How to Use the Equity in Your Home - Grant Cardone

my name is Grant Cardone with the cardones own 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 a chair right there are you the solution or you the problem yeah we're talking about what does it take they don't know you and they're not saying about you they do know you and they're not thinking they forgot you my name's 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 [Music] [Music] [Music] hey welcome to the cardones own grant cardone every Friday I come to you to talk about business career and the economy today I want to talk to you about something near and dear to where you sleep oh yeah that Lighting's good ok I'm not going to talk to you about cash flow today I'm gonna talk to you about something on the other side of that you can give me a call 305 eight six five eight six six eight I want to talk to you today about equity in your house equity equity last night a gentleman said to me I have one hundred and eighty thousand dollars worth of equity in my home he's probably watching right now he owns a condo he said what should I do with the condo I said dude you should sell the condo you should grab the 180 and you should take the 180 and invest in something that provides cash flow and he said to me but I pay 1,100 for the mortgage and the rent in Los Angeles is twenty two hundred how does that make sense people asked me for advice every day and then they don't take it y'all ever notice that you've your friend your sister asked for advice a brother asked for advice and then I'd uh I got a guy says hey why do you say a house is a bad deal when I have to pay rent and the rent I'm like dude don't don't ask me for advice if you're not gonna listen listen okay check it out Johnny pull back alright yeah I love that Johnny light it up Johnny check it out the equity in your home there's five trillion dollars worth of equity sitting in homes right now in America by the way this is going to be the largest redistribution of wealth in the next 25 years that's ever happened in America it's gonna be freaking massive it might be the only thing that keeps this country afloat it's going to be enormous if you have a hundred and eighty thousand dollars for the equity and this is going to be the mortgage that's what he said to me and the rent would be twenty two hundred why would I say get your one eighty pay twenty two a month pay 2x2 RIT over what your mortgage is gonna be he's like it doesn't make any sense grant okay but let's take another look at his mortgage his mortgage of eleven hundred the eleven hundred is not eleven hundred first of all that's net dollars out of your paycheck okay do you understand what that means net dollars means you have to make in California $2,200 to write a check for eleven hundred these are net dollars plus the mortgage that's the mortgage what about the insurance what about the electricity bill you'll have that either way probably what about the water bill what about what else we have we got insurance electricity what about the upkeep okay what about the maintenance of the house what about the roof that needs to go in the house with a garbage pickup blah blah blah right you got eleven hundred plus you've got some other items here not to mention that you're stuck plus one other thing plus the opportunity that a hundred and eighty thousand dollars could be earning it only five percent let's say I could find a property in California there are only five percent how much is that ninety thousand a year yeah that's ninety nine thousand dollars a year that's the opportunity cost okay so what does this thing really cost eleven hundred a month that's eleven thousand a year that's actually twelve thousand when it was eleven thousand eleven thousand plus twenty two hundred that's thirteen thousand two hundred dollars a year to live in that house plus insurance there's gonna be how much how much is insurance from the house you think okay twenty four hundred bucks okay electricity bill is going to be a hundred dollars I think maybe water and utilities we don't need to count them because it's gonna happen some of the buddy but it's gonna cost something to keep the place up not to mention furniture but you gotta have furniture in a rental apartment anyway but let's say this let's say maintenance cost you 400 bucks a month over the period I know so much you won't have any some years you won't even have any maintenance but let's say let's just say that you had a roofer or paint or something happen and you had to spend forty eight hundred dollars one year over the period of three or four years let's say it's 400 a month so what's it really kanji thirteen fifteen thousand sixty or fifteen thousand it's about sixteen thousand dollars a year plus the nine thousand dollars you could be earning 16 and nine oops sixteen and nine twenty five thousand you could have rented for twenty two hundred a month times 12 what is that twenty-five thousand okay I'm gonna tell you right now I'd read oh there's twenty five thousand down payment I don't know what the down payment was on the house this is buying a house and this is rent equity dad equity is dead equity if your equity don't create cash flow oh by the way what if by the way I bought I but this is rent over here okay rents twenty-five thousand and at the end of ten months I can just walk away from that property what if I got a job over here my friend it hurts young two houses he bought in California twice he got relocated twice he lost money on his house my name is Grant Cardone you in the car down John I'm telling you the equity in your home needs to go to work it's not working money that sits dead in a house does not produce cashflow okay I got my little formula back here cash flow cash should and equity should provide a paycheck so if I have a job I got a job this is why most people never get rich if I have a job right here and that job pays me five thousand dollars a month and I have equity that I could get to work not sit dead in the house lots of people have this by the way if I got two hundred thousand dollars where the equity and I could get that - erm twelve thousand dollars twelve hundred bucks a month I just increased my income by the way by 20 something percent and this is not taxed as high as this this I'm earning five thousand a month this is typically gonna be tic tacs around 40% this money right here will be taxed around 20% half you're not going to get rich if you don't start earning passive income get your equity to produce passive income we got the phones are full right Natalie they love the cardones zone it's Friday 12:00 p.m. every day in every way I come to you every Friday I know sometimes you don't like what you hear from me but I still tell it to you like it is when we come back from break we'll take your call ten million dollars to put on this event somewhere around ten million dollars probably over that I just don't want to admit it no one fills up a stadium with 35,000 people for personal development they're not only coming back it's growing so to be here in so we have a full listen to several you're gonna get so much information I think what Grant Cardone has done maybe better than any person in the world is he has empowered the people he's 10x to we just came from Poland from Romania targeting all the way from Israel come from Italy we are very excited to see Grant Cardone I've been following Graham for about six months and it's been the craziest six months of my life ever since that start following grant my monies doubled and we've had 300 percent growth in our business in one year we've increased our sales by two hundred and fifty thousand dollars a few years ago I was in a car accident I hit a tree at 120 miles an hour I woke up not knowing 10 years of my life so I was lost I went from just being at least even toying with a 25,000 dollar income now I'm making six figures and it wouldn't have been possible without Grant Cardone something's really wrong with Graham he's so crazy man but his craziness is so compelling I'm attracted to crazy people because in order to be successful it's got to be something wrong with you it's possible to live your dream if you work hard if you're consistent if you follow the cardones but you can no longer afford to play small to think small or to act so you guys could leave here and say I just went to the best conference I've ever been to hey welcome back welcome back to the cardones on 10x growth conference by the way folks if you want information about how you can change your financial condition I was on the phone with Steve Harvey yesterday he's like I can't wait till February man he's like in fact I can't wait so much grant I'm gonna leave Pittsburgh can't tell you what the date is I'm flying to Miami because I want to spend an afternoon with you smart people big people want to get around other big people that are smart and are smarter than themselves cash flow is king how many different ways can you create cash flow okay they say the millionaire has seven flows of income here's here's your cut right here guys seven flows of income one you got a job that's a flow right - you could look for a second flow at your job I did this when I was selling automobiles I started doing the finance and picking up that deal you could be a service writer in a car dealership and send a referral to the front end of the deal and get a deal Natalie could work at the company in e-commerce in the social media here at my company and she could start selling tickets to the 10x growth conference third thing you could do is you could do some kind of affiliate thing you could have the affiliate with Grant Cardone and just promote my products and and once a month get lucky enough that somebody buys something with my name on it and you get a little wiggle wiggle okay for equity in your home you guys could start investing I got $5,000 a month coming in here I got maybe another $500 a month coming in here because I sent a referral to some part of the company I've got an affiliate program this makes me 50 bucks the whole adds up you guys it's just 50 yeah never put the word just in front of money even Mike kids know that do you get show me $5 $5 and I'll take that five and I'll buy my kids an ice cream with it equity the equity in your home if you got $100,000 for the equity in the home that should be earning you six thousand dollars five hundred bucks a month every hundred thousand should earn you six percent in the first three years by the way that money won't even be taxed best money in the world is money you can sleep and earn and not pay the federal government all ok let's talk to our callers my name is grant cardone today we're talking about equity in your home when you call introduce yourself where are you and how much equity do you have in your home because you guys have been taught to have equity my sister 70 years old she's got a hundred and forty thousand dollars where the equity in your home I tell her I'm like you stupid dude go sell the house grab the dough put it to work let it have babies and go rent Brandon let's what's up what's up Bri Bri Bri brew bra breath yeah what's that bad dude you got any equity you got any equity in your home Oh a little bit how much you got how much you got dawg oh jeez I probably only earned maybe a little bit over $1,000 a month when it comes to what I do personally no but where do you live you rent or you own I rent okay well good then you don't have any equity in your home okay all right absolutely that's that's why I'm kind of confused right now it's kind of thrown on yeah not sure how this I'm not sure how this relates to equity except when it comes to being fair to the people that you're providing products and services to so may I ask my question Oh different definition right equitable being fair okay okay that's right you got it you got it but what I'm talking about here is value the value of something let's say I got a car I got a car and the car's got a value of $50,000 and I owe 10 grand I could sell it this weekend by the way this number right here needs to be if you blew it out this weekend not the fair value of the car if you needed to get the money today fire sell it that should be a fire sale price right there less ten thousand what that's your debt then you'd have forty thousand dollars worth a equity that's why I tell you guys you guys shouldn't have equity in your hat in your car or your house you should lease a car I do Ritt where you live I do all right and now I'm gonna tell you right now I got about forty million dollars what equity sitting in this thing right now and that's just ridiculous but dude once you get rich then you can start doing dumb okay man you got a question Oh Brandon let's talk about you did Brandon hang up on me that little okay what's going on David what's going on man how you doing come on man 10x all right man first of all you took me from 3 to 30 grand and I don't have enough property or anything about you to draw equity but my customers deal what's a good sales point I could use to get a little tidbit from them to give me a little tidbit what do you sell what do you sell where commercial property vendors we remodel commercial swimming pools or swimming pool equipment to meet new codes and regulations yeah so hard time and bro you got remember this okay you've got customers you're trying to sell a pool too right we're going to renovate their old crappy swimming pool so they can add a little value to their part good you want a Renault you want to do a Reno from Reno and how much is the average rent Oh 80 to 200 thousand woo okay I got a DK they want a Renault and what's that house worth that house have got to be worth 400 no I mean the apartment complexes are 2030 million dollars in Dallas Texas Frisco Texas oh that's easy dude we're gonna run out this dog and grab the equity out of the damn out of the damn deal he put this guy put a third down when he bought that deal he's got six million dollars with the equity so how do brother brother man brother man brother man would you spend 80 grand to protect six million I mean how can I get them to give me 200 grand like I want all the equity and good would you yeah would you don't know what to tell him I'm not speaking their language yeah would you spend would you spend 200 you're going to spend it sooner or later by the way would you invest 200 to protect 6 million now I tend not to protect the 20 million to protect the 6 million for your investors ok by the way what if I what if I could get you the 200 and you didn't have to write a check but how can I logistically pull that one off because because this guy's got 6 million dollars for the equity but sales people out there sales people out there y'all need to learn how to tap equity people don't have cash they don't have money but they got equity so you need to go to him you guys need to take responsibility for hey look if I get this 200 and we tap the equity line right here if I can go find somebody that will lend you the 200 at 5 or 6% so that you can read in crease the rents pay this debt off quickly ok would you do it he's not opposed to debt he's already got something he bought an apartment building for 20 million he puts six million dollars down he financed 14 million dollars would you spend two hundred to protect 6 million y'all got to learn how to talk the language of the bidness that's what we do on the car dome zone Fridays reserved for the cardones own straight grant cardone telling you the truth about the truth and always about your money your career and your finances cash is king folks cash is trash listen to me cash in equity or garbage dumps dad money's dead money money doesn't sleep they said on Wall Street Wall Street what was that movie the Gordon Gekko what did Gordon say money Never Sleeps you know Grant Cardone says but it gets bored ok equity get the equity to have babies if you had chickens that weren't having eggs you'd kill them if you had a rooster that didn't can you add it can you add a rooster you'd be like get rid the rooster okay if you had a little dog that didn't make you kids happy then you probably get rid of the dog but you guys got equity in your home they're free loads at your expense stay with me Grant Cardone in the car down zone ten million dollars to put on this event somewhere around 10 million dollars probably over that I just don't want to admit it no one fills up a stadium with 35,000 people for personal development they're not only coming back it's growing so to be here and so we have to listen to several you're gonna get so much information and I think what Grant Cardone has done maybe better than any person in the world is he has empowered people he's 10 extra from Romania all the way from Israel come from Italy we are very excited to see Grant Cardone I've been following Graham for about six months and it's been the craziest six months of my life ever since that start falling great my money's doubled and we've had 300% growth in our business in one year we've increased our sales by two hundred and fifty thousand dollars a few years ago I was in a car accident I hit a tree at 120 miles an hour I woke up not knowing ten years of my life so I was lost I went from just being a leasing concern with a $25,000 income now I'm making six figures and it wouldn't have been possible grant Fargo something's really wrong with Grant he's so crazy man but his craziness is so compelling I'm attracted to crazy people housing in order to be successful it's got to be something wrong with you it's possible to live your dream if you work hard if you're consistent if you follow the cardones but you can no longer afford to play small to think small or to act so you guys could leave here and say I just went to the best conference I've ever been to back to the cardones zone we're talking about equity today the difference between value and debt today I have about 300 million dollars where the equity earning about 6% a year on average 18 million dollars a year before I go to work and I still work so houses don't do that cars don't do that businesses do that rental properties do that you take equity out of a house or a car you put it into a business that produces cash flow and you create personal financial freedom for yourself your household your family your friends and your investors okay this doesn't stop you can't stop this the economy tanks it still keeps coming this is how financial wealth has been created for hundreds and hundreds and hundreds of years it's not gonna stop these these are tried-and-true methods get the equity out of your car in your house and get it into something that produces cash flow how I did this by the way I started with $3,000 my first real estate deal had three grand imagine is three grand turned in just kept I just kept rolling it I just kept rolling equity okay I'll show you how to do this well maybe you don't have any money but if you don't have any money you could find three grand anybody can find three grand okay particularly if the investments a sure thing and there are some investments that are sure things bread tall hello what's happening Britt this is gift hey Jeff what's happening man how you doing today man I'm doing good buddy hey I was just kind of seeing you on Facebook there and uh man I do have my house totally paid off all my vehicles yeah how much equity you got Newhouse Dave well it's just Jeff Jeff but somebody in your family's name Dave right no no you got a cousin named Dave no there's a lot of rules around dude you got you got you got it you got a grandpa your grandfather was named Dave no it's Harold that rule yeah it might have been his middle name or something dude well he was in World War two with a guy named Dave no yeah yeah okay okay so how much deck what do you got in your house man it's paid off I'm a nurse there's a good chance work 225 okay so you like if you were gonna blow it out sell your house you have $225,000 for the equity less whatever Commission's you would pay that's how much equity is in that house okay now that 225 seven I'm kind of lost you're gonna take and sell the house okay yeah I'm I sell the house I'm gonna have you go rent some place do some nice place to like pay 2500 money have a big swimming pool nice people around you you know security you just walk in you leave every 10 or 12 months if you don't want to the kids will love it if you got kids yeah I got one left six are growing yeah he look he'll love apartment living better than living at your house cuz now he gets to meet new people he gets to freaking hang out with he gets a nice swimming pool you guys don't have to clean the pool somebody will clean the pool for you but you're gonna get your money just start having babies for you rather than freeloading like your kid your kids a freeloader okay now what are we going to do we're gonna do this we're gonna go finance this 405 hyundai the way next week next Saturday okay we're going to finance $525,000 and this 225 is going to earn your family 15 to 18 thousand bucks a year mm-hmm okay now that's that's going to pay your rent where you're ridding now you're not paying to fix the house you might even be negative a little bit on the rent if you a really really nice place that'll be up to you uh-huh but this 750 over the next three to five years to seven years his rents grow this becomes worth a million dollars and then a million two and then a million five your house your house has got a better chance of going down in value over the next five or ten years then that rental gonna crash maybe I'll sure oh dude let me let me tell you guys something okay when we go back into unemployment in this country when we move back to normal unemployment 4% 5% 6% 7 or 8 when we move back to that rental properties will go up in value and home values will continue to go down so you show me you show me a two hundred twenty-five thousand dollar house one house one door and you show me a $750,000 apartment building both of them in good locations guarantee you this one will be worth more money than this will be worth going forward not because they started different this will go down in value this has a better chance of going down in value or staying about the same then this one has because this has income and somebody in the future will pay for the income on that not for this place to live they'll find this more valuable than this cash flow so what do you live man I'm outside by the International Airport in Annapolis there you go there you go dude yeah yeah yeah what do you do for work I've been doing storm damage since 96 yeah yeah so you know things change you you you know you know things can get ugly you know you only do sometimes can you do you have a question but it always comes back around yeah as long as you in a good neighborhood but if I go to Indianapolis if I go look at Indianapolis over the last 30 years I can find neighborhoods in Indianapolis that are dead yeah yeah they're they're blacked out they're they're gone and they're never coming back I go to Lake Charles Louisiana where I grew up there's parts of Lake Charles booming there's part of Lake Charles that nobody ever talks about by the way they're like oh they chose not all parts of Lake Charles some parts of Lake Charles will never come back because you don't have enough population growth now if I go to Tampa Orlando Miami Jacksonville Atlanta Phoenix outside of Phoenix Austin Houston dude these are places that are just like doing this but you go to Indianapolis you go you go up there in the Midwest I mean unless America is gonna go unless America is gonna let all these people from Mexico across the wall in I'm just saying all right dude and what you gonna do man you're not he's not gonna sell his house he's not gonna get his equity you guys you guys don't want change man y'all don't want change bad enough see I want to be rich I don't care I want financial freedom I don't want to do my dad's got financial freedom Hughes too uh he had the Peterbilt utility division trailers vision here in Indiana for twine yeah yeah he stands on quite a bit he kind of makes things turn to gold but yes I understand what you're saying I like to have that I mean I'll do okay but you know I kind of still stagnated yeah hey people come to my condo that I rent nobody ever gets out they're like oh my god the fuse unbelievable they don't get out saying do you own it what does it matter if I rent it or not okay when I go on vacation I stay at the Four Seasons I don't buy the hotel I rent it I go to a hospital I was in a hospital about three years ago I was there one night for four hours I didn't buy the hospital I rented it why I just want to use the facilities and get out as fast as possible you take a bus across town and you take the train you don't you don't buy the Train you buy a seat to sit in to go across town and then you get off the damn thing use it next caller use it or lose it man what's going on in the TX Clemente day my friend Clemente what's up baby fantastic in the PA yeah what having dog mr. Gordon my name is Clemente my dad has about a hundred eighty thousand in equity in his house and he does not want to sell 180 is there yeah see I could take that money times three I'd be at five hundred and forty thousand dollars he would have an investment of five forty that by the way he doesn't even have to pay for he's got to keep paying for this I don't have to keep paying for this I put the 180 down I take the five hundred forty thousand to put 180 down he can get a loan on it no problem even bad credit people can get a loan when they put 180 thousand dollars now okay so what's gonna happen is this debt by the way this 360 that he took on the owner what he did under what are you dead I got this paid for I'm finally good everything's planned oh we made it we in Amaka dude they're gonna pay this debt down the other thing that I didn't tell you guys is this debt 360 is going to be paid down by people you don't even know and that's it okay your daddy your daddy dad hey pops pops come on man okay come on bro shake and bake shake and bake dawg come on man this is what your granddaddy did your granddaddy said man own your house own your house no no own this and have somebody pay it off for you truth is I'm never gonna own this I'm gonna actually take this thing I'm gonna wait about ten years just this thing's 540 put 180 down I own 360 the rents are gonna go up over the next 60 months and then I'm gonna go back to the bank and say hey dude look you know what I'd like to do any chance for me to do the no refi I'm glad to back I'm glad that Flags red because this is what I do and any chance I can do the the flippy dip the grant cardone talks about and they're gonna be like yeah dude this what we'll do we're going to give you a loan for five hundred and forty thousand dollars they probably won't give it all to you we're gonna give you a loan for five hundred grand you're gonna own this piece of property now and then you're going to take $200,000 the difference you know 360 let's say you walk away with one at one one forty and you're going to go buy another deal for five twenty now your daddy's gonna get rich now I got one deal over here oh five hundred grand on there paying that off too and it cash flows and we're gonna go buy another deal this is a non-taxable event by the way you guys got to learn the game man you guys got to learn the game why do you think Daymond John is gonna come spend the weekend with me Steve Harvey's gonna Bethenny Frank Selke why do you think ty Lopez these guys are making millions and millions of dollars I'll bet you Steve Harvey makes 50 million a year why is Steve Harvey gonna come hang out with me dude he wants to learn what's that what's the next play man why does Steve why does Warren Buffett go hang out with with with with the Facebook boys the Google boys why do you know Carlos Slim why they all show up to the same place show me another trick man you know that you remember that ad tricks are for kids tricks are for a freaking super-rich people do and the super wealthy no two tricks and they looking for the tricks why do you think a guy would spend four million dollars to earn a job or 40 million dollars to earn a job that pays 300 grand at Congress because he wants to tricks he wants to know what's the tricks what's the code how do I play the game how do we scam it how do I stack the deck make sure I get a winning hand all the time for my family you know that to your family let's talk to the last caller I'm talking about equity today equity dad equity is dad equity okay you got rotten bodies in the closet it gonna stink get that money working man money should have babies okay what's up man man what's going on in the Ord been working for about a year I mean I think and a forensic right now actually the bank wants to give up for a mortgage and how'd I not met you with hot coffee would have done it I'm just looking for advice on what I should do now whether that's yeah here's a dude here's the dude 20 years old he's renting what are you paying rent hundred a month $1,200 a month fourteen thousand four hundred dollars a year you got a nice swimming pool there yes we have a pool yeah yeah okay so so look he's 20 years old and the bank's like we'll give you a loan you know why cuz the bank I mean the bank banks want to put him in prison this is the new form of slavery man hey little man we'd like to give you a loan for 30 years dog with no money down by the way how good is that she had this better than crack we got him thirty years bro no money down we gonna lock you down 21 23 22nd Street put a little put a little man in his grave the next time he sees daylight it'd be 50 years old all old and baby baby peep done Bank killed you chase who is this Northern Trust City National Wells Fargo just trying to trap you guys into slavery my name is grant cardone there's a car down zone I always keep it real to you man get your equity working for you get it out of your house get it out of your cars okay you're making a banks rich time to make yourself rich time to make your family rich and the only way to get rich is work your ass off every day and any extra money get that extra money earning money having babies equity should have babies cash it out babies cash flow is king cash is trash see you Monday you

Channel: Grant Cardone

Views: 26,424

Keywords: small business ideas, how use equity, small business, what to do with equity, using home equity, business ideas, should i sell home?, equity in my home, refinance, business tips, yt:cc=on, how to grow business, is equity smart?, best way to use house equity, should I use equity?, how to start a business, cardonezone, grant cardone, should i take out equity, best business ideas

Id: RYhJWPLHsTM

Length: 37min 43sec (2263 seconds)

Published: Fri Jul 12 2019