Why is it brilliant? Think of why you don’t own your own home AND investment properties. Because you don’t have unlimited amounts of money. Scenario 1: Montage the home you live in. You put your $30,000 down for the downpayment. You have a debt service of $1500 per month plus about $250 to put toward upkeep. The house doesn’t give you any positive cashflow. You work 100 hours a month just to service that debt. Scenario 2. You put that $30,000 into a downpayment on a fourplex, it pays you $3600 per month in positive cashflow in addition to your regular income. Your debt service is $1500-2000 a month, leaving you a net of $1600 more than what you had in scenario 1. You can take that $1600, save it over the next 18 months, and put it as a downpayment on another fourplex. Now you have two properties providing positive cashflow and growing in equity. Now your annual income is $84,000 more than what it was before. In another 18 months, you can take that to $120,000. Sure you have 20-30 years of debt, but you are still cashflow positive, all your expenses are tax deductible, your net worth is increasing exponentially, and you have the choice of being debt free with massive amounts of cashflow for your retirement, or keep building your net worth to pass it on to your kids.
I own 17 rent houses and my own home. I pay $1500/mo on my own home, that includes the mortgage, insurance, and property taxes. If I were to rent this home, it would cost at least $1500/month, and I own nothing. Now granted, I did not include upkeep, but that is a small price to pay for something that will double in value every 20 years or so. Only rent if you are not going to be in the same place for 5 plus years.
Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk
There’s people in this world that get it and people that don’t. Not only does he get IT but he teaches it in way that helps others get it too. This is very valuable!
Those who don't get wouldn't benefit from it anyway. I definitely am giving back, I was already about that, now I'll just have way more to give. Honestly I wasn't thinking of doing real estate but the more I watch him on how he does it the more I want to get my money up so I can start flipping stuff and investing saving ECT ECT
I think "rent where you live, own where you rent to others" is the most brilliant thing I heard. Makes sense. And thank you Grant for your wisdom. What better way to learn. Than to learn from the beat.
I bought three years ago two bedroom apartment and rented. Now Im hoping next year to buy one more apartment and rent. I’m 33 years old. So hopefully before I’m 50, my goal is to have at least six or seven apartments.. o and i have bought five garages and rented.. so nat bad. Best regards from Europe- Slovenia. G you are awesome 👏
Dylan Cook you are completely right my man.. got too focus my goals on big stuff, at the end, we only have one life. Thanks for speaking out, be safe👈💪
@The Indigo Child 438 what i do is. Build a portfolio with the bank. For example. Lets say i have 500k in the bank. And i bank with wells fargo. And i buy one home in cash for 100k then i find a renter within a month or two. Now that i have a renter and i have a passive income on the home. I go to the bank and refinance it for 150k. So now i have a mortgage but i have a renter that is paying my mortgage and i have more than what i put into the home. I paid 100k got 150k and have a renter paying my mortgage. Now imagine doing that with all the 500k. So your 500k turned to 750k and allthkse five properties are being paid for. (Mind you you still get money from the renters because your mortgage is usually lowers than what a renter pays you) so now that you have 750k in your pocket. You go ahead and now buy 7, 100k properties and the cycle continues.
There were many people like you in 2007 also, they had no properties left in 2009 and personal debt they couldn't repay in their lifetime. Grant makes money selling his content, he doesn't make money in real estate. Just be careful.
Darius Jones Yes definitely. I have a 4500 monthly in rent however I never spend my own money. My tenants have been paying all of my bills and still profit every month so far. I would advise you live in one of the units of a multi family property and pass all costs unto the renters.
I don’t consider the bubble will pop. To many people renting which is more secure than mortgages. All you have to do is recycle the tenant instead of wasting a 30 year mortgage. Renting might be the only way forward.
@@RichardWKeys i wish people would realize that your house is only worth what someone will pay for it , not what zillow tell you . People have felt rich because of the housing boom , i see a ,mental health crisis coming in the downturn
@@christopherberends8242 Good investment plan is what we need and many ignore it . think abt it , we do not know how bad this recession will be , what happens when a lot of first home buyers , esp in tech industries , lose their jobs? How long before they cannot afford their mortgage payment? what happens if some jobs don't come back or cannot come back? How many home owners are just getting paid by month to month
@@shariwilson9213 Exactly . I was able to accrue $30,000 in raw proft with the help of my invstmnt pundit " Angela Mae Mcclain " . The truth is , there is ALWAYS a way to make money in this market! While the market has not been set to easy mode recently, there are still nft to flip, solid coins to a stake, IDOs to ape into, trades to make, and yields to farm. Never stop hustling for those gains!
@@sararobert1676 Impressing i think i will need the assistance of your investment Pundit. I just sold my truck and i want the money place on safe investment
I figured this out about a year ago. I sold my house and now have 3 rentals. They cover the money for my rent in a better house and my car payment. My savings will now go into another rental and then another. By the time I get to 10 (which will take me another 5 years, I'll be 43) I'll have around a hundred grand a year in income, which will match my normal income. This strategy works :)
Great post. I've tried to explain this to many people who are brainwashed into believing they need to own a house to get ahead. In reality a home is the biggest debt trap for most people. It holds them down and restricts their options. Once you look at inflation and the market plus the other costs you end up being behind. Owning homes makes sense when you're renting them out but if you're living in your home you are consuming and not investing it. At best you are speculating that it will be worth more in the future. Which in many cases you don't. That's what people found out in the last crash. I've made many videos about the great lies of life (school, house, job, etc.) and this is a big one. Great video!
Ever heard of equity? Or a HELOC loan? Come on now, when you rent you’re basically paying for someone else’s investment which is counter productive to what you’re trying to do when you’re investing in real estate...
+Devin Renting is very convenient, especially with houses...and when you think about it, you take out a 30 year mortgage to buy an overpriced house....for the first 1/2 of those 30 years almost all of your payments are going toward interest not principle, and so you really aren't gaining anything. You only "win" if you are able to pay off the loan before the mortgage note matures OR if you are able to flip it at a profit. Of course, you may end up buying in at the market top and when the home values plummet you're stuck with an upside-down mortgage liability and trapped in a house that you probably won't be able to continue making payments on. Either way, the bank wins and you get screwed over. The system is not designed for plebians to get ahead.
Just want to say thanks Grant. I was on a journey to buy my Mum a home in 2 years so we can all have some independence, but after some thought and guidance from you I realised that a) owning a home wasn't the goal at this stage (living independently was, and having to raise a deposit would only further the time to that outcome), and b) that to provide long-term wealth for our entire family it would not be smart to tie up $120-$200k in a house deposit (plus the $30k + per year) and that we'd be much better off investing that to a greater effect and have others pay for our real estate. I cannot say that this input from you has changed my life (because I haven't done anything of effect yet) , but it did allow me to consider different possibilities, which I strongly feel will give me the opportunity to thank you for changing not just my life, but my family's life a few years down the road. Thanks for being awesome Grant! 10x
I don’t know about people just watching this for entertainment, but for me this is golden because it’s straight forward, knowledge that has been tried and true and it has costed money , hard experiences , mistakes Grant is the coolest rich guy I’ve heard share knowledge influencing the shit out of my aspirations, watch , I’m up and coming...
That's what I am doing now. I know how it feels. I own 3 units and I rent to 3 people. I live in a place I rent. I making over $2000 profit after paying my 3 units bills and my rent. It feels, I just started real estate investing less than a year ago. Thank God for life and every opportunity he gives me.
Love you Grant! I have 2 copies of Richest man in Babylon, started listening to Dan Lock and Dan Pena. But your message seems to be crystal clear logic to me. Now it's 99.9997% chance you wont ever see this message but It's more for me to express my gratitude than anything else.
As a home owner, I can tell you, buying a home is not a savings account. You have constant maintenance, break downs, property taxes ($600 a month), insurance ($300 a month). Return on investment is slow. Based purely on Purchase Price vs Current Value, my house value has gone up 12.8 percent per year for the 16 years I've owned it. I've put tens of thousands of dollars toward upgrades and maintenance. I've paid about $10,000 per year for interest. Yeah, buying a home is bullshit. So if you sell and you think Ok, I'm selling for $350k, I bought for $220k, I made $130k. No, you didn't. Subtract all those things I mentioned above and you find you didn't make half what you think.
I gave up my American Dream when the broker showed me the numbers and see how little will go to my side at the end so instead I decided to continue buying cash properties overseas
I’ve owned my house for last 5 years and I’ve never felt better to own my piece of land. It’s just peace of mind. I’ve also felt very confident and grown up having a place of my own. Trust me you’ll like it when you own. Just be responsible.
For others, it's a burden, due to the costs of upkeep (taxes, maintenance, insurance) and the fact that it prevents you from readily moving if you want to. Ultimately I think the decision to own/rent comes down to lifestyle choices moreso than financial.
I buyed a house with 3 apartments and now I renting out 2 of them. so I live in my own home for free. Thanks so much for your advice, I think my next goal will be something much bigger. but we all have to start somewhere.
He’s not a mentor though. What Grant is doing here is monetizing his knowledge! If you want a true mentor find someone in person who is where you want to be in life and ask them for advice. Grant doesn’t have a vested interest in you. What I mean by that is he doesn’t care about any of us individually. On RUclips, he cares for us as a whole because when we show up to watch his videos, we are making him money. Of course his videos bring us all value but he’s not a mentor! Not hating, I love Grant. There’s just a lot of misconception with mentorship out there. Hope I didn’t offend anyone by trying to clarify.
I had a buddy in Rochester MN that bought and owned rental property before the Real estate bubble burst a decade or so ago. He actually sold all his property just before the collapse, but he said the same thing. No single family dwellings, ever, period. He didn't even like duplexes.
As a guy who comes from four generations of property development, bought my first home at 18, also have my own property development company, I can easily say, BUYING PROPERTY IS THE BEST INVESTMENT, YOU CAN MAKE. Just make sure you know the price average for the area so you’re not buying at a high price.....
58 units later still going baby! I watched this video 4 years ago when I only had like 12 and just keep blowing up!!! Watching again 4 years later and man so many things you said came to be truth !
Great video 👏🏼 Living in France, unfortunately only bought single family units so far but will be looking into multi unit family because I completely agree with Grant Cardone. He is a visionary, even when he said that office spaces will be disrupted, 3 years after the video with the pandemic crisis we are in, and home office work increase, we can see that he was totally right.
never heard of you bro, but excellent message. I've been a real estate investor 25 years myself, very few people know this strategy. Let others pay your living expenses.
Enjoy your concepts. Although I reside in Great Britain your thinking is relevant to the environment here. In terms of buying, the rents in this country are rising exponentially, therefore, it is cheaper to have a mortgage, when I say cheaper I mean the mortgage repayments are considerably less than paying rent. In terms of buying property to rent, the laws in this country penalise landlords financially, therefore, most of them are now in negative equity and broke with property hanging around their necks on which they are still paying mortgages. The best investment here, currently, is purchasing commercial property which returns far greater profit than almost anything else. Thanks for your excellent input... much appreciated.
This idea will work not only with Real Estate, say a photographer, wanting to take great pictures, he (I) could get enough people to deposit a refundable fee for their photo session, use their money to rent great kit and so on...Thanks Grant, a real eye opener and makes so much sense!
Love it, Grant. I'm selling my townhouse for 550. Owe nothing on it and get 2500/mo. I plan to invest in multi family with money. Than you for inspiration!
@@jaredtheboss I ended up changing my mind and keeping my townhouse renting it for $2600/mo. Think its a great passive income. I'm considering on selling my house to move to Florida, possible rent or downsize. A bit uneasy because I feel a housing crash is coming. Not sure what is the best direction atm.
@@pennypincher7383 may i ask what ur purchase price was..was it cash..how much mortgage debt and how r u cash flowing....im 25 have 60k in cash...and im so hungry to do my first deal..either a sfr or a condo 2bed 2 bath to rent.....i have heard many ppl said its gonna crash and to be cautious ...depends where u live...im in NY and its pure shit...floridas beautiful....it all depends..where u at
@@jaredtheboss my townhouse sits right outside Boston. I bought it for 350 and paid it off almost 6yrs ago. Currently, I can probably sell it for the amount mentioned above. I have a house that I bought for 600k putting down 20%. The value is now over 800 and I owe 400k. I visited friends in Tampa, Florida back in April and absolutely loved it there. I'm actually going back next month for a little over a month to get the feel of living there which is why I'm considering of relocating. Should I wait to move and see how the market turns out?
Debbie Hahn I bought my duplex in October of 2008 and I'm still in it because the rental income and the tax write-off's gave me the cushion to take financial hits.
1) You do not want to live by your tenants. You want to manage less, not more. More face time is more problems. Ideally with scale you hire someone else to manage. 2) You miss out on the rental spread by doing this. If you are good at renting your units you can rent them for above market rates and then you rent from a landlord who sucks at advertising / is lazy and you rent for below market rate. When you're first starting out, every bit of spread makes all the difference.
Robert Kiyosaki made me realize this. I'm looking for a 4 unit to live in one and rent out 3 within the next 12-18 months. I don't plan on buying a house until I'm 40 at the earliest
RapperGeek Media LLC That's a good plan from a meta perspective, but details on the ground make the difference. If you're going to live in one, it better be an especially nice unit. Remember, many multiunit dwellings were not designed for high achievers. Make sure you get a trained microbiologist to inspect it to ensure that it's a healthy environment w/o unusual mold growth or anything else that can strip your health away. Make sure it has good airflow and air exchange, too, or improve the unit so it does. Mycotoxins kills, but plain old CO2 accumulation destroys productivity.
Yes, I definitely will stay tuned, after I bought my first home and watching a lot of documentaries realizing the "American dream" is a scam, I never looked at life the same again, but renting a home never crossed my mind, but everything you're saying DOES make sense/ CENTS
I learned from this man the miracle words of "leverage" (thanks Cardone. I will always be in debt with you).. Thanks buddy. Leverage. Cardone use a lot of leverage, specially using Syndicate money. You guys can do that to. If you live in the USA I can tell you that there's like 1500 federal, state and local programs for investors were you can buy properties with minimal down payments. For example, I bought a 10 unit condo for $1 million dollar (distressed condo) and only had to put $10,000 because a Federal program called Hack. When you hack a building, you only have to put 3,5% down payment or $35K in my case. I borrowed another $25K from family. The only condition is that you have to live in one of the unit for at least 12 months. I then asked for another federal program called $203K, which is a loan to rehab the property. After I finished the rehab I raised the rent on the units and 12 months later I refinanced the property taking out over $350K tax free and lowered my mortgage which means more cash flow to me. In Multifamily your property is valued by the income, not by comps like residential RE. So if you raise rent, say $400 buck a month x 10 units is a extra $4000 or $48,000 a year. That's mean your building appreciated $450,000 at least just by rising the rent. Once you have a few successful deals under your belt, then its when thing gets funny. You then can syndicate the loans. Loan Syndication is when a group of banks or investors put money to lend you for a large multifamily property. In the USA at least, there's like 200 ways to buy properties way under the market value. The beauty of Real Estate in the USA, Is that there's like a gazillion tax breaks. I don't thinks that any other industry have so many tax breaks like the RE industry in this nation. I know a couple making $500K a year in cash flow 100% tax free. PD: I just got My second multifamily property this year. A great 6plex outside Miami. It was a steal.
Coming from the man who makes the bulk of his wealth from renters (4000+Rental Units). Keep in mind, this works for some but not all. You must do what's practical.
Hey...are u spying for Dave Ramsey??? LOL just kiddn. I love listening to em both. After I listen to Dave I know I did things the right way according to him but it took 30 years and when I listen to Mr. Grant I feel like I can conquer the world and whoop my weight in wildcats. LOL he's very inspirational. GB
Grant I am the same guy you started out as. I know nothing about Real estate. I watch tons of vidz and have read 2 books. Good info from everyone however your 13 minute video has been invaluable to me about multi fam homes. I sold my house that was paid in full and now rent. On my way to learning the journey. Excellent vid and very motivational. Thanks and keep the vidz coming. New subscriber. Rocky
I think this definitely makes sense if you are someone who wants to live in multi million dollar homes, BUT if you are happy living in normal houses, the cost of renting is much higher than owning unless you plan on moving in less than 3 years. Although, it is a good idea to buy a rental home before buying a house to live in, or like has been said by others, by something to live in with other renters.
Living room Legend then just rent out your house for 1,300 making a 450 monthly profit ( put that towards ur new rent) and then refinance and pull the equity out ( since u want to sell it anyways) and use that money to buy your units.
Living room Legend Personally, im thinking of building a separate living area on my property to rent out. Then use the extra money for other units. Gotta start somewhere.
Buy a house for 100k (example) invest in your house (modernize your house) wait 1 year for the house to be more qualified in the market sell of the double or the triple income !
C V Yes, and for only the $4,000 he said he scraped together for the first place, he then sold & broke even. A 38 unit property deal for $4,000. (8:30 for those looking).
He obviously meant broke even by selling the house for the same amount as the loan he got when he bought it. Also he sold several years after he bought it so he didn't buy a 38 unit property for $4k. He bought a 38 unit property with 3-4 years worth of savings plus whatever equity he had in the 70k house that he got back when he sold it. Think a little before posting.
THANKS! I was thinking and had the same logic that you're preaching instead of listening to my peers and buying a single house and waiting for the equity. But my logic was that I'm bound to it monthly like a ball and chain (on a larger scale). Your explanation just solidified the trust I have in MYSELF. THANK YOU!
*There's no shortcut to getting rich, but there are smart ways to go about it. I realized early in life the importance of investing for financial independence and have invested with great returns working with a professional*
I've always been fascinated with investing and as such would appreciate some help on how to go about it without incurring a loss. Can you share the investments you have made and your experiences with them? Thanks.
@@ryanphilips4808 I engage in prolific investments such as:- real estate, NFTs, crpto and stocks and through proper advice and management by a licensed financial adviser (Donald Nathan Scott), I achieved good returns on investment. For a better investment experience work with an expert . That’s just my advice.
@@alicemuller9386 I appreciate this information, how can I get in touch with your financial advisor as I am really interested and want to start investing?
Donald Nathan Scott is all over the internet and his fantastic works are leading the way. It's really hard to find someone who is truly honest and genuine in what he does. Reading all these testimonials here, I would say that he has certainly gained a lot of fame. For such a person, who is sincere and good at what he does, we owe him our support and prayers
This is great information, but the key piece of advice that's missing and without which people will still find themselves at a crossroads is this: live below your means. Not, WITHIN your means.. BELOW. A lot of people who rent and don't buy, do so precisely because that's the only way for them to essentially live above their means because they could never afford to buy where they live. So, if you want to have enough slack to cover living costs AND invest, you need to squirrel away those nuts, which you could never do if you're renting at or above your means. With that being said, you could BUY below your means and accrue that equity while still buying what you rent. Can I get an amen?
I like the method of “how do I increase my cash flow to exceed my quality of living and save money?” Rather than “how do I lower my quality of living so that I can save from the cash flow that I have?”
That’s the OLD way of thinking. Increase your means by creating additional streams of income. This creates more positive cash flows.Basically what Robert Kiyosaki says in “rich dad, poor dad”.
I love Grant's content but it shouldn't be general. Why not do both??? You can use your own credit to leverage money in real estate while still buying your home. He is mixing business content with personal content. A home is not an investment it's a purchase. Everything you buy doesn't have to be an investment but you do have to have multiple investments to stay ahead of the curve.
How not? Ok so lets say you are renting. Rent is going up every year. The increase can take away your cash flow.... Lets say you decided to move as Grant suggest doing.... Now you are still interrupting your cash flow (moving expenses etc). My point is everything will cost so being strategic with your capital is the only solution to making more money rather you buy or rent.
PREEMINENCE If you don't move around, it seems just fine to buy. If you're portable like Grant, it makes sense to rent. In some cities, such as London, especially, it makes sense to rent, as rental payments there tend to be vastly lower than mortgage payments. With rent, I like to think I'm paying the current market rate w/constant inflation. Not a good situation unless the flexibility or other factors are benefitting you. With mortgage, I like to think in terms of paying $ in the past. It's like a time machine hack. People bitch about interest, but you're basically freeze framing your investment in past dollars. Every year, heck every day, that passes, you are better off paying things off at yesterday's prices.
This guy is smart..I have learnt a lot.. thanks Mann. Those in here who thinks they already know this they should keep their comments to themselves..if you don't know this saying " plenty meat doesn't spoil a soup".
"God an't giving us any more land"... Investing in property with a good amount of land will be worth more than a unit in the long term... "We're only building up"...
''I promise i'll help you'' - those 3 words got me signed up. I'm subscribing to your channel. And now i need to make the funds and find a 30+ unit property to acquire.
I pay $35,000 a year in rent...my company gives me $35,000 a year as housing allowance (so free rent)...instead of throwing that in the trash, I'll buy the house I'm living in...that way my company is "buying" me a house I'll put the down myself, but the monthly / annual mortgage would be paid through the housing allowance Surely that's better than still renting my house, right?
rent luxury, buy utility. if you plan to live in a reasonable home there is no sense in renting it. But Grant's not talking about the average joe...he's talking about rich people.
its a simple concept people.... if it produces money for you, its an *asset* .... if its losing you more money than it makes you, its a *liability* .... as far as what you really sign your NAME on, you dont _want_ those things to be liabilities... if you feel you must deal with a liability.... then don't sign your NAME on it in a more permanent context... remain free to drop it once its beneficial to you, got it? 👍
@@The_Void_Staring_Back I only shared to say, "...all things are possible." It's the possibilities in life that makes getting up each morning worth while.
It's fairly easy for anyone who can operate a spreadsheet to find out if it's better to buy or rent where they want to live. If you're in a high cost area, it'll probably be cheaper to rent because property speculators will be sitting on houses hoping to build equity. If you live in an area where it costs $2200 a month to rent a house that costs $225K, then it's not going to work out in your favor. I own my house, I'm not a borrower and the equity in my house builds at the same rate as it would with a rental property. Loan+insurance+taxes for a house like mine is about $1300 after an FHA loan. Rent is at least 1 1/2 times that and increasing. I maintain the responsibility for maintenance and improvement, but at the cost difference, that can be folded in. If it costs $600k to buy a house that you can rent for $2800 a month or whatever it may be in some areas, then the situation will be flip flopped. Perhaps the most important thing for people to realize is that everything in life isn't just "always do this" or "always do that". It's important to learn to figure out what's intelligent and do it. My spare dollars are almost 100% equity invested because it appreciates faster than anything else at this point, and it requires me to do nothing. The small percentage of people who don't have enough qualified options to dump money into have tax issues that I don't have. My parents don't believe in the market and bought income producing open land. $1.1MM worth of open land that has made about $45k of income per year on average now for over a decade. It's farm land. after costs and taxes if they sell it (which they're thinking about doing), they'll net somewhere around $500k in appreciation - post tax, plus the income less taxes that they've had each year (average 35k). That makes their annualized after tax return about 5.25% per year. they also needed to have the capital available to buy at that. (actually, the annualized return is slightly lower, I forgot to count taxes on the rent income). If they had invested in something simple like the vanguard total market index, their after tax return would've been about 6.7% per year, and they wouldn't have needed to do anything (they needed to chase non-paying renters for a couple of the last 15 years). That after tax return for vanguard includes the horrid 2008 market year, but they didn't have a current need for cash and would've been foolish to sell. The farm income includes the same dandy period during that time when crop prices were up and rent was up, too. what's the difference between what they have now after investing $1.1MM and what they'd have had if they just stuffed money into the domestic market? About 23-24%. And they haven't found a buyer for the land yet, though they've been trying for 3 years. They could sell the equity fund at any time with a mouse click or a phone call. That 23-24% difference in appreciation is about $570,000. That is, they'd have about $570K more right now in actual value than they would if they manage to sell their farm tomorrow for the ask. They were smart and only bought the land around the farm and sold the buildings to someone else who wanted them, so it is bare land only. What people need to realize about buying OR renting is there's no reason to fall in love with your house. The structure is depreciating. Don't get in over your head and get stupid. the bigger and more expensive the structure, the more the maintenance cost and the higher the depreciation on the actual structure if it remains unimproved.
Grant you said to take smaller steps before you get to the bigger ones. So would a fourplex or fiveplex be ideal for my first investment just to get some experience? Or should I go for more units on my first investment? I also thought about purchasing a duplex because it is only two units.Would a duplex be too small of an investment starting off as well?
Steve thanks for adding that information..I'm sure others have mentioned what may not be covered in this video are what all of this will cost the potential buyer...yes it's great to talk about profit but what about talking about what it takes to get started in investing
40-50 units; to buy that many units though, don't you require millions in capital? Unless that's just the Toronto market? I mean a condo here in the Greater Toronto Area is $200-400K, a triplex even in the outter edge of the GTA is around $900K+ depending. Clarification?
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21 years old just bought my first rental property!
Joseph Petche how much and where?
details man! Im 21 and got my first one with my brother
nicely done!
Joseph Petche Good luck!
Congrats
"rent where you live,own where you can rent to others" brilliant
Explain to me why this is brilliant?
Bigboy123 not. The amount in upkeep, pest contro, Leaks, plumbing, painting, property tax, depreciation renovation, etc, etc, eats you alive
depends on where you live
Why is it brilliant? Think of why you don’t own your own home AND investment properties. Because you don’t have unlimited amounts of money.
Scenario 1:
Montage the home you live in. You put your $30,000 down for the downpayment. You have a debt service of $1500 per month plus about $250 to put toward upkeep. The house doesn’t give you any positive cashflow. You work 100 hours a month just to service that debt.
Scenario 2.
You put that $30,000 into a downpayment on a fourplex, it pays you $3600 per month in positive cashflow in addition to your regular income. Your debt service is $1500-2000 a month, leaving you a net of $1600 more than what you had in scenario 1. You can take that $1600, save it over the next 18 months, and put it as a downpayment on another fourplex. Now you have two properties providing positive cashflow and growing in equity. Now your annual income is $84,000 more than what it was before. In another 18 months, you can take that to $120,000. Sure you have 20-30 years of debt, but you are still cashflow positive, all your expenses are tax deductible, your net worth is increasing exponentially, and you have the choice of being debt free with massive amounts of cashflow for your retirement, or keep building your net worth to pass it on to your kids.
I own 17 rent houses and my own home. I pay $1500/mo on my own home, that includes the mortgage, insurance, and property taxes. If I were to rent this home, it would cost at least $1500/month, and I own nothing. Now granted, I did not include upkeep, but that is a small price to pay for something that will double in value every 20 years or so. Only rent if you are not going to be in the same place for 5 plus years.
The more you know about your customers, the more you can provide to them information that is increasingly useful, relevant, and persuasive
I love you brain
Am definitely stealing this, you are genius 💯
We don’t have to be smarter than the rest. We have to be more disciplined than the rest and Know what you own, and know why you own it
Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk
He who is not courageous enough to take risks will accomplish nothing in life.
There’s people in this world that get it and people that don’t. Not only does he get IT but he teaches it in way that helps others get it too. This is very valuable!
Pls tell me what have you learned from this bs he is spreading, I realy want to know.
I just don't know if people understand what you're giving away for free. Thank you and I will continue to give back everything I learn.
No we don't understand. But hey thanks to you we do now.
Those who don't get wouldn't benefit from it anyway. I definitely am giving back, I was already about that, now I'll just have way more to give. Honestly I wasn't thinking of doing real estate but the more I watch him on how he does it the more I want to get my money up so I can start flipping stuff and investing saving ECT ECT
I think "rent where you live, own where you rent to others" is the most brilliant thing I heard. Makes sense. And thank you Grant for your wisdom. What better way to learn. Than to learn from the beat.
I bought three years ago two bedroom apartment and rented. Now Im hoping next year to buy one more apartment and rent. I’m 33 years old. So hopefully before I’m 50, my goal is to have at least six or seven apartments.. o and i have bought five garages and rented.. so nat bad. Best regards from Europe- Slovenia. G you are awesome 👏
Dylan Cook you are completely right my man.. got too focus my goals on big stuff, at the end, we only have one life. Thanks for speaking out, be safe👈💪
i pay 1700 in rent but make 11,000 a month with 12 properties. I am going to be you one day. i buy two properties a year.
@The Indigo Child 438 what i do is. Build a portfolio with the bank. For example. Lets say i have 500k in the bank. And i bank with wells fargo. And i buy one home in cash for 100k then i find a renter within a month or two. Now that i have a renter and i have a passive income on the home. I go to the bank and refinance it for 150k. So now i have a mortgage but i have a renter that is paying my mortgage and i have more than what i put into the home. I paid 100k got 150k and have a renter paying my mortgage. Now imagine doing that with all the 500k. So your 500k turned to 750k and allthkse five properties are being paid for. (Mind you you still get money from the renters because your mortgage is usually lowers than what a renter pays you) so now that you have 750k in your pocket. You go ahead and now buy 7, 100k properties and the cycle continues.
@@ih8itdotcom so how tf i get 100k loan? Borrow from 401k? Save? What
@@ih8itdotcom I guess you are over 35 at least
Trippy ThaGod use your credit
@@dr.harambe3828 29 🙏🙏🙏
I like this dude. He's just flat out likable. Thanks for the advice.
This is what I do my friends good advice. I own 24 rental properties and rent where I live for the past 12 years.
There were many people like you in 2007 also, they had no properties left in 2009 and personal debt they couldn't repay in their lifetime. Grant makes money selling his content, he doesn't make money in real estate. Just be careful.
49fiori his net was like hundreds of millions before he was on RUclips.
His video isn’t even monetized , ie he makes no money on this video.
Troy Boyd So his formula works with the multi family units?
U live with your tenants
Darius Jones Yes definitely. I have a 4500 monthly in rent however I never spend my own money. My tenants have been paying all of my bills and still profit every month so far. I would advise you live in one of the units of a multi family property and pass all costs unto the renters.
You give the best substantial wealth of free advice being provided online, yield. Thank you.
I don’t consider the bubble will pop. To many people renting which is more secure than mortgages. All you have to do is recycle the tenant instead of wasting a 30 year mortgage. Renting might be the only way forward.
@@RichardWKeys i wish people would realize that your house is only worth what someone will pay for it , not what zillow tell you . People have felt rich because of the housing boom , i see a ,mental health crisis coming in the downturn
@@christopherberends8242 Good investment plan is what we need and many ignore it . think abt it , we do not know how bad this recession will be , what happens when a lot of first home buyers , esp in tech industries , lose their jobs? How long before they cannot afford their mortgage payment? what happens if some jobs don't come back or cannot come back? How many home owners are just getting paid by month to month
@@shariwilson9213 Exactly . I was able to accrue $30,000 in raw proft with the help of my invstmnt pundit " Angela Mae Mcclain " . The truth is , there is ALWAYS a way to make money in this market! While the market has not been set to easy mode recently, there are still nft to flip, solid coins to a stake, IDOs to ape into, trades to make, and yields to farm. Never stop hustling for those gains!
@@sararobert1676 Impressing i think i will need the assistance of your investment Pundit. I just sold my truck and i want the money place on safe investment
I figured this out about a year ago. I sold my house and now have 3 rentals. They cover the money for my rent in a better house and my car payment. My savings will now go into another rental and then another. By the time I get to 10 (which will take me another 5 years, I'll be 43) I'll have around a hundred grand a year in income, which will match my normal income. This strategy works :)
Great post. I've tried to explain this to many people who are brainwashed into believing they need to own a house to get ahead. In reality a home is the biggest debt trap for most people. It holds them down and restricts their options. Once you look at inflation and the market plus the other costs you end up being behind.
Owning homes makes sense when you're renting them out but if you're living in your home you are consuming and not investing it. At best you are speculating that it will be worth more in the future. Which in many cases you don't. That's what people found out in the last crash.
I've made many videos about the great lies of life (school, house, job, etc.) and this is a big one. Great video!
own nothing... control everything!
Ever heard of equity? Or a HELOC loan? Come on now, when you rent you’re basically paying for someone else’s investment which is counter productive to what you’re trying to do when you’re investing in real estate...
Infinite Transcendence when you renting your consuming too..you have to pay to live wether you pay rent or mortgage..
decent self promotion
+Devin
Renting is very convenient, especially with houses...and when you think about it, you take out a 30 year mortgage to buy an overpriced house....for the first 1/2 of those 30 years almost all of your payments are going toward interest not principle, and so you really aren't gaining anything. You only "win" if you are able to pay off the loan before the mortgage note matures OR if you are able to flip it at a profit. Of course, you may end up buying in at the market top and when the home values plummet you're stuck with an upside-down mortgage liability and trapped in a house that you probably won't be able to continue making payments on. Either way, the bank wins and you get screwed over. The system is not designed for plebians to get ahead.
Been following you forever...
All I can say is thank you!
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I'm 51 years old and I have recently been shopping for my 1st single family home...change of plans after watching this. Thank you for the great advice
When I grow up I want to be like uncle GC.
- I am 45 now 😁
Shit!your getting real close to your death at that age,am not saying this to be an asshole,it's a FACT.think about.
Bro don’t try to be like him , be better than him fuck grant
juan Montenegro 36 and literally I call him Uncle GC too ✨😂💪🥳😍😳✨
fuck 45 thats just a number get your shits together
Oh come on everyone he is being funny not serious 😆
Just want to say thanks Grant. I was on a journey to buy my Mum a home in 2 years so we can all have some independence, but after some thought and guidance from you I realised that a) owning a home wasn't the goal at this stage (living independently was, and having to raise a deposit would only further the time to that outcome), and b) that to provide long-term wealth for our entire family it would not be smart to tie up $120-$200k in a house deposit (plus the $30k + per year) and that we'd be much better off investing that to a greater effect and have others pay for our real estate.
I cannot say that this input from you has changed my life (because I haven't done anything of effect yet) , but it did allow me to consider different possibilities, which I strongly feel will give me the opportunity to thank you for changing not just my life, but my family's life a few years down the road.
Thanks for being awesome Grant! 10x
I don’t know about people just watching this for entertainment, but for me this is golden because it’s straight forward, knowledge that has been tried and true and it has costed money , hard experiences , mistakes Grant is the coolest rich guy I’ve heard share knowledge influencing the shit out of my aspirations, watch , I’m up and coming...
Rent where you live, and own where you rent. Great idea
Grant idea
Date who you like, marry who you love.
Vinny Ocean blue pill.
Red pill: never get married, lease many women.
Thé opposite just does not make sense !
Marry a rich orphan farm girl! Lol
EyeWitnessChina marriage is not worth it for women either just a fairy tale
😂😂😂
I agree. I’d rather buy a home to rent it. I’d own what makes me income
That's what I am doing now. I know how it feels. I own 3 units and I rent to 3 people. I live in a place I rent. I making over $2000 profit after paying my 3 units bills and my rent. It feels, I just started real estate investing less than a year ago. Thank God for life and every opportunity he gives me.
Hows it going now?
Love you Grant! I have 2 copies of Richest man in Babylon, started listening to Dan Lock and Dan Pena. But your message seems to be crystal clear logic to me. Now it's 99.9997% chance you wont ever see this message but It's more for me to express my gratitude than anything else.
I read richest man on Babylon 6xs I love this book
jimin kim schmitz in
Huge love and respect from India. You are worthy of Guru. 🙏🙏🙏
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As a home owner, I can tell you, buying a home is not a savings account. You have constant maintenance, break downs, property taxes ($600 a month), insurance ($300 a month). Return on investment is slow. Based purely on Purchase Price vs Current Value, my house value has gone up 12.8 percent per year for the 16 years I've owned it. I've put tens of thousands of dollars toward upgrades and maintenance. I've paid about $10,000 per year for interest. Yeah, buying a home is bullshit. So if you sell and you think Ok, I'm selling for $350k, I bought for $220k, I made $130k. No, you didn't. Subtract all those things I mentioned above and you find you didn't make half what you think.
Maker Mark Damn that sucks.
I gave up my American Dream when the broker showed me the numbers and see how little will go to my side at the end so instead I decided to continue buying cash properties overseas
I’ve owned my house for last 5 years and I’ve never felt better to own my piece of land. It’s just peace of mind. I’ve also felt very confident and grown up having a place of my own. Trust me you’ll like it when you own. Just be responsible.
We never truly own anything. We pay all kind of taxes and ridiculous expenses. But I don't disagree with You.
@@shawnbruce6934 Ain’t that the truth? Don’t be somewhere where the property taxes are insane!
For others, it's a burden, due to the costs of upkeep (taxes, maintenance, insurance) and the fact that it prevents you from readily moving if you want to. Ultimately I think the decision to own/rent comes down to lifestyle choices moreso than financial.
There is a valid reason why you have 1 million subscribers and you just earned one more
My man!
I buyed a house with 3 apartments and now I renting out 2 of them. so I live in my own home for free. Thanks so much for your advice, I think my next goal will be something much bigger. but we all have to start somewhere.
Good Morning Good Afternoon and Good Night Lol 😂
Uncle G. Hats off to you man. I love the rags to riches, The come back kid stories. I’m so glad I became part of your community.
I thought he's 35y old and i check up hes 61 wtff. And then i see he's birthday is same as mine, thats a good sign.
I think I've found a mentor.
He’s not a mentor though. What Grant is doing here is monetizing his knowledge! If you want a true mentor find someone in person who is where you want to be in life and ask them for advice. Grant doesn’t have a vested interest in you. What I mean by that is he doesn’t care about any of us individually. On RUclips, he cares for us as a whole because when we show up to watch his videos, we are making him money. Of course his videos bring us all value but he’s not a mentor!
Not hating, I love Grant. There’s just a lot of misconception with mentorship out there. Hope I didn’t offend anyone by trying to clarify.
@@2doorduude Salute to you for being honest and showing common sense on RUclips!
Jeff Berwick is your new idol. Do what he says and you will have it all .
then you've been played by a salesman
Not only a mentor, a walking inspiration
I stumbled across your video with Steve Harvey around 10am and it’s now 12am the next day. I swear you are a God send to me!
I had a buddy in Rochester MN that bought and owned rental property before the Real estate bubble burst a decade or so ago. He actually sold all his property just before the collapse, but he said the same thing. No single family dwellings, ever, period. He didn't even like duplexes.
As a guy who comes from four generations of property development, bought my first home at 18, also have my own property development company, I can easily say, BUYING PROPERTY IS THE BEST INVESTMENT, YOU CAN MAKE.
Just make sure you know the price average for the area so you’re not buying at a high price.....
58 units later still going baby! I watched this video 4 years ago when I only had like 12 and just keep blowing up!!! Watching again 4 years later and man so many things you said came to be truth !
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Great video 👏🏼
Living in France, unfortunately only bought single family units so far but will be looking into multi unit family because I completely agree with Grant Cardone. He is a visionary, even when he said that office spaces will be disrupted, 3 years after the video with the pandemic crisis we are in, and home office work increase, we can see that he was totally right.
never heard of you bro, but excellent message. I've been a real estate investor 25 years myself, very few people know this strategy. Let others pay your living expenses.
...While you provide them for a place to live...
Enjoy your concepts. Although I reside in Great Britain your thinking is relevant to the environment here. In terms of buying, the rents in this country are rising exponentially, therefore, it is cheaper to have a mortgage, when I say cheaper I mean the mortgage repayments are considerably less than paying rent. In terms of buying property to rent, the laws in this country penalise landlords financially, therefore, most of them are now in negative equity and broke with property hanging around their necks on which they are still paying mortgages. The best investment here, currently, is purchasing commercial property which returns far greater profit than almost anything else. Thanks for your excellent input... much appreciated.
I love Grant! Always going against the grain, yet continues to make perfect sense. I just love him!
I absolutely love this. Wish college would have taught me this.
Wish high school would’ve taught me this
Never 😂
Cardone university bro
They are here to TAKE your money and to enslave your mind not to Teach YOU!
If it did we would all be rich
This idea will work not only with Real Estate, say a photographer, wanting to take great pictures, he (I) could get enough people to deposit a refundable fee for their photo session, use their money to rent great kit and so on...Thanks Grant, a real eye opener and makes so much sense!
Love it, Grant. I'm selling my townhouse for 550. Owe nothing on it and get 2500/mo. I plan to invest in multi family with money. Than you for inspiration!
did u ever?
@@jaredtheboss I ended up changing my mind and keeping my townhouse renting it for $2600/mo. Think its a great passive income. I'm considering on selling my house to move to Florida, possible rent or downsize. A bit uneasy because I feel a housing crash is coming. Not sure what is the best direction atm.
@@pennypincher7383 may i ask what ur purchase price was..was it cash..how much mortgage debt and how r u cash flowing....im 25 have 60k in cash...and im so hungry to do my first deal..either a sfr or a condo 2bed 2 bath to rent.....i have heard many ppl said its gonna crash and to be cautious ...depends where u live...im in NY and its pure shit...floridas beautiful....it all depends..where u at
@@jaredtheboss my townhouse sits right outside Boston. I bought it for 350 and paid it off almost 6yrs ago. Currently, I can probably sell it for the amount mentioned above. I have a house that I bought for 600k putting down 20%. The value is now over 800 and I owe 400k. I visited friends in Tampa, Florida back in April and absolutely loved it there. I'm actually going back next month for a little over a month to get the feel of living there which is why I'm considering of relocating. Should I wait to move and see how the market turns out?
It depends on location where you buy. For example in Paris, buying an house has no sense. You can rent much cheaper than you would pay to the bank.
Who owns the house or apartment then? Somebody must be the owner...
I’ve been binge watching you all night & I got work in 3 hours , it was definitely worth it though
“Office spaces will be disrupted” - Welcome to 2020
GC is a visionary
What did he know then... lol
he knew market dropping then. hope u well js.
Yep it was going to happen anyway with teleworking etc covid just speeded things up.
You give the greatest wealth of free advice being offered online, Grant. Thank you.
if you have a steady paycheck you can loan from the bank for youre credit to invest
528 dislikes are people bought homes
Lol
Haha yes
The exact reason of buying a house is for people like him to pay it off as he moves around.
Or people that don’t understand.
Or want a home to retire in
really happy that I found this before I really get into the important years of high school so I can try to plan better.
Props to you for learning this young. & Real education comes outside of school.
Hi from Germany, i love your videos, and charge my self from your videos. will become a REAL STATE on day 100%
Buy a small duplex.
Live in one side, rent the other.
Or a B & B maybe.
Debbie Hahn I bought my duplex in October of 2008 and I'm still in it because the rental income and the tax write-off's gave me the cushion to take financial hits.
Think a little bigger
That's a way to start
1) You do not want to live by your tenants. You want to manage less, not more. More face time is more problems. Ideally with scale you hire someone else to manage.
2) You miss out on the rental spread by doing this. If you are good at renting your units you can rent them for above market rates and then you rent from a landlord who sucks at advertising / is lazy and you rent for below market rate.
When you're first starting out, every bit of spread makes all the difference.
Yea I had a friend you had a three bedroom unit and was living for free because 2 other tenants where paying it off plus some more
I'm glad I saw this. I've had it wired in my head that I NEED to buy a house and live in it. Thank you for sharing your experiences and wisdom!
You changed my view on one family houses versus apartments. Thank you for that sir
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Annnnnd I'm now a Grant Cardone follower! WOW! Can't wait for Monday's even more now!
Marshal P. Gillen don't hold ur breath
Robert Kiyosaki made me realize this. I'm looking for a 4 unit to live in one and rent out 3 within the next 12-18 months. I don't plan on buying a house until I'm 40 at the earliest
RapperGeek Media LLC That's a good plan from a meta perspective, but details on the ground make the difference. If you're going to live in one, it better be an especially nice unit. Remember, many multiunit dwellings were not designed for high achievers. Make sure you get a trained microbiologist to inspect it to ensure that it's a healthy environment w/o unusual mold growth or anything else that can strip your health away. Make sure it has good airflow and air exchange, too, or improve the unit so it does. Mycotoxins kills, but plain old CO2 accumulation destroys productivity.
Improver thank you so much for this advice I will definitely keep this in mind
P Flaquer when you live in a property and rent out a part of it
Kristoffer Santucci yes thank you!
@Improver ....what?
Some of the best advice I’ve ever heard..
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Yes, I definitely will stay tuned, after I bought my first home and watching a lot of documentaries realizing the "American dream" is a scam, I never looked at life the same again, but renting a home never crossed my mind, but everything you're saying DOES make sense/ CENTS
UNCLE G, JUST WOW.
You The Man.
You said it all
Persia Shoar hell yeah Utah SLC 801
I learned from this man the miracle words of "leverage" (thanks Cardone. I will always be in debt with you).. Thanks buddy. Leverage. Cardone use a lot of leverage, specially using Syndicate money. You guys can do that to. If you live in the USA I can tell you that there's like 1500 federal, state and local programs for investors were you can buy properties with minimal down payments. For example, I bought a 10 unit condo for $1 million dollar (distressed condo) and only had to put $10,000 because a Federal program called Hack. When you hack a building, you only have to put 3,5% down payment or $35K in my case. I borrowed another $25K from family. The only condition is that you have to live in one of the unit for at least 12 months. I then asked for another federal program called $203K, which is a loan to rehab the property. After I finished the rehab I raised the rent on the units and 12 months later I refinanced the property taking out over $350K tax free and lowered my mortgage which means more cash flow to me. In Multifamily your property is valued by the income, not by comps like residential RE. So if you raise rent, say $400 buck a month x 10 units is a extra $4000 or $48,000 a year. That's mean your building appreciated $450,000 at least just by rising the rent. Once you have a few successful deals under your belt, then its when thing gets funny. You then can syndicate the loans. Loan Syndication is when a group of banks or investors put money to lend you for a large multifamily property.
In the USA at least, there's like 200 ways to buy properties way under the market value. The beauty of Real Estate in the USA, Is that there's like a gazillion tax breaks. I don't thinks that any other industry have so many tax breaks like the RE industry in this nation. I know a couple making $500K a year in cash flow 100% tax free.
PD: I just got My second multifamily property this year. A great 6plex outside Miami. It was a steal.
Coming from the man who makes the bulk of his wealth from renters (4000+Rental Units). Keep in mind, this works for some but not all. You must do what's practical.
James S
What kind of personality or skills does it take to make it work?
Always gives great advice, down to earth guy.
Hey...are u spying for Dave Ramsey??? LOL just kiddn. I love listening to em both. After I listen to Dave I know I did things the right way according to him but it took 30 years and when I listen to Mr. Grant I feel like I can conquer the world and whoop my weight in wildcats. LOL he's very inspirational. GB
Grant I am the same guy you started out as. I know nothing about Real estate. I watch tons of vidz and have read 2 books. Good info from everyone however your 13 minute video has been invaluable to me about multi fam homes. I sold my house that was paid in full and now rent. On my way to learning the journey. Excellent vid and very motivational. Thanks and keep the vidz coming. New subscriber. Rocky
How did you jump from one single family home to 38 units ?
One of the most detailed and thoughtful GC videos, thank you!
I think this definitely makes sense if you are someone who wants to live in multi million dollar homes, BUT if you are happy living in normal houses, the cost of renting is much higher than owning unless you plan on moving in less than 3 years. Although, it is a good idea to buy a rental home before buying a house to live in, or like has been said by others, by something to live in with other renters.
Thanks man, I really enjoyed this and I will be watching you closely from now on. I like how genuine you are and I trust you. Great job!
This advice isn't for everyone. That needs to be said.
Ange Goueti great point.
Ange Goueti he already said it..
Why? It should, I'm not seeing anyone where this wouldn't apply...
Cut de Pie Fails ayy cut de pie fails ,how you been
Yeah, not for those who wanna be broke.
Yes indeed! Thats wiser to rent the place you do live in, and use the cash to invest in a property thats generates a passive income.
Grant I really liked this video! That backround captures more and better attention! Also the sound of nature!
Entrepreneur Talk ayyyyyyyyy
i pay 850 for a mortgage, a decent place to rent where i live is about 1300. I want to sell my house but i cant afford the rent
thats how it is everywhere it seems
Living room Legend then just rent out your house for 1,300 making a 450 monthly profit ( put that towards ur new rent) and then refinance and pull the equity out ( since u want to sell it anyways) and use that money to buy your units.
Living room Legend Personally, im thinking of building a separate living area on my property to rent out. Then use the extra money for other units. Gotta start somewhere.
Premium fuel only Damn you aren't in CA that's for sure! It would be hella illegal for me to do that
Premium fuel only, Great Idea. And put a 31 ft camper in driveway too.
This is the best advise ever, .....glad I saw this. You've got my Sub
Buy a house for 100k (example)
invest in your house (modernize your house)
wait 1 year for the house to be more qualified in the market
sell of the double or the triple
income !
Yeah, not until the market crashes...that's called speculation and few can
or turn it into rent for cashflow
"did I mention i have many places for you to rent?" - GC
Hud ✨😂💪💯✨
New listener, love the content. A hungry young buck like myself appreciates the insight!
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I got mine when I was 20 years old, but with the help of family. Teamwork is key to success.
Same here, my family is my bank with no interest
"My first purchase was that single family residence, and my second purchase was the 38 units" lmao quite the gap there buddy
C V Yes, and for only the $4,000 he said he scraped together for the first place, he then sold & broke even. A 38 unit property deal for $4,000. (8:30 for those looking).
He obviously meant broke even by selling the house for the same amount as the loan he got when he bought it. Also he sold several years after he bought it so he didn't buy a 38 unit property for $4k. He bought a 38 unit property with 3-4 years worth of savings plus whatever equity he had in the 70k house that he got back when he sold it. Think a little before posting.
His first 38 door rental he bought was 800k
THANKS! I was thinking and had the same logic that you're preaching instead of listening to my peers and buying a single house and waiting for the equity. But my logic was that I'm bound to it monthly like a ball and chain (on a larger scale). Your explanation just solidified the trust I have in MYSELF. THANK YOU!
After I watched this video...I realized I also made a mistake bought my first 'single family investment'
Thanks a lot, now I know what to do
*There's no shortcut to getting rich, but there are smart ways to go about it. I realized early in life the importance of investing for financial independence and have invested with great returns working with a professional*
I've always been fascinated with investing and as such would appreciate some help on how to go about it without incurring a loss. Can you share the investments you have made and your experiences with them? Thanks.
@@ryanphilips4808 I engage in prolific investments such as:- real estate, NFTs, crpto and stocks and through proper advice and management by a licensed financial adviser (Donald Nathan Scott), I achieved good returns on investment. For a better investment experience work with an expert . That’s just my advice.
@@alicemuller9386 I appreciate this information, how can I get in touch with your financial advisor as I am really interested and want to start investing?
@@ryanphilips4808 Just make quick internet search with his name *Donald Nathan Scott* to get in touch and write him ..
Donald Nathan Scott is all over the internet and his fantastic works are leading the way. It's really hard to find someone who is truly honest and genuine in what he does. Reading all these testimonials here, I would say that he has certainly gained a lot of fame. For such a person, who is sincere and good at what he does, we owe him our support and prayers
Excellent video. A +. A knowledgable, and helpful man. I like a simple explanation with good examples.
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This is great information, but the key piece of advice that's missing and without which people will still find themselves at a crossroads is this: live below your means. Not, WITHIN your means.. BELOW. A lot of people who rent and don't buy, do so precisely because that's the only way for them to essentially live above their means because they could never afford to buy where they live. So, if you want to have enough slack to cover living costs AND invest, you need to squirrel away those nuts, which you could never do if you're renting at or above your means. With that being said, you could BUY below your means and accrue that equity while still buying what you rent. Can I get an amen?
Kenyada Meadows Increase your means :-)
I like the method of “how do I increase my cash flow to exceed my quality of living and save money?” Rather than “how do I lower my quality of living so that I can save from the cash flow that I have?”
Nomen
That’s the OLD way of thinking. Increase your means by creating additional streams of income. This creates more positive cash flows.Basically what Robert Kiyosaki says in “rich dad, poor dad”.
Grant Cardone is going to single handedly cause the next real estate crisis.
He's a plant.
SoulStarSoul What is that exactly?
He just gave us for free what most YT and IG "investors" charge for. This is my first Cardone video and I'm sold. Much appreciated.
Can you show us what some of these multi-family homes look like or the types of areas we should be looking at?
Grant, fill in the gap between 1 abd 38 units? And, love the advice.
Thank you for helping people, Grant!
Text, More insight ☝️☝️on BTC, XRP, NFT📊REAL ESTATE 🏡 INVESTMENT!
Best thing is to simply life. “If you have a car you have car problems, if you have a goat you have goat problems”. Buddhist philosophy.
If I don't have money, I still have money problems.
Jason Tran mo money mo problems by notorious Big. 😂
I love Grant's content but it shouldn't be general. Why not do both??? You can use your own credit to leverage money in real estate while still buying your home. He is mixing business content with personal content. A home is not an investment it's a purchase. Everything you buy doesn't have to be an investment but you do have to have multiple investments to stay ahead of the curve.
Cuz u can keep buying multi-P to rent and raise the cash flow. Until someday u can pick any house to live in
You can still do both if you are smart and know the power of leverage.
still, u cant get the same cash flow doing both
How not? Ok so lets say you are renting. Rent is going up every year. The increase can take away your cash flow.... Lets say you decided to move as Grant suggest doing.... Now you are still interrupting your cash flow (moving expenses etc). My point is everything will cost so being strategic with your capital is the only solution to making more money rather you buy or rent.
PREEMINENCE If you don't move around, it seems just fine to buy. If you're portable like Grant, it makes sense to rent. In some cities, such as London, especially, it makes sense to rent, as rental payments there tend to be vastly lower than mortgage payments.
With rent, I like to think I'm paying the current market rate w/constant inflation. Not a good situation unless the flexibility or other factors are benefitting you. With mortgage, I like to think in terms of paying $ in the past. It's like a time machine hack. People bitch about interest, but you're basically freeze framing your investment in past dollars. Every year, heck every day, that passes, you are better off paying things off at yesterday's prices.
This guy is smart..I have learnt a lot.. thanks Mann. Those in here who thinks they already know this they should keep their comments to themselves..if you don't know this saying " plenty meat doesn't spoil a soup".
"God an't giving us any more land"...
Investing in property with a good amount of land will be worth more than a unit in the long term...
"We're only building up"...
Thank You Grant! This video really opened up My Eyes.
''I promise i'll help you'' - those 3 words got me signed up. I'm subscribing to your channel. And now i need to make the funds and find a 30+ unit property to acquire.
You need help if you think that's three words.
@grantcardone will you please do a Monday episode about deferring the taxes? Thanks!
Jon Mitchell he is referring to the 1031 Exchange when exiting the deal and acquiring a new property. You should talk to your CPA about it.
Jon Mitchell @grantcardone I'd love that deferring taxes episode as well.
I pay $35,000 a year in rent...my company gives me $35,000 a year as housing allowance (so free rent)...instead of throwing that in the trash, I'll buy the house I'm living in...that way my company is "buying" me a house
I'll put the down myself, but the monthly / annual mortgage would be paid through the housing allowance
Surely that's better than still renting my house, right?
The TT what company do you work for ?
Yes its better. You can still save and buy other investment properties too
rent luxury, buy utility. if you plan to live in a reasonable home there is no sense in renting it. But Grant's not talking about the average joe...he's talking about rich people.
its a simple concept people.... if it produces money for you, its an *asset* .... if its losing you more money than it makes you, its a *liability* .... as far as what you really sign your NAME on, you dont _want_ those things to be liabilities... if you feel you must deal with a liability.... then don't sign your NAME on it in a more permanent context... remain free to drop it once its beneficial to you, got it? 👍
Like dating and marriage. 🎯
@@CradleEpiscopalian56 haha yea... but thats a MUCH more extreme example.... I'd sign a 30 year mortgage over saying "I do" any day of the week lol
@@The_Void_Staring_Back I only shared to say, "...all things are possible." It's the possibilities in life that makes getting up each morning worth while.
Yo I love this video lol I am going to do this !!! And it is done in Jesus name!!!
Amen you got this
Amen
Amen brother
Have you done it? Terence King
It's fairly easy for anyone who can operate a spreadsheet to find out if it's better to buy or rent where they want to live. If you're in a high cost area, it'll probably be cheaper to rent because property speculators will be sitting on houses hoping to build equity.
If you live in an area where it costs $2200 a month to rent a house that costs $225K, then it's not going to work out in your favor.
I own my house, I'm not a borrower and the equity in my house builds at the same rate as it would with a rental property. Loan+insurance+taxes for a house like mine is about $1300 after an FHA loan. Rent is at least 1 1/2 times that and increasing. I maintain the responsibility for maintenance and improvement, but at the cost difference, that can be folded in.
If it costs $600k to buy a house that you can rent for $2800 a month or whatever it may be in some areas, then the situation will be flip flopped.
Perhaps the most important thing for people to realize is that everything in life isn't just "always do this" or "always do that". It's important to learn to figure out what's intelligent and do it.
My spare dollars are almost 100% equity invested because it appreciates faster than anything else at this point, and it requires me to do nothing. The small percentage of people who don't have enough qualified options to dump money into have tax issues that I don't have.
My parents don't believe in the market and bought income producing open land. $1.1MM worth of open land that has made about $45k of income per year on average now for over a decade. It's farm land. after costs and taxes if they sell it (which they're thinking about doing), they'll net somewhere around $500k in appreciation - post tax, plus the income less taxes that they've had each year (average 35k).
That makes their annualized after tax return about 5.25% per year. they also needed to have the capital available to buy at that. (actually, the annualized return is slightly lower, I forgot to count taxes on the rent income).
If they had invested in something simple like the vanguard total market index, their after tax return would've been about 6.7% per year, and they wouldn't have needed to do anything (they needed to chase non-paying renters for a couple of the last 15 years). That after tax return for vanguard includes the horrid 2008 market year, but they didn't have a current need for cash and would've been foolish to sell. The farm income includes the same dandy period during that time when crop prices were up and rent was up, too.
what's the difference between what they have now after investing $1.1MM and what they'd have had if they just stuffed money into the domestic market? About 23-24%. And they haven't found a buyer for the land yet, though they've been trying for 3 years. They could sell the equity fund at any time with a mouse click or a phone call.
That 23-24% difference in appreciation is about $570,000. That is, they'd have about $570K more right now in actual value than they would if they manage to sell their farm tomorrow for the ask. They were smart and only bought the land around the farm and sold the buildings to someone else who wanted them, so it is bare land only.
What people need to realize about buying OR renting is there's no reason to fall in love with your house. The structure is depreciating. Don't get in over your head and get stupid. the bigger and more expensive the structure, the more the maintenance cost and the higher the depreciation on the actual structure if it remains unimproved.
how did you go from one single family home that sold for 78k to 38 units???
He stored his money until he could afford to get in the game.
He got rich off of his sales job before hand
Grant you said to take smaller steps before you get to the bigger ones. So would a fourplex or fiveplex be ideal for my first investment just to get some experience? Or should I go for more units on my first investment? I also thought about purchasing a duplex because it is only two units.Would a duplex be too small of an investment starting off as well?
Steve thanks for adding that information..I'm sure others have mentioned what may not be covered in this video are what all of this will cost the potential buyer...yes it's great to talk about profit but what about talking about what it takes to get started in investing
40-50 units; to buy that many units though, don't you require millions in capital? Unless that's just the Toronto market? I mean a condo here in the Greater Toronto Area is $200-400K, a triplex even in the outter edge of the GTA is around $900K+ depending. Clarification?
Steve thank you for your advice. The information you provided me has helped me out tremendously.
Michael Leonard thank you for your advice. Your advice has also helped me out with some basic steps in regards to renting out property.
LOL you can just lie and not owner occupy haha, grant did it