Is Grant Cardone crazy or am I just scared?

Multi-Family and Apartment Investing
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Is Grant Cardone crazy or am I just scared?

Daniel J.
Conroe, TX · Member since 2016 · 237 posts · 43 votes

I fully realize Cardone is a very polarizing individual, and that’s an understatement. I do disagree with him on some things, I’m not out to build an empire and we will probably always own our own home for various reasons. I do understand though the reasoning behind why he says you should scale up as quickly as possible to mitagate a lot of the costs with sheer volume. I also have my concerns with going from zero to literally 100, or frankly even 25. I have zero experience at this point and so stepping in and using investors dollars at that’s scale seems quite risky, and almost frankly misleading. I wouldnt be intentionally misleading them, but giving them confidence I can pull o off something I don’t have the strong experience in. Am I just scared and Cardone is right, or is caution better?

For some back ground I am located just north of Houston, have financing for the 300k mark working a JV deal. My goal is to start in 2-4 units to get my feet on the ground, and then hopefully jump into the 6-25 range and go from there.

Thanks!

Daniel

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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
8y

This is just extreme ends of a scale, from doing no deals and just watching your whole life to doing thousands of highly leveraged deals. I have a running joke - "Who's Grant Cardone?" but when I say that what I really mean is "Who cares what Grant Cardone thinks?". You're not Grant Cardone, so you don't need to structure your philosophy around what Grant Cardone thinks. 

Cardone is good for illustrating possibilities. But not all possibilities have to be reality. It is technically possible for me to become an astronaut, but I'm pretty happy just sitting on the front porch drinking lemonade (or a beer, if you don't like lemonade). You can go do 10,000 highly leveraged deals, if that's what you want to do. Or you can just try doing *a deal* and seeing how that suits you. Some people find they love this. Some people love just chasing the deal. Some people (like me) just like strong cash flow and are satisfied with less units to deal with. 

So I would say don't worry about Grant Cardone, get 1 deal under your belt, and see how you feel. 

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  • Daniel J.
    OP
    Conroe, TX · Member since 2016 · 237 posts · 43 votes
    8y

    @Will Stafford There is truth to that. Thanks!

    @Steve Bracero Thanks!

    @Account Closed That is very true, though for many people leverage is the only solution. If you buy correctly and maintain the correct reserves you SHOULD be fine.

    0Reply
  • Daniel J.
    OP
    Conroe, TX · Member since 2016 · 237 posts · 43 votes
    8y

    @Eddie T. Not to get into that debate but there are pros and cons whether to be free and clear, or to leverage. Many people ascribe to each side and are successful. You do have a point about property taxes, its one of the worst plagues on our society but thats a story for a different day.

    @Justen Ashcraft That is very true, thanks!

    @Gus Ross That is true, thanks!

    0Reply
  • Daniel J.
    OP
    Conroe, TX · Member since 2016 · 237 posts · 43 votes
    8y

    @Jordan Moorhead That is true! Thanks!

    0Reply
  • Tony Nguyen
    Investor · Tampa, FL · Member since 2010 · 377 posts · 56 votes
    8y

    @Daniel J. - With experience comes confidence. I think when you get more experience under your belt, the possibilities will become clearer. Your 25 unit deal range sounds like a little fear to me, which is normal and very familiar. I used to be in that position with other things in my life. Redbull has a great commercial where it ends with the quote "the only limit is the one you set yourself", great commercial. Good luck with your JV projects, please keep us updated.

    1Reply
  • Account Closed
    Investor · Columbus, OH · Member since 2016 · 139 posts · 136 votes
    8y
    He’s able to speak the way he does, because he’s on top. He’s a salesman. Let’s be realistic though, many people have leveraged themselves to the moon and back, and failed. A man with money doesn’t mean he knows or did everything right.
    2Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    8y

    @Daniel J. it's all about mindset my friend! You can find 25 units in certain markets for 500k with C+ tenants (if you get the deal yourself). What's 500k to a syndicate? NOTHING! Just have a due diligence checklist, and require a MUCH higher ROI of the deal than your investors require so you can always make them whole.

    You CAN do 25 units. Just design a process that removes unnecessary risk, and buy conservatively!

    2Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    8y

    You have to start with your why. This is about lifestyle design and you have to factor that in when taking advice. Some people want a cozy, laid back lifestyle, while others want to do whatever they want, whenever they want, however they want. Start with your why and then figure out the strategy that's going to help you get there. You can't try to be Grant Cardone or anyone else for that matter.

    1Reply
  • Jeff Kehl
    Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
    8y

    @Daniel J. Good thread and if I were you I would listen to both perspectives on the thread. I personally would vote for going slow with a small property and learning as you go but that's because that has worked for me. I have yet to take on any investor money and have done quite well on my own. But I realize that I could have done much better and be much bigger now if I had.

    Balance, I think is important in all things, especially in business. Start small and get going and learn as much as you can. But when you see the chance to make the jump to the next level don't be afraid to to do it if you have done the work to consider all of possibilities and prepared yourself.

    0Reply
  • Daniel J.
    OP
    Conroe, TX · Member since 2016 · 237 posts · 43 votes
    8y

    @Tony Nguyen Thanks! I have no doubt it will, but all in good time!

    @Account Closed That is true! Sadly 500k didn’t buy quite so much here!

    0Reply
  • Daniel J.
    OP
    Conroe, TX · Member since 2016 · 237 posts · 43 votes
    8y

    @John Casmon That is true! That’s why I started with the path I did, just checking to make sure I’m on the right path!

    @Jeff Kehl That’s true, thanks!

    0Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    8y
    Cardone can sell snow to eskimos, but at least 28% of what he says he is doing is most likely true
    0Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    8y

    @Daniel J. then don't buy it here then! Buy it where it makes you the most money!

    0Reply
  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    8y
    Originally posted by @Daniel J.:

    @Anthony Gayden @Alisha Decoteau That is certainly not a bad idea, I know of those who have done that. What do I bring to the table though? Why would an experienced investor want to spend their time on me?

    Simple. You "have financing for the 300k mark"! That's what they're after!
     

    1Reply
  • Account Closed
    Rental Property Investor · IN · Member since 2015 · 125 posts · 93 votes
    8y

    @Eddie T.

    It is much easier to pay just my property taxes than my property taxes and a mortgage.  If I have multiple properties leveraged, it makes it just that much harder if something happens.  However, I did not say "own free and clear" and everyone knows that we still have to pay property taxes.

    I was referring to being able to make a house my actual home in that I can paint, redecorate, etc. to my taste instead of keeping things generic like I expect my renters to keep my houses.  If any house can feel like your home, kudos to you!  

    Are you working towards paying any of your mortgages down?  If so, why?  See, I want to go into retirement with everything paid off and I believe ultimately, that is the goal of most investors as they near their 60's and 70's, even if they "retired" from their day job much earlier.

    If that isn't true, it is just because we have a differing worldview on debt.  I stand by my original statement that Grant doesn't "own" anything.  I am not impressed by these kinds of "headlines" because they don't do the average investor any good and could actually do harm.  Show me some stories about the common investor that I could actually duplicate and that would speak many more volumes to me.

    0Reply
  • Dan Wickland
    Rental Property Investor · wyoming · Member since 2017 · 76 posts · 73 votes
    8y

    Hey @Daniel J. I'm a big fan of Grant. There's merit in what he says but at the same time he's a high dopamine guy and not everyone needs to own 1000s of doors lol.

    I think what's most important is to know exactly what you want, how long you want to take to achieve it, why you want to achieve and then formulate a plan to achieve that. 

    0Reply
  • Ryan IngramBusiness Member
    Rental Property Investor · Dayton, OH · Member since 2017 · 247 posts · 225 votes
    8y
    Camilla Sauder You’re completely right. I read somewhere on the Cardone Capital website that his properties are leveraged around 80% I can relate in not wanting to take that risk.
    1Reply
  • Michael Le
    Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    I'm not sure why any of you would want to be like the common investor or the common anything else.

    2Reply
  • AK Fowler
    Investor · Royersford, PA · Member since 2015 · 64 posts · 21 votes
    8y

    Don't get caught up in the grand numbers. See through the forest of trees and see the beautiful ocean on the other side. He's motivating you to get going. Don't limit yourself and your dreams. Don't sit on the sidelines, get in the game. Find your strategy, create your plan and start taking action. So what if a deal falls through, limit your fear and just start walking the path. 

    0Reply
  • James ReyesPro Member
    Real Estate Agent · Rochester, NY · Member since 2016 · 25 posts · 9 votes
    8y

    @Michael Le, beautifully said. Not that we should chase Grant, because one should find what works for them and meets their goals, but there's a reason Grant is making headlines. He chose not to be common. And I am sure he has some risk measures in place. At the end of the day if we are in it for cash flow and the money is in multifamily, the odds of weathering the storm are pretty good. 

    0Reply
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