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How to Raise $1 Billion: Real Estate investing Made Simple



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grant cardone here and welcome to real

estate investing made simple every

Monday I come to you to talk about real

estate to answer your questions you can

call me at three oh five eight six five

eight six six eight had a little beep

through a three oh five eight six five

eight six six eight tell me do you have

a deal or do you have a question today I

want to share with you today's show how

to build a 1 billion with a B 1 billion

dollar I was I was with Ryan this

weekend I'm like dude I'm done okay it's

taken me 25 years to get to a billion

dollars one ee9 doll 1e9 okay put that

put that in the old calculator you can

get to a billion it gives you that

message 1 inna and everybody's there

it's an error message no it's not that

is the mathematical formula for a

billion dollars okay 10 Ian and you

didn't know that no oh 29 baby 29 1

billion dollars okay now how could how

could Grant Cardone go out and buy a

billion dollars where the real estate

this is the question Ryan and I spent

we're looking at real estate how many

units we look at Saturday overnight over

950 same same same issue every day every

time where so many issues I hate the

same issues I hate the same problems

okay so check it out but you're good at

wrong how many units did we look at the

other day to over 950 950 units on a

Saturday afternoon started with 400

units and we looked at another one

looked at another one I said run I'm

sick and tired of playing a little man's

game okay I said dude we're gonna buy 1

billion dollars whether real estate in

the next 8 months before the year closes

I am sick and tired of playing the

little man's game okay it's all work

folks it doesn't matter how much work it

is the bigger the bigger the goal though

the bigger the activity particularly in

real estate I talked about this all done

most important thing is number of units

Francisco's got it just keep repeating

until I break you guys into submission

so I do the math hey God what's a

billion dollars for the real estate okay

a billion dollars where the real estate

requires me to put three hundred million

dollars down definitely more achievable

this is the beauty

real estate I ran into offset over at

the st. Regis Sunday morning I said dude

remember this every dollar in real

estate is three dollars every hundred

grands 300 grand every 1 million dollars

every time you buy 1 million dollar 100

1 million dollar watch offset and

offsets a rapper it's 3 million dollars

for the real estate huh it's magic bro

okay

it's a multiplier right so I can buy

billion dollars where the real estate

with 300 million dollars I know for sure

the debt market will give me this will

be debt right here the debt market will

happily give me seven hundred million

dollars worth of debt it probably today

three point eight to four percent

interest for 30 years okay know what now

now what am I gonna do for 30 years I

have to pay this debt off assume that I

can get this by the way this is much

easier to get than the billion okay so

think different

I got a billion owed for the real estate

I'm gonna become a billionaire if I

don't become a billionaire my kids will

be for sure okay watch what happens this

debt right here the debt no problem

getting this loan easier to get this

loan than to get a loan for a house

because these guys the guys that lend

this much money know the kind of assets

one of the indicators straight out of my

book dude if the debt market won't give

you a loan easily and desirably and want

to and aggressively like we want to give

you money it's a bad deal so the debt is

my partner okay this debt in 2049 what

will this what will I owe on that debt

if I can close all these deals this year

that will be a zero very important

number when you buying a billion dollars

for the real estate now it's a billion

dollars I paid what for three hundred

three hundred million not really because

the three hundred million the three

hundred million now I got to figure out

how to raise the three hundred million I

got 140 of it right now

so I got to figure how to get the other

half already know how to do that by the

way we figured that solution out

over what was that even eating pancakes

pancakes crate genius protein pancakes

okay check it out so 300 million if it

earns me five percent in the first three

years seven percent in the in year three

to year six and then nine percent I

think it will in your six to year 10 if

we blend this I'm gonna end up with

about a seven percent on three hundred

million over ten years seven percent of

three hundred million is times ten what

do you one it's two hundred and ten

million dollars ten years seven percent

of three hundred million seven times ten

years see everybody forgets the years

they're like what's my return how long

we in it dollar ten yeah okay and what

year we talking about man your diels

cashflow five percent in year one yeah

you see the assets that I mine these

assets will be easy to sell in ten years

you need an exit right I'm trying to

turn billion I'm trying to turn a

billion dollars into three billion

dollars I'm trying to become a

billionaire and I'm trying to make a

whole bunch of people rich while we do

it

and provide the tenant with a great

place to live these places that we're

live that we drive on to the one deal we

looked at there they don't mention the

name you drive on you can't sneak

through the gates like we can at most

are on properties very high yeah like

when there are nice properties you can't

just kind of jam in like you know I'm

going in any weekend so look man I'm

running 210 million dollars on my down

payment so now what did the property

cost me ladies and gentlemen the

property by the way that is now paid for

and worth 1 billion dollars at minimum

would not pay for now ninety ninety

million

I paid ninety million dollars to buy 1

billion dollars of assets the chance to

become a billionaire ok question now

what is the property worth in 2000 49

before you say that before you before

you answer that question this is why I

was telling offset dude I got magic this

is magic it's better than magic to you

know what because there are real assets

this isn't

eight of hand okay this isn't that

Chris guy Chris angel and his

this is like 30 acres here 40 acres

there 70 acres right here 88 acres there

you can't make that go away now check

this out okay the ritz on these

properties today or 1500 to 1800 bucks a

month before you tell me what this piece

of property it's worth 1 billion dollars

today ok if 15 to 1800 or the rents

today and we bought in great locations

with jobs what are the rents going to be

not the price the value of the property

where their rents in 2000 49 at least

double ok so watch this

3000 is that fair

is that fair this is the conversation

you and your family need to have when

you're buying a house this is why you

need to tell your wife honey look what's

gonna go on in the next 30 years forget

our house is going to just decay decay

decay

we'll have to paint it three times we'll

put two roofs on it in in that period of

time our kids are now gone but this real

estate this apartment deal that's why

you guys don't sell this thing well

enough to say hey where are we going

here these rents could be three thousand

they could be five thousand by the way

when Francisco said easily three

thousand he didn't say they couldn't be

five now before you answer that question

understand that one billion dollars were

the real estate at a current price of

200 200 thousand dollars per unit wood

buys 5,000 units 5,000 units at $3,000

paid for we have no debt now can y'all

do the math on this what's my income

every month 15 million 15 million

dollars a month 15 million dollars a

month I might not even be alive anymore

okay I'll be around but I won't be like

this okay 15 million a month a month 180

million of gross a year okay that's only

if the payment that's only if by the way

what are we own it what's our debt our

dads nothing okay I

good just read the book I should be able

to net 50% seven point five million

dollars a month or 90 million a year in

free cash flow huh let's see how do you

have no debt huh how do you have no debt

it was paid for two thousand forty

nights been paid for Oh

now Ron's like we would never pay this

off of course we wouldn't we would have

refinance it twice at least maybe three

times he's right

divide about oh six okay ninety million

divided by 0.06 properties worth at

least 1.5 billion so you've created I

had to go I had to go see oh let me just

show you what is that how to go sideways

yeah okay too many zeros man divided by

0.06 say see what does it say one five

eight nine that's right I can't when I

do it like this this was one point five

billion so anytime you see that you just

hit a billion it's not an error Elena I

thought it was an error message said

yeah isn't there use big I'm a

billionaire okay okay so now remember

this you're being paid ninety million

dollars a year what did you pay for the

property you paid three hundred nope

remember I paid three hundred but what

happened the cash flow watch three

hundred we paid three hundred we earned

two ten in ten years of cash flow K we

paid ninety and now we're earning ninety

million a year can you guys just think

bigger I'm gonna raise a billion dollars

I'm gonna raise a billion dollars I'm

sorry I'm gonna buy a billion dollars

for the real estate this year and I'm I

hope a whole bunch of people invest with

me cuz everybody's gonna get rich on

this deal not just me this is what Wall

Street does to create massive wealth

this is exactly how goldman sachs bills

properties vertical 90 floors and

290 floors in New York City this is how

they've gotten so rich so what we're

gonna do is we're gonna cut them out

we're gonna go straight to the public

and say you guys want to do this with me

because I'm gonna do it I'm gonna do it

with or without you I'm going to do

Cardone capital comm is the fund you

should go there read everything until

you invest with me if you want to go buy

your own deals good by your own deals

there's no deal you're gonna do there's

gonna make this kind of money can you

share with us how you raise the money

from good audience from the south good

so what we do is we go to our we go to

our people that know me and I tell the

story you got to have a story you got to

have an audience - you got to have trust

in the audience and you got to tell a

story so I'm gonna tell this hey guys

I'm gonna go buy a billion dollars worth

of real estate I need to raise 300

million to do it already have about 40

of it okay now I can go to you and say

you guys want to play with me or I can

go to one big group and say I'll do one

forty you do the other one sixty I

guarantee I'll have people lining up to

do that they're like you're in for one

hundred forty will give you one sixty

and they'll part them with me goldman

sachs does not want you in the deal they

want to be in that deal the big banks

the Deutsche Bank's okay the Ross Scotia

banks the people in Russia Malaysia

Singapore there's I guarantee I'm gonna

go to Jerusalem this year somebody

Jerusalem would be like no no no don't

sell that to your buddies on Instagram

gonna let you people get in that deal

you're 10 million followers we want in

that deal yeah I don't want to get

sidetracked but you made a good comment

this morning on one of the deals that

we're looking at you said now guys these

deals are getting sobei they're just

buying debt they're buying debt

basically they're having a place to

700-million they're not worried about

the price or pants they're having a

place they're trying to get this why

because they have a Japanese eyeball on

the scene which means what long-term we

think a long-term okay so that's why to

offset so you see a little girl my

little girl walked up top saying I love

you I love the earrings I love you

necklace guys guys like he's a Brit know

that's much deeper I'm like dude what's

it like I mean what's your earlobe is

like carrying like you had to be like

two or three carat diamonds on both

sides Wow I said bro every time you

spend a million dollars every time you

spend them

it cost you three million its

opportunity cost every million dollars

when I was 35 years old I just kissed

said every million dollars three million

bucks every million is three million

every ten million 30 million every 30

millions 90 million every hundred

million is 300 million every 300 million

bang we're gonna buy a billion dollars

with the real estate so we go tell

people look we're gonna cut out goldman

sachs we created a website called Carta

we created an opportunity called

carloancowboy.com we've registered with

the SEC for accredited and

non-accredited investors and what we're

gonna do is we're gonna have our

investors right here at 300 million

we're gonna pay you guys that the 5% 7%

9% to blend over ten years and then at

the end of ten years we sell we

refinance I call you up and say hey

we're going to keep everything for

another 10 years I have the right to do

all that you just got a partner with me

let's talk to our callers tell me do you

have a deal or do you have a question

Lucas what's going on buddy deal

requested question for you thank you

are you doing grant good brother good

great and couldn't hear it I'm wanting

to get into real estate investment never

done it before look the best way to

start first thing I would do is get this

little simple book here read 240 pages

of it it's going to tell you the perfect

ideal size deal that's the perfect size

deal that you should do on your first

transaction so so that real estate

doesn't become a problem for you and it

actually benefits you and your family

enough to warrant the time the energy

and the resources export how much dough

to you that hate how liquid are you

right now

Loran yeah okay

so look he's got two thousand dollars

this is most of America right now he's

got two thousand dollars the most he can

buy right now is a six thousand dollar

piece of real estate so I mean that

that's the math two grand by six

thousand two grand my by ten I mean he

came about watch I mean a good watch

costing ran let's go watch plus 250 I

don't have watch on today okay yes I did

look you your only other alternative and

this is what Wall Street knows you're

gonna go buy some slumlord house rent it

out for 700

cross your fingers you know hope hope

you make some money on it

worst case is you're gonna go buy your

own house I could buy a house with two

grand down I guarantee you somebody this

year is gonna buy a house with two grand

down and they're gonna do it because it

was only 2 grand Alan - you're trapped

forever man mm-hmm

because you could you could go find a

house for a hundred grand and probably

put $2,000 down if you're if you're a

vet or first-time homebuyer and you

would be like oh my god that what a deal

Thomas did this Thomas Thomas is a vet

what about two units because the down

payment was negligent nobody else the

trap folks yeah if it sounds too good to

be true

I'll eat it no it's a nightmare

it ain't a dream we don't call it a

dream no it's the American dream no it

ain't it's stupid

you're trapped you can't get out and

you're not gonna make any money on the

deal all right

by the way freedom you guys make your

financial decisions for freedom they

shouldn't involve traps right I

shouldn't have to get trapped into

something to have financial freedom Ron

what's going on hey how you doing man

I'm doing great Ron you have a deal

during you got a question I've got a

question for you bring it on bingo

got 300,000 and home equity and the

question I have is and this is a

question that that's going on inside my

house right now

yeah to get the maximum buying power is

it better to keep the home and take out

a mortgage and use that money or sell

the house and use that money and rent so

from the bank's perspective since but if

I was to us they do a mortgage because

the house is paid off if I used a

mortgage because and we stay in the

house does the bank still tie that money

up and and then I don't get that three

to one leverage thing you're talking

about on us on a purchase yeah yeah so

number one you should sell the house I

mean you're already asking the question

if you're already you need some oxygen

Johnny get Johnny some oxygen okay yeah

whatever Jaya doesn't make you young

sunburns tell Mikey on okay lack of

commitment does okay three three three

under granted it's a dad dude the house

doesn't pay you

thing it's like having a kids bike you

bought you bought your kid a bike and

when they were six and now they don't

use it anymore I know people that still

have bikes and your kids aren't even

going there kids aren't even at home

anymore Mike knew well maybe get rid of

the bike now oh you know they come home

home dude the kids 27 years old get rid

of the bike you guys got all kind of

stuff sitting in your house notice how

much stuff people collect that they

could actually get rid of oh yeah but

it's keepsake it it reminds me of big

deal man so whatever mind you're getting

you got a memory you got to have

pictures and everything you got stuff

all over the place some of you spending

$200 a month on storing nobody once

soon as you die everybody's gonna be

like what was he thinking as soon as it

happened we get rid of everything okay

so dude I would take the 300 K bro I'd

go buy myself a million dollars with a

real estate now you could go five

million dollars whether real estate

manage it yourself or you could do the

deal with me and you're going to get a

million dollars position in the deal we

had a guy come in here Friday he gave us

a check for a million dollars he

immediately gets a position for three

million dollars in the deals that I'm

buying this is how this works this isn't

a piece of paper he gets a million

dollar investment he gets a piece a

property he takes a position like I did

I'm basically giving my three million

dollar position I've already bought and

closed on for his million dollars worst

case three major recessions over the

next 30 years we go through three major

wars the world comes to an end for 30

years at the end of 30 years dude this

thing's worth three million bucks if it

didn't go up in value right so I would

tell you bro sell the house I know you

got to get your wife on the board

everybody's all connected they're all

connected how with their emotions you

want financial freedom you do not want

to be emotionally connected to a piece a

piece of anything a car a watch a house

I don't want to be emotionally connected

to those things I want freedom I want to

go to new emotional when we started the

show today I'm like I'm so

and tired of the pass right what that

means to me is I'm tired of playing this

game like I'm tired of yesterday

successes and the only way to move on to

the next thing is to get rid of these

assets that keep you going back to that

same place if Ron decides to invest with

you

part of the Apple dr. what he is asking

ya what's the minimum to invest the

minimum to invest is $5,000 so he's got

20 of those our average investor does

four hundred and forty thousand dollars

and I think that's about what it is

might be that might be a little high

our average and cret accredited investor

does 440 our average non-accredited

which we're open for business for non

accredited as well is twenty to twenty

three thousand dollars okay Nathan

what's going on yep it's going on good

come on man let's talk to birds thing I

want to say is thanks for doing what you

do yeah thank you brother thank you

brother so I'm calling right now because

I actually old it deal and I have a

question about we're tossing up whether

to sell it or to keep it and rent it out

it was a complete rehab so it wasn't

cash flow in month one but it was a

really good price we've got a vendor

take back was 550 just outside of

Toronto and we're getting offers now for

1.3 to 1.5 a year and a half later was

done you know maybe a hundred grand

worth of work on it yeah we can make

quite a pretty penny on it but as you

know the properties around here are

extremely expensive and to find

something that cash close that we could

buy for four million with that million

bucks we might make it's tough so I'm

looking at making about eleven thousand

a month in cash flow you know I'm

looking for some advice on whether we

should sell this or not so so what do

you think you could sell it for right

now burn it out sell a fire sale yeah

fire sale 1.3 1.4 what and what do you

owe on it 500 yeah so you pick up 800

grand yeah what do they say what's that

saying that about pigs go to slaughter

hogs go to slaughter pick up your ate

move on yo y'all know what the quote is

no 17

people in here and nobody can tell me

what the the 17 people hogs go to

slaughter let me look it up let me look

it says pigs get outs go get slaughtered

17 people in this room and not one

person can help me out pigs get fat hogs

get slaughtered

dude be a pig they know how to do that

Oh everybody does that how you gotta

look up that let me hear yours princess

I said finish way to pig skin to skinny

pig okay

ain't no bacon left on him okay so so so

dude I would I'd get my eight hundred

grand

why would I get eight hundred right why

would you get eight hundred I take my

eight hundred what am I thinking right

now you want to multiply it by three

exactly ma'am my eight hundred I'd

freaking

I'd by two point four million dollar

it's not what I did it's where am I

going now that you got the money eight

hundred buys me 2.4 million check it out

if I can roll this again you may would

you make on that deal would you pay for

that deal we paid five hundred for it

but my problem is where am I gonna get

some one's gonna cash flow 120 don't

worry about it oh don't you don't need

to 120 year year okay when you get to

2.4 million dollars let's say watch this

is a great question he's asking by the

way your cash flow percentage-wise

over time as you mature as an investor

will go down but the month the numbers

went up okay so I don't look for I can

go from a deal that did pay me twelve

percent next deal might pay me ten

percent next deal might pay me eight

percent dude I could do a deal that pays

to be five or six percent but this

number got bigger okay how much do you

get paid keep it to yourself hold on a

second let's say I find a deal let's

just do my blend back here that I was

working on one percent of five percent a

year five percent seven eight nine ten

let's say this is a seven let's say this

is a seven okay that's gonna make me

fifty six thousand dollars here what do

you get paid now we're getting paid 120

well I'm not true get ready save 120

once it's rented once it's rented

once it's rented well oh so what's your

cash flow right now oh we're doing fifty

five hundred a month okay good I mean

fifty six thousand dollars your sixty

grand a year I'm at fifty six thousand a

year but right I got you in two point

four million dollars bro I tripled I

tripled your asset value would you would

you take a little less cash flow if you

could it's some time in the future right

now you got eight hundred grand I'm

going to turn that into 2.4 million

dollars

it's the 3x right while I wait ok and

that is by the way a very conservative

5% year 1 year - I'm sorry you're 3 7%

8% 9% 10% okay see once I get to this

10% if I can get there sooner rather

than later then watch what happens now

I'm earning eight thousand dollars per

month no I'm sorry eighty thousand

dollars a year if I cap out I'm being

paid more money now why I'm protecting a

bigger egg six times as sure as your

equity as as you grow equity as you grow

the value of the estate your returns can

go down and the quality your products

will get better you guys want to see

what I'm doing all you got to do is go

register Cardone capital com Cardone

capital comm you can register there see

all the deals that we're doing you don't

have to do anything with me you can

steal all my content steal my

information take it go out into the

marketplace by your own deals if I can

help you buy your own deals I will if

you want this book for free go to Grant

Cardone duck no no Cardone capital comm

four slash book Cardone capital com

force nice book the books free okay pay

the shipping I'll send you the book grab

the day to grab the data if you want my

real estate course it's ten thousand

dollars it's worth a million bucks II

guarantee okay this is fifty hours of

video content showing you how I walk

through deals if you know what do any of

that man do me one thing you watch this

for free today post a damn comment below

okay subscribe to the channel if you

don't like it then you got to ask

yourself why did I watch the hole

things I know he liked it my huh I don't

like him I don't like the way he talks

she's talking about a 189 talking about

a billion dollars he's gonna buy a

billion dollars for the real estate this

year all right hold me accountable in

2012 31 2019 I'll report back to you

worst cases I'm gonna do 790

million dollars not a billion I'ma be

like I didn't quite get there

in the mean time folks I keep it all

transparent I need to send $100 to

Hessel a foeman kind of name is this

grant there's so much value in what you

do teaching especially what you modeled

by you and Alana's example why we got to

talk about Elena all the time you're a

treasure of grazes and resources yeah

back to me back to me back to me yes Lee

you are a treasure of great news and

resources Tustin Florida I'm in Boca

Raton and to the planet thank you so

much I'm always taking notes okay good

send her $100 $100 in cash when you come

we new comment let me hear the pigs

again when you come in when you come in

you get a shot at winning $100 of my

money I send it out to you right away

cash or you can take a credit of this

store for double whatever you want to do

okay all you got to do is comment

subscribe to the channel god bless you

guys good investing what do we say here

peace love love and cash flow hey hey if

you like this video make sure you go

watch this video right now I'll see you

there