From Struggles to Success and Predictions for the Real Estate Market | Grant Cardone | EP1

From Struggles to Success and Predictions for the Real Estate Market | Grant Cardone | EP1

Justin Colby: What’s up guys welcome back to the entrepreneur DNA. As you can see very special guests in the house today. Make sure to stay tuned for Grant Cardone.

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Justin Colby: We’re just talking about the first time we met Do you remember down in Arizona? Kent Clothier? Scale escape . Yeah, that was years ago, man six years ago. Now we’ve been doing that deal.

Justin: Let’s talk to the entrepreneurs out there that you know, how many brands do you own? How many companies do you own right now? Everyone knows Grant Cardone the real estate guy.

Grant Cardone: Yeah, there’s, I don’t know. 20, 22 competencies. Man.

Justin Colby: That’s impressive. Yeah, now wasn’t always that way. Right?

Grant Cardone: No man, it was the in the beginning was I didn’t look I’ve never heard the word entrepreneur. I didn’t. I didn’t ever want to be a boss. I never thought Oh, I gotta work for myself. I was a sales guy in a sales role that I didn’t want. I didn’t want any of that. Yeah. So

Justin: That was car sales, right?

Grant Cardone: Yeah. But it could have been anything could have been furniture, whatever the job I would have had at that time is what I would have done. If it was in McDonald’s. I didn’t have a choice. They got to the point in my life where I was at the end of the road. I didn’t have any money I had my credit was destroyed, my reputation was worse than my credit. And nobody in the community trusted me. I didn’t trust myself. And so I was like a very broken individual. A lot of people don’t know that part of that story. They just see that they see the light now. Right? And, and I was in sales job companies elected to keep me they said, Look, we’ll give you one chance, last chance. And I didn’t like sales, but I just put my head down, man. And I said, Okay, I’m gonna learn the game. I started studying all the greats. Sure, anything I could consume on. Who was the guy Douglas Edwards, Edward Douglas, just remembered his name out of nowhere, but he’s a phenomenal sales guy. Zig Ziglar was selling for tots and can’t do door to door. And so I became intrigued with this world of self help and, and learning and education. And, and, and it it lit me up. Dude, it inspired me I you know, there was a car sales guy. I said, Who’s the best car salesman there was this guy that was basically an educator. Yeah. And he was going around doing workshops. I never attended one of his live workshops, but I got his tapes. Big set of tapes and paid what I paid for those three grand had to borrow money from my mom, there you go. $500. And went to my mom said, Look, I will not let you down. I know I have in the past screwed up everything. Lend me this money. It’s gonna make me a good salesman. And she’s like, you went to college, you have an accounting degree, you shouldn’t be a sales. I said, Look, I don’t want to be an accountant. They’re gonna tell you. So just lend me the money, I’ll pay you back. I paid her back 30 days after I bought them good for you. So that’s when I tell people when I’m selling stuff. And I tell people, I put it on my credit card, and It’s just a hard sale. I’m just telling you what I did.

Justin Colby: Credit card. Let’s get like credit cards, I think are the biggest, biggest advantage we could use as entrepreneurs. I have all my marketing. I mean, how much you spend on credit cards every single month for marketing for your education companies.

Grant Cardone: I mean, How much do I spend. Yeah. I mean, I use the credit card just as a place to store that that I did the activity.

Justin Colby: That’s it. So as accounting reasons it points reasons. Yeah. Listen, you can buy a lot with millions of points. You can travel the world and millions of points. You can buy luxury items and millions of points. Yeah, so we’re spending money anyways, credit cards should utilize. I think a lot of people hate debt. And we can get into that a little bit.

Grant Cardone: Well, I just hate to be broke and poor and not feeling good about myself. 25 That’s what I hate Chertow I didn’t, I couldn’t get debt because I had my credit cards taken from me. I wouldn’t pay my rent. It’s time so me me getting credit was not a choice. I had to go to my mom, which was harder by the way they get a Visa card, going to her and saying hey, can you please lend me I’m a grown man. 25 years old. Just let me three grand paperback. I got on those tapes, dude. Like, I listened to those things. Thousand ton like, I wake up in the morning, watch the tapes. I’d watch them and I just watch this guy can do that. I’d repeat after him. Like if anybody really like I wish I would have videoed all that because here I am. Like, eating this material. Yeah. Adopting this guy’s southern accent his like his the way he draw words out his silent pauses like the way you tell a joke. Smile. I was studying everything about this guy. Probably the way the ball players do you know, as the ballplayers on the on the sidelines studying the tape? Right? So that’s what I did. And then next thing, you know, I started making sales and then a little longer and I kept studying I didn’t like a lot I see a lot of people they they learned something and then they they put it away. Yeah, like they got it. I didn’t man I just went hard on it. And then I started sharing it with other people and then When I shared it with other people, I got a real understanding. And that’s probably why, you know, when I’m 25 I came out of a treatment center for drug addiction had no clue what I was doing or where I was going. And looking back now, the ugliest terrible worst part of my life was actually the door. Yeah, that was it. I was walking through the door my future and didn’t know it.

Justin Colby: But you started young if we’re being honest, man, I I tricked off my 20s I checked off most of my 30s I’m 42 I didn’t get married to a 39 Yeah, right. And so what I’m saying is you may have went through that dark period in early 20s. But even by 25 That’s young in today’s standards to come to the realization that you did to start the studying, to start the education, started believing and start going. In my opinion you felt like you wasted some your life. No, I did. Definitely. Yeah, bro at 25 for you to see that light. You don’t need 35 year olds are out there still doing the same shit. You’re there when we were 22?

Grant Cardone: I don’t know, man. But next time I’m coming back. I’m getting this shit done at 12. Because I could have, by the way, if I would have been in an environment like my kids are Yeah. If I wouldn’t have been forced to go to school for for 17 years. Yeah. And if everybody wouldn’t have been pushing the school agenda, you got to go to school, you got to go school, you got to learn school, you got to get like if somebody that said like today, I see a lot of kids like, I don’t need to school dude, I can go do this YouTube thing. I can learn AI can learn video content creation. Like if I if I had another place to go call it, you know, and if I would have had other examples like are out there today. Like I see guys doing the flip. And in the If I would have seen people at 15 or 16, 17 years old because my dad was going to 10 I was looking for mentorship. That’s right. And when the drug dealer came around, says, Hey, this is what I do. I’ll go I wouldn’t take anything. You could have been raking leaves knocking on doors. Anybody would offer me any opportunity at 15, 16 years old is like show me the opportunity. That I was really looking for. So I think I mean, I hear what you’re saying about me starting, you know, getting it done at 25. But there was no reason to waste. Even how much time 15 to 25. I could have been hustling at 15.

Justin Colby: You homeschool your kids?

Grant Cardone: today? We’re Yeah.

Justin Colby: So I have a three year old. You know, we’re starting to talk about that we live in Miami. Yeah. Right. And so obviously Miami is a crazy city in general. Society is nuts. We I think we can agree on that. Well, what advice do you tell your kids about education? Because you have an education platform? That’s massive. I have one and we have many friends that have them. Do you advise? Hey, go the journey you believe in? Or do you say let’s go the school system?

Grant Cardone: Well, we took them out of school. Yeah. So so we could spend more time with them. And we had them in a monastery school here in Miami, then we put them in a private school country date or I tried to forget the name because it was so expensive and so useless. And we took them out of that school brother, they got better immediately. Yeah, like it was starting to have problems like they were starting to show signs that were like where’s this coming from? It was coming from school, the other kids so and I’m not saying the other kids are bad. I’m just saying we don’t know what the other kids are up to, you know, if they’re on Snapchat and Tiktok and, and my kids watch that stuff, but like they couldn’t get. We saw a change. We took them out of the school system. We’re scared like anybody that’s gonna have, we’re like, oh my god, this is gonna be huge responsibility. It has not been hard to do. It’s been one of the best decisions we ever made. I go home I go home today at noon. Kids are there I go home at four. They’re there I go. Well, they’re there. Yeah, I don’t have to get up spent 45 minutes robbing him off the school. I said it get them to the garbage got the prison. And, and, and have them taught stuff. That doesn’t matter. So we homeschool. They do it on a computer, they do it on a zoom call. And both of them have A’s. They spend about maybe 15 hours to school a week.

Justin Colby: And you just champion whatever direction they want to go into.

Grant Cardone: And then and then the rest of the time. It’s us. Yeah, right. What do we want to teach them like given them this dog this weekend? I’m gonna give them a dog. I’m gonna be like, Okay, you guys want an idiot or you want it? You want a well trained dog. You want somebody you said? First two weeks is everything you have to this dog? Yeah, like just practice the discipline for two weeks, and you’re going to have the dog you want for many years. (Justin Colby: Amen). And everybody will say oh, God, let’s not go to their house and dad that idiot dog, you know, barking at your feet.

Justin Colby: I love it. Let’s go back to your point about borrowing three grand from your mom. Yeah. We have a similar story. I wasn’t your age. And it wasn’t my mom but I was broke, busted and disgusted. I lost my home to foreclosure. repo man took my car. I was living on a couch. Well, after being a realtor back in 2007. Making a lot of money spending a lot of money when it crashed. I had no skill set. Yeah, I didn’t have a mentor. I didn’t have a coach. I didn’t have any skill set to rely on. So I crashed. But I understand being resourceful. I had no money but I borrowed $25,000 For my first coach from a friend by the way. Wow. So you talk about your mom. I had to go to a buddy. Well, hey, baller, you got to trust me I got this, I’m gonna make it. Let’s talk about being resourceful and the money it takes to get into entrepreneurship. Business, you own multiple businesses. How do you view money right now? How do you look at financing? Do you borrow money? Do you use your own capital? How do we talk about money right now in the world that we live in?

Grant Cardone: Well, let me just go back to like, when I when I, I was a sales guy from 25 to 29. I did not want to be the the owner. I was not thinking about being the manager. I wasn’t thinking about being the boss. I never thought about being the entrepreneur. I had zero interest in being the guy. Yeah, I wouldn’t even thinking about like, like, I wouldn’t think about this version of myself, running people and having thousand employees.

Justin Colby: You’re just trying to get some money to pay your bills.

Grant Cardone: I actually all I was trying to do right then I was actually happy with what I was doing. Because I was so damn good. I got great at it. Yeah, I wasn’t good at it. I got great. I studied and I practice. I’m like, Man, I know how to make the shots. (Justin: There you go). So I wasn’t thinking about owning the team. I was thinking about just being a good player. Yeah. And I got fired. So he thinks I quit. And I think I got fired. But it’s something in between there happened. They went out of business to within nine months (Justin Colby: After you got fired). He had two car dealerships, I was so productive dude like I was I was doing what other people would do. It would take four and five people to do the kind of production I did. And I mean, I truly knew understood my craft. And I was I was educating other people how to do it. So one day, he walks in and said, I said, Hey, man, this guy steal in front. And he said, man, you’re on business. And I took that to mean, your fired. So I went over there got my things, like any diva would Yeah, in the impact that my boxes have in my things and put it in my car drove home. And then when I got home, I’m like, I ain’t got a job. Yeah. And I’m like, I gotta get a job. So I called this guy in Chicago and said, Hey, are you hiring? He’s like, I’d hire you in a second. And he was an educator. And then this other car dealership in Baton Rouge said we’d hire you as a manager. (Justin Colby: That’s right, because you were in Louisiana, right?) Yeah, yeah. Lake Charles, Louisiana. I went to my priest, Charlie DuBois. And I said, Charlie, man, I got two choices. I go, I go. I either go work for this guy in Chicago, or I go be a manager in a car dealership. And he’s like, he put it on the board. This guy was very, they everything was the sign of the cross. And he put a big cross on the board. And then he put Okay, which one are you most scared up? Right? I’m said, Oh, dude, going to Chicago is freaking terrifying. He’s like, this is the one you must do. Bless young men go for it. Okay. And so and I didn’t do it. I called the guy and said I’ll take the job. Yeah, went up there and negotiated the job. And next thing you know, I’m travel all across the country. Teaching people but I didn’t again, I wasn’t thinking about owning the company, became the top producer in that company. went to him and said, Hey, bro, I need something else. Like, like nobody does what I do here. Like I started growing my confident. And my resume, I was starting to repair myself as a human being. Remember, just five or six years before this dude, I thought I was a useless. I mean, I didn’t think I didn’t. Wasn’t 100% convinced I was useless. But I was down there at the bottom. Yeah. And now I’m starting to be like grow. I got some skill five years later. And now I’m selling car dealers. I’m selling car dealers education. Okay. And I wasn’t so this is not the day of selling entrepreneurs. You’re not You’re not doing we’re not doing masterminds and boot camps. And that’s right. I nobody knows me. I don’t have a name. I’m cold calling people. And I’m racking it. I’m making it that time. I was probably making 150 grand a year, which is a bulk of money. This is big money. That’s 35 years ago says probably, you know, 400 grand a year.

Justin Colby: I was gonna say 400 or 500 grand a year. Yeah, for sure.

Grant Cardone: And I’m buying real estate. Like I’m coming home and I’m boom I buy a real estate deal (Justin Colby: Do you buying it then? Because we all know what you do now). Yeah, this is well, this is yeah, I start I start playing the real estate game. I started studying the real estate game. So long story short, I wasn’t thinking about owning the company went to the guy and said, hey bro, you got to pay me more money like you’re paying John. I think the guy’s name was John or something the same money you’re paying me. And I’m 10 times more productive like this is crazy. Yeah. And, and the guy agreed to it. And I’m like, crap. How can even pay me this much money? Yeah. And he couldn’t so basically the guy promised me something he couldn’t deliver on. All right, the deal blew up. And because he wasn’t a good businessman, he’s a genius. brilliant guy. Sorry, take a long story on this, but I’ve never told this story. But he was a brilliant brilliant speaker but he was a terrible businessman and he had a gambling problem and alcohol problems, you know, but a super good dude and super, super talented. And so I left him what move back to Lake Charles, Louisiana lived with my mom, I’m 30 years old 29 or 30 years old. And I’m like, man, what am I going to do? And started making some phone calls. I didn’t call any of his clients. None of the people that I’d worked for for him, would I contact because they were his client. Yeah, that’s right. And I thought that was the right thing to not go scarf his business. And told him I said, I will never and keep and not only that, I didn’t educate, I didn’t use his material. You know, how everybody knocks off everybody. I wouldn’t even use his material and so I think that helped me because I had to go create my own material. And then I started pitching it. And it started, people started digging it and it was called information assisted selling. And the next thing you know, I’m a boss. Like I had no, like, I just want to tell all the guys, guys and gals out there like I wasn’t thinking about I gotta be the boss. I didn’t want to be a boss. I wanted money. I didn’t want to be an entrepreneur. I wanted money. I want a stable income I want I didn’t want to be rich. I wouldn’t think about yachts and planes and helicopters and watches and none. I wasn’t thinking about cash flow. Yeah, I wouldn’t do it. Not none of this persona thing that’s been created. Some of which, by the way, we just jump on because it bothers people. You know, Johnny is like, do this again. They liked that crap. Get them from on the front seat. Most of those craps not even idea. Right? I’m not driving, I’m not sitting on the front of the hood of my car. No, like for you guys on Instagram. They might not notice a guy. They I don’t actually sit on the top of my plane. That’s right. That was for fucking book. That’s right. So. And that wasn’t my idea. I did not want to use that book cover the book for the freakin publisher did. So anyway, long story. Next thing you know, dude, I’m the boss, I have no clue how to be a boss. Now I looked up the word entrepreneur and notch it says and all I was doing I wasn’t taking any risks. Zero risk, which is not the definition of an entrepreneur, you can be a boss and not be an entrepreneur. That’s true. You could be a manager not be a boss. You could you could be the CEO of the company and still not be the boss or the entrepreneur. Yeah. And couldn’t make maybe you can be the CEO and not be a decision maker. So I think a lot of people think all this is wrapped up into one thing. And, you know, just because you have the idea that you’re going to be the boss. It doesn’t mean you know how to take risks? Right? An entrepreneur, by definition is someone who takes more than normal risk in order to grow a business or businesses. And the risk, the only risk I would take in the beginning was knocking on a door rejection was my great and time. That’s it. I was investing time and energy and humiliation (Justin: and willingness to do that. Yeah, a lot of people aren’t willingness to fail) and exactly willingness to fail. And it was like everybody was like, Oh my God, you’re so good. You’re so courageous. I’m like, bro, I ain’t courageous. I’m scared all the time. I was doing it anyway. And I’m terrified, constantly like, and anytime I’d get any money, I wouldn’t use it. I would just park the money because I’m like, and so for three years, all I did was park money, I’d go get a bag, boom, park it, put it put it in a bag, go get it but like I was off for 30 I’ve started yet. 35 years of BRANDEN DAWSON my partner CARDONE ventures told me this he’s like, you’re so negative. I said, kind of work for me. Like he’s like you all say for four years that. You keep talking about the world coming apart. Bro it is coming apart. And I’m a paranoid, very skeptical. Kind of pessimistic person. Sure. And because I’m like, I’m gonna get it and I’m gonna park it over here. My buddies are buying watches and BMW as at the time and going on trips that I was like, I’m not doing any of that crap. I’m waiting for the world come apart. Because I didn’t know what I was doing. I didn’t have there was no masterminds at the time or mentors, coaches, no mentors or coaches do this. Nothing yet. I would like I’d be so much farther ahead today if I had all that.

Justin Colby: But you felt the pain. And so you said okay, well, I don’t want to feel that pain anymore. Let me make sure I always have a safe

Grant Cardone: Well, I ain’t say but it never went away. The pain didn’t go away. So I got a million dollars and now I’m like, oh crap, what do I do? Different kinds of pain. Now it’s like, I don’t know what to do with a million dollars. Now what if I go broke now? Like, what if I go get a million and then lose the million? Yeah. Now I’m an idiot. Yeah. Now I had it and now I lost it. And so it didn’t change anything. Just having money didn’t change anything for me. And it didn’t like, like, I didn’t have any employees. Dude, I had two and a half employees for probably 15 years. (Justin: 15 years. You had two and a half) and worked out of my home. And then 2008 came and crushed me at two Companies and I bought a little bit of real estate. And then that I’m watching what’s what’s happening, like the two businesses got killed and live. (Justin: What were those businesses?) They were both automotive. They both still attached to auto auto industry just kind of slid (Justin: 2008 Yeah) yeah. They got killed half of those guys went out of business. Yeah. So both of my businesses got scorched two thirds of that business went away. And the only money I had was invested in real estate. I had a couple 100 units at the time.

Justin Colby: So when did you start buying units?

Grant Candore :Yeah, I got four doors. I bought one door when I was 30. I bought another door this 30 days later about a deal with 3500 bucks. Put a renter in. I was gonna live in. Yeah. You know that. (Justin: that story that house hacking? Sure). Yeah. And then somebody said they would rent from me, okay, better. But I told the bank I was gonna live in it. Called the bank and said, Hey, man, I gotta rent it. That’s fine. Oh, tell me. (Justin: Yeah, that’s it). They said literally, don’t tell me any more. And then 25 days later bought a second house with no money. So I had at that time was like, $200,000 For The Real Estate. I was like, dang, man. I just went from nothing. This was a big like, wow (Justin: of course). I have 200 grand. And I wasn’t worried about the houses like I was the money. Sure. I was worried about my money. Yeah. And the chick moved out. Janet moved out her and her sister moved out. It freaked me out.
Justin Colby: You remember her name? . Wow, bro.
Grant Cordone: Oh, yeah I remember the whole deal? I remember. I remember the closing statement. I remember the lease agreement. I remember the prob (Justin: That’s impressive). I remember the month. Yeah, I remember I was crap, man. It’s February. Houston, Texas. cold outside. Yeah. And I don’t know how to get another renter. And I’m like, I’m over my head. And I sold the house. Big wish he didn’t even a step. Big mistake. made three grand. I’m like I doubled my money. Think I’m a baller man. made three down put 3000 and got 3000 down. I’m like I’m, that is unbelievable. Yeah, that house is worth I don’t know. 800 grand. Right? So anyway. But that was my first little like, like, it was a hack. It wasn’t a mistake. It was a scenario, right? It was a glitch. And, and I was like, Hey, I made three grand like, I was making 200 bucks a month passive income, but I didn’t know what I was doing. Yeah. And so again, there’s no education at the time. So I was living in Houston, Texas, every weekend. And when I start studying units, I started reading about these guys like Don Bran and Fred Trump and who was the other dude, that dude, Sam Zell, I started reading about these guys, but none of them were buying single family. They weren’t flipping they weren’t wholesale. And they weren’t building. Yeah. And Brent Brent did some building but he was building big complexes in, in Orange County. So I’m like, Oh, man. The mistake I made is I didn’t do units. I didn’t do units. So every weekend I’d go study. I’m in Montrose, Galleria, Houston, Texas. Like I’d go. I’d go to brokers. As long as they talk to me, I’d talk to them. And then they wouldn’t take my calls anymore. So I’d go to another broker. Yeah. For three years. Every weekend, I was either traveling, or on the weekend, I was shopping real estate. And I was fascinated with this real estate. And I thought that this was a place for me to store money. Yeah. So I did not buy anything for 35 months. Left Houston, and in regret all the time, too. Because they’re like, oh, that deal sold. I should have bought it. Oh, that deal sold. I should but I didn’t have the confidence. I had the money. Yeah. And I had the credit now. I just didn’t have the confidence to move to San Diego. Yeah. Me and my friend Dale, Chris has said we’re driving downtown San Diego. And I’ve always been a pretty observant person. I’m always looking for the red vehicle. Right? Yeah. Good for the opportunity. Yeah. And, and I’m driving to town on Mike as a new truck over there. Oh, there’s another new truck over there. Now another new it was 1996. I said, man, the economy’s changing here. I said this. I could feel something. The same thing that was in Houston when I was looking. Yeah, I can feel the same vibe. Okay. And within? I don’t know, maybe three weeks I bought a 48 unit building.

Justin Colby: There you go. Yeah. Any of your own cash in that deal?

Grant Cardone: Oh, yeah. I had my cash in and had to borrow like, you know, $9,000 to finish the deal.

Justin Colby: So today do you use in your own cash? How do you treat money when buying real estate today? Oh, you borrow other people’s money? Or do you use a lot?

Grant Cardone: I use all my money. I use my money until I’m out of money. And then I go to other people say, hey, this deal is too big for me or I bought it. Do you want a piece of it? Yeah, we we basically backfill. Like we’re doing a deal right now. In Chicago. It was 150 million bucks. I’m guaranteeing the purchase. (Justin: That’s right). And then I’ll tell the audience about it and they’ll they’ll come in and backfill.

Justin Colby: I love it. I’m a big believer. I mean, I’m a single family guy. You’re obviously a commercial guy. I’m getting in to your space. We have talked about that. excited about it, but..

Grant Cardone: You’ll never do you’ll never do what you’ve been doing. Anymore playlists say that was God damn, I should have listened to Cardone years ago.

Justin Colby: That’s it. But I just told you the deals I’m already doing. I’m already more excited about these. Yeah, 32, 22, 12, 500 doors. I mean, that’s more exciting. Then I just bought another home in Pensacola, Florida. And so I like other people’s money is as a principle of entrepreneurship and in our world of real estate. I like using debt. I like using bank’s money. I like using credit card debt. Now I don’t do it to do this. This is paid for right. Yeah, I do it because I understand the economics of it. So in the single family space, I can do what’s called a BRRRR right. You buy rehab? Rent refinance. Yeah, yeah. Now my money’s back out. And I use other people’s money to buy it, banks and private lenders. Yep. And everyone is just main hole. All I have is the bank. (Grant: Yeah). Right. Do you view business in a similar manner? If you’re gonna go start these

Grant Cardone: I’ve never borrowed money from others. Okay. (Justin: So you self finance? I like it). So I’ve never used I’ve never paid interest on a credit card in my life. (Justin: No, crap. No. I cannot say the same.) Yeah, no. I mean, I’d be I use credit cards for everything. Yeah, I either use credit cards and cash. So like for some things like watches and if I could pay cash, I will. Yeah. So I have I have a little bit of cash stored away just a little bit. So. But like Art bang, I want to hit him with some cash. Okay, I love art (Justin: I’ve been watching that. Yeah, you’re a big art guy). So so but because I think it goes up in value over time Right. It’s good art. But anyway, I don’t know how I’m getting off on that. But I have never used credit card debt that I couldn’t pay off the same 30 days. (Justin: Okay). And I never used other people’s money until other than a bank. Yeah. Till until four years ago.

Justin Colby: Okay. So you would always self finance meaning if a bank gonna give you 80% Your you are coming in with 20 on all your deals? Got it?

Grant Cardone: Yeah, now I borrowed money from other people. Hey, brother, sister. But I was like to borrow money from other people, man as like, there can’t be a bigger responsibility. (Justin: Of course) Having kids and borrow money. I’m not sure even which one’s worse or bigger. Because if you got ruin the kids? I mean, get you won’t know about it for like 15 years. But you don’t pay people back bro. (Justin: You know immediately). And they don’t feel good, especially in our lifestyle. So, like the biggest obligation. The biggest concern I have today we’ve raised $1.3 billion. The biggest thing I worry about is other people’s money (Justin: Thats it) like because I know I can outwork my situation if I if I did have made a mistake on a deal I can I can go fix it. (Justin: That’s right). But I worry about people that give me money like oh God dude did there was a return or not and I get him cash flow this month you had that? That worries.

Justin Colby: 100% Let’s let’s change gears a little bit into understanding the expectation results. I think everyone is very people have to be living under a rock if you don’t know who Grant Cardone is you’ve been living under a rock for a decade, but let’s just take it for what it is. Someone doesn’t know Grant Cardone. Yeah. And they see you today they say oh, billionaire Oh, four times billionaire. Oh, how many companies? (Grant Cardone: 22 companies) how many books? (Grant Cardone: on an eight a books), millions and millions of followers. They look at Grant Cardone right now and they say Holy shit. Yeah, let’s talk about the expectation of the result it takes to get here. Because we just walked through you starting at 25 and grinding you’re how old now? If you’re willing to say 65 And you’ve been grinding for 40 years to achieve it.

Grant Cardone: Yeah, I had been 100% I’ve probably been grinding since I was 15 Actually.

Justin Colby: But I caught this you were working weekends. A lot of people just blew through what you were just saying. I’m listening, I’m you’re hustling on weekends, you’re going real estate, you’re going to agents, you’re gonna still go door for knocking (Grant: Yeah). I think in the entrepreneur space right now I think there’s a lot of people that want to be grant want to be Justin want to break in and not have a job. Because the sexier to call yourself the boss as you were talking about. But they don’t understand the grind. They don’t understand the hustle they don’t understand. Yesterday, literally as my wife and three year old child go down to sleep. What am I doing? laptop open? Working. They don’t understand that type of grind.

Grant: Call that work?

Justin Colby: Well. Respectfully, I would just say work grow that is that but talk to people about the expectation of the result. Like

Grant Cardone: I mean, look, I you know, you guys can figure out how to do it, you know, different than I did a good for you. I don’t I don’t I don’t know another way. Right. So I hear Elon talk about 80 hour work weeks. I completely resonate with and understand eighty and a hundred hour.

Justin Colby: Shocker Two billionaires talking about 80 hour work weeks?

Grant Cardone: Yeah, but people there are authors out there that different level that I use a completely different level because because he leveraged you know, leverage. He understood money much better than I did at a much younger age. He also understood technology and he understood risks better than I did. I didn’t understand risk taking I grew up look you are your surroundings like there’s no way to get around it you’re limited to the surroundings and the examples that you see. If I grew up watching Elon Musk I would be a completely different guy today. I didn’t I didn’t have access to any of this stuff. Or I wasn’t looking for one of the two.

Justin Colby: But even then it took Elon I mean listen he’s a very extreme example. Right?

Grant Cardone: You know, yeah, but I should have been studying the Jamie Dimon, I should have been studying Black Rock. You guys like the one piece of advice I would give everybody here everybody quit watching people like me on the internet quit watching the Brad’s and the you know the all these names that people wrote. quit watching all these guys. They don’t know anything. Including me. Go all the way to the top of the food chain. Watch those guys. Watch these institutions. Watch people that have been (Justin: about Ray Dalio? would you suggest Rays?) Don’t listen to Jake Ray’s bullcrap. What go study how Ray built his deal. Don’t worry about his personality. Watch, read his whole story like you want to learn from a guy learn from the top of the food chain. Do not learn from a bunch of fucking hacks like me.

Justin: Listen, I’m just telling you exactly. I’m just telling I respect you’re saying well

Grant Cardone: Well, I was thinking about all the other has it, a bunch of clowns. Yeah, it’s a bunch of clowns. I happen to make it. I mean, I slipped through somehow, (Justin: because you worked 80 hour weeks since you were 15) but I know a lot of guys that worked. 80 hour weeks, right? I know.

Justin Colby: They just didn’t take the right vertical, which goes to the real estate portion. This is why I’m in it. Why didn’t you choose? Why didn’t you just keep in sales you’re gonna be making many millions a years just of sale.

Grant Cardone: Because I watched a watch Brian Hopkins, Tom Hopkins, and Brian, Tracy and Zig and all these guys. And I’m like, Dude, I don’t want to be an educator. I don’t want to be a public speaker. I don’t want to be the best speaker in the world. I watched these guys traveling. It’s 60 years old. It’s like he’s going to he’s going to South Korea or something for 25 grand. I don’t want to do that. (Justin: Yes), bang. I woke up I’m like, I wanted to be a speaker. I wanted to be a well known speaker. I wanted to be a high paid speaker and I got that. Be careful what you wish for. (Justin: Yeah). And the problem is we dream we could only dream to the examples we see. I don’t know what I don’t know. And I can’t imagine what I can’t imagine (Justin: if the law of the lid right?) It is dude and it’s like, Okay, I’m going to be that guy I watched to the tapes. I’m gonna be that guy. Yeah. Okay, and then I see Tony fill in a room. I’m gonna I’m gonna be that guy. And then one day I’m like, Dude, I don’t want to be that guy. I actually asked you the wrong thing I wanted to be, I was studying the wrong part of the food chain. That’s it. And so you know if you’re studying I want to be the shark okay good he gets eaten too. (Justin: Yeah). And I’m not crap I want to be a whale is what I want to be. Right I want to be a whale. I want to be like live for freaking ever. And and so anyway I’ll all I would recommend is like, I know the podcasts and everything people are learning and study and dig and stuff and everything. But like, be careful who you study? Because it costs me It cost me a bunch.

Justin Colby: Now you took a vertical list. Let’s jump into real estate. The reason in my opinion, you are an incredible educator, you build an incredible brand. Let’s talk about branding. I think there’s a lot of people that are scared.

Grant Cardone: and try to build a brand.

Justin Colby: But you did.

Grant Cardone: I didn’t try to.

Justin Colby: Maybe you had the right people in your corner saying Hey, dude, shoot this video. Hey, dude, jump on this plane, but you built the brand.

Grant Cardone: It’s not really how it works. You know? There was really no there was really no you know, dude, I was just

Justin Colby: Would you tell people to be intentional about it? What do you say you have to? Because I’ll tell you I don’t think Grant goes anywhere near your level of success. Without your brand. You don’t do these Saturdays every day in here and trust me I’m seeing him you don’t do these things to build the brand you don’t go raise $1.3 billion without a brand of green card yet.

Grant Cardone: The brand was not built because of some formula. It was built for of course hustle. Yeah. Back to that everyday dude like the thing that bills like people that don’t like me still respect me. (Justin: Of course). Like I had a buddy of mine. He always had this thing. This button. This sensitive thing about respect. Yeah, he’s like, I need people to respect me. I said bro “respect is earned by showing up. It is not. It’s not something you can get from somebody you can’t”. You got to give me respect. I’m like…people don’t like it. I don’t just because somebody respects me doesn’t mean they like me. So I know a lot of people that do not like me, you probably heard it I hate that guy. But you know what, they’ll never say shit, but that matter works. Justin: They still show up here, to your your seminars and whatnot. They respect me but they might not like me or they don’t like the way I said it. Right. Donald Trump. It’s a Donald Trump phenomenon, right? It’s like, I don’t like him. Yeah, I know you guys who don’t like him no respect and neither but you got to respect that he did run for president and first I don’t want (Justin: and he won) he win Yeah, you know Elon Elon puts it all in I respect that about him whether you like his political views or not is another thing so but but the only thing I’m saying is the brand was built because of frequency.

Justin: But you’ve got to do it these days, right? Like, what do you ever say someone could go rebuild what you’ve done without. Look at someone like Ray Dalio. And now he’s going brand. He built his thing prior to branding because it what didn’t exist? I just think and maybe you disagree. I think you will never reach a level of success in today’s world. Without branding yourself agent car door salesman, like it doesn’t matter. You know?

Grant: I just think that people people are putting the cardf before the harsh instead of thinking about I got a brand myself. Brand what? You’re no you’re no one. How do you brand that? Your not tied? You’re not Mercedes, you’re not the Superbowl. You’ve never done anything. The Superbowl didn’t brand itself in, kept doing super best. (Justin: Right). And that’s somebody like Super Bowl man. And then the ads bang, oh, their ads. I can’t wait for the ads because people kept showing up to do the ads. So I would just tell people, like, you know, there’s no hack on this game. Yeah, there’s no hack.

Justin: Just show up and do the work you got.

Grant: I mean, I know it sounds. (Justin: I agree with you). But there’s no if you think that there’s some shortcut to this hack to this game. There isn’t, maybe this study to the top of the food chain. That’s it, okay, like, study all the way top of the food chain not study so far outside your own. And don’t even study your little niche like, okay, I want to be the greatest artist ever. Alright, good. Okay. You want to be the greatest artist, but maybe you would benefit yourself by actually study. Somebody outside that space, not just inside that space.

Justin: We have a mutual friend, Ari Rastegar. I talk to him a lot.

Grant: He’ll be here be today.

Justin: Did he? hit me today. He knew we’re gonna be together. We’ll do a little self. Christmas. We’ll do is we’ll do a little. Let’s just do this right now.

Grant: We’ll do that afterward.

Justin: You and I both know where he’s gotten in real estate. But let’s talk about real estate because he didn’t have to choose real estate. Neither did you right? (Grant: I Chose real estate). Totally. You didn’t have to you could have just done this salesman job. I mean, well, if 2, 5 $10 million a year being a salesman.

Grant: I was trying to get out of the business. I was. (Justin: That’s right). I’m still trying to get out of it. Yeah, this thing I’m doing right now. Yeah, the podcasts, the events. They will not be done unteach (Justin: you want out?) Now we will dissolve all this in the future. (Justin: Yeah). Great. Oh, God, I won’t be doing podcasts. You guys won’t have to be ragging on me. Oh, my God. He’s asked click the link, click the link. I will guarantee you before I die. I will not be known for those things. On the way out the door.

Justin: Here now one of the last podcast Grants doing.

Grant: Yeah. Could be could be (Justin: Well, I appreciate it). So so but but because but if you study if you go back and study all the guys, the Rothschilds and the Vanderbilts all these guys, I’m not comparing myself those two but the JP Morgan, these guys were completely different. Yeah. In the beginning, yeah. Then in the end. So literally, like not even the same people. Bill Gates was a different guy on the grind. Like you see Bill Gates today. That’s all the Bill Gates, you know, or Steve Jobs. You know, you don’t even know like study the original Steve Jobs. Yeah. These guys are gangsters.
Justin: The hustle. Right? You see those little things (Grant: He’s competitive). You see the little Jeff Bezos, little things every so often in his first office, Amazon’s first office. (Grant: Yeah, exactly). I’m not working that hard at his age to have a vision. No one knew what the fucking internet was, bro. (Grant: Yeah, exactly). He says, I got this thing. And now the richest man on the planet. Yeah.
Grant: And what? Why? Because he followed the money. The guy was, here’s a guy in New York, studying money. He’s setting patterns of people that like when I heard Jeff’s story, I’m like, oh, dude, I just got it. Like, he was sick. I probably heard the story three or four times. He’s watching these patterns. He’s like, all this activity is going to the internet. What’s happening here? And I’m like, it clicked. I’m like, oh, money follows people. Money is not an idea about value. Money is not an idea about exchange. Money is simply following people. Right? Wherever people go, money goes like that. And that’s the one thing I would agree with you on the branding thing, right? The more people know my name the more it’s easier.

Justin: That’s basically what I was saying. Yeah, just do selfies all the time and “hey, this is what I’m doing”. Yeah, people know you. It’s easier to…money follows you, currently, right?

Grant: Yeah, I agree with that. I agree. I agree with that. I was just saying, to go out and Say I’m gonna become a brand.

Justin: No I think I was I saying you need to constantly put in the work. (Grant: I agree). The live videos on a rehab project Hey, this is what I’m doing well, the money will people are lending you money.They know what you’re doing.

Grant: Now the problem is a lot of people are like, I don’t want anybody knowing about my project. (Justin: That’s it). I’m like, that’s the one I don’t want anybody know about my art? Okay. I don’t want anybody know about music. All right. They’re gonna rip me off if they know about it, bro. You’re gonna get ripped off? Yeah. Okay. Like, like, how do you explain any greatness? Like, hopefully you will get ripped off in your lifetime? I mean, some of the names you mentioned earlier. Straight up, rip me off. Okay, so what am I do get stuck in it? No, you keep moving. That’s fine. Just go keep recreating create and create again, and then and then they’ll you know, because the problem with a copycat is they copy something they think is good. Yeah. So do you ever have a competitor that’s copying you just remember, like, they copied that? Because it’s good. They’d like shits good. I’m gonna copy that. And I’m gonna use that. Well guess what’s gonna happen? He’s looking for something else to copy. That’s it. And he never creates it. You can’t copy and create at the same time. You don’t you don’t look for the creative, does it? So I’m just like, okay, just keep moving. Keep studying up the food chain.

Justin: How much time do you got? So I think I’m okay.

Grant: Till somebody bust in here. Arrest me. That’s it.

Justin: Let’s jump into real estate brother. I do single family. You do commercial. Someone has a bigger net worth. Well, the lower the people figure that part out. Let’s just talk about why have you been doing this intentionally just so you know, (Grant: okay). Why we’ve been such a hater on the single family real estate. We just talked about it.

Grant: It’s a terrible investment. And, you know, me and you can sit here and have the debate about it. Like, it’s just math. It’s just, it’s not like I hate a house, right. I don’t hate a house. I know that when, I mean, if you want to actually know the emotional part of it, for me, is when I was 10 years old. My dad died. My mom had to sell her house. A week later. Yeah, it wasn’t three weeks later, three months later, the bank. My mom taught me a big lesson. You gotta get rid of some get rid of the quick and that’s it. She didn’t have any debt on that house. There was no payment do. She got rid of it? Because it was the right thing to do. She was down to, you know, three kids and her single mom. She’s got an acre and a half out to Lake Charles, Louisiana where nobody else is. She’s gonna have to get the kids to school. It’s gonna be a long drive every day or on the bus. She’s like, I don’t need this bullcrap. Yeah, I just lost my husband. He provided all the income Yeah, I don’t need this house. I don’t need 29 pecan trees to take care of and two acres to mow I’m done. And that moment 10 years on like a house is not an investment. It’s a liability. It was a liability for my aunt. (Justin: Sure). Now I know there are all the arguments like everybody’s gonna yell but what about what about I’ve heard like, like you don’t think I know that 30 years from now your house is going to be paid for.

Justin: I don’t agree with that. By the way I’m a Single Family guy I’m not with you. Well, the reason why I bought my home Pinecrest Because I have a Cuban wife who said we own our home. Oh, honey, that’s not a fight I’m willing to fight but I’m also an investor.

Grant: I heard out that they owned everything before Fidel took it from on the way out the door. Just like by the way, I don’t know if you’ve seen some of the laws that are being passed right (Justin: though I have yet to say Oh, I did not) today like not saying not here but around the country. You know, you own a single family home, you want to evict your tenant, they’re making it harder and harder to ever get rid of.

Justin: I hate that. What about commercial aid?

Grant: So back to the single family? Yeah, okay. It’s not a great investment.

Justin: I agree with you (Grant: As I have to feed it) for my own for my own home I’m talking about as an investor buying rental (Grant: It’s terrible bro it’s) Should you go 10 unit? I see a lot of your ads go on. You can find a tended 16 unit in your market.

Grant: Yes. It’s why why would I want one renter? Okay. Yeah, like you. You’re gonna go get talk to me. You’re gonna get 20 homes. Yeah. You got to do 20 closes and it’s a pain in the ass. Okay, I can do one closing and have 20 Ops.

Justin: How does someone go finance that deal? If if you’re not talking to Justin Colby, and you’re talking to Fred?

Grant: It’s easy man. It’s easier to get a loan on 20 units. It is on one unit. (justin: But he still asked to come in with what?) doesn’t matter. 20 percent down? He’s got to come up with 20% under the single family. Okay, so where does he use to get? You’re actually on the 20 units, the 20 units, his loan amount, his debt, his debt is going to be approved on the 20 units as you know (Justin: that’s right). Not on the single family. That’s right. Okay, they need us already performing. It’s not on his income anymore. You got to 200 units. They’re not even looking at your credit score anymore. Yeah. Like nobody’s looking at my credit score in 20 years. They look what they asked for in my case is my schedule of assets. So how many assets do you have? What are they how are they performing? What is the cash flow? So you know, you buy one house, you pay 400 grand for the mortgage is 3500 bucks a month. You rent it out for five granted you think oh my god I’m doing great. Okay until they move out.

Justin: I think where I’m trying to go is they need to think more like you meaning they just don’t know that there is an opportunity to buy a 5, 10, 15 door in their neighborhood and or virtually I do everything virtually by the way. I don’t do a single thing here in Miami. He does I don’t. Right? And I say that because I can buy in Birmingham Alabama I can buy in Oklahoma City, I can buy in Pensacola Florida, I can buy in Jacksonville Florida (Grant: Yeah) right? I can do it all virtually right? What they don’t know is what I want you to teach them how do they a find a but? How do they finance a 15 door 16 door for round numbers apartment in their own market? Because I agree I if people understood one deal is one deal the signing docs are the same signing docs one loan is still one loan then why would it go was 16 door.

Grant: The incomes different? (Justin: That’s right). You know you got one house that guy’s got to pay you 3500 or 5000 a month and I have 20 units where they can each pay me $1,000 I’m making 20 grand on one deal income and I’m making 5000 On the other why me? Like this is not This is basic math. One person moves out of the house. I’m 100% vacant one person moves out of the 20 units I’m 95% occupied and I’m still cashflowing like it’s so easy it’s so much easier.

Justin: Do you think people just make it a bigger idea?

Grant: Oh my God nobody can start 20 units the first deal can’t. You got to start small yeah okay, if you think so. Like I did and I’m telling you I started with one unit. 30 days later bought a second unit. Three years later bought 48 units I made more than 48 units that I would have ever made on two units if I’d had done it 25 times.

Justin: The law of the lid listen. I look up to you for a lot of different reasons brother but a lot of that is you continue to push me and say Justin Think bigger bro, what the crap are you doing? (Grant: Exactly) To the point this very year we end the year in four days or whatever it is. I will now be a part owner of a 515 doors department.

Grant: You own 10% of that that’s 55 units. Yep. You know like Do you know any? This is why I’m gonna go back to what I said earlier quit studying these Yahoo’s on the internet. Yeah, you me and everybody else that’s got their own little gig. Go way up the food chain. Do you see any institution buying a single family home?

Justin: No. Well, oh one Blackstone I mean they went and bought Thousands

Grant: Okay, they didn’t buy one. They didn’t buy one. They bought 10,000 condos in Miami in 2010 (Justin: They’re trying to outline right now to where never outlaw never never that’s bullshit right? By the way, why would they? (Justin: It’s an asset class they’re investors) 100%. They show we’re gonna outlaw that outlaw their position and apple and Netflix.

Justin: Exactly. It’s just an asset class that they see value in so they’re gonna go buy 10,000 versus one.

Grant: It’s like just like the San is trying to outlaw Chinese buying real estate in China the Chinese by the way the Chinese and the Saudi Arabians own a massive portion of income producing real estate across the United States.

Justin: That’s it and I’ll never go either and so I think it’s something that people don’t. The law of the lid is a big thing that when I do look up to you which is often it’s just you gotta go (Grant: When he does when when I do when he’s not looking down on me) Well, I would tell you people need to understand it’s not that big of a deal now what respectfully yeah, having a property manager turnover tenants, but management groups can handle that. (Gran: Well, well), you’re doing single family home to is your point.

Grant: You know? What’s his name? Kiyosaki Rich Dad, Poor Dad guy.

Justin: He’s on a whole nother level by the way. No, I mean, I mean, just like.

Grant: Dude the guy sitting there tell me management is the biggest problem like the you know, any real estate. You think management is the biggest problem? (Justin: Yeah). I’m just telling you sound like your poor dad right now. The management is not the biggest problem in real estate.(Justin: Yeah). And he’s like, how can that be? I’m like, I don’t manage my real estate. Yeah, I got 12,000 doors. Nobody calls me and says, Hey, man, can you get rid of the rats? Or the termites? Or I got a leak and nobody calls me I have a management company and manage that we pay $6 million a year in management fees to handle problems. (Justin: Yeah) Evictions issues. Like you just got to scale the game right? Like like wallet, whatever. Whatever it is. Did you got to scale it? If you’re not going to scale it? I heard a guy once say he’s like, not everybody can scale everybody can and should scale scaling is survival. And if you can’t scale something, don’t do something. Like love a chant. If you’re gonna go buy one McDonald’s, don’t do it. If you’re gonna buy 20 Coke coke figure out a plan for 20. This is the advice the only advice probably I am. That could give someone that would benefit. Just don’t like scale something before you do some. Like being a car salesman school but you cannot scale it. (Justin: Yep). And at some point in your life as you age and get older and have more responsibilities and obligations, you want to scale whatever it is. I never thought about dude I own 10 or 20 car dealerships. I could have done that by the way. (Justin: that’s right). But I just didn’t see it. Yeah. And nobody was talking to me about it.

Justin: But it doesn’t create what I’m in this game forward to the bees, right. I want a lifestyle like yours. Right, you know, own? Yeah. I mean, what would it take? How many car dealerships would it take to have a be behind your name? Boatload? You know, Owner Ford, right. Like just.

Grant: No, I mean, you know, I mean, you know, 20 car dealerships you did crack a brick. But my little education on businesses like will do (Justin: you so little). I mean, well, because I was just with Jared because I was calling on these car dealers years ago, they wouldn’t, they wouldn’t answer me. Yeah. And then one day, I called one who said, Hey, can I buy your plane? Right here in town? His name is stelupi up in New York. I said, I’d like to buy your plane. Can I see it this weekend? He told his people don’t call him back the guy cant buy my plane. So you know, I’ve had three of them. And they Okay, all right. I mean, I thought you’re a car dealer, I thought you don’t qualify people, you treat every customer to same, like, that’s what I you know, anyway. So, now these guys are like, how did this guy buy a plane? Well, I didn’t buy because of my education. I bought it because I took the money from the education. Is this not scalable? I mean, we have actually, you’ve scaled but not not really like, to me scaling would be we do a billion dollars a year. So I need another you know, we need to I need to grow eight times to do a billion dollars a year in income, which I think we can do. (Justin: Yeah), we well, I don’t know what what period of time is going to take me but the money from you care (Justin: How long it takes?) Or kind of do right now. Yeah. So so. But I could do that I could do that quicker. If I’d pulled off this deal I was trying to pull off last month, that’s that kind of blew up.

Justin: There’ll be another one, you know that you’ll always be able todo what you know.

Grant: And and so. But the real estate for anybody is scalable. You can be a single mom, two kids flipping hamburgers. Or working in a bar, you could scale real estate.

Justin: And the reason why I say that for those that may not realize, because you’re not saying indirectly. If you buy one home a year for 10 years, and then sell all 10 and go buy a 40 door apartment, you’re done. If you want to be meaning you were able to scale to 40 doors, because you understood real estate to buy one home. Yeah. Move up in Yeah, move up in line get 40 doors. Hold that for five years. Yeah, move up in line get 100 doors, hold that for five and then all of a sudden you potentially have hundreds of doors. Yeah. Because of the scalability of real estate. (Grant: Yeah), right. You didn’t build like you had overnight.

Grant: You could just buy 40 the first time you could the first year single mom no money, she has no money, bad credit.

Justin: Where do you find the money for the downpayment?

Grant: Well, the deal the deal will support the deal is the most important thing in real estate like the deal. I’ve never had money raising money for a real estate deal.

Justin: But you borrow it right now. It’s what for the dental payment for most people who are gonna have to use other people’s money. That’s all I’m trying to get at. That’s all other people’s money. You know what the lender, right? They don’t have to own the deal with you. They can be a lender, they can get 5, 10 15% partner in the deal. They can mean equity partner.

Grant: There’s a lot of ways to do it. Right? There’s, there’s, but I’m just saying like if I was starting all over again, 30 years old, and I’m like, I wouldn’t have wasted time will one unit go I’d go buy 400 units. So first, let’s go. I know how to do it now. I want you to how to do something. Once you know how to make the cookies. You’re like bang.

Justin: Well, you can say that because you know, and that’s what everyone needs to hear. Yeah, you know it, but you know how easy it is. So they need to realize they can start there. They just don’t believe it yet. They just think it’s bigger than it is.

Grant: You can’t do that. If you’re trying to make you know, you can’t buy 40 or 400 if you’re trying to buy one.

Justin: That’s right. It’s all one transaction. That’s your point. The point that you make is still just one transaction. Yeah. Right?

Grant: And for some people, they’re like, Yeah, but that’s all I want. I just want to have a house. Okay, well, good. I don’t know why you listen in it.

Justin: I was just gonna say then you don’t listen to me or you or anybody, right?

Grant: You know, and don’t study up the food chain and why you keep checking into YouTube to improve the quality of your life if you just want one awesome. Millions of people have done that 40 million people lost their homes in 2008. So you guys think housing is a great deal us. There’s still people underwater from 2008.

Justin: Where are we going in the real estate economy right now? You and I agree on this.

Grant: The biggest, this is going to be a unprecedented correction.

Justin: Do you think there’s going to be the same definition of the big foreclosure wave of 2008 or do you think you’ll look different?

Grant: No. It’s going to look completely different. I agree. There won’t be single family homes. There will be no correction in single family homes. (Justin: Okay) Slight maybe of 7 or 8% correction in price and then it’s gonna go vertical from there. There you go. The the correction is going to be an institution’s and office and apartments and retail and even some industrial.

Justin: Yeah, but you’re buying office literally next door as I’m meeting with your boy Jared. You just bought this office one. The whole building

Grant: Wouldn’t bought it three years ago. Right after COVID I bought it during COVID.

Justin: Okay, but you’re you actively my hometown Scottsdale Arizona. You have my bro you just bought right there…

Grant: I would buy more office right now. There’s a deal like Las Vegas that Blackstone owns it’s 42% vacant and we tried to buy $2 billion. But you think the odds of that they probably be at over $140 million dollars and it’s probably worth four or five hundered.

Justin: So clarify for me. Why are you saying there’s this big correction in the commercial space and it’s going to be crushed? (Grant: Because debts due) okay, but then who’s going to use those offices as my worry?

Grant: I didn’t I don’t even know how to use it. They could be it either works or doesn’t work? I don’t need something to be 100% occupied to make it work.

Justin: Okay. I just don’t know how many companies right now are looking for office space by the way. I don’t know the area worthy actually genuinely ask.

Grant: Well, I mean, yeah, no, no, I’m with you. Yeah, I’m with you. Look, there’s gonna be a correction. Yeah, there’s the remote. The remote work from home thing is massive failure. (Justin: Yeah). Everybody that promoted it hasn’t.

Justin: So it’ll come back. Are you think there willbe a bounce back to offices? 100%.

Grant: But even even so those spaces are worth something. Yeah. They’re the deal just traded in downtown Los Angeles for $140 a square foot like the last time he traded was 800 bucks square foot like he it’s overcorrected. New York City’s going to be overcorrected. We’re buying a deal in Chicago right now. 150 million, it should be 300 million. It’s debt. Debt is the problem. The real estate always does this. It goes like this. And there’s only the only interruptions in that is when the debt has a problem. So we’ve had late 90s There was 600 credit loans that collapse in this country. 2000, the internet bust 2008, the mortgage crisis. These are all debt related. Yep. And now to a COVID. There was a big, very tiny, sharp correction, we took advantage of that bought almost a billion dollars for the real estate during COVID. Yeah, when nobody was shopping, real estate, we were buying real estate. And now 2024 is going to be a massive correction. It’ll last about 16 months, maybe 18 months. Justin: and you’re goona buy as much as you can) and I’m gonna buy every everything I can possibly buy apartments and true commercial. Yes. Coming through the debt. The debt is dude, like I reached the end of the road when my debt hidden. They can’t refi because the loan zone exam doesn’t economic work from exactly there’s probably a 35% correction and in just the loan amount. So we just created a distress fund for debt. So people could actually be the debt or the equity. (Justin: How many funds do you own?), or we’ve just finished fund 22 or 23 all have been oversubscribed.

Justin: Good for you. Many friendsin them and they get paid. They’re on the line. Amen Brother

Grant: Paid out 7 million last month paid out 60 million last year. My goal is to pay out 50 million a month. We’re paying about 5 million average. The goal is in the future. I wrote my goals down this morning. 120,000 doors, we pay out 50 million bucks a month in distributions every month, every single month. We’ll be the only company that does that. (Justin: Do you want to be the new Blackstone?) 100% I love that. Yeah, I think I can do it too. And basically, will will redefine how banking is done where regular, everyday people like my mom who lost who had to give up the house. She wouldn’t have to give out the house. If she had income coming in. She had monthly income coming in. She’d been like I’m cool with my house. Yeah, but she didn’t have that. And so that’s where I learned when I was a kid so we created this fun so people can get district distributions every month they can depend on the cash flow and I can’t do that in my book business the books hot for a little while then it adds only that’s it you know unless I go push it and pump on.

Justin: Leads it’s all cyclical right? This goes back to the kind of question about branding this brings in leads to follow you on IG where you go alive they get familiar with Grant Cardone six months later you put out hey, if you want to be a part of my thing, here’s the returns well, right oh book to do that right now. I’m about to finish my book and I would be honored and I’m doing this live in front of everyone. If you would write the foreword to Yeah, yeah being to wealth

Grant: Flip into wealth flip into wealth and I don’t know I can’t do that man. How I’m going to do that because it’s right I’m not a flipper bro.

Justin: It’s accumulating wealth. That’s the whole point is I’m teaching people how to flip you don’t. Okay, don’t put All right, I’m saying, Hey, if you weren’t gonna be flipping, go make money a lot of people need to make the money and then go buy the assets own the assets. I’m transitioning from flipping.

Grant: I gotta read this book before I can actually endorse it. (Justin: Alright, fair enough). You know, I’m not like you only say nice word. I’m not like Donald Trump saying, hey, crap, I’ll endorse you. I don’t even know you. stays with me. Yeah, I think I’d endorse you. I like the way you look.

Justin: Alright throw me one of the lines in the back of these things and say, Hey, Justin Colby is the real deal. As I say, Brother, I appreciate your time. As always, we got to try to do this every we’re doing it every year so far. Yeah.

Grant: We need to get you we need to get you on this. This multifamily train, let’s go to this how big this opportunity is. $2.7 trillion of debt is due right now. Okay, if I can, if I can get one quarter of 1%. One quarter of 1%. Okay. Of that, okay. Or a bunch of us got together and quit doing this dumb shit that we do. Okay, there’s 2.7 trillion. Is that right?

Justin: It’s a big number. Yeah.

Grant: Is that right? You see, that’s 100 million. There’s a bit 700 billion 2.7 trillion of times .025. Yeah. $67 billion with real estate makes you the largest if I only can get one quarter of 1%. Okay, let me see how many units that would be.

Justin: That was 2%, .02 is 2%

Grant: .025 will be two and a half percent. Okay. Either you’re saying Oh, you’re right. You’re right. You’re right. Yeah, let me do it again. Let me do it again. Okay, two, seven. It’s fine. times .0025 = 6.7 billion. So I don’t know that’s pretty impressive. Oh, yeah. Makes me (Justin: I just I want to get my purse) makes me feel warm inside. So that’s if I can only do a quarter of one percent if I could do a whole percent. I don’t think I can’t do.

Justin: So now that I’m getting into your world.

Grant: It’s $28 billion, bro. Now watch. Okay, this is happening. Whether you and I participate in this activity or not (Justin: well I want in) these mortgages are due. There’s already right now hit me again. These mortgages are due they’re happening. They don’t not happen. They happen. The single mom could sit around and wait watch for dads podcaster. The speaker the guy this is public speaker, and the got the cheaters out therein, the copiers in, the bullcraps, and the frauds and the click Mater’s and yeah, this is why people don’t like me because I tell them anything out it because I say it out. Okay. So let me see what I’m doing your 2.7 trillion Okay. divided by 200 units? Oh, no, no, let me see. I want to do 200,000 per unit. That’s 13 million units, doors, as divide by the say average properties, 200 units 67,000 properties. Okay, about 20,000 of these will trade every year 20,000 property (Justin: for the next three years) for the next three years. That has to happen. There’s there’s a 500 billion this year, and 24. 740 the next year and 740 in 26. Yeah, these I’m sorry, 740, 740 and 500. And these are going to happen? These loans are maturing they will trade hands real estate Warren Buffett talks about he’s like the real estate’s always there. The ownership ownership shares. Right. Okay. And you want to get on the cycle. The way to get on the cycle is when the crisis is present is a banking crisis. (Justin: Yeah), I think we have 300 bank failures. Here’s your big headline 300 bank failures. In the next 24 months, we’ll have major institutions fail, and we will have pensions, pension funds fail. Now we’ve never had a massive pension fund failure in this country. They’re already at the brink of failure that happens this thing rolls over where you’re buying stuff for a half to 60% of it’s last traded price and probably half of what it would be built for now the thing becomes more epic. Okay, this thing becomes more epic because if you have this kind of crisis like I think we all building and construction loan stuff, which means for the next two or three years you will produce no new product. (Justin:That’s right). Okay. 24, 25, 26, 27. You’ll look and say, we got a shortage of everything. Office apartments, industrial, single family is already a shortage. We’re people say there’s 4 million short, we’re probably 45 million short this country because 40 million of the single family homes nobody wants them. Yep, except an investor that will rent it. (Justin: That’s right). Because the renter don’t want it. They’re like, I don’t want to live here, but it’s all I can afford. So this game doesn’t change, you know, even 100 year mortgage on a single family home, which could happen in your lifetime. (Justin: That’s crazy). Now, I mean, it’s crazy because it doesn’t really offer solutions to the interest that they’re gonna pay on any list. It only saves about 300 bucks but people will go for it (Justin: of course), because people are so of course, people are so are going to own it. It’s like creating a cube and why? Yeah, I gotta own it. Yeah, I gotta own it. You don’t own it by you. Sorry. You know, you don’t own the house.

Justin: Now I have a million in equity. I can go rip out and go buy an apartment with and then I have an investment tool, in equity,

Grant: Then you got a million dollars of equity in your home.

Justin: I gotta go get a good bank to give me a good rate on the refi out.

Grant: That’s not gonna happen. And I’m not gonna do anything good. Right, right. Because you didn’t have the house. If you rented where you lived. How old are you? (Justin: 42) You should rent where you live right now. Until you got super bank. Yeah, my advice. here’s the here’s a little cut for the Super Grant Cardones advice for you. You should sell everything you have. Okay, liquidate. Get all your cash to make a move in this space. Rent where you live. Go go go go rent someplace for 30 grand a month. Just pay them rent. Don’t don’t even care about it. Well, you could go rent my builder right now for 50 grand a month and you’re still in the property. Okay, Ryan Seco rents for 12 grand a month. The place is worth like 5 million. Okay, the landlord’s losing money renting to him at 12 grand. Yeah. So rent about half of what ownership is today. Take all your liquidity. Go build a fun and go start to buy your commercial 2,000 units you should have 2,000 units at the end of this cycle minimum.

Justin: I’ll see you in 36 months. I’ll see you before that Okay, let’s see how I do 2,000 doors (Grant: I dare you) 36 months

Grant: You got to dump all this flippin that you’re doing man you I didn’t know I was coming to iPod. I hopped up here to waffle unit grill master flippin. I own it bro I own it and never sell it. Now my wife doesn’t believe in that. Miami by the way this place you’re not buying in. You should be buying in anywhere Miami Fort Lauderdale. Tan you here that I got to give it this boy he’s the local cube boy, in Panama City. Jacksonville. As long as you’re between three and six o’clock. Anything in Florida. I probably leave Orlando right now alone. I’d go to St. Petersburg. I’d go to little parts of Miami or Tampa which are going to be unbelievable for years cup club would be great. You got to be careful Clearwater because there’s a lot of old homes over there but but you should not even bother within a single family home. Yeah, unless you’re gonna go up to Canada. Canada’s gonna have a massive single family home correction. Because all their debts do right now. They everything over there. So an adjustable. So here in America 70% Of all the loans in America are either paid for in cash Yeah. 12 Trillion 4% or under or for under 4%. So they’re on a 30 year term.

Justin: Ain’t nobody sell

Grant: The institution Bro Oh, yeah. Like that’s it. Like if I privately told you some of the crap I’ve seen in two weeks. You’ll be like. I’m telling you trust me on this. Go to the bridal. Okay, I could get a quarter of 1% All my dreams come true. Well, what I need you to do, they’re still 99.75% about and it will happen and will transact (Justin: I love it. I just got to get a beer) You and I can both walk away with $12 million each.

Justin: And God damn let’s get on it. So I still got a lot of life to live dog. So do you.

Grant: You know what this bug in life will live? Just live I’m talking about I’ll live generally out and people will be like, Wow, what did he do? Oh, you said $50 million a month out in distributions. He built the largest apartment bond Real Estate Fund in America. He did it with everyday people and then somebody to say he also wrote books.

Justin: What how much of your own dirty work do you do these days meaning how many calls to the banks are how many? Like how much do you get invested in the deal or buying a plane or like what kind of what about the plane? Well just like when do you get involved like when is Grant gotta pick up the phone? Nasty dude. Otherwise when he gets that. What about the plane or what about the thing that you know what I mean? The helicopter just.

Grant: There’s a lot of stuff that I do like I’m a very hands on you’re dealing I’m a control freak okay. You know I don’t delegate everything. I think delegate the you know the idea you’re going to delegate everything is crap. (Justin: Sure), like I’m not that kind of boss. I don’t have a big office. I don’t even need an office. I don’t care about the office. Yeah, you know to me, I wouldn’t you were over there with Jared Yeah, like to me all that is just like, weird. I just want to flow when people move with Peter Craig, I want stuff to happen. You know.

Justin: You’re still doing, you’re still in meetings during the fall and you’re still Oh 100% Yeah,

Grant: I got like, you know, I got I got a great team to like, they’ll bring me in. Sometimes they wait too long to bring me in. Yeah, you know, I’m like, Bro you know, I hear thing. I see things and hear things that they they maybe don’t see. Yeah, but you know when they’re big deals dude I’m gonna be involved. I mean, I’m buying a plane there’s one guy by the plane. (justin: That’s it). There’s one guy buying it one guy negotiate it. Now who’s gonna go see it? I’m not gonna go see it right. Ryan’s gonna go see it. He’s gonna fly to Switzerland call up FaceTime me say boom. It’s good to go. (Justin: that’s it). My good sitting home. Piece of art? Only me? Yeah, like I don’t buy me a piece. Don’t talk to me. Like I have a little thing. It’s a my little.
Justin: Well it’s your art, bro. I mean, it’s very specific.

Grant: Real estate. I pick it all you pick it every single piece. Okay, I pick it.

Justin: Team gives it to you. And you say okay, here’s my 14 options, whatever.

Grant No, I’ll see it. I’ll see it. Typically what happens is they have a sheet right? And they’re like, Hey, we’re looking at these deals. They underwrote those deals. I’m like, kill that. I’m not buying anything on this. Look at these three deals. So there you go. You know it comes to the end of the day I’m going to be the guy that fun races have fun. You know basically goes on to we do a zoom call with our investors once a month I handle all the good news and the bad news.

Justin: So you jump on the call. I’m the I’m talking about all I want. I want everyone to realize this thing about Grant Cardone is he doesn’t just the law delegate everything.

Grant: When the law we get on phone with a lawyer. Yeah. Oh, yeah. It’s me. Yeah. Well, something’s gonna come out this week. When are you gonna go live with this? (Justin: Within 10 days) Yeah, yeah, well, before 10 days, something’s going to come out. And you’re gonna be like, Guys nuclear now, but I’m going nuclear this week. Do you remember? Do you remember the and you should give him the clip for this Johnny, the reporter that I put on that I put on check. (Justin: I don’t) You don’t you don’t know the reporter video with this recently. Oh my god, do you know it? I called the reporter on the phone and said Hey, bro, why do you keep doing these interviews on me? So 34 minutes. Jared was in my office Jared said Grant. There’s he’s like, Jared, what are you going to ask the guy go Jared said grant, what are you going to ask the guy said? I’m gonna ask him these questions. He’s like, there’s no way this guy will stay on the phone with you. 34 minutes. Francisco Alvarado. He does articles for the real deal. Sure. Okay. Oh, yeah. You didn’t see this or I did not I mean, my God send me that in the little oh my god did so I call this guy you’re asking me who does the dirty work? Okay. Prep this for this week. What’s getting ready to happen? Okay, so I think a lot of crap. Okay, understand as I take it. And for anybody out there that has a chip on your shoulder you’ve been bullied or pushed around or people talking shit about you. Bro you got to learn how to store that and use that. Okay, store it and use it. Do not resist it. Don’t fight it. Don’t get resentful. I’m not a resentful person. Like Like, like at all. I use it. I’m not resentful. I’m grateful. Bring it on ding dong down. Just keep load me up. Because what I’m gonna do is I’m gonna take all that and I’m going to convert it my daughter’s asked me today why do these people say this about you on the internet Papa? I said babies it’s alright? Okay. Papa’s converting it. Okay, it’s all garbage. You use the garbage man you it’s it’s waste. Yeah, take that waste in to fuel so. This guy Alvarado was trashing me on the internet. And him and a whole bunch of other people by the way, podcasts you’ve seen some of the garbage okay. The click & click pick baby crap. Yeah, you haven’t done any of those. Oh my God, why would I? Who knows man but gets clicks? Yeah, this clicks. Yeah. So. So anyway, so I call this one dude out. And I get him on the phone. I said, Would you like to do an interview about this thing? We’re doing the real deal guy. Yeah, the real deal. He’s like, Yeah, I’d love to do the interview. He thinks I’m an idiot. That I’m gonna give him another interview. Right? And so we get on the interview. Well, I flipped the interview and I started asking him Hey, man, him baba, baba, baba, you said these things about me? Do you think that was fair? You brought up my religion? Do you think that’s fair? You? Do you know who this person is this person. This person? This was no. He’s like, I don’t know those people. I’m like, You quoted them. He’s like, Oh, wow. Do you think it’s fair that you would quote people without even knowing who they are? or doing any research? No, that’s not fair. So I think at the end of the interview, I said 34 minutes ago, I was on Fox. And if you were me, and people were treating me like this on the Internet, what would you do? It’s like I would be doing exactly what you’re doing right now. So you’re at the end of the call with him. And then I looked at the camera and said, Hey, this is the first all you guys out there they’ve been trashing me you YouTubers and clicked baiters, you haters, you guys out there hating on people’s reputation trying to tarnish their reputation their brand coming for you I’m coming for ya that happens this week. You’ll see the first announcement this week (Justin: love it bro) and it’s gonna boy so yeah what I’m going to do what I’m going to do and I’m inviting everybody out there if you’ve ever been trashed on the internet there’s the first Johnny clip this out of here again, if you’ve ever been trashed on the internet if anybody’s ever defamed you, defame your name. Intentionally gone out of their way to hurt your name, your brand, your business, your finances, your future anything okay? I’m going to create we’re gonna create a class action lawsuit against a number of people on the internet and stop this and pass a new law that you cannot even under the disguise of my opinion in my opinion, allegations up you can’t I want to change that law because there’s too much of this going on the internet where people are using the internet to clickbait, to troll and and hurt people’s businesses. Okay, and this will happen this week. You’ll see it (Justin: I love it) for you go live probably the first place ever announced it’s you’re you will be proud Johnny Alejo right when I said it. Yeah, so we’re going on top of the food chain and then we’re just gonna start notch in now while you guys well, they can’t if you guys you guys keep doing this. I’m telling you you’re not gonna do it to me anymore because you’re gonna be like okay, this maybe we need to go some other place because I know you will. Because you’re all a bunch of cowards. See that’s not defamation. By the way me calling somebody a coward does not defame you hurt your business. When you go out to somebody’s business. And you say things about him that would cause people not to not want to do business with them or second guess and that’s different. But you calling you a bitch. You’re a bitch. You’re a coward. You’re clickmeter you’re lazy. Okay, you’re looking for a shortcut? That’s not me defaming you that is me giving you a character assessment. Okay, of what I think about you my opinion of you is you are a punk okay as different than you defame in someone’s business. So anyway, you’ll see that launched this week and and that fuel dude that’s grinder fuel and that goes back to the very first thing and this is like you guys got to figure out some kind of a talk about the purpose and the Yeah. The purpose and why and always to be the greatest writer or director right? Sometimes it’s some dark black, hidden grindy nasty bucket. I want to punch back to what however you find that energy to get to get to sit because I’m not hurting anybody. You don’t send $60 million out or write a book that people benefit from that’s not damaging people go in the butt. So if you can convert the fuel I’m not resentful by the way of any of these people that I just talked about. Yeah, why would I resent a bitch? Not resenting you, bro. I thank you for giving me the energy to come after you and maybe pass a new law. Lastly, I’ll say is this “Do you know the bird strike? Video?” (Justin No, bro. Where have you been bro? This guy wants me to endorse his book and he doesn’t know about the bird strike video. You don’t know about the bird strike video? Do you know when you get on a plane today? You can use your mobile phone? Yes. That’s because of me bro. (Justin: How so? Because prior to me, videoing a bird strike. Okay, and then getting an A letter from the FAA saying hey, you are now on a warning list on flights. And then I confronted the FAA and said, bro, if phones are that dangerous, take them from everyone. Yeah, like you do a knife. You should take my iPad, my computer and my phone away from every passenger. So you guys take the phones away from every one of their that dangerous. I will continue to turn my phone on because of that. Okay, and I fought them to get off that watch list. They reversed the law and said you can use your phone on plane today. You can thank me. (Justin: Thanks, Bro. I
appreciate you.

Grant: Now. I don’t think myself when I get on my plane and use my own phone. Because we have a law on my plane. You should come.

Justin: That’s it? Brother, I appreciate you greatly appreciate this. And my pleasure. All right. We’ll see this next year and in 36 months we’ll do this again.

Grant: Let’s go look I’m putting you on. I’m putting you on check right here. Okay. 2,000 How many units you’re going to collect in the next few months. 24 just 24.

Justin: Let’s go with a thousand in the first 24 Another thousand and last 12.

Grant: Good. I’ll help you. Let’s do it again. Okay, It’s got already here. Me and GC? Appreciate you.

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