Grant Cardone Podcast 250 Single Family vs. Multifamily

9 Replies

I have listened to all of the podcasts and I love the knowledge that is brought, even from investors with vastly different styles than me. I also am an avid follower of Grant Cardone and have read most of his books and watch his programs on Facebook and Youtube. While I don't agree with everything he says, in general I have been very motivated by his story and his message.

You have to start somewhere

I love large multifamily and I want to eventually get into that space, however I see no problem with starting in single family. Grant believes that any cash flow you get from doing a small deal such as a SFR, duplex, triplex, or quad will not be worth the effort and time you have to spend. I disagree and I think that he completely disregards the "snowball" effect, and the power of buying at a substantial discount and BRRRRing it. I also think that the education and experience that a person obtains by doing these smaller deals will help you greatly when doing a larger deal.

Keep in mind that everyone has a schtick.  

Cardone makes his money advocating his brand of investing with accredited investors. Of course he is going to slam any other investment like SFH.

In similar vein, Dave Ramsey has made millions selling products that promulgate his schtick -- no debt under any circumstances.  His stringent inflexible stance on this has made him famous and made him millions.

Robert kiyosaki made his millions selling books burying his biological father, and has his own schtick.  

List goes on and on.   Anyone who has a podcast in fact, if you listen long enough, you will learn their schtick.  They are doing the podcast for a reason.   I can honestly say that Josh and Brandon are the only ones I have found that are honest and are not doing it to advocate a specific "schtick".   The rest are, sorry to say, charlatans.  

Originally posted by @Steve D. :

Keep in mind that everyone has a schtick.  

Cardone makes his money advocating his brand of investing with accredited investors. Of course he is going to slam any other investment like SFH.

In similar vein, Dave Ramsey has made millions selling products that promulgate his schtick -- no debt under any circumstances.  His stringent inflexible stance on this has made him famous and made him millions.

Robert kiyosaki made his millions selling books burying his biological father, and has his own schtick.  

List goes on and on.   Anyone who has a podcast in fact, if you listen long enough, you will learn their schtick.  They are doing the podcast for a reason.   I can honestly say that Josh and Brandon are the only ones I have found that are honest and are not doing it to advocate a specific "schtick".   The rest are, sorry to say, charlatans.  

I wish I could give you more upvotes for this, Steve. Couldn't agree more. Eloquently written, too...better than I ever could have done myself! LOL

@filipe pereira

Thanks. :)
Been listening to these types for a long time...it’s humorous.

I thought he had a great point with staying in a constricted market ($800-$1200) range.

During a down market, I wonder if a certain type of property (an apartment, a house, a duplex) is more desirable to rent than the other. If they are all in the same price range, would one type of property have less vacancies than the other?

SFR is a great place to start and will provide invaluable experience. However, almost every investor who has made it big and owns hundreds or even thousands of units will all tell you that they wish they would've skipped the SFR phase and jumped straight into big deals. That being said, if you don't have a way to jump right into big deals then of course SFR is the answer.

I listened to that podcast.  Cardone has his opinion and is very vocal.  He has some good points and others that I don't agree with.  Brandon and Josh closed the show talking about how they don't necessarily agree with Cardone on everything.

There are a million ways to be successful.  Always be open to new ideas but look at them critically.  I think most people can get some valuable lessons from that podcast and toss what they don't agree with.

The key one that Cardone closed with that many people need to hear is the difference between those that are successful and those that are not is doing. You will never be successful if you don't start. If that means you have to start with SFR's then so be it. But you have to get in the game.

There are many different ways to invest in RE.

Grant is vocal and extreme, however, I personally do prefer multi-family over SFH as a buy-and-hold investor. My first RE investment was a duplex which cashflows very well, then more duplexes, and now I am looking into apartment building. Economies of scale, and many other reasons.

Many have gone BK in multis.  It won't matter what your rents are if you have high vacancies. GC kills it still and has a ton of good info. There are a ton of Cardones types who never share jack too. Like everything else, consider the source. 

Giod luck!

Can anyone answer this Grant Cardone question for me: When Grant says his company has 4,000 units (just an example) does that mean that his company and his investors (who invest in the different funds) own a total of 4,000 units. Or his company and investors own a total of 10,000 units but the company owns 4,000 of them?

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