Grant Cardone: Multi-Family Investing for Everyone!

Foreign.

Everybody to this week's episode of the Main street business podcast. My name is Mark Kohler, AKA John Dutton. Just shout out for Yellowstone. I'm wearing my hat. We'll probably joke about that a little bit today, but got Matt and Phoenix enjoying that beautiful weather. And we're here talking small business and real estate today, multifamily. How's the Phoenix weather?

It's pretty great. I mean, this is the sweet spot. This is the great time of year. But if you're going to be John Dutton, I want to be someone cool, too. I mean, who's the second coolest in that show? Rip's pretty cool.

Rip is cool.

Rip's pretty tough. Rip could probably beat up John Dutton.

Yeah. I mean, if you, you know, the female version, his daughter Beth. I mean, she's scary.

She's just scary.

Just kicks butt. Yeah. Yeah. I don't know. You're kind of Casey. You know, you're careful, you're calculated.

Casey's cool. That's cool. All right, I gotta get my Casey hat. Yeah.

Well, I got you one.

I know. I just don't wear it to work,

you know, you're in Phoenix, people you don't know. Arizona is pretty country. I mean, I know I'm gonna.

I just got a cowboy up and just, you know, just put it on.

Yeah.

Well, everybody, enough messing around here. Thank you for being with us. If you're a new listene, we're both tax lawyers. We really love small business. We're entrepreneurs and we're real estate investors.

Which brings us to Grant Cardone. Mark, John Dutton over here is going to intro Grant. For those of you watching on YouTube, Mark's wearing his cowboy hat. He's harnessing his inner John Dutton for today.

If you saw last week I had my inner Tom Selleck because I was at a poolside in Honolulu, but when in Rome, you know, so I'm here in Utah. Gotta look the part. It's that time of year. So anyway, but here on the screen, no further ado. We are so lucky to have Grant Cardone with us. Author, I think of seven plus books or no, CEO of seven different companies, multiple books. Helping people around the country invest in real estate when they may have never known how or could afford to do so. His multifamily expertise is second to none. He's also a pilot. Flies a freaking jet. This guy's.

I don't know. No, no, I'm not the pilot.

Dude. You've been replying right seat. I thought you.

I hire pilots. I don't I don't. You know, I go sit up there when I want to, but. But I don't fly the thing.

Pilot's license. And we were flying in planes together for a very short period of time. Bad idea.

I mean, I'm in those planes. You know, Grant goes flying by, you know, so, you know, kind of top gun, you know, he does this little flyby. But anyway, Grant, thanks for being with us. We want to hear about your projects, what you're doing. We love his financial literacy and his message, his kids involved in his business. So, Grant, welcome.

Yeah, thank you. Thank you for having me. Appreciate it. Appreciate everything you guys are doing. And, man, I love the hat. That's a good look for you.

Yeah.

I said I had a sweet John Dutton quote.

You were trying to pull a cowboy line.

Okay, here's a funny quote.

You didn't have the right cowboy line. Right? I didn't.

I didn't. Casey, when he goes, I hope you have a good day, dad. He's like, I'm all out of good days.

There you go.

That's a good one.

That was. You know, I don't have bad days anymore because I got so much money invested in real estate now. Like, I know as many clients as you guys have across the accounting, the legal, and the. In the trust company. Like, if you look at the personalities of the real estate investor, those are the least stressed business people that I have ever met in my life. Watch when they come in your office, dude. They're cool. They're calm. Like, they got time on their side. Like, I made this. I discovered this about four or five years ago. I'm like, man, because I've meet so many different people in business. Like, I was with Usher and Dave Chappelle the other night, the same day I was with all these entrepreneurs. And I mean, frankly, they're all stressed out. Like, Usher's running all across the country. Chappelle's being attacked online because of his Netflix show. The entrepreneurs are worried about cash flows and business ideas and technology and disruptions and should I go crypto? And then there's the real estate guy. He's like, yeah, y' all funny, man. Like, they're just like. Because the payout is a longer period of time, they're being paid while they sit there and wait, they get all the tax advantages. And you can see it just calms them. Watch these guys when they walk in your office, tell me they're not least less stressed than the average business person.

Yeah, you're totally right. Especially the Buy and hold real estate investor. You got cash flow.

Yeah.

Appreciate.

Not like Dutton. Not like Dutton, man. Dutton. He's stressed out, dude, because he's trying to take a shit from it.

That's right. I got to protect my ranch.

Yeah.

You know what? On this point, though, Grant, I want to get this to this point right out of the gate, because I thought. This is really what I wanted to ask you. There is such a craze with the crypto and all that stuff that is taking people change, you know, they're just taking all day and night. They're the stress level and all that.

Yeah.

But I love the point you made recently on 6 Reasons why we're not. We're real estate. We're not at the. It's not a seller's market only. There's opportunity. It's not the top note. Can you share kind of why you're like, guys, you're missing the boat. Don't go. Go. Don't tell. Real estate still a powerful investment.

Well, I'm hearing a lot. A lot of people are concerned, hey, it's overpriced right now that it's. That there's going to be a crash. You know, the problem with that argument is people just are not looking at the facts, okay? You're just looking at the prices of real estate. There's six major reasons why that cannot happen. Okay?

Number one, write these down, baby. Okay?

I know you're a writer, so number one, interest rates, number one.

But.

And by the way, when we talk about real estate, as you guys know, there's a lot of different kinds of real estate. So Covid. Covid, like, literally tore the damn cover off of everything. And so what happened is interest rates are all time lows, okay? So there's no way. And I'm not talking about your loans because the most. Most people think, okay, because interest rates are low, people gonna buy houses. Actually, people are not buying houses right now. Wealthy people are buying houses and investors are buying houses. So the second and third homes are at like the highest rates in the history of the planet. These are super wealthy people that live in New York, okay? I'm gonna go buy something in Palm Beach. I'm gonna buy another house in Malibu. I'm gonna pay cash for both of them, okay? So there's no way that there's a bubble in that, because these are fucking rich. These are rich people. You don't bubble them out because there's no debt on the deals. This is not 2008 when people were buying homes. Now with, with 100% mortgages. Now, the second level of home buying is being done by investors, not by end users. This is also at the highest rate in the history of this country. This has never happened before in this country before. Single family homes are being purchased by investors. I think there's like three to four times four out of ten purchases are buying investor base that did not exist before COVID There's only two years. Okay. So interest rates are making that possible. Okay. Because when, when you're buying a house, let's say you're looking at a house in Utah and you're like, okay, I can pay 400 grand for this. The investor walks in and there's 18 of you, by the way, that are willing to do this because it's in Provo.

No, not Pro bowl, not Provo, please.

No, you're right, you're right. They're freaking out. Orem.

It's in Orem. It's in Salt.

No, I mean, yeah, that Happy Valley, dude. You got it.

So there's so. So they're like there's 18 people lined up and everybody's bidding on it. And one guy comes in at the end and says, I'll pay another 40 grand for it. I'll overpay by 40,000. I'll write you a check. He's always an investor. Always. He does not care what it appraises for. He's going to put 50% down. It's still going to make him 8 or 9% a year and he's happy. See, his use of that house is different than the end user. Okay? So number one, rates are making it possible for investors. Number two, we got supply issues. We had 15. This is, this is not a new problem. It's a 15 year problem. We have been under supplied for single family homes in this country where people live for 15 years. And it's getting worse here in the state of Florida, dude, it is like it's impossible to find a house to live in here. So now you have a shortage and you have interest rate pushing investors. Okay? Three, you got international buyers that have been out of the marketplace for two years. There's been zero activity by the Europeans, Russians, South Americans and Mexicans and from Singapore for the last since COVID hit.

Okay, now before. And now before you continue on your six, let's do a little teaser here right now because there's some other bigger questions. I just wanted to hear your take on why real estate is still kick ass. And we totally agree. Matt and I are buying real estate continually and other investments. You want to be diversified. But where can people go to read or hear your most recent podcast on these six reasons? Let's leave them hanging on those other three.

Oh, wow, that's cool.

Where can they go?

Yeah, I'm actually dropping a video on this today. But I mean, you know, even if you know the six, you need to know the meat. The meat underneath the six. Right, like why, like.

All right. Yeah.

You know, foreign investors are coming in

like a storm, number three.

Well, they got to come. They're going to come. Because look, if you guys think America's got problems, just go visit any other country, right? Yeah, like whatever problems.

You think I'll take the problems here.

Yeah, exactly. All you got to do is go visit. You can be like, oh, my God, man. So still, this is still a good deal even with all our flaws and defects.

Right?

So yield. Yield is a problem, okay. And a reason why people are going to continue to buy apartment buildings. There's no place to get yield. The big companies, these are trillion dollar companies that have more cash than they have people. Their biggest problem is money, okay? They have to put money to work. They cannot invest in hotels right now because of the Omnicron Delta variant. Whatever the next variant is, they cannot invest in hotels, they cannot invest in strip centers and retail centers. So that money has to move into the apartment market. Also, the bonds, the treasury bills, these are backed by cash flow producing real estate, as are insurance companies. So what, what real estate, what. What particular asset class provides dependable cash flow? Right there, it's apartments. And so New York Life, MetLife, Allstate, State Farm, just go down the list, man. All the, the healthcare insurers, the car companies that provide insurance, they're all backed by some dependable asset class that can provide a cash flow to the investors. The pension funds are all backed by apartment deals.

Yep, yep, you're right.

So those groups are looking for asset classes. Like the bigger the deal is right now, the more of a premium it gets. Yeah, like these big deals, they can't find enough money. There's literally. You can't. Like this deal behind me is 230 million.

The.

It was 10 bidders on the deal at a quarter of a billion dollars and little old me. Got it. Okay, number five. I think I'm on number five. Migration patterns. Migration patterns are severe. California, New York, New Jersey, everybody's heard about it. You got massive migration. We have more people moving into the state of Florida right now than from the state of California than ever in the history of the state. People have never traveled that far. You're seeing in Arizona.

O.J. did it. Yeah, OJJ did it. Yeah, O.J. did it. He was like, you know what? I'm getting out of here, I'm going on trial. And O.J. simpson sent the trend. He's a trendsetter. That's really what he thought.

I'm just joking.

All right, Okay.

I love.

And then the last thing is inflation. Right? I mean, inflation's here. It's been happening, by the way. Inflation is not a new thing. It's been happening now. Now it's just happening to you at the store and at the gas pump and in your housing. Okay. But the reality is inflation first started about 10 years ago when the banks took their rates from five to four, to three, to two, to one to a half to an eighth. Checking accounts that are getting 1/8 of 1%, 1/8 of 1%. It takes you eight years. Today I was telling Kiyosaki this the other day, he's talking about keeping cash. I'm like, that's stupid, man. Why would you want to keep cash? Like Robert, you can't say cash is trash, it's a fiat. And then say you need to keep some. Like, if it's trash, you don't keep your trash, you get rid of it. And so people are trying to convert garbage, fiat money that can't earn interest. It takes eight years to earn 1% at the bank. Eight years. And it takes 10 years to earn 1 1/2% in a Treasury bill.

Yeah.

So that money needs to go someplace. And these apartment deals, that's why there can be no. We haven't even gotten close to the appreciation. Last one. I'll give you a bonus round here. Look at the amount of money that has been printed compared to the escalation of pricing. The pricing's up like maybe 20%. The production of money was 40%. 40%. This is worldwide, not just the U.S. so we would have a long way to go. You got all this way to go just to catch up with the amount of money that's been printed.

So I want to in the more before your question. Matt, the moral of the story. Real estate's not in a bubble. It's growing. It's going to continue to grow. It's a quality cash flow, Good tax write offs and continue to appreciate.

Always has, always, always has, always history.

Because this kind of real estate doesn't appreciate like a house does. It appreciates because the rents do.

For those on the podcast, there's this gorgeous building in a. On a screen right behind Grant. And we're going to talk more about it, and CardoneCapital.com is where you're going to want to go. I'll just say it now and to get a look at this building, and we'll hear more about it. Matt, go ahead. You wanted to ask Grant something?

Yeah, I think. I think you're. I mean, multifamily, it seems, with all the dynamics going on in real estate. Like, do you want to be an office right now? No, I mean, multifamily seems like a great place to be. But why are you doing this? You know, your fund that you have right now, that's kind of like for everyone, you know? I mean, you could go raise money from a bunch of rich people, accredited people. Only you could go raise from all these hedge funds. They know your track record. Why are you. Why are you opening this up to everyone? Like, why?

Well, first of all, hedge funds are the devil,

but they want returns on their money. I mean, you know, just.

Yeah, I got two funds right now that would give me that deal that I'm. That you guys mentioned is 230 million doll million. I bought the deal. I have the cash to put down in it. I haven't closed the deal, but I had under contract. We closed on in, like, eight days. I've had two hedge funds come to me and say, hey, we'll fund. We'll fund it and keep you as a partner. I'm like, no, I don't think so. Well, why would you keep 70 million in a deal? I said, I'm not. I'm going to go offer it to my public that follows me online. Well, what are they going to give you? How you need 70 people to give you a million dollars each? I'm like, well, I could do that, too, but I'm not going to do that. I'm going to get 7,000 people to give me $10,000 each, and then 7,000 people marginalized, left out of the game. Investors, mom and dad, single mothers, hardworking entrepreneurs. People that follow me, love me, support me, come to my events, my seminars. I'm going to make them investors rather than customers. I'm going to have tenants. By the way, as soon as we close, we have 456 tenants there. The rents are 2,600 bucks. We're going to offer our tenants to become investors in that building. The rent's 2,600.

The rent's 26.

Yeah.

Has that been done before for a thousand? No, never been Done before. So for $1,000, the same guy renting for me at 2,600 bucks can throw in another thousand and become an investor in that building. And it'll probably extend the amount of time he spends there, because now he's an investor, not just a renter.

Oh, my gosh, I love that. Well, Grant, you know the podcast we're doing today, Main street business tax lawyers like Matt and I. Thousand bucks an hour. You got to be a Fortune 1000 to talk to someone with our credentials. We say, screw that. And you followers know we love the small business owner, the real estate investor, the mom and pop, and we are so grateful to you and many of you may not know, to build a securitized fund, meaning authorized by the federal government, the state securities law that allows a little guy to invest a deal in a deal like Grant's doing, very unheard of, very hard to do, because they all listen to fricking Wall Street. Screw them. I love what you're doing, Grant.

Yeah. Wall street has their rules of, no, no, no, you can't invest unless you're accredited. You got a million bucks already. And. And if. If you want to be someone like Grant, that's going to say, no, I'm going to let everyone in. He's had to jump through a ton of hoops and cost to be able to do this, so.

Took nine months. Nine months to get it approved. The SEC has looked through every. Every account that I've had. I mean, I'll tell you how severe it is, because I don't think anybody really ever shares. Kind of the. Took nine months. $350,000, and 40 people. 40 people for nine months have been involved in this project. I was told repeatedly, this is not worth it. Don't do it. I'm like, no, we're going to do it. I'm going to do it. It's going to be one of the smartest business moves I ever made in my entire career, because when I start sending people checks every quarter, they're going to start praying for me. Keep him healthy, man. Keep him healthy. You know, so the. Lastly. Look, it's just the right thing to do. It's the right thing. This is what I needed. I needed a good investment.

Yeah.

And this is why so many people end up with their IRAs and their KEOs and their 401ks locked up in some piece of paper, and they don't even know what they're invested in. Many of them have ignored it for so long, it's just sitting in A money market, and it's not earning any money anyway.

They couldn't even tell you the name of the mutual fund. I mean, I talk to clients all the time about what's your IRA invested into? They're like a mutual fund. What's it called? I don't know.

You don't know?

You've got a couple hundred thousand dollars you spent 20, 30 years building. You know what it's in.

So spoiler alert.

Yeah, IRAs can invest in this, right?

Yeah, spoiler alert. If any of you want in on a project like this, and this is not an infomercial you got, you let regular listeners know that if you're a follower, Grant, you're like checking out who this Mark and Matt guys are. We got 500 plus podcasts out there, but we're. You get over to cardonecapital.com. i'm just looking. I was scrolling through 13 different projects and this is where Grant should drop a pen and just say, you're welcome.

Really? No, I'm, I'm doing, like, I can't just tell people, like, I'm doing you. I'm doing people a favor, literally, because, like, I can get the funding from a big, wealthy company. The reason I would rather deal with Mark and Matt as investors is because you're going to be more pleasant and more appreciative. Okay? These wealthy companies, these are trillion dollar companies. I don't think people understand. We talk about wealthy people. They always talk about Elon and Jeff and Warren. That's not the kind of wealth I'm talking about. This is the wealth group at the top of the food chain that make Jeff possible. Okay? Elon Musk cannot operate without these trillion dollars. These are multi. $10 trillion companies that run the world. There's only a handful of them that run entire planet Earth. And when they give you money, man, you are literally doing business. You're signing part of your solo deal with the devil. Yeah. So when Covid hit, it was interesting because we bought a lot of real estate during COVID and I have a buddy of mine that owns about. He owns about as many apartments as we do. 12,000 apartments. And he's like, bro, how'd you get through Covid? And I'm like, it was easy. And he's like, man, it was freaking. It drove me crazy because every day we had an institution in here, you know, giving us a colonic. And I'm like, he's like, how do you. How do you deal with that, man? I'm like, bro, I don't have institutions coming to my office. I got people that love me.

Yeah.

I got people that trust me. I got people that I've been sending checks to for, you know, for years like these are people that are, appreciate the opportunity to be in this deal. They're running their own company. They don't have time to come to my office and ask me questions. So that's the problem with the big institutions and the funds they're run by, they're run by guys that are disconnected and then, and then they send their 25 year old little analyst out that's insecure and worried about losing his job to do a bunch of probing.

Yeah. Now they got to justify their job too.

Yeah, exactly.

Come back with some recommendations and tell you things you need to do. Otherwise, you know, why is it they

didn't do the job?

Now we need. I think this is an important point to say this too. Any of you out there, you might be trying to do your one off deal. Buy yourself one of our, your first best investments is buying your own building or buying something you're already renting yourself if you can. And we've always encouraged that. But then you come to a point of, well, where am I going to deploy money in real estate? And Matt and I've held whole shows on this, so I'm going to say it now too. You do your due diligence, you learn everything about the person behind the project, who that company is. You get on an effing plane and stay at a Holiday Inn and you walk it, you look at it and you, and you get to know what's going on and what Grant's done with the SEC filings. He's opened his kimono, he's like, okay, here's the deal. Do your due diligence. So I don't want anyone to feel like, hey, this is like Grant's making promises. It's not, we're not making promises. Do your due diligence. But when you want to go out and find a project that pays regularly, that's good quality real estate and an investment multifamily is one of those places you're going to want to look. And I, anyway, so I just want to say that Grant's not here making promises, but his projects are so amazing. And just what you're teaching is what we love. I mean, heck, we've known each other here.

So anyway, well, these, these. Look, I'm, I run a bunch of businesses here. So I mean we make a lot of money at those businesses, but they require a Lot of work. Finding the right piece of real estate, it requires. It requires a lot of work. You got to have relationships. You got to know the right people. You got to get a loan. You got to get it appraised. You got to. You like we had. We got to do due diligence on 456 units. Then when I open a fund up, the SEC is not doing due diligence on that building. They're doing due diligence on me, my operations, where my money's at. Like, I bought a house maybe, I don't know, eight, nine weeks ago. Has nothing to do with this project. The SEC, five days later writes me and says, hey, we need, we need. We want to subpoena all your accounts.

Oh, my God.

I'm like, oh, yeah, we've got you guys all jacked up this morning. Well, we saw, we saw it. Reported it in the Real Deal on Instagram that you bought a house, Tommy Hilfiger's house. I'm like, why don't we just make you guys an administrator on my accounts? And you could see everything I'm doing every day because I have nothing to hide. But the point of that is this. When you get to that level, the investor actually has more protection.

Yeah.

Okay. Because now, you know there's another group coming in here. We're sitting on $4 billion worth of real estate today.

Yeah.

They don't just know about this project. They know about every project I've ever done and every claim I've ever made. So there is protection in doing that.

I want to ask just about. We can get off this deal topic for a second. I just want to ask, like, a tip for listeners, because we have a lot of small business owners, I think a lot of people that look up to you, read your books. What's something new and important you think the small business owner, entrepreneur, real estate investor out there. Any words of wisdom you could give them today or a tip for today.

What's on your mind today? Yeah, like if you had that moment, you're at Starbucks, you got 10 minutes with that new small business owner. What would you say?

I would say quit being small. You know, small doesn't work. Everything gets better when it gets big.

Yeah.

And, you know, I've had a client

tell me what he's talking about, the size of his deals. He's like, this deal takes the same amount of work as the 1 million deals, the 10 million deal.

Dude, look, look, look. For one deal, I would tell people this today. Look, I would personally, if I Could change my whole career again. I would put all my career emphasis on real estate. I wouldn't be doing these events, writing books, consulting, having co. I get paid a hundred grand to sit down in front of a guy and listen to him for an hour. It's freaking ridiculous. I'm like, what am I even doing here? I don't even want to do it right. So. But, but, but I only have so much time, okay? Like, if I did my whole career over again, I would do only real estate and I would only look for deals. I would only invest in deals where my life could be changed because of that deal. I would look for big deals. I would rather have 10% of one big giant monster trophy than have 10 deals. I don't want to own 100% of one marginal deal. People are buying deals that just become problems for them. It just becomes another job. And so I would become an investor. Before I became a student, like when bitcoin came out and I started hearing about it, I couldn't understand it. So I say the only way to understand something is to do something.

Yeah. Yeah.

So I went, bought. I went and bought a btc. I said, okay. I can't even listen to it because I don't know what you guys are talking about. I'm about to do the same thing with an NFT because I can't understand it until I do it.

Yeah.

So I would tell people the first thing to do is not learn about real estate. First thing to do is take a thousand bucks, ten thousand bucks, fifty grand, whatever you got sitting around and become a partner in a deal. Do exactly what Mark Mark said. Don't worry about the property. Worry about the guy or the gal first. Trust. Trust them.

Right.

I put $70 million of my own money in that deal. That's like 90% of the investors due diligence right there. Like, I'm buying it whether people come in or not. The loan for 160 million on the transaction, I'm signing it. My investors aren't. I'm on the hook for the 160. So that's the other like 9%. Now I'm at 99% as investor. Now I just need to know the location. Hey, what kind of cash flow? How long are we going to own it? But you should really know more about the person. And then two about the deal now on the person.

Great comments. Thank you, Grant. That's great tip. If you're in a Starbucks line. There you go. That's.

Go big man. Go big. Go big.

Go Big go big or no talking about what's the size? I never know. The Starbucks. Whatever, whatever.

It's a Venti. It's a Venti.

Go Venti.

I'm just like, I want that size.

What are we talking about? Coffee?

Yeah. Yeah. Okay. Talking about the person. One thing I loved following you on, to be honest, sometimes even more than these real estate deals is Matt and I have been teaching for years. It's an important time of year to have those board of director meetings with your kids. Make sure your kids are involved in your business. You're paying them, they're, they're learning about the business. You're doing some tax planning, getting your money into your kids tax bracket because they're going to work for you anyway. You're going to help them anyway. Tell us about your, some of your posts. You're.

She's out there.

You put her out there. Your oldest daughter, Sabrina. Tell us what you're doing with her and your kids. I just love it.

So we just, I just delivered them work contracts. We renewed their work contracts. My kids did not get an allowance. I do not give my kids an allowance. My kids work for everything they get. They've only been on one commercial flight their entire life and, but they earn everything, including a seat on the plane. So like, you know what you're saying, Mark, is like, why would I, why would I be taxed on 60,000 at 50% when I could pay my kids 60,000? They're going to be taxed at 19. So I'm gonna, I'm gonna give them money anyway. I mean between all of us. So we put them on a contract for X dollars. I start them at 30,000, I pay them one time and then I lay out the contract with them as I would any employee. Can't compete against me. Can't, can't say bad things about me. Arbitration, like have an arbitration clause in there. If we end up in a dispute and then we come up with something fun to do like we have a. Whoever can eat the most donuts wins the dispute. You pay 30 grand. The money must be invested into one of our real estate transactions. I do not give them 30,000 at one time because I don't want a kid in 10 years old to manage 30 grand. It's not, it's not, it's not a fair responsibility any more than I would keep my gun around him.

Yeah.

And so we put the 30,000 in the real estate deal or the 60,000, whatever the number is, and if it pays 5%, they can spin they get that distribution every month that they can spend. They can spend it in total. It's theirs to do whatever they want with. So if they're earning 60 bucks or 100 bucks a month, that's what they got to figure out, how to manage and spend. And they can blow it all in one day or, you know, use it over a month.

I know, Grant. We could talk about financial literacy for our kids. I've called my. Mine is called the Kohler Independence Plan. They've all had to sign the contract and Cardone Independence Plan. This is the deal. But what I love is Grant's being a little cagey. It's true. But Matt and I do it with our kids, too. When we're paying them, we're funding their IRAs too. And they're in these projects with their own IRAs and themselves. And it's just there's so much opportunity to involve your kids financially. But one touchy feely question. You and your daughter together, how is it as a family? I mean, just the experience.

Well, let me just say this also, like, there's other things that goes on, so. So, like when my kids are on a contract, they're learning about contracts now, okay. Oh, what's an arbitration clause? What is competition? Why would I steal an employee? They're starting to learn at a very young age the game. So it gives me quality time to spend time with kids, to bring them up. Rather than me becoming a kid, I'm bringing them up a notch and still get to be kid, like with them as well. Like with the donut arbitration. Right? So. So also I'm teaching them negotiation skills because, hey, guys, if there's anything in here you don't like or you don't want, you know, let me know and we can change some of this. Now, I just bought a brand new plane, okay? For me to make that plane a legitimate tax expense, a tax write off. And so that when I get audited by the IRS and they will audit me, just when they're going to audit me, when you're talking about a $60 million and I write it off all in one year

bonus depreciation, baby.

Well, they're coming. They're going to come and say, wait a minute, man, half the time, half the time you took that depreciation, but half the time you had family with you, I'm like, yep, contract, she works for me. Contract, she works for me. Now when we go to Las Vegas and do an event, they're actually meeting people, talking to people, signing autographs, working On a book. We're doing 10x kids right now. We took Grant Cardone University, turned it into 10x kids university. We're going to roll that out this year. So it does Mark give us. It gives. It's not just a tax scheme. It gives us the opportunity to build and bond together and teach and learn from one another and creates quality time that the parent and the kid wouldn't normally have together.

Yeah. And I think for. That's awesome. I love that. I think even if you're struggling for an idea on how to get your kids involved, I mean, take them to go work on your rental property is an easy one. I used to have my kids do a garage sale and it totally changed my perspective and my relationship with my older daughter who was like, I'm like, hey, you gotta have a marketing plan. She figured out how to market it. Kay. She wanted friends to come work there. Like, some of them she paid. Some of them worked for free. Some of them got a cut of what they sold. I was like, he's like 10, negotiating these things, you know? And then I didn't sell anything. I, like had to disappear and just learn how to sell and everything. And I think those experiences are really important in teaching kids, like, how to work, how to problem solve, how to make money.

And I think, you know, I think we forget that. I think we forget, like. But I remember my dad, you know, before he died, we were picking up sticks in the backyard. I'll never, ever forget that moment of picking up sticks and pecans and leaves and putting them in a bag and how good he was at it. And I was 9 years old and I was so not coordinated. And he was moving so fast, right. This activity that meant nothing to him. He was setting an example of possibility for me. And so I think we forget when we grow up that the kids to actually never forget those moments.

It's funny you say, I'm going to share a personal note. My mom, I don't want to get emotional. It was her birthday this last week and she's having a hard time seeing. I did a video, I did an audio gift And I told 10 experiences

that I remember with her.

And what's funny was about half of them, she was like, that's what you remember? And I go, yeah, I learned this, right? She was like, oh, and parents out there, your business, your investments are an incubator to teach your kids about life. Yeah, save taxes, too.

Love it.

But get them involved. I'd like to have Sabrina on stage. I had a client of mine. Go. You're talking to Grant. You got to tell them how awesome it was. Sabrina was on stage and shut the place down. A 10 year old.

So that's part of their contract, by the way, to speak four times a year at our events. They have to write their own presentation, deliver it, practice it. And it's been a phenomenal, phenomenal thing for them. I mean Sabrina, both of them, both of them had done phenomenal presentations to the audience. Not, not just because I'm a parent, love their presentation, but the audience loved it. Yeah, because. So anyway, like one of them, I think we shared put that on TikTok. She's got like 6 million views on that. I've never gotten 6 million views on her video. I love it. Now they're starting to steal the show,

you know, and that's okay. That's cool. Yep. Okay. I even had Matt's daughter in a Phoenix workshop get up and speak at my event. And I'll never forget it. And she talks about it too. It's just so good. So Grant, hats off right there, little cowboy. That's a little John Dutton. You know, just thank you for what you're doing for investors and being an example of a good father. And I know Alina's right there side by side with you. You speak, your marriage is amazing and she's amazing. Well, I know we've taken more time than we've asked of you, so I'm just going to. Matt, you get one last question too. But I'm going to throw this out at Grant. Bring in full circle. You call this reggae project. There's gosh, 15 on your website to look at. Everybody can look at different things that might be a good fit for them. But where's the reggae project? And tell us a little bit more about it.

Okay.

Not reggae like, like Bob Marley. Regulation A. Yeah, so.

So it's open for accredited and non accredited. By the way, the two fund, they ride horizontal to one another parallel. And a person that's accredited can invest 100 grand minimum. Person is non accredited. Again, this has never been done before in this quality asset ever. Not in the history of the United States of America has a $230 million deal been offered. Like you could be a million dollar earner and still never see this deal. So the fact that a family can invest $1,000 or 5,000, our average person's putting in about $7,500, a lot of his retirement money and 401k money that we do, if you're self directed, can Move over. I think you guys have facilitated some of those.

Oh, yeah.

And the property's located in Fort Lauderdale, Florida. Las Olas Walk Apartments. It's Main and Main and Fort Lauderdale. The hottest part of probably, definitely Miami. Fort Lauderdale. Hottest market, AAA location, AAA amenities. 456 units, 99% occupied. 92 walk score. Cash flow positive. Day one, phenomenal asset, $230 million. When I sell this, I think I sell this for a half a billion dollars. I think the whole time. The first whole time will be. Huh.

That was half a billion.

Half a billion. We're at $4 billion worth of assets right now.

Yeah, we had just had. That was from the show. Billions. You know, we had to go with a billion.

That's billions. Billion. Four billion. 12,000 apartments that we own. It's all apartment stock. And the 15 previous funds that you referred to, you can't invest in those. Those are all closed out. Oh, like, they're gone. Okay. You can't. Can't get in them. And what else can I tell you about this deal? It's freaking. If it's 99% occupied, what do you know about it?

Yeah, well, you know, rent, I mean, rents just keep going up over time.

That's right.

And we call it. And let me clarify the reggae comment for us lawyers out there. That's Regulation A. It's a securities term to reflect a very unique investment opportunity where the super rich and the Main street investor can both participate. And it's fully full disclosure of all the financials and the. Of all the things you want to look at when you do due diligence. It's all there to see. So get over to Cardone Capital.

Cardonecapital.com.

i was trying to spell it and say it at the same time. So it's cardonecapital.com for those that don't know. That's C A R D O N E capital dot com. Check it out.

I'll just say this like, this is the single best asset I've ever purchased in my entire life.

Feeling good on this one. I like it.

Yeah. No, I mean, it's just ridiculous. If it's 99% occupied, that means the rents can go up. If the rents go up just $300 over the next five years, I think what happens is we refinance the property at five years, return everybody's money, and we still own it. That's the ultimate goal, is not to sell. Rich people sell stuff. Wealthy people never sell anything.

Yeah, yeah. And for those out there that are Clients of ours, if you've got IRA money, SEP 400, 1K, HSAs, any of those accounts, get out and look around. This is an opportunity to look at. No promises. You do your work. Love it. Oh, Grant, were you say something?

No, I was waving to a guy just walking.

I thought you were like, hey, I

got something to say.

Damn it.

No, no, stop talking, Kohler.

I know you know why John Dutton, you know why John Dutton in Yellowstone had so much stress, right?

His daughter.

No cash flow. No cash flow.

No cash flow.

That's true. That's right. Season four had to open up. Well, I don't want to spoil. Okay.

I'm not through it. That's not really cash flow. That's not really cash flow. That's active income.

Yeah.

Oh, okay, fair enough. Good point.

Okay. Passive income. A lot of people confuse this whole passive income thing. Like network marketers think they're getting passive income or dentist. I'm like, that's not passive income, dude. If you trade, if you trade one second. So many E Commerce people think so many authors. Oh, that's passive income. No, you wrote a book, you promoted a book. You got paid for. The book is earned income. It's not passive income. Passive income is I make an investment and the investment pays me money without me trading time.

Oh, I love it.

All right.

And by the way, guys, how is this, how is this taxed? How is this income taxed to the, to the investor? Passive income at so like 19 or at 39, it's going to be.

You're getting the best deal there. Well, probably. I mean you're probably like, you might get a K1 on this. Let's say you individually invested, right. You're getting your K1. Every investor gets that. And even though they cash flowed it may have a loss on it. Yeah, even though you cash flowed it, you got.

And whatever your ordinary rate is, people, that's the. Because whatever bracket you're in, you're going to get passive income not subject to self employment tax. And if you live in the state of Florida, no state tax. And. And that's going to pass through and that's after all the freaking awesome depreciation and other things. And if you have other investments that have other losses, they're going to net with that. Oh, you don't get me started. Yeah, the tax freaking awesome.

And they're going to keep closing down all these other, you know, Biden, Biden talked about trying to get rid of some of this stuff and he was shut down hard.

Yep. He was yeah.

So he just jumped back on his little Covid horse. That's right, yes.

Okay, Matt golden question. This is your channel, Matt.

Grant Cardone right here.

Okay.

Because I know you're excited about stuff in the real estate world, but what are you worried about right now? What do you, what do you have any concerns in the, like, God, man, what are you looking out for?

Yeah, I am the most negative per. Like, I am such a skeptic and negative. I'm not a positive person. People think I'm a motivational guy. I'm like, not at all positive. You know, I keep waiting for what's going to happen, and then I start thinking about, okay, stock market rolls, 9,000 points. It's coming. It's going to happen. It's going to be big, too. It's going to be probably the biggest rollover we've ever seen, because nobody can make sense of some of these numbers where historical highs that would actually be good for this asset class crypto. I'm really worried about crypto rolling over. I think that there's going to be a manipulation of the crypto market. I hear more and more people because I have such an ear to that audience online. My audience is so big. And I'm hearing more and more guys use their crypto on margin to fund projects. And these people, these are the most fanatical people. They make ISIS look like none. Crypto people are the most fanatical people I've ever met in my life. There is no talking to these people.

Yeah, just don't go to Reddit and just do not get into Reddit. You'll be gone for days.

And so they're like, they're like, I'm getting. I'm earning 12% on my margin. Crypto to count. I'm like, okay, yeah, yeah.

When that shoe drops, buckle up and.

Exactly. And I could see. I could see somebody doing a mass manipulation, encouraging the margin, calling it, grabbing those shares back. Particularly when there's limited supply of anything, there can be massive manipulation from a handful of players. You know what.

And what Grant's saying, everybody. Let me clarify what Grant's saying, too. Whether it's real estate or crypto or a Main street business, when he said the word margin, what he's talking about is you're not only just doing an investment that's going to have natural risk, you're tripling down on it, borrowing against the only asset in that mix that if it goes bad at all, you're not only losing the asset, you're losing everything. You own, in a sense.

Yeah.

Yeah.

And so when you even do real estate, you be cautious and you be careful when you do 1,000. Yeah.

That's why all this, like, we borrow 65% of the value of the property. So I got $70 million a cushion. Yeah, 70 million. Like now, now, if, if, if something happened in the value of the property went down because during COVID property values went down because people got scared. So we started buying more stuff. But it's just what could happen? I mean, I don't know. We're not going to go to war anymore. We don't have a war. We're not fighting anybody because we're fighting Covid.

Let me help Grant out. Here's what Grant's worried about. I'm just going to say right now, a flock of seagulls. And I'm not talking about the band. I mean, he could be in a jet, and if you hit a flock of seagulls, it could be bad.

So I've done that before. By the way, I'm the only. I'm the only person that ever videoed a bird strike in the history of the world.

What?

Look it up online.

Does that have more views than Sabrina?

No.

All right, well, Grant, we've taken so much.

Let me just handle one of the possible negative. Look, if interest rates went up, that could be a negative, right? Because I got loans that mature over the next five years, seven years, and 10 years. So let's say rates went from, um, you know, what, what am I paying now? Some of these loans are 3. 3%, 2.6, 2.3.

Yeah.

So let's say they, they're 4%. And you know, when I go to mature or 5 or 6, well, that, that would not be good. But if that happens, and I don't think it happens in our lifetime again, just because automotive will not be able to sell cars, Houses will never be sold again, ever. The US Government will have to get rid of the US Dollar because it will have to go defunct. It can't keep up with its payments now. How could it keep up with its payments at 4 or 5%? I think that we're just in forever manipulation and manufacturing of currency. And if that happens, we just keep printing and printing and printing. And I don't know if you guys have studied the velocity of money, but it's the lowest level it's ever been. And you have to have. You have to have money velocity in order to get inflation. And we don't have any. It's the lowest level people are not trading dollars. They're basically getting debt.

Yeah, good call, good call.

So it's a weird phenomenon going on and all those things speak great for real assets. The more money they print, the better a real asset is.

And I like your question, Matt too, because I love Grant. You are, you're realistic. You keep it real. I love your podcast, your webinars, your teaching. You do have an event coming up. I know you're teaching anything final, anything you want to share to our crowd to come learn more about you or.

Well, if you want to learn real estate, if you're a serious real estate guy or gal. December 13th, 14th, 15th, we're in Miami doing a three day investor conference. I'm going to teach you how I find a deal, buy a deal, underwrite a deal, get loans on a deal, raise money for deals. There'll probably be a thousand plus people there, maybe 2,000 super super events, super qualified people. And the goal there is to have people because, look, I'm not buying in Wyoming or Utah. We got 12,000 units. We're focused on about five states. I can't buy everywhere. So you guys in New York, New Jersey, Illinois, there's deals there. There's a million dollars in everybody's backyard. So I'll show you what I believe to be a foolproof strategy that guarantees you never lose money. Show you how to, like, there's just certain, certain things that makes that asset class A, almost guaranteed safe place to keep money. Now it's like, okay, how much money could you actually make there? Could you make a million? 5 million? My first deal made $3.8 million on my first deal. That was the biggest score I'd ever made in my whole life, including 10 years of working on one deal. And I did it with no money. And those deals are still available today. They're not gone. They're still out there.

I love it. So where can they go? Which website?

That website is GrantCardOne.comSummit. i think the tickets are 647 or something. It's three full days with me.

Okay, great.

All right.

And I think you can go virtual or you can go there. Like, I don't know how much of an international audience you have.

Yeah, no, I love it. Yeah. And that's ironically the name of our last self directed IRA summit. We call it the Summit. Love that term. Getting up there to the top of the mountain, learning from those, the best out there. And I'm going to, I'm going to make it there, people.

I'm going to be there let's go. Let's go. Marky. Cowboy Mark.

I don't know if I'll bring the hat. Maybe I should, you know, you like, you like that? I'm from the west, you know, Got to own it, I guess. But I'll be there, too. And Grant, thanks for all you're doing. People will have links to everything Grant talked about down in the show. Notes. Grant, thanks for taking such valuable time to be with us.

I appreciate you guys. All right, have a great end of your year and a great start to next year. I'll see Mark in, in Miami.

Okay. Love it, man.

Thank you so much. All right, well, thanks everybody for listening in to today's Main Street Business podcast. It's been a while since we've had a guest. It's been the Mark and Matt show a little bit here for a while. I hope you liked a little change of pace there with Grant Cardone. The guy kind of needed no introduction, but I enjoyed all his thoughts and how we bounced around on some different topics today. If you like the show, please give us a five star review or a thumbs up. Make sure you're subscribed.

Prescribed. Did you say subscribed or prescribed?

We're subscribed.

Our prescription to you. Our prescription.

We may. Yeah, we've authorized this. You've got a prescription. We'll put it in the mail to you if you need it in writing.

Yeah, yeah. This is a good. All of you need a prescription for a little tax and legal shot.

Oh, yeah, it'll cure. It'll cure whatever small business, real estate investor woes you've got. It's not going to get you out of paying taxes, but it'll make it a little less painful.

Yeah, we're going to get you out of some taxes. And no, everybody continue to please keep learning what you're investing in, what your business is about. And one of those is tax and legal. And so we're grateful for you being with us this week. And we'll see you next week for another amazing episode with Matt and Mark. Or is it marking that? I don't know.

Wow, Matt. Matt was first in the Bible. Just saying.

There we go. Okay, fair enough.

Till then, thank you.