Grant Cardone explains why individual investors shouldn't chase 300-unit apartment buildings. Institutions dominate that space because they prioritize scale and amenities. Smaller investors get better returns focusing on single-family homes in markets like California and Las Vegas instead.
Think though about just so many markets don't cash flow now. Yeah, which, which ones?
California, Las Vegas, any major market. You can't buy a single family house and make it cash flow.
Well, I wouldn't buy single family. Why is Horton not building single family home? It's scale. Why would you keep trying to do something the institutions aren't doing? Like, like back in the '50s, you only built the single family homes. 1960, somebody said build 2 on the same lot. Scale. And then by 2020, it was like, no, no, do 300 units, one location, great amenities, swimming pools and security and And, and people are gonna live like that. So that's what you should be buying, dude. That's where all the deals are. The deals are not in single family homes. The deals are in the big multifamily.
One of the rare occasions I do actually agree with Grant, and sometimes I do. In this case, he's absolutely right. Now don't go after the 200, 300 unit buildings. Institutions are competing for those. You're not going to win. But if you are a mom and pop investor and you wanna scale, the money is in the 5 to 50 units. They're not that much harder to operate than a single family. Much, much easier to scale. And ultimately, they make a lot more money. If you're looking for opportunity, that is what you're looking for as you're jumping in space, not single-family. You're gonna really struggle there.