with your search today hey welcome back to real estate investing made simple grant cardone here every Monday every Monday we go insane baby we challenge the insanity what you think your sanity I will show you as insanity how many millions of people run have bought a house in America 100 well that doesn't tell me that so 125 million households that does not mean of the 125 of the 300 million people that live in America 180 million of them have homes how many people in America own a home by the way even saying that you own a home is ok in 2014 homeownership dropped to 64% that's the lowest since 1960 it still doesn't tell me how many people actually own a home by the way nobody owns her home most people do not own their home they have equity this guy has equity in his home he doesn't own his home the bank owns his own oh I own my own home no you know the bank owns that home and by the way when you pay the house off the Internal Revenue Service the federal government owns that home because if Francisco don't make the tax payment you own the liability of that home what's the liability the debt well my house is paid for then you're just a bigger than you're just a bigger dummy don't don't brag about Oh my house is paid for it then you're just a dumb or dumber because now you got a million point one point two million dollars trapped look what you you don't want your money trap you want your money grow in and you want your 300 grand paying you not you pay in it right so watch if I have $900,000 for the debt in a house that cost me fifty four thousand dollars a year in payments it costs me taxes are going to be at least twenty four thousand dollars a year about two percent of the price of the value of the house okay you got upkeep I don't know what that's gonna cost you you got electric bills okay you got utilities you got landscaping okay oh you got taxes I forgot about that no I you did in taxes you got insurance so you gotta figure insurance gonna be at least five thousand bucks a year what did this house cost this guy okay he's got three hundred grand in let me ask you this question what did it pay him nothing why because it's one door and you lived in it I gotta live somewhere good once you go live over here in these 20 units in if you gotta live somewhere why don't you live in one and rent the other 19 out and be the manager I got another job so what Warren Buffett's got more than one job why do all the rich people have more than one post one obligation one responsibility you guys are responsible for more than just one job oh yeah work so hard hey quit cryin quit bitching and start getting rich is what I tell people man look do what everybody's trained you to do and be like most people or do what other people do they break out if you keep doing what you've been doing you're gonna keep getting what you've been getting if you keep believing everything that most people believe this is a scam folks this was done for the banks okay now this over here very few people do watch what I'm gonna do over here I'm gonna take a million-dollar let's just change this to an apartment right now you remember what this cost you right here right okay let's do this take it a mill 1.2 million dollar house take your equity from your house sell your house put it in this bar nine hundred thousand dollars by the way the bank's gonna require you to put that in the name of an LLC limited liability corporation I can help you show you how to do this it's gonna be a single entity LLC in fact then the bank will show you exactly how they want this set up so don't research this before you get the loan now this thing right here should pay you about 10% a year we are in 15 to 22 percent on our deals every year okay so what let's say this only pays you 10% cuz you don't know what you're doing that's 30 grand a year plus I'm gonna get a buy down I'm gonna get a pay down of the debt of about 2% a year 2% of 900 grand is 18,000 bucks a year I don't pay the taxes I don't pay the utilities I don't pay the electricity do I pay do I pay to mow the lawn there no it all came out of the proceeds the income of the 20 units with me right okay so what did this earn me this earned me 48 thousand bucks a year times 10 years that means I earn four hundred and eighty thousand dollars on my three hundred thousand dollars where's my three hundred it's in the property it's in the property but I earn four hundred and eighty grand over here you with me and I haven't sold the property yet in 2017 I'm sorry in 2027 if I go to sell this 1.2 million dollar apartment good location good property good tenants versus selling your 1.2 million dollar house would there be more buyers for something that produced income or more buyers for your 1.2 million dollar hell let's assume that both of these are gonna go up in value let's assume both so let's say let's assume that your house goes up 1% a year that's what it's done for 30 years by the way it goes up 1% do you know that the average apartment goes up double every 10 years every 10 years that value of this apartment could double which one you want to play in man you can't play in both right now because your equity is trapped this show today is for everyone out there that has 300 grand of equity sitting in your home you're an accredited investor your qualified accredited investor you're astute qualified investor you're an astute intelligent investor with equity dead money you're not acting intelligent right now you got money sitting in a house when it should be sitting in something that produces income for you again I'm gonna go back to this question which one pays you only one of these pays you a single family home does not pay you 20 units will let's take the first caller my name is Grant Cardone you're watching real estate investing made simple captain ron's with me I would sell the property I would not take a line of credit out to well first of all I'm taking a line of credit out here I would not take this line of credit out okay I would I would sell the house get the equity or if you know you can sell the house easily I might take the line of credit out against the 300 and start buying over here no one I'm gonna sell this so I don't mind doing that as long as you guys are committed to selling there some of you don't need to sell your house to do this some of you got 300 grand sitting in a Keough retirement account 401 K you can actually self direct that money some of you got money sitting in a bank doing nothing so before I go sell my house to do this I'm gonna go get all my other cash sitting in Wall Street mutual fund SEPs 401ks let's talk to about a caller Dennis what's going on Dennis do you have equity in your house Dennis I do have equity in my house how much you guys I want to appreciate who you are come on man thank you thank you you're awesome you know what I'm a veteran and I love what you're doing for people in the car no on University yeah and the financial literacy that you're teaching this is awesome thank you my friends they have one tweak two or three hundred thousand dollars down yeah house versus apartment what people should do first is get educated learn from people like Grant Cardone and and be able to know what they're doing with their money before they start investing it yeah yeah the problem the problem with learning though is so much of the information out there is so traditional I mean I don't think I think traditional is probably a compliment actually to it because I think some of it's just set up to support the banks and the credit unions and the 401k people and the Wall Street people stay wooden we're gonna come back and talk to the vet real and well on our way back from break anyone involved in person-to-person business-to-business and you've worked with referrals your is asking yourself how do I increase my sales using this even more so how do you track who sent referrals through you what if you could track every referral log every Commission track 100% of your ROI that you spent on advertising that's what niobe does when you sign up niobe offers the opportunity for unlimited income potential with referrals give a referral and receive a referral and get paid help the world economy and get on track with the future this mobile app is available worldwide on both iTunes and Google Play get started right now at what is niobe calm that's what is niobe calm if you have heard grant cardone talk at wfg s latest convention some questions might been raised who exactly is wfg Wealth Financial Group is there to ensure your security your future and your life / - ax T is part of world finance group and as practitioners our Grant Cardone ethics and business and raising the standards of living for those in the middle class world Financial Group ends or - and you work together to help you get to where you want to be financially and in life come join our team today and learn more about what we can do for you at virtua t financial services com that's fortuity financial services com there's only one company you need to know in telecommunications and that's bullfrog bullfrog is so advanced and so in the future you don't even need a desk phone anymore to run a business run an entire business from there from chat to mongering to call forwarding and we will guarantee that you never experienced a drop call again you can save an extra $6,000 a year with bullfrog and the plans that they have for your company go to bullfrog dotnet for you hey welcome back to real estate investing made simple every Monday I do this show it's part of what we do at Cardone capital to get you familiar with other ways to invest your money if you're an accredited astute qualified investor if you're a qualified investor if you have more than 100 grand that's liquid if you have money sitting in a bank mutual funds Keogh steps for equity in your house you need to see that what we're doing at Cardone capital okay I've literally made people multimillionaires having invest in my knife in my apartments with me we buy very large apartment buildings much bigger than this okay the this this is a this is a down payment a deposit on most of our day the million - okay I'm showing you right now get your money out of one door and get it into many doors that will pay you forever let's talk to our vet back on the phone there Dennis hey what's going on buddy hey gran how you doing bro good man thanks hey hey so do you how much equity you have in your house right now Dennis sixty thousand sixty thousand okay so so in your house what do you think your house is worth eighty thousand okay so you you it's worth eighty thousand and you owe twenty correct yeah so he's got sixty grand sitting trapped there right now if he could earn how much do you earn from your house right now actually in the negative because I got to pay for taxes pay taxes I couldn't pay you know anything that is associated with it yeah so this is what I would tell Dennis to do okay if Dennis could get in a vehicle that paid him ten percent a year he turned six thousand dollars now this is his arguments gonna be this okay grant I sold my house I took my equity I put it in a deal that pays me six thousand for the next ten years that's six hundred sixty thousand dollars okay not a big number but what just happened it paid his equity back that means he earned a hundred percent on his money now he's his arguments gonna be I need a place to live good he's gonna go rent a place a place like yours what would it cost to rent thousand dollars a month so he's gonna pay $1,000 a month now for the next 120 months he would have paid $12,000 is that right no no how much would that cost just ten years right uh-huh yeah you so it cost you $1,000 $1,000 a month to rent okay but no out-of-pocket no equity he can move when he wants so he's gonna pay $12,000 a year but he doesn't have and I wouldn't by the way I wouldn't rent a house because then you got to mow the lawn that's the other thing I would tell you like like I'll bet you I could put him in an apartment that would offer him more amenities pull workout facility right yep did you don't have at your house correct somebody else will mow the grass too many else is responsible for the taxes you don't have the liability more he's gonna pay 12 grand a year to earn 6,000 and you're gonna say well dude that doesn't make any sense oh yes it does okay because he doesn't have the taxes he doesn't have the insurance and he's got this money over here growing at 10% we don't buy deals for 10% I'll tell you right now I wouldn't buy this deal unless I expected in fact I wanted to show you this debt that we we expect every 60 grand to come out in a hundred and eighty thousand without the responsibility of the liability I'm looking for a 3x return and Dinesen I want to I want to answer any question you might have I'm looking for a 3x return this is what he would earn passive income before debt pay down right cuz this is free cash just 10% spree cash before he starts paying the debt down on that apartment deal and before in the appreciation go ahead what's your question you know actually I I just want to say I appreciate the information that you're providing with everybody and you know what poor people my question is what about people that are already in a house what can you do to use that equity to maybe get into something that is gonna produce some kind of you know income flow instead of you know you know I'm throwing the money away basically you know yeah the house is worth eighty thousand but I've probably paid you know a couple hundred for it so what kind of person do that nobody you know how I do you say you made a couple hundred for what what do you say because of interest yeah see when you guys really start looking at it when you when you no longer like if you want to make real money you will not have your heart involved my heart is not involved when I make money like people like find what you love do what you love and you're gonna make money no you're not you're gonna be you're gonna be following your heart all over to Dan play oh let me go over here I'm a bad dog let me go over here I'm okay I'm gonna get with this girl let me go over here I'm gonna get with this guy did you follow your heart around all you gonna do your heart will not lead the money I don't know why people like regurgitate this to people follow your heart and then the money will fall no you're not you're gonna buy a frickin Labrador you gonna buy a little poodle okay you're running around picking up his poop poop okay people bought houses because they followed their heart oh I love this place don't you love it are we gonna be happier you're not gonna be happy there man a house can't make you happy if money don't make you happy I guarantee you a house ain't gonna make you happy Philip okay I know a lot of people that have houses in 2008 they were not happy people okay Dennis knows he's not happy his house don't make him happy you could go to an apartment pay another 500 bucks a month have a swimming pool immediate social club go get you a nice apartment dude for 1,200 bucks a month you know Lando Florida I'm buying a deal in Orlando right now average renters 1200 bucks a month they're making a $90,000 a year they got a beautiful swimming pool beautiful gym then I would go work out in but you will never go to 24 Hour Fitness again if you go to this gym okay it's got a it's got a bike station in it it's got all the freaking updated equipment it's got a place to drop off here your your your stuff thanks Dennis it's got a place to drop off your stuff and you only have to commit there for 10 months and when you're done living there if they don't treat you right move to another place oh I don't like to move dude how would you know if you don't like to move or not you ain't moved in frickin 12 years maybe moving would be cool I get tired of talking these people I move to another place okay next caller I'm telling you folks listen to what I'm telling you okay by the way if you guys sell homes keep selling them there's plenty of idiots out there okay there's plenty of people out there that want to buy a house I'm not talking like they need their little welcome mat welcome home you like your little welcome mat right there in front of your house good man you guys itself for Remax or Keller Williams I'm not telling the world not to buy a house I'm telling you not to buy one sell a bunch of them okay the money's cheap you Mia sell a house right now yeah do do it you need a place to be in love you and your house your mama deserve you and your wife deserve you want to bring people over for Thanksgiving and Christmas man don't you want your own house cheer you do come in for 30 years okay but I'm not telling you that I'm telling you how to invest your money we'll talk about your money right now you want to invest your money if one door is good then 20 doors would be bet what if one door is good then 20 doors would be 20x better if real estate is a good deal then don't have one welcome mat have 20 of them and don't pay for any of them okay I don't pay for these they pay for them you pay for this if you got the choice down both of them don't own both of them Oh more these say no to this remember Nancy Reagan say no to drugs say no to owning a house cuz you ain't gonna own one let's talk to him Myles what's going on man speaking of drugs VOC comes in all them people in Boca drugs every one of them I've ever met it's not me man except me good good man the humans came into my image so cocaine to everybody prescription drugs you can kick cocaine you cannot kick that prescription drug stuff man it's bad okay go ahead man I already did it brother don't do it man good for you man good for you brother yeah so yeah my question is and I just got married a few months ago I've only been following you for about a month or so I've already read like a book congratulations thanks man so her parents helped us out and they helped us out the down payment on the house it's actually still in their name but they're going to transfer it over to us so I think there's about like it pull out 50,000 and equity in the house yeah and I just started it's actually a townhouse so they had like amenities everything like that as well nice it's I just started my own business you know I've been in business for about three months now making about 10 grand a month oh good a man's license yeah yeah man so um so my question is I got like 20 grand in credit card debt to something yep trying to get my way out you know get out of debt and everything like that yeah so just going to ask you if you think I should if I should sell the house to get my goal is to to have a hundred grand in the bank by the end of 2018 how do you and so I was thinking should I sell my townhouse and take that equity and you know get a head start and knock down the credit card debt just going to get your opinion yeah I wouldn't worry about the credit card debt I'm not chasing the past it doesn't exist for me the only thing that exists is now and and now people that do something in the now but the ones that create a future okay everybody's gonna ya can hear you listen Kenny Kenny here buzz he's still talking to me now's it then listen okay look man I would take that equity out of the house I don't know why your parents why parents think they got oh I'm a bum my kids a house man that dude don't give me I don't want right I gave my brother Peter art one year for Christmas I'm like hey I got a piece tardies item and I don't want that man I don't know how to tell you that give people stuff they want okay now your parents probably or their parents probably thought I will give them a great gift that'll be a house they need a place to live but they're just thinking in old ways this is an old idea this is a new idea a new idea is I'm going to take the 50 grand and buy something that produces income you know the problem is you guys got to get your wives there's a problem for most of you tonight most of you got like you know like I got 99 problems my wife ain't one of them when it comes to money we do what I say we're gonna do with the money she just says yes sir okay when it comes to the kids the house whatever you know our lifestyle I'm like yes ma'am okay but but when it comes to the money she trust me to do the money so if I told my wife right now we're selling our house by the way I just told her last week I'm selling the condo put it on the market I didn't call her and check with her so sell it just freakin get rid of it okay so I don't check with her because I don't need her saying oh god I really love this place good let's go love some other place if you have the capacity to love where you are right now you have the ability to love the next place you go to you're not in love with a spot or a location you're not a GPS okay you're locate me when they wind up with it my phone asked me to locate me or Google does right dude you can't locate me I could be anywhere tomorrow I am where my mind goes that's a little heavy for most people so do what I would do is I would take that 50 grand in that in that that that glamorous apartment that you have by the way a townhouse is a glamorized apartment call the house without the swimming pool probably and without the gym probably brick you got a little brick there you got a little what you got a little though is it stick or is it block what tomato sticker block okay and I would get this 50 grand invested in an apartment deal that produces five thousand dollars a year at minimum five grand a year I'm gonna tell you right now I bought a deal I bought a deal not much more than this this thing turned into about three million dollars okay one of my first apartment deals I took three hundred and fifty thousand dollars not a bunch more money than what he had right there turn that first thing into four million bucks okay that townhouse will never be worth four million dollars in the next 40 years make it make it 80 years make it a hundred years due to a hundred years from now this thing will not be worth a whole bunch more than what it is right now that will guarantee you okay go see what was that movie that terrible movie we saw yesterday what's the move max backer Blade Runner buggin awful okay you want to waste money keep your money in that or go see Blade Runner let me talk to the next caller okay and tell you tell your father-in-law hey next time you want to give me 50 grand dude put it in my hand by the way we give the money away every day I'm better than a father-in-law or an uncle I give money to you and I say use it for whatever you want dude you want to use it in my store you want to buy a ticket you want to go freakin use it in the strip joint with the druggers whatever here's the money blow your brains out with it if you want to I'm giving you the money I don't put conditions on I'm like here's the money I'm gonna buy your house aren't I nice so they can freaking locate you in the daughter probably cuz the daddy don't even trust you man he's like I don't trust this dude man let's get in my house so we can keep the eyeball on him so that when he's poking on my daughter hey you guys did have equity in your home you guys that have equity sitting at 401ks and set programs you guys that you can't find deals you can't find time to find the deals come invest with me a card on capital I'll show ya I make some stupid money okay minimum is a hundred grand okay the average is about 400 grand deals that we look at or deals that we we believe that can 3x our money okay so like I'm buying a deal right now in Orlando this deal is gonna be 50 million bucks I'm awarded the deal we're gonna put 15 million dollars down I'm gonna get a loan for 35 million dollars from the life insurance company from a life insurance company you could never get that loan the interest rates gonna be three point seven seven percent I'm gonna get interest only for three years maybe five years depends on how good I negotiate the deal there's a brand new deal and I guarantee the first year this thing's gonna pay me ten percent a year it's gonna pay me ten percent a year every year for the next ten years okay in ten years minimum I will be paid 100% of my down payment right back all investors will get their fifteen million dollar back in just in cash flow and by the way what have I done in ten years in 2027 the drive-by traffic on this property this property will now be ten years old the drive-by traffic on this property today is about seventy thousand cars by lunch every day all day long do just weigh in that way okay I was there four o'clock in the afternoon it was like this it wasn't even traffic yet it was like right bumper-to-bumper dude okay you have to look at this place the whole time you got to look at it the whole time you're stuck at this light this is Orlando Florida ritz-carlton down the street okay in 2027 will this be worth more or less will there be more fewer people live in Orlando or more people living in Orlando what do you think when I taught my Detroit man I'm not talking about Cleveland we're not talking about Baltimore where's cold we're talking about Orlando Florida Mickey Mouse Mickey Mouse man Mickey Mouse has lasted for a hundred years he ain't going away he has stood the test of time and in 2027 I guarantee you I bet you money this place will be worth sixty five million dollars minimum okay that would only mean that I earned three percent of your appreciation in the property would it cost more money to build this in 2027 labor cement block pulls right okay check this out now watch if I make if I sell it for 65 million that's only that's only a 30% gain over three years that's three percent a year in creasing the property that's all that is typically these double every 10 years I said that to you earlier this could be worth 100 million dollars I could show you 20 deals I've done the double 20 deals not two not some freak an aberration I can show you 20 deals that I bought the doubled about a deal in Daytona what four years ago thirty two million dollars I could sell it for fifty five million dollars this weekend I could fire sale the deal I made 20 million bucks on okay only put eight million dollars down in it so this is not aberrations this didn't we're stuff this is what we do at cartel capital if I can only make three percent appreciation per year this thing sells for sixty five million dollars I've already made my money back the investors get all their money back then we split 15 million bucks right so you got 15 plus 15 plus your money back that's a 2x return to X and you didn't do any work what do we do a card on capital that's what we did you're like how do you do it find the right deal get your money to work okay I'm gonna close out our fund here before the end of the year so if you've been thinking about investing with us if you have cash if you're qualified which means what you got a good attitude you're not involved in lawsuits you want passive income you love apartment you understand that you don't have the time to do it but you got the cash come invest with me card on capital calm card own capital calm you'll see all the other deals that I bought you'll see where we invest what we're looking at you can talk to Ryan Seco Ryan knows everything about everything next caller Gavin tell me about your real estate problem you see how we doing good man how you doing tell me about your real estate problem yeah hey so cuz guys got my first multi-family before I heard of you okay so I which which was my first mistake yeah bought a two family unit I paid borderline what was worth maybe a little bit too much but what my problem is I just had to throw a roof on it so I just dropped 17 grand in cash and doing that and now I'm Way over equity of what the house worth that's not the problem though that's not the problem see he knows that real problem is this thing doesn't produce enough income for him to hang on to it exactly so I'm at the point now where I'm saying I want to get out of it but now in order the way I look at it is in order for me to get out of it I'm I'm over my head I'm losing money yeah yeah my wrong by saying that no you're not wrong dude all right hey let me tell you something okay I totally get where you're coming from okay number one I don't feel sorry for you but I can I have a lot of empathy for you because I did the same thing so what I will don't want you to do is what most people do right now is they make a mistake in real estate and then they blame the real estate the real estate is not the problem the two units is the problem I've said this I'm probably the only person in the real estate space saying this two four six eight who do we appreciate no one the bank's man the banks gets to deal so would you pay for that deal bro ah that was loud now I do 1:29 five is what I have up data for one thirty plus closing costs and you're probably in like another five grand plus the roof right yeah that was just about it yeah so plus the roof now what do you think you could sell it for let's say you're in a 150 right now right oh wow I don't think I didn't get 150 for it I'm gonna get 150 you don't you just want to get out of the deal now okay so how much you think you could just blow it out four and get away from it well I could probably do I'd probably get away with a buck and a quarter good to the Hashi oh how much you owe on it um let's see I'm only in about about two years and on it ah so I'm about one I'm down to 122 good blow down and walk away man yeah blow it out and walk away all you need right now is that is the economy to roll over even a little bit and you won't get 117 for it blow it out walk away and no big deal do we start over again okay the next time you're gonna do a deal you're gonna go raise money to buy apartments okay get rid of the raised money or you're gonna you're gonna fix your capital again take your little ass-whipping and take it as fast as you can I like that I'm good with that yeah just take it broke you good somebody's gonna give you a black guy I was beat up all my high school year first year I've fought back second third year I'm like gee I'm gonna take my ass with him quick i'ma lose anyway I'm just not a good fighter right right like like one time man I just kept slugging it out with this dude I still lost I'm like damn I should have just should've just taken it quick so same thing with a deal my first department my first real estate in Denver about a $78,000 good about a 78 thousand dollar real piece of real estate I put $5,000 down and seventy three thousand dollars is what I financed that was my loan everything was good for fight like five months and then they moved out okay 60 days later I sold the house I'm like I'm done I don't want to do this I was terrified I I was lucky enough to break even and the only reason I broke even by the way is cuz I didn't count the amount of time I spent doing all this stuff right so so I had to use that as a learning lesson next caller what I'm telling you spokes one door or 20 doors where should your equity go okay if you're a smart investor if you're considered a what what's it called a qualified if you're a qualified investor with equity of at least a hundred grand I want to show you how to turn that hundred into 300 what you need is this you need you need time and you need the right deals if you find the right deals and you have the time I guarantee you I can turn this short of nuclear devastation or the world turns upside down completely I could turn this hundred into 300 grand and that's how people get rich they get rich not by saving money not by storing equity in their house they get rich by multiplying okay this is the great thing they don't teach in school they don't spend enough time on multiplication and spend too much time on nobody uses algebra and trigonometry and angles I need to angle it an angle no I don't I just need know where to put it in next call Jennifer but we got all these Florida calls man all the money's coming to Florida it's just when my grandpa Jennifer how you doing sweetie help oh I'm doing wonderful Jana bridge Juliet how are you excuse me my throat was just so I'm number one I want to say I'm a long time watcher i watch your show almost I almost feel like a stalker yes anyway Jimmy yeah I I guess I can say long time stalkers first time caller but I have my grant my mother here she is 74 years old we both have invested in multi door properties like you : you callin that right yeah yeah yeah yeah come on oh well anyway we do nursing yeah oh my hair hold on she wants to say hi she loves you her name's Abigail hold on here mom hello grant how are you guys Abigail Franzen how you doing wonderful wonderful honey you you look just as good on camera as you do in my dreams I can laughs can I sit yes applause - and I'm telling you the truth I I used to dream about money and then I saw your show and I began to dream about you and the good thing is you're a millionaire so I'm dreaming about money the same time I'm dreaming about you I could only imagine one night with you let me tell you one night one night with me I'll ruin it for you for every man for every lifetime going forward well honey I'll tell you what should sure about money have you ever seen the Indecent Proposal $1,000,000 I will give you for one night and I'm being serious honey one night passionate if you like but anyway let's get to business at hand sweetheart I don't want to I don't want to frighten you we'll discuss that on a more private No let's do it let's do it I'm just saying I'm asking myself dude I'm on a call Elena right now Elena I get a chance to make a million dollars right now you don't have to do anything but lay there tell Elena don't worry Elena he's safe with me okay what's your question so much and grant my mother she doesn't fight okay so here's the deal Graham okay everyone I have equity in my home a lot of equity I have different properties um well in one of them there's one hundred and eleven thousand dollars of equity in another one there's only 32,000 which is just a day's pay for me another one there's four different ones that we have equity in my mother okay my mother who is actually a stepmother so there's no actual lineage she has another son okay she's like a mother her other son is just a doper he's out in the wilderness we don't know where when my mother this was my question when my mother decides to keel over like she does kick the bucket yeah and she does not make a will my idea went wait actually let me ask it friend if I were to make no will whatsoever do all of my properties do they get left to her being that she's been with me and she's actually scraped my toenails and done everything under the Sun of taking care of me or will it go to my illegitimate little mud duck would that be son first of all let me tell you the biggest problem it's not who it goes through it's gonna go to a dispute it's gonna end up in a big dispute and nobody's gonna get okay so he has so then he has to disappear or not be on the wheel or she has to make a will right I need to tell my you just need a piece of paper saying hey if I die I want all this money to go to wherever you want it to go what to me to me to me yes definitely to me from you you don't want to go oh my mom mom you don't want to go into an open he's just gonna kill him no well maybe if I give him a little bit of edge then you can do what he wants and be on his way but the thing is I also have assets honey I have websites and different developments like the prank called mafia but I've invested in a lot of money in and and things of that nature those assets where do they go honey again you just need to lay it out in your will honey where you want it to go what you say you should the prank call mafia should be goat should go to me you should give me something give me your electric toys hey kick the bucket okay if you don't go to heaven if you don't go to heaven you find yourself somewhere come find me okay confinement I'll make you a promise right now Grant Cardone I assure you when I keel over and when I die I will be in your dreams I will find your room and I will rock in a rocking chair back and forth as I twiddle my thumbs and watch you dressed and undressed and nothing sexual just haunting at all give the Frank calm offering it to you we would love you to be a part of it honey good I love it now let me just explain something what I would do on those single-family homes that you own is I would take that equity sell those houses take that equity and start buying 12 16 units in AB of okay let's take the next color this is gonna be a fascinating cart owned real estate investing made simple today okay all right it just got hot in here okay what am I telling you today take your equity it's in your home this red okay it's dead money you have dead money in your home I know this is hard for you guys to convince I'm telling you you want 300 grand earning money and a liability or paying you okay it's either earning you money or it's a liability period to see they're paying you or it's not if it's not paying your kids are a liability children are a liability unless they're earning your money right so look at your Hut your car is your car an asset or a liability if they get you to work it's an asset if your house is paying you there's no business being conducted at your house if it's not conducting like everything that we do in my life 90% of everything I do every decision is can it produce income can I get attention for my brand my company like you see me working all the time I might go see the New Orleans Saints play the Sunday I guarantee I will do some business while I'm there I'm not gonna go there and not do business where I go I conduct business I have this much time on this planet to create an effect okay I'm gonna use money I'm gonna use money to multiply itself now I'm all about the money yeah I'm all about the money I'm given a million dollars away in the next 32 days thirty four days I'm gonna give a million dollars away I'm happy to be able to give a million dollars away I just paid the Mandalay Bay one four million dollars to host our event yeah I'm about the money okay all right so I want to buy a deal this month this deals 15 million dollars it takes 15 million dollars to buy the deal I got two deals I'm buying a deal for 15 million dollars and I'm buying another deal I hope this doesn't stick does it permanent marker man don't can't keep these up here guys yeah that's not good okay I'm behind a deal I'm gonna put 15 million dr. 15 million dollars down and I'm gonna buy another deal I'm gonna put down 13 about 30 million dollars it went under the desk that's the problem oh you found it okay so am i all about the money yeah because these bills take money that's 45 million dollars I'm going to use for two deals to buy 750 units this money right here I'm gonna take and and I guarantee you I'm gonna grow this money until this money's worth 90 million dollars and I'm going to take that 90 million dollars and I'm gonna distribute it to all my investors I'm gonna make a bunch of people rich is what I'm gonna do am i all about the money yeah I am all about the money because somebody needs to be because too many of you have fallen puppy dogs around and welcome mats and old ideas okay messed up my board man it's not oh it is off huh dang man okay so Ryan what would you learn today Ron this is why I say don't take advice from a millionaire you know don't don't take advice from somebody buying their first 12 units take advice from somebody that's multiple of units and know it know the 12 units is too small to produce enough income it's just a math class folks okay so what Ryan's saying is this if you could buy 12 units and own a hundred percent of it or do you want to buy 240 units and own what would that be six percent of it what would you rather do you would rather do this one you can still say you're the owner okay just make sure it's the right deal this is not a restaurant Jannah in that Los Angeles if somebody I'll tell you Los Angeles hey coming to my restaurant tonight your restaurant yeah there's 30 owners they don't tell you there's 30 owners it's my restaurant the gallons this much of it it's a freaking restaurant these are apartments restaurants come in go apartment buildings stay right they stay there they stay there and what happens is people don't own it for a while they'll sell it make some money and sell it sell it to another guy next guy comes in he manages it he sells it for a profit third guy you if you ever see the hotel chains hotels Hilton will sell to a high high it will sell to Weston Weston will sell to Starwood and they'll do it again why they're getting write-offs while they do it and new groups come in and they all profit these aren't restaurant man okay unless a restaurant train and by the way you don't want to own a Chipotle chain right now because he's getting hammered and if you did own the Chipotle you would own it because it's a stock on the exchange and they're they're selling paper not restaurant do you understand what I'm saying I'm back to this would you rather own 12 units 100% of them they read for $12,000 a month that's the gross on this deal and a thousand bucks a unit or would you want to own a deal that produces 400 and put two hundred forty thousand dollars a month in income because they rent for a thousand dollars you which one of these has the bigger swimming pool this one has a pool this one doesn't blob units doesn't have a pool which one has the biggest gym this one doesn't have a gym okay the parking lots the gym right which one of these produces an app not revenue so that when there's vacancy it will happen when there's problems they will happen okay when there's tax increases or utility increases by the way utilities going up electric gas water that is a tax increase when utilities go up which one of these can support it oh by the way which one has the better tenant the one that's got 240 unit oh by the way you notice they're not building any 12 unit deal do you notice in your town there aren't any 12 unit complex is going up why why don't they build 12 12 unit complexes and they build a lot of these cuz they ain't no money in this one they hadn't built a 12 unit complex in America in at least 50 years they don't go twos they don't feel forced they don't build sixes they don't build eight and by the way when they did they call them townhome and when they do build town homes they don't rent them they sell them cuz they don't work the only way a single family works is if they can sell it to an idiot dumb enough did they would get their money trapped into it that's why you see homeownership going down because in the last particularly in 2008 what happened was the truth got ripped off this deal David Copperfield we finally saw his trick right it was a freaking it was there was a what with the call it was not a hat trick head trick 3 scored three paths this is because what happened was hundreds of millions of people walked away from their home this ain't a dream there's a nightmare banks went down banks banks collapsed because too many people bought home why why did the Holmes trap so many people one reason oh they went down in value nothing didn't because they don't produce income they lost the home not because it went down in value they lost the home for one reason it does not produce income ok my name is Grant Cardone real estate investing made simple look I'm the guy I'm the guy yeah you can you know I'm a sales guy basically I started out as a sales guy I've written some books I'm a philanthropist I've given about twenty million dollars to way to charities I've raised a hundred and twelve million dollars and I tell you the most charitable thing I do every week is give people information I want to help you I'm here to tell you the truth I know a lot of people don't like the way I say it they don't like the way I tell the truth they don't like the way I challenge a lot of the traditional things so that's good man maybe you don't like what I'm saying okay but look some of the best lessons in life don't come the way you want them if you've ever prayed or a spur he'll be like I need some help I need some got it maybe this is it okay some of the best gifts I've been given in my life did not come wrapped up the way I thought they would some of the things that wanted the most of life were not good for me sometimes they come late they're ugly okay I'm married to a woman she would never have thought I was the guy she had me she has she was thinking the whole time I was somebody else other than who I was been the best deal of her life man okay so some of this information you might not like the way I'm delivering it you and your husband you and your wife you and your mom or dad y'all can argue about it over the kitchen table you show me where I'm wrong with it I'm happy to be wrong you show me one person that's ever got rich I don't know I make I made millions of dollars on them but I hadn't made near that kind of the kind of money that I've made on Anna Park that's all I'm telling you all right card on capital calm card on capital calm card on capital calm card on capital calm if you don't have the time to find the deal but you're qualified you have the money you have the equity you got a program like a 401k or SAPR Accio you got the money stashed away over there in Wall Street you're Noren you got money and mutual funds or you got money sitting in a SP or any of the ETFs you want to get that money to work put it in a real estate deal to produce this income trust find a partner you can trust find somebody that's working their ass off every day showing up every day looking at deals every day touching the deals every day that's invested in doing something big not just you know taking a fee that's interested in really expanding that's what we're doing a card on capital okay I'm partnering with qualified people to build my portfolio out I'm gonna take that portfolio just so everybody knows I'm gonna take it sell it to Wall Street in the future that's the goal here you're gonna help me grow I'm gonna help your money I'm gonna put your money in deals not 12 units this is a small deal for me right here this is a small deal for me right here okay 500 units 300 units good locations I can get the deals I get the debt I manage the property I do everything you don't want to do and don't have time to do I just think you have checked every month to win win for everybody card on capital comp love to have you involved come on man let's go make some money follow the money and disregard your heart I'm telling your heart is misleading you it's telling you to spend time with Santa Claus the Easter Bunny Thanksgiving eat too much spend too much and do dumb stuff man Cyber Monday how much money was spent yesterday what'd I tell you last night how can you forget man 50 billion dollars was spent in 12 hours at Amazon freaking stupid what do you get for it man nothing nothing okay it's a toys that you're gonna buy your kids it's worth less than this eraser okay my kids buy stuff it's not even worth this but kids like that's not worth anything yeah it is buddy I help people with this thing okay this right here that's worth something okay that board right there that's worth something because I help people when you help people that's worth something when you buy junk I help when you buy stuff do you have to pay for over and over I don't have to pay for this over and over I paid for this one time and then I get to use it to create an effect right you want to buy things that create an effect that could be a suit could be a pair of shoes it could be a brief case it could be a presentation it could be an ad it could be a Facebook ad a Google ad there could be giving money to people it could be charity man but look you're putting money in dead-ass that asked us to go down and value that you're stuck in okay my name is grant cardone anything I can do to help you please post your comments if you love the show saying you loved it if you hate the show say you hate about goddammit come out come out come out subscribe to the channel to all right god bless be great and I can't even explain it I think we're all we're all one decision away from changing our life the best choice i literally ever made was locking arms with grant cardone letting him be the one who spoke into my life and taught me how to create results if you're ready to go to that next level if you're ready for breakthrough this experience will transform you there's real business being done here it's real people selling real things to try to build a real business I learned something about myself too today because it's wrong to find a positive motivated people makes you want to deliver harder to say this was a business conference is so under estimating it was a lifestyle 10x my business headaches my life several times over you gotta be here in first and okay do whatever it takes this to me is a transformative experience yes I sold three hundred thousand dollars and I did it by following a couple things I took away from the growth Tron these guys know how to put on an event what really stood out for me is the hustle I like aim up here to speak to inspire them but the energy they had and how they're gonna go out and change the world inspired me a lot of good strategy by the way the Q&A with Grant was fantastic enjoyed that sales got a sales guy you know it's a good thing you bet you better do something other than just what everybody else is doing to take your last pennies your last nickels your last dimes your last quarters you borrow money if you have to you do whatever you got to right here to know to know everything you can about everything life everything to do with life learn about it you [Music]

Channel: Grant Cardone

Views: 148,387

Keywords: grantcardone, real estate, apartments, best real estate agent california, freddie mac, why buy house, best home to buy, buy house 2018, how to invest in real estate, zillow, cash flow, dave ramsey, income, yt:cc=on, ben leybovich, home loan, bigger pockets, how to become rich in real estate, housing market, investing in real estate, money, invest right, real estate investing, new york real estate, fanny mae, realestate, buy a house?, house appreciation, investment, grant cardone

Id: q_EP3BZha8I

Length: 64min 8sec (3848 seconds)

Published: Mon Nov 27 2017