Episodes
Real Estate Investing podcast moved to Cardone Zone. All episodes in one place. Go to GrantCardone.com/podcast
Published 06/08/18
When do you start reinvesting money into a property? Here are 4 rules: #1 Never do the whole rehab #2 Do your worst case scenario #3 Look for 30% return or don’t do it #4 Leave something for the next guy Buying Multi-family is not buying real estate—it’s buying a business. Every dollar that you spend, 30 cents should come back to you. If you don’t get a return on investment, why spend the money? Rehab is not about taking shortcuts—it’s about being smart about cutting costs that aren’t...
Published 06/05/18
What are Mistakes Most People Make When Investing in Real Estate? #1 Not buying #2 Deal is To small (less than 16 units) #3 Doing single family deals #4 Taking too much debt #5 Bad Buying price #6 Buying unwanted deals #7 No direct cash flow #8 Moving out from your MARKET #9 Not Knowing your Market
Published 03/26/18
Why the wealthy invest in Real Estate: ● Income - monthly checks ● Appreciation - This is tied to the job marketplace in the area. ● Depreciation - write down the value of the property to save ● Leverage - spent $1 get $3 - Use debt, but be extremely disciplined ● Tax Advantages That’s what we do at Cardone Capital. We go after big deals that pay every month and appreciate over time!
Published 03/19/18
You shouldn't invest in real estate if you don't know the market. You have to know about the location and what kind of residents are in the area. When you know what you’re doing, you’ll make money. If you’re not making money, then you don’t know something. The real estate is a game about KNOW. The 4 Quadrants of Real Estate are: ● Price ● Down Payment ● Debt and ● Cash-on-cash
Published 03/12/18
There’s been some massive swings of instability in the stock market. I’ve got enough drama in my life. I don’t need it with my money. Little deals produce little cash. Little deals will get hurt when the market corrects. All the foreclosures were small deals: 2, 6, 8 , 10, and 12 units. What’s the problem with these deals? They cannot cash flow. It’s back to termites, tenants, and toilets. I tell you the truth—you should be in at least 32 units.
Published 02/12/18
Do you like drama in your life? I’ve got enough already. I don't want drama with my money. Two mistakes people make after they work hard for years: 1. Never invest 2. Invest in the wrong thing If the stock exchange collapses or if Bitcoin goes up or down, I get monthly checks. I’m paid to wait while my property value goes up. That’s the certainty that you need with your investments—you need mailbox money. The more scale you get, the more stability you have. Most people can’t buy scale....
Published 02/05/18
When it comes to investing in real estate, how do you know what market to get into? If you already follow me, you know that you should go after big apartment deals. Purchasing a home is not an investment. The bank sold middle America on the dream of owning a home. When you buy a house—you don’t really own it—the bank does. Never buy anything that you can’t own. When you really know your real estate market you’ll: Be in it—love it Keep it—location is growing Produce Income
Published 01/22/18
Don't let big numbers keep you from investing in real estate. If you collect cash flow over time, appreciation will happen. This isn't crypto, this isn't speculation, this is real estate—the safest, best investment you can make if you do it right. That means buying the right property at the right location at the right time. This is what I do at Cardone Capital, and I invite you to join me.
Published 01/15/18
When it comes to investing, I’m taking the real estate play every time. It’s a real asset that you can touch, feel, and see. It generates income that I can leverage for other investments, just to name a few advantages. I own crypto, so I'm "invested" in both. What are the real differences though between Real Estate and Crypto?
Published 01/08/18
What should you be investing your cash in? Are you looking to get rich quick or get rich for sure? You won’t get 2000% returns in real estate like you might in crypto, but you can get 20%. Crypto has a long way to go, but it still goes up and down. The number one question I’m asked, is what do I do with my $2,000 or $5,000? 2k, 5K, 10K are not investments—you need 100K. Think about what you would do with your last $100,000. Stocks and crypto are easy. Anything real is work. Marriage,...
Published 12/11/17
Buying a House Vs Investing in Apartments - Real Estate Investing Made Simple: Buying a house is not an investment, but it could be a place to save money. There is a big difference between a saving vehicle and an investment vehicle. Investments pay you every month while you pay into your savings every month, right? So do you want to pay or get paid every month? Most people don’t own their home. The banks own it (your mortgage) and the government owns it (your property taxes). No matter how...
Published 11/27/17
Uncle G brings it for free every Monday with captain Ryan. Today on the show Grant advises to not chase your budget. Finances are won on offence. When you don’t have money, you need to get other people’s money. Who’s got your money? Don’t buy deals you wouldn’t look at if you had a bunch of money. The fact is, we all get stuck finding money no matter how rich you are, so the thing to keep in mind is the deal is what matters, not how much money you have. Most people do deals based on how...
Published 11/20/17
There are 3 main ways to make money in real estate. #1 is the Wholesale Flip. This is a sales job. You don't need to invest money if you want a sales job. There’s nothing wrong with it but it’s not really real estate investing. #2 is the Small Deals. These are the little duplex's, quads, and anything under 32 units. Most people do these because they have a budget. #3 is Big Deals. You want to be in 32+ doors, even if you have to collaborate with others to do so. The biggest difference between...
Published 11/13/17
There is a shortage of great product out there in multi-family. The most important question is how to find a deal, and how do I get them to sell me that deal? You will need to write a LOI (letter of intent). This is a written document showing the intent to purchase something. You need to sell yourself in this document. Here are 5 additional things you should cover: 1. Price 2. Closing Date 3. Financing—non-contingent 4. Due Diligence 5. Deposit
Published 11/06/17
Money is the easiest part of buying real estate. The hardest part is finding the right deal and getting a broker to listen to you. 1. When did this last trade? 2. How much did it trade for? 3. How would you rate the location on the scale of 1-10? 4. What is your debt-underwriting for the property? 5. What do you like most about it? 6. What do you like least about it? 7. What else do you have that is either unlisted or off-market? 8. Other than price, what terms will motivate this seller? 9....
Published 10/30/17
What are the benefits of renting vs. buying? Most people think the benefits of buying a home outweigh the benefits of renting but this is false. Most people never take into account the cost of opportunity lost. It’s almost never better to own. Instead, you should rent what you own. The more doors you have the better. 1. Renting is cheaper. 2. Nobody should own. 3. Even rich people shouldn’t own, although if you’re rich, it doesn’t matter if own—because you’re rich. Buying leaves you with no...
Published 10/23/17
1. You’re not buying: If you don’t buy, it’s because you don’t know what you’re doing 2. Buying too small: This happens when you become scared thinking that big deals are riskier. This is false, small deals are riskier. 3. Buying on a Budget: don’t be confined to what you can “afford”. Don’t have a budget when you buy, have a budget when you own. 4. Believing the Pro Forma: don’t put significance on a fairy tale. 5. Underestimate expenses: taxes and insurance aren’t fully understood. 6....
Published 10/16/17
When you buy a property, you need cash flow. There is a reason why cash is called king. You want big cash flow every month when you make an investment. But how do you analyze the cash flow of a property? 1. Income — VIP parking, laundry…anything that people need and want that you can charge extra for. 2. Expenses — You’re going to have payroll, landscaping, utilities, insurance, repairs, taxes…these are all things that you can’t get rid of. 3. Debt — Principle and interest on the loan....
Published 10/09/17
The NOI is Net Operating Income. You have income, expenses, and then you have NOI. 5 units and above are dependent on NOI. It’s what the price is based off of, what the banks look at, and what the cap rate is made from. To determine the NOI you take Gross income minus expenses = NOI. The higher the NOI the more cash flow it’s going to produce. 3 questions to ask in multi-family: 1. How much will you pay for the property? 2. How much will it operate for? 3. How much can you sell it for...
Published 10/02/17
If you had $1,000,000 and you had to hold it for 10 years, what would you invest it in? Crypto? Gold? Stocks? Real Estate? I choose Real Estate. Why? 1. It’s real. 2. It provides cash flow. 3. It gives me leverage. 4. I get appreciation. I’ve made a lot of mistakes in real estate, but losing money isn’t one of them. Buy lower CAP rates, that will make sure you have a better location. Time will take care of your appreciation. Don’t buy on a budget. If you’re buying on a...
Published 09/25/17
How do you determine if you’re at the top of the market? When cranes are in the air, beware. If you see cranes everywhere, you are at the top of your market. We haven’t had a real estate collapse since 2009—that is 8 years of prices going up. You don’t want to buy at the top! There will be a pull back, it’s just a matter of when. Builders over build. Yet every 10 years, apartments double in value. Always keep in mind rents, rates, and supply. 1. Know you market—This is a prerequisite for...
Published 09/18/17
In the last 20 years REIT’s paid out an average of 8.7% while the S&P paid 5%. I assure you there are better ways to invest. Real estate always comes back over time, it always provides cash flow, it’s real—it’s not a stock or pieces of paper. And it’s definitely not crypto currency. Here is how you can force appreciation in any market, anytime: 1. Improve the Inside—spend money to improve the interiors of units. 2. Improve the Outside —spend money to improve the exteriors of the...
Published 09/04/17
How to Get Your First Deal—Real Estate Investing Made Simple with Grant Cardone...Here are 4 things you will need to do to get your 1st deal in real estate: 1. Find a deal— People think it’s easy getting into real estate but it’s not. It takes reading report after report. You have to find a deal and that’s harder than people think. 2. Analyze it—Do you know what to look for in a deal? Do you know the terminology? 3. Finance it— It’s expensive getting a big deal. Buildings with 50 units or...
Published 08/28/17
Today on the Real Estate Show I take callers and review deals. Watch me walk the callers through my thoughts as I do the numbers. This is how you buy real estate. Don't just look at one part of the deal, look at all the numbers. If you have 3,4, or 5 units, put a big package together and sell them as one deal. This is what I do, accumulate a number of deals together, package them as 1, and the pig will get lost while the jewels will stand out—and you will get a premium. If you don’t want to...
Published 08/21/17