Middle ground between Grant Cardone and BP
Rental Property Investor · Boston, MA · Member since 2017 · 241 posts · 135 votes
Middle ground between Grant Cardone and BP
Most Popular Reply
Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
9yFind your path.
I ended up in somewhat of a hybrid, but probably closer to the BP side and went to 141 units in 7 years, and adding more next month (7.25 years). I started with regular deals and they kept growing in size.
GC and his book the 10X rule has some good stuff, but stuff I don't like/agree with either. If you go all in on what he's saying there's a good chance you end up like this example in the book The Subtle Art of Not Giving a F$*k:
"It’s true, caring is what’s got us all f$*ked up. We care about the wrong damn things. For example, in the book, Mark talks about a guitar player who got fired from his original band. The guitarist vowed to become a rock legend. He filled stadiums, sold millions of records and won numerous awards. Yet, later in his life, when he was interviewed, he tearfully claimed his life was a failure.
That guitarist was Dave Mustane from Megadeth and the band who fired him was Metallica. Although to you and I, Megadeth was a huge success, to Dave, they were never Metallica. See, Dave gives a f$*k about the wrong sh*t. He gave a f$*k about how big Metallica was. Instead, he shouldn’t have given a f$*k and f$*king enjoyed the f$*k out of what he was f$*king doing. "
Read Rich Dad Poor Dad, BP, 10X Rule, The Subtle Art of Not Giving a F$*k, Think and Grow Rich, and get The Daily Stoic... then figure out your path, and learn to be happy at wherever you're at.
64 Replies
- Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes9y
I know I'm being lazy here by asking and not looking it up, but you guys seem to all know who this guy is.
How many apartments does he own? Does he share what his free cash flow # is a month or how many units he owns?
I'm sure he does well but sometimes the 'quiet' guys are the ones really doing it and mkaing a killing. Where as the 'popular guys' (begging for IG followers like a Kardashian) are just going for those social media dollars.A good friend of mine, that I met in this business, got to about 2,500 units (as owner, not syndicator) and an ungodly amount of income a month. He sold most (still as about 800) as he wanted to sit on cash as he feels a huge correction is coming. But anyway. This is a guy that owns more than 99% of the people and likely more than 90% of the "investor celebs" like GC
- Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes9y
@Cody L. Some stats from his website below.
I don't know too much on the details of his business..but I think he is more of a syndicator.
The thing with Cardone is that he sells sales/coaching programs and also has a University.
So his image as a big time investor is important in selling his programs,etc.
I heard him say on his BP podcast that he puts the money he makes in his primary business back into real estate.
I'd definitely put him in the 'lifestyle entrepreneur' category.
---Source:
https://cardoneacquisitions.com/
Company Statistics
- Current portfolio valued at $566M of income producing multi-family properties.
- Almost four thousand units under management.
- Two thousand units under LOI or in the underwriting stage.
- The group shops hundreds of deals each month throughout the US.
- Average ROI has exceeded 100% on over 22 consecutive transactions.
- Primary investment focus is value-ad income producing assets and positive cash flow.
- Group has been involved in over $750,000,000 of transactions.
- The group has operated in varying economic conditions proving able to navigate in all environments.
- Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes9y
Originally posted by @Cody L.:
I know I'm being lazy here by asking and not looking it up, but you guys seem to all know who this guy is.
How many apartments does he own? Does he share what his free cash flow # is a month or how many units he owns?
I'm sure he does well but sometimes the 'quiet' guys are the ones really doing it and mkaing a killing. Where as the 'popular guys' (begging for IG followers like a Kardashian) are just going for those social media dollars.A good friend of mine, that I met in this business, got to about 2,500 units (as owner, not syndicator) and an ungodly amount of income a month. He sold most (still as about 800) as he wanted to sit on cash as he feels a huge correction is coming. But anyway. This is a guy that owns more than 99% of the people and likely more than 90% of the "investor celebs" like GC
There are plenty of dudes who own more than Cardone or Trump or many others like your friend. They don't act like middle school yard blow hards. No one knows their names or really named publically unless actually needed usually. You will find mostly anyone going hardcore public is in search of opm one way or another.
- Houston, TX · Member since 2013 · 58 posts · 7 votes9y
I'm in a rush at the moment and don't have time to read everyone's comments, but all I can say is this. When my buddy first introduced me to GC, I watched a couple of his youtube vids and thought he was a bit of a classless jackass. But something brought me back to him, perhaps just his salesmanship or his growing omnipresence. I eventually purchased his audiobook "Be Obsessed or Be Average." I've listened to it five times. For me his message has seriously resonated, and, without exaggeration - living by those tenets has not only changed my day to day life, it has change the trajectory and scale of my ultimate potential.
I think in 10X now. I try to do everything in my life in 10X.#boba
- Ottawa, KS · Member since 2017 · 3 posts · 0 votes9y
I like what @Matthew Olszak is thinking here. Grant is pitching the shift in mindset. That shift can have some powerful results it seems (looking at you @Austin Fruechting).
The part of GC's real estate strategy I don't like is he isn't a buy and hold investor like @Elbert D. said. Not the way I understand it anyway.
He advocates huge multifamily properties, rehab to a minimum (spend to improve curb appeal) and raise rents - and use an interest only loan to collect the cash flow. 5 year balloon payment so he is forced to sell or refinance. I have listened to his podcast/radio show plenty and don't think I ever really hear him talk about anything other than pulling the cashflow from the deals.
Without principal reduction - is he really using the normal buy and hold method?
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes9y
@Brady Keim I don't listen to GC at all about his real estate strategies - in fact I don't listen to anyone on how I should invest my money because every situation (like mine) is unique. He's a great sales coach and that's what is of value to me. Those sales concepts can directly be transferred to the way I manage my real estate goals however.
- 9yJordan MoorheadBusiness MemberReal Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
I think this all just boils down to what you want as a person and what your goals are. I listen to GC all the time, think he's hilarious and am even going to his conference next fall but not everything he preaches aligns with my goals. To me freedom is worth more than committing myself to working 80 hours a week. Some weeks I do work that much, most times I don't. If you follow GC on snapchat you'll notice he spends plenty of time doing what he likes and with his family too.
When it comes to real estate strategies I think he actually has some decent core values around the stuff but again not everything he does. But in the end he's doing much better than I am and I do find some value in his content.
The Moorhead Team5139 Reviews - Attorney / Multifamily Investor · Houston, TX · Member since 2009 · 173 posts · 136 votes9y
The funny thing about GC that I've noticed the tone of his videos has changed, from "anybody can do it" to "you probably can't do it by yourself... you should invest in Cardone Capital." Hahaha. Now that he has a fund, his message is a little different.
- Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes9y
@Redgy Saint-Germain I think one of the fun things (I shouldn't say "fun") is matching people pick and choose advice. They love the advice of "10X your goal!" but don't want to wait until they have $100K in the bank. As though one of the things that enables you to "go big" is having the $100K in the bank! Or one of the things that allows you to effectively run a mid-size 10-20 unit apartment building (and no lose your ****) is having large reserves for what-ifs! Whether or not you want to go headfirst into any philosophy, system, etc. is one thing. Picking one quote out of the air and disregarding the rest...is...well..an "interesting" strategic decision...
Too many people hear "10X your goal!" and use it as a rationale for high debt, low reserves, high-risk opportunities, etc. Still waiting for the meaningful blog posts on "10X your RISK!" that don't involve 20/20 hindsight...
- Rental Property Investor · Boston, MA · Member since 2017 · 241 posts · 135 votes9y
@Andrew Johnson I don't disagree. Even on a duplex you still need a reserve to pay your mortgage until you have tenants. If someone is getting started, they can hit rock bottom quick if they invest their " only" 100k in a 16 units apartment, they might not even be able to close the deal as the bank requires at least a 6 months cash reserve.
I love the idea of " 10X your goal", the motivational part is extreme and it works for most people. I am also buying smart because I think long term and I don't intend to sell unless it's absolutely necessary. With 100k you can keep buying properties and use "delayed financing" to pull all your money out and more. To me this is a better return (100%) than investing 100k in a 16 units.
We have to figure out what works best for us.
Redgy
- Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes9y
@Redgy Saint-Germain I'll fall out of my California arm-chair when I see a guru scream "10X your reserves!" from the interweb rooftops ;-)
Join the conversationCreate a free account to reply, vote on answers and follow this thread.