Real Estate Investing Tips

I hate all you real estate investors out there all of you out there buying a house thinking about buying a house or a vacation home or maybe your first apartment deal pay attention to this message my name is Grant Cardone I own five almost five thousand apartments I've done almost a billion dollars for the real estate deals over the last 25 years we currently have about 800 million dollars of assets under management we have five deals for sale right now but I probably won't sell them because they provide so much income that just scoring a profit doesn't really make sense so I know a lot of you out there asked me a lot of questions either you saw me on you go through me right now buddy maybe you saw me on bigger pockets or you ran into me on YouTube I just finished skiing out here in Deer Valley for ten days now that we've been here ten days ten or twelve days oh my legs are killing me and runs with me if you've ever seen in my videos captain ryan he's the pilot of the plane and he he works with me on all the real estate and he asked me coming in here he's like grant who taught you who taught you to real estate game like who taught you to invest in real estate and I said well yeah that's a really good question my dad died when I was 10 so it wasn't him but I used to watch him he'd drive around and look at real estate with my mom then he bought a house right before he died you know when you're kid you're hearing your parents your everything they say and he would he would always talk about real estate being a good deal and then when my mom when my mom took over cuz my dad died what happened was my mom had to sell that house the dream house it wasn't like this kind of dream house it's a ridiculous house right here we just rent it here for two weeks and some of you probably like what why don't you just buy that house rather than paying 150 grand a week for it I'll tell you why here in a second see when my dad died my mom literally the next week had to sell the dream house she had to sell the dream house what it was paid for so Dave Ramsey says you know never have any never have any never have any debt and then then you're free let me tell you something if you got to take care of it you're not free have you gotta fix it you're not free if you got property taxes somebody else doesn't pay for you're not free if you doesn't provide you with income income every month a check every month you're not free because what is freedom really see the reason I got into the real estate game was because I had two businesses one that I was running I started when I was 29 just make a lot of money compare ibly thanks Tom it was making a lot of money comparable I'd left a sales job when I was 29 I was making about a hundred grand a year took forever to I was at that job seven years we started out making two thousand bucks a month then finally learned a sales game one month to make three grand I'm like oh wow I could actually control my income then I went to 8,000 a month over the next five or six years I thought I was the seriously I thought oh I got it made but the problem was the guy was working for he was kind of getting fat and happy yep dude stealing from him I told him about it he said hey mind your own business and next thing you know I'm out of my sales job I don't have any income second thing second move I made was I started my own business pay attention where I'm telling you right now because I know a lot of you out there thinking about starting your own business or maybe you're in transition maybe you got a job you're trying to figure out how to buy your first apartment deal or your first single-family house you're doing a flip pay attention where I'm telling because I'm gonna save you a lot of money and I'll show you how to make a bunch of money I took on this first job at 29 started this job went out on my own and man it would work but I was making it took me about three years to match the money I had been making so I was 32 years 31 years old maybe and I started making the same kind of money that I was making at that sales job and then I boom I lit this baby up and I figured out how to do the deal I'll save that for another video how it took my business started making about a million bucks a year this is what I did with the money and this this message really is for all of you out there that have put some money away I was stacking money I was going out in the marketplace I was working 300 days a year on the road literally leave my home I was living in Houston and I would travel around the country 300 days of the year I was only home 60 days a year the rest of time I'm out pitching pitching and pitching and it was work and I knew one thing about this job that I had this business that I owned if I wasn't pitching it I wasn't making money I was 31 32 years old and I was dying didn't have a relationship couldn't have kids couldn't get married couldn't stay in a relationship because I was never home I was out banging pushing shoving hammer and hitting every day every week discouragement disappointment score discouragement disappointment score and what I would do is I would sack that money away now remember I'm working 300 out of 365 days a year I can't spend money everywhere I'm going I'm making money and I'm putting it away but I didn't know what to put it into started my second business with a partner he starts making money so both businesses start making some money and I end up with a bunch of dough on the side sitting in the bank dying you know what I mean when money's dying when money's dying that means it's not working it's not growing it's not going anyplace my uncle said to me one day son you need to learn how to get your money to work for you as hard as you work for it I'm like yeah that's good good piece of advice you gotta need you can you tell me what to do he's like well I buy these little single-family home section eight and I ran them to people and the government gives me a check and I'm like I don't want anything to do with the government so I started checking out real estate how can I own real estate control real estate use the cash I have in the bank to buy a piece of real estate and have enough tenants pay me a check every month I didn't do it the way my uncle did it my uncle did it one house at a time I did it a hundred units at a time my first deal was 38 units my second deal was 48 units third D listen 90 units now we don't even look at deals that said we that size we look at deals 400 units 500 units now why am I telling you this and what should you take away from this okay my first real estate deal was one house I bought one house I rented it and as soon as they moved out I had problems I had to sell the house just like my mom had to sell the house so the first thing I want you to know is this not all real estate makes you money this piece of real estate right here just got paid 19 million maybe 20 million bucks to build this house he's gonna sell it for 16 million dollars okay I come here I used the damn place for two or three weeks pay the guy 150 or 300 grand for two weeks or three weeks that we stay here and I walk away okay he gets income from one person or eight people a year eight people nine people maybe ten people a year maybe 12 people maybe he rents it every week but he won't do that every year because if it doesn't snow he won't rent it don't buy single-family homes when somebody's not in it you got to make the paycheck you got to pay the check okay when I rent when I buy a hundred units or 40 units or 30 units okay my first deal was 38 units I never had less than 30 for those 38 units rented never did I have less than 34 out of the 38 units rented which was enough money to pay the pay the note at the bank to pay for the roof to be fixed to pay the paint the tenants termites the toilets the classified ads the problems some of them my mama told me one day she's like you don't want to get in real estate people gonna be calling you at midnight I'm like I wish somebody would call me I've been busting my ass my whole damn life so somebody would call me goddamn if somebody would call me that means they're paying me or they want to pay me so what you gonna do see your parents have half of everything right if they're millionaires they got half of the equation right they got just enough money now to say hey I made a bunch of money I took care of my kids I got him a college degree we got a nice house and if I get a divorce it's gonna cost me half that's all a million areas nobody tells you that though nobody tells you that look if you want to make if you want real freedom that's what my dad wanted to my mom real freedom and he never got there because the week after my dad died my mom had to sell that house that is not freedom there was no debt on the house except for the debt the government puts on every piece of property in America property taxes okay if you can't pay the property taxes if you can't pay for the landscaping if you can't pay to add a lawn mowed the snow to be picked up and moved okay the paint to be fixed the cedar the cedar shake that's gonna fall off this place the roof that's gonna get damaged over some period of time if you can't fix all that it's coming out of your pocket you're gonna be worried when you go to sleep at night that's why I buy apartments and office buildings because they provide income from multiple tenants at one piece of property it could be a hundred units two hundred units and five hundred units the bigger the bigger the more units the more protection you get okay listen to what I'm telling you that's one unit big nice big-ass badass house right beautiful okay I'm gonna give them 200 grand 300 grand I'm gonna walk away from this place okay that one section of the roof over there could cost him 300 grand one year and it will by the way that roof will not last forever it's got 25 year life he's got plumbing issues here he's got electrical heating in the floors okay you know the bridge is gonna be a problem we got water fountains swimming pools that swimming pools been at 106 degrees since I got here I'm like crank that bad boy all the way up who do you think's paying the utility bill here not me so look not all real estate makes you money the real estate that makes you money is the real estate that produces income every month positive cash flow cash flow is the Holy Grail the holy grail of all finance is cash flow I have it on hats I got it on my sweat shirts cash flow is why do you want to be involved in real estate not pride of ownership not oh my god I got the best location not oh wow look at my house and look at my swimming pool and look at this and look at that look man cash flows not bragging rights cash flow is financial freedom cash flow so you and your family can sleep at night cash flow is so that you if you got a great job or a second great job or you own your own business you don't have to keep busting your ass every day what happens when you get sick what happens when the marketplace changes what happens with a piece of technology comes along and wipes out your business nothing's gonna wipe out the fact that people have to have a place to live people need a place to rent people need a warm place to go at night that's why we focus all our cash flow properties we focus on 800 to $1,500 a month rents in great markets like Houston Orlando we would even look in Salt Lake City I'm looking at property down here in Salt Lake City right now in Park City right here does Deer Valley actually see all these homes right here this guy he's got 15 million bucks in this house that's not an investment that's dead money that's dumb money okay that's some rich dude him and his wife found the house oh my god we love this place and they built it they got money to throw away okay doesn't mean that's a good deal a good deal is this pays you every month the banks don't pay you every month your stocks don't pay you every month get investments that pay you every month Bitcoin does not pay you every month is not freedom it does not provide you with financial freedom it does not provide you with with financial freedom of worry I don't want to worry it's too much drama in life already man the last thing I want to do is worry about the damn money okay so my advice to you is this get involved in income-producing cash flow positive real estate don't build it buy it don't build it buy it stay away from the government leave the government section eight programs alone they're nothing but problems number three stay away from single-family homes they're losers okay tip number four duplexes and quad plexus six plexus and eight plexus leave them alone they have the worst foreclosure record of all real estate leave them alone okay your first purchase should be at least 16 units preferably 32 and you'll have to look at a hundred deals you'll have to look at a hundred deals - fine - that makes sense today okay then you go to the bank you get a loan for 75 65 to 75 percent of the purchase price let's say you found 32 units cost you three million dollars you put 800 grand down and bar 2.4 million dollars and you're gonna keep that bad boy for the next 10 or 15 or 20 years and you're gonna double it triple your money if you don't know how to do it this makes sense to you makes sense to me man I read all those books about all the Taikan type tycoons the JP Morgan's the Rockefellers they all ended up with real estate funny thing is all the real estate they owned produced income all of it okay Ray Kroc Ray Kroc playa McDonald's was not the hamburgers wasn't the recipes it was the real estate control the real estate you control the income then you got the cash flow and cash flow cash flow is the Holy Grail it is the Holy Grail Amazon is the cash flow company okay Netflix cash flow company cash flow companies will always be more valuable than those that don't produce cash flow so the way for you and I to do that see if my mama my mama would have sold the house and started buying apartments the week after my dad died my mom would have been a multimillionaire she probably been worth twenty or thirty million dollars instead my mama worried for the next 40 years about the little bit of life in church money my daddy left see your parents only know half the truth folks they know how to make money they know how to save money most of them now to save money but they know not the third piece they don't know how to to produce the income I remember my mom telling me you want people calling you you want people calling you at night I said man I wish they would call me that's the dumbest thing I ever heard mom she told me she's gonna don't get involved in real estate some Bad's gonna happen something's going bad if something there's nothing Bad's gonna happen if you don't get involved in real estate folks you need the income next month the following month next year the following year imagine that every month you got a paycheck from 5,000 units do the math if fifteen hundred bucks a month do the math let's say only let's say only 95% of Maryna do the math okay now you can ride on the deal my brother invest with me my sister invest with me my mother-in-law invest with me Elena invest with me good friends close friends great clients mine invest with me at Cardone capital you want to be involved in doing the right thing with real estate learn how to double and triple your money and make cashflow while you wait for the double and the triple some of this stuff some of this blue estate we might not nut might never sell pay attention man this is not real estate right here this is luxury see this this is what rich people do when they board and they need a place to go to or they're like hey let's buy a house up in amounts we're gonna be happy I would never buy this house I'd rent it though I don't know that I'd rent it again but it is nice probably nicest house I've ever been in okay look hey I appreciate you watching if you have questions post them below I'm happy to answer your questions maybe you're looking at your first deal maybe you got a deal you need to sell maybe you got a bunch of deals and you're trying to put them together maybe you bought a single-family home you're like man I should have done that I'll help you get out of it okay I do a show every Monday on real estate how to invest in real estate when YouTube channels slammed with a bunch of real estate advice there's also a podcast that you can grab on iTunes real estate investing made simple if you like this kind of information let me know post below I'm on my vacation but I want to help you I want to help correct I want to give you that that other half of the information that your mommy and daddy mom might not have had I know you teach you didn't have it she he'd have been mine real estate himself I remember my accountant my accounting teacher in college he had a duplex his name was Charlie Whitman I said Charlie once you have 50 of these he just didn't think big enough I don't want trouble dude everybody's got trouble what kind of trouble you want 150 units 500 units or you want one or two units one or two years it's nothing but trouble nothing more problems okay hey god bless be great post your comments below if you liked it let me know

Channel: Grant Cardone

Views: 592,303

Rating: 4.9029899 out of 5

Keywords: investing in real estate, realestate, real estate investing, real estate investing tips, investing, real estate advice, apartments, AUM Shares, how to invest in real estate, grant cardone, luxury realestate, vacation homes, sales, cash flow, passive income, cardonecapital, investing tips, investing advice, real estate, 10X, how to invest, estate, bigger pockets, income property, 10x rule, 10x life, hustle, making money, cardone, section 8, invest, finance, investing for beginners

Id: 3bIUtDnTSLk

Length: 17min 29sec (1049 seconds)

Published: Sat Mar 10 2018