“We’re In a Recession!” – Grant Cardone | You Need To Do THIS
Justin: What do you think about real estate in 2023? Where’s your head at with?
Grant: I think the real estate, I think the real estate business industry, investing, the biggest opportunity in my lifetime will happen in the next 18 months.
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Justin: Alright, guys, listen, I got Uncle G here, I appreciate you coming to this. We need to be talking about what’s about to happen in 2023, the recession, building a business that’s going to last that’s what we got to be focusing on. There’s not a lot of people out there that know where this is going. I don’t have a crystal ball. I know you don’t. But you’ve built something incredible over your business career, you’ve seen to full blown recession just going into your third. Is that right?
Grant: Well, what I’ve probably been through meant for these little nasty things. The first three, I was not like, I didn’t even know what was happening. I mean, the first one, I didn’t know what a recession was. So I just started getting like, I didn’t really understand what was happening. Second one. I’m like, Oh, this there’s not good. Bad news everywhere. Third one was 2008. And then 2008 was like, Okay, I’m getting my freaking I’m getting clocked here. I had three businesses two got destroyed. And you know, when it rains, it pours. So other stuff started happening in same time, because everybody starts freaking out around the world. So that’s when the lawsuits increased. That’s when people are desperate, I gotta have this and I need that. And they’re looking for people to blame, and doesn’t really matter whether you’re in the right or the wrong. There’s just collateral damage. That’s right. And so I couldn’t take advantage of the third one, the fourth one that most people don’t count as a recession, but it definitely happened it’s COVID man. I flipped this thing and clock quote COVID.
Justin: So this is what exactly what I would say. I crushed COVID Yeah, because I moved fast. Right. I think a lot of people wanted to do this. Let me go sit on the sidelines and see how it shakes out. Yeah, I think you and I are built from the same cloth. This second hit. I dove into my business. I made very quick decisions and changes. Yeah. And I made the same way you did. You’re on a bigger level, but same thing I made it through great.
Grant: But I think what happened in COVID is you are forced to. You don’t have choices in regular recessions, even 2008. You go through all these periods you go through, okay. It’s not gonna be that bad denial. And then it’s like, oh, shit, blame, and then it’s anger. Okay, so there’s a lot of resistance stages, like any loss, you would have and COVID… Bro, it was like 40 million people out of work in one day. It was why was like violent. It was the most violent thing that’s ever happened in America economics. Yeah. And so it forced everybody anybody that wanted to survive made moves immediately. So and I think that’s the difference. This just in there was no lying about it. You know, everybody was clear. It was all over the media. There’s a virus and there’s a mask on and six feet and, you know, go get your shot and everything was like that. Right? So in 2008 It wasn’t that it was like oh my god, this things happen then Lehman collapse and then it took time it took like two years for the truth to come out. That’s happening right now. That’s right. So this year they said we’re not in recession we’re in a recession right now. Unemployment numbers came out today. They said they’re not bad. It’s bullshit, complete bullshit. Inflation, we’re probably already over inflation, they’re not telling you that right now we have, we’ll probably end up with more, the supply chain thing is going to hit at the same time where people are going to be scared, we’re going to end up with too much lower prices, blah, blah, blah. Anyway, that’ll roll over next year, it’s gonna affect people greatly, but you’re not going to be told the truth. So people are not going to be urgent to act. That’s why we want to do this thing in January and wake people up and say, now they’re gonna take your business from you.
Justin: Immediately we knew this to launch. And so thank you for getting this whole thing started. Because this is super, super important. If you have like the first piece of advice going into a recession, where do we focus? Like what is the focus for any entrepreneur or aspiring entrepreneur that might be thinking, this is now I build now.
Grant: Just assume that 40 million people are going to be put out of work, dude, I would act like I’m 40 million people gonna be put out of work in one weekend. That’s what I would go into January saying, the entire world is going to shut down. You’re not gonna be able to get anything you won’t be able to get anybody on the phone, you won’t be able to use your like, just go violent, paranoid. Yeah. And that way you’re going to be right. Because even if none of that happens, you’re gonna you’re gonna act appropriately. That’s right, which is how people should act all the time. That’s how I act all the time. I’m always acting like, like, you’re broke. I’m always broke. but I’m always broke. You know, because no matter how much success I achieved today, no matter what happens today, I’m gonna wake up Saturday morning, and it’d be like I’m starting over from zero again. I’m not starting thing from where I’m where yesterday ended? I’m starting from zero. So I keep accumulating like that. I don’t mean money. I mean, customer success. And that becomes the unbreakable business. So we talk about.
Justin: So let’s talk about that because I think I’m a firm believer you have fully changed my mind and my business in San Diego when we’re hanging out in San Diego. About marketing being 100% of it is not just your lifeblood, it is your oxygen. It is absolutely everything in your business. Right. Yeah. Increased my marketing spend 40% overnight.
Grant: And you feel more confident about doing it. Because you have permission now not to actually have to make money on it today.
Justin: That’s right. And to be able to have runway so you’re, you’re you taught me in San Diego. If you do that spin, give yourself some runway so you can make the money over time. It doesn’t have to be overnight. Yeah. Does that right? Yeah. So let’s talk marketing because I think that is a major thing that going into 23 People are gonna get tight on marketing. That’s what I believe they’re gonna cut off.
Grant: Right. It’s already nationally, it’s already fell off. 50%. You know, I was talking to you guys a couple of days ago about the Twitter thing about Elon, like he’s losing all his advertisers. And the truth is, that’s a red herring. Because everybody’s lost all their half of their advertising. Advertising dollars are already off. You’re not gonna see it in a headline anyway.Right. So what they’re gonna do is they’re gonna everything’s gonna be a headline on housing, it’s gonna be, you know, employment numbers are good. The CPI numbers, all this government garble. And then what you guys should be doing is you should be doing exactly what other people are not doing, you should be marketing. And that doesn’t always mean money. The first from 2010 to 2000, probably 19, I didn’t spend any money in marketing. We’ve only started spending money in the last three years, the first eight or nine years that it was organic, complete. And I mean, that’s, it’s a lot easier to buy an ad than to do what I did. And but I wasn’t quite sure that the marketing would work. Now I know for sure it will. So now I’m like, okay, keeps keep spending the money. Long term. All marketing works, as long as you don’t give up on it. And that could be an Instagram post. It could be a story. It could be a short on YouTube, it could be something on Tik Tok, or all of them Snapchat, like they, they all work, they all will sooner or later produce income as long as you have the third thing, which is do you have a way to monetize any of these activities? You gonna spend an entire day just on how any person anywhere in the world no matter where you are, you’re gonna be a waiter or waitress bartender, you’re gonna have a second hustle you can literally produce more money from your home with a landing page and not the website. Then you could from your main business with no ad dollars.
Justin: I’m not incredible, credible world, bro. I mean, it is and so I would bring that into sales. What’s more important sales or marketing marketing? All day.
Grant: Marketing is if you’d asked me this 10 years ago said no sale sales and singer. It’s not true. Marketing. The Sleep pillow guy, what’s his name?
Justin: Or my pillow or whatever?
Grant: My pillow, That ain’t better pillow. I ordered two of them. Got him and threw him away. I’m like, this is garbage. I didn’t know you had to put them in the dryer first. I think you’ve got to do something to make them flush. Yeah. And he said you can return them. I said dude I ain’t spend any time with attorneys. But I got to admire the guy for advertising. That’s it. It’s the best pill. It’s the best pill. It’s the best pill. Coca Cola, Wendy’s, McDonald’s. These companies, Disney. They’re the best. They’re the best. You know, these are just ad campaigns. Its marketing. Its marketing, higher education colleges. It’s a marketing program. Yeah. They’re not based on better education, or higher education. It’s a longer education and cost a lot of money is what it is. It’s marketing.
Justin: Interestingly enough, I think you can always find a good salesperson as long as you have leads, right? I mean, you know, every really good sales person wants.
Grant: What I’d like to be is find a crummy salesperson and build them. No, and just take an order. Yeah, I’d rather do it. That’s what Amazon does. There’s no There’s nobody taking. There’s nobody. There’s no sales guy. There’s no Jordan Bell for right. At the other end, supposedly the greatest salesman in the world, like I don’t need a lot. If you if you could do the marketing, you don’t need a line. You don’t need a special some kind of special trick or gimmick, then they’re gonna buy your product from me.
Justin: That’s it. Now let’s let’s spin that into real estate. You and I are big real estate guys. You are in avery big 200 door space. I’m in the single family. Four door five door 20 door space. I was just talking to Ryan about how the three of us have to talk about how to do something with that. Yeah, there’s a bridge there between your world and my world. I don’t think anyone’s hitting it. You and I probably get hit that well. So we should offline talk about that. Let’s do it. But um, what do you think about real estate in 2023? Where’s your head at with?
Grant: I think the real Listen, I think the real estate business industry investing, the biggest opportunity in my lifetime will happen in the next 18 months.
Justin: bro, that gave me chills. Because I’m on the same page.
Grant: I’ll buy more real estate in the next year 12 to 18 months, and I bought in my entire carrer, maybe double times too at a fraction of the costs.
Justin: And the reason being is you actually think based around the recession?
Grant: No, I know 1,000%
Justin:It’ll be on sale.
Grant: It’s not really even about a recession, the real estate, what’s going to happen when real estate has nothing to do with the recession. It has something to do with the Fed. The Fed is raising interest rates because they raised interest rates two years ago, a bunch of, this is a single family home problems. There’s some of that there, but the bigger opportunity is going to be in the stuff I’m doing 200, 300, 400 unit deals. Yeah. And by the way, those deals are easier to buy than your deals are. Believe it or not.
Justin: We need to know more about that.
Grant: I can accumulate more property in one transaction than you. For a cheaper costs per door per door.
Grant: Legals lower, closing costs are lower, the debts better? Yeah. And and I don’t need it I need a lower credit score will buy my 300 than buy your single family.
Justin: Yep. Yeah. No, I’m not even arguing the point.
Grant: Yeah, no.
Grant: Yeah, I did your deal. I did that I did that. And I’m not saying there’s not going to be opportunities there. Because there will be opportunities there. But it’s not going to be as a bloodbath, bro. Because the bloodbath like if I had my little board right now, I would show you in the last 24 months, there was a bunch of groups like me, like, like, bigger than me. Okay, guys that have 10,000 50,000 100,000 units. Well, last year, in the last two years, they acquired another 2000 units. So let’s say they took they bought 2000 units in the last couple years, and they took out on those 2000 units not to be too complicated, but they took out let’s say, I don’t know $2 billion for the debt could have. Yeah, that’s right. Well, that debt, their business plan was to trade these in three years. That’s right, next year 2020 toward they were going to trade them, they’re going to go through 2023. They were going to value add kitchens and floors and do this to have this business plan. And but the problem what happened was and they need a new loan, okay, well, that loan is going to be coming due right now. And they’re gonna go into what’s called a technical default. So it’s a little complicated, not really, but because we’re not educated on this. All that’s gonna come available for sale. Yep. And it’s not going to be whether it sells or not, it’s going to be oh, it’s going to sell period, Because the bank is going to be like, you have to readjust that loan to stuff there’s going to be like, everywhere, best opportunity. Or you could, you could go into this start next year, somebody with nothing, and could become worth a tens of millions or hundreds of millions of dollars, if they have the right business plan. And by the way, this involves marketing, It involves sales, because when I’m buying a deal like this, I have to be I have to be more salesman than buyer. That’s right. I can convince them to pick me.
Justin: That’s right. Because there’ll be 20 of you. So you gotta, I’m the right buyer for you. The same thing in single family, right? I mean, listen, my world. I have guys that aren’t your competition. But I have the Blackstone’s who’s buying a bunch of single family rentals. I just saw I think it’s ILL is that the right name. They just they want to have a billion single family residences
Grant: JP Morgan’s, gonna do a billion, Goldman Sachs put a billion dollars, single family. And those single families the benefit of yours over what I do is your rents are going to be higher long term than my rents will ever be.
Justin: So that’s what they’re targeting higher rents per door.
Grant: but I need your rents to be higher because they’re gonna pull mine up. That’s right. So we both win.
Justin: So both both angles can be great.
Grant: 1000 in a recession, look, if fed rates stay high, where they are, okay, housing in America is done forever. And you’ll go from a 60% ownership of homes in this country, and it’ll flip it’s a 6040 right now. And it’s gonna flip over to where, and the greatest economic opportunity in America today is rental properties like what you’re doing.
Justin: that’s it? And I’m going in Listen, we’re gonna have plenty of conversations off camera about how I get into the space that you’re in, because I love that space. Yeah. Barrier of entry is the biggest challenge. Right? When I was broke, sleeping on a couch. All I knew is how do I get an $80,000? House in Phoenix? Arizona? So it’s like, that’s all in for most of the people. They’re thinking that way. Right. It’s hard to compare. How do I get 200 doors?
Grant: You do one time I’ll show you how to do one time. And then you’ll do it 10 times and you’ll have 2000 doors, you could accumulate to… how many doors you have right now? 14 doors. You could have 2000 doors at the end of next year.
Justin: By the way, that’s my goal. I want 2000 Well.
Grant: there’s, I’ll show you how to do it you need 10 deals, 200 units 10 deals, bang, boom, boom. Maybe we got to do it all the way into 2024. And it takes half the year of 2024 be done. But you know, you’ll be set bro, you’ll be set for life those units in the next 2032. Let’s say we get you 2000 units, okay? In 2032, those rents are gonna be 2000 units, times 3 grand, your the rents will be 3000 Medium rent, that’ll be $6 million a month. I can live off that. I mean, you you’ll probably net you’ll probably net, you know.
Justin: A third of it.
Grant: No, maybe, maybe, maybe 10% 8% 10%. But still 240,000 bucks a month. net net net.
Justin: I love it. Yeah, give me give me that blueprint. But this is what we need to be talking about an unbreakable challenge, bro.
Grant: That’s what we’re going to do in January, we’re going to we’re going to do a five day event. The first day is like, how do I shift his decision making from what he’s doing successfully? How do I shift your decision making from whatever you’re doing right now? Whatever you’re comfortable doing? I’m gonna shift it to something bigger. Like, I know you guys got excited when I started talking to him about okay, yeah, that’s cool. That’s cool. What you’re doing, you can keep doing that. But bro, what if I could show you this one time you do it one time. And it works. I promise you, you’re going to do it 10 times. So that’s what I’m gonna do with you guys. You got a million dollar business, I’m gonna show you how to turn it into a $10 million business next year. 12 months, I’m not playing with you. I’m not a decision over promotion. It’s completely free. Just come for five days. If it doesn’t work, it didn’t cost you anything. But the fact is, you don’t have to go anyplace. I’m gonna send it to your phone, your tablet, your computer. He’s coming. That’s it.
Justin: I’ll be there. I will tell you this. Even if you’re not really going in business. You need to be here to get going in business. Same thing whether you’re in business…
Grant: Unless you wanna be a waiter forever. Okay? If you want to be an Uber driver forever. Cool. Probably don’t need to come to this. But if you think maybe that someday in the future, you want to do something different for your family, for your dreams for your charities that you want to help for whatever you even if you just think that you maybe have more potential than you’re using.
Justin: Here’s what I know to be true. You and I have one thing heavily heavily in common that’s gonna be the real estate. Everyone wants to be in real estate. It doesn’t matter. There’s too many shows out there. Everyone wants to flip these house. Everyone wants to be the next Grant Cardone and buy 200 units at a time. Real estate is the game in my world. That is all I really care about in terms of business. I know you have multiple.
Grant: Well Those are the businesses, okay, every like we do a we have a business called CARDONE ventures, we probably have 400 companies that pay us every month to work with them. Oh, they own their operations, their expansion, their plans, execution, etc. I don’t know if anybody in those 400 companies that is not interested in real estate, is it these are plumbers H fac dentists chiropractors very, like every single, every single business owner, I know has some interest in this passive income tax depreciation, the tax loophole industry called Real Estate,
Justin: Wouldn’t you even tell a frickin accountant? Go buy one if the best you can do is buy one single family home. Yeah, I mean, it is the best there is no
Grant: Buy one a year you got 1010 and 10 years. You’re just gonna look back in the 10th year and say Damn, I should have done all 10 In the first year. That’s it. That’s it. But you’ve got to start somewhere. That’s the point. Yeah, exactly. And you’re going to spend money on real estate no matter what it’s like it’s like food, water housing. Right? You know, you got to maybe a car like a car. Somebody said, Why don’t you lease your cars. I said, dude, when I buy a car, it’s gonna be a whole car dealership. I want to make money on the things I buy.
Justin: I love that. I’ve subscribed that till recently, my Cuban wife wanted a house in Miami. So I said, I suspect we’ll do that.
Grant: Guys, this unbreakable business challenge is something that I am so fired up to be a part of. I’m so thankful for grant to invite me to help change your guys’s lives. He is the guy I look up to. He’s someone that I admire and not only admire, follow his blueprint, like I’m literally talking to him about how can he get me to this next level. If you want to be in my circle, this is my circle, get next to me be a part of this challenge. This is what’s going to be happening for 2023, 2024, 2025 and beyond is a blueprint that will last in any business cycle. That’s what we’re going to be going over is the 24th to the 28th.
Grant: It’s Gonna, we’re gonna we actually planned it to be right around the third week of January because that’s the time when people are now starting to give up on their New Year’s resolutions. It’s also going to be a time I believe that when the the real news of what’s going on is going to start coming out. And so you know if you’re concerned about your family concern about your business concern about your job. You’re being lied to by the government every single day. This is and nobody nobody ever says oh Grant how you know that but everybody knows because you’re being lied to by the government, CPI numbers, the unemployment numbers, inflation numbers, they literally lied about us being in recession because they changed the definition of it. Like it’s crazy.
Justin: Well, you can’t have Facebook and Amazon, I believe is those two,
Grant: Facebook, Amazon, Twitter, Google, they all let people grow massively unemployment numbers did go how’s that possible? By the way, we lost a million people in the mortgage industry in 2022. And nobody’s talking about it. BlackRock wrote off $1.7 trillion in March, Katie find it on the internet now.
Justin: Isn’t that crazy?
Grant: So biggest single write off in the history of planet Earth, and nobody even even happened, of course, and it doesn’t hit a headline and everything’s just fine and in our stock market keeps going up. It’s insanity. And you guys know that to be true. So the shoe is gonna fall it’s gonna fall. It’s gonna fall in 2023. And we we are spending our time and energy. A million people get access to this. You need to be one of those people bring your family like you’re bringing your family bring your employees are cautious saying nothing. Okay. And there’s a guarantee. If you feel like it’s a waste of time, I will give you 100% of your money back.
Justin: . Yeah. Done. I mean, how much better can you be of that? So guys, you need to be there. You need to bring all of the people you care about there. Again, like I said, I’m having a real estate he’s having real estate. We both believe real estate is the game, regardless of great economy, poor economy, real estate’s the number one game, but building a true business that will last all economies. That’s what you’re there for.
Grant: Thats how you fund your real estate. That first business that thing you’re doing right now, whatever it is, you’re waiting tables, waiting the tables is what’s going to buy that real estate.
Justin: That’s 100% Right? Yeah, man. Appreciate you brother.
Grant: Appreciate you bro. Absolutely. See you guys there. Peace.