Making Real Estate Investing Approachable For The Masses w/ Grant Cardone

0:00What's up and welcome to Right About Now, where we're laser focused on growth and covering the gamut of relevant topics that scale your business. Today, we're talking money and real estate with the main man himself, Grant Cardone.

0:37Alford, a Radcast Network production. We are the number one business show on the planet with over 1 million downloads a month. Taking the BS out of business for over six years and over 400 episodes. You ready to start snapping next and cashing checks? Well, it starts right about now. Hey guys, what's up today? We're talking money, talking real estate. We're talking Grant Cardone. What's up, brother? Hey man, great to be with you. I want to do this and you got a great audience and people aspiring to be better and do better and do better things with their money. So I appreciate you having me. Oh, my pleasure, man.

1:14I do want to talk what I think you're doing, which is making investing, especially real estate investing, approachable for the masses that follow you. We opened up a fund for non-accredited investors, people with$100 ,000 and less, starting with$1 ,000 and now invests alongside me in what are arguably the best real estate in America today. We have$4 billion worth of real estate, and I want to make sure that the everyday family gets a shot at buying this real estate, being a partner with me, getting all the benefits and doing so without a broker or a middleman, without Fidelity or Schwab with their handout, getting their little 10 % broker fee.

1:50Nobody touches your money. The money goes from Ryan, your family comes into our fund. I don't touch it. 100 % of the money goes into the fund and you're a partner with me in that deal. How does all that work? I gave you 50 grand. How do you make money on that if you invest in this? The$50 ,000, we're doing a deal right now. It's behind me. It's a$230 million real estate transaction, 456 units, 99 % occupied. Cash flow is day one. I'm going to close on this in four days with my money. I close on my money so you, Ryan, know, hey, man, this guy must be pretty sure. I'm putting$70 million of my own money.

2:23You're going to take$50 ,000 of my$70 million. Whatever percentage that is, you're going to take that percentage, and we're on for the ride. We distribute dividends either quarterly or monthly. If you do under 100 grand, you're going to get quarterly. My goal is to get a distribution every month. Either way, you're going to get every three months or every one month. This is the profit on the rentals, right? That's the yield. Whatever cash flow is produced, we distribute that to our investors. I'm the number one investor, so I want to get a check. Number one, your capital is protected. Two, you get cash flow.

2:51Three, when we raise rents on 456 units, if I only raise the rents$10 a month, the investors will make 20 million bucks. All I have to do is raise the rents 10 bucks and we get a 28 % return on our money. You're treated by the IRS as a passive investor, which is good for you. I make all the decisions. We might be there five years and refinance it. I send your money back and we still own it together. You still have your position or number two, somebody can come along and pay too much for it at which point I would sell it. So either way, you're making the yield on the rental income. You're protected by the asset being the property.

3:25Any gains that are made on the sale of it. You sharing that with you. You've put your money where your mouth is. People are trusting you and you've built that credibility to guide it where it needs to go. Yeah. We got 12 ,000 apartments. I've never lost one, never turned one back to the banks. I've never not had cash flowed. These properties, if you would have been invested in apartments since 1945, you'd be a billionaire today. I started with$3 ,000 investment in real estate 28 years ago. And that is$4 billion worth of real estate today. We have$2 billion worth of equity. It's a big play, man.

3:54We're going to go to$40 billion. I'm completely committed to this space. This is the best money in the world right here because I'm not sweating it out. I get cash flow. I get paid to wait. And if you looked at Greenville, if you'd have bought Greenville, South Carolina, seven, eight years ago, you would be into infinite returns because if you would have kept the property and not sold it, you would have all your money back. You would have no money in the asset and the asset would still cash flow. I'm not talking about single family homes, as you You know, I'm not talking about one house or two houses.

4:22When I bought this, we put our 10X brand on it. I know the rents are going to go up. Number one. Number two, what's going to happen with that property when we start branding it? We start looking for other opportunities within the property. On December the 11th, I'm going to take the 456 people that rent for me. They pay$2 ,600 a month here. And I'm going to offer every one of them to invest with me. So the tenant becomes an investor now. Now, what does that do? That means I got 456 police on a property. Now, nobody wants their shit torn up. I'm an investor here, man. The likelihood is that those people will now stay on that property, extend their stay longer because they're investors in the property.

4:58That's smart. And that, I mean, I love how you build off the brand. That's what people don't get though, like with the 10X brand, like you said, like you're doing all this, but the brand you've built is going to increase immediately the position of the property. You're playing chess and some people are playing checkers. It's just the way it is. Well, the other thing is the behind the scenes, I'm buying real estate that when we sell this, only the richest companies, rich people are not buying these properties. These are rich companies. These are wealthy companies that have to buy real estate. They don't have a choice.

5:30When we bought this, three other groups were involved to buy it. I am the chump of the four. They said, these are the four musketeers. There's three multi-hundred billion dollar companies. There's the chump. I'm the chump. But the problem with a chump is chumps can move faster. They typically hit you first and get out. But these big institutions, because they become so big, because they become public entities, because they have shareholders. I don't have shareholders. I have investors. And when you have shareholders, you have to slow everything down. And so I can move really fast and I can secure assets from the big giants.

6:04The point of that story is this, the groups that miss this deal want to buy it from me 10 years from now. At a higher cost. And then they have to play this money game. This is how they get their fees. For people listening, this accredited versus non-accredited retail investing, how do you describe that for people, the novices out there, and what that kind of means? It's a complete scam. There's no accredited, non-accredited to protect people. This isn't about protecting someone. When we started looking into this, I'm like, why is the number 200 grand a year? Well, because only a small percentage of people make 200 grand a year.

6:37Why? If my niece makes$195 ,000 a year and she's known me for 50 years, she can't invest with me. Why would that be, man? Oh, we want to protect your niece. From what, bro? I'm not some weird uncle. She knows me. She makes$195 ,000 a year. If she made another$5 ,000, you guys be like, now she's smart. I know people that make$400 ,000 a year. They don't know anything about real estate investing. They're giving me money. It's completely on trust. The people that need the investment the most are the guys with$10 ,000 and$20 ,000. grand. That's who needs these investments the most, not the person that has$2 million sitting in a bank account.

7:11Yeah, because they've got unlimited options if they got$2 million. The 10 ,000 guy has nothing. Yeah, exactly. And then when you start really digging into it, it's crazy, but the average American only gets a chance to buy the crumbs and leftovers of the real estate market. We never get a chance at the IPO. Goldman Sachs isn't going to call you and say, hey, I got a little something for you, bro. You need$100 million in cash to ever get that phone call and you probably need a billion dollars. It's more likely you need a billion dollars. All that money is kept. That's why the wealthy just keep getting wealthier because they get the opportunity to have wealth.

7:42These kind of assets, only the wealthiest businesses buy these. These are insurance companies buying this stuff today. Trillion dollar companies. It's really sad that they set this up like this. The last thing I'll say about it is the bottom line, all this was set up to keep me from getting your money. If you don't give me your money, then you got to give it to them. And the SEC was set up by Wall Street. The CDC was put together there by WHO and by the FDA. I love the SEC. They've been really good to me. They've done homework on everything I've done. They've been very, very fair with me. They've approved us for 17, 18 funds now, but it's not fair to the little guy that needs a shot.

8:20I love it. How do people get involved with it? Go to cardonecapital.com. You can register. You just pick non-accredited or accredited. I'm doing this to make it so easy for people. Like if you're accredited, you got to do 100. Minimum's 100 ,000. If you're non-accredited, you can do any number as low as 1 ,000 bucks. Our average non-accredited is doing almost 25 ,000 bucks, taking advantage of this deal. And I would just tell you guys, like if you're listening to this and, hey, is this a good deal? This piece of real estate behind me is the single best piece of real estate I've ever bought in my entire career.

8:51When I do one of these deals, we're under confidentiality agreements. I'm not sure how I got out that I was buying it. But the occupancy was 91%. And now it's at 99. Just because people know I'm going there. So even during COVID, we performed 24 points better than the national apartment deal in the country on collections because of the kind of people we attract to our buildings, which are 10x people. People that are integrity. They're working. They don't make excuses. They're not victims. They don't want to scam the system. They want to make it the right way. Part of my brand is going to lift all these properties.

9:23hopefully the investors and myself all do extremely well from it. I love that. Whenever I talk to people like you that are driven, that are successful, that have done these things, and they all want to know what the success formula is. I know you have the 10X platform. I know you've got seven of these and five of these and four of those. But like, have you boiled it down for both yourself and maybe others, what that success formula truly is? Well, one is show up. You've got to show up. If you don't show up, you can't get lucky. Nobody's going to come to your home, your sofa, your bedroom and give you anything.

9:52It's just not going to happen. You got to be available for whatever you're doing, even if you don't want to do it. I do stuff every day. I show up for stuff every day. I'm like, fuck, I don't want to do this. But I show up and then I act like I want to do it. You got to show up and then you got to be willing to change your mind about it because something super cool might come out of the deal. And while you're showing up, you got to drop your bad attitude. If you're negative, bad attitude, stuff's going wrong. You lost your mom. You got COVID, whatever the hell happened. Nobody needs to know about that.

10:17You got to show up and be 100%. Number two, I would tell everybody I'm always looking for a 10x target. Always. I wake up every day, never satisfied where I'm at because I'm always looking for the 10X. I got 4 ,000 or 12 ,000 units. I'm going to get 120 ,000. 120 ,000 units, bro. I'll be like, I can run for president of the United States. I'd be a major player on planet Earth if I can get there. I don't know if I can get there. Today, I probably doubt that I can get there. To be honest with you, I don't think I can do it. I don't know that I have enough time. I don't have enough money, but it's cool to think about it.

10:46Number two is you got to think big every day. I got to be thinking about not how to get one deal. How do I get 10? Not how do I get 10 people? How do I get 100? Like whatever it is, just 10x to think. It's ridiculous anyway. And then the third thing is give back, man. Once you start hitting or not hitting, no matter what's going on, man, find somebody you can help today. That keeps fueling my tank. If I'm winning, I'm going to share it with somebody. Hey, man, I tried this little trick, this little thing. I did this little thing and it worked. If I'm failing that day, I'm down and out. Let me go see if I can help somebody get up.

11:15Those three things have always been there for me. I love it, man. And lastly, and most importantly is how do we partner on Greenville, South Carolina and make some money? How do I get to 124 ,000 units? Partners. No, this market's booming. I'd love to see. And it's going to keep booming. Six reasons why multifamily apartments, real estate will not go down in value because I think a lot of people think it's overpriced right now. It ain't going anywhere, folks. I promise you with every fiber in my body, this country will become a renter nation. I said that back in 2014. We will become Europe. Politics will become Europe here.

11:49That's happening. You know that shit's happening. Oh yeah. People, we're gonna be four day work weeks. We're going France, baby. People will be renters. Single family homes will become investment properties that are rented to people. That's happening right now. 40 % of the housing stock in America is being consumed by investors. That never happened before. We have a shortage of housing in America. We have the lowest interest rates in history. The low interest rates don't help owners. They help investors. That's the other thing people don't understand. They think, oh, people are going to get a mortgage.

12:18People cannot get a mortgage today, even at 0 % interest, because it takes 20 % down. The down payment's not there. The wealthy are buying real assets. There's no place to get yield. There's a shortage. Inflation's going to happen to real materials, glass, brick, concrete, labor. This is going to be the best bet for the next decade, maybe 20 years. until everything, every piece of real estate you're going to look at is going to be where somebody rents. I love it. Your time's valuable. I really appreciate it. Let's drop the link to keep up with you and anything else we can mention for everybody.

12:47When is this going to play? When will this drop? They can go to 10xgrowthcon.com. I don't throw best around all the time. That's the best piece of real estate I ever bought in my damn career. I want business contacts. I want strategies. I don't need inspiration and motivation. I need targets. I need people around me that are blowing up. I don't need a coal bath. I don't need a firewalk. I don't need any of that stuff. That's not my deal. I can go from zero to fucking 1000 miles an hour. All I got to do is get around the right people. I love it, brother. Well, I really appreciate your time. And I'd love to get to know you better, man.

13:18I like you. Thank you, brother. I really appreciate you, brother. And I'll drop you a DM on Instagram. We'll make something happen. Okay. Appreciate you, man. All right, man. Thanks. See ya. Hey, guys, you know where to find us. Find all the content. Search for Grant Cardone. All of today's episode. We'll see you next time. this has been right about now with ryan alford a radcast network production visit ryanisright.com for full audio and video versions of the show or to inquire about sponsorship opportunities thanks for listening