Listen to the Podcast Here: Should I keep a piece of property or sell it? It’s an age-old investing question. But today, REI mogul and internationally-renowned speaker Grant Cardone spilled some of his secrets for making these decisions to our host, asset protection and real estate attorney Scott Smith. Tune in as Grant explains how he approaches his best deals, why you should never sell a piece of cashflowing property, and how to buy as many properties as you can without becoming overleveraged. And, of course, his top three tips for always coming out on top in the real estate game. Check out the latest episode of the Real Estate Nerds Podcast to hear Grant break down the steps he took to turn his real estate deals into a pattern of success. In fact, he’s since grown his portfolio to one billion dollars! Listen now, and learn how you can too. Learn how to avoid the mistakes little investors make and the full story behind Grant’s legendary best deal. “If you buy Park Place and Boardwalk, there’s a good chance you’ll own the whole board.” – Grant Cardone Questions about our podcast? Guest suggestions or requests? Reach out to our team directly. Free LLCs From Royal Legal Solutions: Have You Claimed YOURS? And don’t forget about the 100% free LLCs we are giving away. You’re here to become the best investor. And the best never own property in their own names. Secure your property inside an LLC at no cost while this offer is still ongoing! Description Useful Resources [:50] Grant Cardone introduction. [1:28] Grant expresses the importance of what Scott and Royal Legal Solutions is doing for the real estate investment community. He goes on to explain the fear and doubt never goes away and it is healthy to be that way. [2:50] Scott delves into a little deeper in regards to fear and how “fear is information.” Grant continues with the subject of fear and suggests that if you have fear then maybe “you don’t know enough. [3:10] Fear also suggests “maybe I don’t know enough.” If you have never been through a big crash, then you are gonna have fear because you don’t know that market. [4:22] You can’t delegate fear. This idea that we will delegate to other people is a misnomer. [5:00] What is Grant’s biggest mistake in real estate? Not buying more real estate. Grant says he should have bought everything. In 2007 he says he should have double and triple his assets the real estate. [7:00] Grant made the mistake of listening to too many people below him and around him who told him not to do it and did not know what they were talking about. If it is new for you, it is new for them. Most people will not have a big team. So who do you rely on? He can’t rely on the lawyer or the accountant or the realtor. You have to pick the right property. He picks to exit. [8:12] Grant’s looking for a minimum of a double on a deal with cash flow. He says he “Needs to know who his exit is when he’s buying a property.” [9:53] Grant knows when he drives up to a property he knows within 30 seconds whether he is buying it or not. He explains that the investor should know enough about the real estate. Grant will look at 3000 units in a day. As soon as he drives up if he doesn’t like he’s not buying it. He’s not going to try and figure it out or entertain it. [10:38] The investor should know enough about the real estate. “The numbers on the deal don’t determine whether it is a good deal or not.” [11:57] Grant asks the question: “Where are we getting our advice from? Most real estate guys are looking for returns. We should look to a different group of people for our data. “The data points should come from the wealthy not your uncle.” [13:30] Grant talks about his book “How to Create Wealth Investing in Real Estate.” He talks about his first deal of one unit. He goes on to explain that this piece of real estate will last longer than most marriages. When he buys a piece of real estate it will be with him after he dies. That deal was a terrible experience because the deal was too small. [16:40] Grant explains that the deal went bad because he bought the wrong kind of deal, he bought a deal on a budget. Donald Trump’s dad, Fred, built low-income homes for people to rent coming home from World War II. Grant said it took him three additional years to buy his next deal. [22:10] Grant explains that he wants to take Grant Cardone Capital to $10 Billion. He said he can make an offer on property without seeing the T12. Everyone can be a genius if you commit. Real Estate protects your capital. You would have to have a North Korea event to lose the property and at that point everyone would be out. If you buy the right thing you WILL NOT lose money. 1. Not going to lose money if you are not over leveraged. 2. I get cash flow 3. Should get a double or a triple But if you don’t know all of this and you are still in doubt. You are not a real estate investor is you are still looking at ETFs. Invest in real estate – don’t leave your money in the bank it’s going to zero and don’t invest in the stock market. [26:25] Grant plays the real estate game because he can’t lose. If he goes to the black jack table he’s betting $25 per hand. Why? Because he’s an amateur at the black jack table so he’s not going to bet a lot because he knows he can lose. You can’t lose in real estate if: Don’t overleverage Good locations Positive job growth. [28:19] The two biggest mistakes he’s made in real estate: 1. He didn’t buy enough 2. He shouldn’t have sold anything He regrets selling everything but one deal. [31:38] It’s like Monopoly. If you buy Park Place and Boardwalk, there’s a good chance you’ll own the whole board. [33:00] Don’t sweat the small stuff. The little investor makes these types of mistakes. Don’t squabble about $50k on a $5 million dollar deal. Don’t sweat the legal feels. Be happy you can pay legal fees and you can get a deal. Little thinkers. Buy low sell high. It exists heavily in real estate. You’ve got to look at the long-term growth. [34:49] Grant bought a piece of property for $12 million dollars and four months later he sold it and $4 million dollar. The person who bought it from him sold it for $28 million. He left $12 million dollars on the table. He underestimated how much rents were going to grow because he did not have the data. Rents have grown uninterrupted since 1945. He wants his cash out of the bank that earn practically nothing – 2% on 18 month CD…maybe and put it on real estate. [36:54] If another investor beats you out on a deal, get them on your buyer’s list because they know something. When you are doing a deal make sure there are other buyers – that suggests an exit. Listener Resources Thank you for joining us on today’s episode of the Real Estate Nerds Podcast. For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook. Don’t forget to subscribe to stay up to date and have the most current episodes of the Real Estate Nerds Podcast directly in your listening library. Every subscription helps us create new, custom content for you. What did you think of today’s episode? What would you like to hear more about in the future? Leave your thoughts and questions in the comments section below, or leave us a review in the iTunes store. We love hearing your feedback, so fire away. Join us again next week for another fascinating investing conversation. Thanks for listening! Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions. Schedule your personal consultation now. If you have questions about our content or suggestions for future episodes or guests, reach our podcast team at [email protected].