6 Secrets To Becoming A Real Estate Millionaire, According To Grant Cardone
I recently had the chance to chat shop with real estate mogul Grant Cardone and couldn’t miss the chance to find out his key secrets to real estate investing success.
About Grant Cardone: Cardone is the founder and CEO of the private real estate investment firm Cardone Capital. He is also a bestselling author, speaker, sales trainer and star of the second season of “Undercover Billionaire”.
While Cardone gained fame through his bestselling account books and sales courses, most of his fortune was created through real estate investments. Below are his six secrets to becoming a real estate millionaire.
1. The deal is more important than anything else. Most people hunt the wrong thing first. First is business, then debt, and then equity or cash. Find the right deal and the debt and equity will always follow suit. Investors and lenders will always strive for great real estate.
2. Never compromise on location. I would rather pay more for a great location than a great building. You can always repair the property, but you can never change its location.
3. The number of pieces is the most important number in real estate. Most people start out too small. While it can be easier to buy a unit or two, it is harder to make money from smaller deals. 32 units are easier to manage and make money than four units. Most people don’t know this until they have been worn down by a series of small deals.
My first multi-family contract consisted of 48 units. I put together the deposit from friends and family and made nearly $ 5 million.
4. Look for properties where rents are below the market and can raise $ 200. In every market across America, you can find properties that are rents below the market. This is mostly an owner who has been invested for a long time. They may or may not have to fear increasing rents because their cost base does not require it. Increase rents and you will instantly add value.
5. If it has no cash flow, say no. Cash flow is the holy grail of real estate investing. Positive cash flow can get you through falling markets. And it’s only a matter of time before rents go up. If rents rise, so does cash flow. The more cash flow there is, the more the next buyer can pay for your property.
6. Finally, you know your market coldly. Trust is the most important quality of a good investor. Without absolute trust, you will not pull the trigger. By knowing your market, the local economy, jobs, rents, occupancy, expenses, tenants, and income levels, you will gain the confidence you need to make decisions.
Cardone’s final word on real estate investing: I’ve been investing in real estate for 30 years and have never lost money in a business and I’ve made a lot. I started with $ 3,000 and now have 10,000 units with average rents of $ 1,850 per month. You do the math.
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