Real Estate Interactive. FREE Real Estate Mastery Training – From Zero to Cash Flow in 90 Days!

REM trim the real estate mo man up. My word. Doing exactly what I told up. Cause we like that.

Bring the pressure like Mike Jack.

Rule one, we showing up, setting goals on my sight back big faces on big stages. You gonna see it. Whooping cases like Tyson Johnson told me once he made much more money. He's a, he invested in a real estate fund and started one. He told me he made much more money in real estate in five years than he made in totality playing in the NBA.

I don't want to be comfortable. I don't want to live with the mindset of nothing's going to change, it's going to be like this forever.

What do you do with your money to prepare for that?

Do smart things. I'm heavy. Investment real estate. We just started a.

Who loves real estate?

Real estate.

Why do you like real estate?

I love real estate. And you know, real estate is just one thing that you know where your money is, that money's in the ground. So regardless of what's going on in the world, people are always going to need places to do business, places to live. They're always going to need places. So the more that you can achieve the, the, the buy or the ownership of these places, the more that you're always going to have revenue coming back to you. You're also putting yourself in a position to always go out and borrow or get. Because I have these things to leverage. So the more, the more that you, I guess you could say the more that you get, the more that you can do. And you know, sometimes I think people think that it's a far fetched goal to get and it's not really, it's not that hard when you gain the understanding of it. The game of Monopoly is a real game. Yeah, it's a real fucking game. And when you play.

Can you repeat that? I don't know that everybody.

The game of Monopoly is a real game. When you play Monopoly, the goal is to buy up as much property as you can and get people to pay you for that property when they land on it.

Rent.

Rent.

That's the fucking game.

So when, when I look at now my success, I'll tell you. Here's, here's, here's a, here's something that I do and it's, Tell us something.

That I only knows this is something.

That, that you guys don't know. Let's say I do a movie, right? That movie is whatever the it is. I make a nice amount of money to do a movie. Take that number, split that number in half. Half of that number goes to the government. That's the IRS.

No matter what, we're talking about 25 million because that's 12.

Let's. We can just call a number. I don't want people to knock me in the head when I leave here. Let's just call it a number, okay? Let's say that number is a number. No matter what. When you make money, split it in half. Yeah, split it in half right away. Don't put the money in your bank account and look at it as you got all that money, because you don't, half of that money is not yours. So right away, put it over here, create a fucking account, call it the tax account. Put half of that there. So as you make money, you always put this money in the tax account. I never got to worry of giving the government their money because that money's over there. And I don't look at that like it's my fucking money. I'm never going to touch that money because it's not mine. It's the government. So now, off of my half, what do I want to do? I'm going to take another half. This half is going over here. This half is for my next real estate investment. I don't know what it is. I haven't figured it out yet, but I'm putting it over here. So when I do figure it out, I got it there to buy. So now I'm only living.

So ridiculous.

I'm only living off a quarter of my financial gain. I split it in half and I took a quarter.

This is the reason why money matters, okay? Without money, you can't buy food to live, to be alive. So money, you. You have to have money to be alive. But I believe in creating generational wealth, you know? Yes. When you look at investments today, Floyd, what do you look at for. For. Is it a feeling? Is it a. Is it. Is it have to make sense to you? Is it something you like? If it's something that I know is paying off, lucrative and heavy, I got to go with it. I have to go with it. How much do you like real estate? I know. I know you own some real estate. I got $2 billion worth of real estate. I'm going to 10. So they're like, hey, maybe. Maybe you partner with Floyd, you know, create a new fund, Mayweather Cardone Fund. Well, you. Well, that's what I invested in from the beginning. The first. The first time I invested, my first investment was real estate. Wow. I went from commercial real estate. Huge skyscrapers, Actually, so I own. Actually, what I'm bragging now. No, I'm not. Now you're bragging. No, no, you can brag, man. No, no, no. Actually, what I, what I own right now is nine skyscrapers, and I'm building my 10th skyscraper right now. So I own nine skyscrapers and I'm building my 10th Skyscraper.

Remember one thing, and here's the important thing, that I was a millionaire before I ever did that movie, before I did Conan or Terminator. Because I became a millionaire because of real estate, the business that you in, or one of the businesses that you're in.

I didn't want you to bring that up.

No, no, but it's true. I saved every penny. I saved every penny. Imagine that. I did not have a blazer to go out in with the age of 24 or 25. I had nothing. I was just training and working and training and working and training and working and going to school, getting my degree, my business degree, and I was going around and doing seminars and exhibitions. And every time I made some money, I put them, I took the money and I stuffed them right here, my cash, into my boots. Because sometimes I was in England, sometimes in South Africa, sometimes in France, Canada. So I always was flying home. So I didn't want to go to sleep and have someone steal my money. So I was smart, so I stuffed my cash into my boots, then I took them home and then I put them in the bank. That's how I saved up until they had 27 and a half thousand dollars. And then I put down money for a six unit apartment building.

And then you didn't buy a house?

No, no.

You bought.

No, because I tell you, there was a real estate woman by the name of Olga. Olga. She was from Lebanon and she was Danny DeVito's height. She was like this. And actually pretty old already. I would say she was in her 60s. It's very unusual to work at that age. And she said to me, she says, arnold, listen to me. You need income, property. When you have a house or when you have a condominium, then you have to pay the mortgage and you have to pay for the, for the expenses. But I find you a six unit apartment building that has an owner's unit.

In front.

And you're gonna stay there in this owner's unit, and then you're gonna go and pay for your rent, and then they're gonna pay for their rent and the value of your property will go up. It was a $240,000 apartment building. Now remember, this is the 70s, $240,000 apartment building. Two years later, I got $400,000 when I sold that building two years later, $400,000. Now imagine I put only 27 and a half down. Now imagine that profit, 10x, right? I mean, imagine that profit. Now I didn't take the money because that Olga came back. I mean she was the original one that said I'll be back.

And.

And that Olga came back and she says, don't you dare take that. I said, well, what do you, what do you want me to do with that money? We trade up. We trade up. He says, you get a 12 unit, I will find you the 12 unit in Brentwood, even in a better area. And you trade up. That's what we did. Two years later we sold that again and traded up to 36 unit apartment building and then to a 60 unit apartment building, a 100 unit apartment building. This is how it went.

I hear you talk a lot about cash flow and I know it's really important to me. So why, and why is it important for the audience to measure it? Let me be clear about cash flow. It's the only thing I care about. There is no business without cash flow. You might be able to last for a couple of years borrowing money, getting more investors, but if you don't have cash flow, you're going to zero. Got to start thinking about things like real estate. There's a reason Miami real estate is up 40% in the last 18 months or something. Because it's a hard asset. Did you mention real estate? I own plenty, don't worry. But I've trimmed back a bit on, on office commercial. I'm waiting to see how that works out. Getting more into the residential side, you know, that's a good revenue. You know, I don't have to tell you this like you're the guy. Are you talking about apartments? Yeah, ye. This guy owns every apartment in Miami. Like he's the landlord basically. No, listen, you've, you have to have had a fantastic mark to market run on your real estate. It's got to be amazing, just ridiculous. Yeah. And then what, what happens now with everybody coming down here in the residential. The home price is going up 40%. It's just going to push into renters. I'm one of those guys. I've been living in a condo. My wife is shopping for a home. She comes back with sticker prices that I want to throw up on my shoes. Yeah. Like the stuff is insane. Yeah, it's crazy. But that's the, that's the market. Well, I have the saying that like liabilities can be your assets, and assets will always become liabilities at some point. Do, do you know what I mean by that?

100%.

You know, one of the things that.

A lot of athletes and entertainers and people, folks that grew up like my mother, you know, with very little, they did not understand the difference between a liability and an asset.

And it's counterintuitive.

Whatever you think is an asset is a liability. And whatever you think is a liability.

Is usually an asset.

And people say, but, Alex, I'm buying real estate. I said, no, but you have nine homes, and each one of them costs.

You a million dollars a year.

So you have $9 million of negative cash flow. Grant and I own a building, 500 units, and it puts a million five.

In our pocket every year.

So when you perform that out and you forecast that over 10 years, the Delta is about $25 million.

Right.

And you do that for 25, 30, 40 years. You buy real estate, you hold on.

To it, you never sell.

You refinance it. Sometimes you have to sell for a strategic reason, but then you land. And Today we're about 8 to 10,000 apartment units.

And some of.

I have two regrets in real estate. I didn't buy enough.

Yep. And the second one I sold. Exactly. And I sold. But it's okay.

You have to sell.

Sometimes you got to get a double. Not everything's going to be a home run. There's no need to be greedy.

Take a single, take it off the table.

But, but had you had capital, access to capital back then, you would never sold anything.

And we wanted to prove ourselves right. We, we've put hundreds and hundreds of millions of dollars.

We bought well over a billion, billion.

And a half dollars of real estate over the last 10 years. And we, we had LPS, we had limited partners, and we wanted to put money in their pocket, right? We wanted to build that track record. Now they're coming back to us and.

They'Re saying, alex, don't give me this money back.

Keep giving me the cash flow.

Magic Johnson told me once he made much more money. He's a, he invested in a real estate fund and started one. He told me he made much more money in real estate in five years than he made in totality playing in the NBA.

I don't want to be comfortable. I don't want to live with the mindset of nothing's going to change, it's going to be like this forever.

What do you do with your money to Prepare for that.

Do smart things. I'm heavy investment real estate. We just started a.

Who loves real estate?

Real estate.

Why do you like real estate?

I love real estate. And you know, real estate is just one thing that you know where your money is, that money's in the ground. So regardless of what's going on in the world, people are always going to need places to do business, places to live. They're always going to need places. So the more that you can achieve the buy or the ownership of these places, the more that you're always going to have revenue coming back to you. You're also putting yourself in a position to always go out and, and borrow or get because I have these things to leverage. So the more, the more that you, I guess you could say the more that you get, the more that you can do. And you know, sometimes I think people think that it's a far fetched goal to get and it's not really, it's not that hard when you gain the understanding of it. The game of Monopoly is a real game. Yeah, it's a real fucking game. And when you play.

Can you repeat that? I don't know that everybody.

The game of Monopoly is a real game. When you play Monopoly, the goal is to buy up as much property as you can and get people to pay you for that property when they land on it.

Rent, Rent.

That's the game. So when, when I look at now my success, I'll tell you, here's, here's, here's a, here's something that I do.

And this is, tell us something that I only know.

This is something that, that you guys don't know. Let's say I do a movie, right? That movie is whatever the fuck it is. I make a nice amount of money to do a movie. Take that number, split that number in half. Half of that number goes to the government. That's IRS. No matter what.

We're talking about 25 million. Because 12.

Let's, we can just call a number. I don't want people to knock me in the head when I leave here.

Let's just call it a number.

Okay, let's say that number is a number.

No matter what.

When you make money, split it in half. Yeah, split it in half right away. Don't put the money in your bank account and look at it as you got all that money because you don't, half of that money is not yours. So right away, put it over here, create a account, call it the tax account, put half of that there. So as you make Money. You always put this money in the tax account. I never got to worry of giving the government their money because that money's over there. And I don't look at that like it's my fucking money. I'm never going to touch that money because it's not mine. It's the government. So now, off of my half, what do I want to do? I'm going to take another half. This half is going over here. This half is for my next real estate investment. I don't know what it is. I haven't figured it out yet, but I'm putting it over here. So when I do figure it out, I got it there to buy. So now I'm only living. I'm only living off a quarter of my financial gain. I split it in half and I took a quarter.

This the reason why money matters, okay? Without money, you can't buy food. To live, to be alive. So money, you. You have to have money to be alive. But I believe in creating generational wealth, you know? Yes. When you look at investments today, Floyd, what do you look at for. For. Is it a feeling? Is it a. Is it. Is it have to make sense to you? Is it something you like? If it's something that I know is paying off, lucrative and heavy, I got to go with it. I have to go with it. How much do you like real estate? I know. I know you own some real estate. I got $2 billion worth of real estate. I'm going to 10. So they're like, hey, maybe. Maybe you partner with Floyd, you know, create a new fund. Mayweather Cardone Fund. Well, you know. Well, that's what I invested in from the beginning. The first. The first time I invested, my first investment was real estate. Wow. I went from commercial real estate. Huge skyscrapers, actually. So I own. Actually. What, I'm bragging now. No, I'm not. Now you're bragging. No, no, you can brag, man. No, no, no. Actually, what I. What I own right now is nine skyscrapers, and I'm building my 10th skyscraper right now, so. I own nine skyscrapers, and I'm building my 10th skyscraper.

Remember one thing, and here's the important thing, that I was a millionaire before I ever did that movie, before I did Conan or Terminator, because I became a millionaire because of real estate, the business that you were in or one of the businesses that you're in.

I didn't want you to bring that up. No, no.

But it's true. I saved every penny. I saved every penny. Imagine that. I did not have a blazer to go out in. With the age of 24 or 25, I had nothing. I was just training and working and training and working and training and working and going to school, getting my degree, my business degree. And I was going around and doing seminars and exhibitions and every time I made some money, I put them, I took the money and I stuffed them right here, my cash, into my boots. Because sometimes I was in England, sometimes in South Africa, sometimes in France, Canada. So I always was flying home. So I didn't want to go to sleep and have someone steal my money. So I was smart, so I stuffed my cash into my boots, then I took them home and then I put them in the bank. That's how I saved up until they had 27 and a half thousand dollars. And then I put down money for a six unit apartment building and then they did.

You didn't buy a house?

No, no.

You bought.

No, because I tell you, there was a real estate woman by the name of Olga. Olga. She was from Lebanon and she was Danny DeVito's height. She was like this and actually pretty old already. I would say she was in her 60s. It's very unusual to work at that age. And she said to me, she says, arnold, listen to me. You need income, property. When you have a house or when you have a condominium, then you have to pay the mortgage, you have to pay for the expenses. But I find you a six unit apartment building that has an owner's unit.

In front.

And you're gonna stay there in this owner's unit and then you're gonna go and pay for your rent, and then they're gonna pay for their rent and the value of your property will go up. It was a $240,000 apartment building. Now remember, this is the 70s, $240,000 apartment building. Two years later. I got $400,000 when I sold that building two years later, $400,000. Now imagine I put only 27 and a half down. Now imagine that profit 10x, right?

Hey, welcome guys. Grant Cardone here with your Real Estate Interactive. I look forward to spending today and tomorrow with you. We're going to be spending. I got a bit of an echo here, but I don't know if you guys hear that coming out of the speakers. We're going to spend about two hours this morning, maybe, maybe a little more than that. Typically, I'll go a little long just to make sure you guys get what you need to get out of this. Really happy to be with you and your family. Hopefully, hopefully you have your spouse with you right now. Anybody that's going to be involved in pushing this agenda forward for you and your family to become real estate investors and expand or start a portfolio, build a portfolio, or possibly expand the portfolio you already have. Really, really important for you to have anyone that could either support you and push this forward or possibly get in the way of it. Really, really important for you to have them here because there's so many other things you can be doing in life. And this is one thing that I'll promise you. There's a path for you and your family to produce generational wealth short of that, millions of dollars of both income and asset value. So let's just start there. Okay? The goal today in this real estate interactive, if you're on Instagram or TikTok or Twitter or X, I guess it's called Now X or Rumble. Where else could they be? Facebook, YouTube, wherever you are. If you want to see this, when with access to the PDF that we're sharing with the audience, you can go to GrantCardOne.com 97. 97 GrantCardOne.com 90Forward/97 GrantCardOne.com 97. Involved in this is also a PDF that we download to you. And for you guys that are really serious, go to GrantCardOne.com 97 and then you'll get access to a VIP session as well, or to Q and A, which is with VIPs in. They're asking me questions throughout the day, so I'm going to be sharing a bunch of information with you. Some of it's in your book. You'll download the book. You want to download that. So all your notes are saved. Also, you should have an extra separate book because sometimes I go off script more often than not, by the way, and where all the great data is. Jared, Jared's got a saying about this. Your teacher told you what?

Yeah, no, he, he said it's. It's on. I usually turn it on when I pick out. Pick it up. Just takes a second. No, he said, hey, if you want to get an A in the class, just study the book. But if you want to learn how to actually apply all this stuff and make it work, then take a bunch of notes during the lectures because the lectures won't be on what's in the book.

Yeah, so, yeah, I'll cover the book today. You want to download it? You could save your change, save your, your notes there, but also just have a little other place to write stuff because you're going to be like, where's he at in the book? Okay, Like, I'm not going to start in the book. I'm going to start with the goal of the book. The goal of any education is not to learn and should not be to learn. The goal of any data or information is, hey, how do I take a piece of data, put it into the marketplace right now and get something from it right away? Okay? The goal today is to help you find, not real estate, but to identify the kind of real estate that would. That would generate a million dollars per deal. Now, I've been doing this since I was 28 years old. I've made a lot of mistakes along the way. I'm going to share those mistakes with you. There's a lot of things I would not do again today. If you know what somebody. If you find somebody that's super successful and you could just say, make a list of things you would never do again today. Let me tell you something. What people won't do again, wouldn't do again. The mistakes they made getting to wherever they got is probably more valuable than the do's. Okay? But you're not going to get anywhere without the deuce. But the do not, do nots. The first thing I didn't do when I did real estate, as I never had a target for what the real estate was going to make me, I fell into this, okay, and found a piece of real estate, went out, bought it, made a decision. I mean, I really quickly made a decision to buy a piece of real estate. I think I bought the first one. I looked at, saw it, it made financial sense, bought it, got a loan on it, figured it out, didn't know anything. By the way, I had $3,000. I looked at one house. I bought the one house. I went to get a loan on the one house. I didn't know what a title was, a deed, an appraisal or survey. I didn't know all that stuff meant nothing to me. Ltvs and nois. And I didn't know how to run an ad to get a renter. Nothing. Zero. In fact, when I bought this first house, this 1986, and I bought this house for $78,000, I was shocked to find I could buy this house for 3, 500 bucks. The payments were 375. The rent was 575. By the way, I bought it to live in it. Before I moved into it, some lady asked me, will you. Would you rent it to me? I'm like, sure. How much? 575. So I made 200 bucks a month. I just did simple math, okay? I'm like 200amonth. Remember? I didn't have a million dollar target. I just knew that I needed. I was working and I was earning income and I could only earn so much income. And then I had a little bit of surplus and I'm like, what I'm going to do with this money? To me, it was very simple. I'm either going to spend the money, I'm going to try to save the money at the bank, and I don't trust the banks, or I'm going to invest the money, okay? I didn't trust myself with the money because I knew if I spin it, I'd blow it. And I've always been a pretty conservative person. I didn't want to waste money. I worked too hard to get it. Okay, if you guys in the chat, in the chat. Let me see the chat up here, guys, we can throw it up. If you're working hard, put a 10x in the chat. If you're already one of those people that works hard, okay, Put in the chat, dude, 10x. Okay, good. So you got that part figured out. Good for you. Now those of you that did not put 10x in there, like, you got to learn how to work. If you don't learn how to work, nothing's going to happen. You know, all. Everything I've ever bought was with other people's money. Just so you know, I have 15,000 units now, almost 15,000 units. $5 billion worth of real estate. Every penny of it was bought with other people's money. I always had a main job. I had a job. The job paid me money. I took the money and I bought real estate. Every piece of real estate. Every watch I bought, every car I bought, every house I bought, every piece of real estate, every piece of equipment, computer, shoes, belts, shirts. Everything I've ever bought was from this job. Okay? I took. I took money, I converted it. I took time. I converted the time to money. Somebody gave me some money for my time. Some talent I had. I tried to make that talent better so people would pay me more money, not less. A little more money, not more, you know, a little more money over time. And then I would take all the money and rather than buying a watch, a shirt or shoes, I would convert it into real estate and the real estate's passive income would buy my shoes. Like, if you guys could just figure this out, you will get rich, okay? Earn income, convert income to asset, have asset, pay you money, take money, buy shoes or belts. Or kids or dates or vacations or cars or whatever it is you need to fund in your life, fund it from the real estate. See, this is other people's money. Boom. I buy some real estate. This is other people's money. Twice, okay? I never got rid of my money because I have my real estate now. Now, when I got started, I didn't have any targets. I said, I'm going to buy a piece of real estate. I'm going to make 200 bucks a month times 12 months, I'm going to make $2,400. Like, to me, it was a no brainer. I, I invested 3,750 bucks. I made 2,400 bucks a year. That's a 70% return. I'm like, no brainer. I mean, it just makes sense. All I did was convert three grand to a deal, made 200 bucks a month. Now there's some work. I got to rent it, I got to take care of it. I got to, you know, do pest control. And there is management. There is problems and issues and all that. And I wasn't prepared for any of it. Okay? Now here was the problem. I didn't know this. I know this today, and I want you to know it from the get, get go. I could have found one deal that made me 1 million rather than finding one deal that made me 200 bucks. I just didn't know that. I'm going to show you those deals today, okay? In the chat, put where you live right now. I'm going to use where you live, by the way, to find deals. So put in the chat, where do you live? How many people on this chat? Yeah, okay, we got people from Michigan. We're in Michigan. I'd love to have a city because it's a big state. Atlanta, Dallas, Philadelphia, even down to the market. Where in Atlanta? Phoenix. I know all these markets. Cape Cod, Orange County, Palm Harbor, Florida. That's really what's helpful. I know the Palm harbor market. So if I go right here and I'm gonna go to my Palm harbor, this is the United States, by the way. All the multifamily four units and less in the United States of America. You guys that don't think that there's any real estate for sale and you can't steal it. You can steal the real estate I'm gonna be sharing with you today. Listen to what I'm telling you. You're looking to steal real estate. This is going to flow fast, okay? I'm telling you, you're going to get a Lot of information. So strap in, grab your coffee, get the dog out of there. The kids, if they're distracting you, get something to write with. What you're looking for in these deals is you're looking in this marketplace right now. You're looking for something called under replacement cost. Okay? We're going to call this RC under replacement costs. So I'm going to go search for an asset. I need an asset in. Somebody said. Where was that? In Florida? Somebody said, Palm Harbor. Okay? This is the United States. I don't want to look at the whole United States. I'm going to go Palm Harbor, Florida. Let's see if there's anything there. Oh, that's. Is that Palm Harbor? Is that up in Tampa?

Yeah, yeah.

I was thinking Stewart, up where we are. Okay. But here's a couple of deals in Palm Harbor. Done eating. Okay? Done eating is a great market. This says what? Let's see. This says $1.9 million for four units. Now, you're like, man, there's no way I can buy a $2 million property. Don't say no before you have all the data. Okay, what if you could buy $2 million complex, by the way, today, you could buy that with $100,000. You're like, I don't have 100,000. But if you could get 100,000, would you buy 2 million dollar asset? If you knew for sure you could take the 100 grand and turn it into a million dollars in the next two or three years, would you do that? Okay, first of all, here's the good news. It doesn't take 2 million. I still like my other board better. The other board's better. Okay? It doesn't take this called leverage. $2 million. I could put 100 grand down with a Fannie Mae loan. I don't know that it's going to work. I don't know that this deal works. I'm going to finance $1.9 million with 100 grand. That's called leverage. Now, the question is, is that deal under replacement costs, this is how much a door? This is going to be, what, 250,000 a door times four? Yeah. No, no, it's 500,000 a door. I need rents to be about $4,500 for this to work. You're like, how do you know all that? That's what I'm going to share with you today. So you're going to know all the things I know. I'm literally going to download my brain, my real estate brain to you in the next three Hours, Okay. As much as I can. This would normally take, like, what, couple days with me. Like, we do these events four times a year right here in Miami and also in Scottsdale. We. Where you come, you. You fly down to the event and we spend two days with an audience going over deals, working deals. We actually meet four times a year looking at deals, accessing deals, even raising the entire $2 million for a deal when it makes sense. Like, imagine if I could buy a deal with 100 grand. Or you could $100,000. We get two people to put $50,000 down. We own and control that deal for $2 million. Okay, now I'm going to show you some less expensive deals. I don't know that that one makes sense, by the way. This deal. I know based on what this is telling me, this deal makes $80,000 a year. Right now it makes 80 grand a year. So could you get somebody to. No, I'm sorry. I'm sorry. It makes $80,000 a year for each person. You get 80 grand, $7,000 a month, 6,700 bucks a month. And the other partner, your other partner, remember, we split this deal with two people. The other person would get $70,000 a month if you paid cash for this transaction. Okay? Now you're not going to pay cash. I'm going to show you how to do that deal with a lot less money. Let's see, let me find another deal here in that same market. Just because somebody mentioned that market. Here's the deal in Clearwater for 739. It's overpriced, I can tell you that right now. Here's another deal. Prime multifamily. What is this? Fully Florida?

1.8 million. That's down here.

That's down here. No, this is in Largo, bro. It's in Largo. Okay. Okay. Now what I'm going to do is I'm going to open the spread up, because if you're willing to look here, you're willing to look in other places. Let's go to Florida now. Because I haven't seen a deal yet. Meaning if you had me with you every day, and I could instantly look at deals, and I'm gonna go low to high here, low to high. I'm gonna go look for something I can steal. Okay? Here, look at this little deal. This is Ormond Beach. I know Ormond Beach. This is right up the street. Okay? This deal right here is four units. I'm sorry, a duplex, a full duplex, two units. It's a two unit deal, it's $365,000. You could buy that deal right now with Fannie Mae financing. 365 times. What could you buy that for, Jared? $17,000. You're like, I don't have 17 grand, all right? Do you know anybody with 17 grand? Okay, and now if you're saying, I don't know anybody with 17 grand and I'm just going to quit, well, you're not going to buy real estate, but I'm going to show you how to actually raise this money from a partner and go do it with him. Who would have 17 grand? A dentist, a doctor, the car dealer, the chiropractor, the cosmetologist in your town, the whole. Mom, dad. Okay? Your kids got a bunch of junk in the garage right now you're not using. You might have equity in your home, probably got some money in a retirement account you forgot about. There's a bunch of places. Look, if you got excuses, I can't show you how to become a millionaire. And some of you got more excuses than you have commitment. If you have a commitment. If you have a commitment, you're like, I don't. I'm not going to use any excuses like my credit score. These are your excuses. My credit's bad. Okay, good. What else? What else you got, man? Give me everything, okay? I don't have any money. Good. I don't have any time. I'm a single mom. Okay, what else? What are your other excuses? Let's just exhaust all the excuses. I'm stupid. Okay, good. Excellent. I'm a loser. All right, good. I got a drug problem. Whatever, dude. Like, I've had every one of these problems, understand? Every one of these except single mom has applied to me, okay? What else do you have? I don't have connections. I don't know anything. Okay? What else? These are excuses. These are not reasons not to do this. I don't have 17 grand. Good. But what if we could. What if you knew these, these, this $365,000 deal right here could end up being worth another $300,000 and you could turn 17 grand into 300,000. That's a 20x return. So you could go to your mom, your dad, your uncle, your aunt, or maybe take some money out of some other junk you're earning 3 or 4% on. Say I'm going to convert that 3, that 17,000 and I'm going to turn 17 grand into $300,000. I knew this. I knew this when I was 28 years old. I Could not do that with my work, okay? I was making four grand a month, and I could not turn four grand into 800 grand. It was impossible. I couldn't turn 4,000 into 80,000. So I was earning money. I'd put in the bank, and the money would rot. It would just go down in value, or I'd spend it. There's only so many things you could do with money. Okay, you want to write this down so it's a new page. Write it down, new note. What can you do with money? There's only so many things you can do with it. You can, you can. You can. Can you save it, spend it, spend it, lose it? You could invest it. You could.

Lend it.

Yeah, you could lend it. That's a smart thing to do with it. Okay, let's just talk about which one of these work. Okay, well. Well, what are you going to do with your money, though? You can't borrow your own money. I mean, I guess you could, but can you save it? Not really. Not really? That's a myth. You can't save money. You're earning, what, maybe 1%, maybe 2% on your money. They're printing money faster than you can save it. Money has lost 91% of its value in my lifetime. 91% in my lifetime. It's gone down 1% a year, okay? In the last. In the last four years. Money's depreciated by almost 25% in four years. So you can't save it. So quit thinking you can do this, because this is dumb. This is Dave Ramsey telling you guys, or the banks saying, hey, you could save money. Save money in our place. You cannot save money. It's being destroyed faster than you can hold it, okay? You could spend it. That's not going to get you anywhere. That's just going to get you in prison for the rest of your life, okay? In debt. You could lose it. Everybody's done that before. That's not very smart. Or you could do these two things. I could invest it or I could lend it. The only way to create wealth on this planet is to invest your money. You cannot work. No matter how much. How much talent you have, you cannot work and end up being wealthy, no matter how great you are, okay? LeBron James will become a billionaire because he invested his money, not because he was paid 50 or 60 million bucks a year. And that's a lot of money, okay? So then we got to figure out, what are we going to actually invest the money in if we're not going to waste it not spend it, not lose it. What are we going to actually invest the money in? How can I find a deal? What if I could find one deal, by the way, one deal that made me $1 million. Okay, I'm going to show you how hard it is and how easy it could be when you start changing your mind. Let's say we found one house. Like I'm looking at. I go back here and I look in the state of Florida, I'm like, these are all four unit deals. Just four unit deals. If I open this up and I go to another friend of mine or another website and I say, I want everything. Did we put any parameters on this one, Jeff? This is just 5 to 10 units. Notice how it opened up. I'm going to sort, I'm going to filter. I'm going to go. I'm going to go to 200 units. I'm sorry, I'm going to go from five, five to 200. And before you guys say 200, how could you ever do that? It's easier to buy 200 units than it is about four. So I just didn't know that. I'm just telling you the things I didn't know when I was a kid. Okay, look, here's a four unit deal in Los Angeles, California, right now. The starting bid. Who would have ever thought this? I lived in, I lived in Los angeles for, for 25 years. The starting bid on this deal. Oh, this is 12 units. 12 units. And the starting bid is $202.4 million. Let me see, let me go back here. Let me see if I can find something. Just.

Yeah, maybe just scroll down. There you go. Arizona, Butler, Phoenix.

Thank you, Jared. So this deal right Here, this is 75 units for in Phoenix. Here's. Here's a 10 unit deal in Paramount, California. You could never build this again, by the way. 325 a door. Wow, can't believe how expensive that is. I could have bought that for $50,000 when I was there. A unit Rancho Apartments, a lot of stuff in California for sale. Look. Woodland Apartments in East Paulo Alto. 54 units, 13 million. I know that seems expensive. Let's see, we got, man, a lot of Palo Alto. Why, why do I have so much over here?

Kind of searching on that side of that.

You think so? I don't think so. Let me see. Sort. I'm a sort. Low to high.

Sales price.

There's two units in Miami for $5 million. For two units. Insane. Okay, this is what I do in my off time, by the way. I search for things to invest in.

Yeah, go to price and then there's an arrow. Yeah, there you go.

That's not. Oh, there it is. Okay. Is this high to low? Yeah, this went the other way. $95 million deal. Now you guys are like, why would you look at a 95 million dollar deal if you're broke? If you're broke, you should be looking at 95 million million dollar deals rather than looking out your window at another a broke neighbor. If you keep looking at broke, you end up broke. You have to start looking. You cannot see. If you can't look, look to see. Okay, so I got to start looking at other stuff. I was 28 years old. I have always looked at things I couldn't have. Who's got that? How did they do that? What did they do? Like you have. Wherever you look is where you're going to go. Whether you're skiing, on a motorcycle or in life. Where you look is where you'll end up going. What you pay the most attention to. Here's a deal In Rhode Island, $70 million. Okay. Oh, my God. Let's see here. Sometimes it's a waste of time. Brooklyn, New York. $57 million. Jared, this is going the wrong way, bro. Yeah.

Try again. No, you're on price per square foot. Go up one sales price.

No, no. The white arrow next to it. No, no. Well, guys, everybody knows how to do it better, but somebody could have just done it. See, what I'm looking for is I'm looking for a deal, right? Let's say you had one house, okay? You had one house and you, you want to buy this house? Let's say the house is $110,000. And you're like, I could buy that house. Okay, good. But will it make you $1 million? You understand? This one house, for it, for you to make 1 million, you have to buy it for 110 and sell it for $1.1 million. Okay? It's going to be hard to do, but what if you could find two units for $110,000? Okay. You still got to make a million dollars on that. Our goal is to get you to make a million dollars on one deal, not 30 or 40,000. Flipping a house, there's a lot of ways to make money. As I go four units, it becomes a little easier. There's going to be some confinement because of the debt or because of the lender. And I'm going to go over all that with you. See, you're having as much trouble as I'm having, right?

Yeah.

Okay, do you find anything? Just find something with a parameter. I'm looking for something. Look, this is millions, tens of millions of units across the country that are for sale. We're gonna. We're gonna show you. Okay, sure. Show me a mobile home park. What's it? What is it? Okay, this deal is $1.5 million. Now you're like, how do I buy that deal? Okay, well, you might. You may. You may not even want to buy it, but what you should do is the math on it. Remember, my goal is to buy something for whatever number going to raise the money for it. And I'm trying to make a million dollars for our investors. So if I could do this deal with. With no money down. What if I could show you how to buy a $1.5 million property with no money or with 100,000? Okay, now let's just find out about who's here today, how many of you right now you're in a situation with no money. Or there's going to be different categories. You have $50,000, say zero. Put zero in there. If you're broke, you're like, I have no money. Put your number in or just put how much money you have. How much liquid cash do you have to make to invest in a real estate deal? If that real estate deal was almost guaranteed to make you $1 million of profit, how much money do you have access to? 0. 5,000. 0. 20 grand. 50 grand. Thousand. 50,000. 10,000. 100. 200. 50. 50. Can you slow it down for me, guys? Impossible. Okay, 60,000. 100,000. Two grand. Okay, good. Now with your two grand, could you find other people that would actually invest with you? Because that's the money we're going to use. John says he's got a million five. So look, based on. Let's say I found a deal right here in this room with the people we've gathered today. We have enough money to buy this one deal. So don't just think about your money. Start thinking about other people's money. Look, there's seven ways to get rich. If you go to page two of your book, there's seven ways to get rich. And this is the only seven ways you can do. Okay? Number one, inherit the money. Okay? Now, if you. If you either know you're in the path of inheritance or you're going to be shakaraka one day, you either know, hey, dude, somebody's going to give me a bunch of money. My kids are sitting there saying, yeah. They've even asked Me, man. Yeah. How much we getting? I don't know. Every once in a while they get the courage say, hey, are we in it? You know, okay, maybe. Okay, Number two, marriage. You can marry it. Not a bad idea, by the way. Highly recommend it. Okay? It's going to be bullshit either way. Three, start a business. How many of you think, by the way, in the chat, I just want to know how many of you think marrying for money would be a smart thing to do. Put it. Put it. Put a yes if you think it's stupid. Put stupid. Dude, we got some people saying stupid. Francine says, yes, it's stupid. Jamir says it's stupid. Dylan says, it's stupid. Jennifer says, stupid. Okay? I don't know what's so stupid about that. You married a broke person. That's stupid. Okay? Because the marriage is going to be difficult. No matter what, there's going to be parts of your marriage that are going to be difficult. I'm not compromising myself. Every marriage is a compromise on a daily basis, by the way, okay? You're going to compromise the furniture. She wants this, you want that. Where you're going to go today, who's going to be on the left side of the bed? Who's going to be on the right side?

Where?

Bro, everything is a compromise, okay? Don't kid yourself. Three, you could start a business, okay? This is a 98% failure rate, by the way, on number three. You got a better chance, by the way, of being successful in a marriage than you do having. Being successful in a business by twice 2x. Okay? Literally, you more successful in the inheritance thing. It ain't going to happen to you. Number four, buy a business. You could buy a business. This would be much easier path than the first three. You could go out and buy someone else's business. Highly recommended. Don't start a business, buy a business. By the way, we do workshops on number four, if you're interested in that. Our team can hook you up with our buy or sell division, where we actually teach people how to buy businesses and scale their company. Easier to buy 10 businesses than it is to scale your business 10 times. Number five, investments. Okay? Now, a lot of people want to do investing, but they don't take the time to learn to invest. Then they got to figure out, well, what do you want to invest in? You want to invest in stocks, bonds, crypto, real estate. You want to lend money out to people like, what's your investment strategy or vehicle going to be? Number G, Would you.

Would you say that, that when you're like. Because you, you, you say you can get rich with investments, but then some people are like, well, I don't have a lot of money to invest. And then to your point to that would be, well, then you, you don't need it, you can raise it from other people. Would you agree that real estate is the easiest asset class to raise money for?

Real estate is the easiest. Like if you're going to invest money, you're going to buy stocks, bonds, crypto, what else can you buy? ETFs, you can buy real estate, okay, the stocks you can't get leverage on. The bonds you can't get leverage on. Crypto you cannot get leverage on. Not real leverage, ETFs, no leverage. Okay, so these are all X's. This, you can borrow 95% of the money. Okay, very conservatively, you can borrow 75%. At least 75% of your deal's done. So if you had a million dollar deal, 75% will be lent to you by a bank. By the way, this loan is easier to get than a home loan. I'm not talking about a house. Today, where you live is not an investment. Sorry, hate to offend you, but it's not an investment. That's a place to live. You're paying to live someplace. A mortgage is a fancy word for rent. Okay, now if I have a mortgage on eight units and I'm earning 1500 bucks a month, and let's see, what is this zero. I'm slow today for some reason. I'm earning $12,000 a month. And let's say my debt is 5,000amonth, 12,000 is my income, 5,000 is my debt. That's good debt, because they are paying for my debt. When you buy a house and your notes, $5,000 a month, you are paying that mortgage. When I rent four units or eight units and I earn 12,000 and pay 5,000 to Wells Fargo, they are paying my rent. You want other people to pay for everything. Okay, all right, you could get lucky. Another way to get rich is to get lucky. You could do it once in your lifetime, twice in your lifetime. Spend the rest of your lifetime worrying about when you're going to get lucky again. Very difficult to do. Number seven, you could invest in real estate. To me, this is the easiest thing in the world to do. I've invested in everything. Like I bought, I have done. I'm 67 years old. I didn't inherit any money, I didn't marry any money. I did start a business. Very, very difficult I don't recommend it. It's a pain in the ass. It's. It's hard, bro. Like, it's. It's hard, okay? I've partnered with other people in business. I've been betrayed in business. We have a bunch of employees, payrolls, like all kinds of. How many, how many employees do we have here?

200, 260. But the thing is, business is always hard. It's hard at the beginning and it's hard when you get big. It's hard the whole way.

Yeah, it's. It's always hard. It's never not hard. I just got got on the phone with a guy this morning. He's getting his ass kicked. He makes a lot of money, but he's like, dude, like, I'm getting my ass kicked on a daily basis, okay? So even the people that have big, giant, monster businesses, It's a pain in the ass, okay? Investing Warren Buffett. I don't know if you guys have that slide of Warren Buffett. Warren Buffett, he didn't inherit, he didn't marry, he didn't start a business. He's never managed a business. He's never even bought a business. All he does is number five, he invests in business. And number seven is the one he recommended years ago. He said if I could buy 10,000 houses and rent them to others, that would be my business. Okay? He just didn't know how to scale 10,000 units.

So I've got the Warren Buffett graph.

Yeah, if you got the Warren Buffett graph, okay, Warren Buffett last year invested some of, you know, some of his great investments. One of the greatest investors in the world. Okay, Long term investor. He invested in Coca Cola. That's not the one I'm looking. I'm looking for the Warren Buffett, Coca Cola. Last year, the guy that runs Coca Cola made $50 million. The CEO of the company made 50 million or $54 million. You're like, God dang, that's a lot of money. Maybe, but you don't have all the data. Okay? The CEO made $54 million. He has to go in the factories, travel around the world. I know you're not going to feel sorry for him. He's got to deal with people, handle quarterly calls, blah, blah, blah. Warren Buffett, the investor. Warren Buffett made $850 million. He's never stepped into a factory. Who would you rather be, man? You want to be the boss or you want to be the investor? This is my point. You guys got to shift now, okay? I was 28 years old, and I was a salesman, and I was a good salesman and I was earning some money, okay? And my uncle told me, he's like, bro, you're going to, you, you're good at what you do. You're, you got great work ethic, you're a good salesman. You're ear. You're on track. Now you got to learn how to get money to make money, okay? I want you guys to write this down. It's time to grow up, folks, okay? Now you got to get money. Once you know how to get money, you got to get money to yield more money, okay? What am I going to do with this? Because if you don't figure out what to do with this, you're going to quit getting this. You understand? You collect a bicycle, the bicycle, you give it to your kid, your 8 year old uses it, by the time they're 11, they throw it down the garage or the front yard and it just sits, sits there. Guess what? You got a bike. You didn't use the bike. You quit getting bikes. A guy goes into the bike business, gets a bike, figures out how to make 400 bucks on it, gets another bike, figures out how to make 500 bucks on it, turns the bike into an electric bike, builds a business and gets rich because he learned how to get money. To make money. You got to get your ideas to start producing money and then converting that to investments. And if you start with no money, guess what? We all start with no money. Every day you start with no money. I'm always starting with no money, assuming I'm going to use other people's money. Like all the money you have today. All money you have today. I don't have any money in my pocket right now. But Jared, do you have any money? Jared's got some money on him. He's going to pull some money out of his pocket. And this is a very important lesson about money. A man taught me this years ago. Okay, see this? Wait, wait. Cut. Cut to Jared. Cut to Jared. Cut to the Jared. Camera guys. Cut to the Jerry. Camera guys. Okay, see this Jerry Glant right here, Jared Glant. Yeah, yeah, it's terrible. Terrible shot. Jared Glant. I said, Jared, you got any money? Yeah. Now why'd you give me a 20?

Because I don't know if I'm getting it back or not, okay?

I'm trying to make a good investment, okay? So look, look, look. He took $20 and then he gave it to me, okay? Now guess whose money it is now. It's my money, you guys. You guys got to understand it. Let me see that 10. Let me see that 10. Because you don't. So what. What just happened? Okay, now. Now, was this Jared's money? Is Jared's name on this money? No. Andrew Jackson's on this dollar, okay? And by the way, Andrew's dead, so he can't make a claim. So I said, jared, do you have 20 bucks? He's like, yeah. Cause I don't have any money. So his $20, was it his. Now it's mine. Is it really mine? No, it's not really anybody's. I just got to get in the path of money. You guys. The word currency. The word currency comes from current. Current means to flow, okay? There's got to be a flow. Jared's $20 came from somebody else. If you guys don't understand this, you say, that's my money. It ain't your money. You're not keeping it. You're not going to take it with you. It's not going anyplace. It's going to circulate into the economy. You guys that try to. My Uncle Vincent. My uncle Vincent always. He take the 20 bucks and he buried in the backyard. Guess when he died, guess what happened? First thing his son did is run to the backyard and dig that damn money up. Because everybody knew where it was, okay? So Johnny. Johnny, the camera guy, he tries to save his money in a wall over in his apartment. Everybody knows Johnny's got the goddamn money. You cannot save money, okay? You're going to save it. No, it's going to go away. You're going to spend it. It's going to go away. You're going to lose it. It's going to go away. Somebody's going to steal it from you. The government's going to grab it from you. Remember when the. The US Dollar was backed by gold? And Richard Nixon says, okay, guys, it's not back by gold anymore. Boom. Change the game. 19 was 19:30. 34. When did they make gold illegal to hold? The Amer. All America had gold. Everybody owned it. And one day, the federal government woke up and said, you can't own gold anymore. You'll get 10 years in prison.

1933 to 1974.

1933. They said, you cannot own gold in this country anymore. Your gold is not your gold anymore. Turn it in or go to jail for 10 years. Okay? Crazy, bro. You know how many people have gotten rich with number seven? Number seven. This is for all the dummies. Okay? Okay. A man told Me once. He says if you're, if you're not a great student, you don't have any coding skills, you don't have any technology. If you're not beautiful and you got to get a Hollywood, some kind of starring role, you don't have any other way to get rich. Grant, there's one way to get rich that's good for ugly, dumb, slow, not connected. People that don't have money. What's that? Because that's me. He's like real estate. Okay, you guys, look at the people that have made four fortunes in real estate. Can you pull up Sam Zell? Sam's dead now. Talk about ugly. Okay, slow admitted it. Too bad and bad in school. $5 billion, terrible voice. Made a fortune buying the exact type of real estate. I've studied this guy for 20 years. He's not around anymore. He's a legend. Okay, pull up Don Brin. These are regular, everyday people. All these people, by the way, started with no money. Guy named Don Brin. D O N B R E N. You guys should study these people. I studied these people for three years. This three years of study made me like put me on the path to be worth billions of dollars. Because of real estate. I'll end up passing Sam. I won't, I won't. I don't know that I'm ever going to battle past Donald Brent, man. He's a. Who is that dude? Donald Brent? Is that Donald? Yeah. Oh, that's Donald Brent. Okay. He looks good now, but he's basically, if you ever drive through Orange County, Anaheim, he built all that. All of it. I don't mean some of it. All of it. Fred Trump, pull up the old man. Fred. Definitely not good looking, okay? Not. He wasn't well connected. He got connected because he owned real estate. This is Donald's dad. He was building multifamily large apartment complexes years ago. So these people started with nothing, folks, I'm telling you, nothing except a commitment. If you have a commitment, if you have a commitment to creating wealth for yourself, okay, in the chat, if you have more commitment than you have excuses, write the word commitment in the chat. And I'm going to show you today how not to make a million dollars, but 10 million, 100 million or a billion dollars. Let's see how many committed people you're more committed than you have excuses. Because by the way, everybody's got excuses. Everybody's got, I don't have enough time and I don't have enough money and la la la. Okay, I have 20 bucks on me. How many of you think today I could take this 20 bucks and buy a piece of real estate with 20 bucks? How many believe Grant Cardone, with what I know today, could buy, could put a deal together with $20? That, by the way, was Jared's money. That's right. And I. I would look for a deal where I would turn 20 bucks into $1 million. I can't do that with my skill set, and neither can you. There is no skill that you have. There's nothing you can sell on Amazon. I don't think there is. With the drop shipping that you can put 20 bucks and it's going to be worth a million dollars. You can't do it. The ad's going to cost you 20 bucks, and it's not going to work. Okay, so let's talk about how to do that. Now. We need to fine tune, we need to. We need to get specific on exactly what kind of real estate we're going to look for. All right, now there's eight reasons why real estate works. And then we're going to get down and look at what kind of real estate that we want you to focus on that's going to give you the fastest, best, safest path to making millions of dollars. Okay? This is the eight reasons. And you need this because you're going to use this to pitch to your investors. Everything I'm telling you today, you're sitting there saying, man, I wish he'd get to it. This is it. Trust me, okay? Everything I'm giving you right now, that's not in the book you will be using with an investor. Every piece of data I share with you right now that even the $20 I just did with Jared, that's other people's money. I'm going to convert this and do something. How many, how many times have you given me money? How much money have you given me?

Four and a half million, plus probably another 20,000 in bets back and forth.

$4.5 million. 4.5 million. 20. Yeah. Okay, what, what is this worth today? Jared's never bought a piece of real estate on his own other than the house he lives in.

Probably 15 million.

This is worth $15 million today. How much income have you gotten from it over the whole time?

1.8 million.

How much?

1.8 million.

He's earned $1.8 million, about 25 grand.

A month right now.

Free cash flow. $25,000 a month. Okay. I knew Jared. I went out and bought a piece of real estate. I said, jared, you want to Invest in this piece of real estate. Is it a good deal? I'm buying it. Okay, man, I'll put some money in it. He put whatever he had in the deal. Okay? He put some money in the deal. What was that first deal, Jared? How much was the first deal?

First deal was a hundred grand.

He got 100. Tegra Shores put a hundred thousand dollars in. It was an Integra Shore.

Integra or that was the first one. Yeah.

And what was your first check for?

$800.

He got $800 and he's like, I don't know if that's a good deal.

That was not a good deal.

So God damn, I'll give you 100 grand. 100 grand? You gave me 800 bucks, man. God damn. Gonna take me, get my money back, bro. What if I pay you 800 forever, okay? Or what if I do this? What if I give you 100 grand back in 15 months and you still make 800 bucks? That's what happened in that deal. Okay? Now you're like, man, that sounds too good to be true. It is true. I'm going to show you how you can do it. So buckle in. Get something to write with. Take notes. Number one reason you want to do this is passive income, okay? You want to get passive income, okay? We're looking for real estate that provides passive income. A house, by the way, does not provide passive income. A hotel does not provide passive income. A hotel is a different kind of business. If you're doing a hotel, that is a business. You're earning money because you're having to market your hotel. Okay? Two, long term appreciation. A lot of notes to take here. As rents go up, values go up, okay? Unless you guys think rents are going down in America, and I guess they could go down in some places. Rents determine future value. If rents go up, value goes up. Why do rents go up? Printing money by itself will force rents up. Rents have gone up more in the last six years than they did in the previous 16 years because we printed more money. The faster we print money, the more real assets increase in value. Long term appreciation, number three, real estate provides tremendous tax write offs. Okay, I bought a deal last month. Can you show The Boca deal $235 million. I raised all the money, by the way, for 100% of the money was raised from investors. And we're going to write off on this deal. We're going to write off at purchase. We got. We got a loan for 140 million. That means we raised 95 million dollars. Great. Piece of real estate, by the way, look at this. I mean, this is trophy. You cannot look at this piece of real estate, not be like, God damn, I'm impressed. I've seen this piece of real estate at least. I don't know that image 80 times every time I look at them, like, damn, that's beautiful.

The best possible location. You can be in Boca Rich.

Can you. Can you Google it?

Average rents are 4,500 bucks a month.

Yeah. Can you. Can you Google map it?

Would you say the average income in that building is 500 grand a year?

Huh? I'll do it. Oh, you did it. Yeah. Look at this. Look at this beast. Go ahead and turn. Go around it. Get a little tighter. Okay, that. That. That's the apartments we bought right there. Okay, now watch this next to it. Scoot over. So the middle build. You see that middle building? That middle building is a hotel that's being developed. That'd be sure nice to own that, wouldn't it? And then next to that. Okay, see that next one? All the way to the right. There you go. Oh, beautiful. You're doing a great job. That is 5 million dollar condo. 77 condos that are being sold for 5 million and 70% of the building sold out. And you're like, oh, man, that's beautiful real estate. You're like, oh, my God. How am I going to buy this? I found this piece of real estate 24 months ago. I'm like, how can I buy it? At the time, I had no money. I'd already been buying other real estate. So no matter. Even people that have money don't have money most of the time. You guys understand that. They just don't have excuses. I saw the deal. How can I buy it? Okay, you guys got to learn how to ask this question. How could I do it? Not, I can't do it and give up before you even start. How could I do it? What if I got control of the building? Well, first thing I did was chop it up, okay? I know I could get $140 million worth of debt. I only need $95 million. Okay? If the 95 million scales, you just drop off all the zeros. I need 95. I'm just going to trick myself. I need 95. Can I find 95? Boom. I found $95. Jerry gave me 20, so somebody else gave me 75. Boom. Now I got 95. Who's got the zeros? Like, you got to literally take it little pieces at a time, right? What happened was we figured out how to get the other 95, by the way, before we figured out how to get the other 95, as I got control of the building, we found out that we had a condo partner, a guy that wanted to convert them into condos. And he thinks the condos could be worth $360 million. Now at this time I don't have any money and I need basically 95 million. I have a loan I can get for 140. I need cash of 95. I'm having trouble figuring out with my head how can I raise $95 million. I've never raised that much. Nobody ever believes in themselves completely, right? So I'm like this guy says, hey, I can convert these to condos and get 360. We're paying 235 million. It's going to make $125 million. How many of you think if you know you're going to make $125 million, you could start figuring out where to get the 95 from? I mean, if you knew for sure. Okay, if you knew for sure. Now, what if I told you along my progress, somebody said, no, bro, this number is not360, it's 440 million. What if I told you we're going to make $225 million in profit? Can I find the 95 million? See, you got to have a story. If you don't have a story and exit, you have no story to tell your investors. What if I also told you this? When my investors give me $95 million, these people that earn a lot of money, they get an $80 million tax write off. Story just got better. We're basically buying the money. The buying this deal that has the potential to make a couple hundred million dollars with 15 million bucks. Okay, number four, leverage. What is leverage? Leverage is right here. 235. I get a loan of 140. Let me just write it down again. This will go infinite. Infinite number. I'm buying a deal for $1 million.

Word will go infinite slides his board. It will slide indefinitely or it's limited screens.

Okay, good. I'm going to get a loan for $950,000. This is a loan. This is called leverage. Okay, now you got to be careful not to over leverage. We're going to do a whole Q and A section. By the way, if you have another sheet of paper and just write Q and A. If you have questions that you're starting to mount up, all you got to do is put those up to the side. We're going to get all your questions answered today. Okay? Leverage, number five, equity. Equity is this. If you hear me talk about equity today, it's the cash you put into the deal. Equity does not have to be your money. It could be Jared's money, other people's money. Mom, dad, uncle, Aunt Annie, whoever. Okay, number six, principal pay down. So you're going to get a loan with Fannie, and they're going to charge you for interest and principal. They typically call this principal and interest. P and I. Right? So if you get a loan, let's say you get a loan of $100,000. Loan. And they're like, hey, it's interest only. That means you're only. Let's say the interest is 6%. You're going to pay $6,000 on $100,000 a year. That's going to be your interest. Typically, though, P and I is like 1.25 of that. So whatever that is, that's going to be like $7,250 a year. They're paying down 6,000 in cash, and $1,250 of that is going to paying the principal down. Okay, number seven, why people or why eight reasons? Why real estate makes millionaires? Because you have a lot of different exits. Warren Buffett's famous for saying, never buy anything. Where the only exit is, is to sell the asset. Real estate has a lot of different exits. I'll give you an example. I bought a deal. I bought a deal when I was 31 years old. Vista Vista, California. I paid 1.9 million 950,000. That's what I paid. I'm sorry, that's what was recorded. I paid $350,000. And that wasn't even my money, by the way. Okay? I raised the money from other people to buy the deal. I paid these people 10%. The deal made 12. I did great. Okay? I paid $1,650,000. I bought the deal in my name, put it under an LLC, financed $1,650,000. By the way, that was the biggest loan I'd ever gotten in my entire life. Went to the bank with all my paperwork and so said, hey, I want to buy this deal. They said, we want to fund it for you. They loved the deal. The last buyer had paid 5.2 million to buy it and to build it. I paid 1.9 under replacement costs. Okay? Very important. I put 350 down. That's my leverage. I leveraged 1.9. They gave me a loan for $1.6 million and I said, well, let me sign the paperwork in my name. They said, no, you're not. This is not in your name. This is in the LLC name. I said, what do you mean? This is in the property's name? By the way, the property is responsible for the loan, not you. I said, well, well, what happens if I'm the loan? If I can't make the payments? Bro, the property is making the payments. We wouldn't give you. We wouldn't give the property the loan if we didn't think the property couldn't support the payments. This deal made 12% a year on 350. How much is that?

42,000 a year.

$42,000 a year. Okay. I paid $35,000 a year. I made $7,000. I didn't have any money in this deal. Check it out. I raised the rent to 200 bucks. Okay? Take your little calculator, your phone out, grab one. I'll give you a second to grab a calculator or a phone. It was 48 units. $200 times 48 times. It was always occupied. 95% has been for like 30 years. Do we do 12 yet? Times. Huh? Times 12. Okay, the property. When I raised the rents 200 bucks, the property produced another $109,000 a year. Guess who got to keep that? That's right. Your boy Grant Cardone. The deal now made $116,000 a year. Free cash flow, FCF. Plus, I was paying my investors $35,000 a year. Remember? They gave me the 350. I paid them $35,000 a year. I was making $116,000 and had no money in the deal. Other people's money. At the end of two years, I gave them all their money back and somebody came along and made me an offer on the deal. They said, grant, we'll pay you. Oops, $5.3 million for the deal. This is the first time I actually learned about real estate. What did the builder pay for, by the way? See, we got back to replacement cost. It took three years, and we got back to the replacement cost. He built it for 5.3. We got back to replacement cost. I owed. I owed 1.9 million 50,000 to Fannie Mae, plus owed 350. 350,000 to my investors. That. What is that, one point? No, no, that was 1.650. Okay, so what is that number? Did anybody know? 5.3. Less than 1.953. Less. 3.4. Huh? 3.4. $3.4 million. Okay, is what we made on the deal. I'm sorry, not we. They got their 350 back. The bank got their 165 back. And I got $3.4 million. And I had. How much in it? Zero. And I had earned, oops, $116,000 for three years. Did this go away? Oh, God damn. So my math was this. I made $3.4 million first time I became a millionaire. I had earned 116,000 for three years. Two and a half, 2.5 years. And I took all this money and traded it, or 10, 31,000, 31 exchange into another piece of real estate and. And bought myself 90 units. Okay, now let me tell you what I should have done, because that was stupid. This is what I should have done. That piece of property, by the way, today, is worth $20 million. He paid $5.3 million. I thought I made a bunch of money. I shouldn't have done that. This is what I should have done. The guy made me an offer of $5.3 million. How many of you think he went and got a loan on it? Yes, he went and got a loan on it. Okay? He got a loan like this. $5.3 million. He borrowed 75% of that. How much would that be? 53. Just put 5,300 times 0.75. $4 million. He got a loan for $4 million. That property is worth 20 million bucks today. Look it up, Jared. See what it's worth today. I think it's worth 20 million. 18 million. 16 million. I don't know. Something ridiculous number. Oh, my God. I did so good. I made $3 million. I shouldn't have sold it. What I should have done is refinance it. I should have put. Remember what I did, okay? Remember, Remember the math on this deal. You got to stay with the math. $1.9,550,000. I put 350 down. I borrowed that money. Remember that? I have no money in the deal. I go to the bank three years after I owned it and said, hey, guys. Because the rents went up, the value went up. Rents increase, rents increase value. Rents go down, value goes down. You guys understand this? Rents go up, value goes up. Rents go down, value goes down. The new value of the property is $5.3 million. I could have got a loan for 4 million, paid off the 190, the 1,950,000. I would have ended up with $2,050,000. Cash, non taxable event. I got all their money back. All the banks. The first Loan back all my investors out of the deal and. And I would have $2 million of my own money and still own the asset. What's it worth today? Did you pull it?

I think we, we looked. It was 14 million lap. 15 million.

What's the address?

Just 210 Cedar.

210 Cedar Road. Now, this is the other beautiful thing about real estate, okay? The beautiful thing about real estate is there's. It's real. Real estate. Cedarwood. Cedarwood Redfin. What. What are the.

The vanity links for the underwriting calculator and the increased value formula. I. I've asked like three times for these.

Okay? They're Cedar woods, by the way. It's the same blue today that it was when I bought it. 20, 19, whatever, 89 or 95. Okay, look at this thing. Look at this thing. Look at this piece. Still the same color. Still. 48 units. Still got a plot map, still got a survey. It's still real. It's still got a deed and it's still got tenants. It's got 48 tenants. Let's see what the rents are now. Cedarwood Apartments. Let's go to apartment Apartment Finder. Let's go to apartments dot com. There it is. Let's see what they want for rents on this little beast. Call to check for availability. Thank your interest in our community. Let me see, where is it? The property is not currently. Not advertised on. On. On apartments.com. okay, maybe.

I think we. I think the rents were 2,000amonth.

I know, bro, but I. I don't want to think. I want to. I want to show everybody what it is.

There it is right there.

Last sold for $4.3 million in 2002. By the way, that's me selling it, okay? And it hasn't traded for 23 years.

Yeah, the guy, the guy you sold it to still owns it. He has a 2.99% interest rate on it. And the loan amount was only $6.4 million. The original loan amount.

Yeah, well, he got that loan. He got this loan right here. What I tell you? Right here. He did what I should have done. Yeah, but I didn't do that. Okay? Today's value is $15 million.

He refied in 2021.

Now watch. I could have taken $2 million out of the deal. I sold it. When? 1990? 19.

2002.

2002. Okay, so I sell the deal in 2002. I could have got $2 million, put $2 million in my pocket, non taxable event, and still own the asset. Now watch this, what is this? 23 years now, 2002. Yeah, 23 years has gone by. Today it's worth $15 million. I could go back to the lenders today and say, hey, I want to pay off the first loan. I need a new loan. What's 75% of $15 million? 12 million bucks.

11, 2, 5.

Yeah, good, we're going to do $12 million. Okay, I get a loan of $12 million. That loan amount, by the way, is going to me. I'm going to pay off the two million dollar loan. I still have ten million dollars. I've already earned two million. Remember the last two million I got out of it? I'm going to get another $10 million, put cash in my pocket, non taxable event and I will still have a 15 million dollar asset sitting them on financial, sitting at city, sitting on my financial statement, a statement showing me as an asset. 48 units, cash flow positive with $12 million worth of debt. This is how you get rich, okay? Now the question is, are you guys willing to take. You know, you work 40 hours a week, it's a lot, man. You're killing yourself. 40 hours a week. How many hours in a week? What is it, 164 something? 168. 168. You work 40 hours, you got 128 hours left. You got to sleep eight hours a day. I guess maybe, maybe eight times seven is 56. So you still have four, 11. You got 64 hours. Are you guys willing to invest another 64 hours a week to one day have 20 million bucks? You can do this one house at a time, two houses at a time, three houses, four houses, 20 houses, 48 houses. I'm going to tell you the easy way. The easy way is to find 32 units. 32 units where the rents are too low. Just show you a little hack here. 32, raise the rents 200. Multiply times 12 times 90%. Divide that by 06 and I'll bet you you make a million dollars every time you do this math. Find 32 units. 32 times 200 times 12 times 0.90 divided by 06 is $1,152,000. Every time you do this math, there's a little algorithm, a formula. This is the million dollar formula for real estate, okay? Find 32 units where you can raise the rents 200 bucks. Do that 12 times in a row. 90% occupancy in a 6% cap rate market, meaning you want a 6% return to your investors. And every time you do this, by the way. You could do this with other people's money. 100% of other people's money and a loan. Return them 6%, which is five times more than they get at the bank right now. Literally. Give your investors 6% a year. Guarantee it to them if you want to. And you would want, you would walk away with a million dollars. Hey, Scarlett, I got to call you back, buddy. You're the bet. You're the best. I'm live right now. You want. You should come watch this. I'm gonna send you. I'm gonna send you a link. You need anything from me. Everything. All right, you're not on a ledge right now. You're not on a bridge right now about to jump or anything. Are you. You sure?

Pretty sure.

Okay. I love you. Bye. That's my daughter. So they call, I answer. No matter what. Okay? All right. Now, this. The. The number. This is called multiple exits. I showed you. I could sell it. That's what I did. It was the wrong thing to do. The second exit could have been, oh, dude, I'm not going to sell. I'm going to basically exit without leaving. I'm going to exit my partners. I'm going to exit the old debt. I'm going to stay in the deal, and I'm going to duplicate this process and create real wealth. And number eight, by the way, if you guys think that that is a brilliant formula right there, just put. Yeah, Grant Cardone is a genius. Okay, good, good. I just want to see one of those in there. Good. Thank you, Gene. Gene. Oh, genus. Yeah, you guys are funny. Okay, number eight, the inflation hedge. Look, as money goes down in value, you guys that have a million dollars sitting around, and I know some of you in a room do have a million dollars. You. You got a million dollars. It's been sitting in the bank since 2020. That money's worth about $650,000 today. Okay, if the value of the money went down, what happened to the value of the real stuff? Okay, gold went up. Real. Real assets went up. Okay? Any stock market went up. Why? Why is it going up? It's going up because we're printing money. It's not going up because prices just go up. Okay, prices don't go up. Prices go up because we create the money Supply or the M2. As money goes up, we create more of this. Okay? The value of that money goes down. As the value goes down, the prices of bread goes up. Anything real shovels, bread, real estate, rents. Those are real things that you have to trade for. Okay? Most equipment should go up in value. Technology, though, defeats all that. Okay? Technology actually gets cheaper and cheaper as we create more technology, most of which is funded off of borrowed money that becomes cheaper. Okay? Now why you don't need what you don't need in real estate. Wow, why did I go so negative? Okay, what I'm going to show you right here is what you don't need in the kind of real estate that I'm talking about. Number one, you do not need a license. We're on page four. Four, you don't need a license. You don't need to go out and get a license to sell real estate. I don't have a license. I bought and sold $5 billion worth of real estate without a license with any state. Do I have any kind of license? I don't have a certificate. I don't have a license. I don't have a degree. It seems cool to me. Okay, number two, permit. You do not need a permit to buy and sell real estate. You, you need a permit to build it, but you don't need a permit to buy it. I don't think. Number three, I don't need a degree. Number four, you don't need money. So all you hacks out there like, I gotta have money. I gotta have money. No, you don't. You don't need money. Stop the madness. Blackstone doesn't have any money. Vanguard doesn't have any money. Goldman Sachs doesn't have any money. Okay? J.P. morgan's got $4 trillion of assets under management. They never put money in a deal. Number five, credit. Okay? None of these people have credit, by the way. Credit is fabricated. You guys out running out, trying to increase your credit score. You do not need credit to buy the kind of real estate I'm talking about right now. You need credit to buy a house to live in, because you're the one living there. But if I could get 20 people, 20 people to move into a place, that place now has value to the banks because of the 20 people, not the one person that lives there.

Number six, the banks. Basically, the banks lend on this type of real estate like it's a business, not like it's a normal piece of real estate. So a normal business, you have revenues, you have expenses, you have profit. These types of deals work the same exact way. That's why a bank is more likely to give you a loan on a deal like this than they would for a personal house. Because personal house, you have personal credit, your income, all this stuff they don't care about any of that. You want to just.

This is easier to get than a car loan. There's no loan easier to get than a multifamily real estate loan. As long as you're looking at four units, you should be looking at four or more. The more, the more, the easier. When it gets bigger, it gets easier. Now you can get too big or they could penalize you. The bank could penalize you because you don't have experience. Okay, but experience managing, not experience buying. They're going to ask about your experience managing the real estate. But that's easy solution because you're just going to say, I have a third party managing. Okay, now here's some mistakes I made early on. I'm just setting you up. Remember what the target is. Everybody know what the target is. What kind of real estate are we looking for? For. I'm going to give a. I'm going to give a free visit to our offices to the first person who has the answer. What are we looking for? No. No. Well, yep, there it is. There it is. You can come to our offices. And Dylan. Dylan won how? We're looking for $1 million on the first deal. That's what you're looking for. Multifamily just happens to be the vehicle you're going to get in to get you that. Because it's the easiest. I'm the teacher giving you the answer to the question. It's just the easiest of all of them. It's not office, it's not hotels, it's not industrial, it's not storage. It's apartments. Now here's the mistakes I made made going in the beginning. You guys want to probably earmark this page because no matter how many times I tell you these are the mistakes I made, you're still going to want to make these. I'm telling you. I don't know what it is. The matrix. Blame it on. Blame it on the Matrix. But you are going to be tempted by the same mistakes that I made. Number one, starting too small. Everybody does it. I don't know what the deal is. I think we were all programmed to think that we have to start with baby steps. Okay? You got to walk before you run. Well, actually, babies don't walk, okay? They, they actually run first. They run across the floor. They don't walk. Okay? They're, they're, they're like, okay. And then you're going to take these little tiny baby steps and you're being careful, and it's like, I got to start somewhere. So I'm going to start small first. You don't have to. It's going to be a mistake. I made it on two deals and the next deal I did 48 units. The first two deals I did, by the way, still 40 years later, would not make me $20 million. One deal could have made me 20 million, not 1 million. The first two deals I did could never make me 20 million in 50 years. Number two, wrong location. You're going to be tempted on number two, you're going to sacrifice your price. You're going to be like, I got a better deal. A better deal does not come with the worst location ever. Location. Or you're going to pay for the location one time and then you're going to be punished or rewarded for it for the rest of your life. Number three, I wasted time on single family homes. You guys can do it. You're going to want to do it, you're going to be tempted to do it. No matter how many times I tell people, don't buy it, they're still going to do it, including me. Don't buy a single family home and then I go buy one. Because there's something about owning your own home that is so like embedded into our DNA that I have to own my, my, my, my cave. Number four, you're going to use short term leverage. Okay, it's a mistake. I've done it. I've made the mistake. Sometimes it's cheaper. It looks like it's easier to get in and out of. Number five, you're going to make the mistake of not raising money for other people and try to do deals just with your own money. Number six, you're going to treat it like a side hustle rather than your main hustle. A person can have two main hustles, by the way. I don't have to have one hustle and treat one like a side hustle. Number seven, you're going to get momentum and then you're going to stop. Every real estate investor I have ever known has done this. They get a little momentum, they start swinging and getting and going and then they're like, okay, I got to take a break now. And number eight, I was not mentored in the beginning. I didn't reach out for help. I didn't go ask questions. I didn't get a coach. I didn't go get sophisticated data from people. Today it's easier than ever. So I want to congratulate all of you that are here today with us getting mentored. By the way, we have a Mentoring opportunity that we offer once a week. We have a big audience of people that come, and every week, we work with them every week to answer their question, show them where to go with our material to get answers. Look at deals, underwrite deals, talk about deals, talk about why deals are good or bad deals. And we do that every week. Okay? Get mentoring folks. Get it from somebody. Get it from someplace. You're either going to pay the hard way or the easy way. And the easier way is to always get some guidance. Okay, now here's some myths I want to share with you. Page six. Real estate myths. All real estate is equal. It is not. It is all very different. Okay? A house is not a home. A Vicky car. Can you pull that music up? A house is not a home and a home. Vicky car. C A R R. Come on, guys. Okay, miss. Okay. Real estate is not equal. Number two, real estate management is a problem. It's only a problem if you have to manage it. Y' all didn't find it yet, man. Y' all slow, man. Play it, man. Hit it. That's right. Until someone's living there. That's right, that's right, that's right. Okay. All right. Play Luther's version. Yeah, play Luther's version, man. Come on, man. Give it to me. Okay. Management is a problem. Only if you're the manager. Okay, now let me just make a note here on number two, the management thing. 1 to 4, 4 to 8, 8 to 12. Dude, the management is very expensive. You're going to probably pay 10% for management fees. The bigger you go, the lower the cost of management. Okay? Just start blasting anytime you're ready. Okay? Number three, loans are hard to get. Not true. The loans are very, very easy to get. This is the easiest debt in the world. In fact, the loans are like 5% down, mandated by the federal government. They have to give this money, money out. You guys are looking for grants and funding and federal loans. Dude, this is the easiest money that you will ever get in your life. Okay, number. Number four, you need good credit, okay? No, you do not need good credit. You don't need any credit. By the way, you could have bad credit and still get this debt. Number five, you need money. Actually, you don't need money. You need equity. You're going to need some cash to put down at some point. But you don't need your own money to do these deals. Number six, it's complicated. Now, this is actually one of the simplest things you'll ever do in your lifetime. Y' all didn't find Luther yet, man? Damn. Don't leave me hanging, bro. This is a slow train. We got the slow crew today or what? Get me into it. They said the audio from the music's choppy, but gloom is not a house. Oh, yeah, that's good. I gotta put that one. I gotta put. Okay, good, good. Thank you, man. Thank you. Bringing me back now. Okay, Real estate is not complicated, okay? I mean, it's actually easier to buy a piece of real estate than it is for them to put Luther Vandross to pull up. Pull up his. His music number seven. It's only rich people can do it. No, that's actually not true. Okay? You don't have to be rich to do this. The banks love the real estate. Okay, Here's a fact for you. Bank of America will not give you a loan to buy bank of America stock, but bank of. And might not give you a loan to buy a house and might not give you probably won't give you a loan to invest in your business. They won't give you an equipment loan, but they will give you a loan to buy apartments, but not a loan to buy their own stock. Okay, Number eight, you need a license. No, you don't. You do not need a license. Okay? These are myths. You don't need a license, by the way. You don't need a broker. In fact, you're not going to have a broker on this deal. There will be no two brokers on a deal. Okay? Do not make the mistake working a real estate deal of saying to Robert, let's say Robert's the broker on the deal. He's the listing broker. And you say, robert, hey, Robert, I want part of your fee because I'm a broker too. Do not do that. There's not going to be two brokers on this deal ever. And if you have two brokers on the deal, you're complicating the deal and you're probably going to blow it. Okay, I'm going to open this all up to questions here in a little bit. So if you got questions going on right now by anything I say, just save them. I'm going to bring you guys in for questions here in a second, ok? By the way, if you're finding this to be valuable, put a big 10x in the chat. If you, if this is a value to you, if you're committed to buying real estate and this is becoming valuable to you, just put a big 10x. Also, if you have questions, you can throw them in the chat. I'll see them down here and do my best to answer them before or during or while or prior to us bringing people up. Okay? All right. Why is now the perfect time to start buying real estate? Number one, the Trump victory is very important to real estate. He's a pro real estate guy. He hates banks. He hates high interest rates. Rates went down yesterday, by the way. I don't know if y' all saw it, but, man, they. Yeah, thank you. Let's see here. Let's see what rates did yesterday. When you're looking at rates for those of you who are maybe more, more sophisticated or a little further down. Okay. What you're looking for on rates is you're looking for a three year, five year, seven year and a ten year. And you can go to CNBC or any of the sites. Come on, come back. Let's see here. Today, the 10 year, the 10 year is 4, 2, 1, 6 and the 5 year is 375. And then what they're going to say is they're going to add a spread above that. Okay? So I'm just giving you the language. This, this is the importance of mentoring. Like, the bank's going to be like, yeah, it's 375. You're not going to get a 375. You're probably going to get a spread of 140. I'll get a spread of 140. Your spread might be 180. So they're going to tell you things like, yeah, we're going to do a 375 with a 180 spread. Okay. Because maybe, maybe you have less experience. You have more experience and more trust in the marketplace. And they know you. They're going to give you a lower spread. Lower spread. That means this money is going to cost 515 today. Okay. On a five year loan. Okay? Same thing here. There's going to be a spread 180, maybe. So this money is going to cost 6% for 10 years. They'd rather give you a shorter term loan than a long term loan. Whatever. We'll get into all this, okay? But, but Trump hates interest rates. Every day he's banging Jerome Powell. Lower the interest rates. Lower the interest rate. Lower the interest rates. Number two, tax laws have changed. Now the tax laws on real estate, your parents, if your parents knew what I know today about real estate, you guys would probably. What is it? When you get rid of your parents, what's that word called? Yeah, you would emancipate all your parents. All parents would be emancipated today. Okay? In 1990, in the 1990s, if you bought a million dollar piece of real estate, the write off that day was $1 million. No matter what you paid, you pay 1 million. Boom, your write off was 1 million. That's gone today. But today, Trump just brought back accelerated depreciation. Now, back then, if it was $1 million, whatever the purchase price was, it was $1 million write off. It was amazing. That means day one, your cost basis is zero. So if you earned money, okay, you basically take a million dollars, transfer a million dollars into a piece of real estate, or get a loan for a million dollars on a piece of real estate, you have this fabricated, illusionary one million dollar loss against all income going forward until you match the million dollars. So if this place made a hundred grand a year, I'm just making up numbers for the next 10 years. You paid no income on that. Or if you're a dentist and you make a million dollars a year, boom, you pay no income on your million dollars. Your parents and grandparents should have been buying all the damn real estate in the city. It didn't matter whether it was 20 grand, 40, 40 grand, 80 grand. They should have bought everything, okay? They should have bought everything possible. They would have a zero cost basis. They would have never paid taxes for the next 5, 10, or 15 years. Why didn't people do that? Because they were too busy watching the Johnny Carson show and listen to Luther Van Dross, okay? And they were too busy buying single family homes to raise your ass in, okay? Five kids trying to figure out how to get ahead, working their ass off. Mom's at home every day cooking three meals. You guys are going to football games and cheerleading bullshit. Rather than figuring out, hey, how do I create wealth in my life for myself and my family so that we can break this freaking cycle of poverty that affects the lower one third of America and the middle two thirds of America and traps us into never having anything. You guys got to figure out these tax laws are changing, okay? So when I buy a piece of real estate today, I buy, I buy a piece of real estate for $10 million or whatever the number is. I'm going to probably write off, let's say the land's worth 2 million. I can't write off the land. You used to be able to write that off. I have $8 million, some portion of this, probably $4 million. It's called accelerated depreciation. I'm going to write it off in year one so I could buy this on December 31st. On December 31st, I could buy this piece of property and take a 4 million dollar loss. And I haven't even earned any income. I could write that off if I'm a professional real estate. Professional P R E I professional real estate investor. What's the tax code? Look it up. On. I could write 100% of this, this $4 million off. I only own the property for one hour and I could write all my. I could write this, this four million dollar loss against all my income for the previous 364 days. What is it? 469C. 469C7. Okay, code IRS code 469C7, which should have that in the book. Boom. I'd write $4 million off. Now, let's say you earn $4 million that year. Your, your adjusted gross income AGI. Your AGI is $4 million. Guess what your tax bill is that year? Zero. Let's say you only earned 100 grand that year. Let's say you earned 100 grand. Oops. Let's say you earned $80,000 that year and you had a four million dollar tax loss. Your $80,000 goes to zero. And you have $3,220,000 worth of tax losses going forward until it expires. And it never expires until you use it. You don't use it or lose it. You have 3.2 million next year. So if you divide, if you keep making $80,000 a year, let's see how long I can go. 3 million divided by 80,000. Divided by 80,000. I could do that for 40 years. Okay? This would not expire for 40 years. Until that is gone, $3.2 million of it. I wouldn't pay taxes. Federal income taxes. Okay? If you guys hate the IRS as much as I do, and I don't think you do well, put a big middle finger. Do we have a middle finger emoji? They got to have one, right? Come on, man. Is there a middle finger emoji in this chat? Yes. Yes, there is. Okay, you can do a white one, a brown one, a black one. Just give me a middle finger. If you hate the irs, by the way, this is a tax code. This is approved by the federal government that if you did this, you would get a tax refund every year. Even all that withholding that you paid in every two weeks, all that withholding would come back to you in a form of a, a refund. Number three, we are in a massive market correction right now. Historical, unprecedented massive market correction. Now, it might not look like it to you, but I'm going to show you. This is a news article that was written right here. Okay? Again, real estate, you can't really get ripped off in real estate because real estate has a track record. There's real data that supports it. So if you're ever in front of somebody, maybe somebody's trying to teach you about real estate or get you in their deals. Say, show me your deals. If they won't show you their deals, there, it's a real data. Okay, you show me the last deal you did. I just came in here, I was going to tell you about a deal I did last year. And I said, grant Cardone, Cardone Capital and Nuveen Business Journal. Okay, did an article on two deals that I closed. Oops, can't open that one. See if I can open this news article. See, Cardone closes on two South Florida rental assets, one on the way.

Cardone closes on two S Florida rental.

Assets, one on way.

Real estate investor and promoter Grant Cardone has purchased two Miami area multifamily properties.

The Manor at Flagler Village in Fort.

Lauderdale and the Laurels at Jacaranda Implantation.

The S. Florida Business Journal reports that new beam was the seller. Can they hear this? Retail space. Okay, it will be rebranded. So it's my other daughter.

Really fun.

Can I call you back, buddy? I'm. I'm. I'm right in the middle of something. Oh, my God, your nails look so good. Oh, my God, you're beautiful. Oh, my God, it's fantastic. Look how terrible this is, guys. Okay? This is what your kids do. This is what your kids do. They waste their money. That's not my money, by the way. You can do anything you want with your money. Lucky girl. I'll call you later. Great job. Okay. Okay, so basically it says a Cardone closes. If you guys see the article right here on two deals, Cardone's believed to own 15,000 apartments. She believed not because they didn't do their own homework. So it's not 15,000 units, it's 14,200 units. And. And it's a half a million square feet of office space. Okay? But if you go to cardonecapital.com you're going to see. We see a deal that we're raising money for right now. You can't fake this, folks. The biggest players in real estate will never fake anything. It's real. Goldman Sachs, JP Morgan, bank of America. Like these guys. Nuveen, Avalon Bay, Camden. I'm giving you all the names of the biggest players in the space. Anybody that Won't show you what they own. Like this. Okay, that's great. That's the deal you're pitching right now. But show me the rest of your investments. Okay, here's our current deals. There's a deal we did in January. 10x Space coast, the agit, Flagler. This is a third deal right here. This one right here in the corner. I don't know if they can see. I don't know how to point to this, but this third deal, the Edge of Flagler, that was a third deal we did from an institution. I'm giving you. I'm just giving you our playbook. I'm showing you. I'm not just showing you where I'm buying when I'm buying, what I'm paying. I'm also showing you who I'm buying from. Okay, there's the Jacaranda deal that. That was just in that article. There's the deal next to it. 10x Flagler Village. We bought all those from one insurance company. Insurance companies are a great source of great real estate. 10x forum in Tampa, Florida, that was bought from Fundrise. All cash, by the way. All four of those deals were paid for in cash. No debt. 10x Tarpon Springs, the Edison we bought a year and a half ago, it already had a loan on it. Check this out. The deal was 100 million. They had a $50 million loan with. With interest only for eight more years. And we bought that. We bought it with the loan in place. Okay. It already had the loan. And then we went and raised 50 million from our investors. That's going to be a phenomenal deal. And the deals are only getting better. I'm just telling you. I bought. I bought $700 million worth of real estate last year. The deals are getting better this year than they were last year because we're in this market. Correction. 10x Miami River. 10x Weston. 10x Weston is 680 units in Weston, Florida. I think it's 680. What's the actual number? Let me see. Huh. It's 588 units. Check this out. 588 units. What do we pay for that thing? Let me see. I got it. My. Have we given them the. My spreadsheet? We should give it to everybody. Let me see. 588 units is a cool deal. And nothing's working for me today. I do. Okay, there it is. There it is. Okay. See this deal? Weston. They're seeing my browser right now, so. By the way, nobody's going to show you all this data folks, and if they don't show it to you, you should just run as fast as you can. Don't even have a conversation with them. Okay. 10X Weston fund number. What is that? 19588 units. We pay $244 million. I don't know if y' all can see this. Okay, now watch. You're like God dang, that's a lot of money, man. $244 million. OK, okay, okay, it is. I mean it is a lot of. It's a quarter of a billion dollars. $244 million. It's 388 units. 58588. Sorry. 588. Okay, now watch what happens here. Do a little math with me. If I raise the rents $100, let's say the rents were 1827 and I'm going to make them 1927. We're just going to add 100 bucks to them. How many? Think adding a hundred dollars to the rent ain't gonna kill anybody. These are condo approved Weston, full all the time locations. Ridiculous. You cannot build another unit anywhere in Weston, period. End of story. Without exaggeration, how much is that? Yeah.

12.8 million a year at a five and a half. Okay, no, no, no, no. That's total added.

How much income? 1827. So it's 700. What's your occupancy?

705.705K per year.

$705,000 of new money a year.

Assuming you kept all of it.

Okay, but it's $12 million of new value. Remember, what determines the value of the real estate? Rents. Equal value increase rents increase rents decrease rents, decrease value. Period. In the story, the. There's nothing complicated here, folks. We went in, bought 588 units, moved the rents, 100 bucks and we picked up $12 million in new value for our investor. But that's not the end of the story. The end of the story or not the end of the story? A better part of the story is this. There is a shortage of great housing in, in Weston, Florida. You cannot buy a house over there. So again, if I'm raising money from an investor, I'm telling a story. Weston, Florida homes for sale. Let's see. Zillow. Look, look. 691.1 million 891.59. 962,887. 951 million. 1.4 million 9809-356808-78785, 720. You guys get the point. What if I sold these. What if I sold these units for. What was the biggest number with the smallest number y' all heard in there? There wasn't a five hundred in there, was there? Was there? Six hundred. I saw an eight nineteen. Yeah. So what if we undercut everybody? 819, 890. 690. What if we undercut everybody by one hundred grand? 590. 590 times 588. 588 times $590,000 equals. How much is that? $346 million. What did we pay for it? 244. $346 million. We paid 2. What? 244. We'd make $122 million. The property, cash flow, 6% a year. So we'd have made 6% on the two hundred and forty four. We made 12 million bucks a year times 3. We made $36 million for our investors, plus 122 if we sold it now. We could do this. We could. Just because we own the property, we could finance these and go after people that can't buy a house and say, we're going to fund your house. You're going to put 10% down. Only 10% down. We're going to finance the rest for 6% a year. We'd make 6% of the mortgage, 6% on our cash flow, and still make $122 million. We'd be the bank, the owner, the renter. Like these are the multiple exits that you have possible. We could do that, or we could just keep the asset, tell this story and take all this. All these assets that we have, which is what your plan should be. Take all these assets, bundle them up, and go public on Wall Street. Other people have done it. Okay, okay. We're in a market correction right now. You're able to buy real estate right now for somewhere between 10 and probably 25% below replacement costs, maybe more. All right, number four, there's a glut of inventory. If you're not finding a glut, you're not looking in the right places. Number five, the institutions have been sidelined. All the major institutions that people normally dominate in this space are sidelined. They cannot buy real estate. The big boys, the Blackstones, the big giants, cannot actually go out and acquire a lot of real estate right now. Number six, Fannie Mae is extremely. Fannie Mae and Freddie Mac are very, very aggressive federally to put funding out into the streets for this kind of asset. Number Seven, inflation is your friend. This kind of real estate is inflation friendly. It benefits from inflation. Number eight, the tariffs actually reduce the potential for new buildings. Okay, so steel, copper, glass, metal, concrete, all that stuff becomes more expensive, which means they limit building. They limit building. The value, your buildings go up. Okay, now I mentioned earlier that all assets are not created equal on page nine. And we're going to open up the questions here in a second. All assets are not created equal. If you compare apartments to single family homes. You're on page what, nine? Page nine of your workbook. If you compare apartments to single family homes, to stocks, to bonds, to cash, or even to bitcoin, you'll see more green buttons, more go buttons on apartments than any other asset class. It has high cash yield, equity buildup, leverage. It's a hard asset, has tax advantages, multiple exits, but it has no liquidity. If you look at, let's say stocks, no cash yield. Typically it does have equity build up. It has moderate or almost no leverage. That could actually be red or half red. At least it should be yellow. Red. It's a hard asset. No, it's not a hard asset. It's a piece of paper created by some bank. Tax advantages. Zero. Multiple X men. The only exit here is to sell it. And it has liquidity. Yes, it has extreme liquidity. That should be green, by the way. Stocks have instant liquidity. Okay, bonds. Anybody buying a bond right now, it's crazy. Like, it's just insane unless you know where interest rates are going, man. I mean, I don't know why anybody would put money in a. Oh, we're backed by the federal government. Okay, but you're still not paying anything. So that all assets are not created equal, folks. You got to pick the asset that's best for you. Bitcoin. Bitcoin. High cash yield. Nah, there's no cash yield. That should be red. There's no yield, folks. I don't care how many times somebody says bitcoin has a yield. It has zero yield. Any yield that's coming off the bitcoin was manufactured by another piece of paper. Equity buildup, monster leverage. Very little. It's a margin call. It's very risky leverage. Hard asset. Absolutely. Probably the hardest asset on planet Earth is bitcoin. Tax advantages, zero. Multiple exit, zero. Okay, liquidity. Oh, yeah, Massive liquidity. Probably better liquidity than even stocks. All right, so why is real estate better than all these other classes? Let me make an argument for that and then we're going to open up to questions. Right, Jared? Okay, number One. Yeah. It protects your capital. The most important, the most important thing in any investment, not the return. It's number one to protect your capital so you don't lose money. If you don't lose money, you don't lose money. I have a deal in Austin, Texas, right now. I got $40 million sitting in the deal and it's dead, okay? It's never done well, it's pristine real estate.

Yeah. So what do you think the play is on that one there, man?

I don't know, bro. It's been a long time, huh? What's the name of it?

Gable. Is it? Gable's Grandview.

No, 10x. It's 10x Grandview. Yeah. Here it is. Beautiful piece of real Estate, Man. 88 acres in Austin, Texas, overlooking multi million dollar homes.

Man, that's a good looking pool.

Dude, the whole place is good looking. What are you talking about? Look at, look at the views, man. We don't have many pictures on it. That's sad. Maybe that's the problem. Look at this beast. Look at this. 456 units, 88 acres, absolutely gorgeous. Surrounded by trees. It has been a shot deal, okay? Like, I don't know how to tell you any, but like S H I T. Shit. No, no, not a deal. A shitty deal, okay? I have $40 million dead, sitting there, maybe earning what, 3%? 4. But I protect my capital. I didn't lose my 40 million, okay? It's sitting there protected. Now, if I had $40 million sitting in the bank, that 40 million would have gone down in value. I'd have lost at least $10 million. It would still say 40 million, but the truth is it can only buy 30. Okay? So number one most important thing is protect capital. Now, second most important thing is that you get cash flow. By the way, this deal has done both of those. I haven't been funding the deal. The deal is funding the deal. The deal funds all the expenses, all the taxes, all the problems, all. All the tenants, all the evictions, everything. And there's positive cash flow for our investors. In fact, that deal last year did. Let me just see here. And I cannot tell you how important it is. Pick a partner that's willing to be transparent and show you everything. If you don't, you deserve every ass whooping you're going to take, okay? When they. When they rip you off, you deserve it. I'm telling you guys how to protect yourselves. Heed the warning or don't. And by the way, if. If the investor.

Got it.

Yeah. There's 10x ramp view. Hundred. We paid $101 million for it. We're capitalized at 104. Our original invested equity was $43 million. I said it was 40. It earns $2.2 million a year. How long we've been in that deal, Jared?

Four years.

I think I'm gonna go five. We've earned $10 million on our investment, and we protected our $43 million. So, you know, that's a 25% return on my money. It's still a shitty deal. Can't exit. The Austin Marketplace sucks right now. They overbuilt it. Nothing's moving, nothing's selling. I don't want to sell in this environment, I would not do well. We would not make money if we sold right now. If I sold right now, we would lose money. But we're not sellers. Okay? So first, two things. One, protect your capital. Two, protect cash flow. And you need to be able to go through long periods of time. So when markets are down and they can be down, and they only go down for one reason. I'll tell you that in a second. Okay. That you at least have cash flow number three, long term appreciation. Long term appreciation is not four years. We've been in this deal four years. We bought it for 104, and it's done this. Okay? The reason it did this is because, let's see, four years. That was 21 or 20. Jared. When did we buy that? No, we bought it before 20. This is 19.

Let me get the address here.

Yeah, I bought this in 19. No, I bought this in 18. Geez, we've had this a long time. 18. I've had this seven years. Okay? See this interest rate we had Covid happen in 2020, we had. That was a problem. And then we had all this construction that happened. Rent, interest rates dropped. They went to zero. Boom. Construction went up, and now we have all the supply. And here we are in 2025, and we don't have the exit we want. So I probably got to wait a few more years. So this is seven years. How long is along? I don't know. I know this. I've never, ever had to sell a deal and lose money because I just wait the cycle out until the cycle improves.

And that's the advantage that you have over some other people that raise money on deals and put themselves in positions.

Where they have to, because they bought it with only one exit. The exit was, I'm buying it three years from now. I'm selling it. I only got money for three Years, my three year money runs out, I got to sell it. Interest rate market was up and if interest rates are up, the price is going to be down. And then I got to sell at a bad time or I'm under capitalized. So that's what you don't want to do. We. Look, look, if all, if too much of this is coming at you at one time, don't worry about it, okay? Look, I'm gonna be here all day today with you and tomorrow, so we'll just walk through it. I'm gonna do some Q and A with you and get everybody comfortable. Anybody can learn this stuff. If I can learn this stuff, you can learn this. I didn't know any of this when I started, okay? Tax write offs. Now remember in this Austin deal that I'm telling you is shitty. What you don't know is I 1031 a property that had made me $40 million. And in order to not pay taxes, I 1031 into that Austin property and I protected a bunch of investors from a ten million dollar tax event. So not only do we protect our capital and get positive cash flow, but we also protected ourselves from a tax event. In addition to when we bought the real estate for $104 million, the professional real estate investors involved in that transaction also benefited from the accelerated depreciation of that new asset. Now this is how whack the tax code is. Just assume that this property sold three times. Let's say it sold for 80 million and the next time for 90 million and to me for 100 million. I don't know that that's true. I'm just making this up. But it probably sold at least to me and to somebody else. I think it's sold twice, but let's just pretend it sold three times. Scratch that. I know for sure it sold twice. You guys understand this guy wrote it off for 90 million with the IRS. All his investors got a write off of some portion of $90 million. They sold the. That's number one. They sold it to me for a hundred million dollars and I wrote off some portion of that number. I kept it for seven years too. I'm going to sell it to somebody for 140 million. And guess what they're going to do? They're going to write off some portion of this asset. That's how whack the code is. And Donald Trump just passed the accelerated 100% depreciation on any new equipment built, any new purchases, bought, anything with any kind of usage. You get to write off 100% accelerated depreciation in year one. Somebody could buy this from me in year one, by the way. Somebody could 1031 a deal. They could, like, take profit, $50 million of profit from a deal they sold in Los Angeles and make sense of overpaying for my deal in order to avoid 50 million and get another $50 million for the tax write offs because they bought it. Stocks don't do that. Bitcoin doesn't do that. I mean, nothing does that, folks. You guys aren't taking advantage of this, you know, like, you don't need to.

Move to Puerto Rico to not pay tax, bro.

It's so stupid. I was on a. I was with Jordan the other day. He's like, I moved to Puerto Rico, Rico, bro. Why you got to move to Puerto Rico? Get creative with inside the country, okay? Leverage using debt. Okay? Keep in mind, watch this if you want to. If you want to see how unfair the process is. I paid 104. I put $40 million down from another deal. I financed 60 million. I wrote off 40 million when I bought it. That's what I put down. Literally, I put 40 million dollars down and got a 40 million dollar write off, you understand? I got to write off almost 40% of the purchase because of all the refrigerators, the roofs, the gutters, the piping, the problems. Things that depreciate that go down in value have to be replaced over time. Well, you did get written off.

You did double bang on that one.

Double bang plus, because you got the.

40 million in depreciation plus the no tax on the, the 1031 and no.

No tax on the, on the deal I sold. It's not fair, folks. And it ain't fair. It ain't fair because you ain't learning how to play the game. So shame on you. Number, number six, benefits from inflation, okay?

Oh, the other thing, too, on this, leveraging good debt. You know, you said one thing about banks loaning on, on real estate versus like a. I think that's, that's an important thing to understand. If you went to a bank and you showed them a piece of real estate, they'd give you a loan on it. But like, let's say that bank was Wells Fargo and you said, hey, I'd like to borrow money to buy your stock.

I did that. I did that a few minutes ago, man. You weren't here, bro.

Sorry.

You weren't paying attention, man. Okay, Benefits from inflation. Inflation should raise rents. Now here's the problem in Austin. The inflation is not affecting the rents faster than they're building units, okay? So you have to. You have to use all this data with the amount of supply people rushed into Austin, Texas, and overbuilt it. Once all that's gone, and it will be. Then rents will explode again. Real estate has proven over time. Number seven, these stocks that are coming to the marketplace right now, they're not proven over time, they're going to fail. Like, you see, these stocks come out, they blow up for the first three weeks, and then for the next three years, they go down. Number eight, easy to access debt. Number nine, easy to scale the assets. Easy. It is the easiest business you will ever, ever scale in your life. Much easier than scaling 10 laundromats. Number 10, it's very hard to disrupt, okay? You have to have housing. It's a real thing. Shelter is real. Has been for 2000 years. Number 11. It is real. I can't believe we ended on an odd number there, but let's open it up to Q A. If you have a Q A question, you don't have an answer, but you do have a question. I don't know why they call this.

Q a question and answer.

Oh, okay. Raise your hand. We're going to bring you up.

We'll go to Diane.

Let's go to Diane. Ms. Diane. How you doing, Ms. Diane? Diane's got her hand up. Yeah, Diane, how you doing, Cash flow? D. It's Diana.

Oh, Diane.

Diana. Okay, so my question. I have two quick questions. You mentioned in the beginning, under replacement cost, is our goal to purchase. Under replacement cost, does that automatically exclude new construction? No, no, it would not include new. New construction. So, like, how many units over there in that Austin deal? 456. We built that. We bought that thing for 228, 000 a door. You can't build it for 228 a door. I mean, the. The just in Austin. First of all, you couldn't build. You can't. You can't assemble 88 acres. I'm trying to make sense of my purchase. Can you assemble 88 acres anywhere in Austin, Texas? Impossible. You could in the state of Texas. Very easily, by the way. But you're going to Amarillo. It ain't going to be in Austin. It's going to be an Amarillo Laredo where nobody wants to be. So you guys. You guys are here. There's a shortage of land that is complete crazy. There is no shortage of land on planet Earth. America could take another billion people. We have enough land to go from 300 million to 1.3 billion people and easily handle all of them. There's no shortage of land in this country. There's no shortage of oceanfront property, by the way. All you got to do is get in a plane and fly. Just fly up and down the coast, bro. You're going to see so much land available in this country, it's unbelievable. The shortage is where people want to live. Okay, pull up. Jared. Where does 80% of population America live? I'll bet you they live in the top 15 cities. Not even the top 50. If you look at planet earth. Okay, there's probably only 18. Probably. There's probably maybe 25 major cities on planet earth.

It's the east of the hundredth meridian, which is a line that runs north to south through the middle of the country. So 80% reside east. East of the middle of the country.

Yeah. Like, like. And then, then ask what percentage of people live in the top 15 cities? There's no. There's a shortage of housing where people want to live, Diana. Okay, so now that's one thing. Number two, when you have it, 20%.

Live in the top 15 cities.

Only 20% in the top 15 or 50.

Top 15 cities.

Yeah. Go to 50 then. Yeah, I don't believe that. I believe. I mean, New York city, Houston, Chicago, San Francisco, Los Angeles, Miami, Atlanta. Like, there's not a whole lot of cities. Like, what does this thing say? Top 50 Best Cities to live in. No, no, I'm looking for the most populated cities in America have what percentage of the population?

This says 20%.

You guys got to know this data because some of you are going to find something. You.

83% live in the US cities, suburbs and towns.

Yeah. What percentage of America lives in the top 20 cities? You're right. 20%. 70 million people live in 15 cities. Okay, now when you guys start getting to some of these. But that doesn't include the. The Greensville, South Carolina. The Savannah, Georgia. The people in Savannah, Georgia are never going to leave Savannah, Georgia. People in Cleveland that are never leaving Cleveland, their families are. Pittsburgh. Okay. Boston. There's. There's these, these pockets in the country where people will never, ever, ever leave them. People in Dallas, Texas. It'll be a super city in the future. You were asking about replacement costs. Okay, the replacement cost you're looking for is what? Georgia, Cleveland, Ohio. Pittsburgh.

Okay, this, this says first, you got time. I found another stat you might, you might be more interested in. 293 million people live in U. S. Metro statistical areas.

293 million out of 350 million people live in the metro cities. Now I don't know what that is, but I would imagine New York, Chicago, Boston, Louisiana. San Francisco. Houston, Texas. Dallas, Texas. Austin, Texas. Miami. Fort Lauderdale, Orlando, Tampa. I did Atlanta, right? I'm running out. Charlotte, maybe.

Yeah. New York, Los Angeles. Chicago, Dallas, Houston, Miami, Washington.

Yeah.

Arlington, Washington D.C. philadelphia.

Arlington. Huh?

Phoenix, Boston River, Riverside, San Francisco. Detroit, Seattle, Minneapolis, Tampa, San Diego. St. Louis, San Antonio. Austin, Portland, Baltimore, Orlando, Charlotte, Las Vegas, Columbus, Indianapolis. Want me to keep going?

Yeah, there you go. I mean, those are your cities, okay? And you're getting small. You're getting a bunch of small ones, but those are your cities. Now when you start moving to Amarillo, I'm picking on Amarillo, El Paso, I don't know, someplace in Indiana. Pueblo, Colorado. No, it's not Denver. Dude, ain't nobody going to Pueblo, okay? Now, unless somebody drops into Pueblo and builds a bunch of jobs there, maybe. But like many of you guys, you're going to places that are cheap. And guess what? They're always going to be cheap. Fargo, North Dakota is never going to be on the map because it's too cold for seven months of the year. Nobody wants to be up there. Now, could it move? Could Boise, Idaho become a thing? Maybe. But as fast as it can become a thing, it, it can have that thing undone and everybody drifts back to California. You can also have people leave markets. Like they're leaving right now, they're leaving California and New York right now. But you're still going to have a majority of that, that population estates. Back to your question about replacement costs. The thing that you can't measure in replacement cost is time. How long does it cost to replace the project? Here's a little note. Wealthy people do not have time. They have money. Okay? So Malibu, Malibu is a perfect example. I can build my house. A guy could build next to me, they'll approve the build. The Coastal Commission is going to tell you, yeah, you can build whatever you want here, bro, but it's going to take like 10 years. They don't care what it costs, by the way. Like I don't care what it costs, okay? Because he's got a lot of money. The guy's, he's worth a billions of dollars. I don't care. Yeah, bro, it's going to take 10 years. I care about 10 years. So time also should be considered in your replacement cost. The price per unit should be considered, okay? The cost of permits. Hey, Grok, what's the cost to permit a single multi family unit in San Diego? California. In San Diego, permitting a single multi.

Family unit typically involves fees ranging from 9,000 to $20,000.

So if that's true, just. Just to permit a thousand square feet or 800 square feet to get a permit to say you can build this, you haven't. You don't have the permit to build it yet. Just a permit to say this would be allowable is $25,000. No stick, no sheetrock, no ceiling fan, no kitchen. There's nothing built yet. Okay. And I don't think that number is right. Additional costs like impact fees. Hey, Grant Cardone. Okay, didn't answer. Additional costs like impact fees, around 7,200. And for water and sewer or state seismic. Yeah, yeah. And then, then they're going to. Then they're going to do the Coastal Commission and the environmental group and protect the freaking fish and, you know, give money to homeless people and psychiatric care and all the other. They're going to steal by the time you go to build this. What's up, bro? This only works if you talk.

Yo, what's up, bro?

No, what's up with you, bro? We're going to bro out. We're going to bro out. You broing out to me? We broing.

What's going on, man?

Whoa. What's going on with you, man?

Not much, bro. I'll call you here if you're busy right now.

I am busy, but why are you calling? Why you already wasting my time? See, he don't know what he's doing, bruh. You don't call somebody up and bro him. Guy wants to sell me something, he's gonna bro me.

Okay, don't bro me if you don't know me.

Yeah, you don't know me. You don't bro me, by the way. If you don't, you don't flow me. Don't bro me, bruh. All right? Okay, so check it out. Check it out. By the way, I accept all my calls. You guys want to call and talk to me, call me. Go ahead, call. I'm going to answer the call, and you're either going to do something with me or you're not. The call is going to go like this. You're going to be embarrassed. You're going to feel bad about yourself when it's over. Or we're going to do some business together. If you're a pro. Okay? I'm looking for connections, man. I'm looking for people to do deals with. So if you call me, I want one or two things. Money or a deal. A deal to make Money with. Or money to make money with. So if you got any other reason to call me, you're just. You're just going to get embarrassed. So that's why I keep my phone open. Call me anytime you want, okay? But don't waste my time, okay? Because it ain't going to last long before you hanging up. Embarrassed. That's what happened to this dude. He's like, I got nothing to say to him. Okay, price per unit, the permits, the cost to bill, the last price paid, okay? If you want a great hack, look for something that gets a trophy price every time it sells. If you want to hack, do not look for the lowest price. Look for the highest price every time it ever sold, okay? In 2000, it sold for the trophy in the neighborhood. In 2010, it sold for another trophy. In 2020, it got another trophy price. Despite that, the market sold. Sucked in 2030. Guess what? It's going to get another. Another. How do you. How does my boy say it? Another one. Okay. All right, Diana. I hope that helped. Next question. Shane. What's going on, Shane? Hey, Grant. Good to be here, man. You. Actually, my question was kind of like what you just hit there about replacement costs. I think you've kind of gone in detail. I don't know if you've haven't covered anything, but my question was, how do you determine replacement cost? Square footage. I guess you're just using the market is what it is. Yeah. Look, you're going to find the cost to build. You know, the cost to build something new. Call. What. What city you live in? I live in just north of Tampa. Tampa Palms. Yeah, Tampa. Let me see if I can call. Who do I know in Tampa? Who's my guy in Tampa? Mitch? No, not Mitch. I mean call Robert Given. Yeah, I'll try. I'll try. My guy Robert knows. He knows Miami. So I'm going to call a professional in the market, typically a broker, maybe I'm going to ask a couple of brokers because, you know, sometimes you get misinformation. Sure. There's another guy in Tampa. I have. Call Ryan now. Now, let's say you're buying something that was built in 1980. You'd still want to know the cost to build in 2020, right? Hey, Ryan.

Hey, Grant.

Hey, Ryan, man, I got some people on a call with me right now. Do you think the cost to build what. What part of Tampa, by the way, Shane, I'm in Tampa Palms, just north, northeast of Tampa. Uhhuh. That's not. That's not over There by Universal, is it? No, Tampa is like Wesley Chapel. 75 and 4. Tampa P. What?

Bush Gardens.

Yeah, yeah, yeah. It's not by Bush Gardens though, right? Just north of it. Yep. Usf. Okay. Yeah. I mean some of that because they got a lot of product up there in Busch Gardens. Right. Hey, Ryan, what do you think it costs to build in Tampa right now? Not Tampa, not Tampa downtown, but like suburban Tampa.

Yeah, just, just stick gardens type stuff.

Yeah, stick garden, two story.

I mean, I would guess, I would.

Guess on the low end it's probably.

Going to be around 200 grand for units of build.

Yeah. Okay, thanks, bye. So 200 grand to build and it's going to take you what, two or three years to build it. So 200 grand, you got to. The rents have to be 1750. You got to get a construction loan. By the way, I don't know why anybody would do this right now because at 200 grand a unit, let's say they're going to build what, 100 units? They're not going to do 20 units. You're not going to do 20 or 40 units. No, there's no, there's no money to be made. So there's, there's one thing is the math of how to cost to build. The other thing is the profit to the builder. The builder right now has to pay 7% to 10% money. Until these interest rates go back down to 4 and 5 for builders, you're not going to have any building. Building stopped. It's going to stop. The reason we have a shortage in the cities where people want to live today is because of 2010. We quit building for four years. Four or five years before any building started. Go ahead. Yeah, sure. Well, you just wrote something on the board there that piqued my interest and that is how did you quickly go to 1750 for rent?

I mean, I just haven't seen that calculation before.

Getting. I'm new into this. Yeah, I'm basically, I'm basically taking this $200,000 and doing about 82 and a half percent of that number to get what my rent needs to be. Okay. It's a, it's like an 8% factor. I know I'm not going to get to one. Ideally I would have $2,000 rents right here on a $200,000 asset, 1%. So I'm taking about 80% of that and saying I need about a 1750 dollar rent to pay for this. I might not even get to 1750. Right. So my next question, I'm just Using some metrics that I have to get me in the neighborhood. Okay? Everything I'm going to do, Sean, in the beginning is going to be on a little napkin. Like, I am not going to a calculator, a spreadsheet or some complex. This is what I do. I find a deal. You asked me a question about a deal. I then contact the broker. That's what I just did. I contacted somebody and said, hey, what do you think? And then the third thing I do is I underwrite the deal. Okay? It's a $200,000 unit. Okay? I need. I need 1750 bucks a month times 12. How much is that? 1750 times 12. It's not going to even be a great 21,000. Huh?

21,000.

Yeah. So I got $21,000 of income. You know, I'm only going to keep maybe a third of that. So I paid 200 grand for the unit. I got 10%. If I didn't have any expenses, I'm going to have expenses. So maybe now I only have $10,000. I'm making 5% of my money. 5% of 200 grand is $10,000. So. So I'm just using. I have. I have what it costs me, what it costs me. I have the income that comes in from it. I got some expenses going away. I got a little leftover money I need. I need. It's not a great deal. So I'm just telling you right now in Tampa, if I go to my map right here, I'm gonna go buy something in Tampa before I buy that. And let me just warn Everybody, at least 50% of all these blue buttons that say they're for sale will not transact in this cycle. This cycle being immediately. Okay, I. I mean, right now, let me see if I can go to my email and show you guys what I see every day. Let me see. Come to me. Open door. They got you. They got me. Okay. Okay. I'm looking for a deal. I'm looking for a deal. Jordan. Hey, Grant. How about 674 units? 2001? This is George writing me here. We share all these names, by the way, in our mentoring group that we meet once a week. We share these names these days. Deals. You get to see actually what I have coming in. Our team works with you to actually show you who you can connect with, where you can get this data from. Shane. Shane. It's Shane, not Sean. I'm sorry. Hey, Grant, how do you feel about 674 units? 2001. A triple A location, but needs a Bunch of capital. New neighboring comps, get 700 over them, meaning the rents are 700 higher. Top locations in the city price 5, 7 5. It's $130 million. I think it's worth looking at. Compare it with another deal. So what's the name of this guy? Newmark Big Agency. Okay, Vice Chairman George Scath. Okay, so what am I going to do right now? I'm going to text George. I'm not going to call him because I don't want to put him on the spot here. George Scaff. Let me see.

Columbus.

Yeah. This Columbus. Yeah. Okay, see, I was said I wasn't gonna call him, but I couldn't help myself. Okay.

Hi, you reached the voicemail of George with NKF Multifamily. Please leave a message and I will get back to you as soon as I can. Thanks, bye.

Hey, George, Grant Cardone. Give me a call. I'm responding to your email. Thanks. Now this is Columbus, Ohio. Okay, that's what I'm gonna do. I'm gonna see a deal, make contact. See a deal, make contact. See a deal, make contact. I don't underwrite first. I don't worry about the underwriting. I worry about making contact with a guy that knows about deals. First you get a deal, then you contact the broker. Then we wonder about underwrite. The underwrite. You're never going to find out about a deal, folks, until you actually underwrite. I'm sorry. Until you actually get a deal. To look at second. Second thing I did, while I'm calling the broker, I'm actually pulling up the map of Columbus. Okay, you see this map right here? If you guys look at this map, this is not in the book. Take a note on this. I'm going to look at this map the way it is right now and I'm going to draw a circle around this whole map. And when George gets on the phone, actually I did this with him the last time. He told me where you want to be on this map? Because I asked him, where do I want to be on the map, George? When you're moving into a new market, let's say Shane leaves Tampa. He can't find anything in Tampa and he's got to go to Miami or he's got to move to Orlando or he's got to go to, maybe to the panhandle.

Jacksonville.

Jacksonville. Ask the question on a map, George. Where do I want to be? If the map was a clock and 12 was at the top, 3, 6, 9. Okay, where do I want to be? I think George is going to tell me I want to be between 12 and 1 or 12 and 2. Now notice I got some stuff over there because guys, you have to learn how to talk to these people. The brokers control the market. They are literally controlling your chance to make millions of dollars. Whoever gets the deal makes the money. So let's see here. Let's see. I'm going to pull this deal up right here. Okay. This deal is 9 units, 81 days on the market. I'm going to click it. This is costar. What do they charge for this?

About 1500 to 8000amonth.

Okay. So this is a lady named Elizabeth. She's the broker, you could call her. The deal is $1.1 million. It's 122,000 a unit, Shane. Okay. You can't build it. I know for sure. You cannot build anything for 122,000. I don't care where you go. In the, in the country there's no building for 122. Probably going to be 175,000 to $200,000 to build almost in any place in the country. That's why it doesn't make sense to build in most places.

This, this a value. The group also, like Tom Gerber just commented. I'm in Columbus and can tell you you want to stay to the top. Outer belt, east and west are booming.

Yeah. So ask him where. One, one to two o'. Clock. See?

Yeah. Like we're out on the clock, Tom.

Yeah. Or can you bring him up? See, that's the beautiful thing about the mentoring group because now I have a plumber over there, an H vac guy over there, a roofer. 11 to 2, huh?

11 to 2.

11 to 2. He's saying 11 to 2. You want to be in this part of the clock on Columbus. Now let's say George shows me a deal downtown, which is probably where he's going to show me a deal because look how much action is downtown. Center of the button, that center of the clock. That's not six. Six is below the bottom. They probably went into downtown like they did in every city in this last cycle because people went insane when money was zero percent. People started building everywhere. I cannot tell you guys enough times. Location is everything. Just because it's pretty don't mean it's in the right location. You're going to have billions, hundreds of billions of dollars of shit go back to the banks. And this cycle there is $3.7 trillion of debt. And you guys that think I'm exaggerating Of the opportunity in real estate. Right Now, I spend 90% of my time working on real estate deals on a daily basis. This debt has matured or is about to mature in the next 24 months. These loans are due. You guys understand that? And these loans are going to mature at 80. 70 to 80% of their current amount. Go ahead, Shane. Question about that. I mean, is there any way or indicator that we can tell if a property we're looking at is about to become mature? If you guys are having trouble. Hearing aid.

Yeah, you guys got to turn it up louder. Ask a question.

There's a product we have called dealfinder deal finder will actually you can plug in. I'm looking for all maturing debt in the Tampa marketplace. What's matured in 24, 25? Do you have deal finder up here? Yeah. Can you. Can you hack it for me? Yeah, I just need an address called 10X DEAL FINDER. All you have to do is put in the debt. You can't just search the whole market.

Tampa, here, let me look. Tampa.

Just search market. Okay. Okay. Because if the debt is maturing, it doesn't matter if you're Donald Trump or Brooksville or Goldman Sachs or Grant cardone, Shane, if the loan is due, I.

Know how to share it.

The loan is due. And when the loan is due, they might give you an extension. But there's a really good chance they're gonna be like, nah, brah, like, we don't want an extension. What we want, let's say, Shane, there was a loan outstanding of $2 million. Okay? And this loan was made in 2020 for five years at 4%. And this loan, 2 million dollar loan is due 20, 25. Well, guess what? They want the loan paid off. And then you go to the bank, hey, man, can we just extend it? No. Well, I mean, we could, but when we extended, bruh, we got extended at 7% because interest rates went up.

Right now there's.

Hang on a second. And when we extend it at 7%, bro, you're gonna have to pay this loan back to like $1.6 million. So as long as you're willing to pay the loan down 400,000 and get it to 1.6, we would extend it at 7%. Because the math on 2 million at 4% is the same math on 1.6 million at 7. Follow me, Shane. Mm. So he's got to come up with 400 grand, and this guy owns a piece of real estate that probably is not doing what he thought it was going to Do. And he's got to write a check for 400. And if he does what I do, he. He got the money from his partners. So he has to go back to his partner and say, I need another 400 grand. They're gonna be like, bruh. Give me a good bruh, bruh. Wow. Bruh. There you go. Stay with me, guys. Come on. We gotta keep it entertaining. You guys can help me with this. Okay, so, Jared, what is it?

There's 352 deals in the state of Florida.

Florida, right now. What you're looking at, can they see what you're looking at or would they got to just trust you?

Yeah, I'll show them.

You're up, Jared.

Can you see it?

So this is our 10x deal finder. It's 1500 bucks a year. If you guys want to buy this.

There'S 352 deals right now in Florida that have debt maturing between now and the end of the year.

Okay, that's 352 deals. Single family homes, storage, marinas. Dude, this is everything. This is any kind of piece of real estate like we, we have. We don't care. At this point, I'm looking to try to figure out how to grab something from a bank. Now, Shane, I'm gonna come and bring you back to this deal. Shane, how do we. I'm just using this. This is the debt. It was started in 2020 in. In August 8. 2020. The loan is due right now. They knew the loan was coming due, by the way. Okay. And they know the loan, the guy, all these professionals. If I have this loan, I know the bank's gonna require pay down. Would you agree? Yes. I'm an intelligent human being. The more intelligent they are, the easier they are to deal with. Oh, My property's worth $2 million, bro. Your property is worth. Your loan is worth 1.6. I don't know what to tell you. It's got nothing to do with your property. Oh, the timing's bad. Okay, whatever, bro. The loan is due, son. This isn't your kid. You get to talk into something. This is a bank that has a loan due and the bank's got investors. So, like, everybody's like, yeah, we don't want to be in the deal anymore. This deal is going to get discounted. You guys understand that means you're going to get a $400,000 discount. If this deal was $3 million, let's say it was $3 million. And he put a million down, he's got a million dollars down. He financed two. Somebody is going to save 400,000 bucks right now so that this guy doesn't have to pay 400 grand. Go ahead, Shane. Yeah, sure. So let's say, for instance, he did pay the $2 million up front, and that was five years ago. Hasn't that property appreciated? Maybe, maybe. But let's say it's worth maybe not. Maybe not. By the way, maybe he overpaid. By the way, maybe he overpaid. Maybe he overpaid in 2020 because interest rates were so cheap. I'll show you a deal right now that I know for sure, because I've been tracking this deal. I bid on this deal. Metro Dade. No, what's the name of that. That deal. Starwood bought? That deal, Metro Dade.

Would it be on your active sheet?

Apartments, maybe? Let me see. Metro Day. Metro Day. Metro Day.

It might be a lost deal. Might be under Lost.

Yeah, it's a lost deal. Let me see. So I keep. I keep this list of deals, and I also keep a list of my lost deals. Let me see. I got to remember the name of it, though. And I don't remember the name of it. Me. Just see here, if you guys don't mind. Let me see. Metro. Something. Metro. Metro. Metro. Metro. Metro. No, let me see. I know. Who's going to know. Call Ryan. It might be on this list right here. Metro. Oh, yeah. Modera. Yes, Modera. Modera. I think it's Modera. Let me see. See, Modera at Flagler. Ryan, what. What was that deal? What was that deal we tried to buy from Starwood? They got it. They. They. They overbid us. Was it Madero? Madero down in. Down in Metro Dade or that big monster, huh? Madero. Metro, Madero, 844 units.

That's right.

Yeah. What was. What was it? What was. Yeah, man, you don't have good data in these anymore, man. This says it was a million dollars. Yeah, says Metro Madera. $1 million.

How much was the price? I think it was like 347something, and they over bit us by quite a bit.

Yeah.

70.

Yeah. Yeah. Okay. What. What was it we paid. We offered how much?

Modera at Flagler. Scroll down. It's right back down. Scroll down. 175. Scroll down. Modera at Flagler.

No, it's not. Madeira, Flag, Metro, Modera, Grant, 850.

Yeah, what do you see?

Yeah, no, I just don't have a price on it for some reason. They don't have the price in here, huh? Yeah. Okay, bye. Metro. Madero.

Madero.

So so now you guys, you guys, this, you guys are all going to be doing what I'm doing right now. You're like what, what is the guy doing right now? This is what you're going to be doing. You're going to be collecting data on deals. Look at this beast. This thing is so monster. I did, I worked on this deal four years ago. I lost it to Starwood. We paid, we were paying 340 or something. They overpaid us by 40 million to get it. Now what is the point of that? Because I know they overpaid. I, I couldn't make sense of it. Madero Metro, okay, this is trophy real estate in a great location.

Go to images.

Images. Yeah, look at this, look at this monster. Would it be an intentional loss? Huh? I say would it be an intentional loss? A big company like that or begin that? I mean it's not. Nobody, nobody wants to intentionally lose money. Yeah, well that's a bad idea. It doesn't make sense. But they paid 388. If they paid 388. They paid 388. Jared could pull it up. They probably got a loan of $300 million on it right now. That loan is going to underwrite today. If it could support 300 million at 4%, it can only support maybe $210 million today. Okay, somebody's losing $90 million. So it's going to sell next time for 270, not 388. Not everything has to go up. Remember rents control the value and you have another component, debt. Because nobody's paying $388 million in cash. The bigger the deals, the bigger the wins and the bigger the losses. Okay? Big money loses money too folks. And during 2020, 2021 people were getting greedy. They were going crazy because money was so cheap. And today that's what creates this great correction in this great glut. Right now the best deals are at the top of the food chain, not at the bottom. You could go look at the garbage in Clearwater. Oh, I can buy this house for 85 grand, bro. Garbage is garbage, okay? Garbage in, garbage out, okay? Bad location, bad location. Bad locations are bad locations. Bad people stay bad people. It don't matter where you put them, bro. They're bad people and they stay bad. Good people put them in a bad environment, they get worse. Take good people, put them in a good environment, they get better locations. Everything OK? A bottle of water at 7:11 is worth 50 cents. Put it on a, put it in a, in a VIP section of a club and you're thirsty, bro, it's 20 bucks, okay? Like, it's the same. Only thing that changed was the L, the location. Now this location is sick. It's ridiculous. It's unbelievable. Problem was, they got greedy. We bled them into this deal, okay? I compete with, I compete with these monster institutions. And they didn't want Grant Cardone and his retail investors to get this deal. So they puffed up and tried to get me to like, okay, well, we're going to buy. Guess what? Take it, bro. You choke out, I'm going to buy this back from them for less price. That's why I, I'll just track it. This real estate, it, it, it stays the. The 16th Chapel is worth more money today than it was when what's his name was over there, okay? Like, if you can just stick and stay, this piece of real estate will be here 100 years from now. The owner will not be Starwood in the future. This is somebody at Starwood. Their ego got. Their ego got invested and they went crazy. The sixteen Chapel art collection, which includes the iconic frescoes by Michelangelo's price list between 10 and $15 billion. Okay, well, they didn't pay 10 or 15 billion for it. The Pope made Michelangelo paint in there for free. You can't build this today. So back to replacement costs. What do you guys think it would cost to build this deal today? First of all, nobody would build it today because interest rates are too expensive. So no building will happen down there, number one. Number two, if you were to build it, it would take three, four, maybe five years. You guys are looking for cycles, long period, periods of time. It could be 4 units, 8 units. By the way, if you could find 4 units, 8 units or 12 units right around that market, I'm telling you, while you guys are in our mentoring group, I'm telling you where to go. When I go to Austin and I go to Dallas and I go to Philadelphia or Pittsburgh, or we go up to Boston or I go investigate D.C. and I come out and say, nah, I ain't buying there right now. Hey, shit, I'm giving you a billion dollars worth of, of like, follow the money. I'm all invested in these people. All these people know me. I've done business with all these people. They know I'm doing this today. So I borrow money from Fannie and Freddie, I borrow it from institutions. I know what all the money costs today. You guys are getting access to an inside game. Why am I doing this? Somebody's asking, why are you Doing this if you're so connected. Because if I don't do this for you, nobody will. And somebody should be doing this. This should be public data, by the way. The government should be doing these programs, okay? If I was president of the United States, anybody that was able to swim in the fucking wealth chain, in the wealth pool, should be forced to give public broadcasting data to the American people. This is how you get rich in America. This is how you create wealth in America, okay? This should be required of all these wealthy companies. Show us your playbook, man. This should be open source data for everybody. So we're just teaching you guys how to fish, man. You want to go out there and fish? Fish. Most people will not. You will not. You will not go get a fishing pole. You will not learn this game. You will not learn how to use a boat, a navigation system. You're not going to go sweat, sit in the sun, get a burn. You're not going to do it because most people are lazy. And by the way, I'm talking to you guys in a room right now. And I'm extremely beneficial to lazy people because I'm giving you the hack. I've done this for 30, 37 years. I've made so many mistakes. OK? The fact that you guys can come in here, just ask question after question after question, freak. Is unbelievably valuable. But I'll bet you 50% of the people don't even know what I'm talking about right now. Because you checked out on your Instagram. So people are like, man, aren't you worried about giving all this information away? Why most people don't even pay attention because you can't, you don't know how to pay attention, man. That's why you can't get anything done in two hours. You can't. You need a commitment. The people that actually learn are the ones that commit and say, hey, bro, I don't want you to run on me for two or three hours. I want to give you. Just work with me for the next 10 or 12 or 15 weeks. Okay? Shane, thank you for asking a question. By the way, when other people ask questions, oh my God, it's so much better. Let's go to the next person.

Let's go to Ava.

Ava. Yeah.

Did I, did I unmute myself?

What's your question?

So I have a question on when.

You were given the specific example on.

The 1.95 deal where you had investors come in for 350,000.

Yeah.

How do you structure that for me as an investor? Potentially going in. And also as someone. Meaning, do you only give them money at the end and you predict, hey.

It'S going to be a six to eight year?

Or do you actually give them money throughout the year?

Yeah, yeah. You can do. You can do it almost any. You can do it an infinite number of ways. Okay, One is you could look for somebody that just wants to lend you money. And before you go to a hard money lender, you should go to mom, dad, uncle, aunt, brother, sister, somebody with money. Okay. Or somebody in your community. And you're like, let's say the banks are paying. Let's say the banks are paying four. Just say, hey, I'll pay you 10. My deal was doing 12. Okay? I could have given her 10. I could have given her 12. I go to my sister, hey, would you like to earn 10% on your money? Yeah. I can't earn 10% anywhere. Okay, good. I'll pay you 10%. Lend me $350,000 for three years. Okay, well, what are you going to do with it? I'm going to buy a piece of real estate. I'm a manager. I don't want to invest in real estate. Nope, nope, I don't want any. I don't want anything to do with real estate. This is what my sister told me. Okay, good. Don't. You won't have anything to do with the real estate. Just lend me the 350, and I promise to pay you back. It'll be secured by a piece of real estate. I'm gonna pick up the rents, and I'm gonna pay you. Okay, let's do it. 10%. I paid her 10%. I earned 2% on $1.6 million, and I didn't have any money in it. Okay, so, like, I'm like, good, I'll pay you 10%. I did not pay her any upside on the real estate. It would be three years after that, maybe four years after that, when I made $5.3 million on the deal and sold it. She's like, where's my piece? You didn't want to be an investor. You wanted to lend me money. You told me, I don't want anything to do with a deal. Okay? I've had more than one people tell me that so you can structure this any way you want. I could have said, diane, why don't you do this? You do 10, and then we do a 80, 20 split. Okay? I could have done. I've done all these, by the way. Hey, I'll give you 80%. I'll take 20. I could have said, I'll pay you 10% and give you a 20% profit. I could have said, I'LL pay you 10 and do a 50. 50. I mean, like, anything you can make up, you can do. Or I'll give you 10%, period. And she's like, yeah, 10% is good for me. By the way, it was good for her until I put her in the next deal. The next deal. I got 400 grand from her retirement account. By the way, you guys that have IRAs and 401ks, we now can take your 401k IRA or Roth, move it without penalty into one of our real estate deals, and you pay no penalty and actually get the returns of the real estate for rather than being exposed to Wall street. She gave me $400,000. That $400,000 is worth. I already paid it back, already sent her the $400,000 back to her IRA, and then I sent her another $1.4 million back to her IRA, and we still own the investment. And I'm about to send her $2 million back, and she still has the investment and it pays her every month. But we own the real estate for long periods of time. Okay, look, if you have an IRA, a 401k or a Keo Keo, 401k, a Roth, any of those, okay? And you have more than 200 grand in them and you want to invest, show them that deal I'm doing right now and you'd like to invest in this deal I'm doing right now. Text. I'm going to give you a number to text. 305-407-0276. Okay. If you have at least $200,000 in a retirement account and you want to consider moving it without penalty, okay, Call my office. They'll call you back Monday. I don't think they can call you today. Or text, text this number, 305, and just put in their Iraq put IRA. For the sake of other words, just put IRA. And look, if you don't have 200 grand, just put in whatever put it. Put your number, put how much. How much money you have, and we'll see if we can help you even if it's less than $200,000. Okay? All right, let's go to Hope. Hope. Look, all this hinges on a good piece of real estate, right? See that piece of real estate? That shit's sick. The better it looks, the better it is. Now, it could look good and still be in the wrong location.

Go ahead.

Hi, Grant. Can you hear Me? Yes, ma'. Am. How you doing, Hope? I'm doing great. My question for you is, and I haven't seen you touch on this, I hope I'm not on a different planet. But, you know, what is your opinion.

On, you know, getting the funding to.

Use a million for the development of, let's say, an RV lot purchase?

And the reason why I say that.

Is I have one next to me and I did some math on the numbers.

They have a hundred pads that they.

Developed on this land.

I think it's about 25 acres or so.

Each pad is $500 per lot and so that's around 50,000amonth and 600,000 and a year.

In one year that's 1.2 million. And by year five, that's 3, 3 million. With a 1 million dollar investment just to develop this.

Yeah, what I would do, what I would do, Hope, is I would go try to buy something that's already in place. So before you do that, I want you to go shop the, the, the, the, the, the pads. I want you to go shop within, I don't know, 60 or 90 miles of where you are, where you're looking right now and, and see if anybody has any of that for sale. I have a buddy just, he had 44,000 pads making 500 bucks a month. I love the model, I love the business. Yeah, I have looked at some off of Crexy and they're going for like 5.5 million, 7.5 for the same amount.

Of pads, like 100 pad unit.

Yeah, but, but, but the difference is that they have somebody on the pad now. They have the rental income already.

Yeah, I did, I did.

Maybe I thought that was the reason why it's so much more. But then I've seen some multifamily units.

That have 44 occupied units for like 2.3 million. And I'm, you know, they're, they're occupied.

So I just was kind of looking at the metrics on it.

The overhead is a lot lower than an actual building because people are responsible.

For their own roof. Essentially.

You just kind of set that standard.

Of like what type of. Yeah, no, hey, I love, I love the business though. Business is great. You don't have toilets. You don't have, you got tenants, but you don't have toilets. Termites. You don't have a lot of problems that you have in multifamily. I think you're going to have difficulty raising a million dollars to do that deal though. I, it was just a, I guess it's A little bit unconventional. I live right next to a Heart of Georgia RV park, and I look over there, I drive past there almost every day.

And I place is just.

I know they probably at probably 100 pads now.

And I just called to investigate one.

Day, like, hey, how many pads you have over there? Where are you charging per lot? And this is in. You should go meet with them and just say, how'd you get in the game? How'd you get in the game? Teach me how you got in the game. Hey, do you know anybody that's got stuff for sale? There's sellers in every cycle. Like, there's people that have been doing this. That guy might have a $1 invested in that RV park today. Any number he gets above a dollar, and he's been making money on it for 25 years. I. I had a buddy just sold. He just sold 44,000 pads to BlackRock. I'm sorry, Blackstone. I mean, that's just the route I was kind of looking at. I know it's a little bit different, but I love it. Next to me, I look at it constantly. I love it. It's. It's the same model that we're using for apartments. Number of units, number of pads times, rent times 12 times your occupancy divided by a cap rate. I love it. Okay, just your cap rate's going to change. Let's go to Dylan then. And then Beverly. Grant, can you hear me? Yes, sir. All right, so I just had two questions for you. One, because I'm relocating to another market, I basically gone through every real estate course that you have that I've gotten, the introduction to real estate investing, your master class, and the advanced deep dive. So because I'm relocating to another market, should I just research, basically research the hell out of that market to see how properties would do in that market? Because my market here in Iowa, as you said on the mentoring call, the thing was last week is, yeah, you're. You're in a terrible market. Like, like you. You can buy some real estate. Look, there's just some markets that are going to be good cash flow, but there's no exit. No, there isn't.

Not at all.

And I bring it up to a family that live here, and they're like, oh, yeah, these cities are booming. It's like, yeah, but like, there's going to be a time where it stops. It's not going to continue to grow. Somewhere like Miami, Houston, New York, York. It's not going to grow. Yeah, yeah. You, you, you. Yeah, I agree with you, I. I would just. Look, I would not even try to make that happen. It's just not gonna happen. I plan on relocating down into Fort Lauderdale area by the end of the year. Yeah. Yeah. And then for any of you guys out there, you're out in the boondoggles and you're like, I'm gonna try to make this work. No, you ain't. You ain't gonna make. I mean, you are. You're gonna get some cash flow. But it's going to be painful, man. I'm just telling you I'm not. I know. I'm not going to talk any of you out of this. By the way, like, you guys understand when I tell people not to buy a house, I don't ever talk anybody out of it. They just argue with me. So you're not winning an argument with somebody that's already decided. No, not at all. So. But you already know, bro. You already know. Now you're going to get cash flow. The better the cash flow, probably the. The worse the exit your cash flow. If your cash flow drops, I mean, you still got to have. You got to have some positive cash flow. But as cash flow goes down, typically your exit gets better. Okay. Or it should. And then my other question I had was, well, it's not really a question. It's actually a deal. I found. It's. Oh, last I looked, they're under five miles from both of your Boca Raton properties, or it is less than five miles from both of your Boca Raton properties. It's a called Boca Village. It's 106 units, and they average 330, $400 a month in rent. But I haven't been able to find it on any deal website. Only through Newmark's website. These are the ones that have the listing. What's the name of the property? Boca villa. The address?

100 West Hidden Valley Boulevard.

Yep. Because I also know you. You know the Boca Raton market. Is it for sale? Is it for sale? Yeah. Newmark has the listing. They don't have a price listed on it, but everything that I've underwritten and based on the cap rate in Boca Raton at like a 4% would value that property at like a $48.6 million property. And it last traded for 13 and a half back in 2019. Good. So let's do the math on it for everybody that finds a deal similar to what Dylan just found. Okay. He basically found a deal. How many units is it, Dylan? 106 with 53. That were just built. First thing I'm gonna do is find a deal. Second thing I'm gonna do is call the broker. What's the broker's name? Who's on the deal? Tal Friedman, I think is. How you say his last name. Yeah. So I would call Ty right now, typically, and just make the call. I'm talking to you, so I'm gonna act like you're ty. Okay, it's 106 units. What are the rents? 3, 400 average rent. Okay, 3, 400. Now what year is this, this asset? Oh, it was just. They just recently added 53 units in the last. I didn't ask you that. So. Oh, oh, so they just added some units.

So their year built was. Original build was 1988.

Okay, 1988 rent your 3400. You want to talk to somebody that knows the market. I know that market. We're in it. We have, I don't know, 1200 units in Boca. You're five miles out, bro. Like five miles in Boca makes a big difference, bro. Ain't nobody in Boca drives five miles. These are, these are white lazy ass rich people. Gay. Five miles. Like where we go? God damn, five miles. Shit. They. I can't drive my Bentley five miles. They drive their Bentley like a block. Oh my God. It's exhausting. So first of all, I don't, you know, I don't trust your Boca. But, but, but. So I already know your mark, your, your where, your locations average at best. Okay, I could be wrong. I'm just making assumptions. So I'm going to go 106 times 3400 times point 92. And I have $331,331,000 of income a month. Times 12 is $4 million a year. And I know it's going to cost me about 55. I'm going to have an NOI of 2188. Now they might have another, they might have another $400,000. This would be other income. Tell me how close am I to their noi? Oh, he. They don't have their noi listed. Actually. That's the thing. But the only place that has this, any information on it is Newmark. I'm just going based off the information that they had because they don't even give like a price on it either. Yeah, well, they're never, they're not going to do it to give a price. Okay, here, let me see something real quick. Yeah, I'm looking for Tyler. Look, you got Taz number. Can you show them this right Here, by the way, before we move on to it, this is a deal I was talking to you about earlier that we made an offer on. All of what I'm doing today, guys, I'm showing you stuff because this is what you guys should be looking for. Remember I was talking about that Madera deal? This was in 2021 that we made the offer. So I'll have a record of this. We offered $340 million and assume, assume the, the. The entity. We had 30 days to do the due diligence. We didn't get this deal because somebody overpaid on top of us another $40 million. So I keep that data because these assets get recycled. Okay? Now, you also said something that was very interesting to me, Dylan. You said, hey, it sold last time, Last sale. What was that? It was. Last sale was 13 point million in 2019. Okay, good. So I'm gonna say. I'm gonna say here. 2.1. Let me tell you what my offer is going to be.2188 divided by 0.05. It was 13 million. Yeah, that was according to the tax record. That was from Palm County. Wow. Last it sold, this deal could be $40 million. Now let me see. Let me see if I can find Ty's number. It's Ty or Tal. Tal. There he is. Okay, so what I'm going to show you guys right now is I pulled up his name. It shows up in my emails. Okay. And then Newmark, I'm going to go down to here and I'm going to look for again. This is practitioner stuff we teach by just showing you what we're doing. So there's his phone number. I'm going to click this and I'm going to call him. So first thing you do is you find a deal. I cannot emphasize this enough times to people that are in our club that pay 50 grand a year to travel down here four times a year. And over and over, I'm like, bro, this is the process. Don't break the process. Okay? He's a Boca Raton phone number, by the way. 561-561-5049250 is his number.

You reach the voicemail for Kyle Friedman. I can't get the phone right now.

I'll always leave a message. What's the name of the deal again? Thank you. Hey, Tyle. Hey. Hey, man, I ran across this 106 unit deal in Boca. Can you call me back? I'm just trying to get. Get some kind of idea of what the expectation is on it. Thanks. Man. Hope you're doing well. Bye. So I'm not going to ask you for the price. I'm going to ask you for the expectation. You're basically saying, what is the seller's expectation? That's how you ask for a price. Go ahead.

I'm good. Yeah, I was just trying to get into it.

What did you end up pulling up?

I was trying to get into costar to look up the deal.

Oh.

But it booted us out, so I'm trying to get logged back in.

Okay. Okay, so now this, this, you said they paid 13.5 million, but you said they added 80 units, right? Yeah, they paid the 13.5. And then according to Newmark, it said that they just. They just did 53 unit building. They added in a. They added in garages. Okay, so if they added 53. They added 53 units. They probably added $20 million of cost. Cost. 400 grand times 50 units. 20 million bucks. So now they're $33 million. I'm just. I have no clue if any of this is true or not. I just know this. I'm underwriting the deal for about $43 million. Okay. I'm not even worried about the price, folks. Price is like five or six on my list. It is the least significant. Listen to me. Price is one of the least significant indicators of. Of a real estate deal. When I underwrote it at a 4% cap rate, which from what I've looked up, was the average in Boca, it said the offer price would be 48. 48 million. Yeah, because I underwrote it at five and you underwrote it at four. Yeah, and I just. I just paid four. Four and three quarters for that trophy. And yours isn't a trophy. So I gave myself another quarter of a point. I'm not going to overpay for anything. I don't need to. You don't either. But anyway, it gets me in the neighborhood. I haven't spent any time on underwriting, by the way. I mean, this. This took 30 seconds to underwrite. How many of you'd like to be able to underwrite a deal with confidence in under 60 seconds and know that your numbers are right? Okay. Okay. So what I'll do is I'll underwrite a deal. How many of you like to do that, man? I want to become an underwriting pro. You guys should. With confidence, by the way, because the pro has confidence, the underwriting. You should do a low, mid, and a high. That's what the broker is going to do, by the way. They don't do one underwriting. It's called a bov. Theirs is called a bov. Mine's called a BOV too. Buyer's opinion of value and the broker's opinion of value. And by the way, my opinion matters more than his opinion because I did three, three separate underwritings, all based on a 2% cap rate increase or decrease. So I went from a 4%, a 6%, and an 8%. And each time you're not getting to the 6 or the 8, so drop them out. You should be doing like a four and a half for Boca. A five and maybe a five and a quarter. You're not going to get above a five and a quarter. If you go to Chicago, you're going to get a. You're going to get a five and a quarter, five and a half and a six. If you go to Fargo, North Dakota, and it's 1970 product, you're going to go from a six, six and a half to seven. If you go to Houston, Texas, Galleria area, you're probably going to be a five, five and a half, five and 5.8. You're never going to hit a six. If you go into Austin, Texas, you're probably going to be at a four, four and a half, and maybe almost a five. So you just got to know your markets. If you go to San Diego, California, you know, you're looking in La Jolla, California, bro, it's going to be a four. And if you could buy it there, you should buy it. Like, it. Like, don't even worry about. You're getting paid four times what a bank will pay you to own a real asset that will inflate over time. Why in California? Because California is not never going to allow anybody to build anything. They're intentionally burning to the ground in California in order to get people to leave there. Then they're. Then they're throwing out all the good citizens, importing bad citizens, okay, in order to get all the good people to leave so they can actually own everything again. But I'm telling you, Seattle, Seattle, Boston, Chicago, New York City, Los Angeles, San Francisco, Oakland, San Diego, these are going to be the most expensive. These cities will keep becoming more and more expensive because you can't build anything there. They're never going to let you build shit. I agree with you there. I definitely agree with you there. And they're going to be great places to make a lot of money if you can collect the rent. Okay, let's go, let's go, let's go. Let's go to page 12. Must haves. The must haves. Okay? Must haves. You got to have an asset, okay? An asset is the real estate. That's the real estate. I talk about the deal all the time. Now, a lot of people hear me say the deal, and you think I mean the numbers. I don't really mean the numbers. I mean the deal, the overall deal. It's my shortcut. Like, what is the deal? Is there a deal here? Okay, the whole package. I'm looking for the opportunity. Exactly. The opportunity. The package. Okay, look, the chick could be hot, but could. She could be psycho. Like. Like, she. She could be. She could be hot, she could be awesome. You're a single guy. You're looking for this hot chick. You're heterosexual, you haven't converted yet, and she's smoking, but, bro, there ain't nobody there, man. She's cold. Been with these people. She's the ice queen. How you doing? Nothing there. Like, no offense if that's you, but it is what it is. You don't have the whole package, but it could be. Man, I have a great piece of real estate.

Boom.

Location is ridiculous. What makes ridiculous? I can walk across the street and get my food. Okay, I can walk. Not a Taco Bell. Okay, I can walk. I'm in Houston, Texas. Some places in Houston, you got a great location, but you got a strip joint next to you. Okay, cool, but not really. You got a gas station right here. See, in Houston, Texas, there's no zoning. You could have a restaurant, a Houston's restaurant next to that, a gas station next to that, a tattoo parlor next to that, a cannabis shop. Maybe you want to be next to a cannabis shop. I don't. Okay. And then a strip joint. I don't want. I don't want all that action, okay? I want to be in these pristine locations that are protected by the way crime. Crime in a city is good for one part of the city where there's no crime. So you guys in Atlanta, when y' all went nuts, the whole damn city went crazy during COVID and you guys decided to game everything, and you freaking took Midtown and Buckhead and turned it into shitholes. Bro, there was parts of damn Atlanta that just boomed. And the places that boom is where they wouldn't allow that. They said, nope, you're not doing that here. So those markets inflated faster and the others deflated. So you need a good asset. Number two, you need debt. You're going to use debt on the deal, and if you're debt negative, you're like, I don't want debt on anything, Understand? When you go to sell this, that guy's going to want debt. 3 capital. You need capital. Cash, equity, money, moolah. It don't have to be yours. By the way, as we found out earlier, this is no once, okay? It's Jared's until he gives it to me. Okay? You guys got the camera on over here. And until. Why y' all got to move it, man? Why y' all got to move it? Right, right? And then until I give it to Sherry.

That's how the money moves.

That's how it moves. And then Sherry's going to give it to somebody else or Robert's going to steal it from her. Okay? But money's nobody's. This idea that this money's yours is crazy. It isn't your money, man. Okay? By the way, it's not even money. Let me see it again. Sherry. It don't have to stay with her brother. Okay? It says on here. It doesn't say. It doesn't use the word money one time on here. Not one time does this say this is money. It says on here, however, it says this note. A note. If I owe a note, what is a note? You go, I ain't gonna have no debt. Your money's debt. What are you talking about? You don't have money because you guys don't study money. If you studied money as much as I do, you wouldn't have any. You convert all your money to a real asset. What is a. Not a note can mean a few things. Usually a short written record of something to help you remember. Like a quick jot down of an idea. Like the notes you guys have been taking today, okay? A note referring to US Currency. Grok, you dumbass. That's what I love about grok.

You don't have spicy mode.

I'm going to put it any way I want. Huh?

Said, I hope you don't have spicy mode on.

Maybe I do. Oh, all right, fair enough. A note, when talking about US Currency is a bank note. Basically paper money issued by the Federal reserve. Like a $1, $5 or $20 bill. They're. They're called notes because they're promissory notes. Promissory note is debt. All your money is debt. Okay? So, Sherry, I'm going to give you my debt. You carry it around with you, okay? All I'm doing is converting debt into assets, okay? Real assets. I'm using the capital, other people's money, to buy the asset. Number four. I need a Network, okay, this is people. Okay, Make a note here. Brokers, insurance agents, title investors, tenants could be investors. That's your network management. Management's also network. You shouldn't manage these properties. Robert Kiyosaki told me one day, management's the biggest problem. I said, that's because you don't know what you're talking about, bruh. Because I don't manage anything. I buy the real estate. We keep the management company. They handle the headaches and the problems and the situations, and we collect money. Okay, number five, confidence. You need confidence you don't have. Number five, you're not doing this real estate thing. And because, because, because you guys, most of you have always wanted to invest in real estate. Hey, give me a, give me. How long have you been trying to invest in real estate? Put that in the chat. How long have you considered the idea of investing in real estate? Too damn long. 10 years? 15 to 20 years. 20 years. 40 years. Since 2009. 20 years. I'm 56 now. Four years. One month. Jennifer's like one month. Jennifer, come on, man. Okay, Antonio, too long. Five years for my personal portfolio. Folks, it is time. I'm telling you, this is the best time in my lifetime to buy real estate. Like the kind of real estate we're talking about now. What you do need when you do this, because when you see a great deal, let's say you find a great deal. A great deal. A smoking deal, let's say you have the deal, you have the equity and you have the capital. You have the equity and the debt. Everything's go. Everything's go. Do it. What if, what if you have the deal, you have the dough, you need the equity and you have the debt, you got a loan on it. What if you, you have one thing missing? What if you don't have this and somebody walks up to you and says, what are you doing, man? I'm looking at this piece of real estate. I think it's a good deal. Pretty sure it's a good deal. I got the equity, I got the capital. And your uncle, your, your brother in law, your, your, your, your father says or your mom says, son, I don't think that's a good idea right now. Or, you know, I don't know, man. You know, like, you know, interest rates are going to go down and prices are going to fall and, and we're good. If you don't have the confidence, if this confidence breaches, if you have 100% confidence and it breaches below 50, you ain't doing that deal, you're going to cancel it, okay? You're going to find some reason something is going to cause you to second guess. Trust me, I have lost billions of dollars in deals because I lack the confidence to close the deal. Something broke me down at the moment and I passed on the deal. Okay, Proper deal sequence on page 13. This is the proper sequence to work a deal out. This is a very. You could put six stars on this page. It's that important. This is the proper sequence to work a deal out. Find the right asset. Boom. You find the asset. Two, you contact the broker. Three, you underwrite the deal. You do not underwrite before you contact. Okay, Number four, make an offer. Hey, guys, I'd like to make an offer on this deal. By the way, if you're buying a jet, same thing is going to happen. Find the asset, contact the broker. There's going to be a broker on the deal. Tell me about the plane, how many hours, who owned it? Why are they selling it? What's going on? What do you think the play is? What's the price expectation? What if they don't get that number? I'm giving you all the data to talk to the broker. What if they don't get that number? Are they really sellers? Blah, blah, blah. Then you underwrite the deal against other planes, okay? And then you make your offer in order to control the deal until you get the number. Four, don't worry about all this other stuff. What's the cost to fly it? Where am I going to keep it? You ain't gonna get it, bro. Don't worry about it. You don't need you. You guys are out sequence. You're worried about a hangar and pilots before. You're worried about even controlling the deal. If you don't have a plane, you don't need a pilot. And you definitely don't need to worry about the cost of gas. Number five, by the way, the gas on a plane. I mean, let's keep it real. The plane's no good without the fuel. So I don't even know why you'd worry about the cost of fuel any more than you'd worry about insurance on a deal. You're going to have insurance, okay? You're going to have losses, too. You're going to have evictions. You need to know all that data. But some of that comes with the turf here, okay? Number five, you got to get a debt quote once you have the deal under contract. Debt, then you call a finance broker. Now what? You'll see. Let me just See if I can find one up to show you in real life. What you'll see here is. Let's go back to Ty Pino. You got that email? Yeah. Is that good or bad?

It's.

It is what it is. It is what it is. Okay, let me see. Who am I looking for here? Ty Tal? Yeah. Tao Friedman. All right, let me go to Newmark. Newmark.

He's in there.

It's.

It's. If I found his email once before. It's. It's FR y is his last name?

Yeah.

He didn't send you an email since 23, though.

Oh, he hadn't.

Yeah.

Okay, I'll show you. I'll show you this. Okay. See this right here? When people send you, you're going to get on these lists. I'm going to show you how to get on the list tomorrow. I'll show you how to get on these lists. So you're getting access to the same deal activity I am. This is the Willard's tower. Somebody listed back in. It's a landmark property featuring 5% trade outs, new leases. And this is a group that sent me this deal. Really what I want on this page. Robert Gerrish sold me a deal years ago and he sent me this deal. What I want on this deal is right here. This data, okay? That's your contacts. That's your network. You can. You can literally go from zero contacts. You guys that are joining our mentoring program. We're going to show you how to go from zero contacts to hundreds and hundreds of. Of contacts in the professional real estate community overnight. Like Christine, John, Greg, Robert, Sean McDonald and Kathryn. Now that's one thing. Building the network is one thing. The fifth thing, the list. Remember the fifth thing I was telling you? Confidence to speak to these people. We're then going to provide you with the confidence to know how to talk to these people, call these people, how to talk to them in their real estate language. They have a specific language they talk that is unique. It's not uncommon for any profession, by the way. Ball players talk certain way. Rappers talk a certain way. Art artists talk a certain way. Nice. How you doing, man? Good. How are you? Hey, you sent me that deal this morning. What was that deal? That's up in Columbus. It's a big deal. Yeah. It's a big deal though, right?

Yeah, yeah. 674 units, and I'm selling it alongside a 334 unit.

Really?

Like a plus plus location, highest two kind of highest income areas. It sits right in between it. Yeah, it's just one of these deals that needs a lift. So there are a lot of the new stuff around. It's getting you know, 5, 700, $800 higher.

Yeah.

But this guy, this current owner bought it 2017 and he's kind of, it's just feels, looks and feels tired.

Yeah. What, what year is it, George?

2001.

Huh. And then, and what did it trade for last time?

117 million in 2017 and we're selling it for 130 and he's put in like 9 million bucks.

Okay. And then just. Yeah, yeah. What. What do you think I got to spend on it?

So exterior we got full roof replacement. And then honestly we've got like a five million dollar contingency. So say seven. But then interiors, it just depends on how high you want to take it.

Yeah, yeah.

Their current renovations are pretty minor and they're getting two to 250 bucks for those. We think you can kind of close the gap a little further. Do like a $20,000 spend type and get, get that 400 range.

Yeah. What if, what if I didn't spend anything and I just, just grabbed it the way it is and just sat on it.

So you would, you would need to spend that. You need to do the roofs and you need to kind of have a contingency. So say you got 6 million bucks. So you'd kind of be in that basis of 1. 134, 135 somewhere in that range going in tax adjusted, you're buying it at a 5,7 cap higher than market. But that we have it at that higher cap obviously because there is some capital needs. So.

Yeah.

So I mean that's the long and shortage.

Yeah.

As well. It's size as well. Agency.

Yeah. Why do you say it's a. Why do you say it's a AAA location?

So it sits. Is the is sounds low. This is. We're in Ohio, remember Columbus. Average household within a mile of 600, $680,000. Average household income is about 145. So for here that's about as good as you can get. Honestly. It's about, it's about 60 second drive from my house. There's a lot of. If you're going to have a kind of a seven figure home in Columbus. Multi seven figure home. This is, it's next to this neighborhood. It's called Upper Arlington.

Yeah. Where is it on the map if, if 12 o' clock was at the top from downtown.

12 o' clock was at the top. If you're like in the middle of downtown. It's just gonna be north, slightly west of downtown, but it's way within the loop. So like just outside it, it's just northwest of downtown.

Yeah. So is it Dublin?

It's inside Dublin. It's actually a better, it's higher income and better location than Dublin. But it's, it's. So it would be south and then just a touch east of Dublin.

Okay, so we're. Hayden Falls.

It's south of that even.

Oh wow.

It's called Upper Arlington.

Oh good. Upper Arlington. Yeah. That's a great market, right? Yep, yep. Yeah. Okay, let me look at it. So, so how, how much, how, how much, how much debt will it support?

So currently you can get. Well you can assume the loan which by the way has higher than what you can get, but you can get about 78. 78 million in debt currently.

Okay, and what's on it right now?

Let me just pull it up. Most people aren't looking at it because the IO is burned up. Sorry. Right off the top of my head. Corey, give me two seconds here.

And he was at 117. He spent, he spent like 20. What? He spent on it. He spent a bunch of money on it.

Like eight. He spent like eight. Honestly, he just under capitalized himself on the deal.

Huh.

Do you know, you know the Solomon Organization?

No, I don't know them.

Zach Solomon. They're out of New York and they self manage and they just. Yeah, it's just. They just haven't done a good job. But I've sold this property multiple times and most people just crush it. Yeah, let me see here. Sorry, give me a second. I'm trying to find this debt.

No, it's all right. I'll dig into it. It's fine. It's gonna be. It is what it is. So I'll dig into it. Anything else? Anything else you have that you love?

These are my. These are my favorite at the moment. If I'm just being direct that we have one that's going to come out in the fall that's pretty interesting. It's up in the Polaris submarket. Sorry. The current Data is yet. 80, 87.8 million bucks. But it's. It matures in 2028.

Yeah, 2028, huh?

4.24. But it's fully amortized.

Yeah, I thought this thing would support more debt. I thought it would support like $90 million of debt. Well, at a five and three quarters. At a five and three quarters. Yeah.

Let me just look here. Five and three quarter, sorry. He's got 86 million, not 78. 86 million.

Okay. And hey, what, what are the. What are the average rents on the property right now, currently?

They're like in the 14, 25 range.

Okay, and you think. You think there's some upside?

100. Like, it's a crazy amount of upside on it.

What's the. What's the name of it, George?

It's called the quarry. Q, U, A, R, R, Y. And it's also surrounding. So the whole thing was built around a rat quarry.

Okay.

It looks like it's built on a lake.

Okay, let me go dig in. All right. Okay.

The other one I'd like for you, it's gonna be. We're probably three, four weeks out. And I'll give you a heads up on it.

Okay. Thanks for thinking about me.

Yeah, yeah, thanks.

Bye. Okay, so that's how you do a call. Okay. Like, I. I got everything I need on the deal. I don't. I have no clue if it's the right asset. I have no clue if it's the right asset. I did contact the broker. Now I'm underwriting the deal. I'm slowly underwriting while he's talking to me. The deal. Okay. I'm like, why? Why is this not going to support 90 or 70, 70% debt? Okay. Which would be about $90 million. All I have to do right now in this deal is make up 52, $55 million. You're like, only, yeah. You know, it's less than 135. All I'm doing is I'm trying to eat the thing up. I don't even know if it's a good deal. I'm learning how to talk to brokers. I got 14, 25 units. He said it's a great deal. I have to trust him. He said that's a great location. I have to trust him. Then I'm have to get on a plane, fly over there and look at the deal. If I'm even interested. Which, by the way, I'm not. And the reason I'm not is because it's not in my profile. So one thing we have to do by tomorrow is we got to make sure you guys and we. I promise you, we to do this one. I'm going to give you a bunch of people to know what list to be on. Jared, make sure we do this. We want to build your profile tomorrow out. We want to build your profile of what you're looking for when you finish tomorrow. So, you know, I'm looking for this number of units, this age, this size, this market, these parameters. This is not my deal because I'm not doing value add. Why aren't you doing value at Grant? That's not my business plan, okay? If you look at the real estate I'm buying right now, this asset, the Quarry, I have no clue what this looks like. The quarry. Where? The Quarry Apartments in where? Columbus. There it is. The Quarry Apartments. This is just not what I'm buying, okay? It doesn't look like anything. It looks. It looks like what I used to buy. And just because I'm not buying it doesn't mean it's not a good deal.

What, you like what they did with those colors there?

Not really. You know, but maybe it's. Maybe that's what they want there. So you got to know your market, too. You got to know what that market wants. Let's see what these rents are while I'm here. See, there's the rents. 1300. They must be big, no? 13 to 2600. Jesus. What a spread. That's terrible marketing. Okay? Why would you put the 2600? I don't understand why anybody would put a spread like this. Oh, go to do full disclosure, bro. If you're starting at 1300, put 1300. If Annie walks in and picks one, that's 2600, she's going to then say once she's there, there's no reason to tell her this. When she. She's on a website, she gets there, and she picks the one across from the pool with the perfect view, with hot guys outside on her balcony that are throwing love and balloons at her or whatever. Then she's got to pay 2,600, okay? You get the 1300. You get to look at the parking, the parking lot, and the trash. The trash can. You want to look at the pool, boom, it's 2,600 bucks. But you got to get her there first. So this is bad management right here. There's no reason to do this. Look at every one of these. They do this stupid, completely ridiculous, terrible management. No reason. And he suggested that in that phone call, by the way, that they're not great managers. He's like everybody else killed it on this deal, but these guys, okay, I have real estate that I own today that we have not killed it on, just so you know, because we own one property in the market. I'll give you an example. What's that deal I own in Maryland?

Columbus, Columbia, Columbia.

Columbia. 10x Columbia. We brand everything 10x. Great location, by the way. Ridiculous. 10x living town Center. Look at that.

Columbia Town Center.

Yeah, I mean, I bought. I knew I was going to buy this the first time I saw it on a website. The problem we had with this deal is I never followed up to get more assets in that market. And it's a mistake. If you're not going to own. You need to own more than 1 mark. 1. 1. 1 asset in a market. Okay, but look at this. Look at, look, look at this location. Oh, I don't have. I don't have 3D on this. Why do I have 3D, man? Damn. Okay, why, why, why can't we have 3D on this? On my. My thing, guys, Maybe that's it. Nope. Yep. Let me see. Where's that Whole Foods? Oh, oh, excuse me, Excuse me. Is that Whole Foods right there? Yeah, that's, that's, that's. That's the place. And that's Whole Foods. Okay? This is a. This is a very, very tight market right here. The only mistake I made here was I didn't go buy two more deals in that little tight market. So guess what? We don't pay attention because I got stuff all over the place. I have nine deals. Do you guys have the image of all those deals with the flags in Fort Lauderdale that I have? You got it. Yeah. You see that? See, that's how you concentrate a market. So you come in with a plan. This is what we're going to do for you guys tomorrow. Jerry, you got to make sure we do do this for. For everybody that's committed. Build a plan. Your market. The product like this might take two or three years to pull off.

Top broker.

The top broker. Who's the player? One guy sold me all these. And by the way, this isn't everything that we have. We also have 10x down. I mean, you just want concentration in a market. By the way, the rents elevate at every one of these properties. So I have a property here that's 15 years old, one that's 10 years old, five years old, and brand new, and so the rents can just roll. I'll have something right on the water. I'll have something where the. Where everybody's crazy and having fun. And I'll have another place that's very mature with families. We ought to extend that, guys, for the next one all the way up to Boca and then to. Is that 3D? Yeah, I just want to go. I want to come out. I want to get out. Satellite it from the top. Yeah, there you go. That's perfect. See? See, this is the property I was showing you. And by the way, you can always look at the real estate like this. See, this thing is just beautiful piece of real estate. Massive property. Couldn't build this again. We're in below replacement costs. Fantastic entry. And then we got right here, Whole Foods. People find that to be, you know, attractive. Got a new building going in right here. I think this is the arts building. So very tight to build. Okay. Get debt quotes. Fifth thing. Sixth thing. Raise equity. Start raising money for your deal. How do I raise money? I've raised $1.7 trillion billion dollars. 1.7 trillion. $1.7 billion. And we can show you how to raise money. In fact, once a year, twice a year, we have a. What's that? Capital raise.

Capital raise event.

When is that? When is the next one? October 1st. Miami, Florida. Turnberry Hotel. $10,000. No, it's right here in our offices. Right here in our offices downstairs. It's $10,000 a seat. And we teach you how to raise capital at that event. What's the website so people can buy that ticket if they want it? GrantCardOne.comCapital GrantCardOne.comCapital if you want to reserve your seat or more than one seat.

That's what I thought it was.

It's 10,000 bucks. Hit the website. I want to see what it looks like.

No, it's not capital. Grantcardone.com Ford no, it's not capital. Raise.

Grantcardone.com Raise and I'm gonna. I'm gonna teach you everything we do to raise capital at that event. We've raised $1.7 billion.

You don't have to put your cell phone number in there. Okay. All right, great.

And I just want to see how much it is. Yeah, it's 10,000 bucks. Today only. It's not believable today. I know, but that's not what it says. It says today only. Today only. Like tomorrow is not.

Well, tomorrow would be today.

Just fix it. Okay. Okay. You know, so anyway, what's always coming but never this event, this shoot, this event will sell out. By the way, we only have 100 seats down there, so this event will sell out 100 times 10,000. Guess what? How much money that is? Yep. That's exactly what it is. And that's what people are going to pay to be at this event to learn how to raise millions and millions and millions of dollars. Just so you guys understand, this will not be the only money you spend to buy deals. You're going to have to go look at a deal that Costs money. You're going to have to fly someplace. That costs money. You have to get a lawyer. That costs money. Lawyer could cost you 25 to 30, $50,000 on every deal. Okay. Oh, my God. What are we going to do with all this? We're going to show you a way to hack this, to use AI to start to reduce some of these bills with legal and etc. Okay. All right, back to page 13. Raise equity. Seventh, thing you're going to do is close the deal. A bunch of people going to help you close this deal, by the way. And then next to number seven, you're going to have a closing dinner. We're going to have a big party. And I'm coming to the party. Okay? We're going to close the deal. We're going to celebrate, and then we're going to start managing the asset. Number eight. Number nine, we're going to raise rents. Yes, we are. You damn right we are. Number 10, we're going to manage the asset for a sale or refinance. So we're going to know when we go in, we're going to flip this and sell it and pick up some dough or we're going to refinance it. Can you show the Boca deal again? I was with a guy yesterday. We're having a little discussion. I control this asset. He wants me to do something with it. I said, hey, bro, I can go flip this off tomorrow. I closed this deal. When did we close this, Jared? I was in France two weeks ago. Yeah, close this. I closed this two weeks ago for $235 million. I said, Bro, I can go flip this out right now and pick up 25 million bucks. So what you want to do here? That's an exit, by the way. Another exit is we just condo all the units and we sell each of the 366 units for $1 million. That's 366 million. And we make ourselves, whatever that number is, 130 million bucks. Or there's a whole bunch of exits here. We sell the retail underneath it, which is vacant, by the way. I sell it to somebody else. Just the retail for 20 million. There's so many exits. How about this? How about I add some airspace antennas for satellite, and we get some of that money, okay? Or how about I just buy the hotel next door and we join the two together and we make the retail more valuable. You need assets, folks. You got to have assets. Nobody's going to call you and ask you to buy your products. People are going to call you and ask you, do you own this? I saw your name in the registry. I noticed that you bought this property and we want to own it. I get this call at least five times a week. Hey, man, do you have this deal? Or I get an email, do you have this deal? Do you still have it? Would you sell it? Okay, all right. Raise the rents, manage the asset. By the way, when you raise the rents, it makes it more. You're like, I don't want to raise the rent. That's terrible. The next buyer wants you to raise the rents. That number 10, you're going to manage the asset. Number 11, you're going to sell it, refinance it, or bundle it. We'll talk about that more tomorrow. Number 12, scale. You bought one. Don't go to another neighborhood. Go do it again in that neighborhood. I bought a deal in Houston, Texas. And let me see, I'm going to go to my investments. We bought one deal. We bought this deal right here. 15th street flats. I said, bro, you guys got anything else? Once we got a purchase of sale agreement. By the way, those cost money to have a purchase sale agreement. I said, while I do this deal, why don't we add another deal that you have? And they had another deal three blocks away. We bought that deal as well. One purchase and sale agreement. So saved us money, saved us legal fees. We already had a deal with them. And guess what? The second deal turned out to be the better location of the two deals. Yeah, it was smaller, but there was something about literally two blocks away. Even though the amenities are not as hot on this the 10x Heights Waterworks deal, the amenities are not as great, the rooms aren't as big, but our turnover is low. Lower than at the flats. Okay. Both great locations, by the way. One just performs a little bit better than the other one. Okay, so scale your portfolio now. Number, page 14. The asset is the most important thing. This is number one, the asset. The location is senior. Senior by 10x. Don't compromise on the location. Two, what type of real estate? All real estate is not created equal. 3, what size deal are you going to look at? Sure, what size deal are you going to look at? Okay, is it going to be 4 units? 8 units? 12 units? 16, 32, 64? I don't care. 128, 264. How big can you think? You want to go buy a real estate company? Good. Buy 12,000 units at one time. How big can you think? How big can you go? Trust me, ten years from now, you're going to want More, not, not less. Make a note on number three. Deal size. I'm sorry. The number of units is the most important number in real estate. The number of units is the single most important number in all of real estate. Let me show you why. And look, I know a lot. I know most, most of the people that teach around real estate or real estate investing or flipping a house or I know most of these guys. Like who, who, who's some of the names?

Jll Cbre.

Who are the names of people that educate people about real estate investing?

Robert Kiyosaki.

He doesn't really, really. He doesn't really educate.

Pace.

Huh?

Tom Ferry. I mean, those are residential guys, you know?

Yeah.

I can't think of a big name forum or.

I don't know. I don't know what it is. Tony Robbins, Does Tony do this?

No.

Russell Brunson?

No.

Little man? Damon John?

No, he don't do it.

Rod Khalif. Yeah, he's a good dude.

A Rod. A Rod owns a bunch of real estate, but he doesn't teach about it.

Yeah, yeah. Todd Depp. Yeah. It doesn't really matter who you learn from, but because there's some things that just don't matter. If you take one unit and you raise the rents $1,000, it's still just 1,000. If you had 100 units and you raised it $1,000, that's $100,000. Okay? Now you're probably not going to be able to raise the rent on one unit. $1,000 maybe. But what was the last guy thinking? Typically it's going to work like this. You're going to raise one unit $25 times 12, it's 300 bucks. Okay? This is scale. This is number of units. The most important number in real estate. Watch this. $25, one unit is 300 bucks. Okay? 14,200 units times $25. Do the math with me, okay, And I'll show you the importance why the number. And I wish somebody would told me this when I was 28 years old. I would never have bothered with the first two deals I did. It was stupid. It was a distraction. It. It actually threw me off for three years. I could have been doing when I was 31, when I was 28. I didn't. I didn't. You don't need to waste time in this, okay? 14,000 times 200 times 25 times 12 is $4,260,000 a year if you collected the $25 from every one of the units. Okay. Is that right? Did I Do the right math there, and I want you to divide that by.05. That's $85 million. Divide 4,260,000 by 05. Yeah, that's $85 million. Okay? Do you guys understand? You guys understand? For my investors, every time I raise the rents $25.

Yeah.

Did I do something wrong? Every time I raise the rents $25, I make my investors 85 million bucks. Okay, how many of you believe my average rent today is about 1950 bucks. Okay, how many? Believe in the year 2034. Just put a number in. This is best in class, best location. Our average rent is only two grand. These are cheap rents. Actually, in my mind, I'm like, these rents are stupid. Now, I do have some properties that are 4,500. Okay? My average rent is about $2,000 right now. What do you guys think the rents will be in the year 2034? Best in class locations, Florida, Houston, Austin, Maryland. Okay, great locations. Look at some of these numbers. 3220, 500. Angelica, you think the rents are only going to go up $500? Even so. Even so. Let's use Angelica's number. 500 bucks. Okay, let's do the same math. Now, this is called the increased value calculator. The lowest number I saw in here. Oh, no. There's John. John said 1500. John, you think the rents are going down? Bro, bro, grab a gun. Okay, okay. The lowest rent increase I saw was 500 bucks. 500 times 14,200. Assume we collected the rent on all of them. We never would. Times 12 equals. Did I do something wrong? 500 times 14,200 times 12 equals $85,285,000,000. This is insane. A year in new income, not new value. We came up with the same number. That's over and above what you're getting now. A month. I'm sorry, a year. But you have it divided by the cap rate. Divide that by point zero five, and we. We created $170 million.

One point.

I'm sorry. $1.7 billion of new revenue. I'm sorry. New value for our investors. See why I raise money? Why would I keep this all for myself? One, two. I can't buy all this real estate just with my money. I run out of money. Everybody runs out of money. Okay, how do you create real value? You create a connection, a network. And you go buy good assets. Am I being valuable to my investors when I go out and buy best in class real estate? Find a trophy property. Find the deal. Buy the deal. Negotiate the deal, Negotiate the legal bullshit. Fill the property up, manage the deal. Let my investors come in and we could share the potential to, to make somewhere between 85 million and $101.7 billion in new value. Everybody wins, man. Okay, so you guys got to know the deal size. The unit size matters. Okay? Number four, potential profit. You have to know what your potential profit. Potential profit. Your targeted profits. Your targeted returns. Not your promise, but your targeted returns are going to be on a deal. Number five, monthly cash flow. What's our positive cash flow in a deal? What extra money do we have after all the insurance and the taxes and the goo boos and the babas and the mistakes and the problems? Number six, who's going to manage this asset? And just a little note here, number six, you do not want to be in the management business. Folks, I own 14,000 units and we're still not the manager. We use a third party to manage. Once I get to 25,000, then I'm going to probably integrate my, my and go vertical, vertical integration on our, on our management company. Number seven, how will you exit? Are you going to sell it? You're going to refinance it, bundle it and there's a bunch of variations to that. Okay? All right. Types of real estate. We don't have the pictures. What a sad thing. This next slide shows. That's all right. Single family homes. Mansions. Sad. Pretty sad.

They have, they have pictures in their, in their book.

No, you're lying, man. They have pictures and I don't. Yes. Wow. Apartments. So unfair.

And then you have a chart.

You got an office.

Cool looking chart.

Retail. Retail. Okay. Where the Chanel store is, the Cartier store, the UBS store, the Walgreens, the cvs. Be careful of the retail folks. These single tenant pharmacies and, and man. Any of you guys are invested in CVS or Walgreens? I might. You guys can't see the. Looks like blockbuster to me. 6. Self storage. 7. Mobile homes. 8. Land farm, oil lease. Empty lots. There's probably a bunch of other variations to this. Find the one you're going to pick. Pick it. Stick and pick, man. Figure out which one of these you're going to do. All these have problems. Every one of these has a problem. Okay. Now it just so happens that apartments have more green lights than any other asset class in here. It protects against cash flow. It protects your capital. It provides cash flow, long term appreciation. It's got great write offs. Good debt, protects against inflation. It's proven and tested, easy to finance. Easy to scale, hard to disrupt. And it is not liquid, by the way. I could say number liquid. The last one is good for you, not bad for you. Okay. You know that Austin property, I told you, I said, man, God dang, it's not doing that good. I don't get to make any decisions about it. I don't have to worry about that damn Austin property because I ain't liquidating it right now. And because I can't easily liquidate, I don't think about liquidating. You understand? I don't spend time thinking about getting rid of it because it's not liquid. It would take nine months to sell that asset on a good day. All right. Okay. Q and A.

Beverly.

Beverly. Hey, Jared.

How you doing?

Beverly, we've been waiting for you to ask a question, buddy. What's happening?

Well, I've been waiting to ask my question. I have three questions. Is it okay if I have three questions?

Fine with me. I'd rather three good questions from one good person than three bad questions from three bad people.

Well, I hope. Well, I hope they're good questions. Okay, first question is with regards to the brokerage, working with brokers, do you have. Is there like a training part of what we've got or that's somewhere in one of your trainings of how to work with brokers, how to have conversations with them? Like, you know, because I guess that's a whole part. It's a whole nuanced piece when you're working with this whole thing is actually knowing what to say to brokers. What's the lingo, what's the language? It feels like I'm going to be learning French.

What to say, what not to say, how to say it, how to ask the question. What's relevant right now. Now, some of that changes over time in markets. So, like, like, if you're in a market, like with George Scap, okay, like, like I could. He. He suggested what the cap rate was in that market. Those. The new numbers can change over time. Another valuable reason why you guys, when you guys are in our weekly calls, how valuable that can be to know what a market expectation is. So, yeah, yeah, you. You have, you have the data on how to communicate to that broker, including me and our team actually making phone calls and giving those examples. What's your second question?

And so where is that? Is that in the mentorship program? Is that in what we already have with.

That's in the mentor.

That's in the mentoring program. That's in the mentoring program.

You'll hear Me talk about it in the investing, the, the, the Mastering the.

Mastery class, the introduction to buy apartments.

And you'll also hear me talk about it in the introduction to buying apartments. I think a lot of people over, they don't understand how important talking to the broker is.

Yeah. Okay.

Like the questions we're going to ask are not going to be how much is it? It's going to be what's, hey, what's the expectation on price?

What I heard when you had that conversation with that broker, what did it.

Trade for last time? And we even tell you in there, look, if they say it doesn't matter, you're going to, you know right now they're not a professional real estate investor. That 600 unit deal, that's $130 million he offered what it traded for last time. He, he's not hiding it. I'm buying a deal in Chicago right now. They offered the last sales price. Why wouldn't they? It's a record. It is a recorded event. If a real estate agent tells you it doesn't matter, it's because that person, no offense, is an idiot, because it does matter what they traded for last time. And but the fact that is the recorded event even matters more. So what's the big secret? It's not a secret. This is in the Epstein files. Okay, what's the second question?

Okay, next question that you said there was a right sort of, right at the beginning there was a formula that you put up and you really went fast through. The formula. Is that in, that's in the mentorship. Was that in the current training that we have with the 297.

Do you remember what the formula was? Will you remember what?

32. It was 32 times 200k times 12 times 19 times 0.6.

I'm going to do, I'm going to do it again with you. Okay, I'm going to show you that again.

Okay.

Yeah, it's. We're coming, we're coming up on that.

I'm coming up on that. Okay, cool.

Then I'll just do my third question then.

Yeah.

And so I'm in, I'm in Maui, in Hawaii. And I don't know, many people might not know what's going on here in the property market. We have two short term rentals that are in the hotel zone. They're not big, giant. I mean this is like new, the apartment. I was like, I'm tired of going one for one. I want to go a bit bigger.

Yeah.

And so, but what's happening here is we have this apartment zoning law that's changing where the apartment zoning was that you could have an apartment and do short term rentals with it. But they're now scrapping that as of by 2028-2030. There's probably gonna be a lot of lawsuits going on. Who knows. But essentially there's gonna be a lot more apartments opening up now. Some, a lot of these are I guess individually owned, so I'm not sure. Also with the Lahaina fires, there's a lot of building going on and they're limiting purchases of property. But then there's all these apartments that are like people, they're not gonna be able to do short term rentals with them anymore.

Yeah.

So there's a whole look interesting.

Let me just help you out here. The short term rental thing is very risky for all you guys. I've been talk like I've had Airbnb guys in my offices, we've done podcasts with them. I have warned every one of these guys for four or five years now. Bro, this is gonna blow up, bro. I'm you telling, telling you, leave the short term rental market alone. You're going to get away with it for a little while until the hotelers are all going to get together and say, yeah, this isn't good for us. The Hiltons, the Marriotts, the Westons, they're all going to get together and say, don't allow this because it's pulling away from the hotel business. Okay? And, and in many ways it is. It's forbidden in New York City. Now, now people, it's not forbidden. Oh yeah, yeah. You can do it as long as you stay in the rental with the person. And the rental, by the way, short term rental now is, is 30 days. So I have to rent from you for 30 days. That ain't short term, bro. That's like there's people. I've been, I could not stand being with them for 30 days. Okay? I just went on a trip with my family. Two weeks was enough. Like, I'm like, okay, enough. And I need to tap out for a second. So, you know, I would be very careful. Nashville, Tennessee, made it illegal. Las Vegas. Vegas, it's impossible by the way. Las Vegas is having a tourism problem crisis right now. So you guys are in the short term rental business in freaking Vegas. You're getting, you're getting crushed. You need a long term renter. 1, 2. The banks are not going to underwrite anything less. They're not going to give you credit for seventeen hundred dollar Nights, they're only going to give you credit for income on a long term rental.

So where I was going with that is that these are going to go from being short term rentals to long term rentals. They will no longer be short term rentals.

That's right. Which means you're not going to get the per night price. You're going to get an extended 30 days, a $2,000 a month price.

Not, not your monthly price. Because they're wanting to have more people living here.

Yeah.

So I think that that makes sense. Where I'm going with that is there are places that are apartment buildings.

Yeah.

That were short terms that are going to change and there could be some opportunities there with regards to, you know, more purchasing.

Yeah, yeah. Well, look, you're in a very tight market, very, very difficult to build. You're in one of those barriers to entry that are impossible. It's going to be very difficult to scale there. You know, Canada has a similar problem. They have very little housing stock up there. It's all single family and condos. Your market, your vent, like Vancouver and Toronto, very similar to Hawaii. Okay. It's mostly condos, part time owners, they don't really live there. They just fly in and fly out. I mean it's a great market. It's never going to be spectacular because you're never going to have a lots of movement. You want a lot of movement. You just don't have the volume and the activity there. But hey, you're in one of the most beautiful places in the world.

Florida is more like a. If you're looking for like the whole getting in, like with, with the system you're teaching. The better option would be to really look for places like Florida or like you were saying, Austin or like places that are a bit more. There's a lot more people living there.

Maybe, maybe. But I mean you can also, you know, look, there's an exception to every rule. And I mean I'm seeing product on, in your market right here. Here's a Honolulu for sale. $32 million, 79 days in the market. What is this? Jared, what do you have in here for sale for? What's the question?

Filters.

Huh?

Click on filters. Multifamily.

Oh, you want me to, you want me to actually, you want me to do multifamily? Thanks.

8.9 million.

$8.9 million is 300 grand a unit. Seems pretty cheap to me. I mean, I know what I got to pay for other stuff. Here's 230A door. $2.1 million. I mean imagine having a place over there in Hawaii. Investment, owner, user.

Well, one thing you also got to remember is that there is very, very little long term accommodation here. Like people, the people are struggling to find long, to have long term accommodation now it doesn't mean that you have to have like a Ritz Carlton kind of vibe. You don't have to have a huge.

Big fancy place, might be a 400 square foot unit. You get to breathe Hawaii air. You should be happy and grateful, like.

You know what I'm saying? So that's what I'm saying. What I'm, where I'm looking is like there may be some apartments coming within the next couple of years. I mean, I know years comes quickly, right? Is there might be somewhere there's going to be long term availability. So with the market, even with short term, and we're in short term so we know like it's up and down, right. It's never, it's never consistent. We have long term rentals in New York which are very consistent and they're great. So it's going to start shifting from a short term market to more of a long term market because we need this. Maui is only so the Hawaii is only so big. There's not so much land like on the mainland like you said.

Thank you for that. Yeah, that's great. Awesome. I love it. I love it. Now again, you don't have the scale, but you have the, you have very, you know, you don't, you don't have scale, you don't have volatility. You need action. You need action because you're going to have to exit the this stuff at some point if you want your money. Okay. But it's a great long term play. Thank you for your question. Let's go to Rus. You didn't get it right. Neither did I. How do you pronounce your name? Manusu.

Hello.

You didn't get it right. Did you get it? Say it again. Say it again how it's spelled. Rasu. Have you said it?

Rau.

Yeah.

He said it right? Yeah, yeah, he said it right.

So I just have some couple of simple questions because I'm really new to this. First I wanted to ask about like.

What city do you live in? In Rara. Rus.

Denver, Colorado.

Where?

Denver.

Yeah.

Okay.

I moved from Florida last year.

Okay.

So the tax benefits you were talking about, I just wanted to know if like your regular income from your employees also like falls under that or if your income has to be under the LLC or.

Yeah, no you need to be. You, you should, you should put. How many hours is it, Gus? 15 hours a week, 750 hours a year. And, and tell your accountant. Rahul. Yeah, whatever. To qualify you as a professional real estate investor, he's going to be like, do you spend this many hours? Yes, I do. Check the box, check the box. I'm a professional real estate Investor. I spent 150 hours, 750 hours a year doing this. It's tax code, IRS code.

4, 6, 9C7.

No, that was the earlier one. Is that, is that this? Yeah. 469C7. No, no, it's accelerated depreciation. But anyway, figure out what tax code is. You can ask AI and then it's 750 hours. Document your 15 hours a week. And then if you're making $50,000 a year earning income and you go buy a piece of real estate, you're going and you have $50,000 worth of losses, you're not going to pay any income tax. Thank you. Okay, let's go to sm. Hi. Hi. Say this. And Max. Hi. Okay, so I have a couple questions. Terrible picture, terrible picture. I can't even see anything. What, what, what, what? Feel like I'm in a drug incident. Okay, that's better. So my question is, do all the investors take, take a piece of the depreciation of the asset? They do if you share it with them. So if you do. When you're in my deals, 10 of us buy a deal and we each get a million dollars worth. We each invested the same amount of money, we each get the same amount of depreciation. Now some of the big funds and some of the REITs, they don't give you any of that. And most people don't even know that they're not getting that. Let's go to, let's go to Jamil. Great question, by the way. I had one more, I had one more question. Go ahead, go ahead. While you ladies. Okay. Do you suggest starting a business?

If not, how do you pay your investors?

And if. Yes. Do you structure business for the most tax advantages? And yeah, look, you're not. And how much? You're not. Yeah, you're not structuring a business. You guys need to get off this idea that you started some business and you're buying a business. Real estate is a business, okay? If it had 10 units and it earned $1,000 a month from each unit, it earns $12,000. And each month you had $4,000 worth of expenses, there's $8,000 left over. If you had no debt on the deal, you would then distribute the $8,000 to the eight investors, let's say equally. If they put in each, they'd each earn 1,000 bucks a month. They put some money in times eight is 8,000. Now, you probably want to. You probably want to keep a little money left over for any kind of, like, fixing stuff, problems, situations, blah, blah, blah, right? But that's your distributions. You create the formula, you create the platform, however you want. Okay, let's go to Jameer, and then Randall, come off of mute, bro. There. There it is.

Can you hear me?

I can when you talk.

All right, sounds good. So I have two questions.

I know in the course you speak on going no less than 16 units, and in here, we're talking about doing four unit deals.

Yeah. Where's the best starting point for someone.

Who'S just getting started out?

He's still going for 16 and more.

I like the 16, dude, but I like 32 better. Okay? And I like 64 even better. Because it's easier. Like, it's just easier. Guys, I'm looking for the easiest route. Okay? 128. I only have to raise the rents 50 bucks. Remember, the goal is $1 million. I want to make my mama a millionaire. I want to make my family a millionaire. I want to make myself a millionaire. I want to make a million dollars for all my investors. So If I have 16 units, I got to raise the rents 400 bucks to make the million dollars. If I do 128 units, only have to raise the rents 50 bucks, and I say make the same million dollars. But, man, I'm telling you, it's easier to raise the rents 50 bucks than it is 400. It's easier to find a deal where I can raise the rents 50 bucks. I could find any deal. I could literally urinate in the front yard and raise The Bent rents 50 bucks. And the value add. If you're going to raise the rents 400 bucks, I mean, you probably got to fix something, because I got to go to you and say, hey, we're raising the rents 400. What for, bro? This place is. It's a shithole now. Why are you raising it 400? Because it's getting. Then you're just a slumlord, and nobody wants to be that guy. What I'm hearing is bigger the deal, the easier the deal is. Now, the problem with the deal, your financial problems, folks, are right here. Your financial problems are they. They span about six and a half inches, okay? From this side over to here. It's really in your imagination. When I say 128 units, you guys like, I could never do that. But I get down to one unit, and you're like, I can do that. Okay, well, why? Because you've been programmed to think small. And I'm not saying you yourself, you had a great question, by the way. Jamil, most of us have been programmed to think like little. Like tiny, little people. Buy a house and live in it. It's an investment. No, it's not. It is not an investment. It is a consumer product, like a pair of jeans. Okay? It's crazy. Your car is more of an investment than your house is. And your car is not an investment. Smarter thing to do would be to have neither one of them. You would live one block from your office and walk or one mile and Uber. You would Uber. You'd call them, say, boom, pick me up in a. In whatever. And it costs you $13 one way, $13 back. You don't have insurance. You don't have a garage. None of it. It's stupid. You guys should all figure out how to reduce all your expenses and take all that money and buy real estate. That's going to inflate over time, okay? There will be a future. My kids will Uber everywhere. They will be in cars without drivers. This shit's happening, okay? Everyone will have technology right here. No one, no community, no color, no race, no sex will have an excuse for anything. Okay, guys, none of you guys will have excuses in the future. Everyone will have access to all information, all intelligence, and all genius for zero. Now it's going to be who gets the data, who's willing to dig in and learn. And at the end of that, who's going to own the shit. You know this adage about the new world order? They say you will own nothing, and that shit's here. You're gonna be happy about it, too, folks. They're gonna give you entertainment for free, okay? You'll have. Your girlfriend will be grok, but you can call her whatever you want. She'll talk nasty to you, bro, all day long. It'll be free, okay? So everything you want is going to be free. It's gonna be on your phone. You're not gonna go to movies in the future. You will not go to the golf course. You will not go to the Philippines. You will not go to Singapore. You're not going to go to Dubai. You're going to put a headset on and you're going to be hypnotized 20 hours a day. They're going to give you a check to stay home. You'll still need a place to stay. Okay? You'll put these goggles on, and you'll go on trips. You'll go to Vegas without ever going to Vegas. This is going to cause massive deflation across the planet. You will still need a place to live. And the cooler the place is, the more you're going to pay. So if you had a swimming pool, man, security, a cool community. So I could take off my headphones to go actually interact with other people, because not everybody's going to buy the phones. Not everybody's going to buy the goggles. They're going to be like, no, man, I actually want to. I don't want you to Uber me. I want to fill a steering wheel. There's going to be part of the world that resists this for the next 30 years. Okay? So. So that's where we're going. Okay? Now there's going to be a whole bunch of stuff destroyed along the way. A whole bunch of businesses are going to be destroyed. Banks are going to be destroyed. CVS's and Walgreens. Amazon's already a dam. Amazon's going to be. You're buying movies from them, folks. You're buying your food from them. And now you started with the books, then you went to your toys, then you went to your household goods and services, your garden hoses. Your food started getting delivered. Now you go to Whole Foods to get your Amazon food, okay? They're in your food system now. They're going to go to your movies. Boom. They got you, baby. They're on lock. You're talking about scale at massive levels. Would they like to be in housing? You bet they would. Okay, So I don't blame them, by the way. Can't hate on a guy that wants to do more. So you guys all have a chance. You're not going to beat Amazon. You're not going to be AI. You're not doing coding. You're not going to come out with some great fucking app that everybody wants to download. Nobody wants another app. The best chance anybody today has of making a fortune is you're not replacing this, okay? Elon Musk is going to destroy the auto business. He's going to destroy it. You won't even be talking about cars in the future. You're going to be talking about robots. Like, in the 50s, everybody had a home and two cars. In the future, you will have a rental and a robot. Your nanny will be a robot. Schools will get destroyed, okay? Schools across the country will get destroyed. Nobody's going to have. Everybody's going to have a nanny. Everybody's going to be entitled to a nanny, by the way. And the nanny will be teaching you. AI. Every. Every kid will be a Newton, a genius. Information will become completely deflationary and cost nothing. You will still need a roof. You will still want to go for an actual swim. If you want to go for a swim. But nobody uses their pool. Now, I could give every person in America a swimming pool in three weeks. You will not be using it, okay? You'll still want a place to live and you'll still want to look at your pool. The value of a pool is not swimming in it. It is looking at it. Like, God damn, that thing is beautiful. Maybe I'll get in it. Nah, it's wet. Ok. All right. So if you could provide that to people, you know, you'll get rich if you could just make people's lives. Lives easier. Okay? How far do I have to travel to work or to get my food or to have my food delivered? You know, in the future, apartment buildings won't have parking lots. You're not going to have these ugly parking lots like we have. Like we might have an eight acre property. And it's got an acre and a half of concrete on it. It's not. It's not attractive. All that should be green space. So it's going to be a good time. It's going to be better, not worse. Things are going to get better, not worse. Don't let you think this going to be a terrible thing. Ok, let's talk about. Before we end today, let's talk about non negotiables. Things you have to not negotiate with. Okay? These are what I call my ten commandments. Okay? Number one, superior location. Do not compromise this location. Okay? The better. My wife went to one of our properties this weekend. Two days ago, to Los Olas walk. Oh my God. Gabrielle's incredible. Oh, she's the best. We got to find more Gabrielles. No, we don't, Elena. We need to find more locations like Los Olas. What is the location of Los Alas, because Gabrielle wants to work there. Okay? The great ones want to be in the great locations. So when you go further and further out from a great location, you can't get a great leasing agent. And the leasing agent is like Steph Curry. Okay? Number two, cash flow. Got to have cash flow. Now you got to figure out how to put number one and number two together because now that's complicated. Like how do I get a superior location and good cash flow? Number three.

Yeah, one little piece of this is that Grant never buys a deal that isn't cash flow positive the day he buys.

Never. I've never bought a deal that was not cash flow positive.

So he doesn't sometimes brokers or try to sell you on some speculative. Some speculative play with the property? Like everything he buys it cash flows the day he closes.

And look, I might. It doesn't mean I'm the right thing. I know people that do it. They build deals and they don't have cash flow for three years. I don't do that. I bought a deal in January. It was 85% occupied. It still paid us 4% that month. The month we closed at 85%, I wasn't even 100 or 95 or 92 below 90, and I was still cash flow positive. Let's see. Number four supports management. I need to support the management team. You cannot underpaid the management team and think the management team is going to over like pay attention to your deal.

And the property should be able to fund having a manager.

Yeah. Living on the property. Okay, number five, know your exits. If you only have one exit, that'd be like going to a movie theater and you got 500 people in there and one exit. Don't do that. Like you're in a dangerous environment. You got to have multiple exits and you got to know what your exits are. And you got to know, number five, who is your buyer on the exit. If you don't have a potential buyer. If you bought because it was cheap, what do you think the next guy's looking for that's going to attract cheap? Okay, you can't serve meat to a vegan. You can't get somebody to pay a premium that wants something cheap. So cheap products attract cheap buyers and bad locations attract bad buyers. Number six, refinanceable. It has to be refinanceable. Even if you don't want debt. You're like, I'm not doing debt. Everything's been paid for. I know, bro, but I know you're convinced that you. You need no debt, okay? You're the only one that doesn't have any. You live in a country with debt. You're using money to pay off debt. That is debt. Like, you're confused. All the money that's printed is debt. So why are you trying to get out of it? What you want is good debt. Okay, number seven, you got to. You have to. To exit, you have to be able to exit at a higher cap rate than you entered at. So if the rates go up, you need a higher cap rate to get out. And a higher cap rate means a lower price. Number eight, positive job growth. By the way, if you guys don't understand any of this terminology or if you're getting slightly confused, join our mentoring opportunity, okay? It's going to get you clarity and confidence. Because if you don't have confidence, you're not doing the deal. Number eight, positive job growth. Number nine, competitive advantage. What's your property? Competitive advantage. Number 10, can it make a million dollars of profit? If you can do that with one unit? Good luck. Have I ever done that? Yeah, I have, but I was lucky, okay? And I had to put a tremendous amount of money into one thing for it to make a million dollars. And I had to wait seven years to do it, which is fine, but I had to feed was a single family home. Okay. Okay. Do we have time for this today? Yeah, These and then. Then, yeah, we've got. Let me get through these. Right?

He's got a few more.

Yeah. Huh? Yeah, just these formulas. Good. Okay. This is the formula that the young lady asked me about. Robusha.

Robert Ra Rau.

No, that's wrong. You got it wrong. You got it wrong. Okay.

I wasn't looking at it.

This is called the increased valuable increased value formula. Page 20. Number of units times the rent increase times the occupancy times 12 months divided by the cap rate equals the increased value of the property. When am I going to figure this? Okay, you want to make a note here. This assumes the price you paid was a good, a fair deal. This is not assuming the value of the property. This is assuming the increased value of the property. If you could get it to do this. Okay, so watch. Let's say I want to make a million dollars on a deal. I'm going to back into this, okay? And let's say I found 32 units, and let's say I could increase the rents $200 and it was occupied 90% of the time. And I did that for 12 months. You're not buying a piece of real estate for one month. You're buying it for 12 months. That equals $69,120. I didn't collect it from everybody, just 90% of the people. And let's say the cap rate, the return on money invested, was 6%. You would divide by that number and that tells me I made $1,152,000. You'd want to calculate what you're Going to make. Now, why do I want to do this? Because I want to sit with my investors and say, Sherry and Jared, look, I'm buying these 32 units. I have it under contract. I don't have the money to buy the deal. But this is what I'd like to do. I'd like to suggest that. That I pay you 6% on your money, and then we split $1.1 million three ways. You get the first six and then we do a 1/3 split. I manage it, you guys put the money down. I manage it, collect the rents, take care of it, increase the rents. Oh, by the way, if I can't increase the rents, I don't get my 1/3. Okay, sounds fair to me. They don't want to do it. They're busy, they're working hard, they got families. Their lives are full of a bunch of problems and distractions. They're like, let's go for it. Okay, let's say we're going to inverse it. Now, you see, last time I had a one million dollar profit potential. I fill in my target first. I want to make a million dollars. You're getting started in real estate. Okay, you're going to multiply $1,000,000 times 06 divided by 12 months, divide by 32 units, or the number of units divide by the occupancy. And it's going to tell you what, you have to increase the rents. Why is this value, this formula, valuable? This is called an inverse value calculator. Okay, I'm going to take the million dollar target, I'm going to divide by the cap rate, divide by the months, divide by the units divided by the occupancy. And it tells me what I need to raise my rents. So I could literally. This tells me, hey, I found 32 units. Can I raise the rents? 173 bucks. And you're looking at it. You're like, the rents are already 1900. No, I cannot raise the rents. $173. Or let's say the rents are 1200 bucks and you're in Houston, Texas, and it's a 80s product in the Galleria. And you're like, the rents are 1250amonth. And you're like, the broker says, I can raise the rents. You can raise the rents. 173. Oh, that'll work perfect. But the truth is, you can raise the rents 173 in the Galleria on 80s product. Houston won't support it because the moment you go from 1200 to 1373, the guy's going to be like, no, no, bro, I want to be. I want to be in the Heights. So you're going to move him. You're going to literally move him out of the neighborhood. Okay. All right. This is called a million dollar cheat sheet. I showed you this earlier, actually. You want to fill it in? It's on page 23. Okay. Four units, you need $12.50 a month. Eight units, you need 625. 16, you need 313. 32, you need 157. 64, you need 79 and 122. Actually, this should be 128. You need $41. That should be 128 right there. You need 41 bucks a month. Okay, which one's easiest on the 120? Clearly, it is easier to raise the rents $41 than it is to raise the rents 1250. Now, the harder part is to find the 128. Okay, it says 122. It should say 128. You guys with me? Now? Check it out. It's going to be harder to find this one deal. One time. You got to raise those rents $41 every month. Then you got to replace people. Okay? So you got to pick your hard. Now make a note on this page. Pick your hard. All right, let's do this. And we're going to wrap. Okay.

More Q and A with Q and A.

We're going to wrap with Q and A. Jared, what's wrong with you, man? Dude, if you guys think Jared jumps in at the wrong time. If you guys think Jared jumps in at the wrong time. Put. Put. He's jumpy. Just put Jumpy Jared. Jumpy Jared. Yeah. We will call him Jumpy Jared. Yeah, Jumpy Jared. That's what. That's what happens. Hoppy. Call him Hoppy or come up with any. Any good nickname. Hoppy. I like Hoppy. Jumpy Jared. Jerk Off Jared. I saw that. Yeah, I saw that. Dude, that's jerking Jared. Okay. Okay. Froggy Bugs Bunny. You look like Bugs Bunny, dude. I kind of do, man. Jumpy McJumpster. Jittery Jared. These are getting better. Okay, rate your confidence. I gave you a bunch of information. How long we been here right now? I said I'd be here two hours. How long have I been here? Four hours. That's insane. Okay, rate your confidence in each of the following areas. By the way, I want you to rate against me. Assume I'm a 10 and I'm not. Listen to what I'm telling you. There's not one category here that I'm a tenant, maybe one, but I'm sub 10 on most everything. Okay, so rate yourself 10 like your grant card owner. Okay. I know where to find deals. Oops. I know where to find deals. Know how to underwrite a deal. Just quickly, just put a number in. I know how to get debt on a deal. I know how to raise equity. I know how to get debt under a deal, under contract. I know how to get a deal closed. I have a network of investors, legal and accounting professionals. I know my deal criteria and I know the must haves of real estate investing. Rate yourself. What number did you come up with? Total score. You guys give me your total score. Give me your total score right here. Okay? If you're 91 to 100, you're most certain, very confident you're doing deals. Okay? Just be honest with yourself. Did I rate myself my own rating? Sure. Did I do my own rating?

Yeah, go ahead and fill your score up. What's yours?

Nah, I don't need to do it. Don't matter. Yeah, okay, look guys, if you guys are 46, this is what's going to happen. I'm just telling you, okay? You're somewhat uncertain. If you're somewhat uncertain, you're not doing deals. Check it out by the way. If you're an honest person and you're going to go raise money for mom, dad, uncle, aunt, brother, sister, the community, and you are slightly uncertain. A 51. I'm sorry, 81. What is that? 81 to 90. If you're, if you're ethically morally honest, good person, and you are somewhat uncertain, you will not do a deal because you're not going to put other people at risk. So what you'll do is you'll do this. I'm somewhat uncertain. I don't trust myself completely. I'm not going to raise money. So guess what? You're going to do little tiny deals. If you are extremely, okay, confident, have extreme amounts of moral code, North Star integrity field would never ever screw anybody up and are 100% certain you're going to do monster deals, okay. And you're going to be doing your community a super favor. Anything in the grays. You will not do a deal. If you do a deal, you would do tiny deals that cannot possibly make real money. Every flipper I've ever met, every. Some of the people that we've worked with, the, the wholesalers, the flippers, the Airbnb guys, our buddy that does the assumption.

Oh, oh, sub two pace dude, all.

These guys want to do what I'm doing. Okay. You could see all them, all of them talk about doing one thing for a while and then they're like, man, I just want to own apartments for long periods of time because they inflate over long periods of time and they create wealth. And they've been doing this for hundreds of years, by the way. This is not going to change. Ain't nobody going to change that. All right. Okay, Jared, where we go?

You want to do some questions? Let's go to Tom.

Let's do some questions, Tom. Naniga Q A time, baby. To the Q A. Naninga.

No, I got it.

Hello. Yeah, flip to the Q A. I want to see the orange thing.

Tom, how are you?

Tom, how you doing? I'm doing great, I'm doing great. How about you? Good, buddy.

What's your question?

Good to see you, Tom.

Good to see you.

My, my question is, is I have.

A 15 year old who is very.

Interested in being a real estate investor. He's about halfway through the real estate mentoring class that I bought. And what would be your best advice for him? Dude, I would have him do what? I don't know if you guys can pull that video of my kids. My kids underwrite deals. Okay. Sabrina really is the underwriter. She underwrites deals. I sit down with her, I go over deals, I show her, here's a cap rate, here's what the units cost, this is what the rents are. I showed her the increased value calculator, the underwriter calculator. Like these are just get your kids used to doing this. Once they figure out they can do it and they can get the right answers. We homeschool our kids. So I get to teach them whatever I want to teach them and they're not going to teach them in school. The teacher doesn't even know what a cap rate is. So. So that's what I would do. Where are you calling in from? I'm calling in central Florida. Okay, and what do you own now? I've only been. I bought your mentoring program about in April and I've already got two deals as limited, an LP250 units and a 600, a 415 unit. And you. So May, June, July, August, four months. I, I found somebody in your telegram chat that's doing lots of deals. Everybody likes working with him and I just decided to jump in and dude, good for you. Deals. And they both closed. Good for you. Well done, brother. Well done. We should record that. Should record that. By the way, let's, let's the Telegram Chat. Can you tell everybody what the Telegram Chat is?

Yeah, it's a. It's a chat mechanism that we have. It's a community that we have for networking for real estate investors. That's a part of our mentoring program that people get access to. There's thousands of members in the group.

Yeah. What. And what is this? You guys just pulled up? Yeah, I'm. It's just a picture. No, no, it's not video. Ah, yeah. Okay. All right, let's go to the next question.

Let's go to Jody.

Thanks. Thank you.

Jody.

Yeah. Jody, how you doing?

Hey, Grant.

Jody. Jody's in our club, man. What's up, Jody? Hey, man, doing great. I appreciate you putting on the interactive. One of the questions that I consistently get with people is how do I compare multifamily deals versus, you know, those returns versus stock market versus single families? How do they figure out, hey, how is this a good deal in comparison? Yeah. So look. I mean, the average. The average return on the s and P500, it's what?

I mean, 8%, I think.

8%, maybe. By the way, that's before taxes. That makes it a 4 in my tax bracket. So if I sell it for an eight, I made an eight. That's a four. Okay, compared to what else? S and P 500, what else do you say? Single family. Oh, single family homes. That's nothing. I mean, the guy bought it. You made 3% a year times 30 years to make 90% on your money, but took 30 years less your property taxes, less your HOA fees, the maintenance, blah, blah, blah, blah, blah. I mean, this isn't even a consideration. It shouldn't even be considered an investment. Now, let's talk about the multifamily real estate. Okay, you're going to make 8% a year. 8% a year with the potential for me at five years. At five years, you earn 40%. By the way, none of that was taxed. None of that was taxed because I wrote it off when we bought it. So that's 40% net of taxes. By the way, you got hammered right here for the same 8%. You only earned four, so that's 40%. You didn't do any work. By the way, all this is passive income. And check it out. Then we refinance the deal. Can you refinance the s and P593? I'm sorry, 1493 of 500 companies, by the way, lost money, have no actual real earnings and are flat in the market. They keep recycling stocks in the S&P 500 to show you the good ones and get rid of the bad ones. They do this constantly. If you weren't invested in the seven magical, magnificent seven, your money was flat last year. You basically earned zero. We still earned 8%. Okay, now check it out. When I go to refinance the property, when and if I can, I'm going to return your capital. As you know, you're 100% out of the deal. And it's still cash flows. Now, my cash flow. Let's say we take a one million dollar deal. One million dollar deal. And we put. We raised $400,000. Let's say it was 10 units. We financed 600 grand. We raised the rents. A thousand bucks on 10 units? Yeah, 10 units. We raised the rents. A thousand bucks. I got a new hundred thousand dollars coming in that's going to allow me to raise. I owed 600. This was our. This was our borrowers. This is our investors. We had four investors at 4, 400. Let me see. I got a new hundred grand in 100 divided by. 085. 1,176,000. We're going to go get a new loan for $1.1 million. Okay. I'm going to get a new loan. I'm going to return part of your money and we still own the asset, so. And it's real, bruh. It's real. By the way. It's not going away. Okay? I have properties. That one property I showed you earlier, Jody, that was 1988. I bought it. It's still there. It's 40 years old. Been collecting rent. Kodak went out of business. Blockbuster went out of business. Pan America went out of business. American Airlines and United went bankrupt at least once. Ford Motor Company had to take money from freaking the federal government. My deal never. My deal never broke, not even through 2008. Boom. People just paid the rent. That's the story you guys all need to learn how to tell. Okay, Jody, what have you accomplished? Because I've seen you before in our clubs and in our mentoring. You show up every week. What have you accomplished this year and last year? Yeah. In just under two years with your mentorship and club, I am now a limited partner and investor in 531 units and a general partner on 600 units. And that puts me a little over 1100 units total. And we have. We're best in final 260 units here in Houston. Dude, that's fantastic, man. That's fantastic. How much of that? What were you doing before this? Were you doing? Did you have a job or just a regular job and now you're doing this full time or what? I still have a job. I'm still a full time W2 job, but I'm a computer consultant and that's what I'm still doing. I had no real estate experience before I got started. That's fantastic, man.

Awesome. Jody, thanks for being here, bud.

You bet. Thanks.

All right, let's go to Joanna Wright. Joanna Wright. Hey, Joanna. What's your question?

By the way, that math I did for him was wrong. Okay? I did the wrong math here. This deal would be basically. This deal would be worth. If I could do this, if I could have achieved the 10 units at a thousand dollars a month. Very difficult to do. I said it. But let's say we found a freak deal. This deal would be worth $3 million. Now, we will return the 400 grand to our investors.