How to Build Wealth - Grant Cardone

[Music] all right everyone welcome to the real estate experience where I interview entrepreneurs and other high achievers in the industry go ahead those of you who are on the YouTube hit that subscribe button and also the little ray ring button somewhere over there and we're gonna go ahead and jump right into it I've got GC a man who needs no introduction everybody needs an address okay we'll have an introduction but also I'll do a little background below as well so thanks so much for being on yeah thank you I got a question first how did you get this interview so cuz actually people want to know how did that dude get in here and do this interview I would say so at one of your recent boot camps I approached you and just went up for the ask you agreed to it oh yeah okay okay then this is where the whole follow up came into play now when i an't when i said yes to you did i say yes faster than you thought I would so did you know did you think oh well it's not really a yes it's just a maybe a little bit of a broom I knew on my side that I was gonna make it happen from that that's too quick yeah no I'll tell you why I did the interview with you okay cuz cuz I'm the one that really knows the answer then okay number one you're a professional guy who you were at the boot camp you had invested money in yourself I think you were sitting in VIP yeah so that means something to me right that tells us my third boot camp - yeah so and and sometimes it takes two or three times before I'm like oh I know that guy and that's true with everybody like like you don't you know you unless somebody's a celebrity or something you don't recognize them the first time you see him and for them to become a celebrity you had to see him a thousand times there hear about their name of thousands of times so I had seen you before you were sitting in the right location you were professional you asked the appropriate way and the fifth thing you know what the fifth thing is you know I don't know you use those two favorite my two favorite word's real estate in LA I have a heightened energy level for everything because real estate has first of all got me through 2008 I've always loved it I've always had this connection with it being real like the real things matter to me and the fact that it's real even when I was a little kid I would go look at property and then when I was 30 I would go walk the property and even when I did I couldn't buy units and I was with your your father at that time you saw do you know my dad was a stockbroker and on the weekends he would drive the family around looking at real estate and when I was 28 years old 20 years after my dad died after that experience I asked myself why was dad you know sometimes it takes a while to put everything together why was my dad to stop broker looking at real estate on the weekends gotcha why wouldn't he look at his stocks in the weekends and that just made the real estate thing even more real to me right because he knew he knew that real estate was a great place to make money in stocks and then a load up in the real estate so you don't lose that money so when you mentioned the real estate thing and you were interested in that that was very interesting to me yeah and the biggest takeaways that I took from you that I've applied to the acquisitions and just building the overall business was one commit first figure the rest out later to the greatest sales secret which is the follow up yeah when I heard that and it took several times for me to hear that yeah hear that understand and actually implement so one thing is I'll send an owner a holiday not holiday card but a birthday card a small note that says hey I may have got you a little bit too soon or a little bit too late but just want to make sure I got you covered PS I'm your buyer if anything happens to change yeah or a Rubik's Cube that says a small note hey let's figure this out so those are the types of things I was able to get from you and then the three options the options and negotiation that's always been so have a option the option yeah then normally the C is the ground zero the a option for me it's always here I'm gonna give you more than you're asking for your property that always gets their attention how you gonna do that you know so yeah the follow-up do the follow-up in negotiations I just closed the 531 unit deal in in Maryland in Howard County third richest County in in the United States 531 units a block and a half from hole dudes there was 15 guys looking at it I got it the sheet hit my desk as soon as I saw it I mean this happens to me as soon as I see it I know I hope my whole body just like by this deal like every every indicator that I have in me every every 30 or 40 years of looking at property everything just lines them sent by this deal it looks right feels right the numbers look are you like so I called the guy I didn't pass it on to somebody I picked up the phone and called to God and said hey I'll be there tomorrow morning this commit first figure the rest out later I'll be there I think I think I saw it at 4 o'clock in the afternoon I said okay Robert I'm calling from Miami I saw the sheet on your deal he's the broker I said I'll uh I'll be there tomorrow morning I'm in Miami he said where are you I said I'm in Miami he's like well how you gonna get here tomorrow morning I said I'll be there tomorrow morning he's like it's too late for you to leave tonight like there's no way you can turn this around I said no no I'll be there tomorrow morning I'm gonna fly in and and if you could pick me up at the airport I'd really appreciate and I said I'll be there at 7:30 he's like grant I fly to Miami twice three times a year there's no flights into Baltimore at 7:30 in the morning I said well yes easy telling everybody people so I apply and boom like this little in your jet yeah of course yes so there's no other rather than the Baltimore 7:30 so the point of that story is I committed to him first when I saw the deal okay now I could have added a week there was no urgency for me to get there but the urgency was on my end for the optics from a negotiating standpoint because if it's a desirable piece of real estate hopefully you know and I talked about this in my book there should be other bidders on the deal if it's a good deal there'll be multiple bidders okay the bidding around the deal actually suggest to you that that it's a good deal so you want bidders I don't want to be the only guy I don't love the deal that goes to bankruptcy or foreclosure right because it's got like it's got problems already and is it that the follow-up I know is one of your gut go twos in terms of separating from the others in the crowd yeah we have that hard money what the urgency the urgency that I got there was setting up the follow-up because I know this said no one call close gotcha so I'm getting there first and I told him when I out there I said I just want you to remember one thing when I got the plane want you to remember one thing it was the first person to call you I was the first person to show up to your property and I am your buyer that thing that you said to them earlier I am your bar I'm your best bar I will be you yeah there you go and did I use that kind of stuff all the time and then it took it took another probably six weeks maybe five weeks to get the deal under contract and then we went into negotiations so this thing got really bloody because there's a lot of layers this deals 140 million dollars so it's a massive deal and so it got a little bloody because we found out some things that they didn't disclose to us it had to be renegotiated and how did you go about negotiate did you use the Ground Zero Genghis Khan no no no no no I didn't use any Genghis Khan because because these got set on the bars right so so so you know which the Genghis Khan is brilliant and could you explain to those what the gang is well first of all you gigas Khan really works we take him to zero you got to take the guy to zero we found out that there was one point three million dollars these are big deals okay so these are there was one point three million dollars in dock fees that are customary in Maryland for four there's two point six million dollars in dock fees and it's customary there that you split them okay buyer pays half seller set base have in Florida is customary that the seller pays all the dock fees contract the transfer fees so we signed the PSA and said hey it's customary we're gonna go by the customs I didn't know the customs I thought we were done by the customs here not because I'm Sarah so immediately I had a new greenie go she ate 1.3 million dollars mm-hm like the the second we had a PSA signed and agreed they're like you're the buyer I had to call the guy back 12 minutes later and say hey tell the seller because I'm not talking directly to the to the owner tell the seller I did not know about the 1.3 and I'm in now I'm taking the deal to zero I'm willing to you know undo the deal mutual release mutual release I'll give you the release right now I apologize my ignorance this what I wasn't retreating them I wasn't this wasn't a trick or I'm not trying to get something for nothing and I didn't know we hadn't done our due diligence my team's hitting the ground the martyrs still walking through the properties I apologize I want him to know right now I would never reach trading this was all opportunity real was this the first time you worked with this broker yeah first time in that and first time in that market I said you guys knew I was new to the market I did not know I apologize the guy the broker on the phone says 35 years I've been in business nobody's ever signed a PSA and four minutes later like Louie we didn't know 24 minutes he's like within 24 minutes they're calling saying hey I got an issue because I still had three weeks from due diligence that I could have played that out and I'm like I don't want to play that game so it's really important to move with speed which is what most people do though they're gonna put it off put it off till later do don't put it off when you got a problem in anything in any business when I get a customer complaint the faster I can respond to that complaint the tenant complaint a customer calling in here an issue with a bank anything the faster you can hit that problem the more confidence you appear to have about the problem so that deal just got it got very complicated and then when we did our due diligence they were smart on their en because they're like hey we'll worry about it later let's just worry about it later we'll worry about deductions later yeah the Selphy hey just tell grant we'll just handle that later I said no no we need to handle it now no no we and I knew they were playing me so they outplayed me on the first part of this and then because they they wanted to separate the dock fees from the due diligence that they knew would come up it's a big property 531 is this one of the negotiation that you mentioned that you said the one point three that when calling out to him you separate that out or yeah the guy said guys I'm paying you the 135 for your deal okay okay the one point three I didn't know about okay oh that's a separate issue and and and now I said I still got to do my due diligence I'm gonna have my team there tomorrow morning I just need to call them and tell them whether to stay there and do it or not do it so then when we did the due diligence we found another four million dollars for the rehab so now they want to put all that together and negotiate it obviously the bigger the number the less they're gonna give of that percentage but anyway the whole deal worked out we bought the I'm closing on it in 20 days it's gonna be fine they love me I love them everybody's happy and brokers good and you'll be able to work with them on another day exactly all right and so I really want to go into the beliefs that you have cuz I'm a firm believer of just myself I know I still have limiting beliefs and I'm constantly working to of ways to overcome those yeah one thing is that I've been able to get from you is rich people buy time yeah I never really thought that really understood that and so I started implementing with hiring people outsourcing let's say laundry or things that I don't enjoy doing yeah yeah so those were limiting beliefs that I always thought I had to do myself yeah my question to you is what has been one limiting belief within the past two years that you've replaced what is the that limiting belief and what was the new one that you form yeah I mean I do like I see I have so many limiting beliefs you know just my experience traveling to the Middle East just showed me how many contorted fixed ideas I have they don't even mind like I don't even know where they came from like I'm going in the Middle East I had a clip with a ten ten nine millimeters loaded in it Wow I'm going to buy and I got not nine bullets loaded into a clip Elena says kick call it a clip it's a magazine I'm like everybody knows that what a clip yes okay so the we fly into Dubai I get up the plane I'm all happy I got my kids everything's fine everything's wonderful I can't wait to get there can't wait to you the second time into the city and I'm all exciting the guys like there's something in your bag you got to take everything out so I go in there I'm like I'm not worried about anything I know there's no drugs there's no nothing right and sure enough man I reach in there I'm like oh my god oh my god yeah clip the 9-millimeter Glock clip oh right the clip though just the clip not okay no no I taking the gun out I kept three clips in the back so three clips in a loaded Glock right so I taken those out I'd taken two of the clips out and the Glock and so that he's like this is a problem you know and I'm like good total mistake you know we shoot guns in live and he knew me from YouTube Wow all right this is a guy this lived his entire life in the UAE and this this was security he sort of you know you invested tonight right now he's like oh yeah this thing's been hit on the radar now now we got to do it I know it's a mistake you know we're not worried about you but four hours I spent so I'm sitting there in the with the police thinking oh my god they're gonna put me in a whole damn I gonna become like the guy on 24 or what was that movie where the guy got put in the hole and I'm like oh my god they're gonna put me in the hole and then I start fantasizing how I'm gonna turn it into something right so these these are these are I'm like I'm gonna I'm gonna turn this into a big promotion I'm gonna get more followers and the world is gonna know me now my oh yeah they're probably going to take your phone from before they put you in a hole so it's just these contorted ideas that come from the media that these people are dangerous or they're gonna do something terrible to me or whatever right none of that happened obviously and so that that's a not maybe that was a fixed belief this probably still is a little bit of like are they gonna treat women did for a near gotcha and idea that culture it's more what is it covered yeah but not really not really that's not even true anymore yeah you know like you know so so like I was with the shake the the minister tolerance there I was sitting next to him he had me at a meeting I'm sitting to his right in this big beautiful round room and there's all mostly men in the room three women and this this meeting they people come in and just meet him every afternoon three o'clock in afternoon hello how you doing they pay respects he's got me on his right he's got the minister the Prime Minister of Thailand on his left mr. 10x and mr. tally and he reaches over touches me on the name he's like would you like to fly to Dubai we were in Abu Dhabi he's like would you like to fly to Dubai with me on my helicopter I said yes sir I would now I don't know if that includes Elena or not so I'm hitting these fixed ideas I'm like I wonder if that means my why has invited so the point of this story is like no matter where you're at in life if you're still learning and you're still in putting yourself in uncomfortable or new environments you're gonna be a little I don't know what the cultures are you know when I was with the policeman and they were investigating me in Dubai I crossed my legs like this the guy walked in and says please please sit proper I'm like yeah okay man what's the deal here I ran into it like that that there in in in the Middle East dude to see the bottom of a so it's so disrespectfully but this is all so disrespectful this is considered to be aggressive I languish shaken when you serve this is like because I'm not showing that I knew about the sole thing don't show the sole but this is considered aggressive by the police gotcha and some like yeah man but but you see all these things are like I think I think people think oh my god grants got it made you know he's successful now everywhere he goes he's he could talk to 35,000 people I'm still uncomfortable in situations I still have fixed limited beliefs and things that trapped me right so you know we're doing we're doing and do you prefer to put yourself in those situations well Wahby yeah I have I have to agree I have to agree to put myself in those so that I feel like I'm expanding though like like I'm living life like you can't be a beast or a savage if you're not in the jungle you know you can't I know guys that think they're beasts and they're on their sofa bro you in your sofa you're watching you're watching beasts on TV you're not a beast so you got it to be a beat to be a true savage like a real living in a respectful honorable way I say that and I'd say that like I respect people that are savages and and they get things done that they're like hey man give me the ball again right there you got a nerve with it Tim Grover would say well but they'll cleaner the cleaner yeah yeah you got to be in the game to be a cleaner you can't you can't be on a couch can't be behind the book you got to be in environments that are not comfortable not oh you're on stage for the 67th I'm doing the same presentation that's not a clean that's a guy on on Otto you're just doing the same thing you did over and over again right so for me right now limiting beliefs would be okay we're gonna do four deals this month we're gonna we're gonna close out probably I don't know 400 million dollars for the deal so I need to figure out how do I jump now how do I go do four billion dollars for the deals sit down with the boys in New York hey guys how do we do this let's tell me how to put this thing together so those are limiting beliefs thing and I still got to take baby steps even though they don't look like baby steps to other people and I find it fascinating your thought or the way you talk about money and so on that concept what would you consider to be a lot of money at this point in time in your stage in your career because I know one thing you you had a billionaire associate bill you're able to really open up yeah well right now I don't have any cash on me so any money would be a lot of money right now like I respect $100 so you give me $100 you know I respect that as a lot of money now that being said it's not gonna be a lot for very long and if you got two kids that need to eat today depends on what your needs are right I got a wife and two kids so I mean $100 probably gonna last the whole day but $100 for a minute that's a lot of money now if I could if I could figure out how to get more money coming in then it's only a lot of money if you got more money coming in understood because I can I can probably exhaust almost any amount of money this is this is the problem with the NFL the NBA the MLB the the rappers when they move on they got a pile of money but what they don't have is more money coming in got you and and so now you know a million dollars there's a lot of money if you got a thousand dollars every day coming in because you can't get through it I always tell Elena I said do it as long as we make a dollar more because of my net worth if I make a dollar just one dollar every day I mean one dollar today is a lot of money because me it means I never go backwards and it means it means this network just keeps growing right but in the beginning man you need money like I need money because I don't have a pile over here so that that what is a lot of money always changes and would you say for those people that is a potential limiting or some they don't have that concept about putting their money to work for them and that yeah I mean a lot of people are just they get money and they use it to buy stuff and they get money and they use it to buy stuff and it's just boom it's just I get I trade time for money and then I get Cheerios mmm and I give it back to Kellogg and the money keeps going like this like what I'm trying to do is I'm trying to get this the amount of money from a bunch of flows if you've ever been in the ocean watching fish feed you you ever seen a big school feeding no well on the internet yes what's national Geographics right so you know like I'm a diver so I've been I've been in the water where there was you know probably I don't know ten thousand fish you saw all that activity like whoa look at the activity here okay I've been in the water where there's four or five thousand Barracuda spinning like this they're spinning their feeding they're making themselves look like a big mass to protect themselves against bigger fish and and you you just see this ecosystem right and the same with money like if you got one dollar going around it's only one dollar but if you can get a bunch of money spinning from a bunch of different departments I talked about this in the millionaire booklet how many different ways can you figure out how to make a million dollars mmm was it posting notes or sticky sticky notes yeah yeah yeah yeah how can you you know cake I could so I could get 1 million dollars one time I could get 50,000 20 times I could get you know five hundred thousand twice like how many different ways can you I think Kanye says hum there's a million ways to get it pick one you got to pick one and then get good at that one and then add a second one a third one that's why the Real Estate's is such a beautiful thing gotcha it's shifting more on the business side what our difference you see from the organic organizational standpoint or just maybe the operators way of thinking from a business that's doing 1 million revenue to one that's doing 10 million is the one that's at 10 million that's a hundred million well it's it's easier it's easier as you get bigger okay it's not harder this is a great secret the the big the big the big lie is like smaller is better smaller is harder bigger is easier it's less risky you know I mean it does at some point well it does at some point trapped you a little bit because now you're like responsible but if you're one person trying to make a million dollars you're also responsible to or 100 grand or whatever the number is so you know most people can't get off that they never can get out and look the they have to show up otherwise it stops over here if when the company gets bigger let's say I have we got probably a 150 employees here 160 employees something like that another 350 in the real estate ryan tells me all the time hey we need a thousand employees grant you need a thousand employees well that's a limiting belief right I'm like oh no I don't want to get any bigger than this this guy a little weird right how do you know because I walk in here today I didn't know whether you were here for a job lately like we're interviewing thirty and forty people a day like I don't know what even want people are that customers are they employees I got people working for me I don't know who they are I'm like what's your name mm-hm you know so so when it gets bigger you you start feeling like you're a little out of control you know when you're one-man show or three people you've got total control but no way to scale and when you get bigger you know there'll be leasing agents on some of the real estate that we own that I've never made maybe never meet them so but but that being said I need to think like the Google boys or the warren buffett's or the guys that are like they don't worry about all that they're worried about how big they can get how big how big can they get how long can they survive and and and big big is what works you can't show me a small company or small think that has ever survived anything is this the year your quote this is can't can't get big thinking small you can't get big thinking small and you can't get big with small people and and I mean you could if there's a lot of them yeah but you're gonna have to have you this is a multiplication again you know if there's a takeaway for anybody that's watching right now like if you have one takeaway er the game of business in life is about multiplication not adding and subtracting it and and and I thought for the first 30 years I was in business no maybe 45 years of my life anyway in the first 25 years of business I thought it was adding and subtracting and it's not like it's about multiplication it's about how fast can you scale something and and and and you're gonna go backwards by the way you're gonna see and see the old adage was take two steps two steps forward one step backwards you could kill yourself doing that what you want to do is you want to multiply ten steps take two steps backwards you're gonna have you're gonna have lost you're gonna have break kids you're gonna have problems but but but you're going to also see the scale you're gonna see the company scale your your income scaling or in your case your real estate going from 150 single family deals is that how many you had yeah that's amazing - 29 years old for you to do that now you got 500 apartments mm-hmm 587 587 excuse me yeah yep so you'll throw those numbers away later you'll be like can you believe that said to grant I correctly granted eighty-seven what do you care about so let's actually we'll keep that in there yeah you gotta keep that for the future because you're gonna be doing deals where you're like dude 87 years I'm not even looking at those anymore yeah so but that's also that you the fact that the fact that you or got rid of all those single families how much of a pain in the ass for those a lot yeah I try to tell people all the time to buy that many single families just managed owns have managed to sell them gosh it was not a hundred and fifty closings you had to go to well I don't have to go I know somebody had to go to some somebody had to in their head go to it hmm and worry about it okay and so now here you are 29 years old you got 500 units you know just to flip the interview a second you know just like with the first time you heard me say don't buy single-family what did you think I that's when I it I believe I had to hear it a couple times then it finally just clicked and registered yeah then that's when the complete shift happened that was in 2017 on the very first deal was a 46 unit yeah and the VIP from there I do want to ask with the the how do you know when you say something that okay I should lean in on that you mean the deal or oh I would just say in general like with snapchat for instance when you were looking to start you utilizing that platform yeah or just or the thousand employees when do you say okay that's I need to lean in on that that's a belief that's yeah magnet well I'll give you an example but it's really like I haven't leaned in on either one of those not snapchat okay or or the thousand yet then thousand employees yeah but but for instance we did an event last year the 10x growth conference here in Miami when I rare how was it oh my god when you when you can't do this right yeah so no my uncle still still screwed up yeah I've been thinking about starting boxing I can't cuz this ankles just been damaged ever since then so probably before that well you couldn't oh you must have your adrenaline going through the hole your dream is that you're like this is a dumbest thing I ever did in my whole life so but before that dumb thing was writing a check for ten million dollars so when do you go all-in you go all-in when you write check anybody that thinks they're gonna go all-in in their head you're freaking this thing is not all mental you know I hear this all the time on Instagram dude this is 99% mental yeah where I check for 10 million fine find out how mental it is you know because if you have it if you've gone from mental to physical physical is I'm writing a check I have an obligation I got a responsibility behind 140 million dollar real estate complex that is not mental gotcha that has nothing to do with mental that has something to do a commitment and I my belief is this there is no commitment without time and money if time and money are not present you have not made a commitment and and I know Instagram is a beautiful place to live in your bedroom and and get quite great quotes and have people inspire you with their beautiful phenomenal plagiarisms but the reality is look this is not just an attitude game it is a physical game okay success is a physical game it is a contact sport it requires people to do something and when I wrote a check for ten million dollars for Marlin Stadium I'm all-in guys I was not all-in when I walked in I'm like oh yeah we're gonna rent the whole place I'm all-in yeah I'm all-in mentally right there you know and then I mean I and I was 99 percent of the way there dude but you're not a hundred percent all in all in means a hundred percent no backing out no way out if you pull out you lose something and and that's what I mean by all-in leg like you're gonna take my money from me now it's the thing with putting the hard money down would you say exactly you put hard money down on a deal we just bought a deal in Naples Florida we'll announce it in January but I went 250,000 hard here here's a check let's roll pick me gotcha okay you don't pick me was there a you don't pick me on that nothing well there there are there's always corbels okay yeah there's carve-outs even when I'm like no carve-outs you know I mean the law just has carve-outs right so I don't even need to specify some of the car balance these are big deals so these guys are not gonna they're not gonna screw you this isn't like I'm dealing with mom-and-pop I'm keeping your money now sunny but even in that situation they're not gonna fight a lot the lawyers that's the negotiation thing you mentioned - is it it's like you fire is always in control the last hours of a deal the buyer has 100% control regardless of what any contract says you've been studying my [ __ ] yeah so that like that one thing right there somebody can really understand that one rule and negotiations put you in such a powerful position Trump knows this see Trump knows about that one hour rule at the end so when you put your money where your mouth is or where your entire physical life lives then you're committed so the Miami thing do we didn't know how we were gonna pull off no clue like like I want to tell me her figure the rest we had no clue we had no clue we had I had a hundred and twenty-five employees at the time and if we'd had taken a poll with all of them we didn't because the poll with the first 16 was so bad guys what do y'all think about this 15 people said this is a terrible idea gotcha so if I'd have done it with the whole staff that all said it sounds good but it sounds stupid too and then if you didn't then to add on top of that that I did it on Superbowl weekend see the play was this okay isn't that good for you to go against the grain for okay you don't want to go against the grain like you know don't go against the grain just to go against the grain that's just yeah you want to go with the flow you know you you the salmon swims upstream what's about to happen to it didn't about to die or something so you you don't want to go against the grain just to be different and unique so so but I knew that if I could pull that event off look Jay Z and Beyonce can't sell out 35,000 people for three days they can do it for two hours especially during Superbowl weekend they would never do it on Superbowl weekend anyway has stupid who does that nobody yeah but I knew if I could do it on Superbowl weekend two things would happen number one Grant Cardone so about 35,000 people number two and people will talk about and that's a promotion total three promotion forever he did it on Superbowl weekend like why would anybody do that okay now I become dangerous to other human beings they're like - dude the guy is a savage beast so that at that point when we wrote the check because I had a lot of people around me saying this is crazy oh my god we're committed now now the money wasn't the issue anymore at some point the money's not the issue and now your reputations on the line which is even I can't talk Jared every day for 365 days charity if we pull this off dude we're gonna get a lip so big it's gonna feel like Noah's Ark we're gonna be the last load E right but the whole world is gonna drown and we're gonna be like look at Noah out there so I'd say if we pull this out there it's going to be the most powerful thing we've ever pulled it'll give us a big brand lift and and if we pull it up people gonna have a lot of fun it's gonna be a great event you know we'll be proud of it know and we will know we can do anything gotcha okay and so shifting back to the the real estate element is how in today's environment and this could be a belief what I'm I'm still buying as well is how are you purchasing in a tight market such as the one that we're facing what's your competitive edge yeah so speed speed speed is my competitive edge and also my optimism about the future of but looking forward not looking backwards right so you got to remember everybody just sells me a deals making money okay yes so they think of killing me I think they're gonna regret selling probably 60% of the people that sell to me would agree with me that they're gonna regret selling the other four year like that would kill him we made 15 million 20 million on him we made this much money on him you know how can you make sense of that I can make sense of it because I think this real estate is going to be worth more money in the future so we don't over leverage we're putting 40% down in most cases 35 and 40 percent down so on this deal that we're buying in Maryland I'm putting 40 million dollars down and you're getting Iowa on those yes we get interest only for five to ten years and you know these are three point six percent interest loans and you're going through insurance Fannie Mae Freddie Mac MetLife New York life like some big big lenders these are multi trillion dollar companies these aren't billion-dollar companies these they're big a massive they're not wealthy people these are the wealthiest institutions on the planet you know you what's my competitive advantage number one is my attitude number two is the speed at which I move so while a bunch of analyst number one while a bunch of analysts are sitting there saying okay what's our return gonna be and what's it gonna be in year two we've been wrong for 20 years these analysts have been wrong about rent rent in for 20 years I've been saying on Yahoo CNBC Fox Business hey guys people are not going to buy homes in the future they're going to rent I've been saying this for five years now the media is starting to pick it up you know that it's smarter not to have a house and rent if if you're going to take that money that you would have spent buying a house and invested in real estate that pays you to offset where you're renting because this could change the economics of the entire country if that money wasn't sit and dead in homes and there was income being produced so the tax advantage is a phenomenal the leverage is unbelievable the amortization of people paying my debt down is phenomenal the cash flow is just beautiful the tax advantages per like almost endless and existing no other business none of my loss from last year that I'm able to write off for my income for the upcoming year yeah if that end I was like and you got into you liked it you and none of this is real none of this is real to anybody until you actually get it yeah so I have investors that I explain this to them like I did you put in a million dollars just one lady put in I think she put in four million she put in four million she's gonna get to 40 this year from me okay she makes 250 at her job I said do you understand she lives in California her job pays her 250 I said you understand that you're gonna make more money on my 240 then on your 250 she's like what do you mean I said well you're not gonna pay any taxes on my 240 and you're gonna pay 60% cuz of where she lives on your 250 and and then she just loaded up she's like let's roll plus plus that 250 she gave me I'm sorry the 4 million she gave me probably worth 12 million dollars the moment I do the deal because of the leverage as you know I'm back to your question about how do I get a competitive advantage 1 my attitude number 2 the speed at which I move in number 3 I'm the decision-maker okay in most cases if there's 15 guys on the deal they're not dealing with the decision-maker the other 14 guys are sending a boy or some junior their acquisitions manager yeah and I'm the guy just tell the seller I showed up and that's powerful yeah I know that you're dealing directly with the person that makes the decisions and and we don't raise money we don't raise money a card on capital to buy the deal okay I buy the deal with my money then we backfill it if people want to come in gotcha so I'm not telling the seller I need to raise money I'm walking in with a an account saying here's my cash like I'm walking in with the back look and so touching back on the one thing I want a 50 years from now yeah what do you believe that will reflect upon and said grant said all that and actually came to take to truth we should have been listening to him yeah well what are those key things I know houses your house is not an asset not a liability well the whole world be a renter in 50 years okay like like you know just go to Europe man go to Europe PPP people ona or in Russia in Russia or go to go to san paulo sao paulo brazil you fly in you're like God there's office buildings everywhere those aren't office buildings those are apartment buildings where people own there'll be 800 units they sell 800 units okay so these are little 400 square foot places where people have 140 of their entire network is in this little kitchen linoleum floor it's awful dude all this money just trapped in this little unit and and those people should be renting they shouldn't they shouldn't have their future they should have that money invested in their business they should have it invested in their self-esteem and their education and instead instead the world's been tricked to believe they should work take their money and buy where they live because it's cheaper it's not cheaper it's only cheaper if you're not gonna go out and make money create a business build value and become you know have multiple flows of income so if that's your only game which is what our parents did an entire generation it didn't work for them you 70 years old you can't go vacation because all your equities in your house or that the one thing I love that you mention is that if you're a was a seventy six percent of Americans are living paycheck to paycheck yeah yeah and then this goes back to the information that you have maybe misinformed totally you just if you have wrong data like you have the up data when you have that many people suffering like this isn't a few people this didn't blacks whites Indians it's not it's not a specific group it's all groups every group now it gets worse in certain demographics it definitely gets even worse but when somebody's depending on one income mmm first of all you're gonna hate that you're gonna hate that one flow because you need that one flaw I talked about this in seller be sold if you only have one customer you're gonna end up resent that one customer because you're having to kiss the ring all the time and and you're gonna resent that at some point you're gonna be like I'm tired of kissing the ring and when you have one flow of income you start to resent it okay the more flows of income a person has the more they can actually work and not be resentful so Jared Jared for instance he's got one flow coming his wife works he got a second flow he's got real estate pain and he's in almost every deal I've ever done I think he is in every deal I've done he's got like nine cheques coming in from that he didn't resent this he's doing everything he can to support this and make sure this keeps working right because because he's not dependent and if he died tomorrow at 35 years old it's happened before his kid Jake would keep getting checks from the real estate we would quit painting right here I mean I brought him in right now said oh you died this weekend I ain't paying you money you're done so there's nothing there's no life insurance there's no I'm paying you a severance fee because you died that we owed this weekend but the real estate will just keep paying you forever so that gives him security and most people 76% of Americans don't have that they go to work they collect a check they send it to Cheerios or to Starbucks or to a vacation Marriott notation depreciating assets yeah oh whatever to the to the Nissan Motor Company and the money's gone again and no wonder they're pissed off no wonder people got depression you know I can't even go out I go out I got a drink myself to death just because I can't you know they're going to Vegas and they're coming back with four or five thousand dollars whether debt for their one vacation if they had the income from other investments rather than a house that they had to feed again next month that that would change their financial situation hopefully people are talking about me 50 years from now Johnny you me how old yeah yeah Johnny be talking I'll I used to be well I will be the same age I did a video with him I wonder where I'm gonna be I'll be low I'll be floating around the universe man all right well let's jump into our rapid fire okay the first one we've got one friend Yes No maybe here we go watch us I see that you are a fan of watches yeah do you pick a watch based upon your mood or you just ya know I see I see a watch just like real estate okay I got I want that well when it comes to wearing like for today yeah well I spent so much money on this watch and I need to wear it every day just to feel like I did the right thing so you know but but I've been a little upset with it lately because I didn't know how to wind it right the guy that sold this watch I mean there's 15 of these in the world Wow and the guy that sold it to me AVI big shoutout avi he didn't tell me how to wind the thing so I was going back and forth and you're not supposed to go back and forth you're supposed to just go up so I was never getting a reserve and I was looking at the wrong indicator on the watch I didn't know what I was doing so so how do I wear the watch it's a mood thing it's a little bit of a mood thing you know what what am I feeling today okay or you know did I just get it and I'm excited about it it's kind of like a car you know so gotcha so next question we have is what is one you unusual habit or absurd thing that you love absurb a habit wait what's the question it's a weird unusual habit or a let's say absurd thing that you love or just out of the ordinary that you enjoy I mean I love a good cigar oh I like tequila I love to keep good tequila with the right person to like like throat tequila back with that that's fun for me my wife doesn't she doesn't she doesn't like that she actually does like it but she she wants to not like it but what else do I like love a good bottle of wine I mean if it's good by the one with the right company I'll have a cigarette when I'm drinking okay nobody kind of knows that I take two puffs of it and I throw it away I played tell you a story I me Ryan I don't think I've ever told this story all right here here first so I was in Malibu for for three weeks this was three years ago two or three years ago were you on that trip Johnny would you play were you in the you were in the game that night the shot shooter game okay so so we played we were bored we had this beautiful house in Malibu on the ocean it was a magnificent I walked in this house I was like took my breath away just took my breath the view was ridiculous so we'd put the kids to sleep and I had two security guys with me Ryan Seco who's Ryan's mister he's mr. becomes thick man or a stick he's mr. sidle okay he's mr. healthy Oh granola boy and I had Elena with me and these two military guys and say guys let's play some poker 500 bucks our body in each and the gang goes like this we're gonna play Hold'em poker if you win the hand you take a shot so me and Ryan are drinking tequila they I said you pick whatever drink you want but you got to shoot if you if you if you win you shoot the three of them Elena and the two military guys Elena's trying to be the boss they're picking Jack Daniels well Jack Daniels is like 80 proof in the tequila's party they don't know this right so the number two thing is dude you don't want it you don't want to win a hand right now okay because you're gonna get drunk and then you can't win hands exactly being for the long game right so like my second hand I had three kings I folded okay military guy he's got two jacks he's like oh [ __ ] look at me I want another one Oh normally dude I'm told my kids okay good I don't want to take a shot I don't I'm folding straights I don't want to get drunk right so I want to win so these two dudes the two military guys oh they're just hit the two in Alayna all winning hands okay and next thing you know they're freaking out wait I think these guys both owe me like a home a boat they still owe me stuff they don't even know what they owe they don't even know what I did to him that night right so I said well plays yeah yeah so me but me and secular we end up finishing our bottle they finish their bottle me and psycho take all the money we're smoking cigarettes throwing cigarettes out we're all wrecked it was a it was a fun night I don't know why I told you yesterday but it was it was a blast of the night I've never told this story said mm-hmm I like doing stupid stuff sometimes mm-hmm that's just to mix things up and yeah is that your excuse oh you believe people need some type of yeah I don't think that's a good escapism I mean I that was a fun reckless one-night thing and you know what else do I do this kind of crazy John no not much really I do kind of crazy jump out of planes yeah that's kind of crazy you know I I have a lot of fun I have a lot of fun at work so I go from being being very very serious completely like nothing matters I've always been like that at work you not not always really once I became a professional once I knew what I was doing then I was actually free to be a little reckless because that could always switch back to being a professional and I think a lot of people they don't they spend too many weekends getting drunk because that's their moment of recklessness because you can't unfortunately most people never get good at their job to be reckless you know the racecar driver they can be reckless they're not gonna hit anything because they're so good at what they do and so my next one is what purchase of $100 or less has most positively impacted your life in the last six months under a hundred bucks that's most man this supposed to be wrapping around there's a hard question what if I bought for under $100 I don't know whatever bought for under $100 I don't know Johnny let me think let me think look I got to think about oh you gotta say you got me stumped on that huh bottle of water hmm hundred dollars what what if I bought for under $100 is impacted my life the most are two actually okay this well I'll just do one the next one is if you could sit down with anyone dead or yeah yeah yeah I mean I'd love to sit down with Tupac I'd love to sit down with wish they still say he's alive that was what I had forgive me jay-z did if I could like I'd love to do dinner with jay-z you know just I don't even know what I'd ask him I wouldn't ask him that hundred dollar question I'll never ask anybody that question all right well I would say thanks grant so we you're awesome and I and I just want to tell you how much I admire what you've done at 29 years old you're so far ahead of where I was and and people should really pay attention to what you're doing because you know to have that many units already and I know a little story about your brother you know that that you guys have both picked different paths right now maybe he'll come back to this path and if he can find his way out of you know because because I went there like I could be your brother I could be your but I could have or you could have been what totally I could be what I like people's like how you handle all the hate you get do like you I get a lot of [ __ ] a lot of people hating on OGC and I said well number one it comes with the game like if you're gonna be successful you're gonna get you're gonna get people hating on you you're gonna get one of these I want to criticize you're going to get judgers that that's all they ever do in their whole life has judged people produced anything other than judgment or they'll have no picture on the youtubes and on the no appetite no avatar how do you handle all that I'm like I shouldn't be here now sure I was I was overdosed when I was 17 years old again when I was 19 again when I was 21 23 years old I was beat if somebody wouldn't take me to the hospital I'd have died in the house so you know the little bit of hate I get I shouldn't even be here I shouldn't be sick you know I shouldn't have to be having the success that I have except that I finally clean my life up took a different path in addition to clean my life up went and made up the damage gotcha like I think a lot of guys make the turn but never clean up the damage yeah and I gotta make the turn huh I know one of the individuals that piece of [ __ ] garbage yes for action toilet like flush garbage like if you if you turn and you don't clean up you didn't make the turn you didn't make the full turn so what what I did when I was 25 was I went to treatment when I got out of treatment I spent the next three years cleaning up paying bad debts of making amends to people that I screwed like hey what do I got to do to clean this up most of the people were like you don't need to do anything no I do no no I do need to do something you need to let me do something they're sitting for you this is for me I need to go forward knowing I don't owe anybody anything please let me get out of debt and that is so so important people people look at people that are successful today and they're like but you don't even know what that guy's been through what did he do to get there what did he do to stay there and what does he do every day to keep themselves excited about what they can do next to make a difference and be an example so you're a good example man I hope you keep doing well thank you so much I will keep doing okay I know you will thank you so much great [Music] you [Music]

Channel: Grant Cardone

Views: 91,922

Rating: 4.9000001 out of 5

Keywords: yt:cc=on, income, wealth, real estate, real estate investing, how to invest in real estate, business, motivation, how to get rich with real estate, investing, grant cardone, 10x, how to start investing in real estate, finance, invest, the best investment, how to get rich, money, how to build wealth, sales, grantcardone

Id: pHlWYRn2yWw

Length: 52min 52sec (3172 seconds)

Published: Fri Dec 13 2019