The Passive Income Calculation: Cardone Zone LIVE! 12PM EST

uh the cardone zone grant cardone here every monday jared gctv did it get purchased call me back and every month every monday i got a lot of stuff going on in my life but every monday i make the time for you at 12 p.m eastern standard time if you haven't subscribed do that now folks appreciate your comments appreciate you showing up every week also there's going to be a link below for all the notes called the show notes i'll give you that link below if you want to click the show notes uh we'll have that also we have all our shows now archived at grantcardonetv.com grantcardonetv.com where we'll also share our notes our transcripts information calculators calculations speaking of calculations today i'm going to share with you how to calculate passive income uh when i was 34 35 years old a gentleman told me and i'd been working for 10 years at that time i'd got my life in order starting to get my gig on and i was working man i was working i was starting to earn money i was starting to earn a lot of money and this gentleman said to me he's like okay now you know how to earn money i gained his respect he took the time to spend a moment with me and said now that you've learned to earn income grant and you've also learned to be disciplined with it and not waste it now you have to learn how to get money to earn money and i'm like okay okay you got my attention bro what does that even mean though i didn't know what it meant because i had my head down and i was working every day i was just busting my ass like most of you out there probably like you are every day working hard trying to get better at your game getting better at your skills improving uh your brand maybe if you're online doing online marketing or you're out doing sales you're trying to get better your game and you are you're earning more you're doing more but you're noticing the tax man takes more and and uh you you if you're not working you're not earning and when you're not earning you got a problem and that creates tremendous stress for most people okay because when earned income is your only game and you have no passive income you know intuitively objectively you know if i get sick boom i'm in trouble my family's in trouble okay if my business blows up i'm in trouble if i die my family's in trouble okay so i knew that also by the way when you don't have earned income it's one of the reasons why real estate people appear to be the least stressed business people that i've ever met in my entire life why because they have passive income so today i want to share with you how you can start calculating passive income in your life how much money should you be invested in order to have x passive income what is your target what should it be and uh first i want to start with just the definition of passive income in case you don't already know what it is there's nothing ever wrong with looking up uh definitions and clearing them up for yourself so that you have complete control of the space that you're working in passive income is inc earnings derived from a rental property a limited partnership or other enterprise in which a person is not actively involved you network marketers out there that think that you're earning passive income that's not true that is not passive income that you're earning i'm good friends with eric worre i've done a bunch of stuff with eric uh eric does a lot of work in the network marketing space and he's he's a big trainer coach there and i i hear so many people in network marketing say i have passive income if you're tweaking a team working the team uh banging on the team elena works with exp she has basically building teams out and earns passive income what would appear to be passive income because of the results of her team i said that's not passive income that's recurring recurring income recurring income by the way doesn't mean it can't be disrupted recurring income doesn't mean you didn't do it but passive income could also be recurring income so this is what the definition is if you're out there selling something okay you sell it one time and they buy a subscription you guys online that are doing coaching online and somebody buys 12 months or 24 months that's not passive income i i have 2 000 accounts here that pay me every single month every single month uh anywhere from fifteen hundred to three thousand dollars a month do the math on that that is not passive income that is earned income uh the fact that they signed up for 10 years and i sold them one time does not mean i don't have to service the account deliver the service etc you got it okay so look passive income is earnings derived from a rental property by definition limited partnership i got a partner down in orlando florida he does everything he uses my name provides the training delivers the training i do nothing he pays me every month and that is a limited partnership okay or other enterprise in which a person is not actively involved you cannot be actively involved for it to be passive income as with passive income i'm sorry as with active income or what we'll refer to today's earned income it is usually taxable usually but not always earned income is always taxable passive income is usually taxable but it is often treated differently by the ir and s okay now understanding passive income there's three main categories there's active income these are the three categories of income itself active income there's passive income and then there's portfolio income passive incomes include earnings from rental property limited partnerships the other business in which a person is not actively involved a silent investor okay i want to give you a really really important example i didn't know this see i thought when i was a call on the come up i thought i wanted to be the boss i thought the boss was the guy that made the money the boss is not the guy that makes the money this is the guy that makes the money for all of you out there you want to be the boss you your your your mind your mental is limited you do not want to be the boss you want to be the investor and you're like no man what you talking about man i want to be in control okay well good if you want to be in control you by definition will only get earned income earned income is the highest tax rate in the world if you earned it if you're the boss and you earned it and you did something coca-cola last year the guy that runs the ceo of coca-cola the boss the big daddy who by the way they could oust any time they wanted to he ain't the boss i'm the boss okay well the board says you're out and boom you're not the boss anymore you're demolished at the house okay 50 million dollars is what he earned last year okay 50 million dollars i think he lives in new york city he will pay he will he will end up with about 47 pennies out of every dollar he owns 50 million times .47 out of 50 million he'll end up 23 million dollars bang bang shabang lang okay now there's a guy over here that invested you you're going to know his name when i tell you his name he invested in coca-cola he's just a silent investor with a little bit of a little bit of freaking you know push uh he earned 508 million dollars off the dividends of coca-cola last year so change your mindset okay your goal should be to have passive income equal to earned income in the beginning and then we're going to get it to be greater than my real goal is to get my passive income greater than my earned income the ultimate goal is to have no income no earned income and have all passive income that'd be a cool game so today what i want to do is i want to share with you how to calculate i did this at 35 years old i didn't have my money right i mean i was disciplined i was working hard i was starting to earn money the government would take half of and i'm like man i got to switch this game up and this guy came to me and said now that you know how to make money and keep money remember the first goal keep make money earn money two keep the money three multiply money how do i multiply money so i want to share with you a passive income calculator um and i'm not saying you can get there this second but you got to start you got to start with the target in mind so the first thing you want to do with passive income is i want to come up with a target okay how much money would i need let's say let's say the average person in america earns 50 grand a year well that's going to be my target why would i pick a target smaller than that oh well i want to earn 500 bucks this year okay but why don't we just start with a target knowing that i'm gonna have to get 500 then a thousand then 2 000 to get to the real number but let's start with my real target and not just take what i'm given it is my belief that everything in life starts with the target the relationships you're in the kids the schools uh the trips you go on hey where do i want to go not what can i afford to do but where can where do i want to go so my passive income target my first target was fifty thousand dollars okay why equal to my earned income like if you're earning a hundred grand your first target ought to be 100 grand of passive income remember this first target passive income first target passive income equal to earned income so just take your earned income let's say it's 50 000. i'm like okay i want to earn 50 000 per year how much do i need to invest god if everybody just changed their mind about how they did money rather than going to school getting a job and and taking whatever they pay you could actually go to school and start saying okay i want to earn this much money a year where do i need to go to do that what do i need to do to earn that rather than what am i good at and i know some of you out there like oh man i got to do what i'm in love with you ain't going to love it if it don't pay you man if you got to go to work every day and you know you could be replaced disrupted technology to take over a robot could take over your job then and and you're just getting by you're earning 50 grand 50 grand comes in taxes go out and you you got to feed your family and there's nothing left you're not going to be passionate about that forever i don't care how much you love what your art is or your gifts are or your passion is okay you have to figure out how to get off this treadmill so if i take this 50 000 and i divide that number uh let's say just for for example here because i want this to coordinate with the note somebody's telling me hey average person in america makes about 58 grand so i'm gonna round it up to sixty thousand dollars that's five thousand dollars per month okay let's say that's my target just to keep me out of having to figure out what forty eight hundred dollars a month is if i divide this by a return of six percent okay if you just take and divide that if i take sixty thousand dollars this is how you figure out how much you need to invest and divide by six percent i think if i put that in my little machine here 60 000 divided by 0.06 oh yeah it equals one million dollars so i need to invest one million dollars to earn five thousand dollars a month and you're like man i ain't got a million dollars yeah but you could start thinking about how to get there you understand so in fact we're going to be doing this uh if you hit the link below i'm going to go deep with you for three hours on topic a topic like this what kind of asset class because this is what got me into real estate when i started doing this i'm like what's going to pay me six percent without me losing my million dollars see bitcoin doesn't pay a dividend at t pays an eight percent dividend so like if i wanted to do this with att stock and i want to earn 60 000 a year divided by .08 i only need 750 000. wow what if i could find something to pay me 12 take the 60 000 divide by 0.12 maybe maybe you can lend money out to people you're like i'm gonna lend money out to my neighborhood and they're going to pay me 12 might hard money loans i know guys that do hard money loans i only need to put 500 grand out on the streets so now my targets are coming in oh man i need 500 grand i need 750. i need a million dollars this is how much money i need so i can get off this treadmill this stress this stress machine that i'm on okay so uh the problem with a t oh google let's let's or apple stock okay let's say i wanna i wanna invest i think apple stock pays a half percent dividend i'm not talking about the appreciation here the appreciation is not passive income that's the score you understand the score is oh the stock went from 140 to 500. bitcoin went from 50 bucks to 54 000. that's the score what's the dividend the passive income too many people in this country and around the world never earn passive income so they cross their fingers and they gamble on stocks cryptos the next big thing maybe even a business some of you gambling on businesses when you you might ought to just be investing in something that's a sure thing okay let me just look up apple stock right here our number by the way is 305-865-8668 305-865-8668 if you have a question about passive income today by the way at t stocks at 24 today i don't know if you could show this johnny on my computer okay because some of you heard about that let me cnbc att symbols t you're like oh my god man att is paying eight percent dividend yeah but look at the stock look at the value of the stock can you show this johnny okay look at this over the last six months look what this pig has done so if you had invested at 29 you would have lost today six bucks it's not a big deal is it okay unless you have like half a million of those yeah so if you put a half a million if you put a million that's why most people don't make big bets because you guys are worried about it going down so you diversify across a bunch of stocks i don't do that i refuse to do that i'm either going to go all in on something and wait for the score okay because this is the plan i'm working i'm trying to get rich for sure i'm not trying to get rich quick i'm trying to get rich guaranteed are there any guarantees yes there are and anybody that has given up on guarantees that's because you're out there gambling you're like oh there can't be any guarantees that's what wall street tells you they tell you that so that you keep putting stuff in their little buckets i'm telling you there are guarantees out there if you pick the right asset class okay in the right locations at the right time and you take care of that thing this is what jp morgan said put all your eggs in one basket and protect that effing basket jp morgan's one of the wealthiest people that ever walked on this planet uh steve jobs had two investments the google boys had one uh elon musk has three he runs all of them warren buffett has four major investments across everything in berkshire four of his plays represents 70 of all his holdings the rest is just a bunch of because he's so rich he's got a freaking you know he's got to dump stuff all over the place you ain't there yet neither am i so i would suggest you guys really get your head wrapped around this passive income thing let me see this dividend for apple stock today um somebody's already looked that up i'm sure let's see what does it say it says dividend yield 0.55 so i'm going to take 60 000 a year i want to earn earn passive income from apple i'm not talking about the upside divide that by .055 i need 10 million dollars of apple stock ten million nine hundred and nine thousand dollars so the calculation goes like this passive income divided by the return that you believe this asset class can achieve when i learned this i was 35 years old and i'm sitting around i'd already bought three pieces of real estate okay real estate was always real to me it was like like to me it was like okay it's real this other stuff like i gotta look it up in the newspaper i gotta i gotta go online to look it up real estate i don't look it up dude you go visit it i can google search it from a map right so when i started playing when i started figuring out okay i want 60 000 of income okay now now keep in mind i'm not thinking about because of the way i think i'm not i was 35 years old i wasn't thinking about when i was 36 i was thinking about 37 38 39 40 41 42 years old year one watch what happens i invest a million dollars where am i getting a million dollars from well once i got a target once i have a target and say hey man i could actually match my income when i got the idea that i could have passive income that i didn't have to work for that i was not active on that i could make an investment of a million i started figuring out i need to call in different clients i need to create different products i need to expand my business so i make more money so i have more money to invest okay watch year one sixty thousand if i could repeat that two three four and five if i could repeat that again in year two i'd have another sixty thousand that would be one twenty no rent increases i'm to do this without rent increases rent increases will determine whether or not this asset class goes up at value 180. okay this is starting to get interesting now man i'm earning now i'm earning 15 000 a month this money's taxed differently by the way remember that by definition okay 240 i'm still not figuring any rent increases all i'm figuring right now is six percent of the earned of the investment made i'm getting as passive income i haven't touched the principal i've had no appreciation i'm not talking about the tax deductions right now which they're massive here okay and then by year five i'm earning three hundred thousand dollars a year imagine if my income was only 60 000 well i could never make this investment that's not gonna work you understand so you're gonna have to figure out how to number one earn more income number two what am i gonna do with the money once i earn more income now that i'm excited about something like i can get off the treadmill here this might not make me happy but it will relieve my stress see this is what my dad never learned how to do my dad learned how to earn income he learned this part right here 60 grand he earned 60 grand then he learned how to earn 80 grand then he learned how to earn 100 grand he just never learned how to earn money when he was sleeping okay so here i am i'm earning 300 grand a year this is year 2020 what are we in right now 27 yeah but you know we're going to be there we're going to be there tomorrow we're going to be there we're going to be there tomorrow okay now i'm earning what what am i earning 25 000 a month my 5 million dollars if i could figure out how to get 5 million is protected in a piece of real estate that's probably worth 20 million because of leverage five million dollars of real estate five million dollars of cash for me buys 15 to 20 million dollars worth of real estate so my principal unlike att show the at t stock if i'd have put a million dollars in a t today and it went down from 20 million dollars at 30 bucks divided by 30 bucks equals i would have bought 33 000 shares of att and it's gone down seven dollars i lost 233 000 bucks but i earned eight percent of my money so i earned eight thousand dollars eighty thousand is that right yeah i i i earned eighty thousand look how powerful a dividend is i earned eighty thousand and i lost two thirty three but let's say i've been in that stock for eight years or five years five years same example here i've earned four hundred thousand dollars of passive income and my valuation at att went from 30 bucks 33 000 shares down to 23. at 33 000 shares the number of shares didn't go down my principal shares is still there i've lost 233 thousand dollars i earned passive income for five years of 240 oh no no no eighty thousand dollars a year a million dollars eighty thousand times four hundred thousand so the truth is my passive income actually has protected myself from this loss now if this keeps going down in value which my friend john lescher that that you guys know is the famous t-mobile ceo i i wrote him this morning i said john man when's att about he's like leave it alone it's garbage i kind of expected he was going to say that because he hates a t and he loves his magenta okay all right notice what i have here okay this plant this plan is because you guys aren't going to go buy a million dollars with a t you're not going to buy a million dollars with a bitcoin if you're on the come up you're just not going to go put you're crazy if you go put all that money in one one thing without getting passive income it's irresponsible to your family it's an irresponsible your fiduciary responsibility to take care of your brand your name your business and your family not to have passive income not earned passive income not to be gambling on appreciation so uh i know you cryptos out there you're like wait a minute man let's keep it real bro if you buy one million dollars of bitcoin divided by today what let's say let's say i bought it two weeks ago it's 67 000. about 14 bitcoins 14.9 bitcoins and now those 14.9 bitcoins today i know you're not going to sell it because nobody in the crypto world will ever sell anything ever in the history of the world today it's at 55 000 times 55 000. and you've lost 180 000 you're not a seller though so you hadn't lost anything now it's going to go to 150 000 by december 25th we all know that bitcoin's going to the moon so is dogecoin okay and ethereum's going ethereum's gonna be worth fifty thousand dollars i said four four thousand today and sheba is going to be a penny right whatever whatever it is like it could be all that could be true guys and if you're right you're going to get filthy rich you're going to get so freaking rich and guess what you're going to do man i need to get this money off the table dog okay oh i can't get it off the table because if i do want to pay earned income i'm going to get banged by the ir and the s okay my point today is this look earned income number one or even appreciated value let's say you have some big score you you invested some money and the money goes from a million dollars to 10 million dollars okay good but you need income you need income where you don't work okay i'm pleading with you figure out an asset class class that will pay you income when you don't work this this scenario right here remember we still have our principal 5 million we still have our 300 grand watch what could happen what if the rents double in the next five years in florida where we own a lot of our real estate is that even possible that rents would double they they're up almost 30 in the last 18 months if they go up another 30 percent in the next five years in this five year period of time the my income is not 300 grand anymore my income would go up from 300 grand a month a year to possibly 400 grand a year 500 grand a year and i'm not doing anything you understand what do i still have i have my passive income over here that can go on for years if i own this for 10 years i have real estate that i've owned for 10 years 300 000 times ten it's three million dollars i have five million dollars invested that's still protected it's not like 20 million dollars worth of property is going to 5 million you understand my 5 million buys because of leverage five million dollar investment in real estate buys 15 to 20 million dollars worth of real estate the real estate has to go all the way back to 5 million for us to take a loss okay point if i get to this place i don't have to work anymore if you don't have to work what are you going to do you're only going to work on the stuff you want to do and this is why people say man do something you love steve jobs said do something you love because it's going to be hard okay but look do something you love and invest in something that'll pay you to do something you love so i can do the stuff i love and not be paid at all by the way you can get right here and not be paid anymore you're like i don't want any money dude i don't want money okay don't pay me money elon musk makes zero no money he has no money if he wants money what he does he doesn't get dividends either he's like you know i just sell some stock okay or i'll borrow against the stock now if i could take this scenario out ten years and let's say you got five million dollars invested and this and you got 20 million worth of real estate real estate is the only asset class in the world that does what i'm sharing with you today and this five million dollars has earned me 300 grand a year 25 000 a month and let's take this out now to 2032 because it's going to be 2032 before you guys know it there's going to be a day where grant cardone's not doing a monday show anymore because he ain't around okay i'm i'm on the go go who knows i'm going to another place doing some other stuff man i'm in another universe well you don't need studios and wayne okay okay so check it out you're earning 300 grand a year this is in 2022. this income could be 600 000 a year easily in twenty thirty two fifty thousand dollars a month you and it's gonna need to be because of inflation you guys don't think inflation's coming if it ain't here now it's coming in 2032. you know it is but what's this real estate if inflation comes and now you're earning 600 grand passive income you don't need to work anymore you're earning 50 grand a month you can't spend 50 grand a month you could do it one month johnny how long would it take you to spend 50 grand johnny johnny wouldn't even know where to shop okay how many red cameras could you buy two he buys two red cameras do you need any more no no dude you can't even carry them around hey i got a red camera okay so no i got two of them okay now now you need somebody to help them carry them so watch what's happening this five million dollars that i invested that bought 20 million i'm sorry 20 million dollars worth of real estate in 10 years what do you think that 20 million dollars is worth my 5 million is not what's going up in value my 5 million is actually going down in value this is going down in value you understand if you'd have kept this 5 million and put in the bank and earn nothing that's what they're paying today nothing this 5 million is worth less you understand the reason i want this 5 million to buy this is because i know this asset class when picked in the right location the right size at the right time will be worth more money in the future what do you think johnny in the year 20 20 32 10 years from now well let me just tell you that by factual in the state of florida if i just took the last 10 years this piece of real estate will be worth at least 40 million dollars real estate in the state of florida multi-family apartments the kind we invest in at cardone capital have doubled every 10 years if this doubles in 10 years which it very well could okay why because people need to live someplace amazon's not going to replace this product type it's impossible you cannot replace this you can't do 3d graphics of an apartment building at la solas walk in fort lauderdale and and it's got 456 tenants it's 99 occupied they're in the building right now they need to live someplace and they want to go to the restaurants i mean i i guess if the state of florida no longer exists some people think it won't they've been saying that about california for 50 years if it still does exist though that piece of property probably will be worth more money than it is today and it could very well be a double so if this 5 million bought 20 million what is my 5 million now worth do you know how to do the math on that so if 5 million bought 20 million if i take the 20 million divide that by five 20 divided by the five that equals four okay so what's the five worth probably like 40 million it can't be worth 45 million man the 5 million the 5 million i put in what would it be worth if you didn't do anything with it if it was in huh [Music] well it's worth 10 it's worth 10 it's a double right it's going to be a double no notice what just happened here okay my real estate doubled 5 million bought 20 million okay that's a four multiplier 5 million bought 20 million worth of real estate so what's my 40 million worth now is it worth 10 million how do you figure that i don't know what portion that is let me see five let me see 20 million let's see if that's what he bought divided by five equals a four so if i take the 40 million and divide by four it's 10 million dollars i don't think that's exactly right i think i would i would actually get a premium for that but either way man either way i didn't do anything this by the way is not because i did something the point today is passive i got paid and i i'm not i'm getting paid to make the right decision i was paid six hundred thousand dollars if the in if the property doubled in value then you have to assume the rent's doubled in value and the 50 grand a month could be a hundred grand a month now okay we're going to take some costs passive income is earnings derived from rental property limited partnership or other enterprises in which a person is not actively involved tell you guys i'll let you guys on a little secret i started my first goal was to earn 50 000 a year actually my first goal was 10 grand a month but i'm embarrassed to tell you guys a 10 grand a year i'm embarrassed to tell you like my thinking was so small okay i was like i'm gonna take a hundred grand i'm gonna invest a hundred grand and and i'm gonna earn ten thousand dollars a year and i was like then i'm gonna retire i was 28 years old i was so stupid man my lin my thinking was so small it was just crazy this this month i'll be paid one million dollars in passive income people like man how you stay why are you going backwards why you like you you're you're looking younger i'm like passive income dude it makes you it takes stress out like i like i could screw everything up i still got that coming in every month that's from those 4 000 apartments that i own that represents 12 000 units that we manage okay where i have 4 000 of those where i'm the majority owner in those properties and we've owned those for seven or eight years and what happens is those rents start start going up over time some years they don't do anything i was predicting this year rents would not go up rents exploded in the year i said they wouldn't go up a year and a half ago if we go back and roll the videos from a year and a half ago i was like rents are probably going to flatten out because i'm so conservative they're going to flatten out but i still get my passive income rents exploded because of covid the whole world thought coven would shut rentals down it didn't shut churches down shut stadiums down and shut the airports down they're trying to do it again shut the government down and shut chipothe's down chabot okay you got you guys got the point right proponents of earned earning passive income tend to be boosters of work from home work from home and be your own boss is not passive income folks so many of you guys are confused about it i'm gonna work from home i'm gonna be the boss if you're working from home you're working from home that's earned income if you're trading time for money that is earned income when you're trading money for passive income dividends that is passive income the only way to get passive income is to invest money they get you passive income i heard gary vaynerchuk said there's no such thing as passive income bro there is passive income you take a million dollars invest it with me in any piece of real estate that i do and i send you a check we sent 32 million dollars this year to our investors every that's that's this year did the same thing last year i think it was 28 million last year 32 million dollars it will all be recorded as passive income on what's called a k1 in addition to the 32 million dollars on our k1 that we send out to our investors they also get depreciation that offset this and they'll probably be no income on it that means they pay no income on that 32 million so take your number that your desired target divide it by what you think you can achieve one percent four percent six percent eight percent 10 12 15. our average real estate apartment deal to date has done over 15 in the mid 20s i don't really want to tell anybody that because you guys aren't going to believe me we have the data to to document it um if it does 15 and i want to earn and johnny we'll take the first caller if i hit the 15 on my real estate divided by point 15 uh i need to invest 400 grand i need to get to 400 grand so when people start investing with me they start with a thousand bucks 10 000 bucks 20 000 but you need to know that your goal needs to get to these targets so that you can earn enough passive income uh that you can start to like okay i can breathe a little bit man because if i can't work or the technology disrupts me or the economy falls i still get my income go ahead what's the person's name lawrence what's up lawrence hey hey uncle g how you doing uncle g good sorry i had you on hold so long uh no problem man hey i got to know you through the undercover billionaire i loved it it was awesome anyway started following you since i watched that about last year hey i got a question so am i allowed to ask a real estate question yeah go ahead man all right so i got right now i have four rental properties i just refined two of those properties and you know say i didn't take any money out of those properties but i i was able to save myself an extra six or seven hundred dollars a month just by refining under a lower interest rate i got i have another property that i bought about seven or eight years ago i bought it for about 650 000 um it has two parts to it but i i think it would actually um value right now at about 1.4 million so i have definitely equity built into it yeah what do you mean what do you owe on it what do i want it i don't know about 500 000 but about 500 000. okay all right and so 500 000 yeah what kind of income does it provide you it it doesn't it it doesn't provide a lot of income it probably does fifteen thousand dollars a year oh yeah so i ran it all year it's a summer that that's actually a uh what do you call it a uh that's actually a property for vacation property so people i've landed primarily during the summer yeah you know during weekly rentals and i make pretty much it covers the whole night plus a little extra okay so this is the way this is the way have you asked your question or no i didn't ask the question so the question is if i take so i refined my primary home and and i got i took 165 000 out of that i have about 200 in the bank and i'm thinking i might be able to get about 500 out of this property um which gives me about 860 000 to invest yeah now here's my question i could i could look at my own i could look at more real estate properties that i've done well with in my area but i'm looking at you know cardone capital and so i was wondering gosh what's what's the advantage that i have at cardone capital and when i was talking to one of your guys on the phone i asked hey can i do a 10 10 31 exchange when you guys sell the property and i don't i think he said i wouldn't be able to do that so immediately i thought well that wouldn't be a that wouldn't be too much an advantage for me yeah well actually it would be let me just say this because because that is that a second home for you uh it's primary it's it's really a rental property yeah but but but it could be a second home it could be but because i receive income on it the bank doesn't look at it as a second home they look at it as a rental property yeah but i'm not worried about the bank i'm talking about the irs how the how how the irs is going to look at it but but i would tell you this number one i would i would i would definitely look at selling that one house it's not making you any money i mean i know you're saying it's making you 15 grand but you have you have basically i'm just talking about the one house right now that house if it brings 1.4 million you have 900 900 000 times .05 let's say five percent dude you should be earning 45 000 a year from that money over the next five years that will pay you 225 000 in cash yeah and you're right now you're only earning fifteen thousand dollars to to have that rental property if insurance rates go up roof blows off paint problems uh somebody goes moves in and you have a litigation problem you can't get them out of the property that 15 grand can get wiped away very very easily you agree with that correct so what i would do with that money i would definitely invest in the deal that i'm doing right now because i know what that deal can do this is johnny i don't know if you can show that the picture um okay let's say would you pay for that property 650. 650. you paid 650 000. okay but you've spent some money on it you've had property taxes how long have you owned it about seven years okay so in what city or what states it in to new jersey okay so you pay property taxes repairs maintenance for seven years you paid principal and interest on it for for seven years uh you've had to manage it for seven years so i'm gonna assume that you had some expenses in the operation of that okay one point four yeah when i when i say when i say made money i actually that's my net that i made okay after i peed all my expenses okay you're probably going to have some other expenses when you report this to the irs though right if you know what i mean yeah i mean you should find some i think when you start doing your accounting you're going to discover some expenses that that maybe you have you haven't been diligent enough on too fine because you didn't have a reason to find them but let's say let's say you know i i also have a couple other businesses to my accountant kind of figures it all out he knows how to do that he knows how to do that like you just want to stay you want to you want to push you want to push to everything that's legal most of you guys don't even push most people when i sit down and coach somebody on their finances most of the people i'm like bro you're not even you're not even in the game the irs game like you're not even playing by the code at least play by the rules what do you mean grant i'm like you're not pushing anything and if you guys think your accountant's going to do that for you you're wrong you you have to sit down and look at this and see the time and the energy and the number of times you went to that property and all the little stuff that you did that you did not count okay that being said let's say that you may uh would you pay for it again 650 000. okay so one let's say you sell it for 1.4 they're 6.50 um that means you're going to make 700 grand let's say you're going to make 650 thousand six is that right six uh says 750 okay let's say you paid uh 20 let's say you pay 150 000 in taxes you got 600 000 plus profit free of the tax man plus you have uh so what's that going to be what's that leave you with 600 grand um you paid your taxes uh so you're gonna end up with uh 750 is that right yeah about 750 000 750 000 times you're gonna have a net 750 7.50 and this goes back when i do a 1031 exchange i wouldn't be paying tax on it right no you wouldn't you wouldn't but but if you do that you're going to have 900 000 you're going to have 900 000 buy you a 2.8 million dollar piece of real estate right that you got to go manage and that's earned income right what you're earning right now is earned income that is not passive income so so i don't know how your account has been reporting right now he's probably he's probably claiming that you have passive income and that's not passive income that's earned income and it should be reported as earned income because you're collecting a rent and if you're collecting that rental property if you're over there managing that deal working that deal uh putting tenants in there that's earned income okay okay now to the degree that you can rent it and not touch it not talk to it put money in it and they pay you like they like i'm paid i don't touch these properties i have a management company between me and the property so i become the investor in the property right so so all you can buy in new jersey watch what you're going to buy in new jersey this is the problem with the 1031 exchange by the way folks they they keep you buying crumbs i know because i've done 11 10 31 exchanges the problem with the 1031 is you got to take 900 grand you got to fit it perfectly into a deal and in new jersey that's gonna buy how many units four times uh yeah it really depends i don't know yeah it's gonna buy 10 12 14. it's going to buy garbage yeah because nobody's building 14 units today right so so now you're back to now you're back to another job i got to find the deal buy the deal fund the deal get debt on the deal negotiate the deal by the way you probably need to negotiate three deals to get one right you're allowed to do and you got this timeline and you got more stress because you're like i got 45 days to figure this out okay now the way you could do this 750 even though you paid the taxes you're going to pay taxes sooner or later this is deferred 1031 is a deferred tax moment it is not free of taxes it is deferred to the future this deal right here would buy a 2.8 million dollars position in that deal in los olas now it allows you because you picked a partner to become a passive investor tremendous benefits financially for you two your money's out in new jersey where there's a lot of problems right now i think you'd agree with that three we have people from new jersey new york illinois boston like you name it man if it's cold they're coming if if they're blue they're coming you know what i'm saying they're blue because it's cold they're blue because of the way you guys vote it's not if it's not if it's when they coming they're coming okay and they're coming to rent okay so this you you this would earn you probably on the i think you earned on seven 750 i think in year one you earned 37 000 off this investment 37.5 so i'll pass it's all passive income by the way this income would not be taxed like earned income in fact you would not get any taxes on this if you did this before the end of this year of this 750 about 250 000 of it you're going to be given a tax break this year that covers the taxes that you paid because you sold your property yeah and and i believe i believe when we sell this property i believe you end up with two a two million dollar score your 750 grows to two million bucks could be wrong maybe it's just a double for how yeah so like what would your projection be on that my projection is is is on i told a buddy that put a million dollars in this morning he's like grant what do you think happens i know you can't guarantee me anything what do you think happens i said i think i'm gonna pay you 50 to 60 000 bucks a year and i think i think when we sell this you end up with two million not one million maybe three million possibly four million dollars better better situation is in five years i'm gonna send you one million dollars back and we keep earning passive income forever in your case i think your 750 earns 37 500 a year i believe i hit that in the first year i think in the second year will go up to about four grand of 40 000 i think in the third year it'd be about five thousand dollars it's going to start stacking as the years go on by year five i believe i'm gonna send you the 750 back and you still own a position of this piece of real estate i'm gonna send you your 750 back and you're still going to get cash flow this is better than a 1031 by the way because i'm gonna give your 750 back and that is a non-taxable event to you a zero event right so the 750 comes back when you refi is that how that we're exactly right okay so what happens on this property this is why real estate's so beautiful this property is 230 million dollars i'm buying the deal with my money okay so you got to know that i'm pretty certain about my research so i'm going to put the money down necessary to buy the deal i think i think i'm going to put 70 million dollars down i'm going to finance 160 okay 160 million dollars in five years in the year 20 this is our plan i can't promise that the plan happens the way i think it happens but i think it's going to happen like this actually be 2026 december 2026 we close on december 10th this year i'm gonna write off 28 million dollars of this down payment this year i'm going to own the property for 20 days i'm going to write 20 million off and i'm going to share that with the investors you would be one of those people we would share that with that will more than offset your 1031 little dig a dagger that you're going to be doing right okay so watch what happens in five years it's five years in five years you will have earned i think two hundred thousand dollars passive income most of which will not be taxed almost not almost a hundred percent of that will not be taxed to you as income at all zero tax okay now watch what happens in 2026 in 2026 i believe let me just do the math here my rents are 2 600 right now i think my rents are going to be 3 300 times 456. let me see 2633 what is that 700 bucks 700 700 times 456 times 12 divided by 0.03 i think the property's worth 127 000 more than i paid for it i'm sorry 127 million i'm dealing with a big number 230 plus just based on the rents the rents went up 700 bucks in five years it's only 125 bucks here i have one property i bought this year that we raised the rents one thousand dollars per month this year and i bought it four months ago i've already returned 2.8 million dollars to the investor four months after i bought it so we'll get in this property we're going to raise the rents when we raise the rents the value of the property goes up so 127 127 plus plus 230 equals 357 is the new value of the property okay watch what happens the bank's going to be like grant we'd like to give you another loan on the property we like to lend you money we lo because if we're going to take this loan out at five years this is a five year plan on this deal times .75 357 times 75 percent equals 267. what did i pay for the property based on this example 230 yeah so this is what i'm going to do i'm not going to borrow 75 percent i'm going to borrow 65 because i don't need that much money so i'm gonna go right 323 357. we got to keep this video mark this video i want to see five years from now how close we are to this number times .65 okay it's 232 million dollars my new loan will be 232 million dollars what did i what would i pay for it would you say uh 2 300 230. 230. yeah so what am i going to do i just i get a new loan for 232 i send everybody their money back i pay off this loan for 160. i pay off all the investors 70 million and we still own 100 of the property and i would call you up and say hey bro i'm sending your 750 back well what happened man you sell the property no better than that i ain't selling it we're keeping it now do you want to stay in it or do you want to give me your equity what do you mean my equity grant i don't have any money in the deal anymore you're sending my money back okay you want to give me the shares or you want to keep them for your family and you're probably going to select option two right now if you said grant i just want to give you my equity then i'd be like okay i'll take it right okay so you're now made whole you got your 750 back you still own your position in the property uh by the way that would be 750 000 divided by 70 million you won't uh what is that one percent 1.07 of a 230 million piece of real estate that's what i would do so so the question i had so you're when you refi and give the money back the the original investment back that would that would mean if i took that money back that i would be out of the no the property no no only if you want to be out of it i would be like here's your 750 back here's your 750 back lawrence we're going to own the property for another 10 years and just collect passive income right okay now now now your income's probably not going to be 37 000 a month or 40 grand a month or 40 000 a year anymore it might go to 25 000 a year but you're earning 25 000 a year and you have no money in the thing right two grand a month you're getting two grand a month and you got your 750 back right you can never do this you could never do this on a little tiny deal 10 or 12 units 10 or 12 units will never go up in value as fast as some of these trophies show them this property one-of-a-kind trophy yeah you seen it yeah i sold the property grant you uh you actually uh i've been looking at it yeah i mean that's i i saw your video last year when you showed it yeah now lawrence lawrence you had said something like this is the best property uh that you've worked on so far dude this is i've done 45 deals i own 4 billion worth of real estate i have never bought a piece of real estate this good i have three more deals coming right behind this this piece of real estate right here whoever gets to buy this piece of real estate whoever invests with me in this particular deal is getting a deal of a lifetime and i know you guys hear me say that a lot of times i get excited about deals i did two deals in houston this is a deal of a lifetime and it was but it ain't this deal i did a deal in boca raton uh four months ago four months ago did you get your check no you know how big it is no uh ninety thousand dollars i put 650 and i got 90 yeah yeah yeah uh yeah i i did a video on it so that's he's been in the deal four months when he gets that 90 000 back that is a non-taxable event folks that is passive income as passive income gets so and he's getting a check every month so it's not unrealistic to me by the way if we sold this property i wouldn't sell it by the way i could sell it right here 357 we make 127 million dollars that's pretty good score for five years so my 70 million i returned to 70 million plus we get 127 as profit i'm going to take 20 percent of that 127 that's my that's my bonus and and the investors get 80 of the upside above your capital so we will return the entire 70 million some of which i will still own we return the 70 and then we distribute 127 million dollars amongst the investors but i'm gonna tell you guys right now i ain't gonna do that and i'm not calling you guys to vote you're a passive investor you are sitting on the sidelines trusting tom brady aka grant cardone real estate investor to decide what's the best thing for us to do in which case i would be like we're going to refinance this this property we're going to refinance it this year and then we're going to wait until 2042 and do it again okay now watch what happens in 2040. see you guys don't think long enough y'all think let's get rich i'm gonna do this again 10 years after that it's going to be worth 500 million okay at this point we will owe 232 on the property oh 232. i'm going to go get a maximum loan on this because the rents now are going to be seven thousand dollars a month and they will be you guys in new york y'all see seven thousand dollar rents now for a piece of 1960 built building all you can see is another building out your window and you got some pigeon and policeman down underneath and then and all your damn stores are being raided okay 500 watch what happens watch what happens now now that we're in the deal 15 or 20 years 500 million times points 75 i'm gonna go all the way now i'm gonna get a loan for 375 million dollars what do i owe on it 232. this is how people get rich folks rich people this is how people get wealthy rich people sell stuff wealthy people never sell anything hey lawrence i'ma call you up hey lawrence bro i got some money for you bro lawrence imagine this me and you did this deal just me and you lawrence about to get a check for 143 million dollars that's one-eighth of a billion folks for you drug addicts out there that's an eight-ball okay all right 143 million dollars 143 million dollars what is the tax implication lawrence on that deal zero zero yeah did we lose it did we lose lawrence yeah no grant yeah you uh i lost you for a minute but now i'm back yeah so i'm gonna be sending you a check by the way you guys like one percent is nothing i'll be sending you a check my friend for 1.4 million dollars and you've been paid on this asset for 15 years now when you get your 1.4 million dollars you're going to call me and say hey gee man uncle g what's up bruh bro what's the tax implication on this nothing yeah i like it you can't do that you still have room at your conference coming up want out for you i do yeah all right i mentioned what are you going to do by the way cyber monday special okay most of you won't hear this these seats all be sold out by the time you hear this but this is a cyber monday 64 seats left how much are they 697 bucks that's a 4 000 seat 697 we got 64 seats left you guys don't get this you don't come down here and be part of this you looney tunes if you don't want to travel by the way you can watch it watch it on your computer your tablet or your uh your phone three-day event education the entire time the only thing you miss by not coming virtually or by not coming physically is the parties the networking the people it's stupid it's stupid networking ridiculous for 700 bucks okay this grant hi this is alisa goldberg hey elisa i just wanted i wanted to call you and just thank you so much for for helping me out this weekend and want to let you know we sent everything in and i was just hoping to get you know to keep everybody's attention on it oh thank you so much i appreciate it thank you okay bye-bye that was the state of florida we were approved in the state of florida for all the real estate investors this perfect timing cardonecapital.comcardoncapital.com if you're a florida resident and you've been waiting for our fund to be approved by the state of florida we are now approved in 50 states also uh got our stamp from the sec we're good with the sec all 50 states there's i don't know about 1500 people that registered in the state of florida been waiting to put money in this deal lawrence take your 750 bro sell that deal how fast do you think you could sell that deal i don't know i'll put it uh not sure i mean everything's selling as fast as it goes up yes i could put it up right away sell that deal pay your taxes put your money in this deal uh i i could still uh tell you what i'm doing say again even if i can't sell fast enough i still have about 350 000 i could put in the deal well that's simple man 350 000 buys you 1.4 million dollars worth of real estate yeah in this deal so at the very least maybe i'll do that yeah put the 350 in i'll have you as a vip guest at my uh conference i'll give you the tickets ten thousand dollars you're awesome man okay appreciate you calling in all right get lawrence's number okay we got any more callers johnny yes sir we're talking about passive income today folks how can you get yourself in a situation where you're paid to wait for a score that's the point here in bitcoin you're waiting for a score period okay uh investing in apple stock you're waiting for it to go up that's why you're on your phones looking at it every day i remember i was in los angeles california 2000 2000 when was the internet bus 2000 yeah i'm into doing a seminar in los angeles uh there was 400 people in the room these are car salesmen at the time and almost every one of them on their phones day trading i'm like what are you guys doing on your phone all day long this is way before social media okay and they were all day trading i called my twin brother and i said if you're in the stock market get out unload everything bro everybody here from a taxi driver to a car salesman to the sales manager to the used car guy to the guy that works the lot washes the cars is freaking trading day trading three days later the stock market fell apart you guys got to quit gambling man we're at heights of the stock market today look what happened last friday 900 points came off okay today they pick up 300 points everybody gets excited again they all get sucked back into this deal guarantee you you're gonna see epic an epic rollover in the stock market if you're in anything to do with etfs mutual funds when this baby rolls over when it rolls over this time it is going to be they're saying it's going to be the ugliest rollover in the history of the u.s stock markets so i'm not trying to be a doomsday or anything but you guys shouldn't man unless you're super rich you should not be gambling with your money you should be doing this go back to go back to number one what's the what's the goal my goal is not to get rich is to get rich for sure now get rich quick your first target your first responsibility is earned income equal equal to i'm sorry passive income equal to earned income what what's your what's your passive income right now so he's jared's getting 17 grand a month what's your what's your but you're not even close so he's earning 200 grand a month okay oh this is tax by the way he ends up with 100 maybe he gets banked beat up and he's in the state of florida he's earning 17 000 over here i'm going to tell you this will outlast that and this is going to keep growing one day it's going to be 20 000. he didn't do anything he's like god damn why did my check get bigger over here he knows why this gets bigger because he did something he pushed here he don't push he waits so invest in real assets that can't go down in value i mean they could they can do this but they're not going to like they're not going to go away you can't disappear lehman went away twitter went from went from 150 down to like 17 bucks i think it's a 50 bucks this morning jack uh uh uh uh said i'm done and the stock went up five dollars cause the ceo said i'm out okay you have no control folks in real estate you have control you know what control you have pick the right location pick the right partner pick the right market at the right time at the right price and wait your control is to wait next caller [Music] in columbus ohio what's the name conrad hey dude you're destined to be rich you know with a name like conrad hey look i want to say first and foremost i spoke this day into existence a year and a half ago i said hey once i get a couple real estate deals under my belt i'm going to call in and talk to mr cardone live and i'm very thankful uh thanks for what you do thanks for being transparent i got your books right here the 10x rule investing in real estate the one you got right there and of course the millionaire booklet um thank you so much thank you so much that's what i want to say and uh listen my question is um you know we're talking about passive income i because of you i jumped into the real estate game and just been doing some fixing flips the past year and a half um got some capital i just purchased some commercial land and i know lance sucked but i did it um and i want to build a storage unit facility on it yeah and uh so that's kind of where i'm at as far as the passive income opportunity rolling in um i've just been building up capital selling single family homes and buying them off market cleaning them up a little bit and putting them back on i'm in contract of one right now in apple valley and um so look i've been having a heck of a time trying to get lenders uh to give me that construction loan for a storage facility yeah why do you think that is why do you think why do you think you're having trouble with lenders giving you a loan well they here's the things they're telling me number one i don't have a history of um income coming in yeah um they want at least three years of tax return my business is a year old yeah and uh it's just a pain in the butt and i do have some capital on the bank it's just people are saying hey we don't we don't want you so my question is do you know anybody who would who i could call and um possibly entertain no give me a loan for a construction no you should sell you should sell the property and pull out of there you know you know you you you i don't know i don't know why you would even do this well the only my mindset going into it was hey i'd like to be able to get something that could bring in some passive income it won't it won't bring passive income bro you you bought a deal that requires you to push okay you're speculating on a piece of property when i buy when i buy a deal i'ma buy this deal from this guy last year i bought a deal from a guy i paid 165. pick whatever you want whatever you guys can think with 100 165 165 million whatever you want to think with 165 something okay he he built it for 130. he made 35 whatever in this case it was 35 million when he sells it he's paying taxes and that's what you're going to do with your property you're going to sell it you're going to build it you're not going to get a loan on it first of all okay because you don't have the history you don't have the net worth okay you just got in over your head no offense but that's what you did and the reason the bank doesn't want to give you a loan on the deal it's because you don't have experience and it doesn't have income if you would have bought a property that a piece of land with a building already on top of it storage on top of it and just let somebody else make the profit dude you would have passive income you would have bought something it's already full like when i buy this when i bought this deal it was 95 uh 95 occupied now it's 100 occupied i didn't do anything i just put my damn name on it boom people went into the building when i get a check from it every month we're good when the rents go up we're even better so so all of you out there speculating on farmland you ain't bill gates bill gates knows what he's going to do with the damn farmland he's already got to deal with monsanto they going to be they going to be they're going like he's already got a deal man like you guys are out there i'm gonna become a builder man i'm gonna build apartments but you never never even bought one apartment like you're having trouble fixing your garage so well i did put it back on the market yeah there you go man that's what i'm talking about hey let me just tell you i just bought a jet uh last week nobody knows this is the first time i'm announcing this we're putting on the market today if i can pick up five i'm moving yeah you just answered my question yeah what i'm like i mean you got a lot of attention on that house man you gotta fix this fix that but you gotta live somewhere you know and you earn a lot of money so you know you you're kind of in a position to do a lot of things you want hey man i hope that helps i wish i had better news for you hey no problem thank you so much for taking the call keep it real man don't kill yourself you guys know the best way to become an investor become an investor you don't need to go buy stuff first thing everybody should do is become an investor with someone that knows what they're doing let your first deal be the biggest possible deal you do in your whole career okay this deal show them the deal i'm doing right now johnny this deal is available right now available in all 50 states you have to be a u.s person to invest in the property you can invest as little as 1 000 the rents are 2 600 bucks you can invest for less than the people pay one month of rent this is stupid this is the best thousand dollar investment you will ever make in your entire career is there risk 100 there's risk in everything there's risk it will take longer for me to get where i need to get it there's risk that uh people move out of the building i don't know where they're going to move to okay there's risk that there's a fire tornado a hurricane north korea goes nuclear covid comes in omnichrom delta variant uh what else could it be by the way omnichrom or whatever it is called now if you re rework those words omni krom rework the words on omnichrome what is it um no omnichrome there's another uh yeah i forget what it is it was something pretty funny on instagram i lost that so uh y'all worked that out unscramble omnicrom [Music] um can somebody unscramble that word for me now i'm stuck on it yeah do it on the computer man there's there's a hack somewhere is there anybody else on the phone johnny yes sir yes from new york nori what's going on what's going on grant nice to finally talk to you brother oh man good to talk to you buddy sorry sorry you have to be in new york moronic omnicron omnicrom is actually moronic if you unscramble it they're like hey what should we call them well people are morons let's call it omnicron okay what's going on in new york my friend i appreciate you grant i appreciate your time too man i'll be quick um i just got a question i actually also have a deal too okay a nice shitty old deal in new york i'm actually trying to get out of here so that's part of my question as well but i guess we can start with the deal 69 north washington street kerrytown new york all right 24 units okay terrytown's nice it's it's 3.65 right now on the market yep um my question is how to get the actual million dollars to actually invest because i'm not fully liquid a million dollars okay how much do you have how much do you have i have i just have a duplex i have a two family no how much money do you have for the bigger deal how much money do you have about 80 grand uh-huh and you said it's how much money what do they want for it it's a million it's well it's 3.65 it's going to take you know it's 70 ltv so yeah yeah so i like the way you think though dude i said how much is he's like i need a million dollars to do the deal even though the deal is 3.65 million so he's thinking right okay for those of you who don't understand investing his million dollars if he can figure out the million buys 3.6 million worth of real estate he immediately gets a lift on his cash remember cash is going down in value properties are going to go up in value so what you're trying to do is you're trying to take garbage fiat cash put it down on something that's real what's real will go up in value over time and what's not real made up cash is made up it goes down in value it always has it's gone down for the last hundred years it's not going up in value it's going down in value what has happened to real property it goes up in value terrytown's an awesome market i don't know what part of terrytown but i know this you're going to finance 2.6 million dollars what are the rents there uh it's uh [Music] i know why right now is uh 173. 173 000 divided by uh three and it comes with 50 part it comes with 50 parking spot which brings in an extra six thousand dollars a year yeah that's awesome dude this is a great deal i love this deal it's a 4.7 cap you're going to earn about 7 on your money uh now the question is how do you get the million bucks okay so i'm going to be teaching you exactly how to do this by the way december 13th 14th 15th right here in miami folks turnberry hotel literally i could throw a rock over there and hit the turnberry from where i'm at uh there'll be a thousand plus people there these are serious people about real estate about getting serious with using real estate to create passive income appreciation and big tax deductions super super quality room what are those tickets what do we got 60 of them we got 60 seats left i think there's 697 at the at the link below johnny will put the link in um we sell those 64 and we'll probably be uh you know basically uh call in to get a seat if somebody falls out those seats will probably be 2 500 bucks wait list 2 500 and we'll sell hundreds of those wait list tickets uh we have two weeks so you go book your flight you you should come in for this thing by the way you're the perfect guy for this things because in that room is going to be people if you tell those people hey man i got 80 grand and i need 1 million okay i'm going to get 12 people in that room if they love this deal as much as i love it and i haven't seen it i'm going to get 12 people to also put 80 grand in and now you got your million dollars okay this deal can you give me the information on that dude how can i get in there um grant cardone.com forward slash summit s-u-m-m-i-t any any uh cyber monday deals yeah yeah cyber monday is 6.95 it's a 4 900 ticket it ain't going to get more cyber than that i also got a question for you too grant if you don't mind i'll be quick yeah hold on a second let me tell you about this deal though dude you're going to get a three and a quarter percent loan by the way when you get the right investors on this deal the interest rate on that loan goes from four and five percent down to three and a quarter times let me see what would you say the noi is 173 yeah 173 73 906 174 yeah your your interest is going to be 86 000 you're gonna have 97 000 about 97 000. dude this thing's going to earn 9.7 a year bingo jingo that's before your parking idea okay what's the question so i currently am 23 years old i actually make like 200 grand a year i'm trying to get to a million a year so that i can invest faster um i want to actually move out of new york um because obviously this market really sucks but um i need to build up a bunch of capital to get there and um i don't know if i should go out and own my own company right now i'm in the solar industry um or if i should just continue working with these guys and you know stick to the main thing like you said just like um i don't know if i figure out a way how to make million dollars doing solar well you know dude if you think you're leaving new york don't invest there the thing i hate about new york is you actually don't own the property i mean you do you're liable to it but you know your your state is so ridiculous rent control they hate landlords they hate owners they hate real they hate property owners yeah oh did they mandatory mask in new york again you know yeah it sucks yeah dude it's like literally yeah wear a mask i don't even wear a mask on my ass okay brother you know appreciate you man i if i were you i'd moved to florida bro you're young i'd come down to florida and sell seoul you come how much money you earn a year i earned 200 grand i'm a top i'm considered a top earner over here yeah well i guarantee you that much yeah you could make 200 grand with me so could he jared what's your advertisement making a sale what's the average person make in the sales [Music] one up room 450k yeah well i got guys uh they earned 150 in year one uh guys earning up to 400 000. when you come work for me man get out of new york bro i would love to work for you man the garbage dump gotta be next to you man well yeah that's a fantasy well i mean not next that was kind of weird actually that's kind of weird maybe you stay in terrytown man now now come work with us bro come work with us man like you hit the board you still getting the board i'll start spending time with you if you're going to be a top producer i will definitely spend time with you if you're going to be a middle producer i ain't never going to see you no you're gonna be like where's uncle g i thought i thought i thought i was gonna be seeing uncle g oh yeah you're gonna see me walk past you but you get you become tom brady bro oh my god we'd be hugging it out every day spooning snapper rapper get out of new york is what i say hey every monday i do this guys okay so if you haven't subscribed to the channel man hit the notification button so you get notified the little bell and that you know i'm going live and you can call in ask your questions um we're gonna have this show sit archive at grant cardone tv i don't know if that website grantcardontv.com forward slash show notes grant cardone tv.com forward slash show notes if you want a transcript of today's show if you want to go over the math you want to see exactly what i was reading from here i actually have notes we'll share those with you okay remember the goal of passive income the goal of passive income is that your passive income becomes equal to your earned income that should be your first target so if you earn 60 000 a year right now the first target you should set for yourself how much money do i need to invest to earn sixty thousand a year you need one million dollars to match your earned income you basically take your earned income you divide by a reasonable return i'm going to tell you six percent on great property is reasonable it's probably gonna start at four or five year two or three it'll hit six that's cool you don't need a ten or twelve i don't want you to go to ten or twelves because they become risky real estate okay if you take earned income target 60 000 a year that's what i want to earn i divide it by the goal six percent and that tells me i need a million dollars to invest how do you get to a million dollars 10 000 bucks at a time put in 10 000 bank get another ten thousand put ten thousand in another ten thousand next thing you know you do that ten times that's a hundred grand once you put a hundred grand in you're like okay man i'm i'm on a roll is that how you did it jerry it's how everybody does it okay we have for you right now an opportunity for you to invest at cardone capital for as little as a thousand dollars i've made this literally available to everyone this is being called the robin hood of real estate investing i am making trophy property showing the property again honey if you had a million dollars this wasn't provided to you until i started doing this much less a thousand dollars you guys have a thousand ten thousand twenty thousand thirty thousand you got fifty grand sitting around put it in this deal is there risk 100 okay but while you are at risk if there's risk in a real asset rents are going up passive income will be distributed okay it's open to accredited and non-accredited i already have a loan in place remember the dudes that called in today and said hey man i can't get a loan leave it alone man leave it alone goddamn if you can't get a loan on it means something wrong with it i have five lenders trying to give me money for this deal i had five of the biggest lenders in the world and another list of 25 guys that would like to get a shot trying to give me money on this deal why because it's pristine institutional quality cash flow producing great real estate that cannot be rebuilt in that market aaa location aaa amenities 99 occupied day one we close in december if you want to get invested approved in all 50 states including florida sec has put their stamp on it they've gone through all our financials and said hey this thing's good to go for investors okay you can invest a thousand bucks non-accredited investors a thousand dollars accredited a hundred thousand at a time you guys that are rich guys earning a bunch of money you got to put more money up to get in the deal you guys that don't earn enough money yet i'm trying to help you get involved in a great piece of real estate you want to buy something for your family for christmas i i just had a buddy uh todd uh uh straw and danny that work here both work here they just got married this weekend i gave them a ten thousand dollar gift for their wedding investment in this deal i'm like well i'm not going to get them a bag i'm going to give them an investment that's going to pay them for the next 10 years so you guys are giving presents away to your kids you can get on a trampoline trampoline's a thousand dollars or you can give him an investment in this deal it's going to bounce too baby the kids are gonna be like i want my trampoline hey man i'm gonna give you an investment that'll buy a trampoline later on because you know what's gonna happen to the trampoline it's gonna rust it's going to break they're going to quit using it they're going to ignore it and then you've got to move it you're going to pay 200 to get somebody to come pick it up do the right thing folks start investing in passive income you need this passive income this is pi you need this more than you need earned income most of you are busting your ass every day to get more earned income what you really need is more pi thank you for watching today god bless be great we'll see you next monday [Music] you

Channel: Grant Cardone

Views: 49,089

Keywords: grantcardone, grant cardone, 10x, money, finance, business, sales, motivation, yt:cc=on, WeAre10X, 10XNation, 10XStrong, 10XLife, 10XEverything, real estate, passive income, wealth, generational wealth, crypto, bitcoin, ethereum, how to get rich in real estate, how to get rich, real estate investing, making money in real estate, millionaire in real estate, billionaire in real estate, shibarmy, coca-cola ceo, warren buffet

Id: TzWMg5MLtKA

Length: 86min 15sec (5175 seconds)

Published: Mon Nov 29 2021