6 Secrets To Becoming A Real Estate Millionaire, According To Grant Cardone – Yahoo Finance
I recently had the opportunity to talk shop with real estate mogul Grant Cardone and couldn’t pass up the opportunity to find out his top secrets to success in real estate investing.
About Grant Cardone: Cardone is the founder and CEO of the private real estate investment firm Cardone Capital. He’s also a bestselling author, public speaker, sales coach and star on season two of “Undercover Billionaire.”
While Cardone built his fame through his bestselling business books and sales courses, he created most of his wealth through real estate investing. Below are his six secrets to becoming a real estate millionaire.
1. The deal is more important than anything. Most people chase the wrong thing first. First is the deal, then debt and then equity or cash. Find the right deal and the debt and equity will always follow. Investors and lenders will always line up for great real estate.
2. Never compromise location. I would rather pay extra for a great location over a great building. You can always fix the property, but you can never change the location.
3. The number of units is the most important number in real estate. Most people start too small. While it may be easier to buy one or two units, it’s harder to make money on smaller deals. 32 units is easier to manage, and make money on, than four units. Most people don’t know this until they’ve been worn down by a bunch of small deals.
My first multifamily deal was 48 units. I put together the down payment from friends and family and I made almost $5 million.
4. Look for properties where rents are below market and can be raised $200. In every market across America, you can find properties where the rents are below market. This is most often an owner who has been invested for a long time. They may be scared to raise rents or don’t need to because their cost basis doesn’t require it. Increase the rents and you immediately increase the value.
5. If it doesn’t have cash flow, say no. Cash flow is the holy grail of real estate investing. Positive cash flow can get you through down markets. And it’s just a matter of time before rents go up. As rents rise, so does cash flow. The more cash flow there is, the more the next buyer can pay for your property.
6. Lastly, know your market cold. Confidence is the most important quality of a great investor. Without total confidence, you won’t pull the trigger. By knowing your market, local economy, jobs, rents, occupancy, expenses, tenants and income levels, you gain the confidence you need to be decisive.
Cardone’s Final Word on Real Estate Investing: I have been investing in real estate for 30 years and have never lost money on a deal, and I’ve made a lot. I started with $3,000 and today have 10,000 units that have average rents of $1,850 a month. You do the math.
Image: Courtesy of Grant Cardone
This article was originally published on August 11, 2021
More on real estate investing:
Transcendent Electra Launches Private Equity Offering For Portfolio Of 101 Single-Family Rentals
Investors Are Buying Up More Than 25% Of The Available Homes In These Markets
Jeff Bezos Increases His Bet On The Single-Family Housing Market
See more from Benzinga
These Under-the-Radar Investments Are Producing Record Breaking Returns
Have $100 To Invest? Here Are 3 Ways You Can Start Investing In Real Estate Today
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
David Trainer, the CEO of the investment research firm New Constructs, believes there are now roughly 300 publicly-traded zombie companies.
Leaving these accounts open could tarnish your golden years.
The bear market in software stocks has already lasted far longer than the typical decline, according to MoffettNathanson,
Dish claimed Disney wanted nearly $1 billion more to extend a contract that has now expired.
Sheryl Sandberg recently stepped down as Meta COO, but the company will continue to pay for her personal security through June 2023.
Inflation, interest rates, and recession – these are the bogeymen of investing, and they’ve been watching over our shoulders for the past several months. We all know the story by now, the rate of inflation is running at generational highs, the Federal Reserve is hiking rates in an attempt to push back against high prices, and that’s likely to tip the economy into recession. At a time like this, investors are showing a growing interest in finding strong defensive portfolio moves. It’s a mindset t
It didn't see a market for single-player games anymore, according to 9to5 Google.
Welcome back to Week in Review, the newsletter where we quickly sum up some of the most read TechCrunch stories from the past seven days. Elon's texts: As part of the ongoing Musk vs. Twitter trial, a big ol' trove of Twitter-related texts between Elon and various key figures/executives/celebrities has been made public. Interpol issues a red notice for Terra's founder: "Interpol has issued a red notice for Do Kwon," write Manish and Kate, "requesting law enforcement agencies worldwide to search for and arrest the Terraform Labs founder whose blockchain startup collapsed earlier this year."
MarketWatch Picks has highlighted these products and services because we think readers will find them useful; the MarketWatch News staff is not involved in creating this content. Since the start of the year, mortgage rates have been trending upwards — and according to many experts, this trend will likely continue through October. Echoing that sentiment, Kate Wood, home expert at NerdWallet, says interest rates for 30-year fixed-rate loans appear to be staying over 6% and products like the 15-year fixed and the 5-year ARMs are averaging over 5%.
While it's true that rivals like Geforce Now and Xbox Cloud Gaming presented entrenched competition, and that Google knows next to nothing about gaming, the main trouble — as with most of its products these days — is that no one trusted them to keep it alive longer than a year or two. It really is that simple: No one trusts Google. It has exhibited such poor understanding of what people want, need, and will pay for that at this point, people are wary of investing in even its more popular products.
Shares of Annaly Capital Management (NYSE: NLY) were among the losers this week as rising mortgage rates threatened to squeeze the mortgage REIT, and one analyst expressed caution on the stock. The company also executed a reverse stock split at the beginning of the week. Since the rate hike, which came with hawkish commentary from Fed Chair Jerome Powell, investors seem to believe the risk of a recession has grown, as well as the likelihood of a sustained high-interest-rate environment.
Google will formally reveal the smartwatch and the Pixel 7 lineup on October 6th.
Semiconductor stocks have tumbled in recent months amid flagging demand, with the S&P Semiconductors Select Industry Index dropping 36% year to date. Bank of America analysts recently discussed their favorite choices in the sector.
It should be obvious that billionaires don’t accumulate wealth by accident. Their success is predicated on observation and savvy investment, and a privileged background helps. Billionaires like Microsoft Corp. co-founder Bill Gates likely saw an opportunity for land investment to return tenfold, by way of food shortages, well ahead of time. So it should be no surprise that the real estate investing platform Arrived Homes, backed by Amazon.com Inc. founder Jeff Bezos is taking off. He had the for
It's a tough S&P 500 stock market to make money on. But some investors are still finding a way to do it.
Overwhelming bearishness means stocks are reflecting "draconian earnings,” says David Baron of Baron Focused Growth.
The Dow is at bear market lows. Tesla showed off a limited Optimus robot at AI Day. China EV makers reported sales with Tesla on tap.
(Bloomberg) — Mohamed El-Erian has a cautionary word for anyone anticipating an end to interest-rate increases from the Federal Reserve and other central banks.Most Read from BloombergMacKenzie Scott Files for Divorce From Science Teacher HusbandMarjorie Taylor Greene’s Husband Files for Divorce After 27 YearsTop Apple Executive Is Leaving After Making Crude Remarks in TikTok VideoMeta to Cut Headcount for First Time, Slash Budgets Across TeamsWalmart, CVS Face Suits Blaming Common Painkiller f
States are stepping in with financial aid as White House remains silent on new round of federal funding.
Billionaire investor Stanley Druckenmiller sees a “hard landing” by the end of 2023 as the Federal Reserve’s aggressive monetary tightening will tip the U.S. economy into recession.