How to Shop For Cash Flow Positive Real Estate - Grant Cardone

are you an accredited investor with 350,000 dollars in the bank liquid earning less than half a percent hey my name is Grant Cardone I started with $350,000 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 6 8 10 12 15 20 and even 25% I want you to come partner with me at Cardone capital comm if you love will estate you like passive income you like positive cash flow if you like appreciation 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 three hundred fifty thousand dollars liquid in the bank's come invest with me now at card on capital comport slash invest now I'm gonna be the big dog you want to be the boss man you got to get up early you want to play this real estate game or for that fact any business game you got to be the first one up first one showing up even if you don't get the one at least you get the confidence that you were up first up first stay last today I'm on my way to four cities I'll look at about two thousand apartments may be just shy that you guys want to play the real estate game guys and gals this is not a part-time job okay there's a full-time job requires tremendous assets tremendous amount of energy lots of resources lots of due diligence when I say a lot a lot of resources I'm not talking about money I'm talking about like walking properties doing due diligence doing research reading over everything from economic reports to studying you know the income statements sometimes going back three and four and five years to find out the worst years these properties have so you don't make a mistake it's not all just like butterflies and and pansy feels you know like somebody's got it somebody's got to plant the flowers right somebody's got to do the work and pay the price so today we'll look at about 2,000 apartments for cities one day before I got in the workout in seven o'clock I'm gonna grab a bucks here but paying four bucks first Starbucks whatever that is you probably don't even need this stuff I'm gonna go ahead and get it in anyway cuz I'm the boss early cuz I'm going to do whatever it takes every damn day to be the boss stay the boss and fulfill my true potential man you got it in you you got it in you but you you know there's no shortcuts to greatness you know there's no shirt come to freakin indestructible wealth I want that indestructible wealth I don't know about you but I want so much freakin well nobody can take it away from me nobody can tell me what to do I can take a deal back away from a deal blow a customer out if I want cuz I got enough flow is coming in from enough different places it's not about arrogance it's about being free freedom babe let's go buy some real estate today come [Music] [Music] hey welcome to Cardone real estate investing made simple my goal is every week every Monday 12 p.m. Eastern Standard Time is to show you how to buy real estate show you how to get started with the real estate game and make sure you don't make the mistakes you have the knowledge so you can start pulling triggers you can start buying deals you can get loans you can make them work and you can make the returns you and your family deserve so look what we're going to do today is we're taking you on the road I'm going to Pensacola Panama City Orlando possibly I'm going to add mobile before this trip is over and then I'm gonna end up in Tampa we left my house this morning at 6 o'clock I met John at my office early bird gets the worm you know what I say number one when I Drive on the property the first thing I'm looking for is not rental income vacancy Hawkins niet Noi gross rental income I'm not I don't care about any of that DCR the loan amount what the interest rates going to be none of that matters to me what matters to me first is how the place feels does it feel good ok when I drove up on this property I felt like the parking lot lacked some personality I could fill the property lacks attention I can feel that there's some unlock of magic there but you'll notice when I'm leaving the place there's a stop sign it's very animated and I told Ryan for this place to work it needs more that punch up the animation the gym didn't feel good the clubhouse felt awful it felt like things are not being taken care of guess what the person that runs the leasing agency zero personality no excitement and she doesn't even like living in the city the court the golf cart wasn't ready for me even when it came past me the guys running a maintenance guy around rather than picking up guests so there's a lack of commitment to the magic of the feeling of a property it has the basic bones the oak trees are there the ponds there the pools there okay the fencing the white fencing on the pond the outside there's storm there but nobody has actually taken advantage of the charm there so number one I'm looking for personality I'm looking for Phil what do you say this is another okay by the way you'll notice that I showed a very professional white shirt gray jacket I don't I don't go to properties and t-shirts okay I want to go looking good I want to when she calls and tells the broker I was there who's that dude he's got a presence whether they say that or not I have that and I want to have that and I want the sellers to know that I'm serious okay I got on my plane this morning I was here 7:30 arrived before they are even open we drove the property I knew the question status okay second thing we're looking for the people operating the thing thing third thing is the process is in place and the fourth thing is the pricing of the product so you'll see me start assessing these things so watch the tour we'll come back and discuss what I learned at the next place thanks for watching it's a real estate investing made simple why do hospitals not awesome number one they don't get rid of number two they're gonna get bigger and bigger you let me cross the yellow eye they're gonna get bigger and bigger what is this a hotel stay West Florida Hospital that's a hospital too they're gonna get bigger and bigger because you got 75 million baby boomers going to the hospital you going to a hospital somewhere in your lifetime from 50 to 90 you're going to the hospital the sick factory what I call so hospitals matter in every city and by the way the government will cut a lot of things they won't cut the hospital eighty million man this never happened before in the history of the United States 80 million 75 to 80 million some people say it's north of 90 million we'll all ascend into basically the death cycle over the same 30 or 40 years biggest transfer of wealth in the history of maybe planet Earth so the average person that lives here the King Ranch when you can get approved for a 700 just under $800 a month around yeah so we're going to be looking at properties in that eight two thousand dollar band on the high side of 1200 now we also know looking forward into the future 10 years 15 20 years these are the kind of markets the big Internet companies and the future companies to tomorrow are going to start seeking out when the Chicago's in the Silicon Valley's get too expensive you're going to see migration to the south when Orlando Tampa Miami become too expensive nicoleff these companies will start migrating to more affordable cities in we've already seen that happen in Daytona st. Lucie you see there's a cost Hershey airy markets outside of explosive growth cities you know like you'll see people move from San Francisco to Austin but there's also migration within states like from Miami up to 45 minutes out okay are outside of Fort Lauderdale so when things get too expensive on the inner city they'll start pushing to other cities and migrating outwards so we see Panama's one of those cities other cities that can do that we've seen Daytona do that outside of Houston Pasadena one year's big this is a big retirement zone - probably one of the biggest people people want to live for cheap but they want to be by the water and hospitals so I want to go back and check the hospital you know for we leave so access the churches hospitals herbage non-living beaches beaches are always good everybody likes a beach don't be a beach you know they say oh yeah I'm gonna don't spend all your time on a beach either you know they say about beaches right what do they say about beaches hot babes they don't say that come on Jimmy give me something everyone saw he's weird that he's a picnic they're not weird but that wasn't her you said something where it doesn't make you here that's right so we've arrived to the property a lot of parking for future residents I see one car in here it's 9:02 in the morning we're at our first location it's quiet here right next guy by the way next buyer now now when you're collecting data you got to be able to collect all the data the good the bad the ugly you have to look for reasons to buy something and reasons other people will find it by something and reasons not to buy something and especially apart you got to find reasons other people won't buy it as well because you're going to use that in your negotiations now ultimately what I'm looking for you see now the property looks really good once you get on it it feels better by the way there's fewer cars here which means what they're working man which probably means and we'll have to study this with the least lissa audit explaining what at least auditors right does it go through the leases to make sure they double-check when they came in when they're expiring who they are make sure they're legit yep if there was any concessions sellers will animals sellers will pack what's called pack a lease when they're trying to sell something just so everybody's aware this is a nice property man it's a nice property those guys are freaking jacking off over there okay I guarantee you them nobody's managing those guys right there which is code for they're stealing from the freaking landlord yeah that's a good point one of the things on the lease audit that we look forward to is we make sure that everybody is a background check we make sure that everybody's gone through the checklist of you know checking who who were letting in because they want to make sure that their income is verified make sure they'll have a lot of felons on the property would make sure they didn't pack right before sale look they're 90 days before sale a seller might load up hey Cathy's right load up the tenants to make it look more occupied than it is with a bunch of garbage tennis concessions all for free I mean this happened to me before but a whole bunch of free stuff was office it's a preferment of 6% and we didn't find that on a date that monthly so when the property like this we really buy all the acids to properly start cash I want to show you the siding under 6% the siding is we wash anything after 6% this society so sixty-five percent goes to 35 percent area it's not gap now yeah when I use on the website you know what we're saying to Ramage right now so we have like this table we're looking to see I would have that shot you see the shot right I see that shot we're pushing that's the kind of stuff that you put on the photography okay of the website the brochure creates a sense of like some well no absolutely you get in on any time yeah I'm unfortunately for most most most the apartments there there's no like this tree shot okay this tree needs to be lit right here this big tree what do I say about ratio big trees they trees big money done okay you see this shot yeah I need a shot of this would probably a swing people come in here and they like bail and this is a home man see you need a shot on the brochure though nobody's gonna live here under the tree but typically what happens with a park that deals is all they show you is the unit in the floor plan okay I don't even know I like this I like I like that they got an issue right somebody's pissed off about people just parking a brother's got two parking signs I get rid of those well you know at Pembroke Pines remember they they they said that they started requiring people to park inside of their garage uh-huh because what happens is they build in the garages as part of the parking lot format right people don't Park in their garage well that takes up an after space right yeah so instead of instead of using as a parking spot they're using it as storage right and what they found at Pembroke Pines is that they they ran out of spots yeah yeah and so super tight so I wonder how hard is that to for enforce that it's just a good manager yeah everything's a team you know it's funny Autobahn park you know we had a little dipping in occupancy and the first thing we did is okay check the people right yeah so I said good no don't check the property yeah the property's perfect right I mean I've walked a deal it feels great feels a perfect and by the way that's why it's important to know the property yep when you buy something you got to know dude that property's not the problem then it's people and after that it's gonna be the processes yeah and you know one of the things with Pensacola that I that I know for sure is you got to use a lot of chemical and bleach to keep the siding clean you know the the roofs the siding it's all dirty but it just takes a it just takes a power washer and some bleach to get this name sparkling do you want to look at the property you got to put that crammed a camera down a second please no huh no I'm not I'm getting I think that's uh medicine out what do you think it is I think it's 174 we'll just prepping it run off the press to work 10 years old 13 year old property hadn't been taken care of totally neglected attitudes are bad nice girl but there's just so much enthusiasm there's only so much enthusiasm here with the people with the property probably went the whole city you know I just got approved you did yeah awesome so you know I didn't leave feeling it and and by the way the number one criteria to me buying something meant up kind of having a bad hair day today the number one ingredient to me behind a deal forget the numbers dude if I don't feel it if I don't feel it doesn't make me feel good you know Dre said Dre said look if you don't make me feel good if I don't feel good about myself when I'm around you I will not do anything with you this feels alright feels like I can make some money here but I don't like I don't get this vibration this freakness thing that happens inside of me okay now that being said everything everything's got a price everything's got a return but if I don't feel it okay I mean what we got to do Ryan to create that feel in here because when I leave when I leave it then I got to look at this junk outside of the front door okay you know I'm saying this stop sign right here is the kind of the most I would do more this kind of stuff right here put signs up that are more fantastical Khanna kind of cute you know cute animated I would make more I would try to make more of the oak trees the lighting here the pull place has got to get cleaned up the molding around the doors the cleaning is a huge issue the leaves coming inside the unit you didn't see any of that stuff but just you know dirties dirty man you know that I can do dirty without paying farts you know I'm reminded I don't clean up myself so when you're showing it unit it needs to be and span perfect they for 80 bucks they could pick them up fix the moldings on those doors now the problem is if I come do that it costs money and I'm not sure in this market that we get any more rent we're gonna go look at a comparable to this that when we pass by I said oh that feels good remember by the wife Scott it's got drive-by traffic that just doesn't have i had to come off the road what does that mean if I have to come off the road to get to a property that means we have to spend more money in advertising so we went into this unit right over here and when you open that door that's their model unit well when I open the door there's leaves on the inside the first 30 inches of the apartment there's leaves and dust and stuff I don't wanna see that man no don't don't remind me that I actually have to clean something when you're going to new it's like going to a new girlfriend you don't wanna be reminded of the problems in the last one let's keep it real good the reason you move to something new is because it's new it's like oh my god new stories you know in the beginning no bitching no complaining no enjoy where you go with job baby no no woman would do that the first time guys do it - oh don't leave me Shelly please I love you so much you know so see even Siri I get tired of her I didn't at first though man at first hold like damn I'm that man her voice all judge yeah I love that you know then she's she's so she's so wrong so often I like said look we need a new gate right here I don't know why they didn't finish the wall dude you see this Brian regular white yeah well why did they finish the fence what why do half a wall and then in the rest fence wasn't what was the foyer what were they trying to get rid of they were carefully trying a little more privacy pitiful I can't see I can't see you know the poles on the road but I can't see the property I don't know really know what I'm looking at anyway clearly I'm disgusted with the property give it a rating what rating would you give it it's got bad dad on it I could assume the bad debt saved myself three million bucks two million right yep goes from 23 to have 184 units it's a small deal it's not really worth the energy I got an outlier out of the markets Cardone capital then so remember what we're doing with court on capital right now we're putting three or four assets together so you actually for the first time people that invest with me are getting an opportunity to get first of all you're getting an opportunity to invest with me number one number two you're getting an opportunity to be in three or four deals not just one deal so I might you know when I think about that Ryan we might combine that with something in a different market well the nice need to keep mind 2 is Japanese an hour away yes yes so we have it we have 344 units an hour away true that true that and then our management company that we that we've got yeah now let me show you this example this is the one we drove by we're in a major street right here give me this shot John okay see the difference she said the rents are the same - didn't she she said comparable yeah but but but so look here's something that you notice right the orange the colors yeah it pops makes it more from the pool or more inviting flowers its landscaping right that's clean the lines are tight there's a management company you can see there's there there's there's some activity in front of the clubhouse look I got a golf cart right here the pavement is fresh yeah this is the deal we art about right here so the other rule that we have is when we go to a city we never go look at one deal but you're gonna see us look at a bunch of stuff while we're here even though it's cool to the parking yeah you mean this cover probably even in earth right even Trivium that's a premium charge yeah yeah and look how sexy it is to look look what he does we're breaking up all this asphalt yeah it's got a nice pitch line yeah it does it really feels this feels really nice feels more more homey yeah I think there's more cars here that other one just felt very I thought it was going to be a nicer property it felt very basic yeah you know what the positive is though well I know we talked about the lower income people making lower inhale that's actually kind of an advantage right cuz you know these people are probably never gonna make more than thirty five forty thousand dollars a year yeah so what do they do right they rent the rest of a lot everything forever man I mean I'm not I'm not I know it sounds terrible you gotta you today exactly I know it sounds awful but at the you know it apologize it is what it is guy told me a long time ago man poor people most poor people are always poor people why because they never they never figure out how to change their financial condition they don't think they can they don't get the financial literacy they don't make the investments they never earn enough income they don't do what it takes so if you're gonna work if you're gonna work at McDonald's or Starbucks your whole life you're never gonna have any money it's just a fact of life you know you can't you can't make a million dollars working at Best Buy I'm gonna happen first of all Best Buy won't even be around you know you're not gonna make you're not gonna make 600 grand a year working you may see some of the executives don't even make that I'm talking about executives at the top of the food chain I like this deal did I like this deal so let me call the broker and tell him what I'm gonna do because I'm not a player for that first man right there's no way up closing that first at that price can you pull up RCA but is it hard on your phone wow this is bad reach myself annoyed there's no reason for me to drag that deal around in my head the way you keep the way you keep a full pipeline open you should like that's not my deal okay I had a price I'd be I'd be I'd be a player in a price you know even then I wouldn't be a player at this in this market I wouldn't be a player on one deal I'd have to have another deal here so we got two deals to go back and forth between if she could pop me in a car right now she could pop me in a car right now and bring me to this deal she had to see that we weren't interested right I think she was she saw a shopping deal you think so oh gosh you walk in you look like mr. money I mean you have money in your step gee it's true and I got money in my stride slide slide you know sometimes I'm gonna tell you money changes people man - change posture it's changeable it's definitely changed my spot my spine so people go to the chiropractor I just said give me some more money my supply changes by a day himself I stand up straight when I make money instead of the feel better about myself okay I stack of $100 bills hmm I'm gonna stand tall I'm 5/8 but I look seven-foot that's because I'm standing on hundreds this is nice this is a cute deal great thank you see this I can see you puffs it up right there on that orange little ding the man what's wrong with him man this is a nice deal I can see John I can see John with this ends up dude pull both these up on Arcia ok can you have to work and you do a little bit a little little like act like a professional this is nice recon if I can even tell the type of tenant here like buy some of the equipment outside on their own their patios I love this deal oh yeah I love this dude I like this one in the governor know the brick oh my god break his trick bring his clean let me tell you something about the brick are you pulling up RCA you're gonna ever get there so you don't have an address on I got you what's the name of this deal teams for you for something there Kings point they don't like to steal a lot now you know the good thing about this market they're not going to build any product here so this is a very very important thing to understand we buy and if you're looking at investing in card on capital you need to understand that we pick markets that have slower job growth okay we want wages to stagnate I know I don't want spikes let me tell you why it's not because I want to raise rents it's because I don't want anybody raising the rents when the rents can't be raised you won't have what's called merchants builders building product ok merchants builders built to sell a product they come in they built something out and they sell it ok and then somebody's got to fill it up I don't want to be in a market where there's a bunch of build-out or are on the flip side of that I'll buy in markets where there's been over building and then I'll go in because once what follows over building no building so you know there's two sides of a coin there I would buy this market because there's not going to be any there's just nothing until there's job growth and until there's wages increased hold on there's not going to be you're not going to have new new apartments popping up so at some point you end up being the only game in town as they say just finished shopping Panama where are we Pensacola yep on our way to Panama City I pop up the mobile real quick and add a fifth city and then we'll do Orlando Tampa for cities minimum maybe five one day two thousand units just came here to look at 184 units I looked at 7-under and 50 never go one place for one reason ever ever ever multiple flows of income don't come without multiple flows of action never ever ever ever depend on one flow nut and I know that's improper grammar by the way always keep 13 in the back when you look down on this coastline don't let anybody tell you there's a shortage oceanfront property two-thirds of the planet is on the ocean okay number one number two you got to look for compression I talked about compression all the time looking for compression in the field you can look out the window and say muddy down there take a shot John okay I don't know how tight you didn't get its money man that's money down there Hotels huge long-term investments okay billions and billions you want to be surrounded by billions and billions of dollars with a Commerce and activity long time that's gonna allow those rents to rise so even though I have to pay more to be right there in the Riviera the redneck Riviera even though I got to pay more I'd rather pay more now because ten years twenty years thirty years from now somebody else is going to have the same vibe in the same feeling now that being said was that a wasted trip to Pensacola absolutely not was not a ways to trip because it it fortifies what I know when I see the right thing it's like missing the target you miss you recalibrate boom then when you hit now you know you hit the real-estate so much this is such a sexy you can see it you can touch it like that's why it's always made sense to me I can put my money in it and I can go see it I can't do that with the stock market or the 401k I don't know where the money went I've had money in a 401k for 20 years I have no clue what fidelity did with that money and then when I do buy stock the next thing you know I'm thinking okay the long-term thing works and the next thing you know the company goes out of business because I was in it too long I can't trade every day I can't trade stocks every day because I can't do that much research and look I got a full-time job a family I barely have time to do what I do now but when I buy a piece of real estate I knew the right amount of research I'm like I love this area I love this pocket I can go back and stay at that properly I can see how people are treating people I can see the neighborhood whether it's getting strong or not all that stuff makes me feel good that's why I just love I've always loved not just buying it owning it I just love just looking we're going into Panama City right now I guarantee we're gonna love the deal we don't look at guarantee it I knew it just happened it hit the first batch here how it built felt to me I'm gonna have a trouble with the fourth factor the fourth factor is going to be the product pricing but number one's going to take care of it I guarantee you I'm gonna go ahead and spend a bunch of money on this place make it feel good I know and he just pin Robbie three million dollars on this project the location is stupid on the beach never gonna go away now much for picking up deals all along this coast redneck Riviera baby we're coming in hot oh my god might not make this with John good on its count John John John John John brace yourself brace yourself brace yourself damn they pulled it up again good job guys we made it we live another day good job boys we'll add that automatic violet nice breaking action boys great job working that ap hey news break for it I love the way you leaned on the right side and then released notice that totally dude I watch everything you do documenting back here nothing dude dude you're a better pilot than I was a first time driver though I failed my I failed my my driver's exam sighs well I failed it three times when I was 45 years old in Los Angeles it failed the test three times the lady said look if you don't answer this question this question like your answer I'm like I'm answering it right okay passengers should yield to cars cars should not yield to passengers I say dude this is logic okay why would I stop 4,000 pounds for somebody that weighs 120 pounds but doesn't make any sense and she said sir if you don't answer this question car yields to passenger I can't give you a driver license renewal I'm not you guys got this thing screwed up this is way in California I wouldn't expect anything else so I'm gonna answer it the way you want to answer it let me get out of here so here we go here we go we just landed in Panama City you just saw what I did at that last property now I'm gonna do the same thing at this property same thing every time okay how's it feel what's the personnel like right the magic the personnel what are the processes in place runner left you've got to tell me where to go Ryan has trouble with navigation because he's a pilot make a left and then the fourth thing what's the fourth thing dude the product and the pricing how does the product compared to the other product in the marketplace on my way to this property by the way I know this is gonna be sexy I already know from the brochure already it feels better right yeah it feels better man it feels like I'm going someplace again this personality thing the magic the magic of a property cannot be bought okay it cannot be replaced and when people have talked to you about real estate in the past and said anything about location location location that's really what they were talking about they weren't talking about a physical geographic like drop place they were talking about literally like what was the feel of this thing some magic the X Factor which what's-his-name from American Idol made me famous the X Factor the X Factor is that magic is that magic it's that feel is I'm feeling the magic me hit the property right so second thing we're going to look at is what the personnel on the property because the personnel is either lifting it up doing nothing or holding it back I talked about this in the 10x rule there's only one level of action excessive massive I'm looking for big actions if that's not there I know there's a bump in the rents I've never been on a property where I couldn't bump prints if I just replaced personnel I put Ryan on a property telling the story Ryan about and get Ryan we're talking about the second step personnel tough talk about when Audubon went to 88 and you sent that chick back here yeah well I mean starting out with Autobahn that's actually how I got the job with you right on the real estate team yeah because it was at 88 and I said hey grand I can go at least 15 actually said 30 apartments in 30 days so pick Christmas them at Christmas time and this chick Jordan who I'm telling you about she was actually the assistant manager at the time on the property and she was the only one hungry she was the only one willing to go knock on businesses knock on doors follow up with people because it really comes down to a few things right it's prospecting following up and closing the deals right there's three things in every single clothes this is what you teach but we actually implemented at the properties and so we were calling people and I remember actually talking with you you're like hey look when you call these people tell them a story you know hey this is Ryan from Audubon Park you know you remember the property when you drove up it had all the flowers and the big trees and it's the long driveway and so that way it sparks their imagination because you can't get them back in the deal lists are mostly emotionally attached right so the sales process could have looked at three or four different apartments now and forgot what they looked at yeah so it's like hey he was following up he was following up leads I'm like just call back go for the low hanging fruit right so again the real estate game is really a sales came and a customer service came go ahead Ron yeah so so fast forward the property was you know kicking ass for 12 months a new property went up down the street and so every every weekly report that came out I saw their occupancy drop in the dropping and so I said look you need to send somebody out there who's gonna follow up who's gonna call people who's gonna follow up and who's gonna close two weeks later they sent Jordan out there give it a week she's now pre-leased to 95% sisters points that's seven points in two weeks because she picked up the phone she called all the leads that they had in the past month she said the appointments and I said I said what did you do what's the biggest thing she says Ryan I service the people I service when they come here I take full responsibility I do great showings and I asked them when do they want to move in oh and by the way what car do you want to put this on Visa MasterCard I'm gonna run your application right now so it's the closing the deal that really makes these apartments to thrive Allen personnel personal service so you see the personnel that we had on the deal somebody quit managing them somebody put motivating somebody quit paying attention to the people because they took their attention off of what they had and moved it onto oh my god there's new on a new apartment building in town oh my god it's newer it's fresher it's fit it's got this big deal then pay attention to your client by the way the client left the new place and came and looked the jurors like like I don't care about the last place they didn't buy from the last place I don't care if it's a superior product and at a lower price they didn't buy which means what they didn't feel good there and if you don't feel good you don't feel good so people buy when they feel good so what are you gonna do to make it what are you gonna do to make people feel good and said you got to take responsibility and I'm sorry that you came here second I'm sorry you didn't see us yesterday I'm sorry I didn't meet you before I'm sorry your credit got turned down it's my fault it's our fault you should have rented here for the last two years oh my god you've been in Daphne for two years and you've never been here I feel so bad about that you see that's personnel if I can drop that kind of personnel onto a property I know I'm gonna get come on 25 bucks a month okay can you multiply can you multiply 25 dollars times 4,000 units what is that 25 dollars yep times 4,000 units so $25 times 4,000 is 100k 100,000 times 12 one hundred one point two million dollars okay does it cost me anything to be nice to people okay can you divide one point two million dollars run by five 0.05 twenty bucks that's worth twenty four million dollars if I can do that to my portfolio twenty four million dollars okay just by having the right people and by the way having the right people is one thing keeping them right every day right on the game there's another thing and that's about renting apartments and that's about running your business and that's whether it's the internet or somebody walking in looking at an apartment it is all the same man how do you respond to your internet leads how do you respond to your phone calls how do you respond to people with bad attitudes how do you respond to crying babies so one thing I like about this deal grant that I'm noticing right into the gate is this seventy nine is gonna take us right to the property boom so seventy now Anna Moss City Beach son yep keep over there look at that look at that look at in the tourists and we didn't see that in Pensacola we didn't see that in Pensacola I didn't see people in Pensacola pulling off to the side of the road taking selfie said themself in front of the Panama City or Pensacola sign I didn't see that see that feels good to me you can't see that on a piece of a document talking to a broker you guys got to get your feet on the ground this is the biggest challenge for people in real estate it's not alone it's not the deal it's not the price it's not the LLC it's getting your freaking it's getting the time away from your job or your family so you can go look at deals it is ultimately the reason why I created Cardone capital because I know you don't have the time you don't have the time to get away to look at deals long enough consistently enough I'm going to look at 2000 plus units today I've already looked at 700 and it's 10 11 13 this one in the morning I got a plane to buy the one I've looked at 700 years I look at 2,000 units before the days over I could do that again tomorrow okay and the day after that so you might be able to do that for one day because you got to go back to work I created a card own capital basically for my family for my close friends for my business associates they don't have the time to do it John doesn't have time looking deal see too busy yawning behind a camera okay so look I want you to invest with me if you love real estate you don't have the time you have the money you got money sitting in the bank dead you don't trust Wall Street casino you know you don't trust the 401k what scam that's a scam that man if I if I was going to college today if my mama said you got to go to college mama how about I do this how about for 52 weeks in a row rather than me going to college for four or five years how about for 52 weeks in a row all I do is shop real estate the rest of them during the week I'm gonna have a job somewhere selling something and doing the weekends for 52 weeks I'm gonna shop real estate and learn everything there is to know about real estate dude that would be so much better than a Harvard career come on okay because whatever whatever you're going to go study at Harvard and pay by the way $400,000 for going in debt folks okay maybe I spent 30 grand in weekend time researching real estate oh by the way the career you're gonna study for it won't even exist in this real estate that I'm looking at today watch when I show you this it'll be here I guarantee you this piece of land and this piece of real estate I'm about to show you will be here a hundred years from now you agree with that run it will be here a hundred years from now and it's gonna be something vertical on it so we're buying properties okay this sit on a piece of land and they pay us the property the business pays us okay for that land to go up in value over time so location how does it feel what's the personnel like the third step is the processes do they have processes in place even when they have the right people do they have processes in place to maximize the opportunity at the property and the fourth thing and befoe how does it price out to the other product in the marketplace I can't just look at one product I can't just look at what I want to buy I got to know everything it competes with so there's the four things I look at every time watch me do it on this property you think so there's a strip it could be a hard town red so look here we go we'll get in the field right now we're getting a feel right this is the magic is there magic or not and by the way is there gonna be magic five years from now ten years from now this is gonna get the magic gonna get better okay California that was magic in California in the 50s man it was obvious there was so much magic there they freaking put TV cameras there and they're like we got to shoot this and then James Dean went there is there gonna be this kind of magic is this gonna get more more magical here I turn here is it gonna get more magical like all this colorful down here this cool like this is some of this is cold you know what do we have the restaurant tavern never heard of that place before this is this motel gonna continue to service people middle-class America comes down here to spend you know what a weekend you think there it is off to your left a weekend they spend the weekend they spend a week here how long it could make all this sexy by the way I would love to see somebody do something with this that made this right behind the winn-dixie I'll bet you that I'll bet you that pun that place right there I would not always want to be behind the winn-dixie but in this case in this town you know much traffic they must get here here we are okay let's see how we feel it do you feel it you see this shot oh the summary on this deal feels good feels a little magical mmm and then there's then there's maintenance issues there's I mean you saw what I saw you're like oh God the management company's not taking care of stuff maybe you saw some of the big trailers back here they don't belong here and if they do belong here they need to pay okay but it just starts making things look odd if you saw any of those empty big boxes that are empty these storage spots that are empty did you see any those funny chance I walked in as empty that's where all vending machines used to be I would turn those into bike racks and charge for people locking their bikes up and have an error machine in there see these are the kind of things you need to start thinking about you know an air machine to blow people's bikes off keep them nice and clean get the salt off and then also to fill up their tires there's ten of those on the property so I'm like man if there's how many units are here how many units right so if there's 60 bikes in this property you know if I can get you know it's not a lot of money if I can get $10 a bike per month 600 bucks yeah he's got a deal called deluxe and Jacksonville coming out yeah yeah okay first he said Maine before hits the market Oh beautiful so now said this deal I looked at my I said I said Brian I said can we get this deal yeah yeah okay so once it in the door yeah see all this property back here all that I can build them all that I don't know how many units I can build out there you could build the same 300 or for another three hundred four units and I on the land it's a long-term play look at that land right there I own it this this this is a really I actually this photo really quick and this is a good example of a business sitting on top of a piece of land how many acres here a great question I don't know the answer I'll find it though Wow 79 West three hundred four units mid rise apartment community located in Panama City properties within walking distance to Pier Park a 1.1 million dollar square foot shopping and entertainment hub okay and it doesn't say how many it doesn't say how many square feet is sitting on the property now number one is what oh yeah here is 20 acres this is as big as would weigh in Houston what's the acreage 20 20 acres so 10 acres of this is vacant ok I got to do something about this entry feels good but it feels a little neglected does it to you boy it feels hidden yeah they're building to the right I don't know now this is the bank this is the bank that we're talking about okay okay so he's like hey make this your leasing office I don't I know I don't get that well they did it before that's why he said that they did what it gives you frontage oh yeah yeah it said they this current this used to be the leasing office yeah so why don't I just pay them to buy it for some signage so this Bank wants to sell this for a million eight just this lot right here for a million eight you know we probably want to own this lot at some point yeah you know but I got to put somebody in this have a golf cart and bring them back to the property right I don't get that frankly cuz I can for a million eight this is probably another what two acres see now we're into number four okay I skip two and three personnel they're decent they're decent yeah okay process is there terrible terrible because nobody can make a decision how is that why what why do you say that the owners putting governor on the property so so this is the list of things I said hey I asked her great information there by the way that was a good question what would you do if you had an unlimited budget I asked that question every time I buy a deal and I'm asking it not to the broker but I'm asking it to the people that run the property the personnel remember personnel are two things what the leasing agents that are there probably the the seller as well the broker as well and the people that rent there so personnel that the people that are renting this place there he goes God driving in right there Slim Shady okay would they want a leasing club fitness room and maintenance center maintenance right now is sitting in a unit this should rent for a thousand dollars a month lighting around the property amenities many of these would be like let me just show you some things I would do that would be cheap Ryan I'm thinking about cheap stuff we can do first of all arbors not arbors what do they call it they do in Vegas those VIP canapes Kabir cabanas you got to have cabanas man and name them stuff too you know but dude you got to turn this a doggie Park you need to cut this grass over here man I don't know what it was yeah what's it gonna cost to cut that grass another hundred yeah you got to cut the grass out there man maintain your maintain maintain a visual you see that little see that little that cottage that little Hut out there what is that is that theirs yeah man you need you need to cut that and take care of it throw some more palm trees out there it's gonna give a magical feel it's gonna make it feel like Disneyland over there dude I gotta bring Mickey Mouse and Donald Duck into this can place make this place feel like I'm on vacation year-round people will pay for that right cuz that we're gonna go look at a couple of the deals right now and I'm gonna find out oh there's that chick we're gonna find out that they're getting beat on amenities okay lighting all these palm trees need to get lived you got to have this kind of entrance man see give me that shot you see the palm trees exactly what I was describing to you I would have to do on the entry has to be done back there you can't do the center aisle you don't have that you don't have the driveway space beautiful product beautiful did really beautiful see that oven looks like a motel this looks like luxury living this magical you see this what I mean is magical this is I even said Disneyland fantastical right like it it's a sense of charm and I don't see look people when people are written for a year that they're running on an emotional decision like it's look at this lady look at this Tennant compared to Slim Shady back at the other place see she's angry but she's not a terrible trouble did you live here I'm looking to rent you like it yes I'm like a lot oh this is my second time to live here oh it is yeah we know the owner oh I've been here since 97 not originally from Memphis oh no no the first time I moved do you know I loved everything about it I was in the last unit there okay overlooking the splash and everything's green is pet friendly whoa the only reason I moved was I had friends in town and it's trying to get closer yes and we didn't get any more done with me moving to Edgewater so let me ask you this I was looking at this one and also there's apartment called 70-90 West now I haven't seen that when you have it's right there by the beach that winn-dixie so that's on front base yeah I think Yeah right guy window one Dix isn't from Baker but I was thinking when you said West West's this one yeah okay no the apartments is called 79 okay it kind of looks like condos it's this one you know this one oh wow oh that's a big one yeah you like yeah look like it's right on this kind of close to the waters yeah it's right across the street how long's it been there 2007 it got a dog hot I bet you they'd give us a special if we went in there together and wanted to get to apartment better than the people can you believe they let this dog in there I say she I was wrong about her she's not angry she had him she loves living here too you know they say you can't judge this book by its cover she love to live in here hey see look at this little gym here that's what we compete with yeah look at the other book okay look at the little Clubhouse out here good that that's what it needs from the other side of the pool right it needs screen there needs to it needs to wood structures in you it needs feel nice lamps look at these nice lamps quality lamps expense of money ups the cuts I like the color shirts you the colors were very worn see this Cabana feel right here yep those aren't expensive man no but I get some shade there too I'd get some couple on that I did it yeah I'd get a screen on top uh-huh so this is nice right here this is like you screen in boy yeah so that that's that's log love this yeah that's really nice ceiling fans out here cheap room to build that's a screened-in porch our guarantee you could build that for 80 bucks a square foot and if you couldn't you can get those kind of renters you see that's what I'm talking about those those are the retirees that are coming out from Memphis from you know up north don't get stuck down here to live here forever they're paying 800 900 foot is back there because the income yeah this looks like those deals I looked at in Destin they build them exactly the same way three levels even the different kind of height different places Destin has almost identical bar yeah okay I like this man maybe we try to buy this too we're leaving Panama City now [Music] or you three hundred four units that's why you got to keep those how much is this deal 25 million 35 million dollars 35 million dollars take about ten million dollars to buy the deal it needs about I think about two and a half million dollars to do it right way to create a real to create a real ambience of real feeling a real simple sense of escape to get these of the maybe the cause fantastic I don't like the Sevi Nine West [Music] so it feels good it looks good on it looks good I'm gonna tell you something brochures matter okay brochures matter okay this place looks good from the air you can't miss it flying over it and by the way some of the Photoshop they did to the brochures shows you what it needs it needs lighting all that was created by the way never going to be a bit like that at night this kind of effect right here that's what they need it needs to become a little bit like a Disneyland right we shop to other products that have that feeling and when you walk on you can see a merely different lieutenant profile so what have we talked about what are we cover number one how does it feel how can you make it feel right number two by the way about an entry problem on this thing we've got an entry problem on that field thing but we can fix that number two personnel good personnel there but part of that person out they wonder that personnel is also the tenant profile how do you change the tenant profile change it by changing a bra three process pretty good there pretty good seems to be some stuff being a ban and that's more about ownership than it is about management before the product in the price bottom line is you're in Panama City there's only so much you can do to force the product of ricing there because of income levels okay it's lower income level in Florida over time that's going to pick up with lower income levels means people don't have a lot of choices you can't like you can't suddenly go buy a $400,000 house you could buy 30 $40,000 $50,000 house but one of those people want to when they don't have stable jobs so they're kind of in a weird place that makes for good rental that makes for possibility I'll know tomorrow we're in Orlando there's a 57 million dollar deal there's six buyers for six or more run we've made the last cut so the way the program goes is I got to put my all friend I got to tell them where my money's coming from I got to tell them what my debts coming from I got to tell him how I under route the deal literally this is like going on a date and before you go on the date you got to show everything about why they should go on a date with you they're not gonna agree to go on a date but you got to tell them why they should go on a date with you and there's five other people that are bidding on the same date and even if you pay the most and all for the most they might still not take you I mean this is a few actors and actresses that hate the audition this is the ultimate audition imagine fifty seven million dollars for property six people bidding it up they're trying to get all six to go as high as possible and then all six have money all six groups have bought property right here in this town all six have experienced buying now we have to sell ourselves on who should get the deal yeah it's going to be a beautiful property painted three hundred seventy-one units three hundred seventy one years fifty seven million dollars you know in a market called millenia millenias located submarket of orlando there's a big millennium all very successful mall it's the place right yeah look at the entrance here the writer but when it comes your pocketbook you're doing here you're talking you know she wanted a $350 split so people don't really care about this this deal is a good job buddy job so John so John go do some snoopin okay [Music] there's so much opportunity here this ridiculous okay let me do a little math for you let's just we're gonna do a little math then went up when I figured this deal I figured it with no rent increases now that I met the personnel here because they are such bad attitudes everywhere I'm talking toxic okay I'm gonna add a hundred and sixty five dollars how many units three what 370 371 my units are two hundred square feet bigger than the ones next door I'm gonna I'm gonna add a hundred and sixty five dollars per month to the rents of every unit here and I'll still be a hundred and fifty dollars cheaper than that joint okay I'm gonna create seven hundred and thirty four thousand dollars of new and oh you know I I'm gonna divide that by 0.05 five and I'm gonna make 13 million dollars Jill's nothing but what ass fillers did I get bills good tell you what feels good is that twice next door oh the stuff next door let's go drive it it's very suspect I know he is so yeah you got you got video John in the camera you have a videotape in him they have one manager how many units here 371 371 units look how big that property is and they don't have a full-time manager okay and next door you got Superman on the left side over here we got Wonder Woman and across the street Batman and these people heroes over here action heroes they aren't thinks they're gonna operate this thing without a manager come on man this ain't Marvel Comics this is a real business you got to pay attention to your business which means you got to pay attention to your customers bring a dang ring a ding a ring add a car down capital do we know what we're doing over here so look it's a 22-8 started at six o'clock this morning we're now on our I guess it's the four city miami Pensacola Panama City Lando must plan I'll make it to Tampa tonight but I fell in love with this project right here I'm not going to show you the name yet because we had closed it so this is the last product we're in I've been doing the math at dinner I think I got to spend I got to spend a little more money there I think I'm gonna I'm in at 57 million we're closed and cause legal fees south cost and rehab on a V it probably 60 million so I'm still seeing this is like a six percent return from day one I'm gonna do some things at the property like kitchens floors get rid of all the carpet in every unit believe it or not I need to change or improve the clubhouse completely get rid of all the employees and I think I'll be an 8% return in year one maybe about 14 months 15 months I'd be at 8 8 % depending on my interest rate on my loan in a market that's that's very very strong addressed this great on product this was built in 2007 and my neighbors $300 a month higher than I am so look for things remember the port games does it feel good this felt great what about the second P personnel personnel awful freaking awful and all three-three is the product of the process three is the process there is no process there except to be you know negative to be no ownership no management there that's a great opportunity that means I got rent box and number four product and pricing my next court neighbors three hundred dollars higher than I am and on the left side of me there are two hundred and seventy five dollars higher than me that's a deal I'm gonna have to overpay to get it but that's the deal and this is my backyard you wanna play this real estate game 12-hour days how you gonna add that to the other job okay you don't need to let me do this for you partner with being a deal with I'll take care of me I take care of my money and I'll treat your money just like I said they said if you were the leader press star now and I'm like what I'm having to do right now is basically this is called a buyers questionnaire it's a due diligence on me the buyer have I done the due diligence now the seller at fifty seven million when the best and final is probably five buyers fifty seven million dollar deal the seller now is going to make sure this is a basic rectal exam in a real estate he's gonna make sure that I know when I buy I've underwritten I can get my debt he's gonna make sure they're still closest in the old days people would buy deals and do what's called REIT rate it's a yama by your deal they get him under contract Trump wrote about this actually in his book the order to do the art of the deal he called it the eleventh inning renegotiate any negotiation he'd get a guy set a hook in him and come back in and retraining and to prevent this this seller will ask me questions about my price my earnest money down payment money my equity where it's coming from how many deals I have how many deals I have under contract how many deals I've closed have I ever reach raided Oh where's my debt coming from what the yields gonna be like how much money am I gonna spend what am I gonna spend that money on I mean it's intense so we're 4:30 call on four minutes early you know why concern early zone time I'll let these mother a little bird sitting out there man as soon as I'm done with this call I'm a pop on my plane I'll be home in about 45 minutes I'm gonna hug my little girl okay I'm gonna keep asking you until you do cuz I'm telling you I know I can make you money I wouldn't spend this much time on anything can you imagine having a guy with my work ethic is your partner all right what a gift up for city in 20 minutes for Grady in 24 hours lifted over 2,000 years it awesome thanks guys door open took a long shot just one or day two Holly today found a beautiful product down in that's making this snake on my deal a big deal big deal Air Force place what you sleeping I'm just I'm just blowing up this out of a block I just wanted to smoke the airplane boys so this is the deal this is beautiful how many 200 how many 371 371 units just outside of Universal Studios it's that beautiful the pool yesterday when I went there to pull was green because the filters broke and the manager bad attitude that that person has c.c. what I would do right I would take this to see how they put the glass on this side does he just walk yeah but really that didn't work put into this you know your condition maybe you don't need to nobody's going to stay there let's face I come up with a lot of that so what I do is let's buy it I mean I wish we can lower the raise this roof it feels really heavy there but we can't that's what I felt like back there here's really dark felt are hopeless he'll talk to me yeah exactly what the trim was painted Brown yeah yeah we're trapped inside when you when you walk into the office yeah I know you think they show that the clubhouse here because that's how bad it is by the way when you're looking at these brochures so long look at what they don't show you look at what they don't show you because what they don't show you is always what the problems are so there's a there's actually a trip to look into brochures [Music] [Music] yeah okay hey guys thanks so much for your time appreciate and I look forward to talking to you about mobile and always show up dude it's a phone call I know always show up always show up that's what I tell you you never know what's gonna happen baby ain't no magic gonna happen anywhere if you don't show up you remember when Babe Ruth did this remember when he's like okay you know what that doesn't happen if you don't go to the plate you it would take it would cost you a career to do what I just did okay you can't do that man okay like you can't even write that but but like like if you write movies you can't write that that would be that would be awesome that that's not that's not 371 units I just did that deals no 140 million dollars so well that was good that was good hey by the way if you're on this list right here this list these are a list of people that want to invest with me your cart own capital I'm trying to call every one of you back if I'm not calling you back Ryan's calling you back if not me Melissa if not meet Melissa Cal we want you to be our partner okay card on capital common let's go let's go let's go get back on the plane I'm gonna use my plane at my expense I don't charge you and we're gonna go get us another deal [Music] [Music] hey welcome to Cardone capital thank you so much for visiting the site obviously you're somebody that's interested in earning more money than the bank's pay you maybe you don't like me trust the Wall Street casino you don't want to race into the ETF's like the whole world seems to be doing paying six billion dollars in management fees just last year well if you love real estate if you like passive income if you're a patient investor this willing to protect their capital that's your desire to protect your capital and grow it over time you're in the right place my name is Grant Cardone and for 30 years now I've been investing in real estate and before I tell you more about Cardone capital let me tell you how I got into the real estate game I had two very successful businesses that were producing a lot of money and these two businesses as I reinvested in the businesses they got bigger and more successful and produced more money and the more money they produce the more money I had that was sitting in a bank earning almost nothing and by the way this is when I was being paid five or six percent of my money fast forward to today that money is earned in less than half of one percent in fact there's three trillion dollars today sitting in banks earning less than 0.05% that's your money my sisters money when my mom was alive that was her money my brother's money all my friends talking about how the bank doesn't pay him anything and I'm sitting there saying yeah that's my money too so about thirty years ago I started looking into real estate income producing real estate multifamily apartments apartments in England properties these are big properties 100 units 200 units 300 sometimes 500 and a thousand units I've done this over seven states over the last 30 years I've bought and sold over 750 million dollars with my first deal starting with $350,000 and that $350,000 has turned in to 540 million dollars worth of real estate that I own operate and manage today that produces income for me every month so the reason I created Cardone Capital is because I have so many successful people in my life like you business owners entrepreneurs people that are going offers experts people leaders in their fields influencers who are so busy with their career so busy with their families they're like grant I want the kind of returns you're getting from real estate but grant I don't know where to find the deals I don't have the time to can't find the deals I don't want to manage these properties I don't have the expertise grant can I literally ride on deals with you and for years I literally resisted this until finally until finally when I look around at the financial landscape and I see banks literally paying people less than a half a percent in the ETF's where where billions of dollars are rushing to ETFs and I know this is a sign I know this is a sign when that much money goes in one direction I know that there will be another problem in that space where too many people will get hurt I created a card on capital or provides successful people like yourself I've been successful it's been great for me I want it to be great for you this is a great opportunity if you love real estate if you like cash flow if you are patient if you understand the concept of income producing property with appreciation over time and all the benefits the tax benefits of real estate income producing real estate I would love to have you invest with me as a partner I believe this is gonna be a great opportunity for many many people number one you can do nothing okay continue to keep your money at the bank earns nothing that's not my fault that's the way it is or you can continue to do the Wall Street thing good luck red black hold the jackpot get good cards who knows okay or number two you could do is just simply get more information from me by going to sign up now and we're happy to put you on a mailing list and we'll give you updates on what we're doing at card on capital I know this is gonna be a big success I expect it to be a multi-billion dollar company I'd love to have you in on the ground floor if you feel good about me if you feel good about what I've said here maybe you've done enough research the third option is to invest now first name last name your phone number how much you want to do and we'll have somebody reach out to you right away [Music]

Channel: Grant Cardone

Views: 638,050

Keywords: ryan tseko, income producing properties, cash flow, how to become rich from real estate, grantcardone, tai lopez, real estate loans, millionaire, yt:cc=on, real estate investing, million dollars, real estate, grant cardone, commerical realestate, good investment, real estate fund, how to make money in real estate, noi, gary vaynerchuk, apartments, roi, shopping real estate, cap rate, tenants, how to become rich, good investments, investing in real estate, cashflow positive

Id: 0Nuo33BAs3Q

Length: 80min 42sec (4842 seconds)

Published: Mon Aug 28 2017