Grant Cardone’s dig at Bigger Pockets today?

12 Replies

Seeing if anyone caught Grant Cardone’s dig at BP on his show today. Anyone have thoughts on his advice of going Big right out of the gate? Along with staying away from SFH/ small multi’s?

I didn't hear it today but he has always been of the opinion that bigger is better. For someone like him, it makes sense. But a majority of BP are folks who are just getting started and want to get into a few rentals to help offset income and maybe eventually quit their 9-5. We all have to start somewhere. He is alienating some of his viewers by ragging on SFR's and small multis, but he has never been one to be outspoken on his opinion. I have heard him in the past advocate to buy a four unit and move in. I like the guy, its just he is in a different situation than 99% of our little forum. I think most that have had the taste of owning an apartment building would agree with his opinion on going big instead of wasting time on the small stuff. But if you only have the means to go for the small stuff, it is better than sitting on the sidelines!

He is right. I started with SFH and very quickly realized it didn't scale quick enough for me and I made a jump to MFH. But I did have the financials means to do so. So like @Jeff Brower said, getting started on the small stuff is better than doing nothing. However, I do think people still tend they do less than they actually can or stay longer in smaller properties than they need to.

@Michael Schultz This guy is basically shouting out that his way is the best way to go and all other roads travelled are not the best paths to take. I understand he has to do this to sell the merchandise, maintain the advertising dollars, and build the fan base, etc. so I won't hold it against him, it's his selected line of business.

In my opinion the one size fits all talk on a major platform de-values the speaker and their audience.  

@Jeff Brower   mentioned some people needing to start smaller than doing nothing, maybe Grant doesn't know that he's still a small fish in a big pond. I worked in the private equity industry and I know Grant Cardone isn't at the level most of those players are at and I'm sure he wishes he were. When the minimum equity placement is 20 million cash (from an individual not a fund), most show up with at least 100 million cash to place, and the Institutional placement Manager shows up wanting to place 2 Billion dollars a year would make me ask Cardone, why is he investing so small? He's basically the "SFR collector" on the large scale in America.

Hopefully the BP community understands this is one salesman selling one of many products in the consumer marketplace.

Grant is rough around the edges, but he's correct. scale is always the best answer to economic uncertainly. The best business is one that's TOO BIG TO FAIL

single family is harder to scale by a lot, going to big investments as soon as possible is the best possible way to succeed.

You don't have to want what he's doing, but it is the best way to grow and risk goes down as you get bigger.

I got 10 sfh via turnkey and realized all the time and energy was not worth it for a measly 300 per month of cashflow. Once in operation I realized it was not scalable. Not saying everyone should go straight to the big stuff I advise most people to start with 1-4 sfhs first.

Originally posted by @Lane Kawaoka :

I got 10 sfh via turnkey and realized all the time and energy was not worth it for a measly 300 per month of cashflow. Once in operation I realized it was not scalable. Not saying everyone should go straight to the big stuff I advise most people to start with 1-4 sfhs first.

 A concern I have about 'scaling up' is the length of time it takes to refinance after a value add. How long do you have to wait to refi with your multis?

Originally posted by @Ray Johnson :

@Michael Schultz This guy is basically shouting out that his way is the best way to go and all other roads travelled are not the best paths to take. I understand he has to do this to sell the merchandise, maintain the advertising dollars, and build the fan base, etc. so I won't hold it against him, it's his selected line of business.

In my opinion the one size fits all talk on a major platform de-values the speaker and their audience.  

@Jeff Brower   mentioned some people needing to start smaller than doing nothing, maybe Grant doesn't know that he's still a small fish in a big pond. I worked in the private equity industry and I know Grant Cardone isn't at the level most of those players are at and I'm sure he wishes he were. When the minimum equity placement is 20 million cash (from an individual not a fund), most show up with at least 100 million cash to place, and the Institutional placement Manager shows up wanting to place 2 Billion dollars a year would make me ask Cardone, why is he investing so small? He's basically the "SFR collector" on the large scale in America.

Hopefully the BP community understands this is one salesman selling one of many products in the consumer marketplace.

 Totally agree with you .. I don't know Mr. Cardone never listened to him.. only BP rep which I understand he is a MF syndicator. and maybe a guru.

I know a few of the bigger Guru's and they make some serious money.. 

but none of them on the level of the bigger players or family offices. 

And as others states BP is a site where those starting there journey can talk with those that are mid and maybe done really well.

but I don't think there are too many billionaires on BP.. 

There are so many different definitions of success in real estate (and life). So, I'm always suspicious when someone points the path the "right" or best" way. Usually it's marketers selling you something.

And scale -- I don't see that as a holy grail of real estate. I see making money serve your life as the holy grail. And that can happen with 5 properties in many cases and 500 in other cases.

Many of the big syndicators and go-getters I know talk about lifestyle, vacations, etc out of one side of their mouth while their huge, monster of an "automated and outsourced" business controls their lives. If they want to take over the world, that's awesome. Go for it. But let's not pretend that's the only or best way to live an awesome life.

I wrote this article on BP in response to these bigger-is-better type digs:  Why the Massive Real Estate Empire You Think You Want Won't Give You the Life You Imagine

Originally posted by @Michael Schultz :
Seeing if anyone caught Grant Cardone’s dig at BP on his show today. Anyone have thoughts on his advice of going Big right out of the gate? Along with staying away from SFH/ small multi’s?

 What was the dig man? Spill the beans.

There is a lot of value in the concept of thinking bigger. You are only limited by your own beliefs. When someone accomplishes something amazing in real estate, we all ask how they did it. It is really simple, they just thought bigger than the rest of us.

The reason Grant says half the crazy stuff he says is to spark controversy. By ripping into BiggerPockets, he was able to get you talking about him on BP. Now we are all thinking about Grant Cardone which is exactly what he wants. His theory (by his own statements) is that there is no bad publicity. If more people are talking bad about you, it just means you are more successful. 

So looks like some free publicity for BiggerPockets. 

@Eric James  

1-2 years to do rehab

1-2 years to absorb higher rents

1 year to stabilize books for sale

Guys like Grant just parlaying whatever success they had. 

Going big is great soundbite. How many millions he is raising for his syndicates because of it. 

Who benefits from syndication. VOILA-The lead rainmaker, the head honcho. 

I'm sure he wants his investors to do well but if they don't he can claim they were accredited investors and all that.  

To me 6% preferred return is silly. 

If I buy property I want way more than 6% including cap.  gains. 

Try listening to his radio show. He is very loud but his advice to little people is ridiculous. It's hard to listen to. 

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