hey welcome back to the cardones 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 it was about eighty thousand people over 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 shut down and the opportunities that it's going to create in real estate investing 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's made in cycles on the downside on the on the 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 you're driving in your car right now here in this appreciate you writing in to 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 thirty five 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 but 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 eight six five eight six six eight three or five eight six five eight six six eight today's topic is why you should are small now this has come from coming from mr. 10x who wrote a book called how to create wealth investing in real estate where I recommended to you that your minimum investments should be 16 you could go to 32 units you should stay in that band 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 16 and 32 s by the way if you can do small you can do 16 s and 32 s but we got to get you started somewhere I'm gonna actually do another because this was so well received on June what is the day Johnny I find that's where yeah no I'll tell you right now on June the C June the 21st or 8th let me see Grant Cardone com /r e 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 Grant Cardone calm for /re ah how you can start buying real estate ok 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 about 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 alone she doesn't know the terminology starting small will at least get you going in the direction it's easier you get to learn downpayments gonna be negligible I'm gonna pick out deals on the internet today on this show where I'm gonna 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 I'm sorry there's 1.8 million empty abandoned homes in America that's not foreclosed homes that's abandoned homes in America then 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 and then I'm gonna spend three and a half hours or three hours at least doing it on June 20th if you want to register for that it's free ok why small two units one unit maybe two units four units I want you to stays in to think four and below for right now and then will will elevate the game to 5 plus easier to learn the down payment is going to be negligible there is less complications in the management of the property once you purchase but these are the two reasons 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 to score since 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 ok the cycles go like this ok 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 rent 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 ok and this is the part of the cycle that will be in right now we had 40 million jobs lost it'll look more like this than like that ok because of the job losses 40 percent by the way of all the jobs lost in America we're under I'm sorry 80 percent of all the jobs lost in America where people that are less than $40,000 a year and then people like white people like me and wonder 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 the white system the institution saying you got to go to college to get an advanced degree there's no out for me there's no wait what if what am I gonna do I can't be a rapper I can't be a ballplayer 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 hate it I hated school 16 17 18 years old absolutely hated 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'll have sex with me and they I see this stuff going on and everybody's going downtown and there's curfews and nurse and I'm seeing people robbed stores I'm like you know what I could easily 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'd be the white guy right there in the middle of it let's go burn the place down now he 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 cuz I'm too young cuz I ain't finished school yet okay cuz it's not my time I should go to college first I'm like why I gotta 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 I want to ridicule people these young black kids and and your 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 the moms and dads see their moms and dads the same thing they're going through you're going through okay you-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 cuz 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 rinse this guy that owns it's like Oh oops oopsy-daisy I'm over my skis okay and we're gonna go to this part of the market and what you're gonna 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 gonna show you Johnny are you connected with this yes sir so I'm gonna just go online right now and I'm gonna pull I'm gonna put up well I just put in this HUD foreclosed okay foreclosed homes available as low as $10,000 now you don't need to get the $10,000 the first deal I ever bought was $3,500 down there was a savings and loan crisis okay in 1990 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 johnie's that's 5828 is what yes sir this 1986 between 1986 and 1995 there was a theme 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 I bought my first deal right here it's on the way down okay it's on the way down I'm probably lower in 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 $3500 to buy my first deal was for seventy eight thousand dollars 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 there's a crash savings and loans debacle look it up online savings and loan 1063 savings 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 $3500 down the rent I charged 525 a month and the payment on that deal I think was let me see I can just figure it out right here this is 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 going to show you how to buy a house for 75 grand with no money down in this show today times 0.05 to 5 yeah the payments were like thirty nine hundred dollars a year divided by twelve they were three twenty five a month okay I think it worked like this three twenty five and I rented the place for like five fifty okay I was making $225 a month times 12 that's 2250 plus four hundred twenty-six hundred I was making $2,600 a year check it out on a 3500 our investment that's a ninety percent return eighty eight percent return or something where in the world can you earn eighty eight percent 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 twenty days later twenty days later I went back to a bank I bought a seventy seventy eight I'm sorry a ninety ninety two thousand five hundred dollar 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 these are for closed deals let's just see if we could find anything here in Aventura Aventura wouldn't be the best market to go to because this is gonna be all condos where do you live Johnny I live in Miami Beach Miami Beach you live in a beach Johnny yes sir what's Miami over here Miami Miami Shores I am north North Miami Beach okay let's go North Miami Beach no not Miami I don't want to go Miami Beach it like way let's see we can do eastern shores we can do north miami we can do opa-locka we can do Miami Lakes let's go let's go let's go what's that place where the horse county is Gulf Stream Hallandale okay let's go Hallandale see if there's any foreclosures in all the deal or maybe our viewers can give us a place to go to Busan Cummins yeah posting comments wait not wait for us where the where the horses are the equestrian place up mmm Davey you know Davey's the County dude yeah but that's Miami Gardens did let's try Miami Gardens okay let's see if there's any foreclosures in Miami gardening 3-bedroom 2bath 1,300 square feet these are foreclosures just pages and pages okay there's seven pages of this with no prices so come and try something else I'm gonna try for four foreclosed homes in America I don't want to go to Idaho there's Southwest Ranches there's a foreclosed homes in America let's see let's see if I can find Zillow on air Miami Springs oh look let's try this the foreclosure center and Zillow whoa buying a foreclosure let's see if I can get a list I want to buy something okay there first thing that comes up Lake City Florida $83,000 3-bedroom 2bath okay now how would I buy that deal 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 ninety two thousand 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 four hundred and three dollars a month it's been on the it's been on Zillow for three days okay I guarantee 1,400 people have looked at this house already 73 people saved it so you know what there's activity there's interest there's lookers no Fox TV won't show you this Fox News whoa the world's coming to an end we're gonna burn it down first 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 got a little research to do on it but eighty-three thousand dollars 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 $3,000 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 getting loans for a car for that amount yeah eighty thousand and I'm gonna multiply times point because the interest rates are so low today point five two five that would be a principal $4,200 a year divided by twelve my payments are going to 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 I'm probably gonna have a kid maybe a second kid coming along it's nineteen hundred and sixty four square feet and I guarantee you this house will rent for I'm a writer number down Johnny and you write a number down Johnny you tell me what your number is alrighty I'm gonna say 1200 I wrote down 1200 Johnny oh damn we're in bed 1200 I wrote down 1200 okay so let's go ahead and go with the $1,200 $1,200 less than 350 okay that makes 850 times 12 850 times 12 should be what like I don't know ten thousand three hundred dollars let's find out 850 times twelve $10,200 I'm sorry I was off by a whole hundred dollars ten thousand two hundred dollars okay how much did I put down in the house three grand I earned three times my money in one year okay that is a three hundred percent three hundred and fifty percent return that is thirty I'm sorry that is thirty percent a month geez guys got a 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 alone easier to manage easier to tell the bank I can do this okay you're going to tell them that you're gonna live in it you're going to make you're going to change your mind before the deal closes you're gonna 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 callers all over the place calling in okay if you're loving this folks post your comments below if you're listening on Sirius radio call them up and say dude where did y'all get this car down god he's crazy this got 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 me 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 users not going to 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 properties you wouldn't let you beat people up you'd defend your own property gonna find a better wing got to find a better way man the old ways not working folks it's failing the school systems fail it's politics is failing this okay the banks are freaking ripping you off you guys are pissed off at politicians you should be pissed off into banks they don't pay you anything I just showed you how to take three grand $3,500 $3,000 make $10,000 on it now watch what's gonna 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 gonna 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 we take that 10 grand that you made the first year put a few trees in front of the place look at the place place these some trees so you've 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 treats getting the 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 tenant in once I get a tenant in it to win it I risk it for the biscuit then I'm gonna go to a real estate investor I'm gonna put this up on a place called loop net I'm gonna post this on loop net 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 and I'm gonna say look I got a tenant in here $1,200 a month for the next three years I have money down they've been written 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 $1,200 a month 1,200 12 is it's gonna produce $14,400 whether the income you're gonna spend about four thousand three hundred and twenty dollars a year collecting the rents it makes ten thousand bucks a year and if you dr. chiropractor investor wanted to wanted to divide that by divide that by 0.09 percent let's see ten thousand divided by 0.09 and let's talk to a caller Johnny no ready okay imma sell this thing for a hundred and eleven thousand one hundred eleven dollars we're not pay for Johnny three grand I paid three thousand dollars I owe the bank how much eighty five eighty thousand okay I owe the bank eighty thousand so I'm gonna make thirty one thousand one hundred eleven dollars I'm a paying the real estate agent eighteen hundred bucks to sell it so I'm gonna make thirty thousand dollars thirty thousand what I invest in it three genes oh no are you got my three grand back oh it's free I'm gonna make thirty I not now if you dumb the way I was dumb cuz I didn't know any better because I wasn't edge imitated I sold it you shouldn't actually sell this deal okay what you ought to do is go back to the bank replenish refinance it or even do a lease option with the dentists 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 ten times okay next what two Saturdays from right now Jim what June 20th June twentieth 20 20 20 June 20 20 20 I'm gonna do a free education class you can register Grant Cardone dot-com or I I'm doing it because we had 70 thousand 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 started with thirty five hundred dollars I have one point eight billion dollars whether real estate today 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 to some callers I don't know if you want to do that 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 oh great I got a question for you with hey we're in Virginia are you man I'm in Manassas Virginia Manassas okay go ahead what's your question my question is when the owning a when you first purchased an apartment building you know how you always be keeping it for ten years right yeah and how do you know 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 offer for asking the best question of the day yeah look see your plan should be your plan should be to create wealth okay so if I can buy an $80,000 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 $30,000 maybe you can't do all this this year but look do anybody can come up with three grand especially we seen that on TV right now man if you can think about it like if your life depended on it you can come up with the one I've come up with three grand I can get ten people let me take three grand each if you were sick you can get three grand right you rob a CVS this weekend pick up three grand I mean it's a popular thing to do probably no chance are you getting arrested this weekend it's 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 ringing for Leslie let's say I find something in Manassas that's written for 1200 today times ten by the way that's 12,000 a month you guys with me $12,000 a month okay your expenses on this project it's gonna run about 30 a 30% so about 3600 of this this is a monthly figure now we're buying in the right part of the cycle cuz 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 n oh I Fida paid cash my Noi on this would be eighty four hundred okay but I didn't pay cash I put money down so I have debt to service this is gonna 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 okay I don't understand this I bought seventy seven thousand dollars ten times I can do this with the bank's by the way with almost no money down ten times okay I have seven hundred and seventy thousand dollars for the debt why do I want debt because that's how you build assets times 0.05 25 okay so I'm paying 40 grand 40 grand a month let me see 1200 1200 times ten okay is 120 thousand dollars a month 36,000 and I got eighty four thousand dollars for the NOI let me see eighty seventy seventy seven thousand times 0.05 twenty five seventy seven thousand 25 to 5 I'm answering your question by the way I know it's seems like I'm not but I am I'm paying forty-one thousand dollars approximately in debt I'm making forty three thousand dollars a free cash flow free net net net folks a month what did I invest no money Delta's you get your money back three grand per unit thirty thousand I make that back in one month okay in one year you're gonna make forty three thousand I'm gonna tell you guys a little secret you know I saw this stuff five hundred sixteen thousand dollars of cash flow a year dang when you go 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 $40,000 by the way I'm paying down almost two percent of the debt a year seven seventy I'm paying down 1.5 milk no that can't be right I'm paying one hundred fifty seven thousand dollars a year down on the debt so remember I did this ten times I took eighty thousand that's why I want you to start small but scale I'm gonna get so much hate on this video on the internet yeah we got a bunch of people saying do you know I thought you said start you know God Tina more grant cardone but what am i doing dude I'm doing it ten times so I'm buying 20 units right if it's a 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 10 times I can anything under five units okay it's can't be five in under it's got to be under five units I can but I can basically buy as though I'm living in it I can do that ten times so yeah I did say that in the book and I said that in the book because of where we were at in the cycle and the cycle we were on the way up I bought about I don't know two thousand units last year I didn't buy one at a time about eight hundred and sixty million dollars for the real estate last year I'm gonna 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 fifth one hundred 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 ten years I will have made a million five hundred thousand dollars in what's called debt reduction in a addition to what I say I was earning a month 40 grand yes sir man that's a lot of money man forty three thousand dollars times ten years no no forty five forty three thousand times twelve times that's five five hundred thirty-eight thousand a year that's five point three 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 and Atlanta he's got a deal what's up what's going on John what's up man I just want to say sue I bought the real estate class over the weekend oh thank you man thank you that's 120 that's $12,000 a month Matt okay what's up brother how you doing today man good man I got a deal for you okay yes sir yes sir all right 3:33 streets down in st. Petersburg Florida okay union of property already done hold a property but in a good location okay hold on one second all right hold on one second I want to clean one thing up 8640 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 make it $3,600 a month okay $3,600 a month I'm making ya $3,600 a month on a three thousand dollar investment folks I make my money back every month it's less okay times 10 multiplied times 10 then we rock it okay give me the address 333 fifth street saw 333 fifth Street south Vicki Nina property 16 years st. Petersburg man no see oh man this is sexy got my attention 333 see that's the thing about real estate - can't fake real estate you can fake a watch you can fake a Richard I'm sure they got some Richard me lays dead of 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 rate net cash flow 171 172 B what you thought of the deal okay so give me give me the NOI again Noi is 171 170 171 thousand 170 and what cap rate five point seven based upon the value that there's no yeah and and how do you like I'll tell you what they're asking for right now and and and what what what's the location like it's right by Tropicana Field it's a couple blocks away from you know some shopping areas downtown walk walk abilities off a bike great location yeah what do they want 2.9 million for it yeah I called him last week he said you said 2.8 is what you got for it but you didn't have the address 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 what happened in the last 60 days is every that he has for that asset how many units are there 16 off-duty oh 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 their rent range from depending on the property it's like a grant at 1350 yeah dude I love this deal I got to tell you I love this deal now you tonight oh my God look at this Johnny can you show this yeah my god oh my god okay I got the screen mm-hmm that's nice I'd live there Patrick Calhoun is that who you're dealing with yeah yeah oh yeah there's the price right there yeah I by the way I did I figured the price out without seeing a price look at my price 2.97 look at this price okay that's their asking price right so yeah a couple things I'd want to know here one you you said the look you liked the location right yeah okay can I see the water you can't see the water from the apartment though you know smaller building but if you walk away yeah can I smell it pretty sure pretty sure during low tide you can smell it yeah okay Johnny's a fisherman okay all right so look this is what we're gonna do on this deal you know that he bought this he bought this he bought you down 18 yeah he bought it and fixed it okay this would happen 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 hundred percent around it hundred percent wow that's that's good 100% means he's probably not charging enough so if he's a hundred how much money do you have to put down in this deal uh a couple investors we want to how much 20% me and a couple under about 20% of yeah you're gonna need a million dollars to buy this deal okay that's why again like start small might be a help it 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 you can buy this deal okay you got 200k you're gonna go you're gonna find some investors the way and we talked about this in my real estate program if you got 200k to putting the deal you're going to 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 gonna 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 gonna pay you guys the first 10 percent so you're gonna have four guys give you that you're gonna pay them ten percent 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 gonna do the work you're the sweat you got the first two hundred you're gonna give friends and family an opportunity to earn ten percent ten percent divided by 0.01 to is eight hundred and thirty three times what the bank is gonna pay them so you're not gonna paint you're gonna pay them ten percent that's eight hundred and thirty three times what the bank's gonna pay them you could find there's millions of people millions of people in America okay that with a hundred with a cup a couple hundred grand millions and millions of people hang with me stay right there I'm gonna show you how you can profit from the real estate busts that happen and the real estate boom to come hey grant cardone here we have all new content at Cardone you calm or free for you we're going through this crazy crisis right now and I thought I'd come to our studio I just spent a shooting content on how to get a job in under 72 hours not just a job but your dream job also you'll find the information in there how to man team remotely we have a hundred and five employees that were 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 have in card on you and making it fresh and new for this pain is happening right now SBA loves how to access them PPP money how to get it we already have how to get the stimulus money that's come in all this content brand new end card on you also 72 hours how to get your dream job not just a job maybe even improve the situation you have right now also all my great stuff selling closing road to the sale fundamentals of selling cold calling outbound calls inbound calls selling on e-commerce how to start a business from home hey how about this five hours five hours on how to start over and turn a crisis into your expansion promise you're gonna love it you're gonna be seeing using the whiteboard that's not lit up right now you're gonna see all brand new content over 2,000 videos from me mostly me and some of my celebrity friends including all the power players that I've been interviewing all the webinars I've done in the past everything will we've shown people how to start a 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 and guarantee I'll get you job in 72 hours if your business is down it's free until I guarantee we'll get your business up and run it and going again and I guarantee you we're gonna get through this and you're gonna be bigger and you're gonna be better and you're gonna be more n'stuff they 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 grow scaling today I'm talking to you about real estate how you can start creating assets invested 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 Johnny I was telling you some break here's a guy wrote a 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 systems 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 assistant deliver millions a education a 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 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 Daymond John's in Steve Harvey's in one other person Snoop Dogg yes Meek Mill Z these are big guys these big guys I love hearing you John yeah me too you know snooze like you you you you two financial guru man he you know grant grant this true story snoops like we could change things for 500 years 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 duman's we're an asset and a liability they don't know doom 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 we 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 1 million inner-city kids you got it you got to either be black brown of color um in a low-risk area in a high-risk area yeah high-risk areas or without a father okay so you could be a white kid obviously a white kids got problems whoever if you're a kid with problems you don't have direction you're bored educational systems failing you 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 your own 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 card ow okay come on man give me some love share the stream I'm gonna show you now I'm gonna show you John and switch to my computer here's the deal that I found in Zillow Lake Worth Texas or Lake Worth Florida that's what I was thinking about horse country's $59,000 Kiki okay Johnny write down what you think this would rent for damn right now I think probably like 1500 bucks I wrote 1350 okay it's fifty nine thousand dollars Lake Worth decent neighborhood fifty nine thousand dollars how long has it been on the market Johnny can you tell what it says down a little bit I'll be able to see he's not controlling this so it's been on the market look 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 so for 200 fool kid some fool gonna boil cross his wanker find out he didn't know nothing Bank got a little head of himself fell out over his skis so this is a $200,000 asset that you could buy today 459 K this is with the bank right now the bank had this on the market by the way 212 six eleven nineteen five thirteen nineteen if they wanted eighty-nine thousand four in nineteen 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 fifty nine thousand 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 right in that place right 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 that make it disappear somebody just wants to pay it pay that they don't need it to go away well 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 seventeen percent next year forty-one percent why am i showing you that 2008 2009 2010 what was going on in America big bust bust oh where are we in right now look up up up and patanè another bust oh the wuhan got us some opportunity for the rapers we finally something imported from China helping me II okay look the payment on this deal is gonna be on sixty grands gonna be eighteen thousand bucks eighteen hundred let me see let me just do the math x point Oh sixty thousand times 0.05 to five for those of you who've seen me using another number six one five and six to five I'm using 0.05 to five right now because rates are down makes it even better time thirty one hundred and fifty dollars Johnny woods 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 month two hundred and sixty two dollars and fifty cents per month they might add a little insurance on there to make sure you don't walk away that's called the PMI okay they might charge you another thirty to sixty bucks a month big deal you got insurance on top of that yes yes you do but you're gonna rent the place the place is gonna rent for 1350 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 paid a landscaping they pay to paint it they pay to fix it they pay to break it okay Lester what bang-bang 262 how much is that like 1100 a month net net 1100 a month well times 12 how much is that Johnny that'd be eleven thousand plus twenty two hundred thirteen thousand two hundred dollars what did you put down three grand it's nothing like two hundred bucks a month after you made 4x on your money in year one and year one you would have made four times on your money four hundred 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 gonna be worth $150,000 I'm gonna go back to the bank it's called a reef I don't do it now do it next year next year give yourself 18 months do a refi on the place show that you've got a good strong tenant in the place okay go back to it let's see let's get it refined for $150,000 it'll get there the bank's gonna give you let's say they give you $75,000 for a loan what did you pay for it 59 okay 59 thousand walk away with $16,000 okay Plus what plus the money you made every month 13 grand plus the 13 thousand okay refinance it keep the property keep the property and keep renting it now you have a hundred and fifty thousand dollar asset you've already made 13,000 plus you took sixteen thousand out you've made twenty nine thousand 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 maybe 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 to go to work to go to work do when you invest you want your money to keep going into the Hyperloop do it 10 times you got 10 loops do it a hundred times how about seven thousand seven hundred and twenty times UK let's talk to our callers Grant Cardone here you're in the cardones 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 what is it how you doing thanks for calling thank God I was on the I was on the webinar over the weekend I bought the about the real estate congratulation is about it 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 there were interest only deals yes I've done I've done two four families here in st. Louis both times we did interest-only both and we held for about ten 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 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 four units and below okay first 10 assets that you purchased there are four units in below you could probably do three to five percent down if you're military you could 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 going to you're going to start being putting twenty to thirty percent down when you get into the thirty five to fifty percent down payments okay you will be able to go to life insurance companies and Fannie Mae and Freddie Mac commercial lenders and request an interest-only loan 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 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 a big money down loan like that principal and interest is not required principal part of its not required because I'm pre paying the interest so heavy upfront and the reason you got clobbered clobbered was you over leveraged that deal you in a profit unit probably lost it even if it was just pni you even if it wasn't interest only well we found was if we if we tried to do principal and interest that the deal would not support the rents would not support the deal so it obviously was too much love yeah exactly so if you'd had done the P and I the 2% threw you off right so if your interest payment was let's say 10,000 a month and then the extra whatever two or three or four or 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 would need to start small is that 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 where the debt I need a hundred and twenty-five thousand dollars where they are twelve thousand five hundred dollars worth of income Noi to support that so you don't want to 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 gonna be at thirty five to fifty percent as a down payment to do that deal I think twenty 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 a it was probably more than I think it was $27,000 done actually so on this deal this 67,000 Ryan's hit me right now you put $27,000 down on 67 27 divided by 67 forty percent down yeah so we did 60 percent leverage on the deal hope that helps John pre-stretch calling in I know you're going to enjoy the course okay grant cardone com4 /re yeah folks if you want to join see what John talked about yesterday okay he spent three hours with me Saturday 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 my first deal was one unit 20 days later about a second unit I rented the first one lived in a sec won my third deal was an apartment deal that apartment deal maybe five million dollars okay I put three hundred fifty 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 raise most of it I made five million dollars in 47 months I took that money at 10:31 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 fifteen million dollar asset okay first deal I ever bought was three one point nine million dollars I took the money from this deal about a fifteen 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 oh gods a good speaker and he's the God 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 do 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 down to college right now or kids brick but you know blowing out of high school they're like this too long it's taking me too long to get out Johnny I'm stop talk somebody nickel is because there's no way out dude all you guys are doing is getting minimum wage job man the the politicians let's give them some minimum wage for minimum wage dude that that is nothing nothing anybody's concern today it's not minimum wage I need wealth building vehicles I don't want just a job I want a wealth building vehicles I want freedom for my kids all right you got Nick and Canada Nick what's up man hey granny there yeah I'm here man what's happening yeah it's me is that you is that you yeah it's when I got a deal for you if you're ready how can i watch your show Johnny yeah go ahead man you can watch it on youtube at 27 Fifth Avenue North 727 727 what Fifth Avenue North 5th Fifth Avenue North you a New York man you buying something in New York I mean no I mean that dude yeah it's not New York it's in you know Fifth Avenue what where in Canada Mac what where in Canada is it doctor Oh Saskatoon why didn't you say that the first time you just keep saying as many times I asked you okay let's see man Saskatoon I've been to Saskatoon like five four or five times with that I got an STD and that's that's Katoon actually no you did sure it is the Silver Streak he sure did sure did I'm telling you right now he's kidding around kidding kidding you guys go for anything man but I did 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 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 bond yeah there's one guy all right yeah yeah good dude man yeah what's his last name Jubilee motors what was the guy that owned okay he gave me a ride to my car though I got it okay so look this is an off-market deal it's unit 3 is that right oh no with the main teen unit it's a Nissen unit it's 7:27 5th Avenue North okay I put it in the wrong address maybe okay is there a way I can shoot it here I don't know what you're capable of man 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 unit two five nine five two point five two point six million active okay hey Anna why is 147 331 all right so why do you like this deal because in Saskatoon I think out of the area's it's probably one of the better areas downtown yeah the river so it's a mixer for guys who want the biggest idiot yeah yeah what how much is the rent how much in the rents so the rent bar there's some 1025 875 995 45 Wow so I'm gonna take I'm gonna take 8 I'm going to take an 875 round 875 by the way this Canadian money right yeah yeah exactly I mean this thing's cheap folks okay $144,000 times 70 percent in America this is basically you know two million dollar two million dollars for a hundred for eighteen units okay on the surface I like this deal 18 units $147,000 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 few owns one is 25% like you always recommend yeah that would be yeah 50 down the other one they might be with a 15% and insure loan with 50 percent 15 15 percent yeah in G I just said I just sent you the link Christian over here found the property so you can take a look okay okay and then 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 Kerr solicitor extremely well maintained City Park eighteen unit fully occupied for three consecutive years you see what he's doing there they're doing when 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 ten month leases you can't you can't find eighteen people that will give you a commitment 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 don't they take your time yeah ten years ago traded ok good so I'd like to know where the guys at from ten years ago because I do want him to make some money on the deal a hundred and forty seven times no I'm sorry eighteen times eight fifty times twelve times seventy one hundred twenty eight thousand dollars a year what 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 I'd like to be at 147 divided by 0.072 five I don't think you can get there but man I'd love to be at two million dollars on this deal okay I would like to point three yeah I'd like to be a two million dollars go ahead and put six hundred grand down and you're gonna this thing's gonna scream okay one point four million dollars one point four million in debt times times 0.05 to five equals seventy three thousand and one forty seven seventy three thousand you're going to make $70,000 a year 70 grand a year divided by 300 no by eight hundred no by would I say one point four by six hundred seventy man I love this deal now about about 600 so 12 percent return on my money look some of these deals I showed you earlier these twos and fours even those one units I showed you those are 300 extra 300 percent 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 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 rip for a thousand dollars a month and I multiply that times to ten times twelve or how about like this times twelve times and do it ten times okay it's four thousand dollars times 12 is 48 thousand dollars 48 thousand times 12 or 10 its $480,000 180 thousand jeez that's more than your job pays you right now gross income okay I operate that for about 30 percent of the 480 480 times point 70 okay 336 that's going to be my noi on the deal okay why that why is that number important cuz I'm gonna find a bank or a buyer that says hey I'll be happy to have like a 7% return on that 336,000 I can show you how to do all this folks and guess what I got I got four million eight hundred thousand dollars where the assets by doing this assets hey Brando there yeah I'm still here sure okay you know like to hire the cactus you said they're Indiana Lee related like one goes that so my question the higher the cap rate when the deal free bill will 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 there's your value right so so if I'm gonna pay got 10% 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 gonna do is I'm gonna go on a property spit on it walk on it I'm gonna bless the place and I'm gonna take what you what you paid maybe 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 six cap right here that could be an eight cap too much 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 ninety-eight ninety-seven point eight percent collected ladies and gentlemen nobody's telling you that CNBC collected collective we collected the money on 98% which is not a lot different than it wasn't 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 in the hid 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 good 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 the 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 6-4 cap I could buy something that was a four cap values up here in hell the four cap I'm in Miami I could find a deal and say I'm gonna pay you a 6 cap now I didn't change the value just change the price I paid all I gotta 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 the 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 that 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 gonna 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 asset you should graph your assets most people their assets no matter how much they work does 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 deal first of all was nothing right here then I went bought a two hundred thousand dollar deal about a seventy 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 this at that point it was the value of the assets themselves and they continued 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 you look at Warren Buffett's a 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 about 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 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 Amazon stock or you don't want to buy ten thousand dollars whether 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 learn about this one right here go learn about 3333 fifth street 16 units in st. 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 could put little things on and say it's good water it's great water it's Aquafina water it's freaking Villa villa water it's the purest water it's the caca got water okay but the truth is man you can't fake this this is what this is you can fake a Lambo you can fake a jet you can fake a jet they got people faking jets now man they got a little they got places inside dressing places in retail stores now where they got the cockpit I've seen it your changing station see if you can show that Johnny you you can fake a jet now you can't fake a jet and put your name on it you can Photoshop a jet that jet I got I can't fake that you cannot fake fifty thousand 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 Seco man he's getting hair removed he could fake the fact that he hairy chest 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 there you go that that's not a cockpit that's a dressing room yeah BC in the background you see that guy over there I say that directly naked yet I've been saying you can't fake a jet but you can you can't fake a jet actually you can fake a cockpit I think you can even fake the [ __ ] he meant rooster okay look man I really love you guys you know III 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 first time you see me we had somebody watching real estate course the other day three and a half hours he watched me talking teaching people about real estate what did he tell who do you tell that to this morning Alan Alan what did he tell you is Alan in there yeah Alan telling the story Alan with the guy at the guy this morning they told you hey I bought the pro I watch you boy you this weekend even though I don't like him whatever he does yeah yeah he's like your boy grant you know I don't like the guys like personality-wise but man that guy's does know real estate yeah I mean he's a builder he's a he's a big builder in LA you can't fake new 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 where the 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 see like even the net worth thing you you can fake net worth what does the internet say I'm work today about 300 million so stupid let's see who these people saying this Grant Cardone from Fame to riches who is this you got forbes saying it you got but you can face yen that's my point here here's celebrity Network let's see what celebrity network says three hundred million dollars okay that ain't even the best picture you 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 buzz Edison what's a cult in Naples this is public record man Grant Cardone Carlin caught on Capitol 294 unit apartment complex in Naples Florida real estate investment for Cardona capital is pleased to announce the acquisition of timox living at the other sin place located in Naples Florida built on 2019 consisting of 294 units this multi-family acquisition will bring the cardones portfolio to a total of 25 properties seven thousand seven hundred twenty two units and 1.7 billion dollars of a U and M leaders there's Frank current advertising on me you always got to do that stop seeing his head why because I already I'm not interested in that end 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 goddang out it's in 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 there's matter what matters what matters is what matters is your W and the way to get to W is to get to 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 do it well okay 85 million dollars Johnny uh I mean Ronnie Ronnie mister 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 I put down on that deal thirty million dollars okay how much confidence did I have in that deal to buy thirty one hundred okay thirty million dollars okay I think that that property is gonna pay me one point eight million dollars a year I don't know maybe 1.5 million to own it that's me I'm gonna get paid 1.5 million on my thirty million for the first couple of years and then the Ritz are going to go up when the Ritz go up remember the cycles remember the cyclists okay rent rent if you look at rent cycles that's one thing okay cash cycles it's another thing business cycle is another thing employment cycle is another thing there's cycles to population cycles there's all these cycles whether it just happens to be an increase of cycles of people moving into Florida right now how many people move Florida MA one thousand of 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 of 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 no no protesting going on in Naples okay so what you got people in Naples don't even know what Amazon is they never been on the internet they probably own some an Amazon yeah exactly so so it's gonna pay me 1.5 million in the next ten years it will pay me fifteen 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 fifteen hundred if by the end of this the rents are five hundred dollars higher than they are right now five hundred divided about thirty six months that's thirteen dollars and eighty cents a month if the rents go up thirteen dollars and eighty cents per month for the next how many years did I say ten let's say the rents go up five hundred bucks a month how many units they're on two hundred ninety four years it's okay let me 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 ten years that's why that line that line helps you it saves you the line is time okay it's 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 five hundred bucks times how many units times twelve yeah if you guys want to join this and have a full training it's grant cardone comm ford slash or e that would increase my cash flow one million seven hundred and sixty four thousand dollars per year now what what does this number have to do with this number in the first year my cash flow was one point five million by the tenth year my cash flow would still be one point five million plus the rent increase okay the rent increase is greater than the first year's total right when I take the rents from 1500 to 2000 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 the inflation inflation didn'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 DME that okay inflation cost 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 and value you're paying me to inflate my assets and if you have inflation you want what you want to ask that's okay I would literally make more money off of inflation here than I will then 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 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 you've got a question post below if you hadn'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 this 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 I hope this channel I watch it all the time to see for comments so I hope that if you love me you'll let me know if you hate me please let me know you
