Grant Cardone on 5 Steps to Becoming Millionaire, $2B in Property, NOT Buying Home (Full Interview)

all right here we go grant cardone welcome back to flat TV man I'm glad to be in your place this time yeah yeah you get to check out our New York office yeah it's awesome it's awesome yeah well you actually reached out to us this time I'm kind of flattered yeah man because look I love that interview we did last time and your audience is different than mine and a lot of a lot of the people that follow you are like they're either really turned on about it or turned off about it but I think a lot of people started thinking about okay you know how do you play the IRS how do you how do you play the money game and nobody knows nobody teaches assists so I say let me go back to see the big V man and and we we educate or piss off his audience some more well I think the thing that I appreciated most in our interview last time is that so many people try to sell people a dream and say like you don't need a good job to start investing in real estate you can start with zero money down and churn and you know become rich after a few years and you said look if you want to make real money you guys got to do 32 units commercial you know uh multi unit and you don't need a whole bunch of cash up front in order to do it and if you don't want to if you can't do that then don't even bother yeah it's just look at you're gonna end up having another job that doesn't pay you anything like if you hate the minimum-wage job you have now you're gonna hate the next one more you know I'm saying like people are trying to get ahead by having two and three jobs that don't pay anything just cuz you supposedly own something which means you got a mortgage on it that you don't own and even if you did pay it off you still got to make the property taxes just because it makes a little bit of money doesn't mean it makes sense yeah and I could tell you I have a close friend who's a real estate developer in DC and I ran some of the numbers by him and I said well Grant said you know cuz I'm not a real estate guy you know I said well grand said you should start with at least 32 units if you want to get into a real real estate business and he said well actually I feel it's a hundred oh bucket you know 32 was cool too I could totally have that argument like like you once you do one hundred you'll never go back to 32 it's like you know you know what's that saying so like once you once you do scale it be like Amazon saying or Blackstone saying they're gonna buy my business they're like dude we would never do that again you know that we're gonna buy we're getting about 50 billion at a time we're not gonna bother with a little company and this was the point of that like now a lot of people just check out as you know Vlad on this they just get pissed off and say well I can't do that because I don't have the money okay I didn't have the money either I started with one deal bought a deal put three grand down I bought a deal with a budget it was like I was going to the to Whole Foods to buy groceries how much can we afford I got two hundred on me something about two hundred dollars worth of [ __ ] you you can't do that with an investment and I did that and then that three grand was making me two hundred bucks a month I thought I was going to be great I thought everything was gonna be beautiful there's no reason for me to tell this story except to share with people one deal does not work because the moment they moved out I was negative I got scared I dumped the property i shouldn'ta dumped it but I had to because I didn't have the cash flow and didn't have the courage and didn't have the knowledge that the market would turn around and then I would get it rented I got terrified that that deal today is probably worth 450 grand and it and I put $3,000 down his horse it's gone up five times but if you can't keep it that's the problem with the stock market for me you know I couldn't keep Apple stock through the ups and downs I never get to 258 right so you haven't bought any stock since our last interview huh not a one dude oh well I failed I mean I can't do it I can't do it because like I Drive around here this this you know it's just too easy it's too easy to about $250 where the stock could still not know what you got I got you I got you well after doing our last interview this was the number one kind of complaint comment that I kept seeing over and over again and that's this when you said that buying your home is a dumb idea yeah people think the reason you're saying that it's because you own a bunch of rental property and you're trying to trick people into not owning anything so they can come rent with you oh yeah that's what I'm doing why not like look it you know the only people that are trying to make sense of a house or people that that are either trying to sell you a house I'm not trying to sell anybody anything like I'm trying to help people create financial freedom for themselves there's not one report in the history of the world seven billion people of anyone creating financial freedom because they bought a house Jamie Dimon right here he's on what he's on CNBC this morning talking about how great the economy is and the stock markets going up and the economy is gonna be great over the next hundred years he's not thinking about people buying a house when he says that stuff he's thinking about his rich friends for flying Gulf streams and Global's and and you know these are the richest people on the planet these people don't even talk about the house they bought Don Donald Trump down the street he buys a house he don't buy one house he buys the whole building and lives in it now the everyday god that's like well I can't do that man I can I can buy a little bit of the American Dream by buying my house and you know one day it'll be paid off go fly over san paulo sao paulo brazil you're going to see so many vertical erected buildings I thought they were all office buildings it's not office buildings it's all Residential's millions of people living in little boxes in the sky under the belief that they're gonna own that that it's gonna someday one day be worth a bunch of money it's not going to be worth a bunch of money it's trapping people people are making their biggest investment in their home when they should be making that same investment in themselves or their business not other real estate by the way shouldn't be real estate should be in themselves or an idea or a business that produces cash flow or real estate that produces cashflow well Airbnb is a kind of the newest thing right now when it comes to the real estate market so a lot of people are feeling like okay I'm gonna buy a house and I'm gonna air B&B it out from your point of view is that a real business or are you just spinning the wheels I think it's going to be I think it's a economic opportunity right now that will last so I don't think it lasts I don't think I think all travel travel and stay demands a good economy so if I go back to 2010 I know some guys that are making a bunch of money in the educational Airbnb business they're educating people how to do what you just talked about I don't know a lot of people making a lot of money doing it but I do know a lot of people educating people about how to make a lot of money doing it so in the economy when the economy fell apart in 2010 you know this first thing that went is hotels travel airlines spending money period like people quit traveling businesses quit sending their salespeople out on the road everything got everything went back home and that the same thing that air B&B this money's got to become it's these night stays have to be coming from somewhere so when I come to New York I either stay at the Peninsula the Four Seasons Marriott one of the hotels in the area right the plaza or oh wow I'm gonna go air B&B now I'm gonna go stay in somebody's home but if I don't come to New York for business anymore because the economy gets crushed guess what everybody gets hurt the peninsula the Four Seasons the the plaza they got money though they get they can stay but the air B&B God that depended upon Airbnb travel all of a sudden that guy gets whacked and he can't get his 80 bucks today that his models built on half the year blah blah blah he did the math and he's only got one unit again you're still stuck with a you're stuck with a business that does not have dependable cash flow and a business is only as valuable as the dependent the the cashflow is dependable yeah it's a great point it's a great point you touched on this with what you just said but a lot of people feel the recession is coming in 2000 2020 do you feel that's true or do you think that this is just people overreacting like they do oh I wouldn't doubt if we're not in it right now flat like you know I watch these guys on Wall Street talk about how great the economy is for who man who's it great for I got 175 employees that work for me down in Miami 80 or 90 of them without even doing a survey I know 80 or 90 are having trouble and I take care of people I I paid people fairly but I can only pay people so much the cost of living in mostly cities is so high this city like whacked ridiculous the cost of living after taxes after renting a place after the cost of food and transportation and insurance and like it's so high and in companies not paying more money like we have the lowest unemployment that we've had it 50 years maybe since I've been alive wages should be just soaring straight up and they're not so so I so so why not like the rich are getting richer and everybody else's has had zero experience to the upside right we actually posted about an article which is kind of mind-blowing I'll hold on a second let me just pull this up this was actually on Bloomberg and they said the richest 1% of Americans are about to surpass the total wealth or the middle class yes yeah yeah it's crazy how crazy is that when you say it I was crazy it's insane you're talking about massive massive shifts transfers of wealth now the question is in always asses who's got my money this is what your viewers should be looking asking themselves right now who's got my money and you should be pissed off about it you should be like who's got my money not in a form of protests but but but from a hunt standpoint you know I was 25 years old and I was broke I had no money but I got pissed off about it I'm like who's got my money man who's got who's got what I want who's got my dream who's got my business and that's what people need to ask themselves today the wealthy are getting wealthier because the wealthy played by a different set of rules than everybody else the Americans the middle class they're buying homes this goes back to the home point they're buying homes they're buying cars they buy country club memberships if they can afford them they send their kids to good schools they borrow money to go to college they save their cash and they invest in retirement accounts those are basically the seven themes of the middle class and it ain't working for the wealthy do none of those things okay they they don't borrow money to go to college they send their kids to the best college and said hey don't [ __ ] worry about learning anything but meet the Obamas okay make sure you meet meet the people with the right names number two they don't worry about buying houses they buy businesses they don't save cash they know it's trash and and they invest in companies and they'll do whatever it takes to get rich like that is the priority is to create wealth for themselves and their families and they don't invest in retirement accounts well you talked about a lot of deals last time in our interview and you know you mentioned your first deal of buying a single-family house and dealing with one renter who moved out it you know you ended up bailing out of it apart from that when you look at your bigger deals what was the worst deal you ever had worst deal I ever had that I did or that I didn't do that you did okay worst deal that I did I did probably a deal I bought I bought a deal three years ago called her on point 32 million it was it was it was in exchange so meaning meaning I had a bunch of profit made on another deal I'd sold in South Carolina I had about twenty three million dollars of profits to shelter so I moved part of that into an exchange it's very kind of 1031 fairly complicated it's simple but it becomes complicated when the when the tick tock when the clock starts going okay you're down to three days and you got to identify then two days then one day and then you're like no I got to pull the trigger so I bought a deal knowing that there wasn't gonna be a lot of upside but that I would protect my tax exchange and I kept that deal for thirty four months this is a bad deal kept it for thirty for just under thirty four months we had I think in that deal maybe four million dollar a four million dollar profit on that deal short of that maybe just short of four million okay so when you sold it you made four million off the deal uh let me see is that right it might be might yeah it's shy four million dollars that I made on that deal it cash flowed like eight percent a year so it wasn't it wasn't typical what I would expect from the deal is like a twenty five percent return over three years about eight percent a year I didn't lose any money I didn't lose my exchange I did have a profit but did it's not a it wasn't a scorching score and I didn't love the property okay so out of all the property you ever bought you never had a sell to sell at a loss I've never sold an apartment dealer the loss really why is that because they all cashflow also as long as about look if I have if I have even through even through the recession okay through the through the worst recession as long as I have cash flow okay when the market tilts and there's no buyers they're like okay I'm not boot moving I know there's a good deal out in the marketplace but I'm not moving right now because I'm uncertain and that'll come that's probably you know in the next year or two the activity will drop because of certainty will drop so I won't be able to trade my property because there'll be fewer buyers in the marketplace fewer buyers means the price goes down the offers go down I don't want to sell it I don't want to lose money so as long as I'm cash flowing paying my debt and my expenses as long as I'm cash flowing I just wait that thing out I wait the cycle out in this case I had something else I wanted to buy there were some other reasons I wanted to exchange out I'll look back probably later and say dude I should have waited and not sell that property right but you have situations where areas just get messed up like you look at Detroit yeah yeah totally who would have known that the car companies were all gonna move away who would have known about the Flint water crisis like disasters happened they are unexpected and you have communities you go like Baltimore and you have whole blocks or boarded-up yeah at one point that was a thriving community people bought those houses and market value yeah and expected to keep them for you know for years to come and now they had to walk away from them yeah you've never had a situation where you bought up an apartment complex and the area just started to go into decline no first they'll ever bought it first deal I was ever bought you're describing but it was one house they didn't have any income like nobody should be buying real estate in Detroit you should nobody should be buying real estate where there's snow if there's snow on the ground like go south those jobs are moving like people when you invest money in real estate you need to pay it like any business like the tech business like I don't know that I'd go invest a bunch of money at Ford Motor Company I think there's a better chance that Ford Motor Company goes away than stays so so I want to be around major hospitals okay very very hard to take a hospital down like thriving hospitals not not not just a hospital but go to go get housing around major thriving hospitals even if you go to Baltimore Detroit I'll bet you there's some of that some of that urban tight around hospitals where nurses have to be doctors have to be they won't get rid of that completely right but on the outskirts of Detroit man they just got destroyed because the jobs left yeah so when I go and look at Houston Texas I look at Tampa Orlando Miami even the Mobile Alabama's the Atlanta Georgia all this migration is happening and the more dumb [ __ ] that New York and New Jersey and California does the more it just pushes all of these people to migrate to where there's a less tax burden yeah I feel you I mean we have a house in LA I mean we rent but we're looking at Atlanta yeah taxes is one of the main reasons well ballplayers are doing it I guarantee you when LeBron moved to LA I guarantee he made a decision about taxes in his contract to say hey you got to offset this move right well it's this last time you were here I interviewed an Pena are you familiar with Dan yeah I know Dan okay he said he coached 25 billionaires over the the course of his life and he talked about some of the common traits what do you think is consistent in terms of personality type Oh easy first of all 98 percent of the high performers on the planet have one thing in common they're introverts Bill Gates is an introvert Warren Buffett's an introvert early on Elon Musk was an introvert about okay only 2% are loud mouth alpha males like me okay Nonie but the post the introverts and the alpha males focus obsession like OCD I mean laser beam focus they you know they would rather there's a black hip-hop guy I forget his name it says unless you want success like you want oxygen in your lungs the and I've been rich and I've been pouring there's no comparison I mean Elon Namie takes it back he said 15 18 years ago I would rather commit seppuku which is Harry Caray kill myself than be poor and not successful okay so it's really the laser being for correct from your point of view what is the trait of a billionaire look I've never coached any billionaire so I hung out with one for about 90 days they definitely they definitely think about money differently you know there's almost this throwaway kind of like I'm not worried about that anymore did Dan name any the the billionaires that he's coached he did not yeah it's a lot of billionaires dude I think there's only like I mean that means he's like he's touched like you know a third or something of all the billionaires on the planet yeah it's a lot of billionaires so so common traits uh successful can-do attitude I'm gonna figure this out I'm not gonna quit willing to go bankrupt not acting like middle-class people they never act like middle-class like they don't care where they lived they're like I live I live wherever I got to live dropouts courage [ __ ] never quit no matter what willing to change and adapt don't listen to the common everyday person go into debt dump their retirement accounts if they ever had one like burnt burned the midnight oil work 100 hour weeks yeah I mean you're basically listing out the the things you mentioned in the 10 X book and I want to get to that look I didn't I haven't coached billionaires but but I read I read about enough of them to say hey what is the common trait in these guys you know the Elon must talks about working 100 hours Warren Buffett study he reads four hours a day look if I go out out on the street corner right now and ask people hey do you like to read books most people be like I don't have time to read I don't like to read I don't want to read but here's the old man third richest guy in the world says hey I read four hours a day might be something people want to do if they haven't given up in their financial security right right I mean my whole financial life is really based on more above it yeah I try I try to read as much as possible well since our last interview I did a little bit of research and I found that you did an interview with Jordan Belfort yeah yeah the wolf of Wall Street and this in turned into the equivalent of like a rap beef with finance guys afterwards is that is that a fair assessment of what happened well he's not a finance guy well I mean a financial guy he's not a financial guy he's a [ __ ] criminal he's a convicted criminal that didn't pay back the people he ripped off and he's a [ __ ] rat on top of being a criminal is a rat turned on his own people to reduce his his time so he's a criminal ripped off a bunch of people admits that he ripped off a bunch of people never paid the people back and ratted and ratted out his boys so you can't give him dude he operates out of a little apartment with six interns did he 1099s Hawking a $495 product that don't sound like a banker to me yeah I actually looked up his net worth Z yeah - 30 - 100 million level - 100 million yeah you gotta take advice from a guy that's [ __ ] negative 100 million would you sir your guys she was I mean you went on a show yeah I did why it was set up with my staff in Miami it was in it was a bad probably a bad idea but you know I'm like let me just go in there if I could challenge him to a cage match well uh you said in the interview he was talking about the real world you said in your real world everyone was using drugs in my real world in his real world real world everyone's using drugs oh yeah I mean you saw that in the movie yeah I mean the whole movie is pretty much him being high the home look it wasn't a movie about that about his life story we wouldn't know who the dude is like what else is there is that is that your claim to fame he'snot yeah I don't want that to be my legacy okay I got a 185 employees I'm trying to go to a thousand he keeps asking me a question about how to sell a pen and I'm like dude I'm over that story like you're 50 years old you got to elevate the game at some point ask a new question how do you buy a pen company how do you replace a pen how do you make sure a pins never sold again on this planet elevate the game son otherwise you're gonna die an old salesman with a negative net worth of a minus 100 million you put out an interview recently on your own channel and it was one of your employees interviewing you yeah Jared that's my god Jarrod okay and part of the interview focused on your total net worth and you pulled out various accounts and you know started going through various things if you were to just take a step back and take a bird's eye view what would you say your telling that worth is I don't know man well I like it's crazy it's what's it based on tell me what what net worth what would you say a net worth is based on now it's a tough one because I own a company and I don't really know how much the company is worth right I can look at what's in my investment account I can look at certain assets like let's say jewelry or art and kind of add those together yeah yeah once you get to the companies it becomes kind of fuzzy because you have to find a buyer for the company more to be truly net worth yeah and probably probably more buyers for the company than their art and the jewelry yeah you know so I don't know pay 400 grand for the watch it's probably worth 200 today so I know I'm worked at least 200 grand cause I paid cash that's a Richard Mille yeah probably go to AVI here probably give me half of what I paid for it yes or what is this is the whole argument about the net worth thing okay yeah I know you're gonna get a big headliner like Cardone talks about his network it's great because people love that [ __ ] yep so look that sheet of paper I was looking at had a bunch of cash in it I know that's real that's real I could go grab that I know there's a couple of bags hidden around the world you know I could go grab the three bags there's some guns and ammo I know where that stuff is there's 1500 accounts receivables from companies that I could I could go to a bank and borrow against there are 6500 apartments with addresses and tenants so 6500 times eighteen hundred dollars I don't know that's eleven or twelve million bucks a month it's worth something to somebody plus the the real estate what my wife's over here doing math for me like she's counting on her fingers too by the way so you know I got my wife and my kids man I got my brand I don't even know what my good luck my brand is like Jordan Belfort his net worth based on his brand that did he stole money from people that [ __ ] that cost you everything in the future no major company would ever hire a krumper convicted criminal okay I've worked for some of the biggest companies on the planet Morgan Stanley's hired me like why because my brand is good so I don't know what my good will is if I quit cursing and quit taking on other people and and punching people out in the face on YouTube I'd probably have a better brand you know you know the fact that I put 35,000 people in an event last year in Miami you know that gives people a lot of confidence about my ability to fill out a stadium yeah Congrats on that yeah yeah I should have you speak their 1 year man I got you whatever you want okay and there's a lot of a lot of stories about Scientology there's documentaries there's there's you know just a lot of information that's going back since like the 80s what made you become a Scientologist I read the book Dianetics when I was 25 years old right out of a treatment center and that book helped me understand why I was used to drugs so much and actually helped me in my recovery process then I went and did when I was 45 years old I actually had an experience because of a friend of mine that had been studying Scientology he was a bond trader and he was one of the most successful bond traders in the United States and I'm like hey what what you know what you seem different than everybody else I meet and he's like well if you want to know what it is I'll tell you I said well what is it he said to Scientology I said where is it when is it and how can I get some of it and at that time the only thing I had done at that time was reading a book Dianetics and I was living in San Diego at the time he was living in Houston I got an appointment to go to the church in San Diego set I went in there asked him hey what do you do here exactly forget the media at the CNN the tabloids it didn't matter to me that John Travolta and Tom Cruise or Scientologist that meant nothing to me like I didn't give a [ __ ] I'm like all I wanted to know what can you guys do from it and the guy looked at me says what do you want to handle what do you want to handle with your life and at that time I was 45 years old had a single I wanted a wife I wanted kids that wasn't happening I was not I was not in a good place to be a family man I didn't I was scared of it I was actually terrified of that kind of commitment I own three businesses at the time I had a little bit of money but I didn't know what to do with the money ok this was just 15 16 years ago so if you look at the trajectory of my life since I was 45 years old you're gonna see like it's gonna be slowly going upward and then all sudden straight up and I have been there now for 15 years I've done courses books auditing thing called auditing that has given me so much peace in my life so much more confidence personal confidence I used to be scared of everything I don't have that anymore well when you look to some of the documentaries about Scientology you go into certain different levels right and there is a highest level that you could achieve and the thing that I found kind of a bit strange the based on l ron Hubbard's writings is it at the highest level he reveals something called Xenu and I'll go ahead and read this so yeah it's all it's all it's ridiculous about right it's a I'm just tonight I can you I don't know do you want to know five million you want to know for me yeah most people are having trouble with yesterday and today so you're gonna read off some crazy unbelievable [ __ ] that nobody cares about because they're worried about their families today their kids today their bills today and their future tomorrow so I didn't go there to handle anything about [ __ ] trillions of years ago I seem like a pretty pretty [ __ ] practical guy I care about taking care of my wife my kids and my life and I don't go to the media or the tabloids and I don't [ __ ] Google [ __ ] to find out what it is I listen to a guy that was a very successful bond trader say hey man this helped me make good decisions day to day and I'm gonna tell you I've been down there sixteen years half the [ __ ] I've seen on the internet about Scientology 90% of the [ __ ] I've seen on the internet about Scientology is complete [ __ ] garbage it's helped me in my life personally I have a beautiful marriage two beautiful kids I'm a good father today I'm dependable I had three employees dude when I walked in there okay I got a 185 in Miami I got another 150 in the real estate I owned a handful of houses of apartments in when I was in San Diego maybe 200 units own 6500 today so it's been a game-changer for me that's all I can tell you now people want to get their information from Google and some documentary like that the documentary they did of Michael Jackson somebody asked me if I watched I said why would I watch a guy he can't defend himself I'm not gonna watch yet I'm not gonna watch one side of a story well if Scientologist ever made a documentary to respond to all that yeah santé it's called Scientology TV okay there you go okay so you feel that Scientology is one of the keys to your success not not did I get I would give I would give what I've done there there's $19 course I'm doing a finance course they have there right now it's $19 that when I read that that finance course on the way down to New York by the way it took me maybe three hours to do the whole course you can do it online I went to account I spent five years to get an accounting degree I learned more in this little course a little course pack this big then I learned in five years of college hey man forward for you I'm all for it well for it your wife is a Scientologist also yes she is okay your kids well they're eight and ten so that'll be up to them okay so let's talk about your book the 10x rule which actually I actually own that book before we did the interview and I didn't even remember that that you didn't know was me yeah I didn't know it was you it was you know as I was I do books by audible I do audiobooks that that's my thing I was with them this morning yeah I mean cuz I'm able to read books at like 2 or 2.5 speed yeah I could just kind of whiz through it really quickly so I mean a very interesting book how many copies have you sold so far of that I don't know I think the audio downloads in the video far exceed the books though okay but it's been a New York Times bestseller and everything I don't know if that book hit there I know well if you're not first you're last is on the New York Times bestsellers list I don't know if the 10x rule hit the list you know it's a weird list when it to get that it's only over the opening week okay well you had you had some interesting points in it you had like four common mistakes the first one is setting your sights too low I remember Richard Branson said something similar that he basically says look if your goal is to make a hundred thousand this year make your goal a million you may not hit the million but you'll probably surpass the hundred thousand yeah is that pretty much what you're saying yeah the the basis is is that because we underestimate challenges and things that are gonna happen disappointments and discouragements because we miscalculate the downside and the struggle most people come up short on their targets and I believe and I think Richard was saying the same thing here is that if you just if you just literally come up with a different target ten times bigger target just as an arbitrary number if you picked a target ten times bigger number one you will have a different plan to achieve a million than you would a hundred and number two you will probably exceed your original goal by many even though you come up short on the million well you also talked about people underestimate how much action was required and spending too much time competing not enough time dominating their sector explain that so look I made this mistake for twenty years by the way that book and all the books that I've read it's me trying to solve a problem I'm trying to solve my own problems and the 10x rule was I was at that time I've been in business for 20 years kept struggling working hard doing all the right things but could not get ahead literally could not find a way to get ahead of the game and felt like I was always a little behind not sure about what I was doing so the premise there is I was I was calculating what it would take to get me in a in a place when you're trying to do this when you're trying to build anything you're you're doing it for the first time there's not a lot of direction or and it's around you and so I'm looking around other people as my measurement if you will hey how am i doing compared to them and I was doing better than most other people so I thought I was doing good but it still didn't give me the freedom I wanted and so I said what is the repeated mistake I keep making it it was I was competing with the guys on the side of me I was comparing myself to their movement and when I finally dropped that and said hey I'm going to go dominate this space I'm gonna own it until I'm gonna spend more I'm gonna be in more places I'm gonna do what they won't do until at which point they will surrender some of their turf to me so the concept of their dominate the space don't just compete with the people at your level well in the book you also said you either accomplish your goals and dreams or you'll be used to accomplish someone else's goals and dreams yeah that's true you you know if you're you're either working somebody else's dreams which is nothing wrong with that you got to help somebody else you can't make your own dreams come true if you can't make somebody else's country but but if if you're not dreaming right if you're not dreaming about how to be better how to excel how to find another level then you're gonna get stale in your job anyway and you're gonna be used up in that space like a like a clog in a wheel you just be consumed by the system so the person that is always valuable in the system of the economic system is the person is continually to create out create and then deliver more than they promised whoever they're around whether it's an investor the boss until at which points to the boss to the investor says hey let's give you a new position here well Nick Cannon who's a regular guest on my show and you know he's worth hundreds of millions of dollars a bunch of successful projects one after another and we were kind of debating in our last interview about people hustling and so forth and people being bosses and this then he said well glad you got to realize not everyone's a hustler some people just want to pay their bills and die I believe in hustling I believe like okay look Jax and everybody doesn't have that serious and you know just because some people are designed and be you work you're right you have you soldier I had a great run as DJ at one point I realized hey I'm getting too old for this [ __ ] I can't I can't I'm not gonna keep supporting myself by doing these Club gigs and so forth it's time for me to switch up and do something completely different yeah that's where the video cut from a different cloth like everybody doesn't have that engine noise I respect hustles I don't I don't respect people but you journey of the world that middle-class that we were talking about their employees I would say that's the majority of the world wouldn't you say I was having this conversation today I asked myself this all the time I think I think most people have given up on the game honey well I think I think most people I think I think a lot of people that hate on the game right now have given up on it that's why they hate on it I don't want to play anymore it's like the child that throws down the checkerboard I'm getting beat so bad I can't play so I throw the game away and I think people are doing that with money now you know I mean look at the stat that you gave earlier about 1% of the people literally owning more than the entire middle class combined you know when you're doing all the right things and I can relate to this because I watched my mom do all the right things save the money paid for the house paid the house off paid the cars off never stole from anybody you know plan for retirement she was still terrified every month are they gonna stop my Medicare are they gonna stop the Social Security is the health care plan gonna change is my cash being invested right like she was terrified so at some point you're like I give up you know or or we try to vote we try to vote for the right president to somehow solve our problems and this isn't an American issue but this happens we're in Brazil same thing goes on there i go to i go to dubai they're they're worried about the same things in two body so i think a lot of people have given up on the idea they can change their condition in life and therefore they end up doing too little or just enough to keep a job and to be used by the system yeah I mean when you look at these historical low unemployment rates what I honestly feel is just skewing these numbers a lot is the whole gig culture of like uber lyft post mates whatever else you have all these people that are technically employed and I remember uh you know a comedian named TK Kirkland he's a regular on my show we had a debate about uber and he goes he said he claims he knows guys that are making $2,000 a week driving for uber if you do an uber eats an uber driving and you're making 2000 a week because you're putting in 2 hours in 2000 you're I don't know anyone who makes tooth oh I know company make about 2,000 weeks sir really oh absolutely I have how many hours a day do they work they have to work a lot seven days a week seven days a week but they coming home with $2,000 a week okay I got it so that's eight grand so my point is it's a lot of work but me and you understand what I'm about to say we're what's your plan and I'm like okay you got to be literally working 12-hour days seven days a week to be making mm yeah driving uber and you know let don't even count the wear and tear on your car and the gas and everything else like that it's not really 2000 a week but you have all these people that have these jobs and they're scraping by they feel like their bosses because they don't have to punch in but they have a job that has no trajectory at all if you work at uber for two years you will not be made a manager uber spending a billion dollars losing a billion dollars a year trying to figure out how to get rid of the drivers right exactly so so Zach I'm totally with you on this first of all three and a half percent can't get much lower number two wages haven't changed in America they have not changed like leg literally if you look at the if you look at a graph on wages they're almost flat little blip lately but but but still not enough not enough to think that gravity's not going to pull that number down again you got the form the form payrolls are getting hammered because of wages the dairy business is up because people aren't drinking you know they're like lactose-intolerant now so the milk the farmers are going out of business over there those are real jobs if uber gets rid of drivers like like uber got rid of taxicabs and their drivers at least in every other every other city but in New York if the if the unemployment goes to five percent from the three and a half that's a 30% increase there's gonna be a lot of people hurting in America well I don't think it's if uber gets rid of drivers it's when uber that's right for drivers I own a Tesla and I use auto drive every day now that's not fully autonomous but it's really just one step away yes already being done and I use it every day yeah and people in denial about this glad you know that yeah like there there's gonna be tremendous automation in the next years to come that's gonna replace jobs a hundred percent 100% now you talked about in the book you said you have to be obsessed nobody has ever accomplished something incredible without obsession and he said the ability to be obsessed is not a disease it is a gift yeah and I could tell you I took a vacation with my family it was like my first vacation in like three years and even though I was supposed to be on vacation every morning I would log in and the internet was bad where I was but it didn't matter I logged in and I worked every morning and and slipped in some work throughout the day because I'm completely obsessive about my business yeah it's not it's not that I have to do it it's that I want to do it yeah and this is what you're talking about I sell yeah and you can't you can't name a person that you and I both can share their names Nick Cannon I know Nick I mean I don't know Nick but I know of Nick cuz Nick must be obsessed yeah and and uh like all the greats just go back all the way through time these people become obsessed with their mission and this is what's missing from the quitters the people that you talked about earlier they checked out on the game they threw the checkerboard down they're like I quit man I can't win the money game so so I'm not going to be obsessed with it the wealthy are obsessed with their wealth not for the money man not for the money but for the game and and people that want success Elon Musk is obsessed with this electric thing he doesn't care if it makes money he doesn't care if he's in the car business twenty years from now he wants to change the game yeah and the SpaceX thing let's not forget that yeah yeah whatever he's doing he wants he wants to change the game everyone has that musk in them by the way like everybody has the genius in them everybody has a Steve Jobs everybody's got an Oprah everybody's got a mother Teresa in them and and the more I can like be obsessed with whatever my little gift is well yeah I remember I interviewed Scott Adams he's the artist behind the cartoon Dilbert you know I'm talking about yeah right this is this has been a mainstay in the newspaper world for decades at this point you know very uh you know rich guy I went to you know really nice house has money and so forth and he kind of broke it down you know he had a bunch of New York Times best selling books on top of it and he kind of broke it down in an interesting type of fashion that people people will say well you're gonna be successful something you're really passionate at and you have to find your passion but but he kind of said well you know you're passionate about the things that do well you can make you money yeah and people seem to like you come more passionate as more energy builds around these things like you said that passion is actually overrated yeah so if if you talk to a billionaire as often happens when a billionaire gets interviewed somebody's going to say what was your secret to success and what are these billionaires always say whether it's Warren Buffett Mark Zuckerberg Richard Branson they all say the same thing they say passion follow your passion that's that's what makes everything work here's the problem with that think what else they could have said instead of that answer could they say well I'm a billionaire because I'm smarter than poor people right can't say that even if it's true right because in those at least two of those guys that might be true right you know but Buffett and Zuckerberg are way smarter than ordinary people yeah they can't say I worked hard because they're Gardner works harder than they do right it's not helping them become a billionaire so if you look at all the answers they can actually give they can't say luck because then nobody wants to work with it was like well you just got lucky once you know what are the odds happens again yeah so they say the only democratic thing they can say passion you know they say that because they think you think you can get that you could just be so passionate about something when no one cares about it and it's literally making no money yeah you see what I'm saying Oh Tommen like it's ridiculous it's ridiculous it's bad it's bad advice for people to follow their passions like yeah just because just because you're passionate about something I was on I was on a show recently and this kid goes into his pitch about his business and why he loves it and he loves this idea and I'm like yeah bro doesn't matter if you love it if nobody else meets it wants it or will pay for it it don't matter yeah and I almost feel that knowing when to quit is more important than knowing not to quit because you could very easily just keep hammering your head for years on something that's never going to go anywhere but to be able to just say look I'm cutting my losses this is going nowhere yeah I'm gonna go focus on something else is extremely important more important I feel yeah that's not quitting though that's all that's doing is moving this much shifting your obsession this thing's not working shifting that obsession and that energy in that mass of action to a channel that can work and everybody is required to make a shift along the way the vehicle you start on will not be the vehicle you arrive on right because you said your career should be a religious mission yeah and it and I should I should go through a series of evolutions so that I'm not you know I'm I I might not show up on a horse if I started in 1800 yeah I mean when you look at a flat TV we are here to document culture and important figures during this time for generations to come this is what we do so for example one of my favorite actors was John Witherspoon he starred in the Friday movies and the boondocks and so forth I interviewed him last year and it was basically like a documentary about his life he told his life story from beginning to end he passed away a few weeks ago and this is the only piece the only interview he has where he actually tells about his life when other interviews he's talked about his movies here and there but to say here's Rao's born here's how I grew up this is how I got my first break here's how my career progressed here's where I am now this is why I'm still working at 76 years old and so forth that doesn't exist outside of this flat evey interview and this is really like what I feel is the religious mission of what we're trying to do so I don't really care how much money gets made right now I don't care whether people like it don't like it there's a there's a higher mission yeah what we're trying to do here and I feel that most successful people this is what they do yeah and then you got to find some things that pay the bills in the mean time so the fact that you're doing that nobody else is going to do it because the networks can't do that TV because they feel like it's - promotional to an individual and the fact that you're doing that man one it's gonna it's going to provide long-term value to society and number two people should get behind you and supports you look I'm the one that said am come back to New York let's meet up because I do know you add value yeah I mean I looked it up almost 4 million people combined watched our last interview yes amazing pretty big number it's a lot of people man yeah and you know when you look at successful people I grew up in a town of 40,000 flats so that's like a hundred x-ray exactly when you look at the most successful people their time the more successful someone is the longer their timeline is meaning that when you look at the the millionaires and the billionaires they're looking at what happens past their lifetime yeah when you look at the middle class they might think a year or two in advance and when you look at the the lower class they're trying to make it to next week would that be a fair a fair assessment based on what you saw you know I remember when I was worried about one night so I remember when I couldn't I'm like am I gonna be able to pay the rent this month I was 23 years old I'm not gonna be able to pay the rent I'm not gonna be late again and then I remember when I was 25 thinking okay I am I I think I'm gonna actually make a hundred grand this year and I was starting to think in years now and so again that goes back to that evolution thing you know now it's like wow what are people gonna know me for they're gonna know me for the money I made or they're gonna know me because I was a good dude I didn't rip anybody off you know I had a great career employed a bunch of people they felt good about it that I left some advice on this planet and so I think you're right the more you get away from money problems the more you're able to look into the future and this is what Steve Jobs at the industry jobs career he says money doesn't matter but that's not what he was saying when he was trying to frickin put some money together right when he was trying to keep Apple on in the game he went to he went to his his at that time enemy okay which was Bill Gates and said Bill I needed we need to do a deal I need to borrow some money so here's a guy that had to put away a lifelong grudge to keep his thing in play he had to sell a little part of his soul so that he could be the Steve Jobs and and make Apple the company he knew it could be and he had to give up on this old idea one that he wouldn't you you he wouldn't depend on his old adversary and number two that he would give up the idea that Apple would always be just this piece of hardware and that's when iPhone happened you know he hung in there so these these people don't quit you know when you worry when you're just when you're just like I'm paying bills this week you've quit on the dream and this this is what people in all countries can't afford to do right now no matter how hard it gets you can't quit on a little bit of dream you got a little bit of light you got on your dream because I'm proof right now that anybody if you don't quit if you don't quit if you don't screw people over if you don't rip people off if you add more value if you keep showing up and you keep you know learning from the right people and you don't throw the towel in and you can do anything you want that that is still true today regardless of how bad it is for you right now at this moment well you had a video called five steps to becoming a millionaire can you break down those five steps man I don't know if you if you help me to them right now I don't know if I could I think I probably probably number one is do the math or number one could make a commitment to be a millionaire number two do the math okay you basically just break down 20 years into into a million dollars that's 50,000 a year most people are going to make 50 grand this year median income in America is fifty nine thousand dollars so if you're only making 35 it's going to take you 30 years so do the math and then figure out hey how can I shorten this period of time up because I do not want to be a millionaire or make a million dollars over the next 50 years I want to see if I can shut that down into like ten years I don't need it to be get-rich-quick I need it to be hey I'm gonna get rich at some time in my life I don't want to be so old that I can't enjoy it and I want to go to take care of the people around me that I love and care for so I think the last step was just stay with the deal don't give up on it but you might know the five steps better than I do I've dropped a lot of video all right well you've said in your book okay well you said in your book no one will save you or make you successful and I think that's one of the the big misconceptions out there is people feel like you know if I could just meet that right person if I could just do that right pitch because I see a lot of it you know in a lot of the comments it's like how does someone raise money to buy a multi-unit property who's making ten dollars an hour and it is if you look at this and you go okay this is this is not a realistic question you don't know there is an answer to it you don't bro not making $10 an hour yeah like like my dilemma when I bought my first deal I had the money see people don't even know all the right questions ask me and Daymond John talked about this all the time most people don't even know the right questions to ask it just shows you the schools are teaching people nothing like like why in their class on what are the right questions to ask someone if you only make $10 and you want to be in real estate the right question asked is who the [ __ ] do you partner with to do a deal how can you ask Val how can you add value to somebody that has money that wants to buy deals the first guy that I did apartments with he had no money he was 53 years old with less than 50 bucks in a bank account I let him tag on deals for me because I needed a manager I had the deals and I had the money I didn't have the time to manage the property and I did not have the the natural inclination or skill set to manage real estate meaning meaning I didn't want to collect rents I didn't want to fix units I'm no good with a hammer hammer right I don't know what the plumbing problem is I just I don't know any of that stuff so I gave him an equity position in the apartments to run manage take care of the properties the deal was don't steal from me if you steal from me rip me then you're not going to get your piece and I gave him a piece of equity when we sold I got made millions of dollars tagging along with me so he made me rich and I made him richer it was a symbiotic relationship where we both benefited so that's what the guy that has ten bucks should be looking looking to do rather than rather than what his comment was which was just another [ __ ] quitter how am I gonna ever do this for the only ten dollars you ain't particularly cuz you got a bad attitude no only ten dollars well yeah I mean a lot of people say I've got all these great ideas but no one to invest in them and my response is always if you really believe in your ideas you can start small you're just waiting to [ __ ] up someone else's money that's what you're really saying yeah you want to mess up someone else's money because you don't want to mess up your own money but the reality is black TV will start in a bedroom with you know the few dollars I had in my bank account I did everything I held the camera I did the interviews I edited the videos I mail to email them out I did the marketing I did the uploads when I first had an employee you know I would pay them myself like it all just started by just pouring money back into the company and just scraping by until you could you could keep how many rows how many views in your first video I don't know 20 30 like nothing yeah nothing no no one saw the vision in the beginning and people said I remember the goal was okay we're gonna drop a new exclusive video seven days a week 365 days a year and everyone said that's that's stupid no one wants to watch that many videos just drop one one a week or one a month and I'll be fine these days we drop six videos a day yeah plus a flashback and a full interview sometimes that sometimes eight videos a day and honestly I could double that if I could I just you know for me the hardest part of my business is hiring and building a staff yeah that's always been the hardest that's been the hardest part from flat TV it's not the content it's not the audience it's the hiring and the managing but the reality is is that you can't really over expose yourself it's impossible yeah we live in a we live in a like you you you that TV can compete with Fox News today I think we do compete with Fox News if you look at their YouTube channel I think that our videos probably consistently get more views than Fox News yeah so I mean Fox Business Fox Business the junior to the pro to their network you you know you probably get more views every day than they get with eyeballs and they got tens of millions of dollars invested in their in 20 25 or 30 years of a brand and major piece of real estate in New York so not to mention what you do to MSNBC and CNN yeah yeah I mean when you get good guests like me then you just [ __ ] you'd tear it off the charts yeah I mean we get more I look at ESPN numbers on YouTube we we blow those numbers away this is a completely it's not it's not a business with a bunch of VC money behind it it's all just basically taking the profits putting it back in and trying to grow it so that's really the message to everyone that's waiting for someone to come save them just start it yourself or just go I think that there have been looking for an investor go south go go sell the product to somebody before it's finished right and sell it to somebody you know and what I find somewhat silly in terms of a lot of the messages I get is hey I was I want to start a business like yours can you mentor me yeah and you go to their page as a private page with no business and it's like insane why would I waste my time on someone who hasn't even started yet as opposed to hey look I've been working this business for two years I got up to this point can you help me out you're like yeah sure I could bring you I mean we've interviewed other media companies you know we brought in like the people like Adam 22 from no jumper or Sean confrim say cheese TV we try to give back to people that are hustling but I'm not gonna waste my time with someone hasn't even started yet but but we know the guy the guy had started he's got a social media channel this private like like why do you why are you in social media if you're private do you look at that much porn you don't want your girlfriend to see it seems like the real estate market has been slowing down for the past I would say year and a half would you say that's accurate or no what kind of real estate you're talking about residential real estate a houses single houses yeah single-family homes yeah they ought to just die yeah there you go I'm just trying to get one all the housing in America would go away so I turn everybody into a renter yeah do this all right the reason the reason is you got you got 70 million people in America don't that the 70 million baby boomers that don't need to own a home they've already owned one they want to go on a vacation now they're moving into retirement into the golden age you know they're not gonna have a house they're gonna die there what's gonna happen in the next 20 years is you're gonna have millions of houses find their way through the system because mama or daddy the last living is gonna die in the house that nobody the kids don't want the two kids are gonna say what do we want to do with this and Mike's gonna say to John sell it okay good when do we sell it says John Mike says as fast as we can they put it on the market they get it all for next Friday they say let's sell this thing we don't you care what we get because anything they get is a hundred percent more than they had divided by two which is 50% each so that all they want is their money dude that means that house has no bottom to it so number one you got half of America that the owners of homes that are getting too old and then you got this young 89 million babe Jen Millennials that are like I have no interest in out at home I want to travel I want to be mobile so you got half of America 150 million strong that are like I have less propensity to own a home than not and then you got an economy that if it softens up at all will kill housing yeah yeah like I've always said I've got an apartment in New York and I got a house in Calabasas and both of my rented and I have absolutely no problems with that whatsoever none none and we had one place in New York we kept it for about a year and a half we realized we didn't like it when that lease was over we just up and moved it was that easy Bank of America rinse Wells Fargo rents they rent man they rent they rent where they work and they lend money out to people that will buy where they live what in the 10x book you talked about getting an unfair advantage can you explain what that is you you you want to put yourself in a position at the table where you can win so you got you got to assess the other players at the table what will they do what will they not do you know it's not about the cards you have it's about how to play the cards you have and the way to play the cards I have is to find out what will the other guy do or not do so you know the fact that you're doing Vlad TV what you're covering you know the networks won't cover it so it gives you an unfair advantage me buying real estate that I can close on without checking with a board like Blackstone has to go to a board to get every approval on a deal at a hundred million dollars I don't need to check with anybody gives me an unfair advantage against an institution it has they have thousand times more money than I do so everybody as long as you hadn't quit as long as you hadn't thrown the towel in you can as long as you're creative and committed can figure out what your competitive unfair advantages is this similar to what Warren Buffett calls an economic moat yeah I think it is are you familiar with that yeah like for example in the economic when you have a product that has some sort of value to its customers where a competitor can't lower their price yeah and steal your customers like for example Nike is a good example yeah it doesn't matter if adidas says hey well D this is actually good competitor but let's just say if New Balance said hey all of our shoes are 10% lower than Nikes people still buy Nikes yeah is that basically what you're talking about yeah yeah the mote would be like like in real estate since you brought up real estate you know one one house a house doesn't have a lot of moat around it a lot of protection right we're not about 300 units it's got a swimming pool that's four million dollars theater security lighting leasing agents we take care of people doggie Park those remotes very very difficult to replace even if the economy pulls back you're still gonna want some of those things like security even even the social environment having 300 tenants on 30 acres that people can actually have community with one another for 1,800 bucks a month very very difficult to replace that in a single-family home where you have probably no fence no wall wall is a bad word right now no fence no pool no security definitely no social community to tap into so those are moats right you want to protect your business the lad TVs got a moat it's got it's got this brand hey I'll deliver eight videos today some people can't do that and and and so sometimes a moat in just Apple it's got big moat around it but but work ethic can be a moat so mom yo my ability to spoke my willingness to spend money million dollars a month in advertising and to probably generate another eight million dollars in organic advertising builds a tremendous moat around me and my brand and my companies for other people can't just come take it from me because they they can't replace easily what that other company or you are doing so you spend a million dollars a month in advertising yeah I'd like to get to a million a week hmm all right because I think after doing our interviews and started to post more site I actually saw Grant Cardone banners on my website that's good dinner did you like them I did good I did you paid for that that's all good for those I try to waste as much money as possible in advertising yeah that's always been the challenge for Vlad TV we've never done any advertising you know yeah we felt it should all be organic but you know when you look at the big boys none of them are doing this give it all the big boys spin one of the questions I had when I announced that we're doing this interview someone said what can poor people do to break the cycle of poverty number one you got to know that you can break the cycle you the first most important thing is you have to make a decision on breaking the cycle you know I wasn't born rich I saw I saw I was born into the middle class I realized it did not work it's a broken system the middle class is almost as painful as poverty constant fear and so the way to break it is you have to number one make a decision I'm breaking the cycle and number two I need to study people that have broken the cycle like you just said about you don't advertise okay well you can brag about it but it's not a good idea right nobody in the history of the world ever became big not advertising like you should be wasting money on ads everybody should know about Vlad TV you all right got it do you or you got a base of people that want to talk it up for you you know you you've already turned up all this hate like how many years you've been doing this we're going into our 12th year yeah you got 12 years of putting up with [ __ ] and and negative comments like all that is energy because now they know your name that's all they ever remember is the name so so if you through if you threw money at that now the bonfire will just spread and that's a mistake that I made Vlad the first 20 years I was in business before I started doing the Scientology I was too scared to spend money it was me go out get money keep money herself go ahead and get some more money keep it for myself go out and keep it put in a retirement account plan for when I'm gonna get off the cycle I'm gonna get off the treadmill I know my deal is coming to an end soon so I got a horde my money I was terrified the more money I got the more scared I got the money I did not know how to use money and then you know once I started removing some of my blocks some of this would you call it poverty thinking scarcity what did you call it well the cycle of poverty yeah the cycle of poverty I was stuck in the cycle of poverty even though I had money like I know I know people I grew up around people that had millions of dollars that that would still cash in for food stamps and we'd go to Macy's every year and get a new card under another name to get a 15% discount that is a poverty mentality regardless of your bank account and so number one make a decision to break it number two you got to start studying people got to start studying people that have broken the cycle the chains bill goat Bill Gates was he was born but to a wealthy family but he broke the cycle of his dad's poverty thinking his dad was just a rich doctor his dad was nowhere nowhere near the position that Bill Gates has put himself into because bill had a much a much bigger wider think about his responsibility on this planet right because after our interview after we started posting I think the first part and you talked about how when your dad died he left an insurance file i fin surance policy that your mom cashed out everyone's like Oh see this is that [ __ ] see this guy started out with it with a big big insurance you know payout he didn't start from the bottom you can't compare us to this guy he had a huge leg up over everybody and it's like well okay maybe you got a little bit of money no dude no no no no dude I didn't get any of that money I was two wars oh he's just saying in general your family yeah but yeah we had enough money for my mom to feed us right so if you don't have enough money to eat man okay I have one leg up on you I mean I had a bicycle too so maybe I got you I really got a [ __ ] on you I had a bicycle with air in the tires I had a 22 rifle back it back to Lake Charles Louisiana we 15 years old I'm carrying my rifle out in the woods every day shooting [ __ ] so I don't know where we got the ammo from there must have been some sitting around the house but it's not like I had any luxuries I had a roof over my head the air condition worked I wasn't in a crack house I admitted all that I didn't I didn't have a Kayne upbringing nobody beat me up every day my uncle didn't have sex with me but I watched my mama clip coupons and I watched my mom she knew every time the plumber came over she was gonna get screwed and if she went out and bought a car that car had to be 12 years old before she would trade that car in my first car was $500 it was a Ford Mustang so I I didn't say I was dirt poor that I ate worms from the ground in Nigeria but but we were terrified about money man we had a little bit of money my mama had some money man but we were scared of it she didn't tell me when she died at 89 years old she would still not tell me how much money was in that life insurance she wouldn't tell anybody because she was terrified if she told somebody they'd get the money we lived off a dividend checks that she would get every quarter and Social Security whatever that was three or four hundred bucks every two weeks yeah I actually looked up I went to social security.gov and I looked up how much my pension is going to be and it's like if I cash it out at 65 I'm gonna be making something like $750 a month yeah but if I wait until I'm 70 it goes up to like 1,200 or 1,100 because I guess they're counting on me to die those five years and I'm like yo like I've paid millions of dollars in taxes over the course of my life and this is what I get in my retirement $750 it's like are you serious right now like this is crazy yeah like if it's even there to pay you yeah you know and when you're 80 what's what's twelve hundred bucks worth when you're 80 yeah exactly is that you know in the book you said focus on now the only time it's important is now and the future so you never focus on the past try not to it's over man what am I gonna do about it you know psychotics are stuck there it makes me crazy thinking about yesterday can't do anything about it I lost the deal I lost two deals two days ago what I'm gonna do I can't I can't keep running it over like what am I gonna do to put the deal back together that that's a better thing you know you get a flat tire man the thing is you you guys can kill each other about her hitting the curb and getting the tire flap somebody's got to change the damn thing yeah it's uh I see this with people around me like people would hit a roadblock and then just shut down you know like for example I was looking online and I was looking at furniture right and because I have to buy some new furniture for my house so I said okay well I mean I could buy it in cash but let's just say I financed it right now if you let's just say you buy two three thousand dollars with the furniture you could pay it off in three months and you pay no interest or you could pay it off in 12 months and pay 100% interest like it almost seems like you have these programs that will keep the poor even poorer if that's even possible a hundred percent interest so I either pay two thousand three months or I paid 4,000 in 12 months and if I don't pay that four thousand twelve months there's gonna be a bunch of other charges on top of that and it's like yo the furniture is only probably worth a thousand bucks it's such a predatory type of thing where the people at the bottom just become roadkill I think totally Warren Buffett yeah Warren Buffett even said that he said that America is low low lowest class right now is becoming roadkill do you agree it's uh it's not financial inequality it is educational inequality like people are paying playing by a completely different set of rules you know the intention the intention of the poor is to pay the bills because somebody said hey you can't change your condition it's not true all you got to do is ask yourself a different question who has changed their condition in your community tell me tell me about somebody that broke out of urban Baltimore that that there's not a rapper not a ballplayer but they broke out they did something without a scholarship without any super talents they didn't get lucky as a rapper and they and they made it out like you got to figure out Who am I gonna mimic Who am I gonna edify Who am I gonna follow they're probably not on Instagram they're probably they're probably running a business how do I get connected with those people how do I get out and like like the attention has to be a commitment to getting out wherever you are and if but if you think you're fine or if you think you're stuck then you are roadkill regardless of where yeah you could be in the middle class with memberships to a country club and to BMWs just got the same issues I know guys I know guys that are paying so much interest for their homes their cars their country clubs and their kids tuitions I was with a guy on the way over here paid three hundred fifty thousand dollars to send his kid to school and she works at Whole Foods today that's roadkill did and remember to feed the institutions on this planet it takes more than that many poor people it takes a lot of middle-class people because that 1.4 trillion dollars of college debt that was on the backs of the middle class well I personally don't believe that there's a middle class I look I'm with ideas either as either rich or poor and the definition of rich is when you have money that's making you money their definition of poor is when you're making enough to pay your bills which doesn't matter if you're making a hundred thousand or even two hundred thousand or fifty thousand if you're not if your money isn't actually making you money you are poor that's just it whereas like there's a famous quote where it said um hold on I'm gonna pull this up right now yeah yeah I think if you don't learn how to earn passive income you're gonna spend your whole life earning or dine earning income exactly it's a Warren Buffett quote man you love war man you love yeah cuz cuz dirty he's saying he's practical because advice is practical okay so here we go this is a quote by Edgar Bronfman Bronfman senior who is the owner of Seagram's yeah with a net worth of 2.6 billion he says to turn a hundred dollars into $110 work to turn a hundred million into 110 million is inevitable I love that love that and the games are different today because the banks pay almost nothing you know like when I was growing up in the 70s the the banks were paying 10 10 and 11 12 % today they're paying point 0 1 2 percent that's 12 tenths of 1% it would take eight years turn one point yeah yeah what do people do with their money they put it in the bank they open a checking account or savings account to store their money there until they can send it off to Wall Street yeah yeah and with interest rates going down I remember I had my money in something called the preferred checking account which was making like 2.5% and then after the interest rate drops and the interest rates dropped it went down like 1.73 and I like really like yeah see the people you're talking about wouldn't even see the change right they're like oh throw up their hands I can't do anything about it so you guys are watching right now maybe you post in comments so wherever you want to post it like I'm not bashing on you I've been there Vlad's been there you got to pay attention you got to pay attention you got to decide I'm gonna break the cycle I'm gonna get out of the trap and if you don't it goes back to what Vlad was saying earlier you're going to be roadkill like if you don't get out of harm's way they will run you over I mean when you look at what's been happening like when the crash happened back in 2008 they lowered interest rates extremely low and it was supposed to be a temporary situation 11 12 years later interest rates are basically still at zero you can't maintain that forever from your point of view of someone that deals with hundreds of millions of dollars like what's going to happen if interest rates just stay this low for the next 5-10 years rates are going lower my friend they've been 20 years in Japan they've been in negative numbers negative zero that means if you put money in a bank in Japan today a year from now you end up with less money than you put in a bank even if you didn't make a withdrawal Germany's same case okay you cannot have World Race with the world Germany and Japan are competitors for money so if I can go to Germany and get my money cheaper than then then here I'm going to go there and get my money cheaper until at which point they'll lower here as well it just shows you the the world the world is now connected and the consumer is full of debt and has it just does not have anything left over at the end of the month the wealthy get wealthier the poor get poorer and that will continue until the poor one at a time make a decision hey I'm not I'm gonna break the cycle here for me I can't break you for everybody I can't you know everybody that hears this less than 1% of the people that see this today will take advantage of it 99% will critique it maybe comment on it hate on it judge it find out where I was wrong find out where you were wrong less than 1% will say hey I gotta wake up I got to change what I'm doing and I got to start paying attention to my money just that little thing that you just said from two point five to one point seven that's a massive change in what they were paying you and and and you saw it and then you got to figure out okay where am I gonna go to protect my money this now mine at least temporarily my money where can I go to start earning five or six percent a year so that my money can grow and I don't lose it while it's growing yeah because that's actually lower than inflation that's right technically I'm losing money every day by having it in this interest-bearing account which is way higher than any checking account and the reason you have it at that Bank or whatever Bank is because somewhere along the line you and I were convinced that banks are safe and then we should keep some cash we should have a cushion and the cash is king when the truth is is just pieces of paper that are garbage they're worthless until they're recirculated until they're leveraged your money bro would be better off buying ads then sitting at Wells Fargo hmm I feel you I feel you so how much you say no right now I'm sorry how much you sitting on a few dollars a few dollars enough to afford this nice office right now uh I'd like you I don't I don't plaster all my my finances to the world I don't think I didn't plaster man either yeah well you gave a little more info than I did okay okay so what's next for Grant Cardone I'm gonna go to dinner that's what I knows next okay business-wise what's next for you uh well we're here in the city doing some things a couple of interesting projects we're looking at doing I'm definitely gonna buy some more real estate we'll get that that should be at two billion dollars by 2020 keeping in mind that my first deal started with three grand that's a pretty big move over even though it took 30 years but we got some TV interest and some some stuff that uh that we might do and we got our our annual event in Vegas this year our 10x growth conference Mandalay Bay convention will that thing's almost sold out and I got another book or two of me yeah I mean we talked about one of the interviews you just put out and you guys you and the guy that was interviewing you who worked for you was saying how even though you don't have to work there's something within you that you want to work that something that you love where you could just you have more money than you could spend right now but yet you're in love with the actual work itself which is what gets you up every morning and has you doing all these multiple projects look if you gave me more money tomorrow I'd still show up at work so find a billion dollars if I had ten billion dollars given to me anymore I'd we got go to work so it's what I did it's it makes me feel good I like doing it I like contributing I think you know if you have kids you see your kids they they they wanna they want to mimic you they want to do things they want to you know you play with the phone they play with the phone you put your shoes on they want to put shoes on like it's I think that's what we're all trying to contribute we're trying to give back and there's not a person listening right now that doesn't want to help somebody else out and if any of you that are listening right now are watching you you get into a position where you can help other people out in life because you did something right or you learned how not to do something you're probably going to feel some inclination to want to help other people out and and look I overcame a drug problem that that almost killed me so I know I know that people can get off of drugs I didn't have any money at 25 years old none zero I was broke I was in debt I got out of that situation I hated a sales job I had at 26 years old I figured out how to fall in love with the sales job as hard as that is to believe I've always wanted to write a book you know if you write your first book it's not easy but I've written eight of them I always wanted to write them one um Zinn New York Times bestseller okay the other seven sold more books than 95% of all books have ever sold so I've done some things that that people told me I couldn't do my first real estate deal was one house I owned a bunch of real estate today did at one time I couldn't didn't think I could land the right girl for my life that I was gonna I was going to end up with a bunch of girls in my life that I didn't didn't respect and didn't want to spend my time with and I finally got the right girl two beautiful children and I think something I I feel good about myself I remember Vlad when I was 16 17 18 19 or 20 years old I hated myself I had zero self-worth none today today when I wake up for the most part I feel you know on a scale from 1 to 100 I'm like I'm gonna give myself a 94 today better than my grades in college that's what it is Grant Cardone you're the man danger always a pleasure I appreciate you reaching out ok this time and I mean you can't wait to do it again you got it brother be great no doubt peace

Channel: djvlad

Views: 911,727

Rating: 4.8602839 out of 5

Keywords: VladTV, DJ Vlad, Interview, Hip-Hop, Rap, News, Gossip, Rumors, Drama, Grant Cardone

Id: zSj8av1xtDo

Length: 93min 21sec (5601 seconds)

Published: Thu Nov 28 2019