this is the BiggerPockets podcast show 250 you're listening to BiggerPockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from BiggerPockets calm your home for real estate investing online what's going on everybody this is Josh Dorkin house to the BiggerPockets podcast here with my co-host mr. Brandon Turner holy smokes man 250 shows later you know it's shocking about 250 is after after 250 shows it still took us 2 tries to do that intro right there this is the bigger pocket yeah you you screwed it up on episode 2 yeah and I had to we had to rerecord that anyway you guys all heard the clean version but a little bit of frustration but you got it you know you used your big word I'm big enough I'm strong enough and gosh darn it people like me like you speaking of people liking things we we decided for show 250 that we would bring back the guy that you guys like so much and no we're not talking about Scott trench who were up until now or has our most popular show let's be talking about the guy who had the most popular show until Scott trench overtook him but now I have a feeling that might change again but you know let's let's let's create some competition here amongst these gentlemen we're bringing back Grant Cardone Grant Cardone yeah yeah if you have not listened to yet the other episode that we had with Grant Cardone if you want to know more about grants history what grant did to you know starting from age 25 he talks about a little bit today at the end of this show but if you want to know like the entire story one of our best interviews it's show number 108 go back and listen to bigger pockets that concise show 1:08 you don't have to miss or lesson to this one first or that one first doesn't really listen to that one but it's probably good idea listen oh and yeah so but either way both are fantastic sit today shall we dive really deep into like multi a lot of a lot of stuff that the multifamily like thinking bigger like his you know he makes fun of a lot of things that we do I mean especially like a lot of our listeners do and I do write like owning a single-family house like he tears into us I think at one point he's called are both of our wives yes idiots I think a shock look right now and then I think he tried to cover for that but you'll hear why and I think my wife giving me a really dirty look right now this show will definitively be one of our most controversial shows yes I there is a lot of controversy that that Grant speaks of but it's interesting I I love I love hearing different perspectives this is definitely a different one now on top of that I mean we dive deep on the multi families we dive deep on just how to think about real estate how to think about buying properties what kinds of properties I think for me one of the most interesting points of the show was what kind of property is the most resilient what kind of property is the most recession-proof you know what can you get into where if the market tanks and crashes 40% and it it will the market will tank right real estate goes in cycles when it happens what kind of properties do you need to be in to protect yourself the most and that's the kind of stuff that we dive into and it's great yeah it was a super show but before we get to it and then we talked to him talked it up a lot let's get to today's trip all right today's quick tip is one that we talked about from time to time but I want to bring it up again and that is we have an event system at bigger pockets if you go to bigger pockets calm such events you can see what local events are happening in your area I bring that up because I'm actually speaking at a local BiggerPockets gathering bigger pockets people tomorrow night and so I thought it was you know good to mention it here so yeah if you if you are not attending those local events you should be doing that they're really fun they're really they're good for finding partners lenders mentors people to learn from people that you can teach yeah fantastic and if there is not one in your area don't think that's a negative that's a great thing because it means you can start something so bigger pockets that calm such events check it out and and on top of what Brandon said just starting starting a local meetup of real estate investors if there's not one in your area or if there is puts you in the middle right it makes you the hub of of the community you know you draw on other real estate investors and you're the guy throwing the event what what tends to happen and you know we know a lot of guys on BP who are creating events and they're doing it a lot of them for this very reason is they get the first look at deals they get the first look at what's happening and what's out there so it's a great idea something we definitely encourage go to bigger pockets that come slash events and check it out guys this is show 250 of the bigger pockets podcast so I've got a couple asks asks I can't speak asks of you first yeah I'm glad you clarified that yes thank you thank you thank you very much my first ask I know we do this from from time to time but I would like to ask you guys to go on iTunes go on wherever you listen to the stitcher SoundCloud however you're listening to and please leave us a rating and review those ratings and reviews really really help us they help get the word out about the podcast and and they they're a way of saying thanks back to BiggerPockets for for you know hopefully a valuable show hopefully you know I know I have a co-host that is somewhat offensive but my second ask is go find your favorite show 250 shows you got to have a favorite show jump on Twitter jump on Facebook and let us know what your favorite show was we want to hear from you we want to hear what your favorite show is we know what the most popular shows are but we want to just we want to hear from you guys what you guys love so do us a favor jump on social media hashtag BiggerPockets and let us know what's your favourite BiggerPockets podcast is we don't care what medium you use just hashtag us and let us know what your favorite show was and why otherwise that's those those are my two asks thank you so much for listening we're really we we I don't know it's it's a humbling experience to have so many people who have you know learned so much and done so much as a result of the show over the almost what are we five years now almost five or is it almost four almost five years almost five years of doing the show so thank you guys for listening thank you for putting up with my nonsense and Brandon's you know your good looks and charm yeah yeah baby screaming in the background maybe so yeah but like I said show 250 check out the show notes a bigger pockets comps I show 250 you can leave comments leave feedback chat with other investors about today's show and maybe grant to live in jump in I'm not sure that he will but maybe he will but today's guest as we said Grant Cardone and grant talks just about a lot of really deep stuff as we've already mentioned I don't need to rehash it so I'm gonna just bring him in Grant Cardone I'm not gonna do it that way grant welcome to the show man it's good to have you here man always good to be with you guys you ballers I think this is the only time of my life have been called a baller but I'll take it I'll take I like it so then dude dude that'd be good you know just so you you we're buying real estate we're out there you know having to kind of redefine what the market is how do you look at it you know cap rates continue to contract in it and I've been predicting this interest rates have continued to flatten out I predicted that for the last three or four years there's a lot of things I've been wrong about but but a few things I've been right about the affordable income thing that 800 to $1,100 a month rents not going away they're not building it there's a shortage nobody's talking about this this mass shortage then it's gonna take this property that you used to build about 460 thousand units it's now probably 105 to 110 the I'm telling you it's going to 200 it's 200 here in Denver it's you can't even get 200 and Denver it's like 250 300 in Denver it's ridiculous like product B product 20 years old uh-uh you can't I mean you can't get anything for under two three embers is stupid right now yeah yeah it's gonna happen all over the country because oh yeah there are more buyers than there is product and that is called supply and demand that is not about cap rates this has never happened in the history of our country people are not moving to homes the Millennials not buying the 30-year mortgage they don't have the downpayment and they don't have the interest they don't have the the interest in owning a home for 30 years so the renter thing is becoming a thing a real thing and and there's places there's places to make money even and didn't in the Denver market Seattle Miami even in the overpriced markets but you got to know what you're doing right now well sure for sure Sullivan asked that do like you I mean I think you kind of answered it but the markets crazy how right now so I should sit on the couch and watch TV for the next few years is that what you're saying or should we still get you saying we should still get in housewives you watch the housewives yes if you sit on the couch this is what everybody says why don't I just wait for the correct that's what everyone says I hear it all the time you won't be able to buy any product in the future okay nobody will know you you can't just show up for a crash and start buying stuff that's not how multifamily works multifamily particularly the kind of stuff I'm doing I'm not talking about two and four unit deals like you guys do okay sure there's people who can't actually see the video Cardone here is like knee-slapping himself I'll have you know I'm do it I'm doing my first 1031 exchange right now looking for something yeah medium-sized but you know I'm getting up there to Cardone level I'm working on that because the point is in that joke is for everybody this ever started in real estate you start with two then you go to four you go to eight you probably flipping homes in the beginning every flipper that I've ever met what do you guys call it you have a turn for it uh there's wholesaling that's what people call it yeah everybody that house hacks are flips they're all looking to end up where I am yep oh yeah 200 units 300 units you want to scale I mean it's just it's where I started right my first deal was one house one door the one door I rented it I was making 200 bucks a month positive until they moved out when they moved out and then I realized oh my god I got to make the payment here I didn't say Oh real estate sucks this is too much trouble you can't make money I just looked at and said what did I do wrong here what I did wrong was I was dependent upon one client one customer this is true about any business for any business to be great you need lots of customers Walmart Google Amazon you need a lot of customers for real estate to work you need a lot of doors yeah at the end of the day when the market comes down by the way it will where you don't want to be and this goes back to the crash will there be a crash they'll will though there will be a crash it will be at the high end of the market though it's gonna be in all that $4,000 a month $4,200 a month stuff that they're building in Denver and Seattle yep you don't want to be the first one in there okay because what happens when a crash happens it doesn't actually destroy money money just becomes uncertain and it moves it moves less rapidly right people have less confidence sure so the guy let's say you guys are you know me and Ryan or renting a place for 40 200 bucks a month because I can't afford the 4,200 but I want to show off and good times everybody's a show-off you people about two and three hundred dollars sneakers right now you know their rent and car they're leasing cars they can't afford when times get tough what do they do they quit buying the sneakers they quit showing off for the cars and they call their buddy up and they say hey hey Josh can you move in with me yes the rent dude do we get to spoon we do but the question who's it who's behind yeah and maybe we flip right maybe we both experiment so what happens is we live together for three or four months and then we find out you know that's no fun yeah I you know so what do I do now the mark the economy hadn't gotten better and so me and you both go our separate ways and we go rent something for 1,200 bucks in my Beach yep make sense yeah now now now the point of that story is we're when the market crashes where are people going to they're going to 800 to 1200 right but you're not going below that you're not going to go to section 8 you don't want to be at the bottom and you want to be at the top you want to be in the middle look look how Walmart made a fortune they made it on the middle right they didn't make it just on poor people the whole middle class goes to Walmart yeah well now for poor people right see you want to be in that band whatever city you're in you need to find out what that affordable ban is without becoming government subsidize all right scale that out you're gonna be fine in a crash so so what do you you know that all makes a lot of sense and and and I love it but what if that middle band is the stretch right like in Denver that middle band being $300,000 that middle band you can't you can't find the average guy can't find deals right I mean you gotta go you gotta go and you've got to get off market deals well there's there's you know there's off-market deals to be found in any market but yeah you know that's getting harder and harder right I mean there's more and more investors there's less and less deals to be had so how do people make money in this market this is no longer an amateurs game this is a pro's game tremendous amount of research so what we did here in the last four or five years maybe three years really we've just increased the number of deals we're having a look at so rather than looking at 30 deals to buy one or two I'm extremely selective I'm very very disciplined when I go into a deal I'm gonna close the deal so we do a lot of research before I do a PSA a purchase and sale agreement before I do the due diligence I know whether or not I'm buying that deal so like I'm doing a big deal in Houston right now I'm doing actually three big deals in Houston right now regardless of what I find I'm gonna close these deals on that far into the deals going in before the PSA and before the due diligence that I know I'm gonna buy those deals these are not cheap deals either yeah okay but two of the three are off market so the point is you got a scale out the number I'm sorry to interrupt you but you got to scale out the number of deals you're looking at if you're gonna play lazy investor and look at one or two deals and think you're gonna buy one you're done there's no way there's no way you're gonna buy the right deal see so just like there's a shortage of deals you got to expand the funnel of deals you're looking at I learned this in my sales career yeah increase the funnel right go wide so that you can get the right customers through the door that also means that you have to leave Denver at some point right advantage I have that you don't have and that you get from scale and partnering is that I live in Miami I can only buy so much product here before everybody's so greedy they're like here comes grant let's rip grants head off he'll pay too much so what I have to do is I got to be willing the professional investor has to be one to move to other markets and most people if you're playing a small game you can't do that because you can't be there to manage it right you know I love that you brought up the funnel because you know I tell us to people all the time it's like the one thing I wish somebody would have explained to me when I was 21 22 years old is that real estate is a sales funnel I mean it's the same thing as a guy who's selling cars how many people walk on the lot how many getting you know can you get them the test drive how many them are gonna buy your car I mean you know more about that than I do but like like everything is a funnel and so as soon as I began thinking of real estate that way like it got so much less emotional and so the 90 that's there people all the time like it's a numbers game in a large way you get leads coming in you analyze them you make an offer and some of those officer you get accepted some are gonna reject it but that's all right you know failure is not a bad thing when you're making offers I mean still like I get I don't know why that's not maybe taught more loudly like I feel like every like a hobby because it's it's like network marketing you know you pay 40 bucks and everybody think you're gonna get rich yeah you made $40 investment you walk away you're a car salesman it cost you nothing you don't even have to get a license I mean you got to pay more money to get a bartender a license than you do some of these careers we get into you with no money down you're gonna buy something with no money down and you gonna make money that's who ends up getting spanked yep cannot do a deal in today's marketplace you know with with with a little bit of work I mean this is these are long-term commit they should be viewed like that unless you're doing the flip thing yeah so you you had mentioned before you know before you even start to really diving deep on these properties what you're going to end up getting so how are you vetting these things beforehand obviously you've got to have some set set of filters some set of criteria that allows you to not waste too much time but at the same time make some progress so where's that line and how are you doing that I just found 23 units in Denver for 3.2 million so there are some hundred thousand dollar product out there this looks like a seed product property to me but but anyway just don't you let up and loop net say again is it you pull that up on loop net yeah I pulled that up a lude net but I'd go look at HFF and ara and CBRE and Cushman Wakefield I mean that's where those real deals are it's with those brokers yeah they don't even have them on their websites you got to get on the phone with those guys so to answer your question about how do I know about a deal first if you're looking at a hundred deals and this goes back to the funnel okay the thing people want to do is they want to read a book they want to read a book and think that they know real estate and that's great dude you guys should read books everybody should read books the books are great right because they build some a platform of data to operate from a knowingness but what a book doesn't do is it doesn't give you a feeling of a piece of property yeah so like we go to Houston we were in Houston what three weeks ago three weeks ago we were there three days the only reason we were there look was to look at real estate this was before the Harvey so this had to be like eight weeks ago the first trip we go in i targeted property like like i do a lot of studies on google maps like where is that market I know Houston because I lived there so I had some idea in a big city like that location is key anywhere there's a flat market if it's a flat market your location becomes more and more important as opposed to Seattle or Denver that's crunch ba-bye City and in mountains right or San Diego that's crunch by mountains and ocean so the flatter something is the more research you have to do so I had to confine my research to a location so when I went in there we literally looked at probably 6,000 units in a day and a half Wow opted an address drove the property the reason I did that okay probably looked at 20 different properties 300 units each is because I knew 19 of them actually 20 of them were wrong for me 19 this vibe I don't get this feeling when I Drive up in the neighborhood we actually wandered on a product I'm like dude what is that right there is that honor list no what in our list second baptist church across the street would a Whole Foods Market right next to me the they had sold a portion so I like dude I love this please go I got I had this feeling yeah see if I'm gonna get this feeling and by the way you never look at real estate when you're hungry okay you want to be full so your sensory your perceptions are working because once you look at enough stuff you don't want when you see that right girl that right guy that right property you're gonna get this ding yep you know now if you've only looked at six units your entire career you're not going to get the deal yet you got to look at a lot of products so so so that thing passed that first criteria which is I felt something yeah yeah so look it's got to have a feeling because if it doesn't have a feeling I mean they tell you commercial Real Estate's not emotional look trust me it's all emotional okay I'm doing this deal in Houston I'm talking about 86 million dollars the guide the guide the fund that owns it is top five in the country trust me everybody's emotional yeah okay I know the more people say they're not emotional it's just about the numbers the more emotional they are so and by the way you want a piece of dirt it has some emotional when I got there it felt to me like it was Central Park New York in Houston Texas oh that's great okay 15 acres two acre park where can you go get a two acre park inside an apartment building in Houston Texas now this is probably not everybody's real estate play if you're starting the game and you can't do your first deal can't be 86 million dollars but let's say could be a million dollars you still want to find that feeling that sense of that Park the amenities something the location something that feels good about it because if it doesn't feel good to you it's not gonna feel good to the next guy when you try to exit and it's not gonna feel good to the tenants when they roll up on it yeah that's great and I love I love the point you made about you know you know there goes my little girl talking I like I love about you may God most people want to read a book when people want to talk about real estate and think that they're invested in real estate right but there's something different when you actually get out there and start looking at properties I mean even if somebody is starting in they're only want to buy a single-family or whatever like just getting out there to look at properties I'd like changes it in a big way so yeah I would encourage everyone listening right now like if you're just one of people who talks about it all the time you know put it on your calendar right now I've somebody's had a few but a few weeks ago on the podcast I can tell you're a real estate investor or not but I looking at your calendar and I really like that a lot like are you yeah are you doing it or are you just talking about it it's very different well it's the same as like a real estate agent I mean when you're an agent you got to know every house you got to know all the inventory in your market as an investor it's the same thing you if you're if you're doing a house hack you're looking for a duplex triplex or quad in a neighborhood every duplex triplex and quad in that neighborhood you need to walk you need to go see you need to visit as grant said you got to get that feeling and vibe to see if that energy is the energy you want on top of the numbers right one goes for multi you want you know you made a comment about the real estate agents ninety-nine percent of all real estate agents don't even know the inventory in the market right I can move to a city I've never been to I'll know more about the housing product in that city than the real estate agents that have lived there for 30 years so and everybody can have access to that you don't actually you have to leave your home today but you need to go do a Google search you need to do it from the air you need to do aerial searches you need to know every property in your market it's so easy to do now you need to know apartment reviews you need to call the property like I did a phone call to a property yesterday to find out how they're answering the phones because if they're not answering the phones I had to call this property seven times to get an answer I'm under contract on this deal right now seven times and they didn't answer when they did answer Lucy couldn't tell me what kind of credit I need couldn't tell me about my income requirements I asked her if I could have a dog she said yes then she said what kind I said a Rottweiler she said no then you can't have that dog it's aggressive I'm like you guys discriminate okay can I have a girlfriend I asked her I said Lucy can I have a girlfriend she's like yeah what kind of question is that I said good friends more aggressive than my dog this is fire they were rude they were unprofessional no customer service no follow-up no name no phone number from me so what does that mean that means I could do a better job if I loved the property if it feels good I could do a better job a lease in there yeah I like that a lot because I mean I've done the same thing - I call it places I want to buy and I want to talk to the landlord the manager whoever it is dealing with it and just you know ask the questions like a tenant would you find out a ton of stuff and like you said like that can be a huge I guess indication that there's a great deal there so I love that yeah yeah but but again if you don't love it if it doesn't have a sense of feeling you don't need to do I don't need to do a due diligence like we're in Houston today doing what is it gonna cost us on that due diligence 25 bucks a door so fit 507 doors it's gonna cost me 25 $25 I've already spent 25 grand on a lawyer so I'm gonna be in that deal without my time don't count my time I'll be in that deal 25 times I'll be in that deal for 40,000 do you better know you want this deal yeah I'm not looking for reasons not to buy the deal now at this point I'm looking for reasons to do the deal yeah that's great Caillou so absolutely absolutely you you talked about low cap rate yeah and you talked about how it's irrelevant you know there's there's about a hundred thousand other commercial real estate investors out there who are saying you're full of so can you explain why that doesn't matter I mean like wait what's your what's your theory on it and and why how is it that you can go and buy a to cap or a three cap or five cap and get away with it big between a two cap in a five fair enough but I don't want to piss virtue or anything with that two cap I apologize I'm looking at force yeah when I wouldn't have looked at fours four or five years ago yeah so now how do I make sense of that okay not number one you know we we created a fun card own capital there are certain markets I've mentioned one of them already where I could actually buy a four cap today because the vacancy due to the supply the supply was increased at such a drastic drastic rate it's such a short period of time that that it over supplied the market and then concessions hit concessions go up with build and it put pressure in the middle so occupancy went from like ninety four ninety five and some of this stuff that I'm looking at down to 83 so I lost 11 points when that supply burns off and the concessions go away boom I go back to a six cap yep but again you guys got a look at time I'm being paid for percent I'm beat my investors are being paid four percent my brother my sister they're being paid four and five and six percent for us to wait for the supply to blow off the concessions go away I pick up 11 points on my returns on great properties that I could not have bought five or six years ago yeah so you've got to adjust it's like the market it's like when you're underwriting something you have to be or a lawyer is looking at the due diligence package or the PSA your lawyers got to be market relevant you know there's three markets there's a buyer's market a seller's market and something in between I got to know which one I'm in if I'm selling hey I'm in a seller's market you want to you want to counter me screw you come back later okay I'm in a I'm in a buyers market I can't operate like that but I want to sell something so you got to know where you're at in the process what the market is for a cap rate or for what your lawyer can ask for or what the PSA should look like or how long your due diligence is the we do deals with 14 days due diligence to get deals you know I'm going $100,000 hard on some deals on the first day of the PSA to get it and I'm still losing most of my deals yeah hey Joe do you ever give an average on like the number of offers you make that get it you know what percentage get accepted you have in the ballpark that you you know we look at a hundred deals to buy one we're getting probably six to seven deals under contract to get one okay oh so I'm losing four I'm losing four out of five deals like like I'm so I'm so butthurt right now I am like it's terrible dude it's like I'm losing deals over I lost a hundred million dollar deal over 500 grand Wow now let me just tell ya and not lose it because of the money I know now now that I've recovered from the dis I got I now know that the broker had already picked the other dude it had nothing to do with money he favored another buyer it was rigged going in and again why you got to have a full pipeline yeah okay I was gonna ask you really quick time can I go ahead go out good you're in charge have you pulled it off to cover the guy I'm here how do you become the guy that's favored I mean you know you can't know and get in with with every one of these brokers on the on the sell side so what do you need to do you got to have relationships man you got it you got to be willing to and again it's you know the deal is I'm talking about are big deals right so how do you do big deals first of all how do you do how do you get in with these people you need people need to scale faster so like like one of the mistakes I made in my career was I went too little in the beginning I went with my budget I based my decisions off of how much money I had this is a mistake in real estate people are buying based on how much money they have rather than how much money they can get okay you want big deals right now you do not want little deals all the little deal guys in Florida are gonna get spanked here in about 30 days with insurance increases oh yeah okay even if you didn't have bosses if you own four units or eight units anywhere in the state of Florida next month you could see your premiums go from 500 a unit to a thousand or 1,200 bucks a unit your entire cash flow positive cash flow could get wiped out in 30 days why because you don't have an umbrella covering enough property and I know on the first show that you and I did together you guys did with me I got in a bunch of from a bunch of your audience saying Oh grant big freaking he's always talking about the big deals you guys need to go big it's the only place where you get enough protection now if you can't go big by yourself partner with somebody partner with somebody so you can scale out things like legal looking at deals access to access to people like if you either one of you guys can get on the phone today and say look we have six hundred billion dollars six hundred million dollars for the holdings in house right now under management would more people take your phone calls yeah of course we're preferred borrowers with Fannie Mae Freddie Mac and to life companies okay we have a hundred million dollars in cash and another fifty million in exchanges right now that needs to go to work it has to be placed by the end of year more people would take your phone calls Yeah right you can't call it a guy Cushman or CBRE or HFF or ara you can't call these guys and say hey man what's you God tell me they're not gonna even take your phone call they're like Lucy and policing aids right so really quick Brannon like yeah this is a yes/no question and then I know you got your answer so last time you did the show you had 350 million in holdings you're now up to 600 is that correct that's right all right congratulations Mazel Tov thank you so I what's your New Year's called Rosh Hashana yeah job is in a rush Hashanah party the other day there you go it's fun man join the tribe it was awesome and I asked the dude I said bro let me ask you this Rosh Hashanah this new year thing you know did y'all change your physical calendar your financial counter yo no oh we never changed no we just you know we drink some wine and have some good food and have good company so sounds like a good time yeah yeah all right Brandon all right so my question was uh have you found it more difficult or less difficult because of your stature and what I mean by that is the fact that people know you you're an author you've written New York Times bestselling books and all that good stuff right people know yeah has that made it easier or harder for you it's helped me and hurt me yeah so I'll tell you there's a group in Tampa I should tell them who it is hate that unknown they'd like they don't they don't know what to do with me they're like it confuses them that that I'm writing books and doing podcasts and doing YouTube and and and it confuses them now there's a guy on the west coast why do they matter by the way what it was that even like a part of the equation they don't like my attitude they think I'm too cocky to cocksure to nobody likes Brandon it doesn't stop him from doing nothing you know they think it's protected space don't tell anybody keep it quiet I don't want anybody know about our listings it's like club or something like what do you guys in that what what's it called uh no no the bush thing I like how grant has people thinking for him in the background you know you're a baller when you have people there in some secret society you know did you guys make you make come on half a point on a freaking eighty-six million dollar deal you're gonna make 300 grand on a like what's so protected about this but they're scared they're running scared again why because there's so little supply for these guys to sell and so many guys trying to get their little fee on the deal so now there's another group that I was trying to buy I deal with the guy had never heard of me before he's top five multifamily owners in the world all groups including private public entities he says man I've never heard of you guys complete very structured we're in a buyers interview they're interviewing me as a buyer on a deal this guy's very professional Donna's crossing T's going over the due diligence he's like hey before we get started man my son knows you my is a huge fan of yours any chance you could send a book to him okay now the old man doesn't know me but the kid does the kid told him he saw me on the agenda so anyway in that situation it helped me but I had to nurture the relationship I got to go there and visit him it certainly helps to have a plane and be able to get in front of people that does help you know I brought him to a speech I was doing for the vets I said they come as my guests and he's watching me speak to 4,000 vets an active military you know that helps right so people see me giving back to Irma and Harvey you know they saw me flying to Houston with 27,000 products on my plane that helps me with brokers so but some guys that's gonna hurt you with too but not being known at all is always gonna hurt you yeah so how do we translate that to people who are listening right now that aren't art you know they don't have a lot of following on social media whatever should they worry about that at all what's your thought I wouldn't I wouldn't worry about real estate the only thing you need to worry about is is is seeing property yeah you know what do what are the non pros do you said we're in a pro market now we're at a time where things are tough and you got to know what the hell you're doing well there's a lot of people who were just you know hey I'm learning how to do this do I sit and wait for a year two years five years you said before no you got to go and do bigger deals but like you know I'm on my second deal I don't want to jump from you know a $60,000 house or $350,000 duplex you know to a million dollar multifamily commercial property or five million dollar property I don't think I'm ready yet for that so how do those guys deal with markets like the one we're dealing with you know I mean obviously markets are local but how do you deal with those folks what this is a great question and we should do an article on this like what do the amateurs the what are the mistakes that people are making number one waiting on the sidelines is a mistake okay you're not gonna there I have bought deals in the probably you guys probably don't remember this the credit the credit the savings and loans debacle back in 1995 about product then I bought product in San Diego California when you halls were leaving the state of California and weren't coming back yet nobody wanted to buy anything in California you couldn't get a loan on a deal in California about Tucson Arizona when it was in like pita nobody wanted to go there because a crime and literature problems and vacancy like you want to be in markets when people don't want to be in them and it takes a lot of courage to do that ok number two mistake people are buying too small third mistake the single door is a mistake no one in America should own a home stop it's a dumbest it's it's as dumb as putting money in a retirement account okay a single door the single door single family residence was built for banks it was not built for people the banks needed a loan product they sat around in a room and said hey do what we got to get some money going bro what can we do let's give people a place to live what should we call it let's call it the American Dream well I'm up for three years bury them in the house okay this would be good for taxes tax bases we'll get our congressmen to support it and that's what happened man a couple hundred million people sunk down on to 1/2 10th Street and they can't move the rest of their lives I mean how many how often would you guys sometimes you're in Denver you're like dude I want to get out of Denver I want to go to some of these other markets I wish I could be in Houston right now or I wish I could float and move to to Phoenix at this time you know wouldn't you have liked it been buying Scottsdale and Phoenix six or seven years ago so I go and buy any product there if you're a real estate guy and you're in New York City and you got six seven eight hundred thousand dollars to equity sitting in your home and you're in Jersey New York the borough's anywhere around there you're in Philadelphia Boston you got 800 900 a million dollars of equity in your home dude sell that house get that million move it to some other spot in the country earn 6% on your money get you some flow coming in what for appreciation to carry that million that'll buy three million right wait for it to be worth six million that's what we look for I'm looking for doubles in this market right now yeah let's go so I write in iron five or six or seven or eight percent I've heard you talk about this before and III agree on half of me agrees like you know buying a house might not be the smartest financial decision and maybe it's flat-out stupid in most cases right that said there are what would you a mean we'll have a little old-fashioned debate here I would argue that there are better reasons to buy a house than money rights things like security of kids in school things like that like you know hey I tenant is landlords not gonna make me move honey you don't need a home to have security and good schools this is true this is true by the way Europe I mean the percentage of a home ownership in Europe is considerably lower than it is here in the United States and that's where we're going we're going out we're going to the European model yeah okay and by the way we're not just going there because of finances we're going there because 75 million Millennials watched their parents get whacked yeah okay they got whacked because because what happened was the whole mythology of the house with the band-aid or whatever you call it was ripped off in this last cycle where people realized dude I didn't my equities gone by the way what is equity far anyway what is money far money is to be used not saved put in a hole in the ground in an address you can't access money the purpose of money is to use it right so what why do I need one address today you're not even at home dude you're written where you can't the internet don't even work good for you that's true like if I had my I can afford a home look I could go buy ten million dollar house I don't miss the money today I'm not bragging I'm just telling you that's the position I'm in I still would prefer to live in a different place like every ten or twelve months let's look at the renter the renter at twelve hundred bucks a month what does he get safety security okay friends built-in social amenities a swimming pool man 1,200 bucks a month you can't get a swimming pool somebody to mow your grass you get to play volleyball for free you get to work out for free you get to be in the pool for free by the way we're thinking about we're gonna start charging for pool access nice I'm coming up somebody cleans that pool for them right so there's so many advantages these 75 million Millennials are saying hey wait a minute man this is a good deal over here two blocks from Whole Foods okay I'm in a neighborhood with a the the average homeowners at eight hundred grand their renters at fourteen hundred 1200 1400 1500 with the ability to go to 2,000 like they are in Denver right now so that's all would say look to you're going to little you're waiting too long you're reading appeal I the purchase you're reading the the trailing 12 or the purchase and loss statement and there's it's filled with lies okay and exaggerations I'm looking at six I look at an apartment complex the other day and they just flat-out left out left out over that vacancy nothing repairs nothing management nothing just like oops we forgot to include that in the pro forma like like it doesn't make sense how you can get like how bro can get away with that but there's like yeah you know those brokers should all be fired licenses I mean that stuff ridiculous one thing that we're seeing we've seen it done to us is that what they'll do before they sell a product is the the three months to four months when they start marketing the product they'll they'll start reducing the salaries there start dropping a guy out or a half a person on the property so that's why you need to know your metrics you need to know your basics and goes back hey look it's gonna cost twelve hundred bucks a year to operate a deal with two hundred units it's gonna cost twelve hundred bucks in salaries if you see nine hundred you should be going ding ding ding ding makes sense because you're gonna get in there and want to operate it right and all sudden you're gonna see what you thought was a six or seven turn into a four yeah so okay I want to talk a little bit about the syndication stuff we're putting money into somebody else's fun I mean you have a fun and a lot of people have funds now that are you know the guys that are out there getting these big deals so I had a conversation actually with captain Ryan is he there has yeah yeah Ryan hi sorry Ron yeah yeah Ryan and I talked I don't apply a year ago we had kind of a debate about this topic about putting money into somebody else's deal yeah and I've never done that all everything I've done has been my own stuff so here here's my argument I want to know what your thoughts are on this like if I don't have a lot of money to begin with if I have a hundred grand right and I give it to an AI I may be 200 grand a hundred let's say undergrad all right I give it to a guy like you I mean I'm gonna get you know I don't know anywhere between six ten twelve fifteen you know how good the deal is over time you know I'm I'm not gonna turn my hundred into a million right but if I do the deal myself maybe I can take that hundred and turn it to three four hundred thousand right so that's my reasoning to guess it is am I thinking wrong or what are your thoughts on that like why should somebody put money with you well my girl deals you can do deals with me that you can't you can't do by yourself okay you there's so many reasons why you'd want to do this deal with me okay first of all I would expect let's say let's just take a time horizon of 10 years I would expect your 200 to be worth 365 on the way out after all fees that would be my minimum target for your money 6 to 10% 15% a year somewhere in that range over time okay now I think I exceed the 365 I doubled your money you can't get that at the bank you can't get into retirement account and I don't know that you're getting that in deals if you're getting it in deals it's because you're doing a lot of work okay that means for the only way you could turn 200 into a million dollars you'd have to turn that deal three times that means you had to go out and buy three different deals 10:31 three different times to lawyers three different times okay find deals three different times I'm not doing that okay also I'm gonna tell you I had a buddy of mine give me 300 grand he makes this guy makes a lot of money but he makes more money every year on salary than I do he gave me three hundred grains let me try one of your deals I gave him nine hundred thousand dollars back he could buy his own deals he's got plenty of dough give me 300 grand he could have put three million in he just he just tested it out a little bit right I gave him nine hundred grand back 18 months later Wow how can I do that how can I do that first of all he got paid every single month he didn't have to pick the deal he didn't have to find the deal he didn't have to spend time with me looking at 45 deals that we didn't buy he wasn't on the loan if the loan went bad he walks away okay he rode his money on top of my money which was significantly more than his he's like grant just pay attention to your money he put in three hundred he gets nine hundred back okay it was a triple best investment he's ever made and the point I'm making could he even find that deal could he get access to that deal is he in the game for that deal the last thing that makes the difference is never the fund and never the terms it is the deal you need a deal guy whoever you invest with you need to make sure they have a picker a picker you know you need a magical picker you need a Tom Brady that can pick you know and picking right picking the right receiver at the right time means you got to say no to three guys see people miss the discipline part man you need tremendous discipline particularly in this market right now if you want to make money in real estate right now you need a lot of deals a lot of money a lot of choices a lot of connections different markets you need to be able to well be willing to move around the United States and then and you need somebody that can pull the trigger yeah all right so this is great and and obviously you know you need real money to be able to invest in deals like that so our last show with you again one of one of our listeners favorite shows motivating exciting this shows a little bit of a different tone this show where we're you know there's a lot of caution there's a lot of like hey you know you got a you got to slow your roll you got to be super careful we're in a really different place how do we how do we get those folks motivated because I don't just want to motivate just for the sake of motivating yeah there's a lot of people out there who are looking for opportunity they're looking for folks like us here are bigger pockets folks like you grant to be able to say hey listen don't just stop right because if I if I'm just getting started and I hear the first half of the show I'm like oh geez man I mean like I meant as well just quit then you know why play the blooper roll first yeah I got a bunch of innovation let me let me you guys want to get motivated let's get motivated okay I'm gonna tell you something Bitcoin gold houses stop market income producing real estate there's only one of those five you want to hold for ten years bitcoin no coin dude I want I want something real why do I want multiple doors I want to be paid every month okay I don't care if they go down tomorrow it doesn't matter to me sooner or later they're coming back why because they produce income this is the most exciting time I have ever been in real estate there is a shortage of multifamily affordable income property in America folks San Diego's got a shortage Los Angeles has got a shortage New York City Portland Seattle Denver Phoenix Miami Orlando Tampa Atlanta right locations avoid the cranes this is the time dude if you can grab it now you cannot build thousand dollar-a-month rents anywhere in America today the concrete the steel the drywall and the labor cost too much to build it man you just got to change the way you think here's the other good news the people in your market don't change your market it's new people coming into town okay it's Wyatt Earth comes to town do you new talent new money changes markets so now now that being said bro you've got to be willing to be nimble okay I guarantee you my real estate is going to be around long than Facebook my real estates gonna be around longer than Twitter okay a crypto crash I don't want my money in cash my real estate will be around 30 years after I died there is no app no technology no Airbnb that can get rid of $1,100 a month rents there will be $3,000 in 30 years yep yeah that makes sense I'm paying down debt I'm paying down dad you don't get that in crypto you want a million dollars for the freaking Bitcoin who's gonna buy a million dollars for the Bitcoin today sack you better have a hundred million to five million you better have at least a hundred million and no hammer I'm a waste a million on this yeah because you're not buying Bitcoin in a quarter anymore right so who's gonna buy who's gonna buy a million dollars for the gold today and let it sit in the ground I don't want to do that I need income 99% of your audience and these frickin flows second flows yep so what is not 12 percent or 14 or 15 it's still six or seven or eight which is 20 times the bank on a currency that's depreciating we know we know the cash is going down in value and we know over time as long as they've got enough time I'm paying to wait are you guys excited good good you should have an erection with like follow-up we had a guy we interviewed yesterday Kevin Bop on the podcast the guy does well but he does Malone Park mobile homes parks buys multifamily mobile home park okay but this guy was buying properties at 65 cents this is before the mobile before the multi-families yeah cheap you know six or seven and so on and so forth he was buying at 65 cents on the dollar yeah and the market tanked right the market tanked this guy was buying stuff dirt cheap at 65 cents on the dollar yeah market tanked rents started to drop he wasn't making income anymore he was upside down now he he's in a lot of trouble so you can hold through if you've got the resources right if you've got the cash if you've got reserves in order to deal with a situation like that but a lot of folks aren't in that position right they don't have hordes and hordes of capital so what are those guys do in order to kind of cover their backsides you know can you still buy at sixty-five cents well if the market tanks forty percent you're in a lot of trouble right your your boy yesterday KB that's gonna be BC before cards down beat by cards own but we are bankrupt bankroll well look at the guy made some mistakes sure uuuugh we got I got four thousand units that we reserve we have a million dollars Reserve every year just for rehab so so in ten years I'll have twelve million dollars sitting in a rehab account if I never use any of it like you've got a plan on roofs and you got a plan on paint again why you probably should partner with somebody and scale out when you have four units or eight units or sixteen units and you put away $200 a unit you got three thousand dollars dude one storm wipes you out yeah yeah earn army hits Florida we lose $70,000 for the landscaping okay I don't even feel it I like nothing happened to me I'm like so grateful praying to Allah Jesus maha get them all holla holla thank you my army thank you cuz I met her Norma Watson she was an angry so so look you guys need time and with time you need reserves that's the other thing I would tell you is this this is my fifth business okay my first for businesses fund the fifth business all the money that I make from the first for first of all I don't spend a lot of money I'm a real estate guy I don't spend money up so and look I got a nice car I got a nice car I leased that car I ripped the car so that I can throw it away into you say come pick it up I don't want it I'm tired of white on white black is the new white and I'm going black again so so the point is you know that nude made some mistakes bro and hey maybe I'll make some mistakes I have made a lot of mistakes in real estate in 30 years the one mistake I have never made probably three mistakes I've never made never lost money never lost a deal never give anything back yeah because they produced income and as long as they produce income he should have done a trailing 12 under the worst case scenario that we use is the question I'm asking you now right that's exactly where I'm trying to go so how does how did all these the hundreds of thousands of people who were sitting there listening to you rip on kb saying he did everything wrong well what could he have done right he didn't do everything wrong he didn't go back to a break-even what's my worst-case scenario how bad could things get okay clearly he bought he bought in it in a market place where the rents could fluctuate that much they shouldn't fluctuate that much he should have been in a tighter market probably why you don't want to be in the mobile home space why you don't want to do Section eight and definitely why you don't want to do the high end of the market again why you need to know your market in 2008 what markets did not collapse why did all my buddies lose everything and I didn't lose anything why did banks go underwater and I didn't because I was in markets that were restricted like you could not like the rents could only drop so much yeah in fact if there was one thing that would benefit my real estate right now it would be a contraction I wouldn't mind going back to 6% you know unemployment what does somebody need to do I mean you had talked about looking for markets where those rents are right in red in that mid level right what what else can people do to identify those markets where the chance of contraction on rents is minimized the cost to build becomes a barrier okay you need barriers to entry okay this is no offense it's not intended to be offensive to anybody if you look for alternative lifestyle markets gay and lesbian markets are great markets they're very restricted to jump to any anything that restrict voting end to be restrictive to an environment right look look at in any place in Montrose Houston Texas Montrose is a is typically a gay neighborhood I don't think I can I say gay yes you said it like four times okay okay they just protect one another it's it's you know like it's just a tight little market yeah so so if you go to Los Angeles if you go to Los Angeles in and and what are the Russian type people and they're not Russian but they call them such question but there are you talking about West Hollywood no no Armenians Armenians if you go to a Glendale Glendale the Armenians dude if you're not mean Ian you're not mean Ian and you own all that freakin stuff in Glendale you're getting so rich it's unbelievable okay go to West Hollywood Hollywood West Hollywood is a gay gay neighborhood okay absolutely none that matters to me right like like I'm just having fun and everything whatever their lifestyle doesn't matter to make sure I just need three times rent no criminal record yep okay and don't beat up your wife or your boy on my property on the street I mean I need sixty five percent debt debt coverage I don't want to be in the 80s I mean I'd go there but it did you know I want long-term debt I want great markets I want Whole Foods in my backyard I want Starbucks close to me I don't want to see cranes in the air this is what I want I want it I want it to feel good I'd like it to be in a warm climate they're going I'm gonna be good bro I'm gonna be good so the cranes for you is edition of supply you don't want that edition of supply cranes in the air beware yeah I was driving around gem I was in Denver with it to know there's it's like the second most cranes in the country it took me 45 minutes to get a half a mile to try to get to Starbucks because there was so much instruction every road was shut down and new stuff going up everywhere oh yeah yeah drove me nuts oh yeah stay away from that yeah right well let me just tell you so the crypto currencies there's a thousand crypto currencies now you know you're not buying Bitcoin ten year eight years ago okay you're buying there's a thousand Kryptos that's what concerns me about the crypto right what concerns me about gold I got to dig it out of the ground to put it back in the ground and I don't know anybody has ever traded a gold coin for anything so so like I know a lot of people didn't have to need a place to live every day there's no money to be made in single-family homes so I don't have any interest there right I don't know how to make money in a single-family home I don't know why anybody would buy one except that your wife or your girlfriend saying we need we need we got our little do map what don't activate that though yeah the power of the wife hey Heather Heather can you come here think about what you guys are thinking about me and my wife want to build an empire we don't want a house I want to build an empire dude I want to go where I want when I want okay some boost since I want to get on my plane and get the hell out of here okay if you had a house in Miami two weeks ago you didn't want to be here me and my wife got on our plane put our kids looked at property Charleston Houston went to Los Angeles spent two weeks there this should be the goal that people have the ability to move that's freedom mobility is freedom right you know these these NFL ballplayers some of them stand some of Neill some of them don't go out some of them lock arms do that's freedom you should be able to do what you want in this country this is true was it your home we don't need to rehash the whole organ abut here's the here's the objection I have to that is that I'm just choosing no no no no I like today I like this I actually wrote a blog post long time ago I doubt you ever ran across the road owners wrong yeah it was called Greg cardona's wrong here's why I got a plate up so that my premise was you know like if the goal of your life is to get as rich as possible or to build an empire it makes perfect sense if the goal of your life is to grow old in the same house with your kids for 40 which is not and that's not my goal but that's let's go like that's like that's like 16 your guts that's sure they will hey they're coming back they're 30 they won't like you between 16 and probably 20 they're not gonna even freaking they don't want to talk to you dude grow old in the same address dude I want to hold in Greece and then I want to grow old in Russia and then I want to go to Switzerland grow and then I want to go to Iceland I want to move I want mobility by the way I don't want to be as rich as possible I want to be as free as possible and it just so happens on this planet it takes freaking paper okay takes money credit debit cards American Express cash it takes money to move around right so I know everybody wants that lifestyle they just given up on it until somebody says hey dude let's be free let's don't do what our moms and dads did yeah and they're doing that I mean that's that's the 4-hour workweek fairest right I mean as much as I think a lot of what's in there is you know nonsense I mean that mindset that mentality of let's not wait till were 65 to get out and enjoy our life with the the the young folks today I mean they're eating that up and I love it I mean it's yeah it's brilliant now Josh Barden RV recently and he's now like the RV guy on RV man I got freedom I could go wherever the hell I want man getting my bus you got press that's it that's exactly right and and you just hadn't gotten rid of your house you ought to dump the house now yeah I would take that six hundred and fifty thousand you got in your house I'd go by two and a half million dollar deal I let that pay itself down over the next thirty years we'd rent why don't you you fly out to Denver yeah you sit down with my wife and I for you convince her of your argument and I'll do it in a heartbeat I'm all about I need listen when when when I was in my 20s actually you know I live down twelve thousand bucks a year and had a great life living in a condo in West Hollywood that I had paid $250,000 for I didn't you know like I I don't need all the BS like you talked about I don't need it I don't give a damn about it right like for me life is about experiences yeah exactly now that said it's hard when you're raising three kids I got three little girls right so yeah you know you need an environment that suits your spouse in my case I'm not the boss I gotta say no matter I got no say in the matter I would love to take go live in a nice you know three-bedroom four bedroom condo somewhere that I'm running out or own whatever it is yeah and be able to move around have one in New York have one in LA have one in Denver but guess what the American Dream of old still exists within society and folks like my wife folks like Brandon's wife folk you know they're out there and they're saying hey we want to be stable we want to sit around I would love to move every year that would that would make me happier than anything else cuz I get I get itchy sitting around in one place yeah and and I'm with you man and and and you know like this is just a dream I started having years ago I'm like why am I stuck in one address this wasn't my idea it was my parents idea buy a house all I saw was people dying in their house and you know what would happen as soon as the mom or dad died in the house the kids sold the house yep nobody wanted it yeah weird you saying we're gonna have in the next 30 years you're gonna see the housing market in America crumble you're gonna see half of the population we've got 80 million baby boomers that represent the mass ownership of America start to die off they're gonna be going to senior homes they're not gonna need their homes anymore what are their kids gonna do sell the houses well good I don't want it yep they're gonna abandon these houses okay where are all these people gonna move to they don't want living there mommy's house right you know you're gonna see all that stock show up on the marketplace and it's gonna take the value of that three three-bedroom house brick house nine-foot ceilings this now there's now decayed Innova time roofs going bad paint book going bad you know toilets going bad you're just gonna see those go down in value man and you're gonna see this the value is gonna shift to a new way of living yeah yeah all that no I know we got it we got to get moving on but I want to if that happen i say it's us together the trio the trio so let's say let's say that happens house the prices start to crumble because there's like so many more few people want to own them right so that jobs a price that makes rent cheaper most likely as well because there's a whole lot of or just does it know this it doesn't that make your rents down no why would it make my rent go down um I guess I'm just thinking a lot a lot more rentals on the market Whole Foods with two acre park and a swimming pool in a gym you don't have your mama ain't got this your mama's got a longest got to be mowed windows that have to be fixed a roof that's going bad a kitchen this old that makes me feel like I'm still in my mama's house how did that make you feel man was it was it was it oppressive I mean I I get warm feelings in my mama's house trapped I guess I felt that to my parents I left as soon as I could so I get it I get it I think it's a it's an interesting take because most people look at home ownership as it it's like the quintessential goal of life as to my house and the banks that was for the banks it wasn't for the people irrelevant though it's still out there right so so makes me though guys where would banks be today without a home loan oh no we're good no way they would be half as powerful as they are Street be without the key oh and the pension plan in the retirement account they convinced America to get rid of the damn money that they work for yeah well the problem is that's not going away anytime soon and as much as you or I shout from the rooftops that that's it's not gonna change you know your argument though is in twenty thirty years as all of our parents start to drop off then maybe we'll start to see a shift and the Millennials but that's I mean that's a whole generation out right I mean you're talking a generation out that we're talking to people right now that are listening to your broadcasts that are sent waking up anybody listening to you two guys are already waking up they're like hey I want a different play here I don't want to do what my mom and dad did I don't want your just a job they're looking for opportunities right people are waking up right now to what your mom and dad did didn't work right put money in a bank they turn into digits you can't get access to it it's a ripoff you send money to your retirement account you can't get to for 30 years you ignore and abandoned the money and some key oh you can't get it can't use it Wall Street's got it you put money in stocks that go down in value the S&P is that the highest levels in 20 years and steel steel cannot outperform commercial real estate I'm convinced I'm gonna become a real estate investor do it man Freddie God do it before we do we need to shift gears here and head over to our fire round it's time [Music] all right these questions come to rekt out of the BiggerPockets forums we're gonna fire them at you grants number one let's see number one where should I where should I purchase my first commercial multi-family what location would you recommend you need to know your market number one KN o W know your market you need to know down to the to the pieces of the neighborhood to like I'm talking about hundreds of feet of a block not the whole block hundreds of feet know your market know the rents there know the occupancy there know the expenses there know how a P&L works know what the rent can be there know the crime there know who's gonna live there who's your ideal client there you need a KN o W which most people are not willing to do the homework there you go I guess it's great our next question lets you look at that look at that cashflow what time what types of apartment complexes weathered the Great Recession so who survived during the downturn in no.8 800 to 1200 ollar month rents I had product I had product that didn't even like we didn't even lower the rents no no it helped us like like people were consider what happened in 2008 people traded in their houses and kept their cars yeah people said hey I don't want my house anymore here's the keys but I want my Visa card yeah they went from from 5000 square feet to two inches it's gonna happen again - yeah absolutely next question um you know because the occasionally I do this in the fire this is a question for benefiting me so I'm looking at a property right now in Denver it is a nine unit property it's smaller but it's over a million so a little over a million dollars am i - so he's gonna yell which I know it's too small I guess a little bit Becker I got I got a 1031 exchange I need to buy something about a million bucks worth so she'll go for the nine unit in Denver should go for the thirty unit in Ohio should I go for the single family in Hawaii what do you think definitely a family and who you're at fine man you should get the Hawaii and I'll go and I'll stay there and we'll all be good look at this stay there as much as you want like just go there like you want to go to Hawaii go there rent a nice place not a place that doesn't have internet this is a nice Marriott it's slow internet yeah so so you know I wouldn't go to Ohio I wouldn't go I personally wouldn't go to Hawaii oh hi oh I would stay out of the Rust Belt unless you're gonna go core like around tight cities would pop you some population growth stay away from all that I would also tell you maybe to start looking around I looking how long do you have with your million dollars yeah like 40 days from now to identify yeah so I gotta find something in the next it's a tough it is it's tough that's that's a whole nother thing that we could talk about that well 1031 law yeah I like it if I can avoid paying all my taxes yeah but I mean the way the rules written there's nothing taking your money off the table at some point too so yeah you know what about a deal man I'd agree I agree definitely haunts me day and night until my forty days are up until I got it so hey guys yeah I think it's uh that's kind of my choices do I go so I go big in temper of units do I go medium and buy more expensive units or do I do small nice do you do a variation how much cash you have a couple hundred thousand I think I got out three 350 to put into something yeah good once you take the 350 raise another 650 you'd be a third you'd be a third of the equity you can go do a deal for three million it's not a bad idea again what I said earlier is people make one mistake that people make is a my own budgets you should not buy real estate on a budget yeah I like it I like it you open the door I gotta ask the question man I mean like to me grace you got to their investment this the timing the 1031 guy like West Hollywood and ended up being married to like switch back over [Laughter] I just experimented for a while then mate you can't identify just the voices don't like people no that was Josh dork and talky and that wasn't bright internet just so just so we're all on the same page Hey so the 10:31 alright I mean the 10:31 is is brilliant it works great for real estate investors the problem is the pressure that that 1031 creates with that constraint time period is absurd now my question this is something that's that's bugged me and and every time I have a friend who's suffering through I gotta buy a property because of the freakin 1031 thing and they're all about to chase crappy deals because they got this pressure of pushing them and like we've got to either do something about this 1031 like expand the timeline we got yourself is there any chance I'm assuming that you've you've looked into this a little more than I have is there any chance to get that shifted push changed anything like that that 1031 timeline well I'm gonna say something I probably shouldn't say number one there's off the record okay just us just us two hundred thousand the only date you really need to worry about is the six months so if you can read between the lines and figure the rest out the six months is is your your concern yeah interesting so when you look for an accommodator find somebody accommodating this is some yoda stuff here but the other thing look you know as long as they keep that law in place it's a great law it's just the 60 the 45 days it's just stupid it's just some regulation so I've done I don't know eight or ten ten thirty ones they're brutal they're they're nerve-racking because you got this this other thing on unit right so the only way to avoid them is to plan your sale after you with that in mind but then when you're selling your deal and they know you're getting a 1031 you're also in a burnable position because now they can retrain oh and you got to move yeah it's just a tricky game again that's why amateurs in this game it's fine to start an amateur do not stay an amateur in this game like any game all games reward the professionals and spank the amateurs yeah what's I like that I like that it's great all right you know I'm not even gonna ask my last question so we're shifting over to the booze talking about spanking and I'm just like let's get all right we're gonna close this thing up with the world-famous famous all right these for quite we got some cool sound effects they go there come on all right these are the four same questions we ask every guest every week we've asked you them before back when you're on the show back in what 108 I think number 108 years ago yeah we're gonna ask you now maybe it's changed other than your own do you have a favorite well where to start I don't think you've written a real estate book yet unless I'm wrong but do you have a favorite real estate related book no I know unless you guys wrote one all right we're gonna call it the ones that we wrote so it's real estate books are the best in the business man thank you for that I've never read any book any real estate book all right no but but now a thousand a thousand piell's and I actually think that's a really good answer right there right so many people read a thousand real estate books they never a single PNL or look at a property so I think that's telling all right now non non non cardoon authored business books non Cardone business book good book called the problems at work great book non Cardona business books look man I like all the old stuff - I like the what was that rich dude the richest guy in the world is just man in Babylon grape oh yeah I love that I love that because you see again all that supports what I'm talking about yeah it's good but I like the Bible man look up the Bible look up anything the Bible talks about money I was reading this thing this morning to my staff about you know the master they gave the three guys some dough he gave one got five tablets another got three tablets or two tablets and one got one tablet they bury and the one guy I've two went out and made five more the guy gave two two made two more and a guy that he gave one to because if his abilities were less put it in the ground yep and the only guy that got rewarded was the guy that put the five to work and turn it into five more two guy that got one he's like dude you're an idiot [Laughter] hey pastor Brandon I never shared that stuff no I'm not a pastor I'm a youth volunteer it's very different okay okay alright man so what are you doing these days for fun because I mean I know you do real estate for fun what are you doing for fun man dude I like the golf game okay I like slap and whitey around dude I like adventures you know I like adventures I like traveling and new places meeting new people I've been helping a lot I helped with Erma I helped with Harvey we're doing something for Mexico and Puerto Rico that is always fun for me it's a big adventure you know giving back as an adventure for me it's not work it's fun dude it's exciting I like adventures you know I like possibility I like getting my hands dirty yeah what was what was the coolest thing you've done in the last two years just you know what thing one thing that stands out to you in your life in the last two years I spoke to 40,000 people in las vegas recently I need I need I need something that somebody else didn't answer for you that's impressive by the way I don't think about the past much right like I'm on to the now I'm always on to the next thing yeah all right when you spoke to 40,000 people my my eight-year-old got in front of 400 and sang the national anthem for you bro my god amazing mind-blowing I need to now get her in front of a stadium so anyone listening if you could get me in front of a stadium I want my little girl to stand up and sing the national anthem in front of three forty thousand people in your daughter to Vegas for the 10x growth conference in a room and another twenty thousand people online I'll have her singing the national anthem there I love that I'm moving on last question for me for the day grant what do you think separates successful people from all those who give up fail or just never get started what's the thing that sets like if you had to pick one thing that really separates people one word 10x do-do-do-do doing this doing this I just I do more than most people I look at more deals than most people or write more deals than most people I look at more pls and most most people you know you know I wrote five books before one hit yeah I spoke I spoke for three years before I figured out what my message was so you know I bought a lot of real estate I shouldn't have bought I shot I bought the first unit about the 38 I mean I made money on that 38 units I made a lot of money on that 38 units but I shouldn't have bought that I should have skipped I should have found somebody early on to partner with I should have found a guy baller they had a lot of dough a lot of access a lot of guts and scaled out I'd be at 25,000 units I'm gonna go to 40,000 units this is you ask me what I'm excited about or what I've done that I'm excited about I'm going from 4,000 to 40,000 units I'm gonna figure out how to get there let's say I'll take it and sell sell the whole portfolio to to some of these idiots on Wall Street that's nice hello Cardone I got a question for you and I say that with love that's not a you know disrespectful Cardone respectful what's that it was a little disrespectful mr. kargh young sir grant you started as a kid right back when you were a kid I understand that like I mean you were you were a bit of a screw-up right yeah yeah what and today we're talking about you doing 40,000 properties before you're done that's where you're going yeah I just want people to hear that because I I think people hear this show they hear you talk and they think this is a guy who's with millions of dollars who was given everything you started on your own you built this up from nothing correct dude 25 years old yep I had no money none I didn't have a quarter I had more money when I was 8 so you know it's a shame my 6 year you know you kids kids end up with more money than they the more schooling I got the less money I had I'm like something wrong with this deal man 25 years old I wouldn't just financially broke I was spiritually broke physically broke I had zero self I was bankrupt in self-esteem I had no confidence couldn't talk to people so look if I can do this this thing's real okay yeah but but I'm just I'm just trying to share with people the mistakes I've made you know I went little because I was taught to go little I was taught oh do it in baby steps I wondered about real estate my mom said that's a bad idea I said how much real estate do mom I don't own it well maybe you need to stay out of that part of the advice given I mean at this point I'll you everything you've told me you told me don't talk to strangers no you told me you you're the one who taught me into the damn college thing now I got a bunch of debt you said don't masturbate I didn't listen you know don't you said don't talk to strangers now I can't talk to anybody like like what do I do you tell me not to talk to strangers and don't jerk off just because they're your parents and just because they love you doesn't mean all the advice they give you is good yeah she told me not to go into real estate told me not to do it dude it's been the best thing I've done in my life yeah well that's what I wanted people here because mahad's for us Craig tell me he's like you know it's your 250th show this is gonna be our 250th show by the way for your 250th show you got to have Cardone whoo at 25 had nothing and talking to him I don't know how many years later I'm not going to aid you and offend you again because I called your car down and that pissed you the hell huh but I'm not gonna do it again and you know see what you've become and see to what you've done with yourself and and if you can do it and I'm not saying this as an insult but if you can do it anyone can do it so get out there I will tell you this you know I thought I was going to be a professional ball player that was my dream and then I just didn't had the body for it my body wasn't strong enough and I probably didn't have the discipline definitely didn't have the mentorship and then I kind of just like God all distracted because I didn't have a dad and maybe it'd have been different if I had a dad and then but you know the reality is meant everybody that's watching you have a better chance of building a real becoming famous like rich in real estate then you have of any other career yeah okay the chances you creating an app it's or becoming the Facebook guy or NBA ballplayer or you know being discovered on American Idol the chances are so remote the chances of get creating financial freedom in income producing properties you don't have to go back to school you don't have to get a license you don't have to be a genius you don't even need good credit you just need you need some frickin courage you need some knowledge you need a little bit of dough and you need not it's great awesome man well we'll leave it at that awesome man appreciate you guys all right thank you where can people find more about your Grammy where people connect with you you card oh capital all about Cardone capital kaam karte own capital comic rep we only take it accredited investors okay we did two funds last year we went to a hundred over a hundred percent subscribed we had to actually return people's money our average investors doing four hundred fifty thousand bucks right now we have a fund that's gonna be open we'll probably close in the next thirty days a forty million dollar fund it'll do 160 million bucks and deals so I'm gonna raise I'm gonna raise the billion dollars in cash over the next three years in cash it's impressive and uh and let me just tell you the ride for the investors is going to be unbelievable because my store unlike syndicators my game is not to feed these deals to death my deal my deal is to scale out my portfolio and take it to Wall Street and give Blackstone or Goldman their little present all wrapped up which they'll pay a premium for so that score here it's not to make a fee on the deals even though we get a fee to manage deals by deals etc but but again you got to pick the right product and I got a long play here to go back to Blackstone or one of those groups six or seven eight years out they want to buy revenue they want to buy the revenue they want to buy a scale they have big big giant problems they have billion-dollar problems they're not interested in fifty million dollar purchases they're interested in four billion dollar purchases for sure hey listen it's been a pleasure man then I'll as always be good okay thanks guys hey great thank you all right guys that was Grant Cardone Wow very observation there I liked her that was great thank you yes that was Cardell on Grant Cardone see I was I was gonna do something cool and then I saw his face when I dropped the co and I was like oh yeah that was good yeah I thought I I still think you know I think there are legitimate reasons to own a house and I think you know but that's alright grant can have a different opinion I thought it you know like when you're in and discuss with somebody you think of it later here would be my argument I would like to I was sitting there by the way trying to counter argue and I'm like I'm drawn blank I'm drawn blank this guy this guy is a pro arguer is he's like a it's like Muhammad Ali of the microphone and I'm just I'm gonna lose that battle so I'm gonna just kind of sit and wait till he's gone so I could smack the goal of your life I was trying to kind of get to the delivery life is to be the best violinist on the planet if that's all you wanted like to be the violinist it makes zero sense to to go after multifamily it makes zero sense to go after apartments real estate business right I think really all you should be going after is becoming the best violence on earth in other words the goal of your life is fine the goal of your life should define what you do right so like if the goal of your life is to travel like you the goal of his life is a travel to see the world do all the things then yes that's what he should do is do exactly what he's doing if the goal of your life though is to do something totally different than that then you should be doing something different and you can't judge somebody on bei what you want out of life based on what they want out of life if that makes sense there's so so I like that argument because I know that Heather is standing there staring you down waiting for you to defend the life that I Paul her and she eyeball you I could see I can't even see her but I could see it I can see it happen and you're looking with puppy-dog eyes back at her like is that good honey was that good here half the conversation though she's like she doesn't know yet why Grant said that we were listen listen I I agree with a lot of what he said and I disagree with a lot of what he said I I think single-family houses you know what he says makes a lot of sense like hey listen the future like I could definitively see Millennials not wanting to stay in their family's houses I could definitively see a situation where you know there's a glut of inventory out there for for so many reasons you know does that mean that buying single-family houses is stupid of course it doesn't mean that it's just you know his thing is apartments and and he does a great job with them and it's a great way to build wealth he has some great arguments about how properties are valued and why apartments make the most sense given that real estate does come in cycles and you know multifamily real estate when there is a housing slump is it going to be affected if your rents aren't affected right I mean valuations of these properties are determined based upon the income that they bring in so if you can create a stabilized income by buying properties at that level and have it be relatively stabilized you know well you see some decline in the value sure is your cash flow gonna drop maybe a little bit but at scale you're in a much better position than somebody who's got a single-family house whose tenants are like I can't pay for this I'm out right and they go and they look for the apartments or the condo so I mean I I think there's validity to it obviously grant is bigger than life persona and he he tends to push push the limits on on his argument and I think it's great he makes a point right there yeah was that pretty good Wow Wow 350 shows later and you're just still making me feel small you know I I make a lot of small yeah I was waiting for that too it happens yeah well I'm I'm going off of exactly three minutes of sleep last night and that's not an exaggeration we flew in on a red-eye last night to New York and so congratulations where's your private jet yeah you know I'm working on that if I could only I could be as cool as grant listen III made a snide remark about the private jet and like you and I have had that this very conversation right I mean we have about your jet yeah no but like I mean it in some cases things like that I mean make a whole hell of a lot of sense right I mean you you get on the jet and you can go fly from city to city without dealing with all the nonsense oh there's Rosie I Rosie it's a really really good business expense I would agree it is a good expense and the fuel is a very big expense but whatever it makes sense it makes money whatever all right now listen you're already checked out I can tell you're trying to get out of here and go play with your kids so my girls in here show 250 obviously complete and utter disarray I got it I gotta find a more professional co-host this is just absurd they put Rosie on my hi can you say show 250 in the books they show 250 she's smiling in grinning at the camera all right you guys let's just show 250 at the BiggerPockets podcast thank you so much for everything that you do for us and for your communities get out there make it happen and oh there it goes I'm Josh Dorkin and here's my co-host Rosie and signing off you're listening to BiggerPockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place be sure to join the millions of others who have benefited from BiggerPockets calm your home for real estate investing online
