The Magic of Real Estate - Real Estate Investing Made Simple With Grant Cardone

[Music] [Music] [Music] [Music] [Music] mr. card on this is Vince del Monte one of your sales guys just called me and asked if I'd got any results since your three-day sales bootcamp ahead you better believe it it's over $200,000 in 30 days without that bootcamp we wouldn't had a good system in place and thanks to Brad thanks to that bootcamp we went from 200 thousand to six hundred thousand and since that boot camp man my income went for about six thousand now to eleven thousand five hundred almost 12,000 and this is just study man I would recommend for anybody that is interested increasing their sales increasing their profit they've got to get to the next boot camp [Applause] [Music] [Music] hey welcome to the cardones zone every Monday I come to you to talk about real estate real estate investing today I'm talking to you about how to create magic in your real estate yes I said the word magic the M word has been dropped every Monday I come to you talking about apartments investing in apartments buying apartments buying real estate flipping homes if you want to play that game what's too small what's too big how to get it financed how to exit how to make money in real estate I've done I don't know over the last thirty years about over a billion dollars where the real estate so I know a little something about it and I want to share my information freely with you so that you can get in the game and avoid some of the mistakes that I've make it made I've made many mistakes many many mistakes and one of the mistakes I made was I didn't understand the magic and the refi when I got involved in the deal okay so let me explain to you what I mean by the refund if you want to call it in three oh five eight six five eight six six eight three oh five eight six five eight six six eight haul in I'll look at your deal or I'll answer your question or both okay I'm gonna show you what's called the reef I bought a deal once it was 3.2 million dollars it was in San Diego California called Claremont LLC I think we called it Claremont forget the name of it now it was Clara my Cherie would probably know what the name of it was but I owned this deal for 12 years I refinanced it four times now I know a lot of you if you've been listening to Dave Ramsey you you don't want to refinance stuff you've been told to pay your stuff off that's not what you want to do in multifamily okay this was a 66 unit deal Claremont San Diego California okay on the highway I painted it yellow the brightest yellow you could possibly print paint a building it look like a little motel it had one swimming pool and I took the top band of it and I made it maroon okay when I got my first loan on the deal at 3.2 million dollars the bank said please do not pay yellow with the maroon I said no dude I did this on another deal in Mesa and I made a bunch of money there and then I dropped a bunch of palm trees and I think I dropped down a note about $100,000 above the palm trees painted the joint and it was an unbelievable performer for me when I bought the deal I put $500,000 down to buy the deal i financed 2.7 million dollars and I waited three years later i refinanced the property when I refinance the property because the NOI had improved the bank said the property was now worth six million dollars sorry six million dollars they gave me a loan for 4.5 million dollars how much did I want it you remember what out 2.7 I got 1 million eight hundred thousand dollars back on refi okay now this is something that very few people ever tell you about I know the flippers the guys that are doing flippers don't tell you about it the guys that are doing homes don't tell you about it the guys that are doing duplexes and for plexes don't tell you about it the reason I tell you guys stay at 32 units this was 66 I got a check back from a company called Wells Fargo that's a bank legitimate bank even though they've been known to create account unnecessarily or in their case necessarily okay they gave me a check for a property owned I did not sell this this is selling a property getting the money without turning control over to another person there is nothing better in all of real estate than this this is this is the biggest loophole in the tax code I'm sharing with you right now the single biggest loophole Blackstone knows that all the Wall Street guys know it is the biggest loophole in the entire tax code I own this property remember I I was a fine 2.7 million dollars were financed on this deal okay what did I say I put down that 400 grand or something five hundred thousand dollars I put five hundred grand down when I bought the deal put five hundred grand down I financed two point seven million dollars the bank said your new deal because years after us I bought it had improved the income your deal is now worth six million dollars the bank wants to lend you money that's how they make money they lent me 4.5 million dollars okay what did I do I paid down the 2.7 I paid off the 2.7 owed that's the number out that was my old loan and that left me I deduct this right 6 million that's the value 4.5 was the new loan the new loan let me just show this to you over here because you're probably going to have to go back and watch this because this is magic okay and then I got then I paid back the old loan that's how I paid back the old loan why because they had 4.5 million dollars but in escrow when I went to the escrow company they're like hey you got to pay back this old loan everybody tracking me right now and I end up with 1 million eight hundred thousand dollars in my pocket and I still own that deal now let me tell you the magic of the magic that would make David Copperfield and that dumbass that we went and saw Chris what what a dumbass okay what a terrible show I don't know if Copperfield show is any worse but it couldn't be okay this one point eight million dollars guess what the tax bill was on me getting a check by the way remember this I put five hundred grand down to own the thing and I got a check back for three times that plus three hundred grand guess what the tax bill was I walked away with 1.8 million dollars in cash paid myself back my 502 got 1.3 million dollars in cash money and my tax bill that year was zero on that money that's magic folks if you don't learn this game that's why you guys out there doing flippers single-family homes two units four units that gave this game this magic game the refi game which is the explosion of real estate where I can actually sell something check this out sell it keep it and pay no taxes my name is grant cardone my name is grant cardone and I'm sharing with you by the way I talked about that in my new book how to create wealth that's true wealth right does sell it keep it and pay no taxes I shared this in my new book if you want to grab a copy go to Cardone Capital dot-com for its last book and get it for free just pay take care of the ships the shipping and the handling even though we don't use ships over here Marco Santorelli of Narada real estate is the foremost expert in getting your money to work for you at Narada most people do not have the time to invest or do the work it takes to grow their wealth Marco and his team will handle it working in 16 markets nationwide Marco and his team will help set up a strategy to take you through step by step how to invest your money the right way and get you earning 8% returns from day one if you need financing we have it handy the inspection for your property if you need titles done we have it handle this is a one-stop shop to get you involved in the real estate game nerado real estate Marco Sanchez really will ensure that you have what you need to start investing the right way to learn more visit narada realestate.com that's narada realestate.com dynamics is an independent wealth creation firm we have products and services that help you make money keep money and multiply money you cannot build wealth without doing all three of these things we save our clients 25% on debt insurance taxes and investment fees increase income by 30 percent guaranteed tax free liquid savings cash flow banking and secure 8 to 10 percent fixed annual returns and their investments without Wall Street on average we can do this in the first 90 days of working with you simply schedule a free consultation with wealth coach our services often cost you nothing more than what you're already spending go to wealth dynamics dot-com for / contact to schedule your free consultation when it comes to next generation telecommunications and setting up your business there is no better company than bullfrog from setting up mobile office telecommunication technology to integrating with CRMs and call tracking pull fraud communications as every service you need to handle maintain and your communication line with your customers upgrade your business phone right now let us help you grow your business with smart easy flexible and efficient technology that gets your company on the road to better communication and next generation business phone systems to learn more get a free quote at bullfrog net that's bullfrog dotnet there's only one company to work for in the smart home industry skyline security right now is looking for the best of the Grant Cardone following to join their team and expand financially and professionally go to join skyline dot-com to register labeled by Inc 5000 as the fastest growing company for the last two years in a row you get to protect families grow your wealth and join a team of top producers skyline is looking for great people go to join skyline comm that's join skyline comm to get started on a brand new 10x career path that go to join skyline dot-com to register hey welcome back to car downzone where I'm talking about real estate every Monday every Monday I come to you and share with you the details of this book exactly precisely how I got started in real estate at the age of 33 years old and how I went from buying one single family home to I think I got I don't know some stupid ridiculous number 5,000 apartments just under 5,000 apartments another cute that another thousand units will go down here in the next 60 days that we're buying will cross the 1 billion dollar mark before the end of the year of real estate owned okay so of everybody that you want you guys watch on a real estate okay I promise you I am in a better position have more experience in this particular space then I'm sharing with you I don't flip homes I'm not talking about buying a house and fixing it I don't do the deed Sydnee tour you're my buddy you know what's his name boy yeah Sidney man Sidney on the deed the deed dude man good dude man good dude I don't do this deal okay I don't do Ryan singer what's his name I'm a boy Ryan's name does it does he does the New York he does this show on TV flipping homes or something come on come on Natalie help me out by the way Natalie's in the house you want to grab any of our promotion that we're doing for our boot camp this weekend get Natalie up I'll give you a number she's got magic - one two three seven no no five one five 3772 okay if you want anything from Natalie deals special deals payment deals whatever natalie is she's the the president of Cardone bank and she is the president she makes the loan decision so anything you need you got bad credit no credit you don't pay people back I mean you got bankruptcies that but you still want to be part of the 10x thing you want to come to my bootcamp or you want to come to Miami and come to our 10x whatever you want man you talk to Natalie she is the og and she can dance she give you my money quick okay all right so we're talking about real estate today and I'm talking to you about something that no one in the space talks about and it's called the magic of the reef I okay I have done this if you have questions about it just call me I have done this on deals big I known deals very small so I gave you the 66 you in a deal I'm gonna give you one more deal that I did it on this this deal this deal was fifty eight million dollars when I bought it fifty eight million dollars when I share with you we put fifteen million dollars down when we bought it you're like oh my god that's a lot of money you know what I always tell you in this show I always tell you if you can't figure it out with them about six zeros you shouldn't be doing a little deal if you can't figure out a fifth if you can't figure a fifty eight million dollar deal out you should not do a fifty eight thousand dollar deal if adding three zeros to your deal complicates your situation you don't understand you're buying the wrong kind of real estate we put fifteen million dollars down you're like oh five fifteen million I could do that too no you couldn't you have no idea how much fear there is writing a check for fifteen million dollars I worked my ass off my whole life to save that money put that money away store that money protect that money and then one day I had to give it over to somebody so I could get this now it made sense to me would you trade fifteen million dollars for fifty eight million bucks see to me it's a no-brainer like when you look at it like that see you guys are so so busy spinning on doughnuts and cars and and and Oreo cookies and and and vacations and and and renting a boat for the weekend that you never get the 15 million what I did was I didn't do any that stuff I didn't do the traveling I'm not going to Greece I don't have the pictures I don't have the memories I sacrificed stored the dough I talked about this in a millionare booklet store the dough so you can buy the dough's fifty eight million dollar asset I bought was 15 million bucks I thought it was a steal I was still scared to death I finally asked 43 million dollars okay the debt on this forty three million dollars had to be funded by the properties because I don't want to pay every month I want to be paid I need my 15 million dollars to make me money right okay so the first part of this is I need cash flow from the 15 right I got four I got I got 58 58 I put fifteen down I want my 15 to learn money the 15 is an entity took a lot of energy it took a lot of hard work and look took a life you got it you got to respect the 15 that's why I don't make investments that I don't get paid back for every month see what you guys do jungle bison Bitcoin or you buy some you buy some frickin snapchat stock or some Twitter stock or some Google stock you donate up money on all this but you shouldn't have done it because you weren't paid every month I need my money to earn money every month that's the only way you get a second flow of income it takes it removes my risk I'm sitting there earning money every month and the more money you earn every month the better shot you have of refinancing this 43 million dollars later on as the income grew every month from the cash flow I went back to the bank recently I'm gonna blow your mind right now I'm talking magic we're talking super wealth now okay this is the magic that they're super wealthy understand that the rest of the world is never privy to and I'm giving it to you today that piece of property that I paid 58 million dollars for we improved the operations on the property to the point to where we went back to the bank and the bank said we would like to lend you 115 million dollars back on that property Oh 45 million actually the number is because I'm going to take out 1 1 we added a building I added a sixth building to it that we bought around the property the total loan proceeds after five years of ownership does our first refile in the deal actually it's our second one just because it when I could I'll correct myself when I tell you the wrong information we took a little small supplemental loan on this deal supplemental loan that's an additional loan I had 15 million dollars in this deal is that right I think it was 43 we owed 43 we have 15 million down three years into the deal we took seven million dollars of our money out of the deal now today we only have eight million dollars in we went back to the bank and said hey we want to refinance our property and I do that they said send us your operating statement we did and they came back and said yeah we'll give you 105 million dollars this is magic baby check this out we're gonna give you 105 million dollars grant you owe 51 remember out 58 no I owed 43 I added eight million so I think Oh 51 million dollars here right now there's going to be a two million dollar penalty for paying the loan off early two million dude I got to give those people two million cuz I took a 10-year loan that I'm paying off early and they're like hey I want the money dude okay so let's see you a 105 less 50 100 50 one plus the penalty 53 I get a check for fifty two million dollars guess what the Axios gonna be know me nothing one check 51 million dollars and the tax bill would be zero okay now now check it out do I still own the property this is called sell it keep it and pay no taxes you want to know how to do this folks get the book hold on get the book how to create wealth okay he's in real estate only game the only game that allows you to do this today without going to Wall Street and become a hedge fund guy the only game available in the world today is buying apartments improving the operations to the apartments buying great locations buying big properties and then going back to the bank and refinance and I'm not over refinancing I know I got six collars on when we come back I'm gonna ask answer your questions this is the magic of the refi if you want to grab the book I'll send it to you for free just handle the shipping and it's coming to you do you want to never have to worry about money again are you willing to put in the work to make your dreams come true with my hands-on training you can achieve real results selling high ticket products online I will show you how you can generate millions per year online learn how to build a 30 million dollar business without wasting money on advertising or having to compete for traffic you can start converting today to get started go to EECOM explosion calm that's EECOM explosion calm right now Jacksonville Florida this family-owned husband-and-wife team of relatives is there to serve you track every process step by step gets you from contract into your new home or out of your current home sold and on the market Chad and Sandy Neumann will take you Mark your home and make sure that you will receive the best customer service ever they're gonna sell your property above market value in 30 days or less with over 12 years of experience this team is there for you to learn more go to Chad and Sandi comm that's Chad and Sandi calm right now you're protecting your past J defrosted company P LLC is a public accounting firm offers a variety of assurance and tax services to businesses and individuals in the Chattanooga and surrounding areas we focus on construction and manufacturing industries our primary objective is client satisfaction through excellent customer service work with the best we are accredited by the BBB this is JD frost and company for a full suite of taxes surance and management accounting services visit us right now at Frost CPAs comm hey it's Ted McGrath with message to millions do you want to create a presentation online that actually gets clients so I got something for you here twenty six point framework if you want to do videos that sell webinars that sell I've tested this for the last six years in my business I sold millions of dollars worth of product or service online click that link grab the gift tell me what you think about it and I will see you soon inside the gift hey welcome back to the car down zone every Monday 12 p.m. I talk real estate today I'm talking about the magic of the Reaper how to sell something keep it I'm not actually selling it I'm refinancing it with the with the bank I'm actually getting the bank to give me money I've done this numerous times if you have a question on it call me three or five eight six five eight six six eight Natalie's got him on the phone you guys are grabbing books at record levels we're almost through the entire ten thousand that I printed so I think we got a couple more boxes left if we want to grab yours grab it at Cardone capital dot-com for slash buck bo okay if you can't read one at least know how to write book and by the way if you want to be an investor with me a Cardone capital just register for the information if you're accredited there's a registration non-accredited those of you are not qualified as accredited I'm gonna be able to offer you a partnership position in my real estate going forward so you can take advantage of some of this magic what's going on Adam are you good buddy how you doing doing fine thank you thanks thanks for coming I have a question on one of the comments you made on one of her parish shows about Cardone capitals and you were marketing those services you mentioned that if a business has funds available let's say at the end of the year let's say I have a business and I have $300,000 of free cash flow at the end of the year yeah now want to invest your capital card on capital you mentioned that that's a tax write-off how no no tax write-off in love it yeah now you might have misunderstood me you can't you can't so like this is income right and it passed through to you so now you can you move this money into an investment that doesn't that doesn't that is that doesn't count as a non-taxable event the income the income from the 300 once it's invested is taxed on income on distributions that we pay every month Cardone capital wheat unlike other resource indicators we pay checks to our investors every month that we have cash flow every month we have cash flow we write a check to our investors if for some reason the property didn't cash flow we would not be able to write a check we wouldn't do that but so with all investments there are some risk but this money by the way is taxed at I think 21% lowest tax rate of any distribution available today that happened as a result of the Trump in the new Trump tax law this 300 grand however okay if I refinance this and return your 300,000 there would be no tax bill on but the money's got to be taxed the money's got to be taxed as income and then you invest after-tax dollars in your investment so short so I would have to move those 300k out to like a separate LLC to invest with you right no no not necessarily you know I mean you could do that but you don't have to do that I already have the LLC the LLC basically your money if you're right here or it's me let's say it's GC what's his name again Adam Adam so Adam you got money going into deal 300 grand and I got 30 million deal thirty million dollars going into the deal that's kind of what it looks like by the way I'm buying the deal right this money both money's go into an LLC we won an LLC created you don't need to create the LLC that just cost you money I already created the LLC why don't we want an LLC I want to protect this from the public coming back and Sue Ann Adam or grant for anything you see the LLC you can claim stuff about the limited liability corporation okay by the way the bank the bank where I took the loan out for 60 million that's about what this would be thirty million three hundred thousand will buy sixty million dollars rather debt a ninety million dollar deal trust me there will be a lawsuit somebody gonna sue me about something I busted my ankle wow I was smoking crack bite guy wasn't paying the kitchen but I'm suing you for it no you're suing the LLC dog go at it okay that's called a crank rock ankle block okay so studio LLC because I don't want him soon you Adam Anna by the way Adam for all of you out there that are looking at doing your own deals if Adam owned this LLC they'll probably sue Adam and the LLC with me they won't even know Adam exist with Cardone capital they'd like to find out who all the investors are woman that would never happen they won't even know about grant over here they're gonna know about the LLC they'll probably find out about Cardone capital grant cardone so let's do him too but they're gonna have to do a lot of work yeah go ahead the 300k that I put in a million don't just keep your energy for example would I actually get any depreciation Venice absolutely you get all the same everything that I get is a property owner you're a property owner you're not a shareholder you own a percentage of that property that of the LLC that owns the property you own the property or property owner you get the depreciation you get all the tax write-offs because I want those tax write-offs and again this is how we're different than other syndicators and REITs you are in this thing a partner with me okay you're partnering with me if it's just me and you remember Adam I bought this deal with my money you came along later Adam came along and then Gary my brother came along my sister came along and and then we allowed we started allowing other people to come along okay this is Adam this is Gary this is Diane this is Elena Elena is an investor in my deal the deal Adam gets is exactly the same as my brother my sister and my wife there is no difference so you're gonna get a tax you're gonna get a tax we're gonna file I think it's a k1 ask Sheree what it is I think it's a k1 at the end of the year not a 1099 because you're a property owner if you were if you if you if you worked at the property you're gonna get a time net 1099 that's income if you're a property owner you're gonna get a k1 which allows you probably in the first two or three years you're gonna get a district yeah k ones you're gonna get a distribution of say let's say if you put a million dollars in okay you'll probably get a distribution on a million dollars watch this of sixty to a hundred thousand bucks a year some of these go lower because they're nicer properties the nice of the property the lower the cash return but your depreciation your depreciation on this deal is probably going to be I'm not going to tell you what it is because I don't know exactly it's going to be more than the distributions so your tax bill is going to be zero okay so that's where the advantage it okay I was missing yeah yeah that's where your tax bill goes to zero okay now I'm gonna give you one other example and I know we got a lot of callers on state stay tuned guys you guys are on comm and take all your calls today okay here's Ryan Seco Rhine Seco sold 18 bernisa had a $500,000 profit okay rather than him trying to 1031 into my new deal I had a deal for him in Nashville 1031 means he could move the property sell the properties and move into this and not pay any taxes on the 500 it was too complicated it was too complicated to do it because when I exit out of this deal it was gonna create a problem down the line said Ryan don't do it pay your taxes okay he paid a 20% tax bill it's the lowest tax rate in the world dude 20 percent is nothing you you pay him 30 and 35 and 40 percent on your income right now okay he paid a hundred thousand dollar bill he's like oh my god I can't believe my tax gonna be on every it's the lowest there's there is available dude don't you can't complain about all taxes he ended up with four hundred grand I said look just put a clean 400 into Nashville you guys worry about the wrong things he's like man what's Nashville gonna do are you gonna make three or four times and your money okay I'm refinancing or selling not sure which one we're gonna do right now we're probably gonna sell Nashville I paid fifty would not pay for that deal I think I paid sixty three million for Nashville I'm selling it for 91 million dollars Ryan's only been in the deal two years okay Ryan's gonna walk away with 1 million dollars his 400 his 500 grand he paid 100 to get 400 to get a million while he got paid okay well he went from owning 18 units but part of 800 units do you want the exposure to the bigger that's what we do a card on capital will buy massive properties 31 acres 400 units at a time great locations and we're gonna keep him 3 years 5 years 7 years 10 years try to refinance I'm gonna try to sell him let's talk to the next caller these callers are getting better and better every week huh okay what's going on man hey Greg how are you today brother I'm good I'm good I'm real good X I'm glad it's Monday so I have a simple question for you I have saved up in money market I have $20,000 saved up and just putting that away and I have an opportunity to invest in a companies funeral home I'll be 15% owner and it's going to run me 15,000 down 2500 till that's paid off or would I use that to keep stat just keep stacking that so that I can go ahead and invest in a multi-family home down the road I mean yeah I mean I don't know I can't I don't know how look you know there's there's no better investment than a good business the real estate that I buy is a business it's a business it's a piece of land with a business on top of it okay so Funeral Homes people are gonna keep dying probably gonna be a lot of them die here in the next 30 years yes you know one of the biggest and people believe in burying their bodies for some reason dumb dumb ass reason oh let's do a whole process we gotta we're gonna spend $10,000 we can't afford on a box to protect the body that's just the bodies mr. body I mean it's the dumbest thing in the world if you ask me like my mom and my dad both my and my older brother sitting in a box their bodies are sitting in boxes they they aren't hopefully they're not still in the damn box I'm with you I'm with you I know how people feel I but but people believe their bodies so they're like oh god we gotta we got to put mama in a good box my gym what your mama don't care about the box now there's something really nice for you should have done that while she was living but but dude so that that being said that being said he didn't buy our car but he's gonna buy our box so that being said that being said I mean it's gonna be a great business for a lot of people cuz cuz there's a lot of people just believe in the whole you know one bought one life thing anyway go uh you know you just need to know who you're doing business with bro you know I trust him a hundred percent I've been working with them for quite a while yeah and I know a lot of people that trust a lot of people that end up in a is that they end up hating each other so oh yes yeah because just cuz you can trust an honest person doesn't mean an honest person wins it business it just means they're honest okay and what I want when I do business with somebody honesty is not the first thing I'm looking for I'm looking for production I'm looking can you win and you make that business work okay now do I want somebody that's honest yeah I don't want dishonest people but I'm not looking for honesty first first thing I'm looking for is do can you freaking blow up my investment and and that's why I love real estate so much because I can take 20 grand I mean look we're gonna open a fund up where you can put 20 grand even though you're non-accredited you're gonna be able to invest with Cardone capital and get like invest in deals where the investment is the property okay you can't that this piece of property behind me there's not a story here that I need to pitch nobody needs to die to think that that property's not going to be worth more money ten years in 15 years and 20 years from now we do need to change the chlorine in the pool from time to time okay so I do need to run a business I do need to treat people right let's talk to our next caller I was a great question Rob in the calc did you guys in Canada y'all coming into my apartments hard right now every day I get a call from a big group in Canada would you sell that portfolio every week we get that phone call from Canadian Toronto Vancouver Calgary saying our prices down here are cheap compared to yours what's up man Brett how are you come on man I'm doing great I'm so excited to finally get through to you I'm glad to talk to you sorry I had you on house along don't worry we'll talk that's awesome I have got a question here for you and a deal I was wondering if you could have a look out for me okay I've got family down in Tucson Arizona okay so like I said I'm calling from Calgary but I've got family down there it's an 88 unit apartment block they need some rentals they're asking three-and-a-half million dollars for it it's got an Noi of 305,000 305 speed 88 you got it we don't get it yet okay it's got a stated chop of seven point seven four percent what what do you think of it okay three hundred five thousand do you have an address yep it's the Planetree village 82 sorry so the first thing I think doing is three point nine million dollars first thing I think of is if you show me a seven seven point seven four cap I'm getting already getting a little like okay it's a see property see location I already know what this is right now I'm gonna take another look at something here the three point nine million dollars I'm sorry though yeah that's how much it's gonna be is that what they're asking three point five okay sorry so I was a little hot three point five divided by by the way I guess this price without it without so I was in the neighborhood three point five million three five three five divided by how many units 8888 yeah it's what 113,000 adores that one is low it's like forty thousand adore yeah $40,000 $40,000 The Doors garbage dude I mean we permit its garbage like the big question you got to ask yourself it's gonna be a great cash flow it's gonna probably make you twelve or fourteen percent how you gonna exit the deal though who wants this thing ten years from now right it's Tucson bro I own 2200 units in Tucson I went into Tucson Arizona on a Monday Friday I came out with two thousand two hundred and twelve units owner for three years picked up 25 million bucks there and got out of Tennessee I'll never go back to Tucson so stay out of it I'm just saying man like like if you're gonna cut if you're gonna put money how much money are you gonna put in that deal I was hoping to put a couple hundred thousand into it you should look at what we're buying that we can exit on you have to figure out your exit rate okay you just think it would be something to renovate to the holder yeah well hold till win you guys think it on the holder stuff forever it's gonna be one day that property's gonna be 60 years old it's - sorry bro ain't nobody going to Tucson people people from Mexico don't even stay in Tucson people sneak over stay a couple nights and two suns they're I'm going to Phoenix I'm going to Salt Lake City I'm going to Vegas I ain't staying in Tucson man only people are staying - son of the creme crimps I just kidding man I made some good money but you got to figure out how to get out of there if you're gonna buy in Tucson you got to figure out how to get out of Tucson so that's all I'm saying to you all you guys need to know you cap rate you need to know your price you need to know you're dead who's gonna operate the deal but how you gonna get out I talked about the exit in my book you should know your exit on the way out you should know who the buyer is gonna need the buyer tight it's gonna be in the price you can sell that when I went into Tucson I knew what I would sell the 22 building 2200 units for I knew who my buyer was gonna be by the way let me add one other thing to the story the guy I sold my 2200 units to lost them all he bought them for me so don't think that everybody makes money in real estate you can get your brains blown out in a deal you pay too much wrong location at the wrong time you can get trapped okay so I would just say to you hey before you pull the trigger down in Tucson okay I would love for you to look at what we're doing with Cardone Capital we got a lot of Canadians looking at our funds right now as a way to own really really beautiful pieces of real estate in great locations in the US Orlando Houston Texas Miami those aren't going away whose son not on any like you take the top hundred 100 cities in America whose sons not on that next Paul in Colombia man what's it like down there ah grant uncle G what's going on come on my man come on my nephew what's happening it is beautiful you got a deal hey you got a deal or you got you got a you've got a UH quest Tony I got a question grants especially I got some advice I'm trying to do the trade three greenhouses into one red hotel here's my situation I'm a defense contractor I work in Iraq and Afghanistan thank you sir make over 200 grand a year and right now my portfolio consists of a duplex that I own crane clear I have a house that I own free and clear and I have a four-plex that I use my be a loan on that's all filled and rented so basically long story short with management and fees my cash flow right now is $2,400 so what I'm trying to do is is pay off my four clicks which will be paid off this year and I should have maybe maybe a net worth of we'll say for one okay but why do why do you want to pay your four-plex off well well the reason I want to pay the four-plex off which is why I'm calling is because what do I need to do for my debt to income ratio to be trading up right so like these four flexes in these duplexes I feel that I can offload a lot of these properties to local investors that have little or one kaze yeah that are good with you know I mean if you have for instance my duplex you know I'm into it for 90 K and it's worth 120 and any cash flows right now 1,300 okay good let's take the duplex so I'm just gonna show you a trick on the duplex right so let's just take the duplex we know we don't want to be in that long-term you're already talking about it now it's a 120 grand is that what you said it's worth or be around there yeah yeah you owe 90,000 you said something about trying to pay this off I know why do you want to pay anything off the reason I want to pay it all off is because I'm assuming I can take then the a line of credit out of the properties and use that as a down payment for a bigger property to get my one read hotel well but but yeah what why do you want to be in a hotel business no I meant I meant as in a bigger bigger property okay or green house is one red hotel okay so let's just take the duplex this is what I would do with the duplex okay I would like you know one thing you could do is just sell the duplex right now pick up 30 and trade it into a deal that what you owe 90 did you say you owe Danny no I own it free and clear oh okay so yeah this is what I would do this is what I would do with the duplex I would go borrow I would go refi the duplex okay you'll get 90 on it let's say you only get 80 on it you get 80 on it watch this and then I would sell it I pay no taxes on this okay and then I'd go sell the property cuz you don't want that anyway I don't want that to I don't want two units folks you don't want to do picks then as you get them you're like man I'm out of toothpicks I know I don't even want to use my toothpicks because if I use one I'm down to one if I use the last one now I'm out you understand I don't want to go in a two-day vacation why would anybody go in a two-day vacation because as soon as you get there you're like I'm leaving you got two units man there's no numbers here this doesn't work the most important number in real estate is this number how many units do you have then I would take it back this is no tax situation you take that 80 grand and then I would sell the property and pick up your other 40,000 and that's you're gonna have to 1031 this on this you're gonna have time on the 80,000 you would have time on this you're gonna have to go 1031 exchanges and go buy a deal worth 120 grand so watch what I have I traded 120 I end up with a 120 better deal maybe more units and then edible with 80,000 in cash I take the 80,000 in cash and go buy another deal times four probably a three hundred twenty thousand thousand dollar deal bar put them together add 120 to that and you end up with a half a million dollar deal with the same money get your cash refi so your deal get your dough 1031 both the cash and the mo Nate magic it's magic is magic you know dude this real estate man real estate is magic best tax code in the world the Porsche real estate that's why that's why all the way back to the JP Morgan's and the Rockefeller all these guys were invested in real estate okay all of them guarantee you the Zuckerberg and the Warren Buffett they're buying real estate thereby they're investing in the in either companies that control coca-cola controls a lot of real estate don't kid yourself you know what they did they don't know shopping what shopping they rent space at the supermarket that is real estate ladies and gentlemen that provides cash flow for coca-cola or file for shells that's real estate you understand uh uh JP Morgan somebody said the railroad guy who was a real quick I think Morgan was one of the railroad original railroad guys right he owned the land underneath the rails he had to put something on the land for the land to be a value valuable the the wasn't JP Morgan JP Morgan was the oil guy what did he own he own real estate that gushed the gush samuri oh okay that land was worth nothing unless it had income it had an income from the all the rail rail rate real railroad boys had income from the rails to pay for the land Bargo Wells Fargo yeah what he had he had the Telegraph business right but they rode the horses okay let's go Mike and Wisconsin what's up not lunch yeah everything man you got a deal got a question I have a question so I I'm 19 I had a son when I was 17 and me me and his mother recently split and so basically my question is I have I have two jobs and I'm working all the time and I'm trying to start my business so what should I do - like what steps do you think I should do to keep like build up my savings and get enough money to where I can like move on to my parents house and yeah do what you sure move out of your parents house this weekend I mean like now you got the kid you got the kid or she's got the kid she has the kid most of the time I have him yeah you need to move out of your parents house is like as fast as you possibly can okay because your parents you see what happens is people people are like oh I'm gonna pay my debt off or I'm gonna move i'ma live with my parents you you act like they're you you think that they're doing something for you that they're not paying off your debt does not improve somebody's financial situation just does right the only thing that improves anybody's financial situation is income so oh I'm gonna pay my debt off and then I'm gonna have freedom now somehow no you're not dude freedom doesn't come because you don't have debt so freedom comes because you have capability and competence and confidence mm-hmm and and and people like Oh attitude is everything no attitude is nothing compared to confidence I want confidence and I want confidence when I go into a situation and I know I can get the deal done so that's what I would work on right now did move out of your parents house get confidence in yourself the ability to show up early stay late and make a difference in your environment do you start having confidence in yourself not an attitude not a positive attitude not a state change this isn't some kind of psychological I'm gonna talk myself into something I'm a looking at mirror and convinced dude so you have personal confidence personal confidence comes from winning you know the dude the dude for France that they shot the two goals this weekend nice years old dude you know guys walk he's strutting around like he's strutting around the planet right now like he's a like because he won he won winnings important so that's what I would do bro get out of the house because that's not winning for you that's losing sure and I know the marriage thing you know you knew that wasn't gonna work out when you you you know when you hit it that that night two years ago or whenever it was two years and nine months you knew that thing while you're gonna work you had no big deal move on take care of the kid and get your money right spend the right time with that kid so that kid doesn't have a bad taste in his mouth yeah and and and go rebuild the rest of your career bro you you're way ahead of where I was when I was 19 years old that's all I can tell you now thank you for calling in Cardone zone every Monday spoke if you want more than just one hour of real estate you want to read the book you like to read grab how to create wealth in real estate this is a book about exactly what deals you should be looking at what you should not be looking at it's explained to you in this book exactly the first deal that you should do the exact exact criteria so that you don't make a mistake and buy the wrong deal there's a lot of people out there buying the wrong deals I mean the biggest mistake is people don't buying any deals second biggest mistake is you're buying the wrong deals okay and most of those deals are just too small so I'll show you exactly what you should be looking at exactly how you should buy your deal exactly what I've done that worked over and over again I've done over 45 deals seven states almost a billion dollars for the Real Estate's we hold right now cash flows every month almost more cash flow from that one business than I do the other six businesses combined though huh yes so the website if you want the book is Cardone capital Kampf or slash book Cardone capital calm for slash book we're almost out of this first what's it called the first edition once we run out of those I'll be selling the book all I ask you to do when you get one take a picture of yourself with the book and write a review take a picture of yourself tag me throw it on somewhere tag me at Grant Cardone and then and then do a review in the book that's all I ask you to do otherwise you paid the shipping handling I'll take care of the book I'll buy the book for you and send it out to you right away thanks for watching tomorrow power players Wednesdays Jeannie Thursday's young hustlers in Friday we talk a business and the economy and money oh by the way I'll see a bunch of you about 500 of you here in town think we got five or six tickets left I'll see a bunch of you in town Thursday night Friday Saturday and Sunday for our business boot camp and dude if you didn't hear we're about to announce the location and the date of the biggest entrepreneurial conference ever held in the world if you want me to buy your seat go to 10x growth con-com 4/10 X and X growth con dot-com 4/10 X and I'll take care of your seat I'll buy the seat you take care of the transaction fee okay I think it's 5% of the total of what the ticket would be you take care of the transaction fee that's for us to process it for us to give you a scene assignment there's one other little thing with the place that we're renting the handling fee with with the arena that we're we're we're renting and booking you handle that I'll handle the seat 10x growth con-com 4/10 X I think there's maybe a hundred of those left millions people follow me so we'll probably go through those 100 in the next hour grab that get yours can't wait to see you there and that's only until I announced the location once that net announced everybody understand once I announce the low announced the location and the destination and the date it's all over Thanks watch mr. carton this is Vince del Monte one of your sales guys just called me and asked if I'd got any results since your three-day sales bootcamp I said you better believe it it's over two hundred thousand dollars in 30 days without that bootcamp we wouldn't had a good system in place and thanks to brand thanks to that bootcamp we went from two hundred thousand to six hundred thousand it seems that boot camp man my income went for about six thousand now to eleven thousand five hundred almost twelve thousand and this is just starting man I would recommend for any that is interested increasing their sales increasing their profit they've got to get to the next boot camp [Music] you

Channel: Grant Cardone

Views: 34,302

Keywords: grantcardone, grant cardone, refi, refinance, mortage refinace, real estate refi, real estate, real estate investment, mortage, banking, real estate banking, How to get a loan, Net Operating Income, how refinancing works, The Magic of Real Estate, real estate holdings, how to repurpose taxes, real estate mentor, how to buy real estate, real estate gurus, all about real estate, Investing in apartments, what deals are too big or too small, real estate made simple grant cardone

Id: x_pokBUKPnI

Length: 57min 39sec (3459 seconds)

Published: Mon Jul 16 2018