How to Get Started: Real Estate Investing Made Simple With Grant Cardone

my name is Grant Cardone this the cardones known every day every day I'm gonna show you how to get money a lot cheaper than you know get yourself in a position to sit in that chair right there are you the solution or you the box yeah we're gonna what does it take they don't know you and they're not thinking about you know you and they're not thinking okay forgot you my name is Grant Cardone you are in the car down zone where I wake you up I shake you up punch you in the face but mostly I'm that good up [Music] I want to show you exactly how I got started I'm going to show you how to start with a single family help if you want to two units four units eight unit over a billion dollars for the real estate I've accumulated all day every day I'm looking at deals not about how to find it how to negotiate how to talk to brokers and I'm gonna go real deep with you and I'm gonna show you how to buy and start with a smaller deal [Applause] [Music] [Music] welcome mundi mundi what is Monday Monday is real estate Reince echoes in the house would be back from Europe where we were in Wales the UK all across the UK London we were in London Cardiff Wales right yep Scotland Scotland I don't know why I want to always say hunter ville hunter ville interview or something ok today Monday first Monday of the December last December of the year we will never do this again that is Monday December the 3rd 20 and 18 hope it's been a good year for me man I've been up for you guys hope it's been a good year for me no it has been a good year for me trust me because I've been doing real estate all year long focused like a locust mm-hmm all right three oh five eight six five eight six six eight three oh five eight six five eight six six eight you can call me doing the show today we're looking at deals dealio day do you have a deal for me Ryan don't you I wonder I want to talk small deals today I want to stop them talk about how to get started what's your first two or three deals gonna be let's pretend you don't have any money in some cases y'all don't need to pretend you're like I don't have any money to do a deal you don't have any money we're in by the way we're going to go into this in in full-length Saturday I'm gonna do a live webcast Saturday Grant Cardone comport /r e if you want to spend four hours on this topic how to find a deal how to get a deal how to fund a deal how to find investors what if you don't have any money down what if you want to do a single-family house you got a little house in your neighbor and you're like I want to do that one house and Grant says don't do one house but look that doesn't mean I wouldn't do one house I might do one house if it was between January and I could sell it by June and get out of the deal and pick up 40k wouldn't it be okay you know like I don't take anything is an absolute with me would I buy a single-family home I have bought single-family homes I have bought one door I have made money on this if I had to do it again I would but I'm not saying it's recommended rep what's recommended is if one door is good then how good is 42 of them they just get better they just get better I was talking to Steve Harvey by the way Steve army he's gonna be in our 10x growth conference and he said to me I said hey Steve man here's a little tax strategy we were talking about back and forth and I'm like I said you know dude this would save you six and a half million dollars a year no big deal when you're making the kind of money you make until you multiply times 10 and he said to me is that what that 10x is man I said yeah dude 10x is a multiplier things get better when you can multiply how many doors you have because doors are dollars oh I love that don't you doors or dollars and they'll make you wanna holler okay my friends on bigger pockets look look I'm commenting back and forth with you we're done that cash flow which I'm gonna bad appreciation we're talking about exits how do you get started okay you got a little deal for me right I do the first deal is 12 units small enough 12 units yep so now I got 12 units how much are they so it is it's it's 1.3 million dollars man let's don't go so big okay 1 million dollars let me just do the math since he's already got me into this trap I want something 2 units okay okay okay I need 400 grand on this deal you have to put 400 grand down to buy this deal anybody that thinks that you're not gonna put 400 grand down on this deal there is one way to do that by the way and I'll be sharing that with you on Saturday where I'm was supposed to give me some small deals the one way to do this deal without $400,000 down because if you go to a bank a bank is going to want 30% down on that deal all right you're gonna find the answer 900 now the way to do this deal with no money or very little money let's say you could do the deal with 40 grand let's say you love the deal by the way that's the first requirement all the real estate do you love it do you love it do you love it because if you don't love it the next people aren't gonna love it either I could the owner and I could say hey let's do some let's do something creative here owner finance I'm doing a deal right now in Houston Texas where I'm offering them a way to bridge the difference between what I want to pay and what they want with owner financing and I'm like look you want an extra X dollars give me that zero percent interest so I could go to the guy and say look this is what I'm gonna do if I go to the bank I need 400 grand and based on maybe this this or that it's not going to appraise for that so it's not going to get you the number but I want to give you the 1.3 you want I love the property I want the property I want to buy the property you've owned this property 25 years you've only taken you've taken it as far as you can get this is what I'm willing to do I want to do owner financing I'm gonna give you $40,000 you're gonna finance 1 million two hundred and sixty thousand dollars and I need 0% interest that's where you're gonna start for three years okay and number one number two first of all number one is I gave you a price number two is you're gonna give me a 0% well that's that's ridiculous I'm buying your property for a premium right here right now number three this is what we're going to do we're not actually going to transact a sale because if you do then you've got to pay taxes and I don't want you to pay taxes so we're going to do what's called a lease purchase we're gonna do a lease purchase and a lease purchase you got my 40 grand by the way okay I have the option now to buy your deal for three million what was the number 1.3 1.3 1.2 601 point two six oh okay I have to manage the property and make a payment to you every month we're going to finance one point two six zero over 30 years but I have three years to pay this loan off at the end of three years I take your lease out and I give you 1 million two hundred and sixty thousand dollars at which time you get your money and I get the property in between I get to manage it and I got to pay you every month I'm on the hook you're off the management you're off out of the prize you don't have to talk to the tenants anymore I get to come in and do whatever I want by the way you don't need to pull up this lease purchase you don't need an agreement yet you don't need to go to get an LLC yet you don't need to go to a lawyer yet you just need to figure out how to talk to the seller you need to figure out talk to the seller and you need to figure out how to show that guy 40 grand 40,000 boom here's your 40k right now I take over the property I'm not gonna get a loan you're gonna be my debt okay if I miss a payment cause a problem you take the property back you're up 40 grand you've lost nothing and it's amazing how many people actually want to do these deals totally because they don't want to they don't want to manage the deal anymore they don't want to manage two things they don't want to do number one they don't want to manage the deal they're tired of managing a deal mm-hmm okay they don't they won't even raise the rents the rents are six hundred and twenty-five dollars a month the rich should be nine hundred a month and they will not do it because he's like I do not want that's right the [ __ ] mm-hmm the move-ins to move out he's already making money right now okay he's already making money at 6:25 because he bought it twenty four years ago number two thing the reason they don't want to they don't want to go through this is because of the taxes big issue right here huge huge issue yeah he does not he wants to sell but doesn't want to sell because if he does the Uncle Sam that we all hate yep we love to hate by the way no blame my name is Grant Cardone this is real estate investing made simple we do this every Monday for you brought to you by the cardones zone where every day we deliver a new show to you 305 eight six five eight six six eight three oh five eight six five eight six six eight by the way if I could pick up $275 a month how many units is this that was twelve twelve units look at the money here okay if I could do this 12 26 times 275 huh is that the property no that's a different one different yep see that's too nice for somebody to be buying the first time no let me see that property and you just showed me how much is this that one is four units the price is na let me see okay love it somebody trying to kill you on this deal Yeah right disclose there's anything disclosed on it Ryan this is what you got me no I sent over I sent over six properties this is this is the one that you're looking at the 12 units oh wow that's awesome yeah 380 Florida 3 three-prime 24 beds 12 units but they're probably raining this as bed as beds yeah not as units on his units yeah look I can just tell you this you're not gonna get rich of your job you're gonna get rich because you invest if you want to create financial wealth forever you must invest in assets that produce cash flow and take care of you for long periods of time you're a great perfect businesses you die and it moves on keep providing cash flow for your family and appreciation in the future my name is Grant Cardone and you are in the Cardone zone I want to show you exactly how I got started I'm going to show you how to start with a single family help if you want to 2 units 4 units 8 units over a billion dollars for the real estate I've accumulated all day every day I'm looking at deals not about how to find it how to negotiate how to talk to brokers and I'm gonna go real deep with you and I'm gonna show you how to buy and start with a smaller deal more sales in less time no when your links are clicked on within your emails track performance metrics giving you unlimited real time email tracking we give you precise email scheduling make sure your emails arrive at the right time every time increase your open rates and perfect your multi time zone sending we automate your follow-up process see how it can work for you try it completely free for two weeks landline Amex believes everyone has the god-given right to own their potential most of us don't because we spend 40 hours per week serving the 40 year to life sentence treading our precious time for worthless paper called money we teach our clients to secure income so you can buy your freedom back and we have a life of abundance and prosperity wealth dynamics provides coaching education accountability and community to help you build wealth join our coaching program get educated on a wealth dynamic University and begin networking with the wealth dynamics mastermind group today to get started go to wealth dynamics calm you're in the right place at the right time my life has been changed in a way that I didn't personally think it could be changed anymore the opportunities alone that have presented themselves while I have been here the magnitude I can't even describe right now I was bored I was lazy not doing anything sleeping not doing what to do man grandpa don't say my life afternoon whatever bigger than life isn't about the law of attraction is about the law of action finish my income turn it's my life it's in that's my future family man that's what it's all about man [Music] you [Music] hey welcome back welcome back grant cardone in the cardones owned real estate investing made simple every Monday's reserved for real estate I want to get you in the game I'm not here to sell you anything today I'm here to get you in the game of investing your hard earned money you bust your ass Monday through Friday Saturday and Sunday you need to figure out how to get your money invested in real estate where you live you're either gonna do it yourself or do it with someone else get your money in real estate it'll be a something you you thank me for 10 15 20 years from now real estate long-term should provide cash flow should provide good locations buying good locations where you can get appreciation and pay down the debt into the future the stock market is up 500 points today it was up 400 points Friday trust me when I tell you it will go down and your real estate will still be around Facebook will die before my portfolio five thousand apartments goes away companies today exists for about 12 years the average company in America went from 68 years just three decades ago to about 12 years today apartments will still be around 30 years from now I need a place to live so today I'm looking at deals I just want a loop net 300 years here's 10 units check this out you guys like I can't find good deals I just picked Birmingham on my abc Birmingham let's go with the beat let's go with the be 10 units $300,000 I don't know if it's a good deal or not let's do the math on it could I make a deal out of this I'm gonna put seventy thousand dollars to buy this deal if you can't find seventy thousand dollars you do not understand the real value of real estate you're like I don't have 70 grand it's not about whether you have it it's about whether you want that deal or not because if you if you knew if you knew you were gonna make 300 grand could you find 70 if you can't figure the answer to that out you're not going to buy real estate at the end of the day real estate is still a communication game I gotta talk to the guy this deal it's online he wants to sell it there's 10 units the units are 30 grand ok it would cost me $70,000 to permit this in San Diego California seventy thousand per unit to get a piece of paper that says I can build a property ok so two hundred thirty thousand is when I'm gonna finance I got to get a loan on this oh my god I don't know how to get a loan good you can learn how to do this idiots get loans every day I started and got my first loan I didn't know who to talk to who to go to who was lending money didn't know what to ask but I was committed to buying my first deal so you gotta get as committed to creating wealth as you are committed to your job of 40 hours a week okay I'm gonna refund in I'm gonna find the instance you can use a rate factor it's a little RF it's not interest it's like a six point one five rate factor that means my payment on this annually is going to be about thirteen eight thirteen thousand eight hundred dollars a year okay that's my debt so I need the property now ten units to pay more than that if you've read my book how to create wealth investing in real estate you're going to know that that number the 13/8 needs to be 1.25 this property needs to create at least seventeen thousand dollars worth of net I'm backing into my old deal Noi the Noi is figured from the gross rents ten units six hundred a month times 12 by the way I'm going to spend four hours on this four hours on this on Saturday any of you want to join me Grant Cardone com4 / or yah I just picked the property in Birmingham I have no date on it except that the guy wants three hundred grand for now I'm gonna back into it I already know what my debts gonna be I know what my down payment is gonna be you you it's the same formula I don't care where you go in the world ten units was that 6070 - how much is that seventy two thousand seventy two hundred seventy two thousand you 70 mm well 70 mm times 600 6,000 its eighty eighty six thousand seventy two seventy two thousand no its 86,000 okay ten units 7212 600 yep it's six grand times 12 is 72 70 changes $6,400 what's wrong with you man ten units times six six hundred times twelve times twelve Oh times twelve ten units times six hundred yeah times twelve seventy two thousand that's what I said man yeah no that's what you said I said the same thing okay okay expenses expenses if you've read my book got to be at least 30 percent if you manage it yourself yep times point thirty it's 20 $1600 so let's just round that to 20 mm mm-hmm okay I've got fifty thousand dollars of n oh ah okay I said I needed 17,000 of Noi to support the debt let me just see if I did this right cuz I've already made more mistakes few thirty mm-hmm times point zero six one five ya know I'm right okay watch watch it this was gonna screen like like a banshee Oh 13 grand this thing is gonna scream so big it's thirty seven thousand dollars we're not put down 70 grand I get my money back in two years dude I might not buy I might not be long term 30 years in Birmingham but if I'm trying to find my first deal I'm gonna go to my mom and say mama please let me 70 grand mama I promise nothing Houston on the cocaine this time I promise mama not to waste the money the more the money is gonna go into the property we gonna be partners mom I'm gonna pay you back for the first time you guys got to get you game on dude I can make more money on this one deal because what I'm gonna do is I'm gonna go in there fix the thing paint it some white paint on the on the on the red brick i'ma get it looking healthy okay I don't know if you can see it here Johnny's coming in on me look at that i'ma paint it white I'm gonna do a little I'm gonna put a little other blessing on I'm gonna go out there down put the blessed put the Pope C on it okay and then I'm gonna probably take it back to the market place painted and go back to a guy and I'm gonna be like dude how would you like to buy a deal and earn 10% on your money just earn 10% watch watch how much money I'll make on this one deal 50,000 you see this 50 grand 50 grand divided by 0.1 I could sell this deal for $500,000 I'll pick up 200 grand I paid 300 for it right mm-hmm no it didn't I paid 74 and I borrowed that from oh okay what I'm gonna pick up 200k pay mama back pocket 130,000 because I am a bright individual it gets good at the job and I earned money and then I get good at creating wealth and I'm a real money let's talk to our callers I might flip this deal by the way I might not even be in this deal three or four or five months I might not be in this deal to close it I might be in this deal on the contract and flip it Vernon and and you guys don't have competition this is what I'm buying I'm buying the thing behind me I'm not buying your deals so you don't need to compete with me I'll help you get to where you can't invest with me if you want to in the future Vernon what's going on hey how you doing uncle G what's up man good player you got a deal where you got a question I got a deal for you bring it on big dome imma get you to address all right please dude man and four three zero three Gallatin Pike Nashville Tennessee ooh I like Nashville for ya zero no four three zero three four zero four three zero three Gallatin gallery hello ap I am I got it I'm all alone it like blue ball it so has 16 units the average rent is 1,500 I know I don't have a lot of time so I'm gonna just jump into it still in it and as for commercial units at the bottom okay for commercial units being what retail I don't like that I hate long I'm just gonna tell you what I don't like about the deal all right how much they want for this deal or do you want me to guess I already did my analysis for it but we can do it together and I'm really just trying to figure out what you think about the exit okay 288 a year and income is that what you got so our 16 units at 1500 a unit and n times 12 so it's about 380 16 times 1500 yeah 12 plus 288 a year q88 a year okay okay ten times nine 92% yep you're not good you can't make empty yeah 264 ok 30% of that's gonna be gonna be minimum 30% is gonna be 80,000 years gonna be expenses you gonna manage it yourself yes sir okay so now we're at 180 for year that's the NOI you know what 180 for you because this is a newer unit how do you like the location I like it it's not bad yeah three million six hundred and eighty thousand dollars how much they want for it I got 3.2 though all right we're pretty close together I don't know anything you know what do I know I can change that Oh what do I know either yes 3.2 you need 800 grand about the deal yeah at least 800 grand you're gonna finance 2.4 million dollars I just tell you right now I mean I don't love this deal is this your first minute yeah it would be the dance 147 I don't think they're gonna sell this at this price 187 a door yeah is that what it is yeah I don't love this for your first deal dude it's already fixed it's already nice it's already beautiful you know like like you're gonna do this deal man just just throw money in with the guy that's already doing big giant deals okay I want you how will you tell you I'm 26 yeah dude go get you something you can fix you agree run go get something 20 years old or you could fix you could put in the hardwood floors you can paint a little bit you can you know you can do some tricky stuff to it too like Oh increase the value I want to see you build an exit quick not be stuck in that deal for long periods of time waiting for long-term appreciation because your age my name is Grant Cardone you're in the cardones zone we come back we're going to take your calls do you have a question or do you have a deal that is my question to you I want to show you exactly how I got started I'm going to show you how to start with a single-family home if you want to two units four units eight unit over a billion dollars for the real estate I've accumulated all day every day I'm looking at deals not about how to find it how to negotiate how to talk to brokers and I'm gonna go real deep with you and I'm gonna show you how to buy and start with the smaller deals Wolffe dynamics believes everyone has the god-given right to own their potential most of us don't because we spend 40 hours per week serving the 40 year to life sentence treading our precious time for worthless paper called money we teach our clients to secure income so you can buy your freedom back and live a life of abundance and prosperity wealth dynamics provides coaching education accountability and community to help you build wealth join our coaching program get educated on the wealth dynamics University and begin networking with the wealth dynamics mastermind group today to get started go to wealth dynamics calm first root of hustle whole ceiling chris is in the interesting real estate space but he's figured out a little niche heaven flipping deals when he calls Hotel and wholesaling I want to show you how to get into real estate without making all the mistakes I have he actually doesn't own the real estate what he does is he buys a contract he basically you don't actually buy the contract you control the geyser correct visit Chris recom to book a call right now last couple of years a I machines have made their way into our homes the battlefield our workplace and even into our hands in the form of smart phones with voice recognition digital assistance for the home represent an opportunity if you know how to take advantage of them that is where Nico's Computer Engineering comes in hey welcome back grant cardone real estate investing made simple we're here today on Monday's always a Monday talking to you about real estate how to buy your deal we call ins today people are calling in I just showed you how to make two hundred grand on seventy thousand I'm gonna spend four hours Monday talking about the st. not Monday four hours Saturday noon to four o'clock in the afternoon oh my god I can't I can't I can't I don't have four hours good with the omelet you can record you can have the recording it's 49 bucks you keep it and then what we're going to do is we're gonna go reap we reproduce that program and sell it for 5 grand so you can pay $49 and see it live or you can have the recording of it you can't go copy it you can't go share it out on YouTube but you can own it use it watch it etc and then we're gonna repackage that and create a product around it that you can buy later or your friends can okay grant cardone com4 / or yeah Natalie let's talk to our callers questions or deals Xavier do you have a deal or do you have a question hi I'm Koji how are you good brother we're hearing for lloyd oh I really appreciate the call thank you now we have a deal with that Bo would have a multiple question okay okay so the deal is in 168 Walker Street Jackson 100 Walker Street yes Jackson yeah Jackson Georgia okay we know that it's in contract okay this is kind of an exercise I would like to know if that could be a possible deal so we can find something similar mmm okay okay okay so this property is at 168 Walker 168 Walker Jackson Georgia 1.6 million do not disturb the tenants they do not know the property is for sale you can't make this up can you show it to me Johnny they do not know the property is for sale dude it's on lunette yeah 1.3 million slashed out now it's 1.6 million okay the all brick building has lots of land to add more units eighty nine bedrooms 44 bathrooms for the gross income of 229 a year yeah okay so look they're saying it's an eight cap this is this is that old 1960s low roofline brick you know that's what I grew up in I grew up in a house like that so you're you want to look at this to see if it's a good deal for other stuff do you live they're 1970 oh okay so that's one of the first question yeah because we can we can get a deal that it will be a run at two million because we can get investors for a thirty percent down payment yeah okay I did yeah that's video that's a deal oh I know I know I know it's a deal dude I kind of like this deal I don't know why we're not looking at you I know right I get this little sensation I get a little tingle yeah but bro look look my question to you is do you live in Jackson no yeah well so why are you looking at Jackson you're just trying to find out what's in when are we looking for a Lauderdale where you can go visit the property you can so from what we have you reading from you we wanna properties that he will be I more than thirty units and here in South Florida is gonna be a little tough with but let me tell you what's tougher than buying something in your backyard okay it's a little tougher than that is managing somebody else's backyard from a couple hundred miles away see this place we already got damage on the place they're beaten up the freaking fits the curbs they're not cleaning up the place like how you going to collect rents man how you gonna collect rents when you're two or three hundred then you're gonna be like well I'm a higher manager the manager is gonna steal from you yeah we went out we want to hire a minder that's why we're looking for deals the manager the manager is gonna is gonna rip you off from that distance you need to be more worried about the manager than you do the tenants okay so anything that maybe go start where you live start where you live start where you live unless you're willing to move up there and then and then that that's an alternative to it could be worth it by the way guys I would move I would move I would have to move six times some of you guys won't you won't move but I will I'll move to get money so like I'm gonna go to Lauderdale since you called up and I don't know why I'm feeling generous for you today anybody else had called I'd already slam to ass I don't know why I'm loving on you right now dude I just found on in Fort Lauderdale on Dixie Highway I just found 16 units 28 units C c-class apartments $650,000 28 units 650 thousand bucks okay now why would I find that because I know when the value of property in Miami goes up I started looking hundreds of miles around Miami hundreds of miles called tertiary markets because I know as values here go up it will start to permeate out here right somebody gets AIDS in in Africa they could bring it home so so is that the bad bad bad analogy you understand right like like like you do something stupid in Vegas it doesn't actually stay in Vegas you bring it back home and you start thinking about it and you feel bad about it and then the next thing you know you and your wife are arguing because you're in a strip joint and you didn't tell her and you've got this like like it but but it works pop the other way too when values go up they go what they permeate throughout the whole state they don't just happen to a neighborhood so I'm looking to steal 28 units low-rise okay yeah yeah here 1811 north Dixie Highway okay it looks like a like like almost like a little trailer homes let me just think this looks as good as that last deal I was looking at though at least it's painted white uh-huh can you see the deal I'm looking at right now yeah you see it okay we have it we have in front of us yeah okay look at that man you know you know who lives in this somebody their kid somebody that needs a nice place they can't buy a home they're probably paying 800 bucks a month I'll know here in a second come back in Johnny let's just see what the rest of it looks like I'm looking at this for the first time got a little doggie Park in the back look it looks killer dude right somebody's gonna live there I would never live there well good we're not talking about you living there we're talking about you owning it so other people can live there everybody needs a place to live right 1969 it's only 10 years old older than the one you were looking at it's got a 61 somewhat walkable score which means it's not really walkable and it's trading for a six point six nine cap which means six fifty times point oh six six nine equals it's gonna produce forty four thousand dollars at Noi year twenty eight units look at this okay now do you know what the forty four represents the forty four represents after expenses so let's say let's say the property does so you gotta know how to back into this you got to know how to back into the numbers let's see what their written some of these units okay seven milk seven unit multifamily property location location location seven unit cash flow air B&B ready or short term leases properties currently list a long term tenants but leases our annual that means they're getting one payment a year I like that actually has a coin operate I do I like that people would pay it's hard to get them out though if they do that the rents are seven seventy five a month twenty eight times seven seventy five this deals gonna scream I mean I just know already times twelve times point ninety two nothing stays full it's two hundred and thirty nine thousand dollars a year in income okay let's say I let's say I spend a bunch of money on on unexpensive cuz I really want to take care of the place secure it I want to have a freakin dog there I want to have a guard outside okay I want to put in a little with a little one of those little plastic pools and keep the water warm okay now now the deal makes a hundred and seventy nine thousand dollars of Noi okay I was looking for forty four this can't be right something's wrong okay they're saying the rinse or seven seventy five a month for 250 square feet something I don't know about this is the price it's $23,000 a unit yeah something's wrong seems low the per their purchase price yeah no they got the they got the Noi what they had the gross rental income average rent did 28 units it says the average rent 775 a month mm-hmm so something I don't know something weird but anyways it is it 28 beds or 28 units could be could be twenty eight beds 28 units is what it says right here though huh but again you got to research your market if you guys can't figure out your own backyard price doesn't matter price does not matter quit worrying about the price don't go where it's cheap go where you can make money Saturday I'm gonna spend four hours with you talking about how to find a deal how to buy the deal how to make sense of a deal let's go to our next caller and and I'll see if I can find such good advice um he's starting in your backyard I was terrified yeah when I first started investing in real estate to go outside of the state yes I didn't have a manager I didn't have anybody to you know connections yeah so I'd go around to all the little cities that were closest to me and I'd go shop to plexes and for plexes and eight plexus now just try to make sense of the deals I'd crawl up on the the walls and check out the roofs yeah walk in the units and see here's the deal just down the street five units six hundred and twenty five thousand dollars okay so to buy this deal you need what two hundred grand Allen I would buy this deal I'd go I'd go find a deal I could buy with 40,000 down if you're getting started my first deal I put $3,000 down on my first deal my last deal I just put thirty two million dollars down so I'm gonna come a long way from my first deal three grand on my first Neil okay and I was terrified never done alone before never bought a piece of property before never managed it never had a tenant before never fixed anything literally like for me to change a lightbulb in a lamp I had to call somebody seriously I didn't have a dad man so I didn't I don't have any mechanical skills because I have a dad to teach me that stuff but I knew numbers I knew numbers I'm like man if I take the money that I earned I got a job you know I make I was making like 80 grand a year if I could just squeeze three thousand of this and go buy a house that somebody else lives in and they pay me rent I get the loan I'll get the documentation I had decent credit I'll put the three grand down the house was 78 thousand dollars okay I financed 75 I think the payments were 625 a month and they rented for 750 I'm like I'll make it 150 bucks a month man I was happy about it and everything was good until they moved out and then I started learning about real estate so some of your gonna have to make mistakes with your own money and then others of you can learn from an expert somebody that's done it that's what an expert is somebody that's proven themselves successful buying real estate not just writing books let's talk to our last two colors Mitchell do you have a deal or do you have a quest O'Neal I've got a I've been looking at a property a few different properties and it seems attractive this this triple net lease is what do you think of those it's a retail no uh-huh and it's a triple net lease yeah tell me more back from from the city I guess uh-huh is it is it is it a housing project no it's not you probably just actually considered a dormitory as earth oil yeah so what do you have an address yeah okay you want to give me an address our state North 89th Street and so everybody knows what a triple net lease is is you buy the real estate and then either you'll rent it to like a Walgreens or a Target and they'll they'll take care of all the expenses so I buy the real estate and then I lease it to them in this case the dormitory the soil yeah but they take care of all the maintenance they take care of all the expenses they carry take care of everything this is not an apartment deal just so everybody knows this is a dormitory okay this is a dormitory this is a Spartan college student resident Hall it's three million seven hundred fifty thousand dollars it's a little different business by the way than apartments still real estate it's still cash flow it's still income but somebody has to handle the Maineiacs makes me think about the the movie Animal House doesn't mean this bad by the way doesn't mean it's bad but I remember you know renting to me as a kid dude I tore some stuff up but but a lot of times I was breaking the law in that little unit I was in so I couldn't not pay because I was worried about the the Popo coming and finding out my stuff so sometimes when people are doing bad stuff they'll pay on time just to make sure you don't find out now this is it's a 12% cap the higher the cap rate goes the more like you should go into like like if you were a dog become a Doberman Pinscher you're straight up like the higher that cap rate goes up we buy we buy four cap four and five cats today so the higher the cap the higher the risk doesn't mean it's a bad thing just you just need to know what you're getting into now if I'm buying one of my first deals I'm like wild man this is attractive this thing's gonna probably make me 20% a year if I can figure if this guy can figure out his down payment his down payments probably going to be higher than 30% too because the bank's gonna be like no no no we need like a lot of money down this deal they're going to be concerned about the student deal you agree right 100% the bank is the biggest concern I have for you sir is 304 units what a way to start right the biggest deal on this deal is not managing the deal it's not Animal House it's not the debt not the down payment it's how do you get out of this deal because you will forever be calling it a dorm house unless you could start calling it something else like if I could convert this into a multifamily apartment deal 300 units it was built in 2003 so it's like it's only 15 years old it was built for this purpose it says it's got a 19 walk score that's terrible it's car-dependent it can't be very close to the can't be very close to the school yeah so yeah nothing has 100% occupancy I mean [ __ ] that's 20 years okay I don't yeah yeah what does that guarantee you how much does that guarantee yeah yeah where do you live you don't you live in Utah just beautiful in Utah backyard like if you want you you if you want a girlfriend do you go out of state yeah yeah like I want to date man I don't go to Sweden to get one hey I don't know I don't know about me I don't understand the lease what can you tell me about the lease sounds like the lease long-term triple net lease hold sale-leaseback and closing the tenant will execute a brand new 20-year absolute triple net lease that means one person's paying you right right not not 300 it's like that trial in Orlando that Disney was doing yeah Wow leasehold properties allow for depreciation of the full purchase price of the asset in year one I can buy that and write-off 3.7 mmm in dollars even though I didn't pay for it off my income I'm getting excited sounds like the deal you maybe want to partner with me on I mean maybe do don't know now I'm starting to get a little jacked up on this deal I got to tell you so this is what this deal does this still makes four hundred fifty thousand dollars a year Noi that's what they're guaranteeing on this deal so now if I could write it I'll tell you right now I have enough income I could write to three point seven million dollars off this year that means my cost is zero for the deal it'll reduce my tax bill by three point seven million dollars I'm like okay III got you got my attention now and produce and Noi four hundred fifty thousand dollars before debt now check this out I'm gonna go get a loan on this because I could probably get a loan because of the amount on most of this deal couldn't do you think I'd have to call a bank and say hey dude how much will you lend me on a ground lease twenty years they're gonna underwrite me and then they're gonna underwrite where the lease is coming from the lease but again real estate that's what's so interesting about we're not just selling time for for fifteen bucks an hour I'm not just selling my time I'm not going out and doing one a photo shoot okay yeah give you five hundred Johnny come shoot a video of me okay good dude this is something that can make money next month the following month next year following year I mean I got all kind of things going on here I got a big tax write-off then I got 450 coming in I'm wondering how I can get a hundred percent loan on this which I probably could 375 o times 0.06 one five two hundred thirty thousand dollars a years my debt and a hundred percent I make two hundred twenty thousand bucks a year cash with no money and I wrote the [ __ ] off I got a cut on this one I'm so excited bro leave it have this Dubai you come into my 10x growth conference he hung up okay okay what man I be now it I'd like to figure out hack about 50 of these and scale this business out we got another caller grant cardone real estate investing made simple you figure that deal out you make a quarter of a million dollars a year with no money down before the tax write-off they'll pay an attention cuz I am I'm paying attention to you I want to help you and your family get their money right nobody's doing this what I'm sharing with you right now is how to buy a deal every Monday you can call in you can ask a question you can give me your deal I'll look at your deal I'll help you get in the game real estate has proven to be a way to protect wealth for hundreds of years it's not a new thing it's an old thing hundreds and hundreds of years the railroad guys did it though I old guys did it everybody has done this okay oil guys how did they make money in real estate because they had real estate that was pumping black cash flow how did the railroads do it they laid tracks down across the country and when you rolled that Railroad over that railroads got to pay when I fly over Cuba I gotta pay Cuba to fly in their airspace it's called real estate and maybe you can't own the whole country of Cuba but you can start on in your backyard a house is not an investment it's a place to live this is real estate produces cash flow pays down its debt over time and in the future when bought in the right locations when you do your research and you've got jobs coming in to Tulsa or San Diego or Orlando or Tampa or Houston or Austin or wherever you're buying your real estate when you have jobs coming in and that area gets more and more desirable the value that property should go up and you didn't pay for that property somebody else did Saturday I'll be doing four hours three to four hours on this Saturday afternoon if you can't sit through the whole thing Saturday you get the recording of the content live grant cardone com4 /r e Grant Cardone comp or slash or E if you have a deal and you want to be on next week's show send an email to Natalie at Grant Cardone con Natalie at Grant Cardone comm she'll put the deal in front of me we'll take a look at it if you haven't gotten the book it's free for Christmas it's starting to feel a lot like Christmas real estate we love tempting and then okay that's all I got for you today man I hope you guys grab the book make sure you stay tuned to the show if you like today if you have a question you got a comment again all I want to do is help you if you haven't gotten your seat to the 10x growth conference folks we are now sold out mezzanine sold out GA is sold out field is wide open for you to pick diamond VIP executive our executive seats are available we got some great deals out there grab your seat get as close to the stage as you can this is going to be an epic event 35,000 entrepreneurs for 3 days and a list of speakers like none other ever put together okay we're talking about billion dollars of producers on Fridays come back Saturday multi billions of dollars of production on Saturday and Sunday people that put their lives together and created ideal lives and created billion-dollar businesses all for you three days February first second third this will sell out great Christmas present for that 10x person in your life get the book for free grab your seat I'll see you in February until then Saturday Saturday if you want to join me for four hours Grant Cardone comm /r e I stands for real estate investing god bless I want to show you exactly how I got started I'm going to show you how to start with a single-family home if you want to two units four units eight units over a billion dollars for the real estate I've accumulated all day every day I'm looking at deals not about how to find it how to negotiate how to talk to brokers and I'm gonna go real deep with you and I'm gonna show you how to buy and start with the smaller deals you Oh you my name is Grant Cardone does the cardones known everyday everyday I'm gonna show you how to get money a lot cheaper than if I get yourself in a position to sit in a chair right there for you the solution or you the price yeah well we're gonna what does it take they don't know you and they're not thinking about you they do know you and they're not thinking okay forgot you my name's grant cardone you're in the car down zone where I wake you up I shake you up punch you in the face but mostly I'm that good [Music] [Music] you

Channel: Grant Cardone

Views: 138,022

Keywords: real estate, marriage, husband, grant cardone, real estate made simple, real estate investing, personal finance, wife, investing for beginners, married, business of marriage, parenting advice, future, focus on the future, relationship goals, money, income, freedom, financial freedom, social media, partnership, success, business, team work, investing, retirement investing, retirement, finance, how to invest in real estate, new real estate investor, how to get started, money management

Id: TqbDc6zlpHg

Length: 58min 7sec (3487 seconds)

Published: Mon Dec 03 2018