How to Force Appreciation - Real Estate Investing Made Simple

come to real estate investing made simple grant cardone here every Monday every Monday I come to you to talk about real estate how to invest in it how to buy it why debat how to find it why it works why you should be investing in it I want to get you invested in the game in the real estate game why do I want that so badly by the way you don't have to do it with me go do it on your own if you want to that's what I did nobody was all for me to do it with them so I learned the game I spent three years shop in real estate every weekend in Houston Texas if you know my story believing believing hey this is a piece of property they're not making any more of it if I could get something to pay for that piece of property a building that sits above it if there's enough rental units on it it'll pay for that property beneath it and if I can if I can leverage time and debt then one day I'll have some money okay first deal with seventy eight thousand dollars I'm ready when you guys are first deal with seventy eight thousand dollars my next deal was 1.9 million okay the first deal didn't work every deal after that did and there's one reason why the first deal didn't work and there's one reason why it didn't work because it had one door avoid the one door syndrome stay with us we have a great show today [Music] [Applause] [Music] [Music] [Applause] right here in Grant Cardone real estate investing made simple every Monday 12 p.m. Eastern Standard Time I come to you to talk about real estate the real estate game how to buy how to find it how to make it work how to manage it how to get debt on it how to get cash flow from it and why it's so important for you and your family why I believe it's so important for you and your family to be invested in real estate now the kind of real estate we're talking about folks is that real estate that in that it provides cash flow to you and your family if it doesn't provide cash flow I'm strongly suggesting that you leave it alone okay if you want to do the stock gain go do it I'm not your god you want to go do crypto currencies good I'm not your guy I'm not saying those are good things or bad things but I can show you over time in fact I have a graph here I don't know if I can show them this from my computer John can I show them from my computer a graph yeah okay oh you've shown the graph chart am i show the graph yes you how you showing a graph I'm not even showing yet there you go okay so this is a graph for all of you out there by the way our phone number is 305 eight six five eight six six eight if you want to call in if you take the last 20 years go to a corner make it smaller if you take the last 20 years stock market verse real estate by the way I'm going to explain this graph to you in detail if you take 20 years ago from today so a way to make it smaller now okay and compare the S&P 500 to real estate investment trust doesn't look like a big difference does it okay just kill it in okay the REITs paid out eight point seven percent and the S&P 500 paid out five percent five percent does it look like a big difference just remember this the S&P 500 is at 22,000 okay the S&P is at twenty twenty twenty four hundred dollars the Dow Jones is at when he almost 22,000 where it Heights and ever before historical heights and REITs real estate investment trusts by the way which I strongly recommend against still did what looks like a little better than the S&P 500 but this is what you don't know first of all that's sixty percent better who would take a sixty percent better return see people that invest money they don't really most people just don't do enough understanding of what changed here right three point seven percent it's actually almost eighty percent better four points better than the five that's eighty percent when you start increasing your returns by eighty percent it's unbelievable the other thing that you don't know is this this is a REIT it's a real estate investment trust which means this and I strongly recommend against investing this this is just another stock place all it is okay the reason this outperformed this the SP is because the dividends here were bigger over twenty years by the way with the bigging biggest housing stock a housing drop in the history of the united states is included that's why you see that big drop right in the middle of that graph that includes the biggest drop probably in the last hundred years of real estate in america now this is not what we invest in and I definitely don't invest in the S&P 500 even though it's all popular another reason why I wouldn't invest in it is because it's popular a reason I wouldn't do this is cuz that's not real estate the kind of real estate I invest in is real okay it's real estate the real estate you invest in with the real estate investment trusts even though it did better why did it do better because real estate always comes back over time number one number two it provides cash flow number three if these people would have been invested in real something real something real is something you can google you can fly over it you can see it you can look at it when you buy a REIT stock okay ask them to show you a picture of the of the house of the property of the asset go touch it go see if you can touch it see if you can fly over it it's a piece of paper okay there's some things that happen in real estate in real real estate that we do can we show them a picture that deal I'm looking at right now yeah show the video see this is what I want I want something real they could hear me right yeah okay see how real this is this has got a shopping center next to it it's got how many acres of land is this on Iran maybe you can give me all the details on it it's got a swimming pool 296 units it's got concrete block okay it's got cars parked in front I can see the tenants I can see outside of it I can see the entry the driveway I can see how I would improve this place in fact what we're going to show you they kind of looks a little rundown with that pool shot right there well we're going to show you oh wow man the child's park is in the wrong place I can see that right now oh no patios outside we got to add some patios see see what I can see here's something real what can I do with this place now today what we're going to talk about is we're going to talk about what I call forced appreciation it's called forced appreciation I've talked in other shows about how to buy it how to find it what to look for okay I talked about the four quadrants if you have if you don't remember what the four quadrants are go back to the previous shows and check out the four quadrants I talked to you about the different wastes about real estate you're gonna buy yourself you're going to invest in a REIT number three you're gonna do it with a syndicator and number four you're gonna do it with Cardone capital which I believe is a superior way for you to buy real estate today but by the way I believe it's superior to you buying it on your own okay if you had money I got a buddy right now he's got 40 million dollars sitting in cash he could go sit and by his own deal I said dude don't do it by the deal with me why would I do that grant I can own 100% of the deal that's right and grant I don't have to pay you a management fee that's right but here's the deal bro you can't find the deals I find you can't find the deals I find you can't get the debt I do you cannot manage four five six thousand units you can't buy deals the size I can buy and by the way you can't buy the deal even if you got the cash okay so remember the four quadrants what were the four quadrants it was price yep don't say meant downpayment Noi Noi cash-on-cash okay now I'm gonna show you how to accelerate the four parts of the quadrant by using force depreciation I'm gonna have to give you some details on this we're gonna take your calls I'm gonna give some t-shirts away today to the collars okay I know that'll load up the phones if the phones aren't already loaded up this is by the way our favorite show of all our shows I do a show on Monday Tuesday Wednesday Thursday and Friday I guess that's every day of the week plus I do extreme Saturdays and Sundays I do this for free out I saw the Grant Cardone I saw this guy talking about me just he's like he just pulls out of his ass yeah dude I do pull stuff out of my ass we take about 20 minutes to get ready for this show before the show I don't need a lot of preparation I take a topic and I cover it with you and I take your calls and I show you how to do it and by the way did I say it's free why cuz I want you in the real estate game I'm gonna show you when we come back from break how to do the forced appreciation game which means I force the value of the property up and I force the rents don't go anyplace this isn't landscape design this is lifestyle design Steve Griggs is the best landscaper on the planet and gives you knowledge and data that you can't even find on Google featured on Huffington Post entrepreneur.com Grant Cardone TV Steve Griggs is the entrepreneur built and designed to help you make your home become the lifestyle of your dreams for more information visit Steve Briggs design.com that Steve Briggs design got 20 years of experience in the real estate game cash now PA is the place to go for buying homes for all cash with no fees any condition with BV being accreditation Brea boot owner of cash now PA has been helping customers get in and out of homes creating better spaces for living and making a difference in local communities with the focus on buying homes all cash no fees with any condition also be BBB accredited visit cash now PA com that's cash now PA dot-com to get started invest in real estate like grant cardone but you don't have the cash to invest yet reach out to Chris root and his team where he will show you how to invest in real estate to build cash without credit or much money by learning how to wholesale real estate we'll show you the right way to build cash so you can invest in multifamily apartments and other real estate investments like ranked cartel sign up now at Chris trew com that's Chris rude calm what we lack can be found you lack vision purpose and goals it's truly built upon discovering your excellence we apartament create a vision workshop where we create and hold an image so strong in your mind we show you how to live up to your true potential find what you've lost or what you've always struggled to find with a unique motivational style a unique skill development we empower others and share knowledge and we're looking for people to join our team to help create more abundance in your life and in the lives of others visit part m.com that's partum calm to register become part of our team that's partum calm hey welcome back to real estate investing made simple grant cardone here every Monday 12 p.m. Eastern Standard Time I take your calls we're talking real estate I make it simple for you I break it down and today I'm talking to you about how to force appreciation in other shows I've talked about the four quadrants your price what is your price in this case down payment Noi and cash on cash now watch every deal is different folks everybody's asking me what book should I read you have to walk the property you need to google the property you need to get on the property you need to crawl inside the books this deal is 40 million dollars I have it under contract it's one of our one of our three deals by the way that we have targeted for our fund capital a Cardone capital it's a forty million dollar deal typically I tell you this deal takes one-third down this deal does not take one-third down this deal is gonna take twenty million dollars down another reason why I opened the fund was because I've been sitting here every show saying look don't buy little deals my wife said if you're telling people not to buy little deals like what what are they supposed to buy I'm like she's like I said well yeah you know they need to wait she's like people that's their you don't tell people to wait grant show them how to buy a deal okay and then she says why don't you just have them buy deals with you okay I'm like look 20 million dollars most people don't have 20 million sitting around 20 large to put down on 40 why would I do that okay because I think there's value as I Drive down the street of this property now check this out what was the the NOI on this deal at purchase 11.8 no no it can't be that low can't be what's 1.5 I had a 1.5 divided by 40 million okay what is that that's probably a three or four percent I think it's a four percent in a while okay now watch this is a four percent Noi most of you asked the question to me constantly I'm sorry that you said the number what it was 120 million yeah yeah it's four six it's a four it's a four four cap right what is the cap a cap is the return if I pay cash and didn't do anything I would get a 4% return on my property if I put 20 million down I'm gonna get about 5% on my property on my return cash on cash on this deal is what Ryan did we have it cash on cash we do it cash on cash is it's gonna be almost nothing it's six point six okay it's gonna be six point six percent so a little more than the NOI okay because you get you get leverage now if you're lost right now if you're lost right now okay the point is not what the numbers are today it's what can I do with it remember the four things I said when I go to a property I'll look at number one does it feel good okay we can kill that it's a little noisy can't can can do we like it do I drove this property this one property I'm looking at right now that I'm gonna leave the name incognito I said do I like the field when I drove on the property from the street I drove through and I'm driving through this neighborhood and I'm like dude this is a freaking this is this feels good and then I got into the property I'm like this feels terrible right Ryan what did I went from like oh my gosh - oh my gosh this is horrible now there's a play in that there's a play in that okay you got to know that I'm like what could I turn this into because I had the feeling when I drove in from the street and then I lost it then we got the deal because we started doing some due diligence now this is called this shows called forced appreciation how do I force the appreciation how do I get to value this property up now the old way is I'm gonna go rehab the interiors I'm gonna get real I'm gonna fix what what am I gonna fix run I'm gonna fix the the kitchens the floors I'm gonna put wood floors in that's the new thing everybody wants the gray wood floor stainless steel I'm gonna do some kitchens I'm gonna do you're gonna make it feel good I'm gonna take the popcorn off the ceilings what else could I do on the inside are they on the inside on the inside no no most people just gonna do the insides yeah paint fans I'm gonna paint puts the fans in fix up fix new toilets in the toilets take out old termites take out the termites okay and then I'ma raise the rents okay now the rents on this property already eleven hundred bucks a month okay there eleven hundred bucks a month and I'm like man what could this property be we were there this weekend what could this property be what could I do I went back to where it felt good it felt good when I drove in okay live here huh who could live who could live here remember the four things hey does it feel good what are the people that live there I'm sorry the people that work there and live there remember that remember the piece yep okay what are the processes in place this place is horrible yeah the people that work there horrible the people that live there horrible the processes are negligent negligent at best little signs $100 referral fee who's gonna see that when they're parking paying attention nobody's paying attention anything the pool is damaged the place is a nightmare once you get in it somebody hadn't been paying attention and they've been making money now to do this deal there's a loan on the deal at 20 million when I started doing my due diligence I found out that this loan expires in 19 months so there's two things I'm gonna do to force the appreciation three things really okay the inside the outside there's where I think I'm gonna make my biggest play right here in the debt okay but you got to have all the information okay look the insides a no-brainer everybody knows how to do inside it's okay we're gonna spend five grand a door maybe six grand a door two hundred ninety seven times what is that a million eight I'm gonna spend 1.8 million dollars and I'm a rehab the interiors by the way let me tell you what I also wanna do I'm gonna getting rid of every person that lives on that property 99% of the people there and I'm up throwing the last guy I'm I'll just get rid of him just to make it a hundred percent I'm getting rid of everybody I'm gonna change the entire profile of the place which means I might actually not make money there for two years why would I do all that because I'm a force appreciation I'm gonna force it I'm gonna make something happen that that is not yet met to happen okay I'm gonna go spend another million two on the outside of this property let me tell you one thing I'm gonna do I'm gonna take remember when I told you I drove this property online oh my god that feels good there's a bunch of townhomes $350,000 how much are Emma what do you think there's 20 of those yeah maybe 20 25 townhomes there's 350,000 they're completely sold out and they have a tile roof on it okay the roofs I have on my properties are brand-new there is no reason to put a new roof on my properties except for one reason I'm gonna extend the illusion I'm gonna extend the illusion I'm going to spend another million dollars on a roof that I don't even need to buy cuz I'm gonna extend the illusion of these $350,000 homes so that when you drive in on put a big gate outside I'm a match the gates that they used on the townhomes okay I'm gonna add patios just like they did I'm literally gonna steal from the designers and the architects of a successful project and I'm gonna bring it back into this this basically government project affordable housing affordable housing project okay where they're not treating the tenants right and I'm gonna force the appreciation and what I'm gonna do when I do this is I'm gonna take the rest of 1,500 bucks a month what is 350 a month times 297 times 90 percent one to ninety seven times what you saying I'm probably gonna spend two million dollars right here by the way I might spend three point eight three 350 plus the 40 I got in at 297 plus maybe a million dollars of cash flow I lose I'm gonna be in at forty four eight but watch what happens okay remember Oh twenty million I got now I got 24 million dollars down how much is it 850 what was the numbers it's a 58 50 divided by 0.05 is how much sixteen million dollars I bet you it is let's see seventeen seventeen million okay I'm gonna increase the value this probably by 17 million dollars because what I did was this I took an $1,100 a month on my rent and made it feel like a $350,000 townhome stay with us I'm taking your calls you're watching real estate investing made simple we think user experience rethink the digital sales process and rethink how you communicate with your customers pixel 506 is a digital design agency marketing and development company with one goal in mind how do you effectively simplify your digital presence to make your prospects do more business become excited and never feel confused when it comes to understanding what it is you do working with companies like future labs New York Metro Transit Authority and more pixel 506 has successfully grown businesses increased leads and created a lasting digital and social presence to drive more revenue and increase our alive if you want this for your business you can learn more about pixel 506 at pixel 506 three concerns homeowners have when they remodel their own can I get it to look the way I want how fast can I get it done and I want a fair price at Bay city's construction we handle all three up front for you we get you the best price the best service and every teaching bathroom home edition and home upgrade you're looking for right now serving all of Southern California Bay cities construction has no hassle pricing they guarantee the best work and give you a whole design concept from start to finish come to our office and let's get you started with the best construction you have seen yet visit Bay city's construction com that's Bay city's construction Comm to get started right now the ideal tropical-island experience you have been waiting for with our Bernie and palapas design and build the backyard hotel or lounge space you desire with paradise palapas the eye of the Caribbean and the most tropical places brought right to you whether you are just seeking escape from the Sun poolside are wanting to transform your backyard deck into the dream outdoor kitchen paradise palapas will build it for you don't dream it live it visit paradise palapas calm that's paradise palapas calm and we'll get you set up today are you tired of buying ads how much would five times more visitor from search engines like Google or Bing do for your business link research tools helps you increase that free organic traffic with companies like Hertz MTV and LinkedIn have increased the revenue as much as six hundred percent using link research tools we have offerings to get your business to become the dominant force on the Internet the secret of Internet traffic is what we give you and convert that traffic into cash flow for your business learn more at linked research tools com that's link research tools comm and sign up now hey welcome back to real estate investing made simple I want to get you in the real estate game earning cash protecting your capital in getting and gaining appreciation today we're talking about forced appreciation how to force appreciation I talked about three ways on this product by the way where we control the product it's why so many of my friends are investing with me at Cardone Capital is because they're like dude I know you're in control I know I know you know what you're doing you've done the homework there's only four ways to buy the real estate you're gonna go do the research and buy your own deal number two you give your money back to the stock market people they call it a REIT they trick you saying this real estate it's not the third way is to send the Kate with somebody you don't know you give them five thousand bucks for fifty thousand bucks or a hundred a bunch of people throw money and nobody's got any money in it really I mean the syndicators are just syndicators all they do is raise money they wouldn't do real estate if they didn't do real estate with your money and the fourth way is the way I'm suggesting to you come in as my partner I picked the deal I'm in total control you basically you basically bet on my bets okay you come in on big giant monster deals where we go in and do the kind of project I'm talking about I'm gonna get a loan I'm gonna send this loan for twenty million dollars I will be approved for this loan no doubt about it or they wouldn't accept a contract with me I'm gonna pay the seller 40 million I'm gonna assume this loan I'm gonna write them a check for 20 million large I'm gonna spend another 4 million bucks three to four million dollars improving this property so I'm gonna be in this deal we're gonna be in this deal for twenty four million dollars but watch what I did okay by doing this in my market I can raise the rents $350 Brian gave me the wrong math 350 blame everything on Ryan times 297 it's a hundred and three thousand dollar-a-month increase okay remember I'm making four percent of my money right now while I buy okay if I pay cash I'm making six point six if I use the debt and don't do anything but remember I'm gonna spend the four million dollars watch what's gonna happen times twelve times ninety percent because I won't get it on every unit that's a million one hundred and twelve thousand dollars in added cash flow now was earning 6% to that six percent I could add a million one twelve let me just do this math real quick six point six percent times twenty million that's how much I put down plus a million one twelve and I'm gonna take a collar okay this property will now cashflow 2.4 million dollars a year I have 24 million dollars down how much does it make now that makes ten percent of my money but you haven't heard the whole story because the third way to increase value is to replace the debt the third way then to force appreciation is to replace the debt remember I told you earlier in the first segment that loans doing 19 months it's gonna take me 19 months to do this project roofs kitchens floors gates security replace all the tenants get rid of the bums okay that's right I said the word B I used the B word on TV bums they don't appreciate the property man make them go okay I'm gonna raise the rents it's like my st. Barts trip somebody said why is it 25 grand you don't need the money I said yeah I did but 25 ran gets me to write people gets me to play us okay I noticed caller zone man cocky get through all this man okay you guys on the phone hang on hang on to your okay so look watch this watch this I'm gonna go back to the marketplace and I'm gonna say hey bro look check this out brothers and sisters let's get a new loan on the deal and they're gonna go back and look at this deal and they're gonna be like what was my noi going into this deal yeah well now it's gonna be one point eight plus one point one it's gonna be two point nine that's my target two point nine divided by 0.05 they're gonna value this property watch this what just everybody ready oh I'm ready oh I'm ready they're gonna say dude this thing's worth fifty eight million dollars now diggity dog dog fifty eight million okay fifty eight million they're gonna say you need some money down brother and they're gonna be like how about putting like like 13 million down oh by the way how much do I have in it right now I got 24 million in it they only want 13 so I get 11 back I get 11 back okay see what I'm saying huh okay this thing's gonna earn 2.4 million I only have 13 million down now you guys track of me you follow me if you're not tracking me you're not ready if you know you love real estate if you know you like cashflow if you like the appreciation if you like the tax write-offs you're ready to invest but you're not ready to buy a deal I'm just telling you if you don't understand what I'm doing if you're lost it's cuz you're not ready it's not because I'm stupid I'm stupid about some things this isn't one of them I'm stupid on how to use a foreigner I just don't know how to get there wait a for okay now now what I'm gonna my cash flow is gonna be 2.4 million it's probably not gonna be 2.4 million because I got more debt now so let me just do that real quick and then I'm gonna take collar no it's gonna be 2.7 you're definitely fully fully fully loaded okay well sir thirteen million thirteen million times six percent no thirteen million what do you mean forty five million this is my cash man see Ryan's not ready that's why he invested with me it's 45 million I got 45 million dollars brother debt on this thing I'm gonna end up with more debt on this thing than I paid for it I paid 40 40 million for it this how you get rich in the game you understand I paid 40 million I'm gonna have 45 million dollars for the debt the beit's gonna value this thing at 60 million bucks I'm gonna make 18 million dollars I'm gonna take 20 million dollars that I put down and I'm gonna make 18 million dollars in 19 months this is how you get rich folks this how you get rich leverage man you get assets you get assets you get something that produces income and you figure out how to get that machine that's producing income to produce more income it's called forced appreciation let's talk to take the first caller and then I'm gonna tell you how much money we're gonna make here Rose go ahead what's your question hey hey how you doing Rosa wait I wasn't one of the ones who was complaining about the waves worth the wait yeah yeah I love you baby i love you i love you you love me we love each other yeah yep right right outside of New York City so all the property is really nice yeah because everything is already pretty much taken yeah and anything that is available is ridiculously overpriced there's no money to be made yeah I have some friends who in real estate but basically they do short sales and stuff not on the scale of what I'm interested in yeah but it's you know it's somebody so their advice is to buy something that's already small like maybe a four unit and build on top of it because there's no way I can find one core units or anything yeah believe it build or take a vacant land and build on that yeah so look here's the deal okay you shouldn't be building anything cuz you're not a builder right right all right you got no business Pillman so so you need to move man you need to move out of the state you can't see this is what happens to people they're like I want to buy real estate but it's too expensive in San Diego or Seattle or Vancouver or Toronto or New York well good see the problem you have is you you aren't mobile if you're stuck in one place you can never find a good deal you guys see me going to Houston all the time why do you think I'm going to Houston because there's deals in Houston okay I know what a deal is I was I was going to Houston before this freaking horn give me the numbers on what happened - no yes it was so you got to be willing to move and that's why so many people out there that one of my real estate should actually not be buying it because you're stuck in a market you're stuck in a locale that maybe is already too rich you follow what I'm saying yeah so now the alternative is you know well yeah exactly you can't come down here because you can't manage it you're not here so I agree that you should go where you know but look it's got to work - so you either got to figure out a force appreciation on that property I would not build anything I'm just telling you just just putting on gates changing the street putting on a roof it's already enough work when you start building something from the ground up and you don't know what's gonna happen in that market over the next 18 months 30 months or what's gonna happen in in permitting other people come up with product that builders always go broke real estate investors do not go broke Sam Zell one of the great real estate investors of all time says I never I am never the first person asleep in that bed what he was saying was this we don't build we buy we buy stuff that exists already like that property I just showed you that exists already that we can literally move into and get income from by the way I'm getting income the whole time I'm here right okay thank you for asking that question so look this is what I'm gonna end up making I'm an end I'm making a million one on this property free cash flow I did the math I'm no one is what it should produce by the way when you got new debt only got 13 million dollars in the deal now divided by a million one divided by 13 thousand yeah that's my equity okay good this is loan up there I just want to use oh that yeah I'm sorry this is my cash cash down sorry divide about 13,000 that's 8.4% notice my return went down right I'm earning 8.4 percent on this deal okay but I'm controlling a 60 million dollar product with thirteen thousand thirteen million dollars down okay now what happened with this remember I put twenty four million dollars down right here all that money that eleven million dollars goes back into the fund you get it we all get our money basically reimbursed to go do what with that money more real estate you buy more deals get more leverage okay the class you need the class your kids need is not adding and subtracting they need multiplication and picking I need to pick things that can multiply not add and subtract adding and subtracting is what you do now you go to your job and you add hours they give you money you add hours they add money okay then you go home and you spend the money and that's called subtracting how'd you get riches through multiplication you take money I take the money I have in my pocket it's what your parents never taught you I take the money I get rid of the money that's being subtracted by the seer shake of depreciation it's going down in value everybody agree right now that money is disintegrating ask the drug dealers ask Escobar okay his biggest problem was dude he can get cash they put it in the ground and they go back and find the rats ate it the mold ate it the water ate it something ate it okay it goes down in value right it goes down in value but so Escobar is like man if I could just get that money and I can buy buildings with it to produce income and I get rich cuz I'm starting to multiply you want to get rid of your money as fast as you can man get rid of it as fast you can put it in an asset that that produces income and starts paying you a little pieces every month and you take this money the faster you can do that the more you can invest in it and keep multiplying that that that process you're either gonna buy yourself let me talk to another caller you're either gonna buy the property yourself you're gonna invest in a REIT that is not investing in real estate you agree with that 100% it's not it's investing in the stock market third way is to buy to invest with the syndicator somebody that sins to gainer okay and they basically they wouldn't buy the real estate can't buy the real estate couldn't buy the real estate if it wasn't for you investing with this or going to do it well the problem with most indicators is they're syndicating because they don't have any money the reason why the fourth way is you is yes you already have the money you're just allowing friends family in high net worth individuals accredited investors yeah credited investors what is that because somebody's like oh cardones now he's letting he's that he's only he's only letting rich people invest yeah well then ain't kind of true yeah it's kind of true I don't want anybody crying saying hey he took my last five grand so the the average investor right now and our fund is about five hundred thousand dollars this Cardone Capital calm these are sophisticated shrewd you know a guys giving me a million bucks this week he's worth I don't know probably eighty million bucks he's given me his first million he'll probably end up giving me ten we have families giving us five hundred a throw saying I want to do five million with you these are very shrewd people that understand that I'm creating a fund to disrupt syndicators and REITs you got to get your money out of the bank get it out of the backyard get it out of the wall you have in your your closet get it out of the safe you need your money to start growing and the best investment out there folks is multifamily big giant real estate deals go ahead run you well know the accredited investor yeah there's a lot of confusion behind it all it means is that you make more than 200 K a year or your net worth is a million bucks not including your house it doesn't mean that you have to go through a special process it doesn't mean actually verify investor calm it takes about 20 minutes and they get the letter yeah and that's all they need to get what is it again it's called verify investor talk verify investor calm you send me that note and say we're verified how'd your CPA send me some more I'm good okay now what you need though to invest with me is you've got to have you got to be accredited and positive so if you're accredited and a negative you ain't investing with me okay we do not we we have denied people funds before I'm like I don't want it I don't want it I don't want to play with you I know you're a okay I know you complain about everything nothing's ever right with you okay look I am the biggest complaint or there is that's why I don't invest in other people's stuff I have to do I have to invest in my own stuff I cannot do it with other people because I'm a and I know it so no one should let me invest with them it doesn't mean I'm not accredited doesn't mean I don't have the money it means I'm a okay if you a I don't want you in my fun okay cuz you're not gonna have any choices we're not gonna call you up and say what do you think about the gate I've already made a decision on the gate okay I've made a decision to replace her roof that doesn't even need to be replaced who would do that first thing you said when I said that about the roof would you say not practical do this stupid that's not yeah I carry the illusion I carry an illusion of something because when you drive one to this property you're like oh my god this is nice and then when you get onto the apartments you're like oh my god this is terrible next caller and what I'm anyway Houston big shout out to my friends my peeps in Houston hey you survived harvey better than anything I have ever seen Anderson Cooper and Fox and all those freaking merchants of chaos are over there showing all the flooded out Beltway 8 and they Addison and and Sugarland's all the most most of the towns not under any water at all we shopped all three of the properties that we're working on over there they were like totally great right it's dry it was bone-dry it's wetter in Miami right now though he had b-boy Tim in What's Up player good man good yeah good that good how'd you survive I want to know I was looking on investing before the hurricane yeah and now in the aftermath is it still a good idea to invest or should I pick a different area no dude I love Houston brah I love Houston I'm telling you I love it if you can go big there though the problem with Houston is not the water okay 27 percent of Houston's gross leasable area may be flooded today representing 55 billion dollars in property value but let me tell you what happened okay you know they had an oversupply of apartments in 70,000 70,000 70,000 apartments in Houston they had an oversupply we talked to some of our properties that were under contract on right now they were getting five Lisa applications a week they got 200 last week well so it basically is gonna wipe out not apartment renters it's gonna wipe out people that owned homes didn't like their house anymore anyway I've been in my house three or four years now I hate it and I'm like I want out of this I'm bored with it I want a new life flood comes along good I'm getting out it's uh yeah okay well in a cordial Wall Street Journal and says this is before Harvey Houston had a glut of rentals not anymore yeah seventy thousand apartments were on the market now they're now they're actually taking off online rentals so dude is do please they don't want to over it there was one property that was rented online they took down the online because they were getting so many applications so I big L dog big al you know Big Al means love love leverage my love handles dog okay okay so so I love Houston right now absolutely love it by the way you got to know where to be though there's parts of Houston I wouldn't be south of the 69 okay I wouldn't I wouldn't be in anything that flooded don't touch it good point we passed on a deal over there six what three months ago maybe three months ago now 1200 water issues they had water issues they had historical water issues most alone yeah okay I'm like I don't need this I do not need a problem I got enough look I got enough stuff to do here right I don't need a flood I don't need flood insurance either okay flood insurance is very I got my hands full remember when we're buying pieces of real estate what we're doing is we're playing it out okay we're playing it out over time time okay with income equals appreciation okay I either wait for the appreciation or I force it or I do I do both okay so I have sex I wait I force I do them both okay you know who time starts doing together that was pretty good now the same to me how do you get a book out how do you get a book out man okay you write the book you either wait for people to buy it you force it into the marketplace or you do both okay how do you get a social presence you wait you build it out over time YouTube Twitter Facebook you wait you just kind of wait for people to find you or you force it or you do both but people people do one or the other be patient yep be patient okay once you be patient and fight once you be patient and impatient why can't you do both of them and and and get the benefits of both of them okay same thing in real estate right I could sit and wait most of the properties that we buy from people they're just waiting there like they don't need imma take the next caller let's roll okay they just wait because they don't have to force the appreciation new buyers come into a marketplace and typically force the rents up because they have to because they paid a price higher that forces them to actually increase the rents go ahead what's going on evil probe all over season Michael Jordan was my idol growing up man and then going into business in my city is one of Michael sort of the business world and I did everything well what a couple and thank you so much yeah following you for a while I'm looking at this property here in cool Illinois and it is $700,000 send it over to Ryan let's see here loan amount is five hundred and twenty five thousand okay for students twenty-nine thousand 167 and once he here built in 1978 yeah 11.0 yeah yeah okay so let me just tell you this first of all the cap rate if you guys are looking at cap rates north of six the first thing you have to assume you're in a crime sound yeah anything north to six you got to be like oh there got to be something really wrong here yeah yeah well I think you're the crime sound before they're not real I think it's more likely that you're in a crime zone crack zone what's that other that other drug they use methadone you're in some kind of zone and it ain't the car down south hate the Cardoza the car down anything over six folks look there so there's such a shortage of multifamily apartments in this country I'm telling you particularly affordable stuff remember what we're looking for over time is we're looking for a thousand I mean I would even say a $1,500 a month rent isn't affordable down here in Miami now I don't know where you live if that's affordable you know if I go if I go to Charleston which we're looking at some property in Charleston South Carolina right now I'm looking at $800 a month rent there's affordable so I might I might change that okay from 802 to $1,000 I don't want to be south I don't want to be too far south of these numbers though because when I when I get when you get to those $400 a month rents guess what why is it 400 yeah it's depressed for a reason right I don't want I don't want to be in depressed areas and I don't want to be in $3,000 okay I don't want problem I don't want government subsidized apartments I'm not the guy I know a lot of people make a lot of money doing that they're typically truck truck kind of millionaires trucking for of f-150 kind of millionaires yeah I'm or a million dollar man yeah yeah yeah you broke you bro you got that you got that baby money you're gonna get rich owning a bunch of Section eight okay and and you know me I mean I've known people that did that they had forty forty Section eight homes they hated their tenants they hated their properties you know they're millionaires they make a lot of money but dude they're misers they don't they shop at Walmart no offense to Walmart but I mean it's cool but everything's got to be on sale it's that kind of millionaire mentality you know they don't give to charity they'll help out because they're always worried about a shoe dropping so I don't want to be on this end of this thing and I don't want to be out here it's a three thousand dollar mark I want to be right here in the middle okay these people get squeezed okay no offense I'm not I'm not saying this in a bad way this guy this guy in the middle right here is not what are the rents there at that property which one see mentally sure we share though because the other day was really important you said the thousand dollars the 1500 range yeah the people cuz the way they're qualified is three times a month they're in them right who's thirty-six to $54,000 you know what they need to make so I I'm right here in the band in the middle class in it see see I need three times my income right three thousand dollars a month or forty five hundred a month everybody can make that man when you drop down below that why are you doing it you're buying it because it's cheap and look if you're gonna cuz this cheap bro nobody's ever gonna buy it because it's special it's just not special nobody pays for cheap it's a Walmart purchase that's why I always say how close to Starbucks how close to Walmart I'm tells me about the klom in the area okay don't show me the big mall like I'm looking at a deal in in South Carolina right now call the car dealer up there hey my name is Grant Cardone yeah grant what's up grant we're not doing any training dude I'm calling about across the street from you an apartment deal what's the neighborhood like not the apartment cuz I know he don't live there what's the neighborhood like it's a little rough man tell me about the shopping center just south of that three blocks looking at a Google map tell me about that shopping center grant every time I Drive by it I wonder how it's still there so see that's depression right so you gotta you want to avoid that okay look the game in real estate is to protect your capital number one goal is to protect that dough right get the money out of the bank the money's in the bank y'all think it's safe at the bank you got 300 grand at the bank go ask him a thing give you the 300 grand you'll find out it's not safe because they don't even have it okay the first thing you wanna do is get the money out of the bank why cuz it's going down and value they even turn it into digits they don't even trust the money they turn it into to cryptocurrency digital's right so you want to get that money out of the bank but you want to get into good properties you want to be in the middle here okay you want to be in the middle of the bandwidth this is called affordable this is called cheap this is affordable fifteen hundred even 1,800 I could I could I could make a a case that in Miami Houston I could make a case houston gallery a two thousand dollars a month is affordable rent mm-hmm right so so looks avoid the cheap dude that's what your daddy taught you to do the way you get a good deal is you get a good deal no the way you get a good deal is you buy a good piece of property okay you're better off paying more for the property today than paying less you pay less today somebody will pay less tomorrow that that is the premise you need to if you'll pay less and won't pay more trust me the next guy will pay less cuz he won't pay more either mm-hmm okay next caller drop the bomb this sick it's stupid it's ridiculous nobody teaches this course no oh all those courses you guys are how to buy real estate with no money now this is not a no money down course this is how to make money this how to get rich in real estate okay I'm so Mike Mikey what's up Mikey are you like you remember that give it to Mikey Mike he'll eat anything Mike Mike Mike like go ahead man hey yeah so I'm not I mean I'm not into this thing big-time yet or anything but I want watch a lot of your stuff and I've been reading a couple your buck I'm just looking to understand the total real estate investing a little better yeah pointers do you have for me go back and watch the other shows yeah the second piece of advice that would give you is you need to start even if you're not in a financial position to start buying real estate you need to start shopping real estate you need to go walk properties how many properties if you walk with me right gosh a lot I you know I mean 20,000 yeah I mean how many no exaggeration we do four or five ladies 1000 units me and Ryan have walked in the last 12 months I'd probably walked I don't know a hundred thousand apartments I Drive them I walk on my drive through the gates I break into the properties I meet people I fly over up my droser drone okay I'm at home at night searching property research and it when it traded last I've looked at hundreds of thousands of property knows the bushes by baby I know the landscaping I know it works out the NARC I know where the Sun is good right the moss is growing onions okay I look at the labels on the doors to F once - 116 this ain't no we got to get rid of it wants to limit f-116 yeah yeah it's comes fighter jet once it's not a fighter jet it's an apartment but huh I said it's not a fighter jet it's an apartment yeah yeah it's crazy okay Christian what's up buddy great real estate market by the way three ways to force appreciation interiors exteriors debt be a fourth way to all the above okay go ahead got talk to me it's like when you rent from me you gotta pay don't be late either tell me late man you got to run a tight ship when you do this deal by the way okay management's a big issue here folks when people are late they can't be late dude you got to pay me one down go here brother uncle G come on man what's up a little Neff amen I got to I got two deals I want to talk to you about today okay I got one that I'm looking at let's talk about the one you love doing let's talk about the one you love tell me about the deal you love we got 22 unit and by the way forget the other one you already told me that you're not interested in the other one so we're talking about all right so we got we got 22 units in this one yep at base that's about at 250 Union apartment complex someone's selling off 20 to you the faith Bell yeah now you're not gonna do that no okay because because you're gonna be responsible first of all you're gonna you're gonna never have control of the property so okay that's called a broken condo deal mm-hmm so so that was an apartment deal they converted to condos that am i right on this maybe yeah yeah yeah so they converted to condos they sold to 200 and some odd units and they got 22 left over and they want you to buy okay so what what happens with these old condo projects is everybody gets in there they're all excited everybody's got an agreement when they first build the building like the place I live that everybody's happy in the beginning and then all of a sudden people aren't happy hey we got to change this and we got to do that and that's got to happen and we don't want and then people people overpay for their stuff and then they can't fix it and then you got what nobody's abiding by the rules anymore they can't pay their freakin HOA fees and everybody hates everybody and the next thing you know 20 years goes by and ones red ones blue and ones purple and once like ignored and ones moved out of and and then they want you to buy 22 of them okay okay you got to you have a bridge in your neighborhood to have a bridge in my name yes there a bridge anywhere in your neighborhood no why come to come to Miami you jump off of one over here okay so don't do it the point is don't do it dude that's not it that's you're doing it because it's cheap is it cheap is it a good deal it's an option yeah yeah why is it an auction bro you guys got an answer oh my I'm bout a bank deal I'm buying a bait deal why is it at the bank why do you think it is at the bank cuz the last guy walked away from it he's like damn this thing got a disease okay girl girl says to you she's like I just got out of a relationship Ida he's a son of a yeah what's wrong with you okay she got she got she got it she got the VD she got she got there and whatever she got something dude she got something man okay like when people are telling you they man I left this place it didn't work for me don't listen to quitters okay so those people are dumping off don't listen to quitters don't get your advice from quitters don't get your advice from the tabloids quit watching TV and don't buy something somebody else lost in most cases I have bought deals from the bank before okay but look when you buy a deal from the bank you guys and gals you investors out there you better beware why did they walk away from the deal all right today we were talking about forced appreciation fix the interiors everybody knows that one i'ma go in and fix the floors i'ma paint it number two exterior what can you do landscaping will probably spend 200 grand on landscape on this property dude I'm a bomb this place with freaking I told Ryan this would I tell you about palm trees this weekend Ron that make you feel good no you want to listen it I told them I said I have never planted a palm tree just want a property they lost me money okay I'll bomb this place I could spend 300 grand on palm trees on this place and what I'm saying I got maybe three million dollars palm trees make people feel good man they're like man I'm and I'm gonna be happy here yeah you ain't gonna be happy but you won't pay your rent on time okay ex interiors exteriors and then hey man I'm gonna redo my loan how do i redo alone okay loans expiring in two years I didn't know this when I went into the deal grant this deals got bad debt on it that bad debts going away in nineteen months I'm gonna buy that deal nineteen months I'm gonna go back to the banks get a new loan get my money back control this deal let's get you in the real estate game folks there's only four ways to do it you do it yourself okay if you have the time the energy to resources you got the know-how you can get around you you want it you want to go collect the rents you want to buy the deal you can get the financing you can put the money down you know what you're doing and you know you know what you're doing and you know you know you know what you're doing and what you're doing it who you're doing it with then go buy some real estate okay the other way to do it is with me okay Cardone capital love to have you if you're an accredited investor you got a great attitude you love the real estate game you don't have the time you have the money you want to bet on me I'm doing the deal anyway I'm doing it anyway I'm gonna do it with or without you I'm gonna do the deal you've been watching me for 25 years do deals now you want to do it with me cuz I'm gonna blow this thing up I'm gonna blow it up big and I'd love to have you on board if not no problem but if you want to play with me it's Cardone capital com if you got questions you get it Ryan are ye in at Cardone capital com you don't wanna do that come to 10x both come with me okay you know when do they come to st. Barts with me okay I'd love to hang out with you somewhere if you want it you want to invest with me and go to st. Barts and go to the 10x click on let's play I love all your ideas god bless be great tomorrow's power player wins DS G&E show thursdays as young hustlers and fridays is the cardones zone thanks for watching I didn't get my t-shirts away are you an accredited investor with three hundred and fifty thousand dollars in the bank liquid earning less than half a percent hey my name is Grant Cardone I started with 300 $2,000 years ago investing in multifamily income-producing real estate and today that real estate is worth over five hundred and fifty million dollars that's right over a half a million dollars that pays me every single month returns of six eight ten twelve fifteen 20 and even twenty five percent I want you to come partner with me at Cardone capital comm if you love real estate you like passive income you like positive cash flow if you like preciate over long periods of time if you're willing to be patient let me go to work for you to come invest with me card on capital comp or slash invest now this is only accredited investors $350,000 liquid in the bank's come invest with me now at card on capital comport slash invest now [Music] [Music] manly right now I got to be obsessed or be average for you okay Paul kugel Paul kugel

Channel: Grant Cardone

Views: 44,043

Keywords: grantcardone, grant cardone, ryan tseko, real estate, real estate investing, investing in multi-family, multi-family real estate, apartments, how to find a good deal, good deal, noi, roi, cash flow, cash on cash, loi, price, retrade, due dillegence, down payment, reit, syndicators, buying apartment complex, tai lopez, gary vaynerchuk, buying property, cap rate, section 8 housing, good investment, how to increase the value, increase value, become rich, how to get rich, appreciation

Id: zs-s8IyUdI4

Length: 60min 58sec (3658 seconds)

Published: Mon Sep 04 2017