How to Beat Inflation: Bitcoin, Gold, Real Estate - Cardone Zone 12PM EST

this give me a little mic check my check my check mic check all right we're back hey welcome back to the cardone zone grant cardone here johnny right here yeah and we're talking today about inflation your inflation you're being inflated and it's got to be deflating to your bank account to your finances to your future i'm going to tell you exactly what to do about it today i come here every monday to share with you about your money your finances your business today we're talking about inflation it's in the news it's everywhere inflation in economics uh refers to a general progressive increase in prices of goods and services in an economy when the general price levels rise each unit of currency buys fewer and fewer goods and services consequently inflation corresponds to reduction in the purchasing power of this fiat garbage cash's trash concept okay today i'm talking about gold bitcoin stocks real estate how to fight inflation johnny i don't know if they can show uh wages versus inflation but i'm going to show you right here look here's the cost of goods and services okay they're going up right now i'm going to give you a whole list commodity prices uh crude oil up 109 heating oil 106 percent gasoline up 105 this is just since the election by the way brent crude up 101 coffee 88 your wages stay right here and coffee went up 88 percent i quit drinking coffee sure could natural gas 74 cotton 71 copper 39 aluminum this is what you build homes with folks this is what you build cars with aluminum 37 corn 36 sugar 34 percent this is what your kids eat too much of wheat 30 percent lumber 15 it had spiked a year ago it had gone through the roof uh container cost up five times to ten times at the ports you're hearing about that silver's up three percent gold check this out the great hedge against inflation is down one percent the world has gone whacked ladies and gentlemen okay it is in wacka dola uh territory in 1913 let me explain to you in 1913 the real thing because we're going to take stocks today crypto real estate and gold and i'm going to explain to you how to handle uh inflation in 1913 one dollar one dollar one dollar okay johnny help me out here how many hershey bars do you think i could buy in 1913 with one dollar not one hundred dollars one dollar with one dollar 30 hershey bars and they were bigger than they are today uh mars the mars family in the hershey family those were two of the wealthiest families in the world if you guys uh you should go research the whole titanic thing where the mars guy was going jp morgan was going there they canceled their trip y'all know about all that dude the titanic the titanic meeting when when the titanic um like it's a crazy story all these super wealthy people people think the titanic was a bunch of poor people you know going out on the titanic dude like that poor people go on cruises now back in the day the only people that went on cruises were the super rich so you should check out who drowned on the titanic and what was going on they were trying to get rid of the federal reserve and the guy all these guys were showing up on the titanic to celebrate this new ship and to meet about the federal reserve and the only guys that didn't get on the boat to cancel at the last minute because they were sick were the guys that were far the federal reserve and the guys that went down were against it it's a whole big conspiracy anyway inflation okay in 1929 15 could buy 10 rolls of toilet paper 15 that seems expensive doesn't it yeah dang 1933 you could buy 10 bottles of beer for 20 bucks that seems expensive man something wrong with this okay okay all right uh it's saying the purchasing power basically of of of a dollar today would take 19 back then it's 20 times check this out let me see what you got man okay look these are wages okay americans paychecks are bigger than 40 years ago but the purchasing power is hardly budged this is what if you come back to mind my little graphic here johnny i got a graphic too okay okay so this is this is the cost of goods they're exploding uh the cost of housing okay uh i got a friend right now they they had a house they couldn't sell last year for 150 000. now somebody wants to give them 300 grand that's that's the the example of inflation okay things all of suddenly go up in value and nothing really changed okay wages have stayed pretty much flat for the last if i just go johnny i don't know how far your wages wage graph for last uh for 25 years let's see what this looks like in real time is that what you had johnny right there let me just see what you got johnny see oh johnny you put americans paychecks are bigger than 40 years ago but their purchasing power is hardly budged constant 2018 and current dollars you remember how we were fighting for minimum wage recently once we got the minimum wage i think they went to 15 almost everywhere notice what happened right after the minimum wage price inflation okay long-term wages in the united states of america if you can open this chart up a month 50 years of wages show mine johnny oh my gosh always having technical problems here okay in 1973 okay if you adjust for wage increase in 1973 wages in america we're about 23 dollars let me see how this is reading 23.24 cents real hourly wages adjusted to 2019 okay you understand that you weren't really being paid 23 dollars back then but if you adjust for the dollar value today it was 23 today 23 19. that's 50 years folks now i have talked about this wages being flat as an inflation for a long time and nobody paid attention to me until all of a sudden prices started getting jacked the other thing that you guys have not paid attention to is this chart right here okay interest rates in america now i'm going to give you for all you compound interest freaks out the compound interest is the eighth bureau called the world okay let me explain to you that they rip you off of the eighth miracle of the world this is something compound interest if god had anything to do with anything compound interest was super cool thing he did when i was growing up if you earn 7 i'm sorry 10 on your money your money doubled every 7 years that's called compound interest rule of 72. if you could earn 10 points on your money and it was compounded every year that means you you kept the money in it and then that earned 10 and you kept the money in it and the third year earned 10 on top the first two years your money would double every seven years is called the rule of 72. i want to show you guys what inflation looks like at your bank okay johnny can you open this up now this is today lending club alliant discover if you this is a savings account right here i have it open for a savings account if you save 2500 with them that's the minimum you will earn point six tenths of one percent on your money at the credit union if you're a member there at .55 and discover bank online savings point 40 okay that's as high as it gets by the way this is as good as this [ __ ] gets cash management so far sofi wealthfront i don't even know who these banks are y'all ever heard of these places point 25 and .1 over wealth front what a nice name for a bank wealth front we're a front for wealth basically we're [ __ ] robbing you of your wealth 0.1 now just to put that into context though for everybody here uh let me explain to you what one percent earns on your money okay point let me see what what's that guy saying 0.1 0.1 so let me change this this is compounded annually we're going to start with a thousand dollars we're going to make no contributions and our investment timeline johnny how old are you johnny i'm 31 31 when you're 41 years old johnny you will have saved a total of to the right johnny right over here i can 11. probably at that time one hershey bar so let's yeah exactly so let's go and increase it to ten thousand we're going to start with ten thousand dollars because johnny's a high roller okay and we will earn 101. in 10 years okay okay now watch let's say let's say this is why people are quitting on the money game that's why people are quitting on the money game man it's like god dang dude man i can't if i save it i get nothing so what do i have to do now i have to invest because you're being inflated on right the bank is basically robbing you so you can't earn any money here your wages are flat and now things that cost a good so what do you do okay you only got so many choices okay do i go into stocks let's look at amazon stock because everybody wants to talk about amazon nobody was talking about it five years ago now hey amazon is the go-to card that i'm gonna play okay so you guys out there let's go ahead and pull up some amazon let's see if i got amazon in here man i thought i had all this stuff long-term views on interest no i don't want that oh man i had all this ready to go let me see amazon amazon graph stock graph i know i had this did you guys close some of my screens man no yeah you lie you lie johnny oh did i go over this by the way crude oil is up 109 heating oil is up 106 aluminum 37 goals minus 1 i thought i shared that with everybody wages wages are up 1.7 inflation's up 4.4 so you're kind of going backwards okay so okay what is the point of all this okay let's say you invested in amazon uh amazon graph stock graph uh let's see here let's let's go ahead and use this one let's see i know 3 500 okay let's see what it was 10 years ago 10 years ago in 2000 what would that be 11 10 year 10 years ago this stock was there i am 182 dollars so here's amazon 182 and it rolled to 35 hundred dollars so that's what 20 times is that right 20 yeah about 20 20 x nice little return there bang bang bang okay better than the bank if you load it up in it now the question is do you buy it now see that's the big question do you buy it now at the height the entire market is what many people say is at the top of the top of any top we've ever had okay let's go to my boy over at bitcoin the bitties the bitty witties uh let's see man i know i had these in here johnny i know i did somebody jack oh that's long-term views of wages bitcoin btc graph somebody erased my stuff nobody's touching my computer ever again let's go let's see this open up bitcoin price index live chart coin desk 30 okay 64 everybody's excited look at my chart look how strong it is okay now there have been there have been what how many pullbacks on this stock in the last let's let's go back to 20 20 there we go let's see two oh i can't even go back to beyond um 2014. this was 324 today it's 64 000 what is that 200x diggity dog i missed the ride okay i actually owned this at 500. so i've had a about i had a 50 000 at 500 it's worth five and a half million dollars today um let's see what else we got here real estate let's do gold okay let's do gold and let's see how gold's done over the same 10 years goal price graph 10 years their historic price chart let's go back 10 years there's 10 years so gold was 1750 10 years ago today it's 1860 basically dead money no it's done nothing the great hedge against inflation do you have the the the dehain the william de hain because i see this i see this ad every single day to the gold bugs it just shows you how many people are so wrong about some of these things that we see every day and how uh i want to put cash up here as well by the way because cash is just like fell off the chart uh the u.s dollar u.s dollar graph really important for you guys to take a look at this stuff so that you can see hey what what's actually happening to my money this is a 43-year historical chart on the us dollar you lost money it's a roller coaster okay now i don't know how you guys feel about this roller coaster that johnny's talking about but this is what i hate if i go back to amazon see i keep going back to my real estate keeps running me into my real estate okay so so let's just go back to our common compound interest calculator now watch what happens because folks you got to go buy you got to go buy uh stocks you got to go buy amazon the great amazon today at 3 500 it can get cut in half okay i can show you where it was thirteen hundred dollars less than two years ago when coving happened that stock was 1300 bucks that was a year and a half ago so you could buy 3 500 a day it drops to 1300 okay now what are you going to do oh my god what am i going to do most people sell out right there johnny go ahead and it could happen so fast just because everything's centered around this one guy jeff bezos he does anything wrong in the stock yeah yeah okay sixty four thousand dollar bitcoin that thing could go to that thing could go back to twenty thousand dollars it would it was thirty thousand dollars less than five months ago when i bought it i bought more of it at thirty thousand about twenty nine thousand bucks and i waited for the ride up i can wait for the ride though okay now i'm gonna keep this out of the conversation right now because there's something different about what this is doing you see that real estate doesn't do that the kind of real estate i buy gold gold has done nothing the whole time anybody is out buying gold today you got to be a whack head okay like i don't even know what you're doing this is what warren buffett says why would i buy gold i have to go dig something up take it out of the ground only to put it back in the ground again some other place to protect it it pays me nothing while i wait i can't use it you're not going to go take a gold block and go buy tickets to a travis scott uh concert probably a bad example right now cash what are you going to do with cash it just sits around and dies you guys have it in your checking account savings accounts you have it in in retirement accounts your iras what are you going to do with it also let me just say to you on some of these stocks uh let's just take the stock uh what's a good stock to take um general ge probably a bad example ford motor company ford motor company stock chart i know this chart stopped because i invested in it and and look at this okay this was a 30 stock in 1999 in 19 2001 it was a 24 stock in 2003 it was a eight dollar stock you lost four x your money if that wasn't bad enough it went down to two dollars after the crash had a big run to 16 fell apart again 10 this is what i don't want in my life five dollars look at what it did for between the year 2010 13 and 2017. for five years all it did was go down between the year 2001 and 2009 eight years for eight years all it did was go down we never get told this stuff all we ever hear is the stocks that go up in value we don't ever hear about the ones that get hammered for long periods of time this is by the way a pristine like top of the top of the food chain supposedly stock some of you're like you're not being fair man facebook look at facebook grant look at facebook okay look at facebook you guys always want to look at the stuff you didn't buy uh here's facebook okay let's go max there it goes it starts out at 27 that's when you should have bought it when it came out then it went to 19. i remember it it fell apart and went to 19 dollars somewhere in here it hit 19 there it is that's where you should have bought it not at the ipo should have bought it 19 and you should have kept it the whole damn time but notice this watch what happens 19 it goes to 133 that's 10x that took five years to get 10x i'm telling you all this to set you up for something else okay watch it's flat again it's back to the same place uh seven years later and boom then it takes this ride okay 2007 it falls or 2020 what is that is that uh covid oh covet okay covet hits facebook's probably the one that started the co-vid okay 157 bang it goes to 348 okay what is that a double okay now let me show you one other thing you could have been doing all this time this is what i've been doing because none of these none of these do one thing that real estate does do okay first of all real estate does not my real estate i cannot show you a graph on my real estate buildings when i buy can you just show them the deal i'm doing right now this is just not it's not going to go it's not going to be worth less tomorrow it's just not going to happen you're not going to have a graph there is no graph on my real estate okay the other thing that my real estate does that amazon facebook gold and bitcoin doesn't do is it doesn't replace what the banks no longer pay you and you guys got to get some combat for these banks these banks remember a thousand dollars what did we say johnny that would pay you in 10 years in 10 years let's see what it says 10 000. oh yeah yeah it's going to pay you 10 000. i'm sorry one thousand dollars is going to pay you 11 now this is a problem for everybody out there like if you if you lost your job you'd want to replace your job right if you lose your food you want to go replace your food you guys are losing the ability to compound interest here and you haven't replaced it amazon does not replace income ford motor company doesn't replace income bitcoin no crypto ethereum none of the coins were placed income okay they can go up and down they gyrate hard and they'll scare you uh what else do we do and gold does not replace income real estate however watch what it does that piece of real estate i showed you right there let's say we hit a 5 return for the next 10 years without rent increases i earned 50 on my money okay remember what i remember some of the returns on oh i raced tomorrow didn't i remember the return on bitcoin it was the biggest 200x man you can't beat 200x man okay well maybe we can maybe we can let's find out because you're not going to go take and put 200 grand in bitcoin today let's say you're down to your last 20 000 bucks or 200 000 or you're gonna put all of it in a crypto which one most of you aren't going to do that because you're not sure of it now i would take my last 200 grand and put it in the real estate deal i'm doing right now because i in fact i am putting my last money into that real estate deal because i know number one it's going to provide me with protection against any downside number two is going to protect me with cash flow if i earn 5 a year for 10 years without any rent increases impossible when you're having inflation let me show you what rents have done in the last five years rent increase graph this has been going on since 1945 by the way median rents versus median household the red line is rent the income is the blue line this 1960 to 2014 how long you want me to go johnny can you go back come back to the screen i'm sorry nathan this is 50 years of rent increases folks the red line is real median rent and the blue line is real household income indexed to 1960. the divergence between income and rent while you guys sit around a [ __ ] about it okay you complain about it that will not go away amazon will come it will leave in fact jeff bezos says there will be a day when amazon will not exist the founder of the company the guy that built the company said i will not exist this company will cease to exist in the future facebook has already changed their name to meta they're like hey we're done the facebook thing is over that's what meta is baby the next thing okay this rent index that you're seeing right here on my screen right here is the divergence between income the gap between income and rent increases okay meaning i can depend on this for 50 years to keep going up now notice what i did here if i only get a 5 return but look at this this has been let's see 100 10 20 30 40 50 60 increases so one i get the protection of my rent if it doesn't change but if rents go up 60 like they have in the last 60 years what happens now to my in to the value of my property and my cash flow let's just talk about the cash flow because you guys need cash flow to to offset what the banks aren't paying you so if these rents were paying five and now they go up 60 okay what happens to the rent here does that become another five percent another ten percent of cash flow you're like no become sixty percent of that number no actually it wouldn't because if my rents let's say my rents are 1500 bucks a month and it's pain and the property pays 5 okay let's say i got 10 units paying 1500 bucks a month and the rents go up 60 percent which they have over the last 60 years that means i get another 900 bucks a month an income if the deal is cash flowing five percent on fifteen hundred dollars and i get another nine hundred dollars this is going to be stacked on top of you understand so my rents will not go up 60 my rents will probably go up to like 12 on my income okay so i it might sound a little complicated but i'm getting bumps is what i'm doing i'm getting bumps on so let's say now i'm earning another 50 percent 50 i'm just being conservative 10 years 10 years another 10 years because the rent increases 50 50 and 50 is 100 100 of my investments back and the third thing is this the value of the property now goes up as rents go up okay and what can i do with real assets what can i do with real assets what can i do with a property that goes from 10 million it's 10 million and now it's worth 15 million because the rents went up what can i do with that i can go borrow 10 million okay because the value went up i pay off this i get my money back i own the property for zero and i still have cash flow and i got my 10 milli back and this is how you create wealth and at this point this return is into the infinite the land of infinite and it will crush bitcoin and amazon combined as a return i have seven properties that do that today seven properties i'll just show you this little thing i got this morning i might have to protect my emails here johnny uh let's see if i can show you these yeah i don't care johnny just show it to him people have been taking advantage of me for a long time okay not that not that not that not that not that let me see where is it oh there it is okay just show them these distributions this month the this is on a property that that i bought two years ago 24 grand this month here's another one 1996 little investment there little little return every month that happens here's one 11 grand uh here's uh cardone equity fund five six dollars 16.16.16.66.6 dollars sixteen dollars sixteen dollars one fifty thirty three sixty six dollars see this just keeps growing over time you guys are like sixty six dollars why are you getting checks for sixty six dollars just sixty six dollars dude sixty it's 66 more than i had last month they all add up here's another one here's another fun fun nine twelve thousand dollars here's a bunch of pigs right here fund six 37 37 18 37 18 here's one reserve in ormond 4 100 bucks here's fund seven eleven thousand dollars these are all different properties here's fund seven twenty eight grand ten grand 12 grand 13 grand 8 000 that's all one property right there here's the st lucie distribution three thousand dollars see what else i got happens every month man i don't have to do anything folks all i got to do is wait for the rents to grow as the rents grow guess what the distributions get bigger okay as the cash flow goes up so does the value of the property the reason the value of the property goes up is because the next guy can afford to pay me more money for that property if i was to choose to sell it could give me more money for that property to return or to give himself the same cash flow that the bank might pay you do we have any calls 305 865 no no yeah 305-865-8668 please if you if you're hearing me right now keep your questions to inflation what can you do to protect yourself against the inflation hobie joby all right we got dad in houston hey deb how you doing i'm good how are you sir good good is it depth kick up the sound yes sir i just have a quick question for you yes sir do you have any advice on um getting the bank trust you to get a loan and how to uh basically um you know make it easy for yourself i know you said you had a training coming up but uh even announced it just yet i just want to check on you on on that yeah so look the way to get a loan on a deal from the bank the best way to get a loan is not to worry about your credit score or your income the best way to get a loan from the bank is the deal the deal is what will determine whether you get a loan or not it is not your credit score it's not your net worth number one thing is the is your deal second thing is your net worth the way to improve your net worth by the way is through your network if i'm on your deal if you got a deal big enough and juicy enough for me and all of a sudden i'm on your deal you got no problem with the loan you you didn't need to change your credit score i changed your ability to buy that deal because my name's on it so uh the when are we doing this lab training johnny when am i doing that this saturday dang saturday guys saturday come to a training it's free it's three hours it's three hours two to three hours long completely free grantcardone.comgrantcardone.comrei completely free i'm gonna show you how to find the deal buy the deal fund the deal get investors for the deal and i'm going to show you how to do it with no money and no credit okay it's completely free no hooks no strings nothing you don't have to do anything just sign up for it register it's completely free we're not going to try to sell you anything i just want to educate you guys how you could actually find a deal right now in your city in your city make a million dollars on your first deal how many people have registered 60 000 more than 60 over 70 000. over 70 000 people have registered for this free event this saturday uh you just got to make the time to be there okay so first thing you got to find is the deal okay once you find the right deal a bank is going to say hey look on that deal let's say the deal is four million dollars you can't buy four million dollars worth of crypto today you cannot buy four million dollars worth of amazon stock i'm talking to 99.9 percent of the people watching right now you guys can't and by the way the one percent they can you ain't got the guts to do it so stop the madness you're not gonna take your last four million dollars and buy amazon stock or crypto you're not gonna do it you'd be crazy if you did it but i could actually take and buy a four million dollar property with only a million dollars down you can't buy four million dollars worth of amazon with a million dollars you can't buy four million dollars worth of bitcoin with a million dollars and you cannot buy four million dollars with a gold with a million dollars but i can buy four million dollars worth of real estate the right kind of real estate a specific kind of real estate with only a million dollars i can get a great loan on the three million dollars and i can earn probably sixty thousand dollars a year sixty thousand dollars a year on my four million dollar real estate i can get paid 60 grand a year to wait for the investment to pay off now let me just go back to this i'm going to raise this number to 1 million dollars that earns at the bank uh point let me see let me go back to checking accounts i want to go back to checking accounts here checking accounts look at what these checking accounts are paying .03 not this point one that i showed you earlier and that's going to pay you three thousand and five dollars a month this is for all you [ __ ] out there to complain about six percent yields okay let me tell you man listen to me if you can earn five or six percent of something worth four million dollars with only a million dollars your own money that's what you're earning right now you're earning three thousand dollars over ten years 10 years that's what you would earn okay in 10 years i will earn 600 000 right here if the rents don't go up and they haven't done that for the last six decades for the last six decades there is not a place on that chart where it went down 1970 they went up 1980 they went up again 1990 they went up you see that from 698 to 810 from 1990 to the year 2000 they went up another 18 dollars from nut 2000 to 2010 they went up 100 this is the median rent in america and from 2010 to somewhere around 2015 they went up to 934. if i put 2020 right here these rents will be 1100 bucks they went up another 200 bucks my average properties rent is over 16.50 we have some rents i bought a deal last a year and a half ago the rent was 2 grand when we bought it we're renewing people at 2600 a month in naples florida right now it's a 30 increase in one year uh this is from apartment lists by the way have the how have the rent changed since 1960 this is the best deal in the world folks i'm telling you apartments people talking about the kryptos and the bitcoins and the ethereums and the gold and the nfts [ __ ] all the nfts i want my cash flow i want my appreciation i want my real assets okay somebody said why aren't you doing nfts gary gary vaynerchuk he he made a million dollars on a on an nft i'm like i because bro i'm buying a billion dollars worth of real estate this month i'm sorry if i don't have the time to go chase a million dollar nft when i'm trying to buy one billion dollars worth of real estate we're doing it this month i'm gonna close on a billion dollars actually i'm exaggerating 750 million i did 200 last month okay 750 million is that right no got to take some of these off see i'm into the future that's 7.50 right i'm going to put 120 million dollars down to buy these i think that's right that is right maybe a little more i might be putting 150 down 150 okay sorry about that let me just let me let me let me get the real see they took my damn they took my let me see 7.50 i'll show you the deals actually show them to you right here i'm going to go back to my little can you show them this so they see where i'm getting this data from these are all the deals i'm looking at right now and my down payment on this is going to be i'm going to finance 538 yeah i'm financing 538 so whatever that number is 538 so that's what two one 212 million that's what i'm gonna put down the 212 million dollars i think is gonna earn six percent in year one which is going to pay me 12 million dollars a year in income a million dollars a month to me and my investors while we sit and wait for this thing to go up in value okay now at what point would i sell that property i will not sell this this accumulation of properties right here until i at least 2x that so i'd have to return the 538 to the investors give all that back we accepted our 12 million a year let's say we did this for 10 years we would make 120 million in distributions to our investors without a rent increase this is how i make a decision on every deal when i go into a deal i'm able to make big bets because i'm not worried about whether it goes up or not i know it will go up it's just when it goes up with you guys at bitcoin gold look there's validation and proof that it doesn't always go up it can fall it can fall to zero some of this stuff okay so i got 120 million dollars in cash flow here without rent increases if i get the rent increases that i've had for the last 20 years dude i could make another 50 million right here maybe a hundred million okay and that's before i sell it when i go to sell it i got to return my 538 to my investors and i want to be able to walk away with at least 538. now in the fact in the in the case of me buying a massive portfolio i know that this massive portfolio will get a premium because it is a portfolio at which point i think this thing sells for a billion five when i go to sell it meaning we would make 750. billion there's 750. i owe 538 right this is our profit is that our profit right there billion five we paid no this yeah this is what we paid is that what i paid for it no not really because i only put a hundred only put five i only put 200 and what's the number i put down 212 down i only put 212 down see so i don't make that i make 1.5 less than 212. there's 1.3 billion dollars okay i got to pay my 538 back i owe the bank and so what we would do in this case is we would take this number we would refinance on this number pay all our investors back plus profit and we continue to get cash flow out of the property forever this is how wealth is created true wealth really wealthy people never sell anything rich people sell stuff and make money and pay taxes wealthy people what they do is they wait for the values of their assets to go up their stocks or whatever borrow against that if they can and then take their money out let's talk to our callers in houston you guys are being inflated on in houston you see now houston has to have inflation they get happy when they get oil prices of 80 bucks what's up man hi grant houston how you doing brother how you doing dude how are you uh i just i just wanted to say that i'm a big fan i'm part of the accelerator program man and uh you know i just closed on uh my very first multi-family deal it's only 17 units in houston but i'm excited that i'm following you yeah awesome but my friend thank you for calling in do you have a question or a deal yeah i i do have a question it's actually to do with what you were talking about just earlier about inflation and the question is i mean do you think the influx of all these trillions of dollars printed recently is that the only reason that real estate prices are going up i mean i know there must be all the reasons but like you know what do you think what do you feel about that well so look if you have if you have a money supply if you have the money supply and 40 you have an increase of 40 percent of money supply okay the the you had x x y z money supply whatever that number was right and then also you're like times forty percent one one point forty percent one point four percent one hundred and forty percent you got more supply you got more supply if they put more bananas in the in the in the grocery store all of a sudden you increase the banana supply at the grocery store and you didn't increase the number of people going into the grocery store you got the monkey business you got some bananas going bad so what are they going to do they're going to drop the prices on the money this is what happened this is what's happened to the value of your dollar your value your dollar is being decelerated devalued because of the supply of it okay when i get more of this i was in vegas this past weekend dude i couldn't believe how much people were bet i asked that i asked the the the pit boss i said dude have you noticed the bet bet size has gone up 100 i said why do you think that is money creation you create more of this you give more of this to people this is deflate this is inflation folks when you start spending more money on things when you start thinking less of your dollars when you start carrying them around and you're like yeah it don't matter here okay here you go there you go man here here's a tip man how many of you notice you're tipping people bigger right now yeah yeah it's only [ __ ] 20 whatever man here you go like it doesn't mean anything anymore why because there's more that's been created now that being said there's not more land being created the argument for bitcoin is there's not more bitcoin it's a limited supply gold nobody knows how much there is they've been saying there's a limit on it can you go back to that gold chart again by the way supposedly there's a there's a limit of how much gold is on the planet and then it's very difficult to make gold price graph gold hadn't done anything in 50 years man it just sits there that's nothing 12.50 to 17.50 and how many years is that that's three years sorry let's go back to the max let's max it out okay is that gold for max out 10 years let's go 10 years see 10 year 10 year cycle you want to go max it out let's go max it out okay in 1970 gold was worth 35 today it's worth 1500. uh that is just so everybody understands because when you look at you like oh my god it did good really did it that's 40 years 40 years and it's gone up how many times what is that johnny five times yes sir yeah that that's not that good no cash flow while you waited by the way can't use it can't spend it you can borrow against it maybe but nobody ever does i don't know where you keep it keeping us safe in your house with your guns nobody ever spends it that's the problem with it same problem by the way with bitcoin people do not spend their bitcoin they're huddling just like i do i've never traded any bitcoin i can't get people like hey man will you take some bitcoin sure bro you want to exchange your bitcoin into my real estate i'll take your bitcoin and then they're like nah i'm just gonna i'm just gonna i'm just gonna get some cash send you some cash okay like very rarely is anybody actually ever training they're trading their crypto okay next caller all right we got wendell in charlottesville now there is a limit window of real estate in america it takes a long time to build it got to be in the right location all real estate has a specific kind of thing about it i don't know if you can show them that one i got johnny with the the kayaks next to the ocean 37 restaurants in the neighborhood 99 occupied right now any of you that want to invest with me in this by the way johnny uh you can go to cardonecapital.com cardonecapital.com cardonecapital.com and you can invest as little in this deal one thousand dollars and rather than earning point zero zero one eight percent i think we earn five to six percent this is by the way one eighth of one percent okay you understand that's the number there at the bank we i think we earn five to six percent on this deal real estate a real deal not some fake fiat makeup money next caller wendell what's going on wendell hey thanks for taking my call grant yes sir um my question is i'm coming into about a hundred grand soon and i know as you say uh cash is trash so i don't want it just sitting in cash but at the same time i feel like um maybe the real estate market's kind of uh overheated i see they may be raising interest rates so do i wait until the uh through the dip in the market or do i act as soon as i can as far as investing that money in real estate yeah so it depends this is a great question by the way and something people should be concerned about right now what um you know is the real estate market at the top right now if you are buying single family homes i would tell you to be very very careful right now like if you go look on zillow in fort lauderdale all you're gonna see is this you're gonna see prices people like it was a million dollars now it's two million dollars like it insane it's like crazy that there was a guy here in golden beach he wanted 12 million for his house he didn't sell he marked he took it off the market for like 15 days put it back on for 15 million i'm like bro it didn't sell at 12. i know i think it's going to sell at 15 now so i would be very very very careful um buying single-family homes i would not worry too much if you have cash flow from rental properties as long as you're very location-centric you're 100 grand by the way you're 100 grand your 100 000 will buy about 400 000 worth of real estate that's leverage that you don't get in stocks and you don't get in cryptos okay you'll buy about four hundred thousand where do you live wendell uh i'm in charlottesville virginia yes virginia university virginia yeah so that's gonna buy like four units okay now the problem with the four units is the rent's probably gonna be like uh i don't know it's probably gonna be a thousand bucks a month um it's four units there's no parking i mean the parking's outside there's no probably no garage could be a garage maybe there's no swimming pool there's no security there's no real amenities it's going to be a 19 probably 90 80 to 90 uh product eight foot ceilings nothing nothing fancy the people as soon as they they improve the quality of their life they're probably going to move on to a nicer apartment so the other way to do it is you could put a hundred thousand in my deal you're gonna earn five to six percent on your money uh plus your trust trusting me to pick the right asset do the right thing with it and hopefully make a double or a triple on your money which would be my we we anticipate about a 15 return internal rate what's called an internal rate of return on our properties when you invest with me now i was thinking about that and i also wanted to ask you um is it an issue because i look on a loopnet and then there's another website i look on at these multi-families uh properties and i see i'm seeing cap rates like at four maybe even three percent is that a problem i mean shouldn't you be aiming for like five or you know around i know you say too high the problem but yeah and the brains are like five to six percent yeah so look look if you earn if you earn uh on a five percent cap rate let's say that deal right there if you pay cash for that it's going to pay you you know five percent if you pay if you do the leverage that i'm talking about right here you're gonna earn probably uh seven percent on your money i think seven percent on your money is great compared to what you're getting right now at the bank it would take you 14 years to earn the same money that you're going to earn in one year like i i don't know why you guys complain about my god i'm not earning enough bro you ain't the bank is stealing from you then like you guys got to think different about this stuff i i would tell you to definitely definitely look at anything that's paying a four or five a six cap if it's in a great location you got a starbucks a whole food a trader's joe you got population coming into your market you got built new builds going around you um the rents are only a thousand or 1200 bucks a month and you think they can go to 15. i would buy everything in the neighborhood all right no sounds like good advice i appreciate it thank you thank you brother that's it every monday folks every monday i come to you to talk about your business your finances your money today we're talking about inflation you're getting cracked they're gonna crack you everywhere you can go now if you don't make your adjustments right now you're gonna be in trouble okay these are the libor interest rates in america today that's what they've done now since 1990 like how much punishing do you guys need it's an international interest rate right here show it again johnny when i was cut when i was going to school it was back here i could earn nine and ten percent of my money nine and ten percent on my money every year a thousand dollars earned a hundred in ten years i earned a thousand if it didn't compound in seven years my money doubled you understand ten thousand i put ten thousand in the bank every seven years ten thousand became twenty thousand twenty thousand became 40 000 40 became 80 80 became 160 and i had a chance to create wealth today you guys can't do that okay look you're being paid nothing over here this was inflation that no one's been talking about why because wells fargo bank of america citibank they're the big advertisers on tv so the tv people the people at cnbc can't say that [ __ ] banks are whacking you they're ripping you off they can't say that because the next person advertising on this on the channel is well wells fargo we're here to protect you we're here to put it to you wells fargo the relationship bank uh you can trust us with your money wells fargo jump on the wagon jump on the old wagon okay and then the next one uh trading nation what's that what's that in the the the insurance stock uh liberty mutual no no no no the trade the one that uh the ball players do nationwide nationwide is on your side so what do you do you give them insurance money you know what they do hey grant we'd like to we'd like to fund finance your real estate deals with your insurance premiums wells fargo mr cardone could we please finance your real estate transactions with wilbur's checking account you guys are already investing with me you just don't get the upside of it okay this is what the banks do this is what the banks have been doing for years you get money you get some money you bring it to the bank this is wells fargo okay i don't know why i'm picking on them so hard wells fargo takes the money and they called nine people like me by the way they don't call one person like me they call nine people mr cardone i'm on the list mr cadone would you like to borrow johnny's money johnny's so stupid johnny busts his ass gets money brings it to the bank because we convinced them that we are the people's choice number one choice they call nine guys like me and they and by the way this bank invests in all the same stuff the kind of real estate that i'm buying right now wells fargo bank of america citibank okay goldman sachs morgan stanley actually what they do right here is they don't call me they call blackstone because these guys have collected so much money from so many ignorant people no no offense folks if if you fall into the ignorant category but let's face it if your money's not growing you're ignorant okay if you keep running if they keep running the same game down on you and you keep participating in the game this to all my friends in marginalized communities you've been beat up taken advantage of ripped off let's call it what it is you earn money you take it to the bank you leave it at the community local bank or the credit union the credit union then calls a bunch of big players morgan goldman it's not really a phone call this thing is set up on automatic like it's like we got another 100 million what do we do with it okay and these guys call somebody like me and say hey we'll fund your activities we'll fund your we'll fund your real estate transaction show them that deal the bigger the transaction by the way the more they like it because imagine johnny watch this folks imagine 150 million people every week that's only half the population dropping off a bank dropping off a check for 1600 bucks do the math folks see see nobody's asking you guys to think like this i'm just going to do this show my computer calculator this is how much money is being deposited every week uh let's see what's the number uh three uh 150 million people times sixteen hundred dollars after taxes that is how much money zeros zeros 240 billion [Music] ladies and gentlemen this is every week this happens okay you guys understand the problem here this is the problem when you guys buying these duplexes this problem is so big this is every single week so two weeks it's 500 billion at four weeks it's one trillion in cash in 52 weeks it's 52 trillion in deposits this money has to go someplace so what do they do they're like hey let's lend it let's give it out to the blackies and the goldmans and jps and then they'll decide what to do with it i don't know if i have those numbers right man they look so big it's almost like i can't even trust them 500 billion it's a trillion dollars man in four weeks it's a trillion dollars even if it's over every two weeks the trillion dollars okay so what do they want to buy show them my deal johnny that's why you guys like man your deals are so big it's 230 million it's a quarter of a billion it doesn't even solve part of their problems that's the game folks if you want to earn money you got to have real assets if you want to earn real money and have your wealth grow you cannot keep leaving your money at the bank you cannot leave your money in cash you can't just run off the amazon and say i know a lot of people like i'm gonna go load up at whole foods and get all the things i need for the next three or four months because inflation is coming and i need a bunch of stuff before the prices go up you don't beat the game playing it like that by saving you beat the game by getting extra income and by investing in things that go up in value cash is going down the stock market will go down again promise you it's gonna be a nine or ten thousand point bang you guys are gonna hate it could go down fifty percent from where it's at right now and it could happen before the end of the year keep this video keep this tape as they used to say bitcoin bitcoin is due for a big adjustment folks and i own it so don't all you crypto people don't all get all freaky on me okay you guys want to invest in nfts go get em man go get as many as you want just understand none of those three things amazon crypto bank accounts or nfts or gold they don't provide passive income they don't provide a protection against capital deterioration they don't actually benefit from inflation in all cases maybe crypto does gold definitely has not benefited from the inflation the flat the chart on gold is flat it's down one percent this year okay you've been better off investing in crude oil my name's grant cardone look sometimes you don't like what you're told because it's exactly what you need to be told so that you can get where you need to be because let's keep it real you aren't where you need to be right now your money's not where you need to be right now the reason you tune into this show every week is because you know what i know you deserve more your family deserves more you're getting hacked and whacked you've been put together by a system it's not built for us it's built to take advantage of us so if you want to get on the other side of the game you got to look behind you got to you got to get behind you got to be like dang what they doing here man what they doing here they're making money on the backs of the little guy and i'm trying to change that at cardone capital and here at the cardone zone keep tuning in please if you hadn't subscribed to the channel please do that right now hit that little bell hit that little thing if anything i said to you bothered you please post it in comments let's give let's give a thousand dollars away for comments today for you guys to stay to the end of the show i'm gonna give away money for the for the craziest comments start with crazy comment so i got it so it gets my attention uh something positive something negative it doesn't matter to me i reward both of them if you want to invest with me at cardone capital go to cardonecapital.com cardonecapital.com this will close by probably by thanksgiving cardonecapital.com you can come in for a thousand bucks twenty five hundred five thousand ten thousand fifty thousand a hundred thousand i think you're going to get a double maybe a triple on your money with cash flow and appreciation i'm anticipating a double or a triple on this particular investment it's the best single best asset i've ever bought in my entire career i hope that you take advantage of it let's go beat the banks let's go get your dreams let's create some wealth for you and your family [Music] you

Channel: Grant Cardone

Views: 43,756

Keywords: grantcardone, grant cardone, 10x, money, finance, business, sales, motivation, yt:cc=on, WeAre10X, 10XNation, 10XStrong, 10XLife, 10XEverything, bitcoin, Real Estate, gold, gold standard, inflation, economy, shiva inu token, shibarmy, crypto, ethereal, ethereum, dogecoin, elon musk

Id: ZZy-8gv68tk

Length: 63min 5sec (3785 seconds)

Published: Mon Nov 15 2021