Starting Small in Real Estate - Grant Cardone

hey welcome back to the cardone zone grant cardone here and every week i come to you to talk about your real estate investing and why you should and how you should get into the game of real estate investing as many of you know thank you so much for joining today as many of you know real estate's been a game changer with me this past weekend i did an event where there was seventy eight thousand johnny how many was it yeah it was about eighty thousand people eighty thousand people registered for an event i spent three and a half hours talking about real estate everything from single family homes to duplexes to the opportunities that have been created here post coronavirus america shutdown and the opportunities that it's going to create in real estate investing uh every great cycle that i've been involved in and you can study other investors both in stocks and in alternative investments most of that money is made in cycles on the downside on the on the the other side of an economic expansion we're clearly going through one of those right now if you're listening on sirius xm business radio thank you so much uh you're driving in your car right now hearing this appreciate you uh writing into sirius telling them you love the show thank you so much sirius for putting me on and really appreciate the opportunity to share with you some of the things i've learned over the last 35 years both in business and in real estate my legacy will be the number of people i helped not how much real estate i owned or the plane i fly in or the money that i have it's about getting you the right money as we enter a new week man a protester continue continuing we're burning down america kids are looting and destroying when they could be the very same businesses they're burning to the ground should be their businesses those should be your companies your businesses your apartment buildings while you're protesting i want to help you learn how you could be investing rather than burning down businesses let's build businesses you can call me today 305-865-866-8 six 305-865-8668 today's topic is why you should start small now this has come from coming from mr10x who wrote a book called how to create wealth investing in real estate where i recommended to you that your minimum investment should be 16 you could go to 32 units you should stay in that ban and today i am going to tell you that i would like you to actually start small i'd like you to start working with a smaller mindset on your first deal okay and the reason i want you to go small the first time and i talked about 16s and 32s by the way if you can do small you can do 16s and 32s but we got to get you started somewhere i'm going to actually do another because this was so well received on june what is the date johnny i'll find that for you yeah no i'll tell you right now uh on june the let's see june the 21st or eight let me see grant cardone.com forward slash rei i'm gonna do a free webcast on this i spent three and a half hours doing it this weekend but so many people want this information i think it's june 20th grantcardone.com rei how you can start buying real estate okay the reason i want you to start small is because number one it's easier you can't get started if it's too difficult for you it's like asking my daughter to go out and buy 32 units when she hadn't bought two units hadn't studied it hadn't done the due diligence doesn't know how to get a loan she doesn't know the terminology starting small will at least get you going in the direction it's easier you get to learn the down payment's going to be negligible i'm going to pick out deals on the internet today on this show where i'm going to show you how you could buy deals with literally almost no money maybe even get money back can you imagine buying something there's a hundred and uh i'm sorry there's 1.8 million empty abandoned homes in america that's not foreclosed homes that's abandoned homes in america that you can literally get money i can go to greece right now greece would pay me to buy an island if i made some other agreements i'm gonna show you how to do that today right here in america in your backyard uh and then i'm gonna spend three and a half hours or three hours at least uh doing it on june 20th if you want to register for that it's free okay why small two units one unit maybe two units four units i want you to stays in two think four and below for right now and then we'll we'll elevate the game to five plus uh easier to learn the down payment's going to be negligible uh there is less complications in the management of the property once you purchase but these are the two reasons that i really want you to do it one the opportunity exists when i originally wrote the book how to create wealth investing in real estate the opportunities for two sports and uh smaller properties was not there but because of the economic shutdown across america i said in this book the first stuff to get in trouble in a contraction when i wrote this we were in expansion the first stuff to get in trouble when we go through a cycle cycles go like this okay the cycles go like this okay and then they go back up again this is the up part of the cycle you start getting building going on right here new construction rents start rising right here once the build out becomes up here at the top rents start going down not good vacancies start going up not good okay and this is the part of the cycle that we'll be in right now we had 40 million jobs lost it'll look more like this than like that okay because of the job losses 40 percent by the way of all the jobs lost in america were under i'm sorry 80 of all the jobs lost in america where people that earn less than 40 000 a year and then people like white people like me are wondering why why is those young kids out there burning down the buildings bro look they they can't pay their rent they don't have a job they don't have any money saved there's no way to get rich the the white system the institutions saying you got to go to college to get an advanced degree there's no out for me there's no way what am i going to do i can't be a rapper i can't be a ball player i can't be a fighter you know what i'm gonna go tear up i'm gonna go tear up a store i mean it's understandable i got to tell you if i was 17 18 years old today and i'm a white kid right and i'm in i'm in one of these big cities and i'm feeling like i can't get work okay i hate school hate school hated i hated school 16 17 18 years old absolutely hate it i was already using drugs i got i'm bored i don't have enough to do okay i'm interested in sex but nobody will have sex with me and they i see this stuff going on and everybody's going downtown and there's curfews and there's and i'm seeing people rob stores i'm like you know what i could easily i shamelessly admit if i was the same kid i was today growing up in one of these cities i would be involved in those activities i beat a white guy right there in the middle of it let's go burn the place down now okay steal everything let's go into the pharmacy and grab it i'm not saying people should be doing that they shouldn't what we should be doing is building and investing but nobody was talking to me about that at 17 or 18 years old you know why because i'm too young because i ain't finished school yet okay because it's not my time i should go to college first i'm like why i got to wait man why do i need to wait another seven years to go get a real job to start making real money to build a business it's ridiculous okay the system's broken folks and and so as much as you want to ridicule you all you white guys out there want to ridicule people these young black kids and and kids of color that are burning stuff down you want to ridicule them but put yourself in their shoes no job no money okay can't take care of their moms and dads see their moms and dads the same thing they're going through you're going through okay you you just lost your job you have no money you have no way out tell me you're not going to get frustrated at some point particularly because you're bored okay now right now what's going to happen right now in this cycle is this these guys that bought twos and fours right here and paid too much they bought two units and four units they paid too much for them the people that were living in them just can't make their rents this guy that owns it's like oh oops oopsie daisy i'm over my skis okay and we're going to go into this part of the market and what you're going to do new investors is i'm going to show you right here how to start buying this stuff here here here here and here and this is going to take about probably 12 to 15 months okay now how do you do it are those deals in your backyard do you need to move someplace to buy those i'm going to show you johnny are you connected with this yes sir so i'm going to just go online right now and i'm going to pull i'm going to put up well i just put in this hud foreclosed okay foreclosed homes available as low as ten thousand dollars now you don't need to get the ten thousand dollars the first deal i ever bought was thirty five hundred dollars down there was a savings and loan crisis okay in 1990 uh 1995 let me see what was that was it 98 how old was i 28 plus 58 is 86 okay sorry 1986 1986 is that right johnny is that 58 28 is what yes sir that's 1986. between 1986 and 1995 there was a thing called the the savings and loans crisis okay 1986 i'm gonna put it over here on this side because we are starting to go down to 1995. how about my first deal right here it's on the way down okay it's on the way down i'm probably lowering the trough than that okay but we had already come out of the up part of the cycle so somewhere right in here i bought my first deal it was thirty five hundred dollars to buy my first deal was worth seventy eight thousand dollars uh this is probably wrong right here this is probably drawn more like this okay it's probably drawn more like this and i'll show you how to figure out where you're at in the cycle right here this is a crash savings and loans debacle look it up online savings and loan 1063 and loans collapsed in america there's only like three thousand of them one-third of them collapsed and i bought a piece of property right here with 3 500 down the rent i i charged 525 a month and the payment on that deal i think was uh let me see i can just figure it out right here it's so simple this is so simple to do by the way if you got one of these in a computer you can do this today none of this technology existed back then 75 000 was my loan amount you're like oh my god if i could buy a house for 75 000 today i would i'm gonna show you how to buy a house for 75 grand with no money down in this show today times .0525 uh yeah the payments were like 3 900 a year divided by 12. they were 325 a month okay i think it worked like this 325 and i rented the place for like 550 okay i was making 225 a month times 12 that's 22.50 plus 400 uh 2600 i was making 2600 a year check it out on a 3500 investment that's a 90 return 88 return or something where in the world can you earn 88 on your money okay now i made some mistakes in this deal i made some mistakes in this deal but at least i got started and guess what once you get started once then you can do a second deal the second deal i bought was the next week 20 days later 20 days later i went back to a bank i bought a 70 78 i'm sorry a 90 92 500 piece of property this time i didn't put any money down i put no money down in the deal okay now if i take you to these deals today and i talked a little bit about this saturday um these are foreclosed deals let's just see if we can find anything here in avatura aventura wouldn't be the best market to go to because it's going to be all condos where do you live johnny i live in miami beach miami beach you live in the beach johnny yes sir what's miami uh over here miami uh miami shores no north north miami beach okay let's go north miami beach not not miami i don't want to go miami beach uh let's see we can do eastern shores we can do north miami we can do uh opa-locka we can do miami lakes let's go let's go let's go uh what's that place where the horse county is uh uh gulfstream hollandail okay let's go hollandale see if there's any foreclosures in all the deal or maybe our viewers can give us a place to go to uh yeah post some comments yeah posting comments wait not wait for us where the horses are the equestrian place up up north davey no you don't davey's a county dude yeah but that's miami gardens let's try miami gardens okay let's see if there's any foreclosures in miami garden um oh look at that little thing three bedroom two bath 1 300 square feet these are foreclosures just pages and pages okay there's seven pages of this with no prices okay i'm gonna try something else here i'm gonna try um four uh four foreclosed homes in america i don't want to go to idaho there's southwest ranches there's uh four closed homes in america let's see let's see if i can find zillow on here miami springs oh look let's try this the foreclosure center in zillow whoa buying a foreclosure uh let's see if i can get a list i want to buy something okay there first thing that comes up lake city florida 83 thousand dollars three bedroom two bath okay now how would i buy that deal uh that's on the market right now folks okay it's been on the market can you show this johnny it's been on the market now first the first property i don't know if there's a good location right underneath it 85 000 remember my deal my deal was bought in 1986 for 92 000 and everybody's like you can't buy those houses today man you can't do it today there's two of them right there i can buy right now okay nice looking little houses too i grew up in a house like this right here okay estimated payment on this house is 403 a month it's been on the it's been on zillow for three days okay i guarantee 1400 people have looked at this house already 73 people saved it so you know what there's activity there's interest there's lookers the fox tv won't show you this fox news will the world's coming to an end we're going to burn it down first um but look at this look at this look at this look at this little house okay so now what would i do with this house this is what i would do with this house i got a little research to do on it but 83 000 okay i would go to the bank and say bank give me a loan i'm gonna go live in this house i'm gonna put three thousand dollars down to buy this house you know you can get a loan on this house for that much money right for sure okay almost anybody can get that loan you could probably be out of work and get that loan people get loans for a car for that amount yeah 80 000 and i'm gonna multiply times point because the interest rates are so low today 0.525 that'll be a principal forty two hundred dollars a year divided by twelve my payments are gonna be 350 a month now any of you that live in florida okay this is three bedrooms two baths i'm gonna sell it to a husband and a wife and probably gonna have a kid maybe a second kid coming along it's 1964 square feet and i guarantee you this house will rent for i'm gonna write a number down johnny and you write a number down johnny you tell me what your number is all righty i'm gonna say 1200. i wrote down 1200. johnny oh damn you're insane 1200 i wrote down 1200 okay so let's go ahead and go with the twelve hundred dollars twelve hundred dollars less the three fifty okay that makes eight fifty times twelve eight fifty times twelve should be what uh like uh i don't know ten thousand three hundred dollars let's find out eight fifty times twelve ten thousand two hundred dollars i'm sorry i was off by a whole hundred dollars ten thousand two hundred dollars okay how much did i put down on the house three grand i earned three times my money in one year okay that is a 300 percent 350 return that is 30 i'm sorry that is 30 a month jeez guys gotta look man if you need to start small i don't need to start small but i did you did you don't need to start small but it's better than not starting at all why would you start small easier to get a loan easier to manage easier to to tell the bank i can do this okay you're going to tell them that you're going to live in it you're going to make you're going to change your mind before the deal closes you're going to find somebody to rent it to you're going to probably have a 60-day closing on the deal so that you can actually find your renter caller's all over the place calling in okay if you're loving this folks post your comments below if you're listening on serious radio call them up and say dude where did y'all get this cardone guy he's crazy this guy crazy okay and look dude i'm telling you i might be crazy but that's better than lazy oh and it's better than stupid and it's better than broke i'm teaching people how to build businesses so they don't need to burn them let me tell you you guys you young kids out there man look if you owned a duplex in inner city baltimore right now you owned one of these duplexes you could by the way you and your mama could own this thing you ain't gonna let nobody burn down your neighborhood you're just not gonna do it if we would teach in this country kids to invest rather than white people to invest if we would teach the people in the neighborhoods to invest in their own uh properties you wouldn't let you'd beat people up you'd defend your own property got to find a better way got to find a better way man the old way's not working folks it's failing the school system's failing politics is failing this okay the banks are freaking ripping you off you guys are pissed off at politicians you should be pissed off at the banks they don't pay you anything i just showed you how to take three grand thirty five hundred dollars three thousand dollars make ten thousand dollars on it now watch what's going to happen okay let's say i take 10 years not even 10 years let's just go one year how about one year i got 3 000 invested one year later it paid me 10 000 okay i'm going to put a good tenant in this property we show you how to do this in my training courses i'm going to show you how to get a 24 to 36 month lease on this one asset fix up the property put a little landscaping in front of it maybe take that 10 grand that you made in the first year put a few trees in front of the place look at the place the place needs some trees see he's got trees in the backyard nothing in the front yard big trees mean big money big wood means big wood okay so so we might spend a little bit of money getting the trees getting it dressed out in front okay hedge it make it look good throw a little fertilizer in the grass make it look green okay clean it up power wash it maybe put a little paint on it splash it but most importantly we're going to get a tenon in once i get a tenant in it to win it i risk it for the biscuit then i'm going to go to a real estate investor i'm gonna put this up on a pr place called loopnet i'm gonna post this on loopnet and i'm gonna say look you can earn nine percent on your money look what i did okay so i'm gonna take this deal i'm gonna say look i got a tenant in here at twelve hundred dollars a month for the next three years i have money down they've been renting from me they're cool they're safe the place is protected they got a good job they take care of the asset okay and i'm gonna say twelve hundred dollars a month twelve 1200 times 12 is it's gonna produce fourteen thousand four hundred dollars worth of income you're going to spend about four thousand three hundred and twenty dollars a year collecting the rents it makes ten thousand bucks a year and if you doctor chiropractor investor wanted to wanted to um divide that by divide that by .09 percent uh let's see 10 000 divided by 0.09 and let's talk to a caller johnny all righty okay i'm gonna sell this thing for a hundred and eleven thousand one hundred and eleven dollars what did i pay for johnny three grand i paid three thousand dollars i owe the bank how much uh 85 uh 80 thousand okay i owe the bank eighty thousand so i'm going to make thirty one thousand one hundred eleven dollars i'm gonna pay an uh the real estate agent eighteen hundred bucks to sell it so i'm gonna make thirty thousand dollars thirty thousand would i invest in it three g's oh no i already got my three grand back oh it's free i'm gonna make thirty thousand nine now if you dumb the way i was dumb because i didn't know any better because i wasn't edumacated i sold it you shouldn't actually sell this deal okay what you ought to do is go back to the bank refinance it refinance it or even do a lease option with the dentist don't sell it get him to give you like 20 he collects the rents and keeps the rents and you hope that he loses his business something goes wrong you keep us 20 and do that 10 times okay uh next uh what two saturdays from right now june what june 20th june 20th 2020 20 june 20 2020 i'm going to do a free education class you can register grant cardone.com rei i'm doing it because we had 70 000 people registered not everybody made it this saturday so we're gonna we're gonna take three or four weeks and give you guys a chance to put on your calendar and come see it i'm gonna show you how i started with thirty five hundred dollars i have 1.8 billion dollars worth of real estate i'm not bragging i'm telling you that because it's possible for you to do that i don't know if you want to get that big let's talk some callers i don't know if you want to do that big do you have a deal or do you have a question we got mike from virginia mike what you got mike you got a deal you got a question what's up grant i got a question for you hey where in virginia are you man i'm in manassas virginia manassas okay go ahead what's your question my question is when owning a when you first purchased an apartment building you know how you always say keep it for 10 years right yeah and um how do you know whether you want to sell it or refinance it so this is a great question man this is what i didn't know you're asking a great question everybody should give him a big hand we for asking the best question of the day um yeah look see your plan should be your plan should be to create wealth okay so if i can buy an eighty thousand dollar house with three thousand bucks and i could do that ten times that's why you could start small as long as you think about scaling if i do that ten times i have eight hundred thousand dollars of assets for thirty thousand dollars maybe you can't do all this this year but look dude anybody can come up with three grand especially we're seeing that on tv right now man if you can think about it like give your life dependent on it you can come up with the money i come up with three grand i can get 10 people to let me take three grand each if you were sick you could get three grand right uh you you could rob a cvs this weekend and pick up three grand i mean it's a popular thing to do and probably no chance of you getting arrested this weekend just got to make sure those bills are not marked yeah yeah yeah yeah they blow up in your face so now that being said i might want to keep these assets because if they're renting for let's say let's say i find something in manassas that's written for 1200 today times 10 by the way that's 12 000 a month you guys with me 12 000 a month okay your expenses on this project is going to run about 30 a 30 so about 36 hundred of this this is a monthly figure now we're buying in the right part of the cycle because you got a lot of people that bought real estate last year that are scared don't know what to do and they're going to dump it one of the biggest about 50 of people that buy real estate buy one piece and never do it again because it was too much trouble for them because they never had a plan so watch i'm making eighty four hundred dollars a month in noi if i'd have paid cash my noi on this would be 80 400 okay but i didn't pay cash i put money down so i have debt to service this is going to service the debt this is very simple by the way don't let it like don't get all freaked out say oh my god i don't understand this i borrowed 77 000 10 times i can do this with the banks by the way with almost no money down 10 times okay i have 770 000 worth of debt why do i want debt because that's how you build assets times 0.0525 okay so i'm paying 40 grand 40 grand a month let me see 1200 1200 times 10 okay there's 120 000 a month 36 000 and i got 84 000 worth of noi let me see 87 77 000 times 0.0525 77 000 times .0525 i'm answering your question by the way i know it's seems like i'm not but i am i'm paying 41 000 approximately in debt i'm making 43 000 of free cash flow free net net net folks a month what did i invest no money down because you got your money back uh three grand per unit 30 000 i make that back in one month okay in one year you're going to make 43 000. i'm gonna tell you guys a little secret you know i saw this stuff 516 000 of cash flow a year damn when you gonna sell them bro i wouldn't sell these what i would do is go refinance these i'd wait for some time and i'd go back to the bank and say let's refinance this in addition to the forty thousand dollars by the way i'm paying down almost two percent of the debt a year 770 i'm paying down 1.5 mil no that can't be right i'm paying 157 000 a year down on the debt so remember i did this 10 times i took 80 000 that's why i want you to start small but scale i'm going to get so much hate on this video on the internet yeah we got a bunch of people saying you know i thought you said to start you know 16 or more rant cardone but what what am i doing dude i'm doing it 10 times so i'm buying 20 units right if it's if it's a single family i'm buying 10 units if it's a duplex i'm buying what 20 20. if it was a four plex that'd be smart do it ten times i can anything under five units okay it can't be five and under it's got to be under five units i can i can basically buy as though i'm living in it i can do that ten times so uh yeah i did say that in the book and i said that in the book because of where we were at in a cycle in the cycle we were on the way up i bought i bought i don't know 2 000 units last year i didn't buy one at a time i bought 860 million dollars worth of real estate last year i'm going to buy more real estate in this next cycle than i bought in 30 years and you should too okay so watch i got seventy seven thousand dollars times ten seven hundred and seventy thousand this is the other benefit of real estate is that about two percent of this a year is being paid down fifty a hundred and fifty thousand dollars a year or so is being paid down in debt reduction in ten years i will have paid down 1.5 million dollars of debt in addition to my income okay i'm collecting rent and the rent is paying down the mortgage amount over months over 10 years i will have made a million five hundred thousand dollars in what's called debt reduction in addition to what did i say i was earning a month 40 grand yes sir man that's a lot of money i mean man 43 000 dollars times 10 years no no 45 43 000 times 12 times that's 538 000 a year that's 5.3 million dollars that can't be right i did something wrong go ahead johnny let's talk to our next caller all right we got john in atlanta he's got a deal what's up what's going on john what's up man i just want to say too i bought the uh real estate class over the weekend and a lot of good content i recommend it to everyone oh thank you man thank you that's 120 that's 12 000 a month man okay what's up brother how you doing today man good man um i got a deal for you okay uh saint petersburg florida can i give you an address yes sir yes sir all right 333 fifth street south in saint petersburg florida okay 16 unit property um all redone older property but in a good location okay hold on one second all right hold on one second i want to clean one thing up 80 640. hold on one one second okay 77 000. it's like that movie a beautiful mind over there with all that mess yeah man i'm making 3 600 a month okay 3 600 a month i'm making yeah 3 600 a month on a 3 000 investment folks i make my money back every month plus okay times 10 multiplied times 10 then we rock it okay give me the address 333 5th street south 333 5th street south unit property 16 units st petersburg man let's see oh man this is sexy got my attention 333. see that's the thing about real estate too you can't fake real estate you can fake a watch you can fake a richard i'm sure they've got some richer melees that are fakies should i tell them about my conversation with meek mill this weekend yeah let's do it okay so okay what do you want to know about this thing man um so it's 5.7 percent cap rate uh net cash flow 171 170 just wanted to see what you thought of the deal okay so get give me give me the give me the noi again noi is 171 170. 171 0170 and what what cap rate 5.7 based upon the value that they're selling at yeah and and how do you like i'll tell you what they're asking for right now uh and and and what uh what uh what's the location like uh it's right by tropicana field it's a couple blocks away from you know some shopping areas downtown walkabilities off the bike is awesome it's a great location yeah what do they want 2.9 million for it yeah i called in last week and you said you said 2.8 is what you'd offer for it but you didn't have the address pulled up okay so so look if we were here if we were here in the cycle if we were right here in the cycle he'd get whatever he wants for it uh what happened in the last 60 days is every buyer that he has for that asset how many units are there 16 all studios okay that doesn't bother me at all okay because of where we're at in the cycle we are now here in this cycle okay and he knows it the world knows it every day the media is going to be announcing it what are the rents there uh rents range from depending on the property it's like a grand the 1350. yeah dude i love this deal i got to tell you i love this deal now oh my god look at this johnny can you show this yeah my god oh my god okay check out the screens that's nice i'd live there patrick calhoun is that who you're dealing with yeah yeah i talked to him a few times oh yeah there's the price right there i by the way i did i i figured the price out without seeing the price look at my price 2.97 look at this price okay that's their asking price right so um yeah a couple things i'd want to know here one you you said the lo you like the location right yeah location's awesome can i see the water uh you can't see the water from the apartment so it's a you know smaller building but a few blocks away yeah can i smell it i'm pretty sure i'm pretty sure during low tide you can smell it yeah okay johnny's a fisherman okay um all right so look that's what we're gonna do on this deal you know he bought this he bought this uh he bought 2018. yeah he bought it and fixed it okay this is what happened 2018 he bought it fixed it he's got a certain amount of money in it is it rented right now is it full or did he say yeah 100 100 around it 100 wow that's that's good 100 means he's probably not charging enough so if he's 100 average rents are like 13.50 how much money do you have to put down in this deal uh me and a couple investors we have 20 put down on it if we want to how much 20 me and a couple investors have 20 percent yeah you're gonna need a million dollars to buy this deal okay that's why again like start small might be a help might be a good thing how much money do you personally have a couple hundred thousand okay good so now that makes everything different if you have 200k to put in this deal you you can buy this deal okay you got 200k you're going to go you're going to find some investors the way and we talk about this in my real estate program if you got 200k to put in the deal you're gonna control this deal with two hundred thousand dollars which is no money on a three million dollar asset if i can control three million dollars with 200 grand folks this is how you get rich it's called leverage you're going to go to your friends and say look i need three guys how much do i need a million i need four guys to each put in 200 grand i'm going to pay you guys the first 10 percent so you're going to have four guys give you that you're going to pay them 10 not to own the asset not to own the asset do not give them a piece of that asset what i want you to do is you're going to do the work you're the sweat you got the first 200 you're going to give friends and family an opportunity to earn 10 percent 10 percent divided by 0.012 is 833 times what the bank is going to pay them so you're not going to pay you're going to pay them 10 that's 833 times what the bank's going to pay them you could find there's millions of people millions of people in america okay with 100 with a couple hundred grand millions and millions of people hang with me stay right there i'm going to show you how you can profit from the real estate bus that happened and the real estate boom to come hey grant cardone here and we have all new content at cardoneu.com for free for you we're going through this crazy crisis right now and i thought i'd come to our studio i just finished shooting content on how to get a job in under 72 hours not just a job but your dream job also you'll find information in there how to manage a team remotely we have 105 employees that we're managing remotely and keeping our numbers up in spite of this massive contraction going on look i know it's tough right now i know things are hard i want to make sure i'm here with you to assist you to help you with what you need right now it's not just about the old content it's about taking all the content that we 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business from home or how to run a traditional business from where you're at right now grab it take advantage of it next 30 days it's free for you by the way if you're unemployed it's free for as long as you're out of work i guarantee i'll get you a job in 72 hours if your business is down it's free until i guarantee we'll get your business up and running and going again and i guarantee you we're going to get through this and you're going to be bigger and you're going to be better and you're going to be more unstoppable hey grab it right now this will help hey welcome back grant cardone here every week i come to you to talk about how well you know sometimes it's money sometimes it's marriage sometimes it's business sales business growth scaling today i'm talking to you about real estate how you can start creating assets uh investing in real estate okay you know after watching all the the burning the looting the the anger the pain in this country over the weekend i wrote some of my friends that i've worked with johnny i was telling you this on break here's a guy i wrote guy named snoop said hey snoop grant cardone here i want to help underprivileged kids of color learn how to make money kids in inner cities need help hope and a higher purpose and they need it now the school system's too slow and the government can't do it despite being raised by a single mother with a drug problem and a failing education system i figured out how to make it me and snoop worked together before so he knows who i am kids are burning businesses today when they could be building them they're protesting when they could be investing i have the technology and a system to deliver millions of education to millions of kids in a way they can get it your celebrity would rocket fuel this project i already created and funded a foundation to fund the activity a million kids uh we will teach them how to earn real money make money online start a business with no money and generate generational wealth and by the way i'm white and that's important snoop because america needs to demonstrate examples of white men who are willing to mentor kids of color without a political agenda if you're interested in helping me hit me back snoop called me back meek called me back damon john's in steve harvey's in uh one other person said snoop dogg that's meek mills these are big guys these big guys i love hearing you johnny yeah me too you know snoop's like you you you're the financial guru man he you know grant grant there's true story snoop's like we could change things for 500 years you can't go back to school to do this folks okay you guys do not need to go spend money at harvard or yale or mit to learn how to invest assets or assets we're getting out of school kids are getting out of school they don't know the difference between an asset and a liability they don't know doing between making money earning money using money leveraging money spending money debt i mean they got kids coming out today man don't know the difference between debt consumer debt and business debt so so if you guys want to help let me know grant cardone foundation we have the funds put together to go out and literally educate one million inner city kids you gotta you gotta either be black brown of color uh in a low low-risk area in a high-risk area oh yeah yeah high-risk areas or without a father okay so you could be a white kid obviously a white kid that's got problems whoever if you're a kid with problems you don't have direction you're bored educational assistant's failing i want to help right now while you're here today and by the way appreciate you joining the show if you like this on you're on youtube please subscribe to the channel posting comments you know i like those things it helps me with the algorithm or something facebook you facebook fools okay quit just using cardone okay come on man give me some love share the stream i'm gonna show you now i'm gonna show you john switch to my computer here's the deal that i found in on zillow lake worth texas or lake worth of florida that's what i was thinking about horse countries 59 000 okay johnny write down what you think this would rent for damn right now i think probably like 1500 bucks i wrote 13.50 okay it's 59 000 lake worth this decent neighborhood 59 thousand dollars how long has it been on the market johnny can you tell what it says let's see it's been on the market yeah if you scroll down a little bit i'll be able to see oh he he's not controlling this so it's been on the market look i'm pulling up the whole history again real estate you can't fake real estate man it's all recorded the price changed like about a month ago price change oh somebody got stimulated somebody got stimulated they went from 79 89 99 200 oh it's sold for 200 fool yeah some fool stumbled across his wanker find out he didn't know nothing bang got a little ahead of himself fell out over his skis so this is a 200 000 asset that you could buy today for 59k this is with the bank right now the bank had this on the market by the way 212 611 19 513 19. if they wanted 89 000 for it in 19 what do you think they want for it today they want it to go away this is a new number okay i just added you know one two three four five six seven eight nine ten the number system in real estate there's another number make it go away okay make it go away they want to sell this okay you could get a deal on this deal with no money down you could give them the 59 000. you could tell the bank look i got good credit i mean that would help you in this situation if you got bad credit just tell them i got bad credit but but i'm better i got better credit than the guy in that place right now that's mr nobody that's renting that place right now so so looking at it on zillow like it sold for 200 and within the last year it's been cut like a hundred and something thousand dollars what do you think what do you think's up with this place that's what it means it means make it go away somebody said make it disappear somebody just wants to pay it pay the debt i need it to go away wow okay here's the tax history on the place see in 2008 look what happened in 2008 okay look it went from plus tax assessment tax assessment it gets assessed each year it's getting hammered it drops 22 percent the next year 17 next year 41 why am i showing you that 2008 2009 2010 what was going on in america big bust busto where we in right now look up up up and another bust oh the wuhan got us some opportunity for the right person we finally something imported from china helping me okay look the payment on this deal is going to be on 60 grand it's going to be 18 000 bucks uh 1800 let me see let me just do the math times 60 000 times 0.0525 for those of you who've seen me use another number 615 and 625 i'm using 0.0525 right now because rates are down makes it even better time 30 150 dollars johnny what per year i might go scoop that per year divided by twelve i don't have to pay him by the year i can pay him by the dollars month 50 cents per month they might add a little insurance on there to make sure you don't walk away that's called a pmi okay they might charge you another 30 to 60 bucks a month big deal you got insurance on top of that yes yes you do but you're going to rent the place the place is going to rent for 13.50 a month okay less let's say you self-manage the thing you don't have any expenses they paid the electric bill they paid a water bill they pay the landscaping they pay to pay it they pay to fix it they pay to break it okay less the what bang bang 262. how much is that like 1100 a month net net 1100 a month wow times 12 how much is that johnny that'd be 11 thousand plus twenty two hundred thirteen thousand two hundred dollars what did you put down three grand it's nothing like 200 bucks a month after you made 4x on your money in year one in year one you would have made four times on your money 400 percent now get a tenant in there okay get a tenant in there wait a couple years go back to the bank refinance it okay one day that place is going to be worth 150 000 i'm going to go back to the bank that's called a refi don't do it now do it next year next year give yourself 18 months do a refund the place show that you've got a good strong tenant in the place okay go back to let's let's get it refined for 150 000 it'll get there the bank's going to give you let's say they give you 75 000 for a loan what did you pay for it 59 okay fifty nine thousand walk away with sixteen thousand dollars okay plus what plus the money you made every month thirteen grand plus the 13 000 okay refinance it keep the property keep the property and keep written it now you have a hundred and fifty thousand dollar asset you've already made thirteen thousand plus you took sixteen 000 out you've made 29 000 you got your three grand down back you have no money in the deal this return now goes into this symbol infinite infinite you can't get off the track baby it's a spiritual event i just go whoop whoop whoop it's the infinite loop you want to be on the loop this is how people go to work every day they go to work they go to work they go to work dude when you invest you want your money to keep going into the hyperloop do it 10 times you got 10 loops do it 100 times how about 7 000 720 times okay let's talk to our callers grant cardone here you're in the cardone zone man i try to make this stuff simple for you guys so no matter who you are man you guys do not need to go back to school to learn how to create wealth for yourself and even if you're going to go back to school please once you get out learn how to create wealth for yourself and your family you got john in st louis john do you have a deal or do you have a question i have a question what is it how you doing grant um thanks for calling thanks for calling i was on the uh i was on the webinar over the weekend i bought the um about the real estate uh plan i'm anxious to learn a lot more about it congratulations about my question is about interest-only mortgages versus interest and principal mortgages yes could you spend a little bit of time talking about that it seems like a lot of the deals that you talked about over the weekend that were much bigger money deals were were or they seemed like they were interest only deals yes i've done i've done two four families here in st louis um both times we did interest only both times we held for about 10 years and both times we got clobbered so if you could talk about that a little bit that would be great okay so there's a principal and interest loan and then there's the interest only that that uh that that john's asking about okay so on a principal and interest only loan i can do three to five percent down particularly these are these are uh four units and below okay first ten assets that you purchase that are four units and below you can probably do three to five percent down if you're military you can probably get away with less than that when you go to single family or you go above four you go to commercial units you're gonna you're gonna start being putting 20 to 30 percent down when you get into the 35 to 50 down payments okay you will be able to go to life insurance companies and fannie mae and freddie mac commercial lenders uh and request an interest only loan um let me ask you john when you got clobbered on that deal how much were y'all putting down we put down 20 yeah so so you know i'm buying deals today for like uh i bought a deal for 67 million dollars last year we put down i think i put down on that deal 20 million so i financed 47 so they're like yeah we'll give you interest only on the interest only on on a big money down loan like that principle and interest is not required principle part of it's not required because i'm prepaying the interest so heavy up front and the reason you got clobbered clobbered was you over leveraged that deal um you would have probably you'd have probably lost it even if it was just piano even if it wasn't interest only what we found was if we if we tried to do principle and interest that the deal would not support the rents would not support the deal so it obviously was too much leverage yeah exactly so if you'd had done the pni the two percent threw you off right so if your interest payment was let's say ten thousand a month and then the extra whatever uh two or three or four five hundred dollars it was going to go to principal through the deal off the deal was already over leveraged so not to complicate this and the reason why people need to start small is there's a thing called dcr and i never go i'm somewhere between a 120 and a 125 dcr meaning that if if if i have ten thousand dollars worth of debt i need a hundred and twenty five thousand dollars worth of or twelve thousand five hundred dollars worth of income noi to support that so you don't wanna over leverage one of the big mistakes in real estate is not doing deals second second problem can be i over leverage i put too much debt on a deal so when i use interest only i'm going to be at 35 to 50 percent as a down payment uh to do that deal i think 20 grands and what we want to do in real estate guys you don't want to lose money in real estate okay you don't want to lose the deal okay yeah that was like it was probably more than i think it was 27 thousand dollars done actually so in this deal this 67 000 ryan's hit me right now you put 27 000 down on uh 67 27 divided by 67. 40 down yeah so we did 60 uh leverage on the deal hope that helps john appreciate you calling in i know you're going to enjoy the course okay grant cardone.com rei folks if you want to join see what john talked about yesterday okay he spent three hours with me saturday uh all i'm doing is talking about deals in real estate how to buy it how to find how to fund it how to raise money for it okay how to start small or start big uh my first deal was one unit 20 days later i bought a second unit i rented the first one lived in the second one my third deal was an apartment deal that apartment deal may be five million dollars okay i put 350 grand down this is not uncommon by the way i'm not the only guy that's done this there's a lot of people in this country i put 350 grand down raised most of it i made 5 million dollars in 47 months i took that money i 1031 exchanged it i didn't pay any taxes no taxes it's called deferment i deferred the taxes i took the five million dollars and bought a 15 million dollar asset okay the first deal i ever bought was three 1.9 million dollars i took the money from this deal about a 15 million dollar deal that's how you build wealth you build assets you do not build wealth with work you build wealth with assets you do not build wealth with work or talent you build it with assets had i not done this people would know me oh my god that guy's a good speaker and he's the guy that's always yelling and screaming on youtube and he does the big conferences and he's a public speaker and yeah i've worked with fortune 500 companies and i got some ideas about retail and businesses and but dude you you i wouldn't own a plane my plane was bought with real estate income passive income wealth you need wealth so there's kids getting out of college right now or kids you know blowing out of high school they're like this is too long it's taking me too long to get out johnny let's talk talk to somebody nicholas because there's no way out dude all you guys are doing is getting minimum wage job man the the the politicians let's get them some minimum wage minimum wage dude that that that that is not anybody's concern today is not minimum wage i need wealth building vehicles i don't want it just a job i want a wealth building vehicles i want freedom for my kids all right you got nick in canada nick what's up man what's up nick hey granny you there yeah i'm here man what's happening am i live yeah it's me is that you is that you it is it is i just paused my computer so you don't double up it's an honor i'm your biggest fan of saskatchewan i got a deal for you it's uh if you're ready how can i watch the show johnny yeah go ahead man you can watch it on youtube and facebook i'm trying to man 727 fifth avenue 727 727 what fifth avenue north fifth fifth avenue north you in new york man you buying something in new york i mean yeah it's not new york it's in canada oh no no it's not new york fifth avenue where in canada man where in canada is it saskatoon oh saskatoon why didn't you say that the first time i did i said it four times i'm sorry grant you just keep saying as many times i ask you okay let's see man saskatoon i've been to saskatoon like five four or five times when was that i got an std in that saskatoon actually no you didn't you guys just just sure did just to set the record straight he sure did sure did i'm telling you right now he's kidding you guys go for anything man uh but i didn't meet a girl in saskatoon thank you really i did i did i was working for jubilee ford over there you know that dude you know that place that's so cool like do you know them yeah well i did some work for him i was 33 years old and i did some work for what was his name that owns that vaughn yes there's one guy he owns all of them right yeah yeah good dude man yeah what's his last name jubilee motors what what was the guy that owned uh oh you know grant i don't know personally i've been on a boat with him once but okay so look this is an off market deal it's unit 3 is that right uh no it's an 18 unit it's an 18 unit it's 727 fifth avenue north okay i put in the wrong address maybe okay is there a way i can shoot it i don't know what you're capable of man man uh let's see here i don't know man let me see maybe i'll find it maybe i'll find it saskatoon one two three bedrooms just give me the numbers how about you give me the numbers okay sure eighteen units two five nine five asking two point five two point six million asking for all right so uh why do you like this deal because in saskatoon i think out of the areas it's probably one of the better areas downtown by the river so it's in the mixer for saskatchewan saskatchewan the biggest cities how much of the rent how much of the rents so the rents are uh some are 1025 875 995 745 wow so i'm going to take i'm going to take i'm going to take a 8.75 round 8.75 uh by the way this is canadian money right yeah exactly i mean this thing's cheap folks okay 144 000 times seventy percent in america this is uh basically uh you know two million dollar under two million dollars for a hundred and uh for eighteen units okay on the surface i like this deal uh 18 units 147 thousand dollars of noi i'm gonna take the 2.6 what kind of loan can you get up in canada how much different is the debt there so i can get two loans one is 25 like you always recommend yeah that would be 650 down yeah 56.50 down the other one they might do is a 15 an insured loan with 15 15 15 yeah and g i just i just sent you the link christian over here found the property so you can take a look okay okay and then um oh yeah that's cool man see that's the thing about real estate notice when i looked at it it made me sit down david kurz the lister extremely well maintained city park 18 unit fully occupied for three consecutive years you see what he's doing there's they're doing what i told that other guy to do get a tenant put a two to three year lease on it most people don't do that they do 10 month leases you can't you can't find 18 people that'll give you a commitment um when's the last time this traded my friend do you know [ __ ] i had that grant i because i've been looking at this for about a year i'm gonna say uh take your time i'm gonna say ten years yeah i'm going to say 10 years ago traded okay good so i'd like to know where the guy's at from 10 years ago because i do want him to make some money on the deal um 147 times no i'm sorry 18 times 850 times 12 times 70. 128 thousand dollars a year what do you have for the noi 147 331 okay 147 so i'm gonna divide the 147 by the the two six and we got a 5.6 cap okay so where i'd like to be in this deal is i'd like to be at uh i'd like to be at 147 divided by 0.0725 i don't think you can get there but man i'd love to be at two million dollars on this deal okay we got 2.3 but you're better yeah i'd like to be at 2 million dollars go ahead and put 600 grand down and you're going to this thing's going to scream okay 1.4 million dollars 1.4 million in debt times times 0.0525 equals three thousand and one forty seven seventy three thousand you're going to make seventy thousand dollars a year seventy grand a year divided by three hundred no by eight hundred no by would i say one point four by six 670 oh man i love this deal now divided by 600 it's a 12 return on my money but look some of these deals i showed you earlier these twos and fours even those one units i showed you those are 300 x for 300 returns in year one folks look if you want to learn this game stick close to me every monday i do a show like this how to invest in real estate how to get started you want to start with one unit two units four units eight units once you do four units ten times okay you do four units ten times how many units is that imagine i take i take four units they each rent for a thousand dollars a month and i multiply that times ten times twelve or how about like this times twelve times and do it ten times okay it's four thousand dollars times twelve is forty eight thousand dollars forty eight thousand times twelve or ten it's four hundred eighty thousand dollars four hundred and eighty thousand jeez that's more than your job pays you right now gross income okay i'm gonna operate that for about 30 percent of the 480 480 times 0.70 okay 336 that's going to be my noi on the deal why why is that number important because i'm going to find a bank or a buyer that says hey i'll be happy to have like a seven percent return on that 336 thousand i can show you how to do all this folks and guess what i got i got four million eight hundred thousand dollars worth of assets by doing this assets brand you still there yeah i'm still here oh i'm sorry i may ask you a question about capri uh sure okay you know like the higher the cap because you said they're independently related like what goes up one goes down so my question is the higher the cap rate wouldn't the deal would be worth more because it's paying more well well when cap rates go up right when cap rates go up a cap rate goes up value goes down so this is your value right so so if okay i got 10 percent right here a higher cap rate my value had to go down for me to get the 10 return as the value goes up okay the cap rate gets shrunk so the lower the cap rate the higher the price i can pay typically lower cap rates buy better properties not always because what i'm going to do is i'm going to go on a property spit on it walk on it i'm going to bless the place and i'm gonna take what you what you paid maybe uh uh i've done this i mean i can't tell you how many times i've done this i found the right seller at the right time remember what i said about the cycles okay you had a deal that was a a six cap right here that could be an eight cap two months later because this guy got scared fear drives the cap rate up he has to pay he has to pay me he has to basically drop his price and my rate goes up because the the value of the property went down but the rent stayed the same like all this bad news there's all this bad news in the marketplace oh my god nobody's paying their rent what are we at right now 98 last 97.8 collected ladies and gentlemen nobody's telling you that cnbc collected collected we collected the money on 98 which is not a lot different than it was in january but if i got a seller that put too much money on it or built something and they're scared or they need money right now and they got the corona thing to hit and they got people out of work and they're like we got to get out of this deal they got partners on the deal the partner could be driving the deal right here the partner was happy right here over here he was happy everything was fine okay ah everything's fine everything's cool now all of a sudden [ __ ] hits the fan he's like freaked out of his mind same look on his face by the way but different words coming out of his mouth words are sell it make it go away this is where i want to grab this deal we are in this part of the cycle right here okay so i could literally buy something that was a six a four cap i could buy something that was a four cap values up here now the four cap i'm in miami i could find a deal and say hey dude i'm gonna pay you a six cap now i didn't change the value just change the price i paid all i got to do is get time time okay see that little thing right there this thing is time you when you see these ups and downs when you see these markets go like this what people don't look like look look at is this see this time what happened over time values went back up i started with 3 500 i started way down here okay today today the number to you guys it looks like oh my god man it's way up here right what you don't understand is the 35 years i spent learning how to do this deal really it went like this okay on a graph my graph would look like this and then we're going to bail out johnny i know you want to go johnny johnny's got places to go no no i want to be here see my my asset you should graph your assets most people their assets no matter how much they work this is their income up here okay they're in all they do is focus on their income but they never focus on their assets because they're spending too much time on their asses okay my assets did like this okay and then started learning the game and then they went like that it's probably probably what it looks like okay my first first of all was nothing right here then i went and bought a 200 000 deal about a eight thousand dollar deal okay that was an asset i was able to keep it then i added two hundred thousand next thing you know i got six deals and then then i got sixteen then i got a thousand then i got you see you see what i'm saying and the assets build the value and then one day i looked up and i got 8 000 units man but it's not how many units i had at that point it was the value of the assets themselves and they continue to go up over time what you don't see in here is 1993 1996 2001 2008 you don't see the crashes okay what you see is the collection of assets when you look at warren buffett's net worth valuation you just see this wang straight up okay you don't see the crashes and the losses you see the accumulation of assets and that's what real estate does if you're not in a position to buy stocks you can't go buy millions of dollars of coca-cola you don't know anything about general electric you don't know anything about the who owns netflix or what they're doing with you you don't have buddies at google you're not willing to spend 1400 on um amazon stock or you don't want to buy 10 000 worth of bitcoin to get you a bit you don't want to gamble what you do what you should do is you should go learn about that asset right there that one right there that i'm looking at okay or go go go learn about this one right here go learn about 33 33 5th street 16 units in st petersburg florida that is a real deal you cannot fake that you cannot fake that you can fake how good this water is you can put little things on and say it's good water it's great water it's aquafina water it's speaking villa villa water it's the purest water it's the kakakot water okay but the truth is man you can't fake this this is what this is you can fake a lambo you could fake a jet you could fake a jet they got people faking jets now man they got little they got places inside uh dressing places in in retail stores now where they got the cockpit you're changing station see if you can show that johnny you sh you can fake a jet now you can't fake a jet and put your name on it you could photoshop a jet that jet i got i can't fake that you cannot fake uh 50 000 pounds of fuel but you can fake a lot of things that's my point you can fake your followers on instagram you can fake your lips okay ryan secco man he's getting his hair removed he could fake the fact that he hairy chest he's here with me right now but you can't fake real estate by the way and if you collect enough real estate man [ __ ] you won't have to fake [ __ ] okay that's why all you guys out there there you go that that's not a cockpit that's a dressing room yeah if you see in the background you see that guy over there with the wrestling can't make a jet i've been saying you can't fake a jet but you can can take a jet actually you can fake a cockpit i think you can even fake the [ __ ] [Laughter] he meant rooster okay look man i really love you guys you know i i i know i know i don't always say it right i offend a lot of people if i offended you today please you knew that you knew that could happen to you before you came to watch this today i know a lot of you don't like me the first time you see me we had somebody watching a real estate course the other day three and a half hours he watched me talk teaching people about real estate what did he tell who did he tell that too this morning to allen allen what did he tell you is alan in there yeah alan telling the story alan which part the guy the guy this morning that told you hey i bought the pro i watched your boy this weekend even though i don't like him whatever he told you i don't know yeah he's like your boy grant you know i don't like the guy like personality wise but man that guy does no real estate yeah and he's a builder he's a he's a big builder in l.a you can't fake dude you can't fake what you know like you either know the game or you don't know the game i know this game okay i know this game i've done two billion dollars worth of real estate deals you can't fake that i can't tell people i've done that and not done it okay like if you just go grant cardone uh see like even the net worth thing you can fake net worth what's the internet say i'm worth today oh 300 million that's so stupid let's see who who who are these people saying this grant cardone from fame to riches wha who is this you got forbes saying it you got but you can fake that that's my point here's celebrity network let's see what celebrity network says 300 million dollars okay that ain't even the best picture but look that that could be true it might not be true i don't know okay let me let me show you something you can't fake grant cardone by addison what's it called in naples this is a public record man grant cardone cardone caught on capital acquires 294 unit apartment complex in naples florida real estate investment firm cardone capital is pleased to announce the acquisition of 10x living at the addison place located in naples florida built on 2019 consisting of 294 units this multi-family acquisition will bring the cardone's portfolio to a total of 25 properties 7 722 units and 1.7 billion dollars of a u and m there's frank kern advertising on me he always got to do that stop seeing his ad why because i already i'm not interested in that ad okay okay now now now if you guys think maybe i could have written that ad maybe i could have written that story right there okay so let's just go see let's go see addison in naples oh there's a picture of it man god dang addison place look at that sexy beast okay you guys want to know how to get rich i know we're over i know johnny we're a little over right now but it don't matter okay what matters what matters is what matters is your w and the way to get to w is to get the a's a comes before w in the dictionary a equals assets w equals wealth you get enough assets and you get wealth okay and wealth by the way if you look it up in the dictionary comes from well the word wealth comes from being well you're doing well okay 85 million dollars johnny uh i mean ronnie ronnie mr used to be harry on his chest what what is he took the hair off his chest and put it on his face okay i would not put down on that deal 30 million okay how much confidence did i have in that deal 100 okay 30 million okay i think that that property is going to pay me 1.8 million dollars a year i don't know maybe 1.5 million to own it i'm going to get paid 1.5 million on my 30 million for the first couple of years and then the rents are going to go up when the rents go up remember the cycles remember the cycles okay rent rent if you look at rent cycles that's one thing okay cash cycles that's another thing business cycles is another thing uh employment cycle is another thing there's cycles the population cycles there's all these cycles well there just happens to be an increase of cycles of people moving into florida right now how many people moved florida a month 1 000 a people a day come to florida new york and new jersey are literally pushing people down here those numbers will continue to go northward okay that's been happening for years by the way naples florida happens to be a retirement community okay what's in a retirement community people that are rich trillions of dollars trillions of dollars is sitting on the west coast of florida right now quietly ain't no they know no protesting going on in naples okay so watch yeah people in naples don't even know what amazon is they've never been on the internet they probably own some of amazon yeah exactly so so it's going to pay me 1.5 million in the next 10 years it will pay me 15 million dollars if the rents never go up the rents never went up if the rents go up slightly the average rent at this property is 1500 if by the end of this the rents are 500 higher than they are right now 500 divided by 36 months that's 13 and 80 cents a month if the rents go up 13 and 80 cents per month for the next how many years did i say 10 let's say the rents go up 500 bucks a month how many units there ryan 294 units okay i'm going to show you how i do the math i take the worst case scenario what's my return on investment you could do this with one unit by the way okay if the rents go up over 10 years that's why that line that line helps you it saves you the line is time okay so important like that that's why you don't want to over leverage never lose your real estate ever okay so let's see uh 500 bucks times how many units yeah if you guys want to join this and have a full training it's grant cardone.com forward slash r e i that would increase my cash flow 1 million 764 000 per year now what does this number have to do with this number in the first year my cash flow was 1.5 million by the 10th year my cash flow would still be 1.5 million plus the rent increase okay the rent increase is greater than the first year's total right when i take the rents from fifteen hundred to two thousand dollars it does not cost me any more to operate the property that's what people don't understand my operational cost does not go up because my rent went up that's called inflation inflation doesn't cost anything i mean unless you don't have assets and then it'll cost you everything you might want to tweet me or dm me that okay inflation costs you nothing okay unless you don't have anything you understand if you have assets inflation helps you if you have no assets you're paying for my assets to go up in value you're paying me to inflate my assets and if you have inflation you want what you want assets okay i will literally make more money off of inflation here than i will than i will the actual asset warren buffett said inflation is probably one of the most complicated subjects in the world he said maybe two or three people in the entire planet even fully understand it including himself by the way okay but we know this assets go up with inflation okay what your your dollars go down in value so the only way to keep up with deflation of assets of cash is to inflate assets okay if you want wealth you got to get assets thank you for watching today hope you enjoyed if you got a question post below if you haven't subscribed please do that's a free channel when you guys like or comment you know it helps with algorithms and stuff and more people watch the show and blah blah blah and i appreciate all that but mostly what i appreciate is you and your time and i hope i hope uh i hope this channel i watch it all the time to see for comments so i hope that if you love me you let me know if you hate me please let me know you

Channel: Grant Cardone

Views: 130,709

Rating: 4.905869 out of 5

Keywords: grantcardone, grant cardone, 10x, money, finance, business, sales, motivation, yt:cc=on

Id: Ty0IHg8RlXQ

Length: 81min 58sec (4918 seconds)

Published: Mon Nov 02 2020